‘A LONG TIME COMING’
New plan calls for major, $100 million renovation of Hartford’s XL Center. Will it happen this time?
Adecadelong logjam over pursuing a major renovation to Hartford’s XL Center arena — caught up in a debate over scope and cost — could finally break loose later this year, as the state plots a new course for the long-term, competitive survival of downtown’s aging sports and entertainment venue. The Capital Region Development Authority, the quasi-public state agency that oversees the 48-year-old arena, this summer will determine the actual costs of a significant upgrade, now estimated at $107 million. The effort is an attempt to move beyond years of splashy renderings and imprecise cost projections. The decision also comes as CRDA negotiates with the arena’s operator for tens of millions of dollars in private investment for the project.
The renovations, focused on the lower half of the arena, are aimed at making the XL Center more competitive with new arenas for events; help the venue turn a profit and carry it through another two decades. A major renovation would target the addition of premium seating that commands higher ticket prices and new amenities, plus upgrades to the concourse and building systems.
Technology also would be a priority, partly to better accommodate heavy social media posting and texting during events.
CRDA will complete designs and seek bids for the different components of the renovation to see if actual costs are close to the $107 million estimate.
The state, which approved $65 million for the project three years ago, needs assurances the project will not mushroom in cost. The venue’s operator, Los Angeles-based Oak View Group, which manages 300 sports and entertainment venues globally and redevelops others, also needs to know a realistic price tag before investing in large-scale renovations.
“The state and OVG both want comfort that this thing isn’t going to gallop out from under anyone,” Michael W. Freimuth, CRDA’S executive director, said.
If estimates and actual costs come close, it is possible renovations could start by the end of
the year, Freimuth said.
But if they are significantly out of line with each other and can’t be downsized in an acceptable way to the state or OVG, it may mean the venue is consigned to a “Band-aid” approach to repairs as has been the case in recent years, without a major, one-time investment from either the state or OVG, Freimuth said.
It is likely the renovations would stretch out over two years, allowing the arena to remain open from October to April to accommodate the basketball and hockey seasons, Freimuth said.
CRDA’S board of directors was briefed on the plans at its monthly meeting Thursday. After the meeting, Hartford Mayor Luke Bronin, a board member, said he was cautiously optimistic that a major upgrade might now be within reach.
Bronin said the modernization of the arena is not just important for the city, but for the state as a whole, keeping the venue competitive as a center for music, entertainment and sports, including the Uconn basketball and hockey teams that play there.
“It’s been a long time coming,” Bronin said. “It ain’t over till it’s over, but I’m hopeful that we are on track to make improvements that are so desperately needed at the XL Center.”
Attracting events
The renovations are intended to reverse the fortunes of a venue that has historically lost money for the state, typically $2 million a year but higher during the pandemic, closer to $3 million-$4 million. The premium seating — include “loge” seating off the concourse, club space under the stands and “bunker suites” at event level — plus upgraded concessions are all intended to increase the arena’s revenue.
Gov. Ned Lamont supports public investment in the arena renovations but also has said there must be private sector funding to ease the burden on state
taxpayers.
OVG’S investment is tied strongly to attracting more concerts to the XL Center, events that are large money makers for modern arenas. But to draw more big-name concert bookings, renovations also will have to include relocation of the stage to increase the number of seats that have a unobstructed view of performers; build the overhead structure needed for modern light shows; and retrofit a loading dock at back of the arena to move shows in and out more quickly.
If OVG agrees to invest, the organization would significantly expand its operating of the arena, including negotiating contracts with major tenants such as the University of Connecticut and paying for
majority of repairs to the building, excluding major big-ticket improvements.
An investment by OVG would require a new contract with the state — possibly for as much as 20 years — that is still being negotiated with CRDA. But the framework of the contract is emerging: If there is an annual profit, it would be shared with the state on a percentage that’s yet to be determined. If there are losses, OVG would have to absorb them. Currently, OVG earns only a management fee.
Freimuth said choreographing the renovations will require more than securing the bids for the work and getting OVG on board. It also may require approval from the state legislature for a public-private partnership between
CRDA and OVG because of its size and scope. City approval also would be needed because the City of Hartford technically owns the arena, and the state leases and manages it.
Years of debate
The future of the arena has been debated for more than a decade.
Supporters say it is a vital amenity for fostering downtown’s revitalization, which suffered a setback in the pandemic, and its ecosystem of restaurants and bars. The XL Center, they say, is an attraction for the region. But critics counter that the state should not keep pouring money into a venue that annually racks up a loss, and they question whether the state should be in the business
of running an arena.
A $250 million plan for a massive top-to-bottom makeover — with the addition of a second concourse — failed to gain traction with legislators. Three years ago, the vision was slimmed down to $100 million, focusing on improvements in the lower half of the arena.
The last major renovation of the XL Center was in 2014, at a state taxpayer-cost of $35 million. The project added a fan club and the first loge premium seating, and made improvements to the concourse and restrooms.
The work was intended to carry the arena through perhaps a decade or so until the decision was made to either do something bigger so the XL Center would remain competitive or let it wind down.
The $65 million would come on top of $40 million bonded in 2017 for repairs and to attract a buyer, which drew little interest. Of the $40 million, about $15 million remains. The funds in 2017 also were intended for purchasing the privately owned atrium off Trumbull Street to expand the concourse. The atrium is not part of the current, $107 million in planned upgrades.
About half of the $40 million has been spent replacing the arena floor, installing a new ice rink and ice-making system and repairing elevators and escalators, work that couldn’t wait for a larger renovation. The funds also are helping finance a $4 million sports betting venue facing Ann Uccello Street that is now under construction.