The Capital Region Development Authority (CRDA) in Hartford is "exploring options for attracting private investment to lower the cost to taxpayers" for a proposed $250M makeover of the XL Center, according to Kenneth Gosselin of the HARTFORD COURANT. But there are "hurdles right at the outset." A state statute allowing such a public-private partnership expired last year and "must be revived." The CRDA must "balance the desire to cut costs for the state with how much control over the project it is willing to give up to investors." The largest question is "whether investors see an attractive return for a renovated XL Center, considered crucial, by its supporters, for building vibrancy in the downtown area." Now, the XL Center loses about $2M a year, an amount "subsidized by the state." The CRDA "estimates that the arena will reap" about $2M a year after renovations. However, CRDA Exec Dir Michael Freimuth said that "does not include all the taxes, including sales and parking, that are produced by the arena's operations." The CRDA sees the renovations as "critical to the long-term survival of a 40-year-old arena that is well past its prime." The arena still has its "marquee tenants," including the UConn men's and women's basketball teams, UConn men's ice hockey and AHL Hartford Wolf Pack. But the venue has "lost concert business to the state's casinos and will find more competition for events" when MGM opens its $950M casino and entertainment complex in Springfield next year (HARTFORD COURANT, 5/8).
