On the heels of that, proposals were invited from firms or consortiums interested in taking over the Hamilton Entertainments and Convention facilities, in whole or in part. The move to request proposals was largely driven by the losses recorded by HECFI.
The objective, it would seem, is to encourage different approaches and competition in a bid to run/take over the facilities. The strategy seems to be working. Despite some bidders dropping off along the way, the enduring bids seem to present different options and approaches; some of which aggressively target the bottom line- eliminating public subsidy.
The Hamilton Spectator has an informative piece in today's paper, summarizing the bids. It can be found here, or by purchasing the print version.
Is this another case of questionable accounting by the former arm's length entity HECFI now under direct control of City Council? Referring to the AEG/Katz Group's withdrawal from the process, spokesman LaForge offers the following;
ReplyDeleteLaForge said they weren’t comfortable with the operating numbers they were receiving for Copps Coliseum.
“It puts all the risk on our back. And the numbers we got, we just didn’t have faith in.”
“I think we wanted accuracy and we wanted reliability.”
Declining to go into detail, LaForge said he wasn’t pointing a finger at the city but that the process just didn’t work for them.
“The process has to work for you, otherwise you’re like a dog chasing a car: What do you do when you get it?”
I guess he is really saying "Caveat Emptor" let the buyer beware!
I am surprised that a councilor is talking so publicly about who he was impressed with. I don't think this is helpful. It creates an impression.
ReplyDeleteI'd be livid if I were one of the others bidding. Even when we start off doing things right, somneone always blows it.
DeleteIf you don't meet the grade then you have no one to blame but yourself. Clearly the excerpts was meant to save the taxpayers money. Therefore the best candidate was praised publicly. God forbid we have a Councillor stand up and facilitate the saving of public money. Give me a break. It is not rocket science. The best bid was praised by most by Council and I applaud them.
DeleteThe reason for the process was to have bids come forward to get rid of the subsidy and save my hard earned money as a taxpayer. Global-Live Nation-Carmens came the closest to the goal what more do you need to know or more importantly want. The other bids didn't come even close.
DeleteLarry
The staff of HECFI presented?
ReplyDeleteAre you kidding me?
The overmanned, under performing organization wants to run this full time now?
That occuring would make the WFT look like a children's picnic.
Where is the City's Senior Finance staff overlooking these organizations? No where.
Get rid of all of these supposed "arms length" organizations.
They breed incompetence and who knows what else.
Merulla has done a stellar job on this file. Without his vision this would never have been pursued. Good work buddy.
ReplyDeleteCharlie Wasmes.
If the largest Sports and Entertainment organization in the world couldn't see a business plan with the facilities as presented by the City's numbers what confidence can anyone have in the proposals by the other bidders to actually perform and reduce the subsidy and to not come hat in hand when things go wrong?
ReplyDeleteThe article goes on to state:
Meanwhile, LaForge says AEG/Katz is leaving the door open for further discussions if things don’t work out for the city.
He points out that AEG is currently developing Barclays Centre in Brooklyn, six stadiums for World Cup soccer in Brazil, a new arena in Moscow, and several in Korea and China.
This thread began with the coverage in the Spectator. So what's the confusion? However, this post referenced an article by Andrew Dreschel, Sorry Andrew it won't happen again. Maybe the "small cabal of naysayers" is not as small as you think.
Delete@ the pessimistic annon cynic
ReplyDeleteThe risk is all in the hands of Global, Live Nation and Carmen. There is a bond in place to act as insurance. The problem with AEG is they are the problem. Global and Live Nation are internationally HUGE and control the concert and sports market in North America with Carmens being a huge player locally.
What's your point? Are you saying AEG controls nothing?
DeleteThere is always a way out, it's called bankruptcy. Unless you are saying they are going to pledge their personal fortunes as collateral. There are no guarantees that can't be worked around. US Steel is a case in point. Fines and sanctions are just the cost of doing business in the global economy of today. My concern is not about the operators who are bidding, it's about the process that has been put in place and the financial information that has been presented by the City that seems to have caused a major player to withdraw.
Everyone else praised the City and the information received. Hence one cry baby doesn't represent the actuality that the majority felt otherwise.
DeleteWho would take this seriously when a councillor is parading in The Spec prejudging.
ReplyDeletePlease note
ReplyDeleteWhen using excerpts ftom other media sources in posts, please ensure that the source is duly credited. We have been made aware that an excerpt from a Patrick Laforge of the AEG Katz group quote made to The Spec, was used by one of our posters without crediting The Spec.
Thank you
Astute business people would listen to the presentations, score them and then discuss them and deliberate amongst themselves. Then they would announce their pick and reasons, and negotiate the contract.
ReplyDeleteOnly in Hamilton would you have sound bites given to the press about the favourites. Again, council demomnstrates why it cannot handle anything of significance without looking like amateurs.
First of all I think we need to know who exactly runs Carmens. Who is on their Board of Directors, does anyone know. God help us if they have the winning bid.
ReplyDeleteOpen your eyes Hamiltonians!
Dear Anonymous, I would be happy to answer your question. Carmen's is a family business comprised in ownership by my father Peter Mercanti, my brother Joe Mercanti, and myself. There are no other shareholders. The board of directors consists of the three of us as well, no one else. However, my brother, my father, and I all indirectly report to one other person who oversees the strategic direction of the business: my mother Gabriella. We only do things when she is happy with it. ;) Kidding, of course, but we are a tight night family business.
ReplyDeleteIf you are truly concerned that we may be in the fortunate position to win the bid of the Hamilton Convention Centre, I would like to know if you would be in a position to write City Hall a cheque for $1.3 million every year, because that is precisely the amount that we will be saving "Hamilton Taxpayers" EVERY year if we are running the Convention Centre. Our interests are simple: to save taxpayers money and to bring more foot traffic into downtown Hamilton.
If you do not want our group to operate the convention centre then it is apparent your interests for Hamilton are to increase taxes and to bring less foot traffic to the core. I'm pretty sure that Hamiltonians everywhere would ask you to "open your eyes", despite your request for them to do precisely that. Call me crazy, but I think that they do not want their taxes to be increased.
Wishing you all the best in your endeavors.
Respectfully,
- PJ Mercanti, President of Carmen's
"Our interests are simple: to save taxpayers money and to bring more foot traffic into downtown Hamilton."
DeleteWhere were these "interests" when you refused to support a downtown West Harbour stadium back in 2010?
With all due respect, I think your interests may be even simpler--money. I don't believe for one second that you care about the downtown core or saving taxpayers money.
Wow....West Harbour still? It's over dude move on. Why do people who say that if you didn't support West Harbour you don't care about downtown? I live downtown, my businesses are downtown. I thought then and now that a stadium at West Harbour was the worst thing for downtown. Housing, housing housing there.
DeleteIf Mr. Mercanti wins the bid I want him to pay taxes to the city, I want him to cut the subsidy. I want increased employment. AND you know what if he does that then let them make millions of dollars!!!!!
But that's a bad thing to some of the people who believe they are the "moral conscience" of the city.
Anonymous, We need to stop slagging our local businesses which have consistently created decent jobs and given our city an international profile against tremendous odds.
ReplyDeleteIf you must slag, then slag those who have run these public facilities into the ground while maintaining secured jobs and perks for decades.
We need to celebrate private sector businesses such as Carmen's for sticking their neck out in an inhospitable business environment, and proposing what they have. It take courage and personal commitment to do so - something which is not that simple.
If it was so simple then we already have at least a 100 large businesses and two large educational institutions in our city who could have easily carried our downtown on their backs all these years from the loose change which they spend on annual galas. But most of them have failed failed to do anything about our core so directly.
In my opinion the WH stadium proposal was a poorly planned exercise, and it is just as well that it is now being rightfully built in a struggling ward which greatly needs the economic boost. Things often work out the way they do for the better in the end -- and it is futile to hold grudges about things that were not right to begin with in the first place.
The only way our downtown is going to truly succeed is when our private sector begins to step up to their moral obligations in bringing back the pride of place in our city's core. And in this regards, Carmen's should be commended for being the first to do so with a bold plan.
In Reply to Mr. Mercanti's post:
ReplyDeleteAs a concerned citizen of Hamilton Wentworth and I speak for our community as well, may I pose this question. Is Carmen's part of a well known Not For Profit Charitable Organization in the Hamilton area? Please enlight us because thats the word on the street. I am sure I do not have to spell it out.
Brave enough to ask.
Hi Mahesh,
ReplyDeleteThank you for the kind words. It is nice to hear from somebody like yourself who understands that the operation at HECFI, which has cost taxpayers $75 million over the years, is the real problem that needs to be solved.
I am confused as to why Mr. Anonymous said that we don't care about saving taxpayers money. Our bid is offering substantial savings for taxpayers. Clearly this individual is stuck in the past, as he referenced our support of the Ticats in the whole stadium debate. But what he fails to recognize or acknowledge is that at NO POINT did Carmen's ever express a dislike for downtown Hamilton. It's quite the contrary. We love our downtown hence why we are committed to making such a major investment downtown via the HCC and our potential hotel.
I firmly believed then, and I still do today, that the West Harbour is better suited for a massive condo development than it is for a stadium. I would rather see people hustling and bustling to and from their residences than to see a massive stadium there. If condos do go up there, I would be one of the first to invest.
So Mr. Anonymous, please get your head out of 2010 and into the Hamilton of 2020! We need to bring action back to downtown Hamilton the right way, with foot traffic 365 days a year, not 10 days a year. My passion for Hamilton cannot be denied. My family has put its money and reputation on the line here so success is the only option.
At any point feel free to take your "anonymous" mask off and do the same. Happy Friday to you!
All the best PJ. Do us proud!
DeleteMy pleasure PJ! and best wishes in your ongoing efforts to revitalize our downtown core.
ReplyDeleteBravo PJ and Mahesh for your wise words...
ReplyDeleteTo those who do not know the Mercanti family, they have been around for many, many years...as the wife of an Italian gentleman~ I can remember decades of the Family weddings and celebrations being catered by the Mercantis in EVERY possible venue DOWNTOWN and across the City!
This is one heck of a hard working family that reflects the values and backbone to get things done RIGHT.
I for one, sincerely hope that we have a FAMILY OWNED AND OPERATED BUSINESS in the picture, future forward, to turn our City owned gems into the diamonds they can be!
Have an amazing weekend everyone!
Danya Scime
Funny how Merulla and the Mayor have made comments or posted stuff about the bidders. Should they be doing that?
ReplyDelete