Adventure Centre capital costs not expected before June
John French - jfrench@squamishchief.com
The District of Squamish will cover the net operating costs of the Sea to Sky Adventure Centre and the Squamish Waterfront Development Corporation (SODC) to the tune of more than $800,000 in 2005.
The two bodies will rely on Squamish's public purse until they become revenue positive.
According to budget documents, the Adventure Centre is expected to have a $328,000 operating deficit over the course of 2005 and the SODC will go more than $500,000 into the red.
"Each of those is separate entities and they will carry their own debt," said Mayor Ian Sutherland. "In the case of either one of them, if they spend more money than they bring in, they will carry debt that will either be held by a bank or the District of Squamish. At the end of the day it will be debt that will not be burdened by the taxpayers of Squamish."
Sutherland is reluctant to talk about the SSAC capital budget for the building between Hwy. 99 and Loggers Lane because there is information pending on the construction costs and the government funding for the project.
"There's one number that counts and that is the final number," Sutherland told The Chief. "I think the schedule we are on now will probably have that final number some time in June. By June the bills should all be in and the centre should be complete. We'll know what our expenses are, what our funding is and we'll go forward from there."
The operations budget for the centre was established as part of the District of Squamish (DOS) budget process.
The mayor confirmed the cost to run the Adventure Centre in 2005 is expected to be $984,195 while revenues are expected to total $655,400.
Sutherland said $130,000 is budgeted to get the merchandising program started.
He noted much of the money will go to one-time costs in setting up the merchandising initiative.
The next biggest budget item at the Adventure Centre is $141,000 in salaries for the centre's retail manager and clerical staff.
The month-by-month 2005 budget for the Adventure Centre predicts revenues from the centre of $17,325.00 in May, $47,725.00 in June, $123,725 in July, $154,125 in August, $93,325 in September $62,925 in October and November and then $93,325 in December.
"The revenue is based on similar types of operations that have similar types of traffic that this one is going to have," Sutherland said. "It is based on what is going on in other communities. It is based on science; it is a forecast based on real experiences in other places."
Sutherland was not able to say exactly what type of merchandise would be sold.
The five year financial plan for the Adventure Centre projects revenues from the centre reaching more than $1.3 million by 2007. Operating revenues are projected to surpass expenses in 2009.
As the SSAC construction continues the SODC is involved in a whole different kind of construction on the waterfront. New SODC chief executive officer Michael Chin is settling in to help the SODC board of directors make the former Nexen lands ready for sale to people who will develop the bare land.
The biggest SODC expense in 2005 will be Chin's salary. The budget for the CEO salary, benefits, relocation costs and expense allowances is more than $180,000. Another $80,000 is budgeted for support staff and professional development.
Sutherland feels the CEO salary is on the low side for the expectations of the position.
"The members of the board had concerns that the low number might impact the quality of the candidate we attracted," Sutherland said.
Chin comes to the job with significant experience in the development of Vancouver's waterfront."We were fortunate," the mayor said of Chin's decision to come to Squamish.
Other SODC expenses for 2005 include fencing, security, trail and public access maintenance, cleanup, surveying, planning and public consultation initiatives.
On the revenue side for the SODC, the budget shows an estimate of $121,000 and the money is expected to be raised through land and building lease agreements, ship docking fees and site rental for filming or special events.
The land the SODC is in charge of preparing for development has an estimated real estate value of more than $40 million.
