Lots of interest in HECFI properties

(Updated video) There are six different bids from buyers interested in picking up Copps Coliseum, Hamilton Place and the Hamilton Convention Centre from Hamilton-owned HECFI.

The city put out a request for proposals last November after HECFI ended up losing $11 million in 2010. The city wanted to find out if there was a better way to manage them.

Six companies answered the request for proposals. None wanted to buy the facilities; rather, they wanted to manage them. All would still require subsidies from the city to cover capital costs, but the city believes this would cost it much less money.

A report by KPMG analyzing different stadiums around North America found the ones that had private managers needed much less support from the cities they were in.

Three of the proposals are from large North American companies. The first is a joint bid from AEG facilities & Katz Group. AEG operates more than 100 stadiums and arenas worldwide and owns the Los Angeles Kings. Katz group owns Rexall and PharmaPlus pharmacies, and the Edmonton Oilers.

The second joint bid comes from Global Spectrum and Live Nation. Global Spectrum operates multiple arenas and convention centres worldwide, including the John Labatt Centre in London. Live Nation meantime is one of the world’s leading concert promoters.

The third major bid comes from SMG and Forum Equity. SMG manages more than 75 arenas worldwide, and also runs multiple theatres and convention centres. Forum Equity is a Toronto-based development firm which already has a history of partnerships with the city of Hamilton.

Three other proposals are from smaller, local companies who are looking to take over just one of the three available facilities.

Festival of Friends director Loren Lieberman and the owners of Carmen’s Banquet Centre are interested in taking over the convention centre. Vrancor Group which owns and operates several hotels including the Hamilton Sheraton is also bidding on the convention centre.

And finally Hamilton-based record company Sonic Unyon which organizes Hamilton’s Supercrawl festival is looking to take over Hamilton Place.

Hamilton city manager Chris Murray says he’s encouraged by the companies who submitted proposals.

“We have six very good organizations, three internationally significant, three local that have done well in the entertainment and convention business. We’re extremely happy that we’ve got this much interest. To me it sends a very clear message that Hamilton is a place that can be successful in the sports entertainment business.”

When Hamilton put out this request for proposals, it said that it was interested in attracting an NHL team to the city. The top three companies do have significant ties to the NHL; they’ve all said they they would try to do what the could to bring NHL to the city.

The committee of the whole meets tomorrow to look at these proposals. They don’t have to make a decision until March but they do want to have new management or status quo; they could decide to leave the city as manager of these facilities.

A decision is expected by summer.

Video: Lisa Hepfner reports: