The Squamish Adventure Centre costs the municipality an average of about $90,000 a year, an amount that elected officials are trying to clamp down on.
On July 27, municipal staff presented council with options that were available for revitalizing the building, which serves as a hub for attracting tourists to town.
During this presentation, economic development officer Kate Mulligan revealed the Squamish Sustainability Corporation, the municipal entity responsible for the adventure centre, was operating at an annual deficit.
This year, the centre is predicted to incur a net loss of about $94,000.
Last year, which was also the year COVID-19 ravaged much of the worldwide tourism industry, the corporation had a net loss of $141,000.
In 2019, it rang up a loss of about $85,000.
Council asked District staff to find a way to make the building a cost-neutral operation for the municipality.
“In terms of increasing public usage of the space, I think for me the priority would be to get to that cost-neutral position, while exploring the retail space available moreso,” said Coun. Jenna Stoner.
“If we still have a shortfall that we are currently seeing or something close to it, what I would be looking for is a stronger narrative, so perhaps not a full exploration of what those public uses could be, but at least some narrative around where our other real estate facility needs or other strategic priorities could fit into using that public space to help justify why we would be continuing to provide a subsidy to that building in the long term.”
This was one piece of feedback that was given to staff, who are expected to take council’s comments and adjust their proposals on how to revitalize the aging facility.
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It’s a process that was started as a result of a $700,000 funding grant from the province.
The District applied for B.C.’s Tourism Dependent Communities Fund to support revitalization efforts for the Squamish Adventure Centre.
The province awarded the municipality the money to complete upgrades to the facility, which must begin by Dec. 31.
As part of the planning process for the upgrades, the District created a task force that’s intended to guide the process.
They provided council with several options on how to revitalize the facility and its operations on July 27.
These options were to increase revenue from food and retail; get a sponsor to name the building, or increase the leasable area in the building.
Ultimately, staff recommended a hybrid of the three options.
Mulligan said this would best balance council’s guiding principles for the centre, such revitalization, cost-neutrality and increasing tourism, among others; however, it would still require subsidies from taxpayers to pull off.
“The hybrid will not fully meet break-even, including the capital expenses required to maintain the building over time,” said Mulligan.
“Of the options explored, no option, including the hybrid, results in a full break-even for the building, including capital expenses, however, while this is the case, the hybrid option has the potential to meet many of the principles endorsed by council, especially those aligned to tourism promotion.”
Council was leery of the potential costs.
Coun. Doug Race said that it was unusual for the municipality to provide substantial subsidies to any one business sector of the town — in this case, the tourism industry.
Race said there should perhaps be an effort to widen the building’s benefit to the community, for example, providing space for the local arts and culture scene.
This could help justify the cost of subsidizing the facility, he said.
Tourism Squamish chair Kirby Brown replied that tourism is an industry that benefits the entire town, not necessarily one sector.
Brown said a tourism hub like the adventure centre becomes a welcoming point that invites people to partake in the rest of town, either as a visitor, or, eventually, as a person who moves to Squamish permanently.
Elected officials made a number of points but emphasized that staff should pursue cost-neutrality for the building.
Staff will redraft options for revitalizing the adventure centre and bring them to council at a later date.
