Recommendations made to reduce ENMAX Centre’s reliance on tax dollars

“It would take a sequence of events, so it wouldn’t happen in one year, but over the course of two-to-three years.”

The recommendations to council fall under four main categories: revenue generation, re-focusing management and operations, parking revenue, and governance.

City Council has made no formal decisions on any of the recommendations at this time. These will likely come back for votes at future meetings.

Parking:

Gallucci admits that charging for parking will likely be the most contentious change but one he thinks will make a big impact.

“We believe at $5 a vehicle, we can reduce the tax support by almost $340,000 to $350,000, which is significant.”

Between this, there would be paid parking for when events are being held as well as continuing to offer ongoing parking passes for people like students of Lethbridge College.

The G.M. adds that, since most other arenas charge for parking, this should not prove to be such a big obstacle for the public that they would refuse to come to their events. The Scotiabank Saddledome in Calgary typically charges $15 for event parking.

There are 1,620 parking stalls at the ENMAX Centre, although some spaces are reserved for staff and players.

Revenue Generation:

One way Gallucci hopes to bring in more revenue is by increasing the number of events from an average of 28 per year to 51 with a greater focus on variety.

This is in addition to hosting another 40 banquets, meetings, and catering affairs.

He wants to work with the Lethbridge Hurricanes to increase attendance by 10 per cent.

Ticket fees are recommended to rise by 10 per cent as well.

Concession goods could become more expensive, but no estimate was provided for just how much that would be and for what items.

Governance:

As part of KPMG’s report, they compared the ENMAX Centre to 17 other facilities in mid-sized communities.

The investigators found that there are four different models of ownership and management.

One has the municipality owning and operating it, as is currently the case for the ENMAX Centre. Otherwise, the city can own the facility but have it run by a board or by a private firm, or have a private company own and operate it.

Gallucci says all four models have their pros and cons, but he looks at the city ownership and management structure as best allowing the arena to be a “community builder.”

This model also allows for greater control and assurance that maintenance can be done to a high standard. Gallucci claims some private firms tend to put maintenance on the back burner since it is not very profitable.

Sakamoto called boards an “inefficient method of managing venues in the event and entertainment industry. I would not recommend it.”

Re-focus Management and Operations:

The main difference the authors of the report have recommended here is to focus more heavily on being for-profit.

“We used to do things sometimes that was good for the community,” says Gallucci. “In this case, we might say, is it good for the community and is it profitable?”

He also wants to see more of the ENMAX Centre’s revenues go towards paying off the debenture debt.

Currently, $2.8-million is still owing, which will take about six years to pay off. The recommendation is to have that balance paid in full over the next 1.5 years to reduce the amount of interest required.

KPMG recommended creating a Revenue Stabilization Fund, which would be a reserve fund that would help to balance the books during times where business is down.

More information on Monday’s presentation to council here.

by David Opinko

Recommendations made to reduce ENMAX Centre’s reliance on tax dollars

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