Hartford’s XL Center closer to major renovation than in last decade. Here’s why.
Connecticut combination of public and private funds would finance a makeover aimed at the long-term competitive survival of Hartford downtown's 48-year-old sports and entertainment venue.
HARTFORD — Hartford’s aging XL Center arena is now closer to a major renovation than it has been in a decade, after state lawmakers backed a plan that would allow at least $20 million in private investment for the $107 million project.
The legislation, approved as part of the $51.1 billion state budget for the next two fiscal years, also includes another $15 million in public funding for a total of $80 million. The state approved $65 million in funds three years ago that would come from the proceeds of the sale of state bonds.
The combination of public and private funds would finance a makeover aimed at the long-term competitive survival of downtown’s 48-year-old sports and entertainment venue. The renovation’s cost and scope has been hotly debated since the early 2010s.
Gov. Ned Lamont is expected to sign the legislation, passed by both the House and Senate this week. Lamont has supported a significant renovation to the XL Center but only with private investment to ease the burden on state taxpayers who would pick up the largest portion of the tab.
There are still significant hurdles to clear before renovations — concentrated on adding amenities to the lower half of the arena and ramping up technology — would begin, probably later this year.
The quasi-public Capital Region Development Authority, which oversees the 16,000-seat arena’s operations, must still negotiate the precise amount of private investment from Los Angeles-based Oak View Group. OVG handles day-to-day operations at the XL Center and has expressed strong interest in investing for more than year. A long-term operating agreement also must be hammered out.
At the same time, CRDA is determining this summer if the actual cost is close to the $107 million estimate cost of the makeover. If the price tag is significantly out of line and can’t be downsized in an acceptable way to the state or OVG, it may mean the venue is consigned to a “band-aid” approach to repairs as has been the case in recent years, without a major one-time investment from either the state or OVG, CRDA has said.
The legislation also requires approval from the city, which technically owns the arena but is leased and operated by the state through CRDA.
Michael W. Freimuth, CRDA’s executive director, said Wednesday it appears a major renovation, long sought by CRDA and Hartford Mayor Luke Bronin, is now within reach.
“After 9-10 years of trying, I might have caught the proverbial bumper,” Freimuth said, in a text. CRDA has “been trying to get agreements and funding commitments, and its been a lot of tries, meetings etc. Now, it’s time to perform.”
Freimuth said there are still more, critical pieces that need to fall into place, including designing the renovations, also now underway.
“The work is going to be intense and time compressed,” Freimuth said.
If all components fall into place, it will be essential to begin the renovations by the end of year to meet future revenue projections expected by OVG, Freimuth said. The makeover is expected to stretch out over two years to work around the hockey and basketball seasons.
The legislation calls for OVG to absorb any annual net losses at the arena, but it would keep the first $4 million in net profits. Above $4 million, net profits would be split between OVG and CRDA.
Attracting more concerts
The arena has been a money-loser most years, typically $2 million, but higher during the pandemic, closer to $3-$4 million.
The renovations are aimed at making the XL Center more competitive with new arenas for events; help the venue turn a profit and carry it through another two decades. Plans would target the addition of premium seating that command higher ticket prices and new amenities, plus upgrades to the concourse and building systems.
The premium seating — include “loge” seating off the concourse, club space under the stands and “bunker suites” at event level — plus upgraded concessions are all intended to increase the arena’s revenue.
Technology also would be a priority, partly to better accommodate heavy social media posting and texting during events.
OVG has a depth of experience in repositioning sports and entertainment venues. The organization manages 300 sports and entertainment venues globally and redevelops others.
OVG’s investment is tied strongly to attracting more concerts to the XL Center, events that are large money makers for modern arenas. But to draw more big-name concert bookings, renovations also will have to include relocation of the stage to increase the number of seats that have a unobstructed view of performers; build the overhead structure needed for modern light shows; and retrofit a loading dock at back of the arena to move shows in and out more quickly.
If OVG agrees to invest, the organization would significantly expand its operating of the arena, including negotiating contracts with major tenants such as the University of Connecticut and paying for majority of repairs to the building, excluding major big-ticket improvements.
The renovation now under consideration has been dramatically downsized from an initial $250 million, top-to-bottom makeover, which failed to gain traction for funding in the legislature.
Kenneth R. Gosselin can be reached at kgosselin@courant.com.