Spectra Venue Management Services has been hired to oversee the operations of Mosaic Place, with the goal of bringing long-term stability to the organization.
Spectra has a history of managing athletic and entertainment venues, including more than 80 buildings across North America and six in Western Canada. Moose Jaw will now become part of a concert circuit with those Western Canadian communities.
The company is based in Philadelphia, Penn.
The city manager of Penticton, British Columbia believes Spectra has done an excellent job of managing the South Okanagan Events Centre and has the capabilities to manage Mosaic Place, Jim Puffalt, Moose Jaw city manager, told city council during its July 8 regular meeting.
Spectra is expected to start managing Mosaic Place in September. The company has been hired on a fixed fee of $132,000 per year, according to city administration’s report. Spectra will hire a general manager for $150,000 a year, but the municipality will pay the salary of that position through its overall subsidy of Mosaic Place and the Yara Centre.
“I’m very excited about this agreement and getting Spectra management in our city,” said Coun. Crystal Froese. She lived in Penticton — similar in size to Moose Jaw —when that community hired Spectra to manage its events building. Penticton recently renewed its contract with Spectra for another 10 years.
Council voted 5-2 to approve Spectra Venue Management Services to oversee Mosaic Place for a five-year period. Councillors Brian Swanson and Scott McMann were opposed.
Council discussion
The contract indicates Spectra plans to provide $200,000 as its first contribution so the municipality can use that money to improve the building and help with transition costs, said Coun. Heather Eby. To her, that shows Spectra “has skin in the game” and is putting money in before taking any out.
Mosaic Place has gone through ups and downs over the years, said Coun. Dawn Luhning. No management system has worked perfectly there; putting Spectra might not be perfect either, but Luhning didn’t know what else council could do.
“We disbanded the board. The city manager can certainly not do that job and the staff at parks and recreation cannot do that job (either),” she said.
Although Luhning had reservations about hiring Spectra, she noted it’s possible the company might very well succeed in managing the building.
“I believe it is the right way to go at this point,” she added.
Swanson did not support “farming out management” of Mosaic Place. He pointed out council’s desire is to see 10 to 12 events at the building per year, but the contract indicates Spectra does not have to guarantee any events there at all.
His other concern was Spectra could book a concert or event, but not be responsible if the event lost money; council would have to come up with extra money.
“When we have a third-party management agency that can lose money and send the bill to the city, and we have no control over what they’re doing, that should be enough to scare people at this table,” he said, adding there will be a lack of transparency and accountability with this choice.
Puffalt thought Swanson was “splitting hairs here” and didn’t see much difference between the former Downtown Facility and Field House (DFFH) board and council since both were elected bodies. He pointed out Spectra will provide monthly reports to council and the finance department.
Hiring a third party to oversee Mosaic Place was one option in a legal report produced a while ago, said Coun. Chris Warren. He pointed out council is not looking to repeat the mistakes of the past in managing the building. If Spectra is successful, then Moose Jaw will be as well.
Mosaic Place was built to be an economic driver and to bring people here, said Mayor Fraser Tolmie. Spectra understands that, which is why it is being brought in on a five-year contract and will have to perform to keep that agreement.
The next regular meeting is July 22.
