Hi folks - I'll be live blogging from today's meeting as the events unfold, but first I wanted to post two letters that were released yesterday. The first is Bob Young's letter that outlines his financial commitment to the east mountain site. The second is the mayor's response.
Mayor Fred Eisenberger July 6, 2010
City of Hamilton
and Members of Council
Subject: Moving Forward
Dear Fred,
The Hamilton Tiger-Cat organization has had an opportunity to digest
the Report of Facilitator Michael Fenn and the recommendations that he has made
to both Council and the Tiger-Cats. Having grown up a proud Hamiltonian, I am
grateful to Mr. Fenn for his sincere efforts to bring us together.
I am certain that you would agree with me that the past two months have
afforded both parties with greater insight into the vital importance of
reaching some strategic decisions to ensure we build a stadium to welcome the
Pan American Games, and serve as a sports and entertainment mecca for our
community for decades to come.
With few exceptions, we embrace Mr. Fenn's Report. We are mindful of
the concerns held by the Province
of Ontario, and those of
Ian Troop, Pan Am Hostco CEO, as they pertain to agreeing on a sustainable site
immediately. I am certain that you share our anxiety that further delays will
force the Pan Am Committee to seek venues elsewhere in the province. That would
be a horrible outcome for our City.
The identification by Mr. Fenn of the "ORC" lands on the East Mountain
was not our first choice. You will know that we had several other locations
that we believe would have made fundamentally sound business cases for the
stadium and its tenants. For various reasons these sites were taken off the
table.
Mr. Fenn's choice of the "ORC" East Mountain
lands represent a compromise to our organization. We are prepared to accept
that compromise now, and negotiate with the Province of Ontario
and the City to make this a reality. There are a wide range of advantages
inherent in this compromise site proposed by Mr. Fenn:
1. The
Government of Ontario
through the ORC (Ontario Realty Corp.) own these lands and expensive land
assembly is not required.
2. The
subject property is within the urban boundary of Hamilton
and permits me to achieve my goal as Caretaker for the team, to ensure the
Tiger-Cats remain in Hamilton
for another one hundred and forty years.
3. The East
Mountain ORC lands would not be the subject of Ontario Municipal Board
hearings, or court actions, and the property could be "shovel ready"
in a very timely manner.
4. The
location of the compromise stadium would be very convenient for most fans. As
Mr. Fenn properly noted, our business plan requires that we elevate our
marketing activities to strategically position the Hamilton Tiger-Cats as a
"regional" Southwestern Ontario CFL team. The "ORC" East Mountain
compromise speaks to the importance of "tomorrow’s fan" and
will serve as a facility to draw people into Hamilton for football and other events. As
well, the site will not negatively impact area residents and as such, the
stadium will have a great deal more multi-purpose flexibility.
5. Senior
executives of Metrolinx, the province
of Ontario’s public transit
organization, met with senior city officials, the facilitator and ourselves and
they confirmed that regardless of stadium location a downtown Hamilton station at Liuna station is part of
GO’s expansion plans.
6. The
compromise site achieves the objective of a second Hamilton GO train station as
confirmed in our meeting with Metrolinx. It would be our expectation that a GO
bus terminal would be on site, as well as ample parking for other buses to
support our strategic regional bus/ticket marketing program that we will launch
with the CFL throughout Southwestern Ontario.
7. The lack
of remediation, planning and expropriation problems associated with the East
Mountain "ORC" site enable us to conclude that together we can
complete the construction of the stadium as soon as 2013 within the budget
commitment of the city of Hamilton.
8. We believe
that the essential ingredients to a successful and sustainable stadium, as
documented in the Facilitator’s Report, are inextricably tied to the
sustainability of the Hamilton Tiger-Cat Football club, the oldest professional
sports franchise in North America, in Hamilton.
Our Commitment to the City of Hamilton
Success in any business undertaking is the sum total of everyone doing
their part. The Hamilton Tiger-Cats are prepared to do their part and more. Our
contributions to the new stadium will total in excess of $74,000,000.00.
Specifically:
1. The Club
will contribute $15 million to the cost of the stadium and precinct.
2. The Club
will operate the stadium and cover the estimated annual operating cost of $3
million per year. Simply put, the City will not be responsible for stadium
operating losses going forward. Over the 10 year initial management contract
this will total $30,000,000.00.
3. The club
will assume the transition costs between today and the opening of the new
stadium of an estimated $10,000.000.00.
4. The
Tiger-Cats commit $14,000,000.00 to bring two Grey Cup Games to Hamilton as soon as
possible. The quantifiable economic benefit to the community will exceed $200
million.
5. Associated
with this, working with the City, we will ensure the location of the Grey Cup
Festivals in the area of the West Harbour/North End community. This will be an
opportunity to showcase our Waterfront to in excess of 20 million viewers
throughout North America.
6. As you
know, I am involved in the business of professional soccer through the NASL and
the Carolina Railhawks Soccer team. It is our view there is a great deal of
synergy for combined football and soccer organizations. As such, we have
secured franchise right for Hamilton
with the North American Soccer League. You will find, attached, a letter from
F. Selby Wellman, Chairman of the NASL Finance Committee. Working together, I
am confident that we can bring the appropriate level of professional soccer to Hamilton. Purchasing and
establishing a new professional team in Hamilton
will require an investment of greater than $5,000,000.00 over its first few
years of operations.
7. CFL
marketing. Having met with CFL Commissioner, Mark Cohon, you will be aware that
the Tiger-Cat "brand" is amongst the strongest in North
America. This is a reflection of the tremendous fan loyalty that
has evolved over many years. Our fan base, web interest, and viewership are
amongst the highest in the CFL. To this end, The Hamilton Tiger-Cats, and the
CFL, will enter into a long term strategic marketing program to communities
within 90 kms of Hamilton
to encourage them to attend Tiger-Cat games and spend time in the City. It
would be our intention to work closely with the Economic Development Department
of the City to enhance these CFL marketing investments.
8. As you
know, the Hamilton Tiger-Cats have formed a working agreement with Mr George
Schott CEO of Osmington Inc. As referenced in the Globe and Mail, Osmington
Inc, a Thompson family company, enjoys an enviable reputation within the
development, finance and entertainment community. Specifically, Osmington
developed the highly successful MTS Centre in Winnipeg,
the third busiest arena in Canada.
Mr. Schott has deep roots and has invested heavily in the Hamilton community. He shares our sense of
enthusiasm about ancillary and complementary developments at the
"ORC" East
Mountain stadium site.
The City of Hamilton
may be assured that through our collective resources, we will do our absolute
utmost to optimize the stadium precinct.
9. The Club
has engaged Mr. Denis Braham, Chairman and CEO of Winstead PC, one of the
leading stadium construction advisory firms in North
America. They have recently advised on both the new Cowboys Stadium,
home of the Dallas Cowboys of the NFL, the Meadowlands home of both the New
York Giants and New York Jets, and the new Yankee Stadium in New York City.
10. Consistent
with the Ticats highly successful community outreach “BeFit”
program, we intend to leverage the site infrastructure to provide a youth
leadership program for the East
Mountain community. This
will engage the entire community and would provide fitness, nutrition, obesity
management and leadership training skills that will have a lasting value for
our young people.
The Way Ahead
It is time to move forward. There is so much more that binds the City
of Hamilton and
the Hamilton Tiger-Cats than divides us. My family has lived and worked in this
community since 1870. We have supported a wide range of worthy charity and
community endeavours and will continue to do so. My commitment to the Hamilton
Tiger-Cats is stronger than ever as evidenced by commitments made in the past,
and commitments made today.
But the time for "two track" discussions must conclude or Hamilton risks losing
Provincial and Federal funding that it may never see again. The "ORC East
Mountain" lands are
not our first choice. They are not our second choice. But it is a site that
allows us to move forward now.
I would ask that Council consider the significant proposal that I am
advancing through this letter. We are prepared to enter into negotiations with
the City and with the Ontario Government through the Ontario Realty
Corporation, with a view to completing a Definitive Agreement on the "ORC East
Mountain" site as
quickly as possible. Council will be assured of our total cooperation moving
forward.
I will endeavour to make myself available to elaborate upon our
commitment in conjunction with our President Scott Mitchell and my Corporate
CFO Doug Rye, C.A.
Sincerely,
Mr. Robert (Bob) Young
Caretaker
--------
Mr. Robert (Bob) Young
Caretaker
Hamilton Tiger-Cats
Dear Bob:
Thank you for your letter of today and for acknowledging in it the fine
work of facilitator Michael Fenn. I believe he did an outstanding job
and has produced an excellent report.
As you know, that report will be considered by Hamilton Council at a
Special Meeting of Committee of the Whole tomorrow, Wednesday, July 7,
2010. There is no doubt that Council’s discussion of Mr. Fenn’s report
and his recommendations will be considered given the detailed and
generous proposal that you have made in your letter of today.
We would all like to see an acceptable site chosen as quickly as
possible; Mr. Fenn suggests that August 31st should be the deadline for
settling on either the West Harbour or the new East Mountain site.
Certainly, that deadline would provide ample time to meet the
requirements of building a new stadium in time for the 2015 Pan Am
Games. In any case, Council will follow the appropriate process and
make its views known during the meeting tomorrow.
From our past discussions, I know that you and the Tiger-Cats share our
city’s commitment to its responsibilities to choose a site that is
fiscally responsible, that will leave a worthy legacy for the
community, will contribute to our “city building” initiatives, and
that, whichever site is decided upon, the City should move forward with
the revitalization of its downtown core and waterfront precinct.
Yours truly,
Fred Eisenberger
Mayor
Thoughts?
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