A proposal that would have seen the Sudbury Wolves take over operations of Sudbury Arena – which raised the hackles of some members of city council last June – is dead.
Instead, the city and the club's owner will work within the existing agreement, according to a report headed to city council Wednesday.
While council approved the plan in principal by a 10-3 vote in June, some councillors were vehemently opposed to the plan.
The proposal from the Wolves would see the club take on the full responsibility for all revenues and expenses at Sudbury Arena in exchange for a guaranteed amount from the city and the potential for sharing new revenues. The plan would save the city $270,741. For the years 2014 through 2016, the arena has cost an average of $541,482.
At the time, the club said the financial viability of local National Basketball League of Canada franchise owner Dario Zulich is trying to establish “is predicated on being able to further operate the facility.”
The team is slated to begin operations next year.
While a final decision was expected in August, staff met with the Wolves over the summer to discuss several issues, the report said. They included:
- Performance securities in the form of a bond or letter of credit;
- Insurance;
- Financial audits and controls;
- Performance standards, building audits to ensure for the preservation of City assets and equipment;
- Health and safety;
- Transition of part time non-union staff;
- Requirements for new software solutions for ticketing and facility booking and the transition plan for new software systems.
- The complexity of the issues, the report said, led the sides to conclude they were better off working within the existing agreement.
“Given the additional time required to work through the details of the occupancy agreement and its required amendments, it was determined by both parties that the objectives of both sides could be achieved through an expanded role of the Sudbury Wolves Hockey Club with the existing contract,” the report said.
The city has agreed to a standard contract for any non-OHL events the Wolves bring to the arena. There's also an agreement for the basketball team, in which preferred home game dates for the team will be given priority.
“In turn, the Sudbury Wolves Hockey club has committed 10 per cent of all net revenue generated from new non-OHL and non-basketball events (concerts and shows) secured by the club to the city,” the report said.
“The Sudbury Wolves Hockey club has stated in discussions that they expect a 40 per cent increase in the number of events. Basketball would generate 20 events annually and new events such as concerts and shows through co-promotion and promotion opportunities by Sudbury Wolves Live would account for the additional events.
“These new events are projected to increase rental and ticket handling fee revenue to the Sudbury Arena, which would be offset by additional city-related operating costs.”
