Mile One Centre in St. John's received approval Monday evening for a $1.5 million subsidy from city hall. (CBC)

Mile One Centre, a large arena and concert venue in downtown St. John's, is still depending on a city subsidy to operate, but not as much.

City council approved a $1.5 million grant Monday for St. John's Sports and Entertainment, the board that runs Mile One and the nearby convention centre.

That's down from the $1.75 million city hall provided last fiscal year. A $2 million subsidy was made available the year before.

The board has cut costs in the last two years by laying off a third of its staff.

Councillors were told Monday night that Mile One has saved money through building improvements and maintenance, and the board expects the convention centre to earn about $600,000 more next year.

Danny Breen, city council's representative on the Mile One board, said it has been a good year.

"There's been a great success there at Mile One and the convention centre, in terms of improving the financial position."

Coun. Tom Hann, who in the past has been critical of the money city hall has put into operating the facilities, said he now believes the place is undergoing a turnaround.

"It wouldn't surprise me," Hann said, "seeing what they've been doing over there up to this point in the year, they may come in with a little surplus."

Mile One Centre has been losing money since it opened in 2001 as the new home for the St. John's Maple Leafs hockey team. However, the Toronto Maple Leafs moved its farm team to Toronto in 2005.