$145 million renovation of CT arena hits snag on eve of critical votes. Here’s why.

A $145 million renovation of downtown Hartford’s aging XL Center arena hit a worrisome snag on the eve of critical votes on the long-delayed project, tied to the ticketing company that provides services to the venue and its involvement in federal antitrust litigation.

Ticketmaster, which serves the sports and entertainment complex, is an affiliate of Live Nation Entertainment Inc. Live Nation, along with Ticketmaster , was sued by the U.S. Justice Department and 30 states, including Connecticut, for a monopoly that thwarts competition in markets across the live entertainment industry. The civil lawsuit, filed in May, seeks to lower prices for fans and open more venues to working musicians and other performance artists.

Ticketmaster also has close ties to Los Angeles-based Oak View Group , which now manages the XL Center arena day-to-day, and is crucial to the renovation moving ahead. A tentative agreement with OVG would provide $20 million for the renovation and take a larger role managing the venue and booking events, particularly concerts.

The balance of the $145 million would come from $125 million in public funding.

On Monday, Republican leaders in the state legislature raised concerns about the civil lawsuit against Live Nation and Ticketmaster in a letter to Attorney General William Tong .

They pointed to a recent New York Times article that also highlighted the connections between OVG, Live Nation and Ticketmaster raised in the litigation. They also noted that Tong had raised concerns about allegations that OVG had been a partner with Ticketmaster in reducing competition.

The letter, signed by Rep. Vincent Candelora and Sen. Stephen Harding , noted that Tong was pursuing the antitrust litigation and, at the same time, being asked to sign the OVG agreement for the XL Center project.

“Considering your ongoing litigation and its allegations of collusion, how do you reconcile approval of an allotment of tens of millions of dollars to OVG?” Candelora and Harding wrote in their letter to Tong. “We also request that any information or concerns that you have about OVG’s uncompetitive behavior be made public prior to the action being taken by the Capital Region Development Authority or the State Bond Commission on this agreement.”

In a statement, a Tong spokeswoman said, ““We are reviewing the proposal and will reserve further comment at this time.”

CRDA’s venue committee was set Tuesday to vote on the scope of the renovations, the OVG agreement and using certain CRDA funds for the project. The quasi-public agency oversees the operation of the arena.

The venue committee’s meeting was postponed until at least next week and it wasn’t clear when the full CRDA board, which must also back the project and its financing, would meet.

Tong also sits on the State Bond Commission, which must approve spending the $125 million in public funding. A date for the commission meeting has not been set, but had been expected in early August.

In a statement, CRDA board chairman David Robinson said: “Out of deference to Rep. Candelora’s inquiry, but also since the issue that has been on the table with members of the CRDA board, we have postponed the vote for a few days to give the various parties more time to comment and advise CRDA.”

Michael W. Freimuth, CRDA’s executive director, said the connection between OVG and Ticketmaster had been discussed previously by the CRDA board members, with some concerns mirroring the legislature’s GOP.

Freimuth said OVG’s contract with Ticketmaster at the XL Center expires in a year. Part of the tentative agreement with OVG requires new bids then be sought for the arena’s ticketing service. The tentative agreement also gives CRDA veto power over the ticketing service that is selected by OVG, Freimuth said.

A lengthy delay would be a major setback to the project because the current bids for the work expire in September. The project, debated and downsized over the last decade, needs to work around the busy fall and spring seasons at the arena.

The renovations are promoted as boosting the arena’s attractiveness for concert bookings and making it profitable, reversing a money-losing track record that has long required a state subsidy of about $2 million a year.

The arena makeover project – downsized from $250 million in 2018 after there was no appetite for that price tag – now focuses on premium, higher-priced seating; a relocated, fully-outfitted concert stage and crucial IT upgrades.

Gov. Ned Lamont has supported a renovation of the XL Center arena, which opened as the Veterans Memorial Coliseum in the Hartford Civic Center in 1975. But Lamont insisted upon a component of private investment.

OVG has a depth of experience in repositioning sports and entertainment venues. The organization manages 300 sports and entertainment venues globally and redevelops others.

If the deal comes together, OVG would significantly expand its operation of the arena, including negotiating contracts with major tenants such as the University of Connecticut and paying for the majority of repairs to the building, excluding major big-ticket improvements.

The agreement with OVG calls for absorbing any annual net losses at the arena, but OVG would keep the first $4 million in net profits. Above $4 million, net profits would be split between OVG and CRDA.

This story was updated at 3:12 p.m. with new details throughout.

Kenneth R. Gosselin can be reached at kgosselin@courant.com .