Can we afford to have the Essar Centre lose $627,000 this year?

Sault Ste. Marie's premier sports and entertainment venue has been bleeding an average of $438,000 a year over the past five years.

Two city councillors want to look at turning the place over to a private management company.

The following resolution about the Essar Centre has been placed on the agenda of Monday's City Couincil meeting by Ward 2 councillors Susan Myers and Sandra Hollingsworth

Monday's meeting will be livestreamed on SooToday starting at 4:30 p.m.

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Essar Centre private management

Mover: Councillor Susan Myers
Seconder: Councillor Sandra Hollingsworth

Whereas the city's premiere event venue Essar Centre opened in the fall of 2006; and

Whereas the facility has been owned, operated and managed by the City of Sault Ste. Marie from the beginning; and

Whereas there is an option for the city to consider contracting with a private management company; and

Whereas City Council has not had a report outlining the advantages and disadvantages of private management vs. city management of the Essar Centre; and

Whereas the last five years' average loss for the Essar Centre is $437,585.76 and is budgeted to be $626,890.41 in 2018; and

Whereas the City of Kingston has contracted with a private management company for running the 10-year-old and 6,700-seat Rogers K-Rock Centre; and

Whereas Kingston City Council did enter into a new five-year contract last year whereby the city is guaranteed 100 per cent of the first $550,000 of profit; and

Whereas Sault Ste. Marie City Council must have detailed information in order to ascertain any opportunity to seek private management of the Essar Centre and stem the flow of loss,

Now therefore be it resolved that staff be requested to report back to City Council by August 2018 providing the following:

• examples of other similar-sized municipalities with a similar facility being operated privately
• what process and timeline would be required for City Council to consider the option of private management of the Essar Centre

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