[SteelTown]

Mayor saved Lister deal: LIUNA

July 01, 2008
By Nicole MacIntyre
The Hamilton Spectator

LIUNA says it changed its mind on the city’s Lister Block deal after tempers calmed and business sense took over.

Union vice-president Joe Mancinelli largely credits Fred Eisenberger with saving the $25 million deal many thought was dead.

“The mayor called and said ‘how can we save this?’” Mancinelli told the Spectator.

He said the mayor kept calling over the weekend, slowing convincing him and partner Hi-Rise to go ahead with the deal. At the same time, Mancinelli said his own people were exploring other options and realized a private deal wouldn’t make sense financially.

“The mayor gave us a sense of a true partnership,” said Mancinelli. “We’re showing an incredible leap of good faith.”

Yesterday morning the union returned a signed deal, which will see the downtown landmark renovated into city offices by 2012. The agreement came just hours before the province was set to take back a $7 million grant for the project.

“It’s alive. It’s very much alive,” Mayor Fred Eisenberger said of the deal. “I think it’s a very positive step. It’s good for city.”

LIUNA and partner Hi-Rise agreed to council’s demand for a $1 million guarantee that there will be a second phase that generates at least $600,000 in taxes.

Just last week, Mancinelli said he wouldn’t agree to the condition. He criticized council’s “unfair negotiations posture.”

The developers had offered a lower guarantee, but it was rejected by council last Wednesday. After the meeting, LIUNA said it wouldn’t offer any guarantee at all.

"We've compromised enough," Mancinelli said at the time. “They killed the deal.”

Though the city’s deal is signed, the developers must still meet several conditions, such as a heritage plan.