Former MLSE boss now part of Hamilton’s downtown arena renovation project
https://www.thespec.com/news/hamilto...-district.html
For a couple years now, the proposed budget for a private-sector renovation of FirstOntario Centre has been pegged at $50 million or so.
That just got considerably bigger.
The local consortium that won the right to redevelop Hamilton’s downtown entertainment venues
has partnered with Oak View Group (OVG), a Los Angeles-based arena development company headed by former Maple Leaf Sports and Entertainment CEO Tim Leiweke who says his organization will be making a significant financial contribution toward the arena.
“(The building) needs an upgrade,” Leiweke says. “It needs some tender loving care. It needs an investment. It needs to be brought up to the standards that now are pretty traditional in arenas ... We’ve got to put some real money into that building and fix it.”
How much more money?
Jasper Kujavsky, Hamilton Urban Precinct Entertainment Group (HUPEG) partner and director of the arena project, says the new budget will be “at least $80 million.”
This will lead to a far-more impressive venue than initially planned with greater amenities and a vastly improved experience for users, says HUPEG president PJ Mercanti.
The specific improvements haven’t been determined yet. Those details are still being worked out. A final budget should be announced in a month or so, Kujavsky adds.
A 2016 study pegged the cost of a complete rebuild of the arena at about $250 million. This new figure clearly doesn’t reach that level. It would, however, cover another option from that same study which would see a remodel of the lower bowl with new private boxes, seating, party areas and more.
Whatever is done to the 36-year-old building, it’ll be done right, Leiweke insists.
“We don’t believe in Band Aids,” he says. “That troubles some of my financial people but if we do something we’ll do it well.”
But it’s not just the money that changes with the arrival of OVG. This partnership will likely bolster the credibility of the entire downtown project. Give it heft, as Mercanti describes it.
Oak View Group was created six years ago by Leiweke and legendary music executive Irving Azoff. It’s developing the New York Islanders’ and the Seattle Kraken’s new billion-dollar arenas, among other projects.
“We’re the largest developer of arenas today in the world,” Leiweke says. “And we wanted to have a place and a presence in Ontario.”
HUPEG, meanwhile, is the consortium of local investors who won the right to redevelop the arena, FirstOntario Concert Hall and Hamilton Convention Centre as well as creating mixed-used development and housing in the core. The whole project is estimated to cost between $400 million and $500 million in private money.
Whether OVG manages the renovated facility remains to be seen.
Spectra currently manages FirstOntario Centre. Leiweke says that contract which runs until the end of 2024 will be honoured. However, in late August, OVG and Spectra announced a merger. If American regulators approve that deal, OVG would essentially become part of the new blended company that would run things.
This will leave questions for some: What’s the catch? Why here? Why Hamilton?
Leiweke says this city is ideal because of its growth potential, proximity to Toronto and his familiarity with the southern Ontario market after spending two-and-a-half years in charge of MLSE.
He doesn’t intend to compete for shows with his old employer down the QEW because he doesn’t believe that’s necessary. Scotiabank Arena is already busy with the Maple Leafs and Raptors and simply can’t handle everything. A second top-notch facility in this region could be booked 150 nights a year, he says.
“There is absolutely room in the marketplace,” he says. “There’s plenty of music to go around here. And there’s plenty of sports to go around.”
He would intend to bid aggressively for any big events that came available.
Kujavsky says that could include things like the Memorial Cup, World Juniors, women’s world championships or any other large competitions.
Leiweke says he has no doubt this can become something great.
“I think we’ve hit this at the perfect time,” he says. “We have great partners, we have a good vision and I love the marketplace.”
Prev
Linear Mode
