Anvil Centre is becoming a cultural hub for the Royal City but it comes with a cost.
The city’s budget forecasts that Anvil Centre’s operating budget for 2016 will require a $2.9 million operating subsidy, which is comparable to the 2015 budget and actual figures. With 2015 being the facility’s first full year of operations, the city anticipates “normalization” of its revenues and expenses to occur over the next couple of years.
New Westminster resident Philip Walinshaw appeared before council Monday night to question costs relating to Anvil Centre, which represent about one-third of this year’s 2.73 per cent property tax increase.
“The Anvil Centre of course has only had one full year of operations. It started up in late 2014 – 2015 was its first full year of operations. It’s basically really trying to normalize its revenues and its operating costs,” said Gary Holowatiuk, the city’s director of finance and information technology. “When we budgeted for 2015, the budgets were probably a little bit off-skew because we didn’t have a whole heck of a lot of experience.”
A staff report indicates revenues for the conference centre exceeded projections, but arts, rental and third-party revenues were below budget. The report states there were fewer productions in the Anvil Centre Theatre than what had been anticipated and the facility’s expenses were higher than what had been forecast.
Anvil Centre is projecting its conference services will see “a modest deficit” in 2016 and will break even in 2018.
“Industry norms for a new event venue reflect three full years of operations to realize a break-even budget,” stated the report. “As event bookings increase over the next two years, Anvil Centre conference services is on track to break even or realize a profit in the third full year of operations.”
In a report presented to council on Monday, staff indicate Anvil Centre’s revenues are expected to increase in 2016 as a result of more bookings for the conference centre and more productions in the Anvil Theatre.
Walinshaw questioned some of the capital expenses relating to Anvil Centre included in this year’s budget, including $100,000 for lighting and $438,000 for the construction of a corridor and some other spaces between the Anvil Centre lobby and the office tower lobby.
Holowatiuk said the corridor was something that arose during negotiations with the purchaser of the office tower. He said it’s considered an amenity to the office tower and Anvil Centre, allowing patrons to access Anvil Centre and the restaurant via the office tower’s lobby.
The money for lighting at Anvil Centre will enable the ballroom lights to be dimmed during events, rather than renting scissor lifts and having staff physically unscrew lights to meet clients’ needs.
Walinshaw also questioned the $395,000 budgeted for work needed to lease out the building’s restaurant space. Holowatiuk said the work being proposed is for tenant improvements to the potential restaurant space, something that’s often part of leasing agreements.
