Four suitors make a pitch for Hamilton's HECFI

Four bidders pitched why they should be granted control of the Hamilton Entertainment and Convention Facilities Incorporated (HECFI) properties, Copps Coliseum, Hamilton Place and the Convention Centre, to the General Issues Committee Wednesday.

The bidding run down: Global Spectrum and Live Nation; SMG and Forum Equity, in partnership with Hamilton’s Sonic Unyon;

Carmen’s Inc. and the current HECFI management.

Councillor Terry Whitehead said he would be looking to see how each group would reduce or eliminate the near $5 million taxpayer subsidy the city carries to manage HECFI's three properties.

Global Spectrum/Live Nation

Global Spectrum’s senior vice president, Frank Russo, and Live Nation’s chairman Riley O’Connor were first bidders to present, vying only for the management of Copps Coliseum and Hamilton Place. They have withdrawn their interest in the Convention Centre.

Global Spectrum manages 40 arenas, 13 stadiums and 32 convention centres around the world. Russo emphasized that 11 of Global Spectrum’s arenas are in Canada. Its partnering bidder, Live Nation, is one of the world’s largest concert promoters in the world, and largest producer and promoter of entertainment in Canada.

"We’re going to make a $500,000 contribution up front," Russo said, promising that taxpayer subsidies will be immediately lowered from $1.9 million for Copps and Hamilton Place to $1.4 million. They guarantee to reduce the subsidy by at least $500,000 a year.

"We’re not looking to cut a lot of expenses," Russo said. "We’re looking to grow revenue."

Russo said they would look to add services that he sees as "eminently sponsor-able" – offering sponsorship of venue areas and events. He also mentioned an opportunity for offering corporate naming rights of Copps Coliseum, but said it was "too early to put a price on that."

Russo and O’Connor highlighted their extensive venue management and concert experience. The two claimed that their ability to reach out to people, build a fan-base and offer an "experience" for audiences as one of their greatest assets.

Live Nation’s VIP fan engagement such as ‘meet-and-greets’ and engages with consumers digitally, O’Connor said. These types of engagement would enhance audience interest in Hamilton’s venues, he claimed, thus increasing ticket sales.

SMG and Forum Equity

SMG and Forum Equity, in partnership with the Hamilton-based record company, Sonic Unyon, are interested in managing all of HECFI’s facilities, and, their representatives told council, they are committed to downtown development as well.

The companies guaranteed city council of a minimum $1 million subsidy reduction. "In our case we’re talking about all three facilities," said Bob Cavalieri, SMG’s senior vice-president.

Their presentation didn’t include an in-depth breakdown of how this rate would be attained, but said that the $1 million would come from a "variety of sources" including taking on the responsibility for human resources and legal costs.

Cavalieri and his co-presenters played up a community-focused approach to managing Hamilton’s major entertainment venues, and used the companies’ recent partnership with Sonic Unyon to demonstrate this.

Sonic Unyon co-owner Mark Milne emphasized that the partners’ major priority would be to create "true community facilities" that would encourage local artists – "they’ve been locked out," he said – and widen access for the public.

Sonic Unyon organized Hamilton’s first supercrawl arts festival, which brings 50,000 people into the streets to appreciate art, the presenters pointed out.

"We’re having a cultural renaissance (in Hamilton)," Milne said. The newly managed facilities could serve as an "arts incubator," he said.

Re-branding Copps Coliseum and Hamilton Place would be a "community effort," the presenters agreed. It would involve revitalizing arts and entertainment throughout Hamilton’s downtown, not just within the facilities.

Cavalieri pointed to SMG’s redevelopment of the New Orleans Centre shopping mall into Champions Square, as an example of how they believe the partners will be able to expand Hamilton’s arts and entertainment scene beyond the walls of the venues.

SMG globally manages 77 arenas, 54 theatres and 68 convention centres, including two NHL arenas.

Cavalieri brought SMG’s Dunkin’ Donuts Center to the city councillors’ attention.

"I thought we could have a Tim Horton’s Coliseum like the Dunkin’ Donuts," he said. Although corporate sponsorship would need to match the brand of the facility and be a collaborative decision, he explained.

Cavalieri argued that their local connections, through Sonic Unyon and Forum Equity, a Toronto-based development firm, would help SMG and its partners make Hamilton’s economy the top priority.

Hamilton "will always be number one (to SMG and Forum Equity)," Cavalieri said. "We’re you’re advocate. We’re you’re advocate 100 per cent of the time."

He admitted he was comparing his partners to competing bidders who have multiple investments in competing markets. Global Spectrum and Live Nation Entertainment are involved in a planned arena project in Markham.

Carmen’s Inc.

The Mercanti family, which owns Carmen’s Group banquet halls, brought a little bit of "Vegas" to their presentation.

Their pitch to take over Hamilton’s Convention Centre, involves dropping the centre’s annual taxpayer operating subsidy and adding a giant hotel with "wow factor."

Owner Peter Mercanti promised to cut the centre’s $1.3 million subsidy by $1 million if the city awards the Convention Centre to his group.

The "world class" hotel would be a "game-changer complex," a 44-storey, 440-room hotel with 150 condo units and three restaurants. It would be the tallest hotel in the city, at 700,000 square feet. It would include 100 parking spaces and create 500-800 jobs.

Carmen’s Group would aim to build the hotel within three to five years.

The structure would be "as good as what you see in Vegas," Mercanti said. "We need a building where you say, ‘wow!’"

Hamilton needs hotel rooms, Mercado said. "we’re trying to fill what we think will be a need in the next few years."

"What we want to do is be the one that changes the game," he said. "I love our city."

Hamilton Entertainment and Convention Facilities Inc. (HECFI)

John Hertel, acting CEO of HECFI, pointed to changes they have made over the past year, including an increase in ticket sales.

There are normally no more than 12 entertainment events booked at the Convention Centre, he said, and this year they’ve already registered 18.

HECFI promises to reduce the subsidy to $1.2 million over the next four years.

More than 85 per cent of people who attend HECFI’s venues report that their experience was ‘very good or excellent,’ Hertel said. HECFI has "very rich data mining," he said, "and we monitor ticket sales closely."

Hertel also asked Council to recall 4,000 people "wandering downtown" recently. This was due to a Pentecostal gathering held at Copps Coliseum, the spokesperson said.

"It’s a process of continuous improvement," he said.