Late last week the City of Kimberley announced in a press release that they had formed a partnership with Resorts of the Canadian Rockies (RCR), in which the latter will operate and manage the Kimberley Conference and Athlete Training Centre. Prior to the new agreement the conference centre was managed by the Kimberley Community Development Society, which also manages such city assets as the Riverside Campground, Cominco Gardens and the downtown snack shack.
Kimberley Mayor Don McCormick offered a few more details on the agreement this week, first with a post on his FaceBook page and then a follow up interview with the Bulletin.
The biggest win is that the city no longer has to provide the over $100,000 yearly operating subsidy, the Mayor says. That subsidy, which can now be used for other needs, such as infrastructure, represents a full one per cent of the current tax rate.
“It’s a great deal,” he said. “We can now spend that $100,000 on other things. Our fleet is aging. i’m sure the snow removal guys would appreciate some new equipment.”
McCormick added that because the $100,000 for next year is already in the budget, these are funds that can be allocated to something else immediately.
The City does maintain ownership of the building and as owner is responsible for capital maintenance, such as the roof and heating system. All operating maintenance is the responsibility of RCR, as are staffing decisions.
McCormick has made no secret of the city’s desire to find some entity to take over the conference centre, but it wasn’t an asset the city could outright sell given stipulations in the Community Charter.
“We have been trying to find the best method of partnership and we did look at selling,” he said. “It’s clear an operating agreement is the best option. RCR is the logical choice so we opened discussions. They saw an opportunity.”
That opportunity is the ability to fill rooms (both RCR rooms and those of other accommodators) with events related to the conference centre, from weddings to full size conferences.
RCR, the mayor says, has the sales resources and marketing ability to grow the conference centre as a business.
“Their goal is to get the conference business to at least break even while increasing profitability of their other business areas. The rest of our business community will also benefit.”
McCormick says there are currently two employees at the conference centre and they have been given notice by KCDS. Whether they will remain in place is at the discretion of RCR, he says.
While there is no lease fee, the city will receive 7.5 per cent of room rentals.
It is a huge move by RCR, he says.
“Taking this on is a big commitment for them, a big commitment to Kimberley. And it’s a big deal for taxpayers.”