HomeMy WebLinkAboutCS 36-21Report to Council
Report Number: CS 36-21 Date: November 22, 2021
From: Sarah Douglas-Murray
Director, Community Services
Subject: Arena Pro Shop Rental Fee Relief -File: A-1440
Recommendation:
1.That Report CS 36-21 Arena Pro Shop Rental Fee Reduction be received;
2.That that the Mayor and City Clerk be authorized to execute a Concession Licence Amending Agreement with XPRT Marketing & Promotions, that contains the following condition: that rent be waived for the months of September and October 2021 and that the current monthly rent paid to the City of $581.25 be reduced by fifty percent to
$290.63 monthly and in addition, subject to such additional terms and minor revisions as
may be required by the Director, Community Services and the Director, Corporate Services & City Solicitor; and,
3.That the appropriate officials of the City of Pickering be authorized to take the necessary
actions as indicated in this report.
Executive Summary: There has been a request from XPRT Marketing & Promotions to adjust the amount of rent being paid to the City as set out in the existing Don Beer Arena Pro Shop - Licence Amending Agreement which permits XPRT Marketing & Promotions to provide pro shop services within Don Beer Arena until April 30, 2022. The vendor has requested that
rent be waived for the months of September 2021 and October 2021 as the pro shop did not open seasonal operation until November 1, 2021 and that rent be paid at 50 percent for the months of November 2021 through March 2022.
The existing Licence Agreement, approved by Council in 2017 as per Resolution #310/17 (refer to Attachment 1), is currently in year two of an optional two year extension period. As
the agreement was endorsed by Council, approval for amendment to the agreements must also be endorsed by Council.
Financial Implications: XPRT Marketing & Promotions has requested that the current monthly rent paid to the City of $581.25 be reduced by 50 percent to $290.63 monthly. This monthly reduction in rent combined with waiving of the rent for the months of September and October 2021 will result in a decrease in annual revenue of $2,906.22. The net rental revenue
for the 2021/2022 operating season will be $1,743.78 instead of $4,650.00.
CS 36-21 November 22, 2021
Subject: Arena Pro Shop Rental Fee Relief Page 2
Discussion: As per Report CS 12-20, the City entered into a Licence Agreement
with XPRT Marketing & Promotions to operate an arena pro shop at Don Beer Arena. This
was during pre COVID-19 operational conditions where facility usage was very high and sales in the pro shop operations were steady and predictable.
Current COVID-19 related Provincial operational guidelines and general safety concerns have impacted arena usage throughout the fall and will continue to impact operations throughout the
current 2021/2022 hockey season (through March 2022). Capacity limits have been in place
throughout the fall and patrons have been limiting the amount of time that they spend in indoor facilities due to necessary city protocols to meet health requirements. While protocols are now lifting, reluctance by many members of the public are continuing to impact public attendance and drop-in behavior at arena facilities. Registration numbers in all minor sports organizations
have also decreased which has caused a decrease in ice permits by approximately 15 percent.
The Community Services Department recommends that XPRT Marketing & Promotions be granted the requested rent relief which will ensure that this valuable service to Don Beer Arena ice users remains available. All Current Budget line items affected by any loss in revenue as stated in this report will be reflected within the 2022 Current Budget submission to Council.
Attachments:
1. XPRT Marketing & Promotions Licence Agreement
Prepared By: Approved/Endorsed By:
Original Signed By: Original Signed By: Kevin Hayes Sarah Douglas Murray Manager, Facilities Maintenance Director, Community Services
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Recommended for the consideration
of Pickering City Council
Original Signed By:
Marisa Carpino, M.A. Chief Administrative Officer