Chatham-Kent council mulls changes at Convention Centre

By Pam Wright
Local Journalism Initiative Reporter

Chatham-Kent has decided to take another look at managing the John D. Bradley Convention Centre.

At a recent meeting, council directed administration to examine alternative solutions, rather than ink a five-year contract extension with Compass Group Canada.

The action came following a motion put forward by South Kent Coun. Anthony Ceccacci, recommending the municipality negotiate a clause for a shorter-term contract extension with the ability to end it if other options become available.

“I think that locking into a five-year term without going out for bid again might be challenging,” Ceccacci told council, adding that redevelopment in the area – including the revamp of the old Navistar property – may bring other options.

“I trust that staff and administration would have the conversations and if there are any challenges, bring those challenges back,” Ceccacci said.

East Kent Coun. Steve Pinsonneault said he agreed with the Ceccacci’s motion.

“I was hoping that at some point we were going to get to a break-even point here,” Pinsonneault said. “We were promised that in the beginning. I realize we went through COVID. I think a shorter term is good and if we do get all that growth across the road, maybe we can get this closer to a break-even point.”

According to a report from administration, the municipality currently budgets $350,000 annually to operate the centre, which includes a management fee.

During the pandemic, the report said Compass Group Canada worked with the municipality to turn the site’s exhibition hall into a temporary shelter for people facing homelessness. A total of 55 beds were made available with warm meals and other supports provided.

The site then became Chatham-Kent Public Health’s COVID-19 vaccination clinic for just over a year.

In response to a question about future costs from Chatham Coun. Michael Bondy, chief financial officer Gord Quinton said the main issue with the cost of running the convention centre is inflation.

“I think the real concerns are the recent inflation escalations involving food and wages to run a convention centre,” Quinton said, noting CGC was the only bidder back in 2018. In June of that year, C-K council entered into the five-year agreement, with a five-year extension clause ending in 2028.

Following the meeting, Quinton said an operating loss, based on the experience of the past 14 years, is calculated into the budget.

Quinton said the long-term goal is to “get to a break-even point.” But he said the pandemic had an impact the convention centre is “still trying to recover from,” noting most convention centres require “some subsidization to operate.”

The matter will return to council at a later date.