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Multiplex concession to be bid out to private sector

Penhold town council opted to open the multiplex concession to bids from the private sector and enter into a three-year lease once a successful bidder is determined.

Penhold town council opted to open the multiplex concession to bids from the private sector and enter into a three-year lease once a successful bidder is determined.

During the June 25 council meeting, a report given to council indicated administration had recommended town staff run the facility in a similar manner to the fitness centre at the Penhold Regional Multiplex.

“We have an opportunity to be in control of our own destiny,” read the comments from administration included in the report prepared by Derek Crichton.

The administrative comments suggested having the town run it would mean revenue opportunities would be optimized and the “level of flexibility” needed to meet patron requirements would be met.

The same report indicated council had rejected that idea during an in-camera committee of the whole meeting.

“If the private sector can operate the venues then as a municipality we should allow private sector to do the work,” reads the summary of council's comments.

During the regular council meeting, councillors rejected a suggestion from administration that only a one-year lease be offered to a successful bidder.

Chief Administrative Officer Rick Binnendyk said this was because previous tenants haven't fared well and they wanted to see how the new business did.

“One season seems awfully short,” said Mayor Dennis Cooper.

Coun. Chad Hoffman suggested that terms be built into a lease that will help address any issues that arise.

Coun. Danielle Klooster said “any sensible business person” would look at a one-year lease and decide they weren't going to pursue the opportunity. She suggested a three-year lease.

Coun. Wendy Dodman went further and suggested a five-year lease, but later amended the motion she made to three years.

Cooper suggested that the start term for the new vendor be Sept. 1 instead of when the ice goes in in August, suggesting accepting bids, selecting the successful bidder and getting them installed at the multiplex by mid-August is “almost impossible.”

The motion to have a three-year lease was passed, with only Coun. Kathy Sitter voting against the motion.

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