Copps Coliseum isn't getting a power ring after all.
Earlier this week, councillors discussed spending $800,000 to put an LED-lit ring 360 degrees around Copps Coliseum. The ring would be located between the first and second tiers of the arena and include advertising.
Coun. Sam Merulla made the motion on behalf of city staff who are involved in transitioning the management of Copps to Global Spectrum. But after seeing the numbers, Merulla pulled his motion on Thursday.
"This initiative has, in my opinion, been deemed not in the best interest of the city of Hamilton and I'm withdrawing my motion accordingly," he said in an email.
A revised estimate shows the power ring would have cost the city about $650,000. About $350,000 would have come from a working reserve fund to be repaid from a Copps-related fund. The rest would have come from existing pots of city money related to the coliseum.
A staff report shows that the ring could generate about $350,000 in new sponsorship and advertising revenues related to hockey alone in 2013/14, and $500,000 in 2015. Non-hockey events could generate as much as $70,000.
Under an agreement with Global Spectrum, the company receives one quarter of all incremental sponsorship and advertising revenues.
Also under the agreement, Global Spectrum receives the first $450,000 in profits brought in by Copps Coliseum, while the city receives 70 per cent any subsequent profits.