HUPEG hears arena anxiety
Dear members of the Hamilton community:
We hear you! We understand that there is significant interest in the redevelopment of First Ontario Centre and the other city entertainment assets under the terms of the agreement with the Hamilton Urban Precinct Entertainment Group (HUPEG).
Specifically, we note that there is sincere interest in learning more about the renovations, getting more details on timelines, and getting greater clarity on the details of the agreement between HUPEG and the city. Given the taxpayer assets at play and the pride our community has in its teams and sports facilities, we get it.
As the leaders of HUPEG, we understand and share your concerns and are eager to address them as soon as possible.
Most of the details of the agreement will be familiar to Hamiltonians as they are consistent with the information — all released to the media and posted on the city’s website on June 9, 2021 — easily found by typing “downtown entertainment district approved” into the city website’s search bar to review for yourself — all of which highlights the many benefits the city should expect from the hundreds of millions of dollars of investment that this agreement will bring into the downtown.
For clarity, those investments include, but are not limited to:
■ $150 million in avoided capital and maintenance costs for city taxpayers over the next 30 years as HUPEG takes over the operation and maintenance of the assets which will remain city owned.
■ Our commitment to invest a minimum of $50 million in the renovation of the FirstOntario Centre, including a new exterior façade and video board, comprehensive transformation of the lower bowl, expanded concourse level, and a new flexible curtaining system for the upper bowl balcony.
■ HUPEG’s investment of $12.5 million in capital upgrades, expansion and esthetic enhancements to the existing Hamilton Convention Centre and Concert Hall; and,
■ $440 million in residential redevelopment investment which is estimated to grow the city’s tax revenue by $100 million-plus which is sorely needed by our community.
■ The project will not only maintain and improve valuable city assets, but it will also free up considerable funding for the city to redirect to pressing community priorities, including housing.
These investments follow the success of previous agreements for the private operation of the arena, and Hamilton Convention Centre. Carmen’s Group operating leadership has saved the city $13 million in operational subsidies since 2013.
We understand the importance and significance of this investment to the citizens of Hamilton and due to our obligation of confidentiality under the terms of our agreement with the city, and the fact that some agreements are still being negotiated with private partners, there are limitations on what we can say publicly at the moment. Noting that, we have been working with the city to release large portions of our agreement which we understand will be undertaken very shortly.
The restrictions governing our ability to comment publicly have also made it very difficult to comment more broadly on the complaints and criticisms levelled against us by former and current tenants of FirstOntario as much as we might wish to. Beyond that, we can clarify a couple of items:
■ There are no events booked at the arena past Dec. 31, 2023, as the planning for the reconstruction of FOC is still scheduled for early in the first quarter of 2024.
■ Our current stakeholder relations are in unison with the desire of Toronto Rock to return post renovations.
■ We are hopeful that the Bulldogs will also want to return so that their fans can enjoy a world-class environment for their favourite team.
Ultimately, we are working hard to do our best to strike the balance between private and public sector expectations around information sharing with a commitment to provide as much information to the public as we can. This will include a comprehensive program of public consultation and engagement as it relates to the full vision for the urban heart of our community as soon as circumstances permit.
We are deeply committed to this city and its future and invite your continued patience as we work through and look forward to being part of the changes that will bring new vibrancy to our downtown core.