Yorkton Council has turned down a request by the Yorkton Terriers Junior Hockey Booster Club to waive ice rental fees and other costs to help the Club deal with mounting debt.
The Club had made the request of the City at the June 22 meeting of Council.
At the June meeting club president Corvyn Neufeld appeared before the regular meeting of Yorkton Council asking for a three-pronged relief package for the club;
* Forgiveness for office rental fees for the period of time the Gallagher Centre has and will be closed to the public. Assuming re-opening on September 1, 2020 this would equate to $2337.93.
* Forgiveness of ice rental fees for the 2019-2020 hockey season equal to $31,402.88.
* Forgiveness of annual advertising fee of $10,000
The total requested financial support equals $43,740.81.
Neufeld said the club entered the 2019-20 season some $60,000 in the red, but with a plan to address the debt. Then COVID-19 hit just as the Saskatchewan Junior Hockey League playoffs were getting under way, and the plan was off the rails.
鈥淲e were making good progress on this plan and were on track to see improved financial performance, when COVID-19 hit. Unfortunately, while year-end financials will not be completed for another month, our accumulated deficit at the end of this season will be larger than it was at the start of the season (likely in excess of $80,000),鈥� noted the letter circulated to Council from the club in June.
However, Darcy McLeod, Director Community Development, Parks & Recreation with the City told Council the Terriers are not the only group using City facilities facing financial concerns due to COVID-19.聽 He noted at the Gallagher Centre alone users included the Yorkton Curling Club, Yorkton Secon Maulers, Skate Yorkton as well as the Terriers.
That said McLeod did acknowledge 鈥淒ue to the COVID-19 pandemic, all recreation facilities in Yorkton were closed for an undetermined time frame, effective March 17, 2020. While the buildings were closed to the public, administrative and tenant offices within these facilities were permitted to operate under COVID-19 regulations and by appointment only. With the exception of the Yorkton Curling Club (whose space was requested by Public Health for testing and assessments), and Functional Rehabilitation and the Godfrey Dean Art Gallery (who were closed as per provincial regulations) no other tenants were required to vacate their office space. Some tenants did voluntarily close their offices, while other maintained regular or reduced office hours, or made periodical visits to their spaces.鈥�
Looking more closely at the Terrier request McLeod said the City does pay some fees to the Club.
鈥淎s per the operating agreement between the City of Yorkton and the Yorkton Terriers, the City is required to pay a commission for all food and beverage sold from the Gallagher Centre Sports Lounge and the Back 40 bar located in the arena, during Yorkton Terrier games. For the 2019-2020 season this amounts to a payment of $4,422.12. This payment has not been provided pending the decision regarding the Yorkton Terriers鈥� request,鈥� said McLeod.
As for the fees in the Terrier request, most were for pre-COVID-19 closures.
鈥淎ll of the Terriers ice usage, for which they were invoiced, occurred before the closure of facilities. Ticket sales, game-day revenues including sponsorship revenues likely were collected related to this usage. The same is true for other ice users, who collect registrations and other revenue including game day revenue, to pay for their facility rentals and ice usage. COVID-19 has had impact on the financials for a number of organizations, including the City of Yorkton. Administration has not received any other requests from other tenants or organizations to waive, or reduce rental fees for pre-Covid-19 usage, or for any lease payments since the pandemic hit,鈥� said McLeod.
鈥淭he announcement to close recreation facilities across the province was made at the same time as the Terriers were starting the 2019-2020 playoff series. The Yorkton Terriers were able to complete the regular season and host two playoff games within the Gallagher Centre prior to facilities being closed and the Saskatchewan Junior Hockey League foregoing the rest of the 2019-2020 hockey season. While public visits to the Terriers鈥� office and shop were slowed due to the pandemic, Yorkton Terrier Administration and Board of Directors continued to utilize the office on a semi-regular basis since the closure in March. This work included regular administrative duties, call centre for the annual Terrier Lotto, and holding the lotto draw and announcing the winners. The addition of a new marketing director for the organization also continues to utilize the office.
Additional clarification on one point made in the Yorkton Terriers鈥� presentation is required. Their submitted letter states: 鈥淚t should be noted, that in the event the team can no longer operate and is required to dissolve and/or liquidate, all assets and liabilities of the club are assigned to the City of Yorkton.鈥� Administration does not have any supporting documentation or agreements to satisfy this statement. While some sports teams operate under a 鈥渃ommunity funded model鈥�, where the city or town would be responsible for the assets and liabilities in these cases, our understanding of the Yorkton Terriers鈥� founding agreement is that the City would only be responsible for the liabilities owed to the City, such as ice rental, sponsorship arrangements, and office lease rates.鈥�
McLeod said it was difficult to single out the Terriers for aid.
鈥淵orkton has a number of valuable community organizations, all of which provide substantial economic benefit to the community. Some of these have cancelled future events, which also provide a significant amount of their annual operating funding,鈥� he noted, adding 鈥淲e don鈥檛 know when the pandemic will end or what the total impact will be on any organization, including our own. There may be worse times ahead for many community organizations and any decision made on this request will have an impact on how the City will be expected to respond in the future.鈥�
As a result it was the recommendation of City Administration that Council deny the Yorkton Terriers鈥� request to waive their 2019-2020 Ice Rentals, Sponsorship, and lease rates, totaling $44,901.82, and further direct Administration to develop a Pandemic Payment Plan that will minimize the impact of the City鈥檚 financial requirements on the City鈥檚 non-profit tenant organizations, during Covid-19.
Councillor Quinn Haider was quick to ask what other municipalities are doing for their Saskatchewan Junior Hockey League franchises? He noted he had heard LaRonge had waived ice rentals for all users.
McLeod said that was his understanding regarding LaRonge, but added he did not know if other clubs have made a request similar to what the Terriers did.
It was next asked if the Terriers had sought relief before, to which City Manager Lonnie Kaal said a deal 15 or so years ago was made regarding ice rental payments to help the club that included some interest forgiveness. She added the Terrier鈥檚 current situation is not just a COVID 鈥搑elated one, suggesting the team was experiencing financial struggles pre-COVID and the pandemic exasperated those issues.
Haider said the situation is one that does not look good.
鈥淚 really worry about the SJHL. It鈥檚 a long term problem I think,鈥� he said.
Coun. Mitch Hippsley said the Terriers are obviously a valuable part of the community.
鈥淭hey鈥檙e part of the culture of the city,鈥� he said adding as hockey is to Canada the Terriers are to Yorkton.
Coun. Aaron Kienle agreed the team holds a special place in the city.
鈥淭here鈥檚 no doubt the Terriers are important,鈥� he said, but added he talks to people involved with other sport groups and they too have concerns following the impact of COVID-19. So how to help one and not another becomes a question.
Specifically to the Terrier request Kienle noted 鈥渢he ice was used. We have to get paid for that.鈥�
And, the office space at the Gallagher Centre also continued to be used, noted Kienle.
鈥淚 feel like I鈥檓 being cold,鈥� said Kienle, but he added other organizations have to be considered. 鈥�... It鈥檚 tough unless we鈥檙e going to give everybody a break.鈥�
Mayor Bob Maloney said, 鈥淭his is a really dire situation,鈥� adding the business model of limited fans in the seats is not a good one for the SJHL. 鈥�... It could signal the end of the league.鈥�
In the end Council unanimously followed the Administration recommendation to turn down the Terrier request, but to work with them on a suitable payment plan.
Terrier president Neufeld was unhappy over the decision.
鈥淵eah, I would say I was surprised and definitely disappointed,鈥� he told Yorkton This Week post meeting.
Neufeld said it was unfortunate no discussions with the City had occurred since the Club鈥檚 presentation in June, adding talks might have found an alternative to a flat out no this Monday.
鈥淭he unfortunate part is this is a dire situation for us,鈥� he said, adding a significant portion of the team debt, some $60,000, pre-dates COVID-19, with the overall debt since growing. He added the exact debt is not known, although audited financials are due any day in preparation for the team鈥檚 annual general meeting Sept. 14.
While Neufeld said the next step is not clear for the franchise, he noted the Terriers are not alone in facing a debt crisis.
鈥淚t鈥檚 not a problem that鈥檚 unique to us,鈥� he said, adding other SJHL teams are also in the red.
