COCHRANE— After a fierce debate Cochrane Town Council voted 4-3 to provide up to $1.5 million to the Spray Lake Sawmills Family Sports Centre to help the complex weather the COVID-19 storm.
Council also approved an additional $165,000 for emergent capital requirements at their meeting on Thursday (May 28).
Council was split down the middle with Councilors Alex Reed, Susan Flowers and Morgan Nagel supporting the funding and Councilors Marni Fedeyko, Tara McFadden and Patrick Wilson opposing the funding.
Mayor Jeff Genung served as the tie-breaking vote in support of the funding.
Accountability for funds was the divisive issue for councillors, and questions were raised regarding operation funding at the sports centre.
It will cost $250,000 per month to keep the facility running for six months based on the $1.5 million, said Genung.
“I really feel that this comes down to trust,” Genung said. “I’m very concerned and disappointed in the potential message we are sending to our volunteer board… Under arguably the most severe circumstances we are choosing to question their abilities and confidence and I feel that is so unfair.”
When the pandemic comes to an end council can enter into a conversation to discuss financials and operations models with the Spray Lake Sawmills Family Sports Centre board, he said.
A focus needs to be placed on positioning the community to recover a $100 million asset that is a community hub and this is the cost of providing a benefit to the community, Genung said, adding that having the centre sit idle is a waste of resources.
The facility needs to be open as soon as it is allowed, he said, and this will be expected by residents. Genung added there is a chance it could be allowed to open earlier than expected.
“Let’s provide an opportunity to enhance the well-being of our community,” Genung said.
The request for funding was approved by council on the condition the centre uses a combination of cost savings from reducing staffing and other budgeted costs while drawing from operating reserves to fund the shortfall.
During the meeting, Coun. Alex Reed noted the critical place Spray Lake Sawmills Family Sports Centre holds in the community inspiring residents while enhancing their spiritual, physical and emotional well-being.
“It’s way more than a sports facility,” Reed said, noting the special events and markets that are held at the centre. “Spray Lake is an incredible asset in our community and if ever there was a time we needed it, it’s now.”
In 2019 the centre had more than 600,000 visitors and 64,000 paid members. The facility has about $100 million in assets.
In September 2019 The Cochrane Eagle reported the sports centre’s Spray Lake Sawmills Recreation Parks Society requested a $1-million interest-free line of credit. Council voted to amend the $1-million request by the Spray Lake Sawmills Family Recreation Park Society to $500,000.
The money was intended to assist with emergent capital and programming issues at both Spray Lake Sawmills Family Sports Centre and the Cochrane Arena.
The funds were needed society president Hank Biesbroek said, because the pool expansion completed in 2017 made operations at the facility more complex.
The expansion resulted in the facility operating at a deficit going from 100 per cent cost recovery to 80 per cent.
In 2018 the rec centre ran at an approximately $1.2 million shortfall.
Coun. Tara McFadden said a balance needs to be struck between the cost of supporting the centre and the need to support the physical well-being of residents.
“It’s more than just a bricks and mortar facility it means a lot to our community and I think it’ something we’re all really proud of,” McFadden said. “I appreciate the board and the work and the facility there’s so many wins out of there. But I need some clarity on how this can be done and managed when we talk about the costs and how we can carry that forward.”
Spray Lake Sawmills Family Sports Centre will keep council informed on the ongoing financial impacts it is experiencing due to COVID-19 using written monthly financial updates for the remainder of 2020. Other steps will include finding efficiencies and accessing specified operating reserves. Any amounts taken from the operating reserves will be required to be replaced over the next four years at 1.5 per cent interest.
A breakdown of detailed monthly expenses was not made available during the meeting.
Cochranites will see a $1.72/month tax increase in 2021 on the average residential property to replace money removed from the reserve to support the Spray Lake Sawmills Family Sports Centre.
“I need to be able to tell residents that adding to your tax-burden is worth it,” McFadden said.
The estimate behind the funds needed for the centre is based on the recreation facility being allowed to re-open on September 1 at 50 per cent capacity as parts of the Alberta Economic Relaunch. This would be followed by a phased reopening of other areas in December.
McFadden noted that it is challenging to make concrete plans because the reality of COVID-19 is changing day-to-day.
“To plan to be open and to be recuperating income in September and later, we just can’t count on any of that,” McFadden said.
Coun. Marni Fedeyko echoed McFadden’s sentiments and stood in opposition to the additional funds for the centre.
“This is my challenge with this one the ask is big and it’s likely not going to be the last one for this year,” Fedeyko said, explaining that she did not support the full request of $1.5 million and increase the tax burden on residents.
It is a difficult choice she said because the full economic and social impact of COVID-19 on the community is not yet fully known.
“I’d like us to claw back as much as we can,” Fedeyko said. “Now is the time to be prudent and exercise extreme caution when it comes to providing funding without asking hard questions— Now is the time to sit tight and wait to see that much clearer picture of the fallout from COVID-19.”
The full financial impact of COVID-19 on the Spray Lake Family Sports Centre will not be known until early 2021.
Spray Lake Sawmills Family Sports Centre, chief executive officer, Blair Felesky said the funding problems at the facility have been amplified by COVID-19 public health measures. The centre has already laid off more than 175 people and reduced the running of the facility to the bare bones.
At this time it would not be possible to run the facility at a cheaper rate and have it ready to re-open when public health measures are lifted, he said.
Felesky added that based on comments from Premier Jason Kenney there is the possibility the recreation centre may be able to open in a phased approach sooner than September. He added that the cash flow at the centre will be based on when they can begin reopening and if a second wave of the virus is seen.
“We’re hopeful that we can get started sooner rather than later,” Felesky said.
On March 15 the sports centre went into emergency conditions and closed, and on March 19 they laid-off about 90 per cent of their team.
Coun. Morgan Nagel said he fully supported the funding to the facility because he wants the Town to do everything possible to help Cochrane return to a normal state when the COVID-19 pandemic passes.
Supporting the recreation centre serves as a chance to send a message to the community that it is time to begin the recovery stage and begin reopening, Nagel said.
The longer they wait to begin reopening the more difficult it will be, he added.
“It’s was never even COVID itself that has caused all of this economic pain it has been governments shutting down the entire economy. It hasn’t been because hundreds of people have died it’s because the governments decided nobody is allowed to go outside and nobody is allowed to work,” Nagel said. “We need to be brave, we need to be optimistic and we need to turn absolutely everything back on.”
