The Prince George Citizen ­ Saturday, November 22, 2003 ­ 13

SATURDAY REPORT

Sign of the times
As the pressure on municipal taxes grow, Kamloops and Prince George look to make their sports facilities more financially viable. But are tenants and residents willing to accept events signs, liquor sales and paid parking?
risdiction for the Multiplex. Over the past five years, the Multiplex has averaged $1.135 million in annual revenue while costing the city an average $1.356 million. That works out to an average annual loss of $225,000 since 1999. "We think an 84 per cent recovery on a building like that is pretty good," Madden said. "The goal of 100 per cent might cause some issues near future. within the community that they aren't willing to So says Tom Madden, Prince George's leisure services director, in response to a business plan to accept. You can easily get there by selling liquor, make Sport Mart Place in Kamloops no longer de- bringing in pay parking and increasing the rates. But I think our community and city council said pendent on tax dollars within six years. that a bit of taxpayer investment in addition to Although the Kamloops plan calls for liquor the cost of the building is a good thing because it sales at Blazers hockey games, that WHL team makes it affordable." has been strongly opposed to the idea and it reIn 2002, Sport Mart Place took in $1.050 milmains a hurdle in negotiations with the city. lion in revenue to cover $1.778 million in exMadden said he would expect similar opposition penses, a cost recovery of 59 per cent. With parkfrom the public if Prince George city council voting fees now being charged, the cost recovery is ed to allow beer concessions at Cougars hockey expected to climb to 76 per cent this year based games. on projected revenue of $1.406 million and "Our community in terms of how it views alco$1.845 million in operating costs. hol is pretty divided," Madden said. "We hear so Additional revenue from advertising on the much about people who would like to have beer rink's new video scoreclock is expected to add sales during Cougar games but we also hear from a lot of people who don't want it. We found $110,000 this year. Cost recovery at the Multiplex was as high as that out when we did the alcohol policy review. There's no clear answer. The tenant has the right 88 per cent in 2000, but that's dropped in recent years. Decreased attendance at Cougars games is to say no." the primary cause, Madden said. Sport Mart Place plans to charge Blazers fans "Let's face it, (the Cougars') revenue, like ours, $6 a game for parking in the facility's upper is based on what the parking lot, although hockey team does," most people park on downtown streets be"I think these things will Madden said. signage, Sponsorship cause there are few always be out there for which includes the parking spaces right near the building. consideration if the city name sponsorship and board and rink advertisMadden says his deing, is projected to bring partment has considdoesn't want to raise in $392,000 at Sport ered charging Multiplex taxes to pay for things Mart Place this year and users for parking but bethe the new parking cause of the public's exand is looking for fees will add an expectpectation for free parkalternative sources." ed $60,000. ing anywhere outside the downtown core, the -- Tom Madden Madden says it's difficult to compare figures city has never followed from the two buildings through on the suggesbecause of the different configurations of the tion. buildings and the fact Sport Mart Place has its "That's probably as difficult as the liquor subown lounge. ject because parking in Prince George, as a rule, The Multiplex averages about 100 days a year is inexpensive compared to many communities," Madden said. "People have grown accustomed to in paid-attendance bookings, which is close to not paying for parking around recreational facili- the city's targeted goal. "When we opened we had everybody coming ties so it would be very difficult to institute a to us but now, Kelowna and Cranbrook have charge. built facilities and Victoria will soon be back in "But I think these things will always be out there for consideration if the city doesn't want to the market again (with a new building)," Madden said. raise taxes to pay for things and is looking for al"We were pretty sparse for a while there but its ternative sources." coming back. We'd love to return to the level of The close proximity of the Kin Centre and othconcerts we used to get the first three years we er Exhibition Park facilities would make it difficult, if not impossible, to enforce paid parking ju- were open. But our geography makes it difficult."
Citizen staff photo; submitted photo

The Prince George Multiplex, top, and Sport Mart Place in Kamloops are facing pressure to pay for themselves.

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by TED CLARKE Citizen staff iquor sales and user-pay parking at Multiplex events could allow the city's premier sports and entertainment facility to become self-sufficient, but don't expect either of the current policies to change in the

REVENUES
Revenue comparisons (2002) Revenue item Kamloops Prince George WHL team $277,923 $338,438 Food/beverages $141,715 $194,718 Private suites $31,000 $219,397 Sponsorship & signage $270,800 $69,207 Ice rentals (excluding WHL) $86,348 $135,420 Catering commissions $10,458 See food & beverages Event revenues $181,102 $174,852 Miscellaneous $50,663 $14,601 Total revenue $1,050,009 $1,146,633
Source: City of Prince George, Leisure Services

ESSENTIAL INFO
Multiplex facts and figures Opening date: Sept. 30, 1995 Construction cost: $18 million Seating capacity: 5,797 seats, 28 wheelchair spots, 170 standing room Parking: 3,000 stalls, free parking Rink size: 200 feet X 85 feet (expandable to Olympic size 200 feet X 100 feet) Floor type: Concrete; Ice covering: Homosote Ceiling height: 43 feet (to lower trusses), 54 feet (to upper trusses) Stage: Wooden deck, 60 feet X 40 feet X 42 inches high; load rating: 50 pounds per square foot Loading entrance: 15 feet wide X 16 feet high (located in southwest corner) Dressing rooms: Four, all equipped with showers Concourse: Available as indoor walking track Concessions: Four fixed sites, eight concession carts
Source: City of Prince George website -- www.city.pg.bc.ca

Since the Multiplex opened in September 1995, the city has: improved the sound system, renovated office space used by the city and Cougars hockey team; remodeled private suites (paid for by the tenants); split one of the private suites to increase revenue, purchased a new ice resurfacer; upgraded the ice plant; installed higher safety glass and nets; and set aside money for an exterior information sign to be built in a joint partnership with the Cougars. The lack of a permanent Multiplex sign to inform the public of upcoming events is a source of frustration for people driving by the building who might be unaware of what is happening in the building. It also makes it more difficult for organizations like the Cougars, concert promoters and trade show organizers to advertise their events. That problem will soon be dealt with. "The sign is coming soon and the goal (was) to try to have it in place by November," Madden said. "The Cougars are buying it as a capital investment and we'll get some use on it for the city. We've tried to put capital money toward it every year but the sign is something that's never made it to the top of the list of capital projects." The two-sided electronic sign, to be located off Ospika Boulevard across from the Prince George district forest office, is expected to cost between $125,000 and $150,000. Because the Cougars will own it, the sign will not generate any advertising revenue for the city. "The primary purpose is to promote events at the Multiplex because the return on investment is based on ticket sales," Madden said. "None of us are looking at it as a financial windfall." Other long-range projects being considered include: reconfigured standing areas and media boxes to be used a rental suites; improvements to

the media box; construction of a fifth dressing room; upgraded light controls; more portable seating; expansion of paved parking and landscaping; and more parking lot exit/entrances to allow faster dispersal of traffic and pedestrians. The city is still trying to find a corporate sponsor to secure naming rights for the building in a deal similar to that of Sport Mart Place in Kamloops, a 10-year agreement which generates $105,000 annually. Two years ago, the city paid $15,000 for a market study by Spectrum Marketing Corporation of Vancouver to try and find a name sponsor. While that did generate a list of potential sponsors, the search continues. "We are trying, and we're doing a lot of stuff behind the scenes, but we haven't unearthed anybody willing to put their name on the building," Madden said. "If it was just as easy as walking up and knocking on a door, we'd have done that, but that's not the way the naming rights business usually works. It takes a whole lot of negotiation and discussion with companies to illustrate the benefits. "I think we entered the market a time when it was very difficult. I'm not surprised it hasn't happened because it's more difficult after a building opens. People have grown used to the name and the thrill of being on a new building isn't there. The economy has changed since we opened and things have gone a bit soft for what we're looking for."

22nd Annual College Heights Craft Sale
Saturday & Sunday, Nov. 22&23, 2003 - 10:00 a.m. to 4:00 p.m.
College Heights Secondary School, 6180 Domano Blvd.
Over 90 tables of crafts, toys, baking, decorations & more.

Everyone Welcome!
440189