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Sports centre requests $1-million line of credit

Council will debate $1-million, interest free line of credit to assist Spray Lake Sawmills Recreation Parks Society
sports-centre

Council will debate a request from the Spray Lake Sawmills Recreation Parks Society (SLSRPS) for a $1-million, interest free line of credit to assist with emergent capital and programming issues at both Spray Lake Sawmills Family Sports Centre (SLSFSC) and the Cochrane Arena.

Hank Biesbroek, president of SLSRPS, said the request became necessary as the sports centre works to adjust to the added complexity of its operations since the pool expansion was completed in 2017.

With the expansion, the sports centre became one of the largest such facilities in the region at 350,000 square feet and the new operations required more than 140 additional staff – triple the previous complement.

"The last expansion was the only one not initiated by the society and, as a result, I believe we were less prepared for the impact on every facet of our operation," said Biesbroek.

The changing complexity of the sports centre's operations, which sees approximately 500,000 users annually, has meant, for the first time, the facility has been operating at a deficit going from 100 per cent cost recovery to 80 per cent. Although that is in line with facilities such as Servus Place in St. Albert, which operates at 85 per cent cost recovery, Biesbroek said the board is aiming to bring cost recovery up to 90 per cent in three years.

The changes resulted in a complete change in facility management and the hiring of a new CEO. The latter happened twice as the first hire fell ill.

Another step in that process is developing a 10-year capital replacement plan to help inform future budgeting and avoid any costly surprises for expensive equipment replacements that come with maintaining arenas, curling rinks and pools.

Biesbroek said the board, which operates its facilities with a combination of business and user fee revenues plus an annual contribution from both Rocky View County and the Town of Cochrane, has always strived to avoid asking its owners for additional funds, but decided the line of credit would allow it to address emergent needs more quickly and easily.

Blair Felesky, the new CEO of SLSFSC, said his goal is to work the sports centre back toward self-sufficiency and part of its strategy is seeing the facility as more than just a recreation centre, but also a community builder.

"The tag line is the community that plays together stays together. This will form the baseline of our upcoming campaign," he said.

Felesky added the line of credit will help the facility become more nimble in its ability to respond to issues that crop up that are outside the annual budget.

Despite the reduced financial success of the sports centre, Felesky said there has been plenty to celebrate, including increased usership and registration in programs.

Council voiced its support of the request with all councillors expressing gratitude for the work the volunteer board has done over the years.

Coun. Morgan Nagel expressed some hesitation over the amount of the line of credit and wondered if it could be reduced to start.

Biesbroek said while the board isn't certain how much it will need to use from the line of credit in any given year, equipment replacements are costly and the goal is to avoid continuously coming to council looking for additional funds.

Council approved the request to add the $1-million line of credit to its upcoming budget deliberations.

 

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