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South Okanagan Photos

“To be or not to be” – To spend or not to spend

FROM:

Doug Leahy, CFO Town of Oliver

 

RE:

Community Financial Support – Covid Restart Funds – Venables Theatre

 

RATIONALE:

To identify to Council tax supported organizations that have incurred financial hardship due to Covid 19.

 

OPTIONS:

1. That Council provide a lump sum payment of $32,000 to the Venables Theatre as outlined in the proposal submitted to the Town. That Council provide a lump sum payment of $32,000 to the Venables Theatre as outlined in the proposal submitted to the Town.

2. That Council provide a lump sum payment of $32,000 to the Venables Theatre as outlined in the proposal submitted to the Town; AND THAT the Regional District Area C contribute its proportionate share at a future date.

3. That Council provide a lump sum payment of $18,600 (58%) to the Venables Theatre as outlined in the proposal submitted to the Town; AND THAT the Regional District Area C contribute its proportionate share (42%) at a future date.

4. That the Town does not utilize Covid 19 Restart Funds for organizations governed by the Regional District and managed by local organizations. That the Town does not utilize Covid 19 Restart Funds for organizations governed by the Regional District and managed by local organizations.

Financial:

The Covid Restart Reserve has a balance estimated to be $965,000 as of December 31, 2020. The 2021-2025 financial plan is estimated to further reduce this amount to $900k.

At the March 8th Council meeting the following resolution was adopted:
“That Council direct staff to obtain additional information regarding providing rent subsidies to Frank Venables Theatre renters that are classified as a business and whether the Town would be in contravention of the Community Charter.”

Criteria for use of Covid Restart Funds:
This funding is intended to support local governments as they deal with increased operating costs and lower revenues due to Covid19. Eligible costs will include:

The grant monies that have been awarded is $1.591 k Council previously approved the utilization of $626 k of Covid Restart funds to replenish reserves, increased expenditures due to Covid 19 as well as decreased revenues.

• Oliver Tourism Association

• Frank Venables Theatre

• Oliver Heritage

The Venables Theatre was eligible to utilize the Federal Wage subsidy program in 2020 to offset the decreased utilization of their facilities.

The following is an excerpt from Leah Foreman – General Manager:

“Our biggest concern is whether our renters will be in a position to return when we are able to open. Oliver based renters make up over 50% of our rental revenue and we are concerned that the devastating effect on the arts will prohibit these rentals. In normal operating times, we rent the theatre to local users at a significantly reduced rate. The rate is as low as we can offer due to the costs associated with holding events, but it is still a significant amount to the local renters.

The technician costs are also a significant cost to our renters. What would be most beneficial to us would be an incentive for the locals to return to renting the theatre when it is deemed safe to do so. We are going to need to rebuild our rental base and reduce the risk of losing them as clients.

“Our biggest concern is whether our renters will be in a position to return when we are able to open. Oliver based renters make up over 50% of our rental revenue and we are concerned that the devastating effect on the arts will prohibit these rentals. In normal operating times, we rent the theatre to local users at a significantly reduced rate. The rate is as low as we can offer due to the costs associated with holding events, but it is still a significant amount to the local renters.

Current Oliver based renters of FVT

The Dance Studio
Oliver Music and Entertainment
South Okanagan Concert Society (SOCS)
South Okanagan Amateur Players (SOAP)
Oliver Community Arts Council (OCAC)

CAO COMMENTS:

It is the view of the Town’s Solicitor that the provision of the grant to the Society will offset its own costs of operating the Theatre. The Society’s intended use of the Grant funds to reduce rents is not for the purposes of benefitting businesses. Rather, its intended use is for the purposes of ensuring the ongoing ability of the Society to operate the Theatre. Should the Society not receive the grant, concern for the Society would be that the users could not borne the full cost of rent which would result in those users either leaving the arts or going elsewhere. (Cathy Cowan)

Oliver Town Council will discuss the issue Monday and decide upon one of the recommendations.

Town Council previously gave assistance with this fund to the Oliver Tourism Association and the Oliver Parks and Recreation Society.