Management of the St. John's Fog Devils hockey team believes Mile One Centre would run more smoothly if it were turned over to the private sector, but would still need public money to operate.

Brad Dobbin, governor of the major junior hockey team, was responding to a call from St. John's Coun. Frank Galgay, who suggested the city should consider privatizing Mile One, rather than increasing its annual subsidy to money-losing stadium.

Mile One Centre has required subsidies from the City of St. John's since it opened in 2001.
(CBC)

"I do think the building could probably be run a little more efficiently if it was in private hands," Dobbin told CBC News.

"[But it] would always go looking to the city for some type of subsidy — just the nature of running a building of that size in our marketplace."

City council voted Monday evening to hike its annual subsidy to St. John's Sports and Entertainment — which runs Mile One and the nearby St. John's Convention Centre — from $1 million to $1.5 million.

Councillors voted 7-3 to increase the subsidy, on the heels of an independent economic impact study which found Mile One and the convention centre generate more than $20 million in spinoffs for the city's economy.

Galgay said the city could still reap those benefits with a private operator, but would not have to absorb the operating costs.

"Large buildings of that nature are going to need revitalization," Galgay said. "They're going to need repairs, and heavy capital expenditures as the years go by."

The Fog Devils became the anchor tenant for Mile One after the St. John's Maple Leafs — the Toronto farm team for whom Mile One was largely built — left for Toronto in 2005.

The owners of the Fog Devils, which play in the Quebec Major Junior Hockey League, tried to buy the stadium while negotiating a tenancy deal, but the city rejected the offer.

Dobbin said Galgay's idea is worth considering again, but cautions a private, stand-alone facility may not be feasible.

"It's always going to be a challenge to run a building of that size in Newfoundland, and that some amount of government support might be appropriate," he said.

The Fog Devils are now playing their second season, but are struggling to fill seats. A recent weekend series saw the stadium only half full.

St. John's Sports and Entertainment has been emphasizing entertainment over sports this year. It changed the name from Mile One Stadium to Mile One Centre, and has focused on attracting performers like INXS, Willie Nelson and Michelle Wright.

Meanwhile, Galgay said another option to help cover costs is to seek a corporate sponsor to put its name on the facility.