The Adventure Centre has never been an inexpensive community asset and the Squamish Sustainability Corporation (SSC) responsible for managing it has never been revenue neutral despite former Mayor Ian Sutherlands early expectations.
The desire to move in that direction may explain why SSCs request for increased district funding in 2011 came as a surprise to members of Squamish council on Tuesday (Feb. 22).
When this council took over 2 1/2 years go I thought we were going to stop some of the expenses that were going out, said Coun. Doug Race. I thought we were headed in the direction of a limp-along, bare-bones budget.
The initial Adventure Centre budget was $2.1 million, with the District of Squamish covering $900,000 in costs. The total cost increased to $4.7 million by its completion in 2006.
To accommodate the debt, council created the SSC, an arms-length, wholly owned district corporation tasked with managing the Adventure Centre and advancing tourism and business in the municipality.
SSC reins have passed four times since its inception and as evidenced by Races comment, expectations have diminished.
First Sutherland and then-deputy administrator Brent Leigh, then eight appointed members of the community, then current council members and now district staff, compose the SSC board.
In October 2006, Sutherland said he expected the SSC would generate its own Adventure Centre management costs in the near future.
I believe that the last loan that we approved, that will be the last influx of cash that theyll need, he said, referring to the $428,000 granted that year.
Theyre supposed to be able to carry on their own resources going forward.
Evidently that has not happened as the current SSC board approached council to request $192,000 on Tuesday (Feb. 22) for building operation and promotion costs.
SSC has been requesting operating cost assistance every year since its inception in 2009 the former SSC board requested $157,000 and received $151,717.
There are two components to the SSC, said SSC chair Cameron Chalmers, who promised to review SSCs role in July when District of Squamish staff took over SSC responsibility.
Theres the actual building maintenance which includes cleaning, heating, repairs, snow removal and security, and then like any other facility, it requires some level of management.
The SSC mandate that Chalmers and SSC operations manager Katherine Folinsbee is looking at pursuing is clear.
We want to rebuild and re-focus SSC and the Adventure Centre operations, said Folinsbee. We want to connect back into the community and to attract visitors and the wider community to the building through the attractions and displays we can offer.
Chalmers said 2010 was a transition year for the SSC. It was an the unaccredited media hub during the Olympics, separated from Tourism Squamish and the Squamish Store and hosted two revenue-generating displays (Squamish Oceanfront Development Corporation and the West Coast Railway Heritage Park). SSC also decorated the building with art exhibits and organized facility bookings for for-profit and non-profit groups.
The Adventure Centre regularly donates space, free of charge, to Balding for Dollars, Bear Aware, the Brackendale Eagle Count, Inside Edge and Squamish Climate Action Network (CAN). This year it also hosted a Photos with Santa day.
Its main revenue sources are the caf lease, the Chamber of Commerce lease, office space rental and promotional space use.
Inflated projections from these revenues over the past few years have led to some impractical expectations, according to Chalmers.
Some of the previous projections were unrealistic, he said. Thats part of the reason were asking for a bit more were being very conservative with our revenues based on not achieving targets over the last number of years.
For example, in 2010 the former SSC board (members of council) projected they would receive $46,483 in promotional space use and rental. But in actuality, they received $30,000.
On the expenditures side the former SSC board did not budget for electrical services and supplies, heat, HVAC (heat, ventilation and air conditioning) repairs and maintenance, security and emergency funds.
The combined total of the revenue discrepancy and the added expenditures totals $39,033 more than the discrepancy between the 2010 request and the 2011 request.
Chalmers said this conservative approach was necessary given the circumstances.
In 2010 there were a number of challenges: the door counter was broken, so visitor numbers were difficult to track; there were reduced Visitor Information Centre hours; the caf owners have given their notice and the caf operation is set to end on Monday (Feb. 28); and the SODC display has given notice and the Railway Heritage Park display is waiting for a district grant application to confirm.
In addition, windows broken during a break-in cost in 2010 resulted in more than $10,000 in repair costs, and one tenant has yet to pay, Chalmers said.
The new budget also includes increasing the operations managers role to full time.
Right now theres someone in the building only three days a week, said Chalmers.
We think its appropriate that if someone phones during business hours to make a booking, theres someone there to answer a full-time position to try and revive the business into the building.
The key difference in the budget addressed by council was a line item for marketing, displays and exhibits.
Chalmers said SSC will have to spend some money to ensure revenue.
We have great ideas to secure long-term sustainable funding sources through building leases, promotional space and office rentals, but right now were drawing very little rental income, he said.
We want to expand on that and the public expects us to run that building better than we have in the past, but we cant unless were resourced to do it.
Chalmers said the 2011 budget would ideally lead to a surplus in 2011 to carry forward in 2012 and lessen the district ask in future years.
Coun. Corinne Lonsdale picked apart every single line item, asking about the cost of the photocopier lease, demanding an explanation of why the phone bill was so high and questioning SSCs role in general.
I would like to see more of a breakdown of where the costs are coming from, she said.
I thought SSC was going to act as a landlord and only take care of the building. Why dont we turn the marketing for displays and such over to Tourism Squamish they have the expertise and represent the business people in the community.
Lonsdale said if it was up to her and SSC didnt have so much debt, she would kiss SSC goodbye because I dont think that building will ever be revenue neutral.
Coun. Patricia Heintzman said she didnt expect the Adventure Centre would ever be revenue neutral.
I see it as an amenity like the recreation centre, she said. We dont just want to give it enough funding to putter along. We want it to excel.
Chalmers responded that revenue neutral wasnt so much a question of could it be but should it be?
Can it be self-sustaining? he asked. Maybe, but should it be is a different question.
I see this as a community facility. We dont necessarily want to burden the taxpayer but if it achieves what we hope, then any investment would further our economic imperative were entertaining all opportunities to fill the building, ideally with paying tenants as long as its in the best interest of the community.
Despite his impression that SSC was leaning toward a bare-bones budget, Race said he was comfortable promoting it for what it was originally intended to do.
Obviously well need to distribute funds to do that, he said.
Mayor Greg Gardner was concerned council and the SSC were discussion two different functions.
Are we marketing the building to increase revenues as a landlord would or to increase tourism to the community, he asked.
A bit of both, replied Chalmers.
Yes, we want to actively market the building as a district investment with meetings, the caf and displays, but likewise we want to see how the building fits into other major economic initiatives.
Despite the challenges ahead, Chalmers said the SSC board has already received some excellent response to its recent request for expressions of interest for a new caf tenant.
Council will decide whether to grant SSC the requested $192,000 during the 2011 budget discussions.
