While Spectra Venue Management Services — which operates Mosaic Place — expects live events to return later this year, it also expects to see a loss in building operating revenue over $250,000.
The management organization has taken several steps to mitigate the loss of budgeted revenue in 2021 and anticipates pandemic restrictions to be lifted for live events by the fourth quarter, which means it is actively pursuing events for that period and 2022, it explained in a recent report to city council.
Based on current information, Spectra is forecasting “during this unpredictable time” that it could hold roughly 50 events during the remainder of the year, including meetings, conferences, bonspiels, and hockey games. This is expected to lead to a building operating loss of $250,934 by Dec. 31, which means Spectra could require an overall subsidy of $960,656.
“Further, this does not include the issued gift cards of $145,724 from the Ticket Rocket fallout and management fee (of $133,980). In comparison, the 2020 subsidy was $999,760, which will end up being very similar to 2021 due to COVID-19,” the report added.
If the gift cards and management fee are considered, the subsidy will increase to $1.24 million.
Spectra produced the report in response to an inquiry from Coun. Crystal Froese during the April 26 regular meeting. She had asked about Mosaic Place’s budget for this year, especially since it was based on 115 events happening.
The management agency presented the report during the May 25 regular council meeting.
Background
The provincial government extended pandemic restrictions — and then tightened them — in mid-January 2021, which meant Spectra cancelled booked meetings and the remainder of the curling season, the report explained. The AAA Warriors’ season was cancelled in late February, while the WHL Warriors played a modified season from a hub in Regina.
Revenue
Mosaic Place has tracked lost events and event revenue since the pandemic began, and as of March 31, there were 60 lost event days and more than $170,000 in lost rental income, plus ticketing, food, and beverage event revenues, the report said. There was also roughly $200,000 in lost advertising and premium seat revenue; both hockey teams did, however, meet their tenant agreements.
Recreational youth sports ice rental at Mosaic Place increased due to the lack of AAA and WHL hockey seasons, but there was no adult recreational hockey that normally is a source of revenue.
Meanwhile, Mosaic Place regularly worked with the City of Moose Jaw and the parks and recreation department to determine which recreation venues should remain open to meet the needs of residents and user groups requesting ice time, added the report.
Expenses
“Mosaic Place reacted quickly to the extended COVID-19 lockdown to be fiscally responsible and reduce expenses,” the report continued.
Spectra cancelled the curling season on Jan. 13, removed the ice, and laid off nearly all the full-time and seasonal staff three months before their contracts ended. The management organization removed the arena ice in March and later laid off full-time building operators.
Mosaic Place is maintaining 37 per cent of its regular staff, while it combined the layoffs with two vacant full-time operations positions and part-time building operators, according to the report. Extra attention has been given to operating expenses and reducing utility costs to offset the “uncontrollable increased additional costs of the carbon tax,” utility rates and property taxes.
Spectra is also focusing on preventative maintenance of the venue to ensure it is looked after in the future.
“It is important to note that as of March 31, 2021, we have saved $171,001 in operational/indirect expenses,” the report added.
The next regular council meeting is Monday, June 14.
