Plans to renovate the aging XL Center in downtown Hartford have been in the works for a decade, but have recently stalled due to rising costs, with up to $4,500 refurbished under a spending bill passed by the state Legislature late Tuesday. It could result in a significant increase in state funding of up to $1 million.
The bill, which is currently being signed by Gov. Ned Lamont, would increase the amount of funding the state is willing to spend on renovation projects from $80 million to $125 million.
Last month, the Metropolitan Development Authority, the quasi-public agency overseeing the renovation, announced that bids for the sports and entertainment arena renovation exceeded $140 million. This significantly exceeded the $107 million estimate, but also exceeded the combined amount of government funding and private investment tentatively set aside to fund renovations.
The additional state funding, which also includes funding from the CRDA, will bring significant improvements to the project, which faces further downsizing, to improve the profitability of the 16,000-seat arena, which will celebrate its 50th anniversary next year. It may give you an opportunity. Reducing the arena’s annual losses, currently about $2 million, is key to attracting private investment.
“We have walked the line between renovating the building and rebuilding the business,” CRDA Executive Director Michael W. Freimas said in a text. “This allows us to focus on the latter.”
CRDA is currently seeking a new bid with some improvements cut to lower costs.
The renovations aim to make the XL Center more competitive with a new arena, attract more events, and last for another 20 years. Supporters of the project see the arena as a major attraction downtown that will draw patrons to local bars and restaurants.
Lamont supported major renovations to the XL Center, but with private investment that would ease the burden on state taxpayers, who collect most of the money.
The increase to $125 million does not change the existing requirement that private investors contribute at least $20 million to the project. Los Angeles-based Oak View Group, which operates the XL Center on a day-to-day basis, is keen to invest.
OVG has extensive experience in relocating sports and entertainment venues. The organization manages 300 sports and entertainment venues and redevelops others around the world.
OVG’s investment is strongly tied to attracting more concerts to XL Center, an event that is a major revenue generator for modern arenas. But in order to attract more high-profile concert bookings, renovations will also need to include relocating the stage to increase the number of seats with unobstructed views of the performers. Build the overhead structures needed for modern light shows. A loading dock has been modified at the rear of the arena to allow for faster access to and from shows.
If OVG agrees to the investment, the organization will significantly expand the arena’s operations, including negotiating contracts with major tenants such as the University of Connecticut and paying for most of the building’s repairs, excluding major renovations. I will do it.
The bill calls for OVG to absorb annual net losses at the arena, but would keep the first $4 million in net income. Above $4 million, net profits will be split 50-50 between OVG and CRDA.
Even if approved by the Legislature, the funding increase would still have to pass the State Debt Commission.
XL’s current plans are downsized from $250 million a few years ago and are focused on adding premium seating in the lower half of the arena, where ticket prices are higher.
In addition to premium seating, including “loge” seating outside the concourse, club space under the stands, and “bunker suites” at the event level, the upgraded concessions are all aimed at increasing revenue for the arena.
Also a priority will be technology to improve electronic ticketing, phone app transactions, and handling the high volume of social media posts and text messages during events.
Kenneth R. Gosselin can be reached at [email protected].