Halifax Regional Council has approved an updated business plan for the Halifax Convention Centre that includes nearly $11.1 million in losses — roughly double what was projected before the COVID-19 pandemic.
The 2020-2021 Events East Business Plan passed unanimously on Tuesday, meaning the municipality will split that tab with the provincial government. The HRM will fork out $5.4 million and the province will pay just under $5.6 million.
The municipality’s portion will come from its Halifax Convention Centre Reserve, a coffer Coun. Sam Austin said he’s concerned about.
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“It wasn’t balancing how we’d hoped to have it from the get go, so it might be time to really rethink the whole approach to that reserve,” he told fellow councillors on Tuesday.
“I don’t know what we can do with it, but topping it up each and every year doesn’t seem to be working that well, keeping in mind that we are in extraordinary circumstances right now.”
Earlier this year, Events East laid off roughly 60 events-based staff members and suspended some business and administration services in an effort to cut down on costs.
Those measures will continue until regular event volume resumes, its president and CEO Carrie Cussons told the municipality.
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Events East manages and operates the Halifax Convention Centre, Scotiabank Centre and Ticket Atlantic. Prior to March, it estimated the convention centre’s deficit to be $5.6 million.
“We are absolutely committed to working with our shareholders in the province and the city to mitigate costs and debt as much as possible,” said Erin Esiyok-Prime, marketing manager for Events East, in an interview with Global News.
“Since this started, we’ve been extremely diligent in cost mitigation and doing a lot of different things to make sure we’re being as responsible as possible as an operator.”
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The Halifax Convention Centre has hosted more than 30 events in 2020. It opened in September, when COVID-19 case numbers were low, and brought in a series of pandemic-safe concerts, and local and regional gatherings, including the swearing-in of regional council members.
Esiyok-Prime said the centre will resume hosting local and regional events when restrictions are lifted, and hopes to attract national and international events once more by fall or winter next year.
“People are anxious, there’s a pent-up demand,” she explained. “I think this year has reinforced more than ever that face-to-face meetings is important and building those connections — people crave that. So I’m very confident they’ll be back as soon as they’re able to.”
Both the HRM and provincial government are on the hook for any losses incurred by the Halifax Convention Centre over the next 25 years. The 120,000-square-foot facility was built with $169 million of taxpayer money, and in 2018, its deficit was about $4 million.
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Halifax Chamber of Commerce president Patrick Sullivan said he looks forward to seeing the centre get back on its feet, as the surrounding restaurants, shops, tourism businesses, and hotels will prosper from its success.
“I think there were many businesses that had projections based on the convention centre, based on the size of the convention centre, based on the expected visitation to Nova Scotia,” he explained. “I think it’s a significant loss for the area.”
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