Council may look to private management of Essar Centre

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Since its opening in 2006, the Essar Centre has been owned, operated and managed by the city of Sault Ste. Marie.

With losses over five years to be over $437,000 and a budget loss of over $625,000 this year, city councilors Susan Myers and Sandra Hollingsworth are looking into the option that was laid out in the beginning, of having private management.

They are looking at the model set by Kingston’s 10-year-old and 6,700 seat Rogers K-Rock Centre.

The city of Kingston entered into a new five-year contract last year whereby the city is guaranteed 100 per cent of the first $550,000 of profit.

Our city council is looking for the same type of dollar value from the Essar Centre.

What the councilors are looking for from staff is:

  • examples of other similar sized municipalities with a similar facility being operated privately
  • what process and time line would be required for City Council to consider the option of private management of the Essar Centre.

 

6 COMMENTS

  1. Cole; There is a process underway to find a new corporate sponsor for the arena. Right now it’s still the Essar Centre. The company fulfilled its end of the contract for the naming rights so quit whining. Essar Algoma’s bankruptcy situation has nothing to do with the name of the city’s premier arena.

    • Jim….I honestly didn’t even see your response before I posted as your response was at the top of the thread. I guess great minds think alike LoL

  2. Please keep in mind that every time you refer to our arena as the E***r center it is like sticking a knife in our backs. The mayor said the name was going to be changed and that Algoma didn’t have a problem with that. So, what is the hold up, Mr. Mayor??

    • Cole, the process is in the works. The city has recently issued a Request For Tender for naming rights. The winning bidder/submission will probably be announced in the next 8 weeks I would assume. I believe Essar still has time remaining on their “prepaid” naming rights that come to an end sometime early this year. The good news is that that sign will be down and a new one put up sometime before the year is up.

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