Global Spectrum and the Carmen’s Group will be operating the city’s entertainment facilities for at least the next five years.
But at the same time, Hamilton is moving forward with a $200,000 independent study to determine if the city even wants to keep FirstOntario Centre, FirstOntario Concert Hall and the Hamilton Convention Centre as assets.
Staff recommended to councillors a five-year and six-month extension for both Global Spectrum and the Carmen’s Group to operate the aging entertainment facilities. Councillors are scheduled to vote on the agreements at their June 12 council meeting.
The current contract is set to expire at the end of this year.
In return, the city will see a potential $13-million savings over the life of the extension by reducing the subsidy and including a $1.5-million capital investment into the facilities. Staff estimate that Hamilton has already saved $10 million over the first five years of the agreement.
“They have done an excellent job and will do an excellent job in the next five years,” said Mayor Fred Eisenberger. “I’m delighted with their commitment.”
The city, though, has also hired a consultant, Ernst and Young, to conduct an independent review on council’s request to possible sell the facilities — a report will be before councillors in August.
Hamilton continues to provide an operating subsidy of $1.4 million to Global Spectrum, a financial burden that some councillors want to eliminate.
John Hertel, director of strategic partnerships, told the June 5 General Issues Committee that both Global Spectrum and the Carmen’s Group understand that Hamilton could eventually sell the properties at some period within the contract.
“Both parties are comfortable moving ahead with this agreement,” he said.
Last summer councillors agreed to extend the original five-year contract, which began in 2013, for one year at the request of the Carmen’s Group. Carmen’s had proposed to make a bid to the city to take over all three entertainment facilities, but eventually backed down from the idea.
Councillors have been pleased with both companies’ desire to keep operating the facilities, since they all are in need of capital improvements. A 2017 city report found that FirstOntario Centre needs about $68 million in improvements, while a full remodelling comes with a hefty $252-million price tag.
Director of fleet and facilities Rom D’Angelo said that the city is already upgrading FirstOntario Centre’s escalators and elevators, and testing is being conducted on the ice surface and brine pipes. The arena needs to install a backup generator and replace the antifreeze lines, both at a cost of about $7.3 million; other improvements include a new roof, sound system, heating system repairs and accessibility upgrades.
There is also a threat from Michael Andlauer, owner of the OHL Bulldogs that plays out of the area, that he might relocate his team to a smaller facility, such as the 5,000-seat CAA Centre in Brampton.
Meanwhile, the Hamilton Convention Centre needs about $2 million of façade improvements.
Global Spectrum and the Carmen’s Group will be operating the city’s entertainment facilities for at least the next five years.
But at the same time, Hamilton is moving forward with a $200,000 independent study to determine if the city even wants to keep FirstOntario Centre, FirstOntario Concert Hall and the Hamilton Convention Centre as assets.
Staff recommended to councillors a five-year and six-month extension for both Global Spectrum and the Carmen’s Group to operate the aging entertainment facilities. Councillors are scheduled to vote on the agreements at their June 12 council meeting.
The current contract is set to expire at the end of this year.
In return, the city will see a potential $13-million savings over the life of the extension by reducing the subsidy and including a $1.5-million capital investment into the facilities. Staff estimate that Hamilton has already saved $10 million over the first five years of the agreement.
“They have done an excellent job and will do an excellent job in the next five years,” said Mayor Fred Eisenberger. “I’m delighted with their commitment.”
The city, though, has also hired a consultant, Ernst and Young, to conduct an independent review on council’s request to possible sell the facilities — a report will be before councillors in August.
Hamilton continues to provide an operating subsidy of $1.4 million to Global Spectrum, a financial burden that some councillors want to eliminate.
John Hertel, director of strategic partnerships, told the June 5 General Issues Committee that both Global Spectrum and the Carmen’s Group understand that Hamilton could eventually sell the properties at some period within the contract.
“Both parties are comfortable moving ahead with this agreement,” he said.
Last summer councillors agreed to extend the original five-year contract, which began in 2013, for one year at the request of the Carmen’s Group. Carmen’s had proposed to make a bid to the city to take over all three entertainment facilities, but eventually backed down from the idea.
Councillors have been pleased with both companies’ desire to keep operating the facilities, since they all are in need of capital improvements. A 2017 city report found that FirstOntario Centre needs about $68 million in improvements, while a full remodelling comes with a hefty $252-million price tag.
Director of fleet and facilities Rom D’Angelo said that the city is already upgrading FirstOntario Centre’s escalators and elevators, and testing is being conducted on the ice surface and brine pipes. The arena needs to install a backup generator and replace the antifreeze lines, both at a cost of about $7.3 million; other improvements include a new roof, sound system, heating system repairs and accessibility upgrades.
There is also a threat from Michael Andlauer, owner of the OHL Bulldogs that plays out of the area, that he might relocate his team to a smaller facility, such as the 5,000-seat CAA Centre in Brampton.
Meanwhile, the Hamilton Convention Centre needs about $2 million of façade improvements.
Global Spectrum and the Carmen’s Group will be operating the city’s entertainment facilities for at least the next five years.
But at the same time, Hamilton is moving forward with a $200,000 independent study to determine if the city even wants to keep FirstOntario Centre, FirstOntario Concert Hall and the Hamilton Convention Centre as assets.
Staff recommended to councillors a five-year and six-month extension for both Global Spectrum and the Carmen’s Group to operate the aging entertainment facilities. Councillors are scheduled to vote on the agreements at their June 12 council meeting.
The current contract is set to expire at the end of this year.
In return, the city will see a potential $13-million savings over the life of the extension by reducing the subsidy and including a $1.5-million capital investment into the facilities. Staff estimate that Hamilton has already saved $10 million over the first five years of the agreement.
“They have done an excellent job and will do an excellent job in the next five years,” said Mayor Fred Eisenberger. “I’m delighted with their commitment.”
The city, though, has also hired a consultant, Ernst and Young, to conduct an independent review on council’s request to possible sell the facilities — a report will be before councillors in August.
Hamilton continues to provide an operating subsidy of $1.4 million to Global Spectrum, a financial burden that some councillors want to eliminate.
John Hertel, director of strategic partnerships, told the June 5 General Issues Committee that both Global Spectrum and the Carmen’s Group understand that Hamilton could eventually sell the properties at some period within the contract.
“Both parties are comfortable moving ahead with this agreement,” he said.
Last summer councillors agreed to extend the original five-year contract, which began in 2013, for one year at the request of the Carmen’s Group. Carmen’s had proposed to make a bid to the city to take over all three entertainment facilities, but eventually backed down from the idea.
Councillors have been pleased with both companies’ desire to keep operating the facilities, since they all are in need of capital improvements. A 2017 city report found that FirstOntario Centre needs about $68 million in improvements, while a full remodelling comes with a hefty $252-million price tag.
Director of fleet and facilities Rom D’Angelo said that the city is already upgrading FirstOntario Centre’s escalators and elevators, and testing is being conducted on the ice surface and brine pipes. The arena needs to install a backup generator and replace the antifreeze lines, both at a cost of about $7.3 million; other improvements include a new roof, sound system, heating system repairs and accessibility upgrades.
There is also a threat from Michael Andlauer, owner of the OHL Bulldogs that plays out of the area, that he might relocate his team to a smaller facility, such as the 5,000-seat CAA Centre in Brampton.
Meanwhile, the Hamilton Convention Centre needs about $2 million of façade improvements.