Advertisement

On thin ice: Saint John council ponders closing arena as cost-cutting measure

Click to play video: 'Saint John arena closure proposed to Common Council'
Saint John arena closure proposed to Common Council
WATCH: City staff in Saint John is recommending one of the four city-owned and operated arenas be closed as a cost-cutting measure. As Andrew Cromwell reports, it’s one of the sustainability initiatives being looked at – Dec 17, 2019

Common Council in Saint John is being asked to consider closing one of the city’s four arenas it owns and operates.

City staff is recommending either the Charles Gorman or Hilton Belyea Arena be closed as a financial sustainability initiative. It’s a move that would help deal with an impending budget deficit of $9 million to $10 million in 2021.

READ MORE: Saint John council makes 1st comments on 2020 ‘transitional’ budget

Closing one of the arenas would save the city about $155,000 per year and staff say ice time demand could largely be met by the other three.

Council was told any move would not be made without consultation.

“Through our consultative processes we’ll also have discussions with all the user groups and the community to figure out which (arena) makes the most sense to close,” said city manager John Collin.

Story continues below advertisement

Getting the private sector involved also became part of the conversation.

Financial news and insights delivered to your email every Saturday.

“If the price is right, I have no problem selling them the rink,” said Councillor Gary Sullivan. Collin did say a recommendation surrounding possibly leasing out the city’s entire arena inventory is in the works.

Click to play video: 'Saint John Common Council to vote on 2020 budget'
Saint John Common Council to vote on 2020 budget

Recreation played a major part in discussions around the council table on Monday night. Council is also being asked to consider how much it subsidizes facilities like ball fields and arenas to the groups that use them. That could lead to hefty fee increases down the road.

Mayor Don Darling again brought up what he sees as the need to maximize the return on what the city pays out.

“Arenas 1.6 million (dollars) in cost and we collect $680,000 in user fees,” Darling said to council. “Can we afford to do it anymore? So maybe there’s an argument to get out of this subsidize business altogether.”

Story continues below advertisement

READ MORE: Recreation programs still on Saint John council chopping block

Both the arena closure and recreation subsidization issue will remain issues the council will continue to consider as part of both cost cutting and revenue generating initiatives.

Council is not bound to act on any of these recommendations. Staff is expected to go back and fine tune the proposals and then bring them back to council.

Council will make a final decision on all financial sustainability items by the end of March.

Sponsored content

AdChoices