Saskatoon council rejects proposed manager for downtown entertainment district

Oakview Group 360 will not be the new venue manager for the future Downtown Event and Entertainment District (DEED) in Saskatoon.

A recommendation which proposed that group to manage the new downtown arena was voted down 5-3 on Wednesday afternoon at Saskatoon City Council. The council voted not to enter an agreement with OVG 360, which means city administration will cancel the procurement process.

Saskatoon city administration had prepared two reports outlining very different options on the future of the DEED.

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After the vote, Saskatoon mayor, Cynthia Block – one of the three votes in favour of moving forward with a partnership with OVG 360 – said having a private partner is just one option for the city’s future downtown.

“That is not Saskatoon’s only option and we know that the folks that spoke today are not the only people that are interested in ensuring that this moves forward,” she said.

“Does this feel a little bit anti climactic? Perhaps, but I don’t think that we should count ourselves out at all. We are a city that rises and we will get up tomorrow and figure out what the next strategy is to make sure that this can move forward nicely.”

After voting against the partnership, Counsellor Bev Dubois cited Canada-U.S. relations as part of her reasoning.

“Things have changed in the U.S.,” she said. “A lot has changed there since we brought the motion forward to bring a private partner on and I just feel that in the landscape that we are in right now –looking to amalgamate SaskTel center and TCU Place – and looking at the fact that both of those controlled corps, they have profits, they are doing a good job with the facilities that they’ve got to run right now.

“If they had larger, more modern facilities, I believe that they can run a good run a good facility and make lots of money,” Dubois said.

Next steps

Terry Schmidt, construction and transportation general manager with the city, shared what the potential next steps are on this issue.

“At this stage, there’s a growing need to re engage key partners like business tourism and the event and entertainment sector so advocacy is coordinated and the case for investment is broad based.”

He said as part of that, city administration will refresh the terms of reference for the advisory group “to strengthen participation and focus the group’s work on intergovernmental advocacy.

“The focus right now is on refining the funding plan, strengthening partnerships and pursuing senior government participation, so that when decisions come forward, council and the public can see a complete, realistic funding plan before any detailed design or construction proceeds,” Schmidt explained.

In a city statement from Dan Willems, director of technical services, he said the City of Saskatoon will continue towards making the downtown district a reality.

“The vision remains a Downtown where people can live, work and play, supported by modern event and entertainment venues that strengthen our economic and cultural foundation,” he said.

Council considered plans for proposed private partnership

The entertainment district project included an arena and conference centre in the city’s core, along with improvements to the surrounding areas. City councillors were expected to consider options around the management of the facility at a meeting on Wednesday morning.

“The reports focus on how the City can continue progress toward building a vibrant Downtown, including work on a long-term funding strategy regardless of Council’s decision on a proposed Private Partner agreement,” the city noted in a news release issued on March 18.

The first report provided additional information requested by council around a proposed private partnership agreement with Oakview Group 360, a Denver-based venue-management firm. It’s was expected to include financial projections, fees and commissions, performance management data and other reporting.

“The agreement will also address important community benefits including maximizing economic opportunities for traditionally marginalized groups, employment that will work with existing employees and unions and benefits for community non-profit events,” the statement read.

A second option will outline a “city-building” initiative, but no additional information on what that might mean was included. Trevor Jacek, SaskTel Centre’s finance chair, and Elanne Krainyk, TCU Place’s board chair, have both requested permission to speak at the meeting.

In a statement issued in January, Jacek signaled his organization would be eager to run a new arena and conference centre in the city.

“We’re confident that the SaskTel Centre team can effectively operate the (Downtown Event and Entertainment District) if the City decided to not engage a third- party operator and are grateful that we were able to share that message with the Mayor as well as City Councilors, Administration and members of the business community that attended the event,” he said in the statement.

TCU Place CEO Tammy Sweeney backed that idea.

“If we can raise local capital to be able to match or exceed what Oakview Group is bringing to the table, and we have the expertise to run it… then it makes sense to stay local,” she said.

Without sharing names, Sweeney suggested local groups had already stepped forward and offered to do just that, and she said they may bring even more money to the project than OVG 360.

However, the recommendation from administration is that the private partner framework with OVG 360 be approved, and that the city move forward to negotiate a “master agreement.”

No matter which option is approved by councilors, the city said work will continue toward making the entertainment district a reality, including working with other levels of government in efforts to secure funding.

At this point, no funding for the project from either the provincial or federal government has been approved.