City maps out ‘a new game’ in the development of Abbotsford Entertainment & Sports Centre

ABBOTSFORD, B.C. – The City of Abbotsford is pro-actively addressing the future of the Abbotsford Entertainment & Sports Centre with a new strategic direction entitled “A New Game”, an integrated approach to the development of the facility that is founded on securing revenue-positive anchor tenants, establishing improved operating agreements and increased community access.

Setting out a series of key strategies for the future of the facility as an important regional hub in the Fraser Valley, Mayor Bruce Banman today announced that the initial precursor of “A New Game” is the departure of the Abbotsford Heat of the American Hockey League effective after the completion of the 2013/14 regular season and playoffs.

The strategic direction’s major components – most notably the provisions for expanded community access and the revised terms of engagement with Global Spectrum, the operators of the Abbotsford Entertainment & Sports Centre – will be phased in immediately after the conclusion of the existing contract between the City of Abbotsford and the Calgary Flames (Abbotsford Heat of the AHL) as of June 30th, 2014.

A payment of $5.5 million – which is being allocated from the City’s 2014 operating savings and unappropriated reserves, meaning there will be no property tax impacts – will allow for the termination of the existing 10-year supply agreement which was struck in 2010 as part of the launch and establishment of the Abbotsford Heat Hockey Club.

“We have negotiated a termination that will cost the City less than half of what our losses would be on the basis of projections related to five more years of the AHL team playing here on the existing 10-year contract,” said Banman, speaking on behalf of Abbotsford City Council.

“There is absolutely no question in our minds that taking this step with the Abbotsford Heat is the best scenario financially for the City and our ratepayers.”

Banman thanked Calgary Flames President and Chief Executive Officer, Ken King for the approach the NHL club has taken in working with the City on the relocation of the Abbotsford Heat, accepting approximately 50 cents on the dollar when there was no legal obligation for them to do so. It is estimated the terminated agreement will save the City at least $5 million over the next 5 years.

“Equally as important as finding new revenue-positive anchor tenants for the facility is our renegotiation of the building management and operations agreement with Global Spectrum to further lower costs,” said Banman. “We acknowledge and appreciate the willingness of Global Spectrum to work with us as true community partners in the development of our ‘A New Game’ direction.”

A New Game also addresses the future of the building as it relates to expanded community access, the terms of reference for new tenants and new revenue streams such as naming rights.

In the interim, the facility will be renamed the Abbotsford Centre. The City is already actively pursuing new tenants for the facility as well as naming partners.

“Abbotsford City Council has given some very clear parameters under which the City Manager is pursuing new anchor tenants for the Abbotsford Centre,” said Banman. “In a nutshell, any new tenancy agreement for the Abbotsford Centre will be a public document that will have the best interests of the community and the ratepayers at its heart. We will not contemplate subsidizing private businesses and we will ensure that ongoing community use of the facility is a major emphasis.”

Press release courtesy of Marketing & Strategic Planning, City of Abbotsford. 15 April 2014.