The Hamilton City Council announced it will move forward with a development plan produced by the Hamilton Urban Precinct Entertainment Group, which saw off competition from rival bidder Vrancor Group.

The Precinct Group is led by PJ Mercanti, who is among the volunteer group spearheading Hamilton’s bid for the 2026 Commonwealth Games.

It is claimed the Precinct Group’s plan will deliver entertainment, culture, and renewed vitality to the downtown area of the city.

The Hamilton City Council said the next steps of the negotiations will see the development of a master agreement, which is expected to be finalised this autumn.

Renovations on venues are earmarked to begin next autumn.

"The Precinct Group’s proposed revitalisation plan lays the foundation for a world-class entertainment precinct, right in the heart of downtown Hamilton, that will drive additional tourism and serve as a premier sports, entertainment, and cultural centre for all Hamiltonians," said Fred Eisenberger, City of Hamilton Mayor.

"On behalf of the Council, I would like to thank the Precinct Group, Vrancor, and all other private sector entities that participated in this process."

The Council said the plans will see the Precinct Group take over responsibility for the operations and maintenance of the FirstOntario Centre and the FirstOntario Concert Hall for a period of 99 years, as well as taking over the Hamilton Convention Centre indefinitely.

The agreement would not require any monetary contribution from the city, with a 2019 Ernst and Young study suggesting the removal of their ongoing subsidy and capital commitments would save Hamilton taxpayers CAD155 million (£90 million/$114 million/€100 million) over the next 30 years.

The city’s contribution to this initiative involves city-owned lands in the downtown core and deferrals of a portion of any additional property taxes resulting from the new developments, the Council said.

Precinct Group are reportedly set to undertake a CAD50 million (£29 million/$36 million/€32 million) renovation of FirstOntario Centre, the 19,000-capacity ice hockey and concert venue.

The renovation will reportedly include a new building exterior, comprehensive transformation of the lower bowl, expanded concourse level, and a new flexible and attractive curtaining system for the upper bowl balcony.

Fans would have access to a microbrewery, suites, and hospitality clubs after the renovation, along with year-round access to the experience through street-level hospitality activations on York Boulevard and Bay Street.

It is claimed the management of the renovated venue will pursue global partnerships to supply top touring artists and live events in the facility, while the Hamilton Bulldogs ice hockey team will be the anchor tenant at the venue.

The plan will also include CAD16 million (£9 million/$11 million/€10 million) in upgrades to the existing Hamilton Convention Centre, FirstOntario Concert Hall, and Art Gallery of Hamilton.

An estimated CAD340.5 million (£198 million/$251 million/€219 million) mixed-use development, including affordable housing, will be part of any residential developments that stem from this initiative, it is claimed.

"The transformed arena will be a destination for sports fans, music lovers, and families, creating a first-class guest experience in the urban heart of the Greater Hamilton area," Mercanti said.

"We also look forward to working with the Hamilton Bulldogs to ensure they have a modernised facility to call home for years to come.

"While our Precinct Group is proud to have been recommended in this process, we want to extend our thanks and appreciation to our competitor.

"Both proponents have demonstrated a significant commitment to the urban core, and we look forward to working with the Vrancor Group in helping urban Hamilton reach its ultimate potential."

Hamilton 2026 welcomed the news on Twitter, adding: "A $400-million-plus renovation of Hamilton's downtown arts and entertainment district will transform the city core.

"All capital costs paid for by private sector.

"Ready in time for the 2026 Commonwealth Games."

Hamilton was planning a bid for the 2030 Commonwealth Games which would have marked 100 years since it hosted the first edition of the event in 1930, under its previous guise of the British Empire Games.

However, following encouragement from the Commonwealth Games Federation (CGF), it has switched its focus to bidding for the 2026 edition.

Under the city's 2026 financial proposal it would cost an estimated CAD1 billion (£583 million/$738 million/€645 million) to stage the Games, compared to the projected price tag of CAD1.5 billion (£875 million/$1.10 billion/€968 million) to stage the event in 2030.

Earlier this month, the CGF sent a letter to the Hamilton 2026 Commonwealth Games Bid Corporation saying it had until September 2020 to secure support from Hamilton City Council and the provincial and federal Governments to develop a robust Candidate City Proposal.

Financial investment required in hosting a major event in the wake of the coronavirus pandemic has concerned some members of Hamilton's General Issues Committee (GIC).