Friday, July 27, 2012

P.J. Mercanti - On HECFI Attractions

PJ Mercanti
We asked PJ Mercanti, President of of Carmen's, the following with respect to Carmen's bid relative to HECFI:

Q. Being able to bring quality entertainment and other attractions to HECFI facilities, in a sustained way and in a way that will invigorate the city of Hamilton in that regard, will surely be a critical component to the future success of the HECFI facilities. 

We note that Carmen’s has been able to attract personalities such as Al Pacino, Sylvester Stalone and a host of other popular celebrities at its facility. We assume however (and correct us if we are wrong), that the upfront work and negotiations to bring such big names to Hamilton, may have taken months and likely, years to accomplish. 

This question relates to scale. How would Carmens go about ensuring there is a regular stream of quality acts coming to Hamilton, on a scale that perhaps is different and more demanding that what it might otherwise be at Carmens (the facility).? What adaptations, if any, might you recognize as needing to be made to support a larger scale operation?

P.J. responded as follows:

As it relates to The Carmen’s Group bid for the Hamilton Convention Centre, a small component of our business plan will be centered around entertainment events as it is more of a priority for Copps Coliseum and Hamilton Place to host live entertainment events, not the Convention Centre. Our priority for the Convention Centre will first and foremost be centered around two items: 

· Significantly reducing the ongoing subsidy.

· Driving more events at the Convention Centre, whether they are conferences, conventions, trade shows, meetings, corporate receptions and banquets, fundraisers or weddings.

Increasing the volume of events and eliminating the taxpayer burden is the top priority. The increase in event activity at the Hamilton Convention Centre will spur other economic development including hotels and restaurants, which is also part of our strategic plan at the HCC.

As it relates to entertainment, we will certainly continue to work towards bringing big name celebrities into Hamilton and will share these events between Carmen’s and the Convention Centre. Some big draws would be better suited at the HCC than at Carmen’s. But these “special events” will not be a critical or sustainable piece to the overall business model, they will primarily be an added bonus to add some flair and buzz around the Convention Centre and to downtown Hamilton.

Over and above this we do plan on working with the operators of Hamilton Place and the Studio Theatre, as we believe that there are many acts that would be better suited to be an open floor space that the Convention Centre offers than at either of the other two venues. Acts like Sam Roberts and George Thorogood would be ideal for the Convention Centre.

We look forward to hopefully doing our part in enhancing the value proposition and efficiency of the Hamilton Convention Centre and towards saving taxpayers a lot of money.

PJ Mercanti, The Carmen’s Group


Thanks PJ for your reply. 

4 comments:

  1. I don't think PJ answered the question!

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  2. Thanks PJ. I wish you, your family, and your partners well in your bid to take over management of the HCC. For what it's worth, I have been very impressed with not only what you have presented so far, but also in how you have presented it.

    In spite of what I see as unwarranted criticism on the part of some, I think your track record at Carmen's, including the new Chotel, means you are well suited to help fix the problems at the Convention Centre, particularly if you work in partnership, no matter how formally or informally, with the winner of the bid for the management of Copps and Hamilton Place.

    You and I were on the opposite side of the West Harbour/East Mountain stadium debate. We both lost that one. I think this one (HCC) can be a win for all Hamiltonians.

    I wish you well. Thanks for taking the time to share some of your ideas.

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  3. AnonymousJuly 30, 2012

    "As it related to entertainment, we will certainly continue to work towards bringing big name celebrities into Hamilton and will share these events between Carmen's and the Convention Centre. Some big draws would be better suited at the HCC than at Carmen's."

    In light of KPMG's explicit identification of competition with Carmen's as part of the HCC handicap, I would be interested to know how the determination would be made about what best suits the Convention Centre. It's not square footage, catering facilities or proximity to hotel rooms. (Not sure about price point/unionized workforce.) Any of the charity celebrity galas at Carmen's would seemingly be well-suited to the HCC on a number of levels (though Carmen's has rarely had more than a couple of these per year). This seems like a potentially problematic area, or at the very least an overstated potential upside.

    Moreover, as sidecar partners to the Live Nation bid, the HCC could potentially be third-party-programmed by its senior partner, when and if that happens. (This certainly addresses a weakness: Most of Carmen's public-invite bookings seem to be dinner theatre aimed at the Silent Generation and Baby Boomers, a unique and non-competitive market niche.) As PJ notes, "a small component of our business plan will be centred around entertainment events as it is more of a priority for Copps Coliseum and Hamilton Place to host live entertainment events, not the Convention Centre." And yet there is specific mention of relocating bookings from Hamilton Place and the Studio Theatre. In the bigger picture, that strikes me as subtractive value.

    Becasue of their afiliation with GS/LN I believe that the Mercantis will end up with the reins to the HCC and can certainly bring a unique skill set to the table, but IMHO this will continue to be the most problematic of the (former) HECFI venues for years to come.

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  4. PJ and his family have done well for our city. If a banquet hall can bring in better entrainment than Copps - I say let PJ run the show. I love attending Carmens events. Its always a class act. I have never been disappointed with a meal or show. I love the idea of Carmens building a hotel downtown. We need a hotel. I can only imagine how run down the Sheraton must be now, since lossing the The Royal Connaught, Ramada etc... I wish PJ and the Mercanti family the best of luck of winning the bid to take over HECFI. I also love the link to Carmens on this site. It has come in very handy when I refer people there to attend a function or book a venue.

    Paul

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