CANLTON’S CORNER: XL CENTER LOOKS TO BE SOLD
CANLTON’S CORNER: XL Ctr Looks to Be Sold
BY: Gerry Cantlon, Howlings
HARTFORD, CT – It’s expected that the next two weeks would likely determine the future direction of the state’s two major multi-purpose hockey arenas, the XL Center in Hartford, and the Webster Bank Arena in Bridgeport.
Of the two locations, one shoe dropped giving direction on the future Wednesday night in Bridgeport.
Nationally renowned concert promotion agency, Live Nation, working with local developer, Howard Saffan, the one-time former president of the Sound Tigers, won the bidding process to convert the baseball stadium into a three-season, 5.500 seat, outdoor concert amphitheatre in the fashion of the Meadows/Xfinity facility in Hartford, to open in May 2019.
The awarding of the deal to Saffan/Live Nation was ratified by the Bridgeport City Contracts Committee Council on Wednesday night.
For the other facility, an even bigger shoe dropped on Thursday morning.
A bi-partisan, $40-billion-dollar budget passed early Thursday morning in the Senate and in the House. However, that budget only allocates $40 million to be bonded (pending bond commission approval) to the XL Center over the next two years to do much-needed repairs and to purchase the atrium.
CRDA Executive Director, Michael Freimuth, was certaintly not doing a jig but he wasn’t exactly ringing the church bell either. “We’re caught in the middle. There is no consensus to shut it down or renovate it either. We’re happy the operating budget was maintained for the building (at $600K) because the budget previously passed and vetoed by the Governor had it cut completely. If it had passed it would be a completely different situation to deal with.
“Now we have two questions before us. We have the $40 million the next two years to do some needed repairs and deal with the Atrium. The larger one is can we find outside investors by 2019 in helping with the renovation part since there is no appetite in the legislature (to fund) it now.”
The legislative finance committee took the original request of $125 million – half the publicly stated cost of the project – and recommended only $75 million. In one of the failed budgets over the past few months, John Fonfara (D-Hartford), who has the XL Center in his district, had a plan to bond $115 million. That budget was defeated with three Democrats defecting to pass the Republican proposal. That budget was vetoed by the governor.
Freimuth was under no illusions about the $115 million budget allocation.
“That had no chance of ever passing. Certainly, would have been nice, but I’m a pragmatist about this. You have to be realistic about what you can get given the fiscal dynamics in the state right now. We have fully depreciated equipment in the building, contracts with Spectra, and major tenants, so this is not an easy situaion for obvious reasons. The marketplace the XL Center operates in will be changing in the next two years as well with a new casinos and now the amphitheater in Bridgeport.”
There was another kiss of death provision in the budget. If a private investor isn’t found, the XL Center will go up for sale in 2019. It seems like a polite way to say, “We’re closing the building because nobody will buy a 44-year-old building.” Last year, an RFP’s for private investor’s was put out and received just one response.
Northland Corporation, the owner of the atrium title and who has been in a protracted negotiation for close to two years will now seek even more money for the title and deed he holds. Northland could now wait until the building closes and build another building. During the early days of Northland’s being the building’s operator, this reporter was this was Northland’s long-term strategic objective.
At this point, all of the current occupants have expiring contracts. The most immediate is that of the Wolf Pack.
As per the agreement, MSG has to inform the CRDA by December 31st of their intention in regards to the contract. Both sides are already discussing it.
“We have been talking (to them) for the better part of two months,” Friemuth said. “They have expressed their interest to remain in Hartford and any deal will be short-term because that’s what we’re working with right now.”
Friemuth confirmed what Howlings reported two months ago that there is a two-year offer on the able. He wouldn’t confirm the numbers, but a reliable source stated it would follow the path of the current deal which would pay $1.55 million in 2018 and $1.6 million in 2019 with the check being written by Spectra.
After the Wolf Pack situation is resolved there’s still the matter of UCONN hockey which has to be sorted out first before anything concerning the basketball teams.
“They clearly need a place to play with no on campus arena in Storrs. I would say that might be a 2-3 year agreement or a year-to-year with options. There are several ways to proceed with it. I think now with an operating budget in place, we can move forward with that piece and the Wolf Pack.”
The ultimate solution on the building is still nowhere in sight.
“I wish I could say we have something, but we don’t at this point. We’re kind of like the Romans and the Greeks with our Coliseum. Not much has changed. We know the problems and we know what needs to be done and until the fiscal landscape changes, it’s still unresolved. We put a lot of effort in the process. I have learned not to answer my phone after 11 pm anymore, that’s for sure,” a smiling Freimuth stated. He was referencing the many late night budget issues that been worked on the past two months.
It seems that we might be leaving a Roman Coliseum in Hartford that future generations will come with backpacks and say, “This is where the XL Center once stood or where Hart City finally flatlined.”
(A more detailed historical outline of the history of the states sports arenas is coming this weekend)
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