Core Entertainment Updates

[thistleclub]

As the operating agreement and lease arrangements are likely years from being finalized, it’s safe to say that there are certain assumptions baked into the projections.

In PED18168(b) - Appendix A, E&Y note:

Based on the NPV total financial impacts of $90.8 and $166.4 million, respectively, for the Status Quo and Entertainment Venue Renewal options, we can compare costs from one option to another.

Based on these figures, we identify the net, incremental cost for the City to deliver the Entertainment Venue Renewal option as $75.6 million.

If Hamilton were to advance the Status Quo option, it would cost an additional $75.6 million to deliver the Entertainment Venue Renewal option.

Based upon on our analysis and assumptions identified in this report, the Entertainment Venue Renewal option is estimated to yield a net gain of $13.1 - $26.2 million over the cost difference for the City to deliver the Status Quo option, assuming completion of Phase II/II land sales.

Acknowledging this net, incremental cost, further analysis of the estimated direct municipal cost offsets under the Entertainment Venue Renewal option outlined in Sections 7.3 have been outlined below:

Long-Term Financial Impact Analysis for City: Entertainment Venue Renewal Option ($2019 value)
Incremental Cost for Entertainment Venue Renewal Option ($75.6 million)
Plus: Private-Sector Contribution $26.1 - $39.2 million 2019 Value
Plus: New Convention Centre Cost Sharing $18.4 million 2019 Value
Plus: Current Convention Centre Residual Land $28.9 million 2019 Value
Plus: New Sports & Entertainment Venue Residual Land $15.3 million 2019 Value

Net Relative Financial Impact for City $13.1 - $26.2 million

So the E&Y cost savings projection includes the sale of the Convention Centre as well as FOC.