City Council rejects privatizing GFL Memorial Gardens management

EDITOR'S NOTE: An earlier version of this story stated that last year's losses at the former Essar Centre totalled $141,096. The city has clarified that last year's losses actually totalled $730,104

Sault Ste. Marie City Council agreed Monday to continue operating GFL Memorial Gardens with city staff, rejecting a proposal to consider hiring a private management firm.

"Privatizing the management of the facility may result in better financial results, but may be at the detriment of pricing to the end user, in terms of ice rental rates, food and beverage pricing as well as ticket sales," said Brent Lamming, the city's director of community services, in a report to council.

Ward 2 Councillors Susan Myers and Sandra Hollingsworth had asked that privatizing be considered to cut losses at the former Essar Centre, which totalled $730,104 last year and were budgeted at $612,358 in 2018.

But after Soo Greyhounds' deep playoff run this past season and strong food and beverage sales, the downtown sports and entertainment venue is currently running a $107,497 surplus, Lamming said.

Under questioning from Ward 3 Coun. Matthew Shoemaker, Shelley Schell, the city's treasurer and chief financial officer, said the venue will still have a significant deficit this year, but it will be $107,497 less than budgeted.

Councillor Myers said that a private-sector agency should be retained to market the Gardens.

"You don't have to hand over the keys and have it privatized," Myers said. "But you've got to get marketing experts in there to do something to fill this place. It's unacceptable that there's so many dark days."

"And truthfully, if I was going to be here and going forward, I'd say, you know what - if we can't do that, then we we need to shut it down for the parts of the year when it's so dark. Because it's costing us money to be there every day," she said.

Mayor Christian Provenzano said GFL Memorial Gardens needs to perform better.

Council needs to determine over the next year the degree to which it's willing to subsidize the venue.

City staff should take a message from this discussion that improved fiscal performance is expected, the mayor said.

Here's how your councillors voted on having city staff continue to manage and operate the venue:

Ward 1 Councillor Steve Butland - for
Ward 1 Councillor Paul Christian - for
Ward 2 Councillor Susan Myers - for
Ward 2 Councillor Sandra Hollingsworth - against
Ward 3 Councillor Judy Hupponen - for
Ward 3 Councillor Matthew Shoemaker - against
Ward 4 Councillor Rick Niro - for
Ward 4 Councillor Lou Turco - for
Ward 5 Councillor Marchy Bruni - for
Ward 5 Councillor Frank Fata - against
Ward 6 Councillor Joe Krmpotich - absent
Ward 6 Councillor Ozzie Grandinetti - for
Mayor Christian Provenzano - for