BY: Gerry Cantlon, Howlings
HARTFORD, CT – It’s a guessing game predicting for CRDA Executive Director, Mike Freimuth as to the actual opening date for the XL Center to begin hosting events, with what is likely to be a reduced crowd.
“We’re like everybody else. We have a lot of holes in our calendar. To be honest, everything is stopped. We’re hoping for the Magical Mystery Tour,” Freimuth said with snark in his voice as he referenced “The Beatles” 1967 album.
The losses at the XL Center have been a permanent feature since the building was first constructed, but like everything else, there is no precedence for what is happening now.
With the fiscal year coming to a close, the XL Center is nearly $4.2 million in the red.
The pre-COVID-19 losses were to be in the usual $800K to $1.5 million ranges. The losses will nearly double – and all came in the last four months
“We’re gonna be around $4 million, a little more,” remarked Freimuth, “and we’re usually around $2 million. What people don’t see the legislature actually sets that ($800K). The rest of it is made up from other sources (i.e. the Church Street parking garage) to help offset things. The building regularly (losses) runs $2 million in the red. That $800K is made up for in transfer payments and other operations like parking. This year its $4 – $4.2 million, so that’s double the historical average in shortfalls and half of that came in the last three months. The last quarter has always been a solid period for us, certainly not this year. We missed the end of the year (hockey), AHL playoffs, some big shows we had planned, and the concert tours that we’re about to start.”
The downtime has allowed the new chiller system project to go on and is still on target to be completed by September and Freimuth thinks that the time-frame will hold. “It’s looking good to be done in the fall and I hope we can fire it up, but who knows right now.”
The CRDA has advanced an aggressive idea now being pushed by Hartford Mayor Luke Bronin, who is also a CRDA Board member, to start the renovations now and close the XL Center for a year.
“Honestly, its gonna be a compromised year any way you look at it. Right now, we’re looking at late fall and we’re gonna lose four or five months of revenue to start the year and combined with reduced attendance in the back of the year. So going forward next year, our losses, even with the opening will be pretty consequential. We’re talking the $4 to $5 million range. So when considering that $4 to $5 million dollar hole against closing it. The debate becomes why not use the year to save yourself the trauma and yes, you’re hurting the parking, the hotels, the restaurants. It’s pre-ordained use, and take the year to renovate. That is future renovations, not just current ones. The economic benefit, long term for the neighborhood (around the building), why not go at it?”
Freimuth was asked if starting the renovations could happen without a deal with Northland?
“We could do it. We have money bonded and in our checkbook and that’s up to $30 million. We’re planning and will be spending it because there are a lot of system things we have to check. We are going to have to make building changes due to COVID. We can do so and we have to prioritize things. Some things are relatively simple like changing the concourse direction. The larger issues are the elevators, escalators, entrance, and exit doors, which we will be increasing any access areas in the building, more plexiglass in areas, and upgrading out IT and WIFI systems. Those are design and cost issues that we will have to tackle that we haven’t foreseen. A lot behind the housework that has to be done in the building that people don’t see.”
Being kind, the WIFI system is antiquated. Upgrading it may improve services in concessions and operations, not to mention those filing stories. It could actually save money.
“Technology has changed and gotten better and more refined with an expected lower attendance and with doing at-seat service. It may reduce overall costs in concessions in other areas. It’s the backbone of the building (concession). IT and WIFI upgrades are in the works.”
The $65 million bonded just before the shutdown was approved, but isn’t bonded yet. “The legislature has approved it, but the bond commission has not yet approved it.”
Freimuth was unaware of a time frame that the bonding might be done? “I don’t know,” he said demurely. “The legislature closed down April 3rd and hasn’t opened yet and a special session has been talked about, but has yet to materialize.”
Freimuth also had $30 million that was approved two years ago, but that was for the chiller project and acquiring “The Atrium” from its titleholder, Northland Corporation.
The negotiations, which have been ongoing for three years, have gone nowhere with no resolution and remains at an impasse, even with staff people from the Governor’s office trying to help. “There has been no change.”
When asked about the last substantive discussion about it, Freimuth said, “Wow, last year sometime when we made an offer. Let me clarify that, the governor’s senior staff met with them just before the shutdown.”
But has anything moved forward?
“You figure having all the people in the room helps, right? Nothing much came out of it than when we (the CRDA) were talking with them. Draw your own conclusions,” Freimuth acidly noted.
Eminent domain is still an arrow in the CRDA quiver, but the Governor and legislative leaders, prior to the pandemic outbreak, were still requesting the CRDA and its Executive Director not to act on it. That act is still being held in abeyance.
“It’s still there,” would be all that Freimuth would say.
The Hartford Wolf Pack has a starting date of October 9th for their home opener. That date now appears to be unlikely because so many others in the 31-team league have experienced serious COIVID-19 spikes like in Texas, North Carolina, Arizona, and California where five-of-eight of the teams in the Pacific Division can’t start on time.
“We’ve had no communication from the Wolf Pack or AHL on the when there will be a start date. The NHL and AHL have talked, but we have been told nothing official at this point, I think likely late fall is a likely start date.”
UCONN hockey is working on finalizing its non-conference schedule with Ohio State and Arizona State. UCONN is scheduled to host games at the XL Center plus play in a Christmas tournament in Wisconsin.
The NCAA and Hockey East have remained very quiet, but collegiate sources reveal that things are changing on almost a daily basis and that reaching a consensus is difficult.
Scheduling for the two big winter sports remains a major quandary.
“We haven’t heard anything on either at this point. This year going to the Big East in basketball and we were really looking forward to it gonna be delayed.”
When the XL does re-open, it’s going to have a whole new look and feel as to how the building will operate.
The building’s operator, Spectra, and the CRDA are in very early stages of an extension or renewal to their contract, but that is still down the line.
“We’re having those discussions and they will be making an investment in the building as well. These are very early conversations. We still have three years left. It’s still three years to run. Operationally we’re working on different models. The good thing with having Spectra is that they have other buildings throughout the country and worldwide who are all experiencing the same thing, at the same time. So operationally, we can analyze everything and learn to capitalize for our building.”
The hope from all involved in the XL Center is that they won’t lose a whole year like the Hartford Yards Goats did when the minor league season was canceled.
