Sen. Harding on XL Center: “CT Republicans are once again demanding transparency.”
July 25, 2024CT AG Tong declines to take up GOP concerns over $145M XL Center renovation; clears way for CRDA vote
By Michael Puffer
Hartford Business Journal
Connecticut Attorney General William Tong has declined to press concerns raised by Republican legislative leaders about a public-private partnership looking to move forward with a $145 million renovation of Hartford’s downtown XL Center arena.
That raises the likelihood the renovation plan will move forward.
The Capital Region Development Authority last week postponed a vote on the XL Center renovation, after GOP legislative leaders questioned the involvement of an entertainment group tied up in a separate state lawsuit.
The CRDA has a tentative agreement with Los Angeles-based live entertainment promoter and venue manager OVG360 to contribute $20 million toward the pending renovation.
In return, OVG, which is under contract to manage the XL Center for another year, would get its contract extended 20 years from the completion of the upgrades to Hartford’s roughly 16,000-seat sports and entertainment arena.
As part of the agreement, OVG would also keep the first $4 million in annual XL Center profits. Additional profits would be split with CRDA for upkeep of the venue.
State House Republican Leader Vincent Candelora and Senate GOP Leader Stephen Harding, last week, sent a letter to Tong questioning the deal, noting the state has joined a U.S. Department of Justice antitrust lawsuit against Live Nation and Ticketmaster, the latter of which has a close relationship with OVG.
Stressing the state’s hefty, proposed investment, the Republicans leaders requested Tong to publicly share any concerns he might harbor about OVG, prior to needed votes by the CRDA and state Bond Commission.
Tong, on Monday, responded with a letter saying his office has no role in reviewing the tentative agreement between the CRDA and OVG. But, Tong also stated he plans to recuse himself from any vote on the matter before the bond commission.
The attorney general is one of 10 members on the state Bond Commission.
“Vibrant, economically strong cities are essential to our state’s long-term prosperity,” Tong wrote in his letter. “The future of the XL Center is indeed a key component to the economy of Hartford.”
CRDA Executive Director Michael Freimuth, on Tuesday, described Tong’s response as “important news,” and noted a CRDA vote on the deal has been tentatively scheduled for Tuesday, July 30. That will depend on clearing some “final issues” in ongoing discussions with OVG, Freimuth said.
CRDA has requested a Bond Commission meeting to approve the funding in early August.
In a statement Wednesday, Harding said Republicans appreciate Tong’s attention and recusal from the pending vote at the Bond Commission, but that the party continues to demand full disclosure if the deal moves forward.
Harding also said Republicans understand the need to “do something” with the XL Center and its importance to the economic future of Hartford.
“However, the Connecticut Republicans are once again demanding transparency in our state government,” reads a portion of Harding’s statement. “This deal literally involves tens of millions of dollars of the state taxpayers’ money. The State of Connecticut is on the verge of entering into a multi-million, multi-decades-long contract which binds UConn and involves an entity that is currently being investigated by the federal Department of Justice for anti-competitive behavior. This should raise a big red flag for all political parties and for all who want to see the XL Center, downtown Hartford and UConn sports thrive.”
Efforts to revitalize Hartford’s XL Center received a boost in May after the state legislature’s passage of a $370 million budget stabilization plan.
The bill increased the maximum amount of state funding toward the renovation from $80 million to $125 million.
The bond commission had earlier signed off on an $80 million contribution, contingent on OVG contributing $20 million.
The potential $45 million increase in funding came just weeks after bids for CRDA’s XL Center renovation plan came in nearly $40 million over the anticipated $107 million budget.
