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More transparency, profits eyed for E.A. Rawlinson Centre

Nov 25, 2014 | 5:41 AM

Prince Albert is renewing its contract for service with Star Development Corp. and with it comes provisions aimed at making the the E.A. Rawlinson Centre’s finances and operations more transparent.

The City will be assuming responsibility for the facility’s operation in the new year after the Prince Albert Arts Board decided to remove itself from that role. The all-volunteer organization opted to focus on fostering the arts and helping to develop a new civic arts policy in the city. This leaves only the City and Star Development at the table.

Community services director Jody Boulet said the move will provide his department with the opportunity to be more well-rounded when it comes to the services it provides.

“We certainly represent … sport and recreation, you know, quite strongly in the community. And we can’t forget that the arts and cultural end of it is [a] very important aspect. And I think that the move that we formally approved tonight is going to really allow us to round out our services and really return to the focus of the department, which is parks, recreation and culture.”

He described its approach with the Arts Board in the facility’s operations in the past as “partnered.” Boulet commended the Arts Board’s work with Star Development to secure sponsorships and volunteer support, which lowered the City’s subsidy to the centre and, in turn, the cost to the taxpayer.

“We’re going to continue to look to improve. With the operation moving over [it] doesn’t mean that things necessarily will remain status quo,” he said.

One of the things he said council wants his department to look at is creating events that generate revenue for the centre and taxpayers. At the same time, he said they will work to maintain the balance with the community – community groups look to access the centre for their programs’ development.

He said Star Development will continue to take the lead when it comes to dealing with promoters to bring in events and acts.

“That end of it won’t change,” he said.

On Monday, in a 6-3 vote, council approved a new contract for service with Star Development starting on Jan. 1, 2015, and running until Dec. 31, 2017. The City or Star Development can terminate the contract with six months’ written notice.

The base value for the contract is $395,500, but the City is allowing for an annual increase to the contract amount in line with the province’s Consumer Price Index.

The City has provided a $242,800 to the Prince Albert Arts Board for the E.A. Rawlinson operations subsidy in the past. The City is expecting the centre to realize $899,600 in expenses and $681,270 in revenues.

The new contract provides for the creation of a new production manager position. The City is looking to Star Development to focus on high profile events and performers, as well work to address gaps in aboriginal and multicultural programming.

Star Developments, too, is looking towards making improvements. CEO Darren McCaffrey said they are looking at ways to increase the training potential through programs offered at the centre. McCaffrey sees more opportunities for development on the technical side and in marketing, as well.

“We need to build the skill bases of our community in order to create new uses for the centre that can grow out of that. And so we really think a commitment the education and exposure to the building will help us do that.”

Star Development, which is responsible for the hands-on operation of the centre, is looking at different ways to generate greater revenues from events outside of concerts. McCaffrey said they are looking at the possibility of bringing in business seminars during the day, developing a theatre component.

As well, they’re looking at ways to develop new sponsorship partnerships. McCaffrey said he spoke to a potential new sponsor this week.

When it comes to the financials, Star Development will be required to provide quarterly statements of all revenues and expenses. It’s also required to keep an accurate account of expenses for materials, equipment and services.

Boulet said the reporting will also include information about the general operations of the centre.

“As we go about doing our business at that location, we’ve committed to regular updates with council formally at council, so that they understand the financial status, but also different decisions that are being made around the operations,” he said, and added it’s important that council remain in the loop on all areas of the department’s operations.

“We’re very pleased that Star’s willing to do that as well, and I think it will lead to a more transparent reporting structure.”

It’s a contract that one of the councillors that voted against it contends is too rich. Coun. Charlene Miller first made that declaration during the budget committee meetings last week, and she maintains that view.

“There’s a couple of people who have raised concerns with me about the $330,000 that he [Star Development] was getting, and so I think we should have stayed and toed the line for the next couple of years for his contract, and then see what happens after that,” Miller said after the council meeting.

McCaffrey said he’s unsure what Miller was basing her statement made during the budget proceedings on.

He said a lot of other civic facilities don’t have a lot of the programs Star Development offers on behalf of the facility. Star Development runs the Broadway North program, the education program, as well as its own programming.

“I don’t know many other civic facilities that do that type of programming as well as run the facility,” he said.

“And if you look at our contract amount and the new contract amount, and if you look at the salaries and benefits of all of the different facilities, compared to the amount of revenue that we drive, for this facility, compared to the other facilities, I’m not sure that I would come to the same conclusion.”

tjames@panow.com

On Twitter: @thiajames