Confidential proposal asks Hamilton to build hockey arena and parking garage at Lime Ridge Mall
The unsolicited proposal obtained by The Spectator says the Hamilton Bulldogs OHL team is willing to “offset” taxpayer construction costs — but the dollar amounts remain a mystery.
The Hamilton Bulldogs are asking the city to build a new arena and parking garage worth tens of millions of dollars at Lime Ridge Mall, according to a confidential proposal obtained by the Spectator.
But it remains unclear exactly how much the project would cost in total — or how much of the tab taxpayers would be on the hook to cover.
Under the plan, the OHL hockey team commits to "partially offset" the cost of construction for a 6,000-seat arena and 1,800-spot, three-storey parking facility. The Bulldogs would also handle arena maintenance.
No construction costs are included in proposal documents viewed by The Spectator and team owner Michael Andlauer declined through a spokesperson Monday to talk about how much he is willing to pay. Past estimates floated for a Mountain arena have been around $60 million.
Mall owner Cadillac Fairview would lease three acres attached to the former Sears store to taxpayers for $1-a-year and handle maintenance of the garage, which would provide free parking. The proposal also leaves open the prospect for a hotel.
The city parking studies suggest the cost of an above-ground parking structure can range from $22,000 to $35,000 per space. That would suggest a garage cost between $40 million and $63 million.
The unsolicited proposal, made privately to the city last month, represents a wild-card alternative available to city councillors as they debate whether to move ahead with an ambitious public-private redevelopment of aging downtown entertainment facilities.
A city consultant has recommended seeking private partners to help build and run a new $130-million sports complex downtown. A new convention centre would replace the FirstOntario Centre.
Private sector dollars — and maybe government grants, if the city applies to host the 2030 Commonwealth Games — would be expected to cut the taxpayer contribution.
The consultant also argued the city should spend its millions on a new facility rather than on repairs to a 34-year-old building that is leaking antifreeze and needs a new roof among $27 million in looming repairs.
But a successful, money-making arena hinges on having a willing "anchor tenant," that same consultant warned.
Right now, the Bulldogs are the anchor tenant in the existing FirstOntario Centre, but have only one year remaining on the lease for the building at York Boulevard and Bay Street.
The Spectator reached out to Cadillac Fairview for comment but did not hear back Monday.
But the owner of the city's largest mall — and biggest taxpayer — submitted planning documents to the city in 2018 that envisioned a radical redevelopment of the Upper Wentworth Street property that included new retail, office space, a parking garage and five new restaurants.
That application remains "on hold," according to planning staff.
While Andlauer would not comment on cost-sharing Monday, in the past the team owner has suggested he would make a "substantial" contribution — possibly up to half the cost — toward a Mountain arena built by the city.
The formal proposal to the city suggests building an arena with between 6,000 and 7,500 seats. It also sets an expected construction start date of March 2020 and an opening day exactly two years later.
Andlauer recently told the Spectator he is still willing to consider the city's downtown plans — if council moves fast enough.
A consultant estimate of five years to open a new downtown building is too long to wait, he said.
Mountain Coun. Esther Pauls is expected to try to convince her council colleagues to vote in favour of studying the unsolicited arena proposal Wednesday.
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