Pandemic paused Petes seek new PMC lease deal

The Peterborough Petes want to renegotiate their Memorial Centre lease agreement with the city a year earlier than planned.

The Petes have a 20-year lease with the city that lasts from 2003 until 2023, with the option to begin negotiating a new agreement as early as 2021. But the Ontario Hockey League team has asked to start those renegotiations now.

In a letter to the city, Petes president Dave Pogue states the current lease “has served its purpose” of allowing the team to subsidize the city’s $13.3-million renovation of the Memorial Centre from 2003.

“We believe the money made through the Petes have paid for the renovations, as intended,” writes Pogue, adding that the team must renegotiate now so it can continue to thrive in the COVID-19 pandemic.

Pogue also writes that the Petes signed a lease in 2003 with the expectation that the city would have a replacement for the aging Memorial Centre under construction within 25 years; meanwhile council hasn’t yet selected a site for a new arena and entertainment venue, much less begun construction.

At a committee meeting on Monday, councillors will consider a recommendation from a new city staff report that the city immediately begin renegotiating a lease with the Petes. There are many reasons to do so, the report explains.

“The OHL is becoming an increasingly competitive environment for the Petes to participate in, the new major arena project has not been fully approved, and the unique challenges posed by COVID -19 which will disrupt at least two OHL seasons all combine to justify a new facility license agreement being negotiated,” the report states.

The city adjusted the agreement at the request of the Petes in 2017 to allow the team to share about $400,000 annually that the city receives in gamenight arena revenues. The city had been reaping $1 million in game-night revenues annually at the time while the Petes were having financial difficulties.

The 2017 changes gave the Petes $49,000 more from food and beverage sales, for example, and waived a 10 per cent commission the city takes from tickets meant for families, children, school groups and students.

If councillors approve it on Monday, the plan still needs to be ratified at a council meeting Oct. 26.