Ottawa approves $1.4M bailout for Bell Sensplex
Last Updated: Thursday, April 26, 2007 | 11:51 AM ET
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Ottawa council has approved $1.4 million in extra funds to keep the Bell Sensplex afloat for the next three years, spurring a debate about the city's involvement in public-private partnerships.
Council voted Wednesday to approve the bailout for the for-profit, privately-managed sports facility in Kanata.A tournament takes place a few months ago at one of the four rinks in the Bell Sensplex, which also houses an indoor sports field.
(CBC)
The facility, which opened in December 2004, is managed by Capital Sports Management, an Ottawa Senators affiliate.
It was built with financing from a group of private companies, but the city guaranteed the debt through the Municipal Capital Facilities Agreement. The city also waived the facility's property taxes and development charges, buys 2,400 hours of ice time annually from the facility to resell to the public and contributes $250,000 each year to the facility's operating reserve.
Councillor says city should take over facility
The Bell Sensplex bailout raised discussion in city council Wednesday about the city's increasing involvement in public-private partnerships, or P3s.
Coun. Alex Cullen opposed the bailout, arguing that the city should take over and run the facility like community centres and hockey rinks built in the past.
"We owned them, we operated them," he said. "And one of the reasons why we do so is to ensure, first of all, that we can provide the services that our public wants and that we are not in the business of generating a profit for our shareholders."
But Mayor Larry O'Brien countered that times have changed and the city can't afford to build and operate all such facilities on its own.
"Now we have to look for other ways to engage the private sector and engage other organizations to help us as we continue to build this city," he said.
"This isn't a perfect solution.… It's the unfortunate circumstance that we find our city in but it is a reality and I think facing that reality is important."
City to keep tighter watch on P3s
That led council to pass a motion calling for the city to assess its P3s annually to see whether they are meeting expectations.
The 16,700-square-metre Sensplex houses an indoor sports field, one international-sized ice rink and three NHL-sized ice rinks, including one that is used as an alternate practice rink by the Ottawa Senators. It hosts training, tournaments and programs in hockey, speed skating, soccer and other sports.
The city has a 30-year agreement with its private partner for the facility, Ottawa Community Ice Partners (OCIP), which includes the Ottawa Senators Hockey Club, the Ottawa Senators Alumni and Morley Hoppner Group.
The city is to buy the facility and land for $1 at the end of the agreement.
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A tournament takes place a few months ago at one of the four rinks in the Bell Sensplex, which also houses an indoor sports field.
