City taking over Canalta Centre
Private operator will be reconsidered after pandemic
City hall will take over operating the Canalta Centre from its outside contractor this summer, but will consider private management again after the coronavirus pandemic has passed, Mayor Ted Clugston told the News on Monday.
Officials made the announcement in the early afternoon, following a closed-door meeting of the public services committee, that the contract with current operator ASM would not be renewed when it expires this summer.
With cancellations of public events — considered a key strategy in halting the spread of the deadly disease — likely to continue for some time, city administrators felt active management of the 6,000-seat arena and event centre was prudent. The city takes over in August, but will develop a management strategy for the building that’s seen poorer than expected attendance since it opened in 2015.
“The COVID-19 event has created an unprecedented challenge for the recreation and entertainment industry, and we wish to thank ASM Global for their service in operating the Canalta Centre,” said public services commissioner Brian Mastel.
For several years, greater than budgeted losses at the Canalta Centre have been discussed generally in city financial reports, though without elaboration. The details of the contract, signed in 2013 ahead of the 2015 grand opening of the $64-million facility, have not been disclosed.
City officials did note on Monday’s announcement that attendance was challenged prior to this spring when crowd restrictions came into effect under public health orders.
“When the current situation is considered in context of these broader challenges, it underscores the need to reexamine the operational and cost structure for future sustainability,” said Mastel.
Mayor Ted Clugston, reached Monday afternoon, said that a variety of factors hurt attendance for the new building — the 2016 economic slowdown in Alberta chiefly.
“I’m not sure what would have happened if we hadn’t seen COVID (restrictions),” said Clugston, stating that banning major events was an early measure and could be the last lifted.
“It’s pretty much common sense. Rather than pay a management company to run an empty building, we’re just taking it in house for now.
“But that doesn’t mean we wouldn’t put out a (request for proposals for private contract operators) again. It hasn’t been decided.”
The city release states that the city will remain in contact with ASM to rebook shows and events postponed this spring, and is also discussing the matter with tenants like the Medicine Hat Tigers, vendors and sponsors.
On March 19, amidst provincial announcements about increasing restriction on the size of crowd gatherings, the Western Hockey League suspended its season, and other concerts, such as the expected sell-out featuring Brad Paisley the next night, were postponed.
ASM, formerly known as SMG Canada, was the only private operator and event booker to submit a proposal to operate the 6,000-seat hockey rink that was approved in 2013. It began operating the facility in mid summer of 2015 when construction was completed.
Event attendance struggled, and even for hockey games, people in the seats were far fewer than the usual sell-out attendance at the 4,006-seat Medicine Hat Arena.