SASKATOON - The Governance and Priorities Committee of city council (GPC) unanimously approved a process to find a private industry partner to oversee the management and operation of future downtown arena and convention centres.
“Many municipalities that own event centres are moving towards private contracted management,” says Dan Willems, director of Technical Services. “It’s nearly unheard of for a facility to move from private management back to public management.”
Right now, SaskTel Centre is managed by a private company. The proposed option would mean, subject to successful procurement and contract negotiations with the preferred proponent, both future facilities could be managed by a single company but remain city-owned.
This approach will enable the city to:
• Negotiate a management agreement at a level playing field after receiving competitive bids from all qualified and interested parties;
• Optimize and streamline governance structures of both facilities; and
• Obtain the most favourable agreements for the city that will also elevate the new venues.
Willems says that no third-party management firms will be given preferential treatment through the procurement process, adding that an independent fairness advisor will be brought on to monitor the process.
“This will be a clean slate with the goal of obtaining the highest overall value for Saskatoon. We want to ensure any future management arrangement will maximize seat sales, profits and animation of the facilities, which will in turn create spinoff benefits to the surrounding downtown area and entire community.”
Securing a private partner to contribute capital funding towards the facilities will reduce the overall funding required to be secured from other sources, according to a city press release.
The next steps involve securing an owner’s representative to assist city administration with preparing the request for qualifications and request for proposal documents for the private partner procurement. The administration will be reporting back to GPC to outline the anticipated schedule for the procurement, in addition to seeking city council’s endorsement of key elements and principles within the request for proposal prior to it being issued – likely in April or May.
