Council agrees to new lease talks with Petes
Lease deal expiring in 2023 but $13.3M spent on reno has been paid off
The Peterborough Petes want to renegotiate their Memorial Centre lease agreement with the city a year earlier than planned and city councillors are prepared to allow that to happen.
The Petes have a 20-year lease with the city to last 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 renegotiations with city staff now.
At a committee meeting on Monday, councillors gave preliminary approval to allow it.
At the meeting, they allowed staff to start those negotiations sooner than 2021. The approval occurred on consent, meaning there was no debate or discussion about it. The matter still
needs a final vote at a city council Oct. 26.
In a letter to the city, Petes president Dave Pogue states that 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 (which cut short the 2019-20 hockey season in March, with games not resuming since).
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.
“We believe the money made through the Petes have paid for the renovations, as intended.” DAVE POUGE PETERBOROUGH PETES PRESIDENT
Meanwhile council hasn’t yet selected a site for a new OHL arena and entertainment venue, much less begun construction.
There are many reasons to renegotiate now with the Petes, a staff report to councillors 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 licence agreement being negotiated,” it 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, and 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.