LIUNA open to Lister compromise
Nicole Macintyre / The Hamilton Spectator / June 25, 2008
LIUNA is offering the city a new last-minute deal to save the Lister Block.
Negotiations are ongoing but LIUNA vice-president Joe Mancinelli said the union has changed its position to come closer to the city's demands.
"We do have further compromise," he said, declining to outline the specifics.
The proposed compromise will be rolled out at tonight's council meeting, which is the city's last chance to approve the Lister Block purchase in time to keep a $7 million provincial grant.
City council voted 10-6 on Monday to buy the downtown landmark for $25 million, but added a $1 million guarantee that LIUNA says it won't agree to.
Under the city's requirements, LIUNA and partner Hi-Rise would give up the guarantee if they failed to building a second phase behind the Lister that generates at least $600,000 in city taxes. The city based the guarantee on a 200,000 square foot proposal the developers pitched to council.
Councillors want the revenue from the second phase to offset the extra $1.3 million a year it will cost to buy the Lister for city offices, compared to current rent.
LIUNA countered that it would only be willing to guarantee that the second phase would be at least 60,000 square feet to keep the full $1 million. Any more would be too risky because of market changes, they argued.
Mancinelli said he was ready to walk away, but his members urged him to return to the table to save the deal. He said the union's new position is closer to what the city wants, but isn't a "significant change."
"No one can accuse us of not giving it our very best shot," said Mancinelli.
Mayor Fred Eisenberger said details of the proposed compromise will be released to council this morning.
"Discussions have been had, they are going on still," he said, encouraging both sides to keep an open mind.
"I remain hopeful that something positive can happen on the Lister Block."