CANTLON: XL CENTER BID IN FINAL STAGES
BY: Gerry Cantlon, Howlings
HARTFORD, CT – Plenty of questions have been asked. There’s been lots of communication between the CRDA and Oak Street Realty LLC of Chicago and the CRDA is now mulling over this lone bid to see if a marriage can be made to save the XL Center.
No final decision is expected until October.
“The jury is still out,” CRDA Executive Director Mike Freimuth said. “We have quite a bit of info to sort through. There are quite a few pieces to digest. The most important factor, however, is the money portion. Oak Street wants us to pay back their capital investment of $250 million at 7.5% interest and we think we can get the $250 million at 3.5% or 4% (from the state). That’s some serious dollars there. Of course, the legislature has been reluctant to commit to this project.
“We also have to look at the numbers. Are we paying more in interest than the principal involved, and we’re talking again significant dollars here; because at the end of the day, what is the value to the building, and we need a long-term solution and I’ve been saying this for five years.”
Clearly, the other elephant in the room is the eminent domain situation. That remains in a holding pattern as it’s being held in abeyance, but there are conversations still on-going between the CRDA & Northland Corporation. How friendly or constructive they are? Freimuth is keeping his comments reserved.
“We’re still in discussions with Northland. A lot of it right now has to do with operational issues in the atrium and we are expecting literally any day now their latest appraisal on the atrium. We have been far apart for some time other than that I don’t want to comment much further.”
As the clock continues ticking, decisions on a number of issues need to be made, starting first with the bid.
“I’m thinking by October we’ll have reached a decision on Oak Street’s proposal, and as far as Northland, we have been at this for over two years. The jury is still out on that too.”
The new fall sports season will commence next commence and there will be one noticeable difference at the XL Center – it’s going to be brighter inside.
“We have taken all the old lights out, and very shortly we’ll be installing the LED lighting and there will be a noticeable difference in the arena and hopefully in our monthly electric bills,“ Freimuth said with a laugh. “One elevator has been repaired and another is being worked on. We have started preliminary work toward getting a new chiller system and that is going to require significant pre-planning. Bob Saint, our construction manager, and his team are working to find a spot, and make sure we are up to code and lay the literal groundwork on the project likely to be done next summer.”
