City opening discussion on non-profit hall rental rates

Rental fees charged by the city for community halls is preventing non-profit organizations from being able to make a profit, according to Ward 2 Coun. Jacques Barbeau.

For example, the rental fees charged to the organizers of the Walden Winter Carnival are cutting into their profits to the point that, at the end of the day, it doesn't make it profitable to even rent the facilities, he said.

“I'm hearing that from many community groups,” Barbeau said.

Other members of the committee shared similar stories.

Ward 11 Coun. Terry Kett, vice-chair of the community services committee, said he has a bill from the city for $360 for the rental of a snack bar during Sudbury Winterfest, and volunteers even washed the floor after using it.

Ward 10 Coun. Frances Caldarelli, chair of the committee, said she is using some of her Healthy Community Initiatives funding to pay for ice rental for the upcoming fire services vs. police services hockey game, “so they can make a profit.”

A review by city staff determined that, on average, 86 per cent of hall bookings are from not-for-profit user groups, which includes community organizations, minor sports, and city-run programming. This group generated $10,959 in rental revenue in 2010, which accounted for 13 per cent of the total $82,650 generated through hall rentals.

Effective April 1, there will be a slight increase in user fees.

The city categorizes its halls into different tiers, and prices range depending on whether or not user groups are selling alcohol.

For example, when groups book community halls that fall under Tier 1, the price charged when there is no alcohol being served is $100 per day, Monday to Thursday. On the weekend, the price is $167 for one day, or $335 for two to three days.

Those prices increase if alcohol is being served. Weekday rentals are $167 per day, Monday to Thursday. From Friday to Sunday, the price is $335 for one day, or $660 for two to three days.

Tier 4 halls, which lists only Fielding Memorial Park, is essentially the same, but the biggest change comes into play when groups sell alcohol on weekends. The prices will be $1,120 for one day, or $1,700 for two to three days.

City staff put forward two recommendations for the community services committee's approval.

The first option states that, if the user is generating a revenue source during hall use (such as charging admission, tickets sales, 50/50 draws), then the established rates in the bylaw would be charged.

The second option states that if the user isn't generating a revenue source during hall use, they wouldn't be charged at all, and use of the facility would be put through as a grant to each community group user.

Barbeau called those options a “simplified solution” to what the community is asking for. By no means is he looking for it to be free across the board, but many groups contact councillors with hopes of having the rental fees waived, because they “can't generate the revenue to pay the rental fees.”

“I thought we were making progress on this, but nothing has been addressed, as far as I can see,” he said. “It's a good start, but far from what is being asked of us. We need to move this to another level.”

To that end, the committee deferred the decision and directed staff to enter into a consultation period with non-profit user groups. Barbeau said he wants to see representatives from those user groups come to the same table with city staff to discuss the issue.

Catherine Matheson, general manager of Community Development, said it's that type of feedback that will allow the city to continue developing the bylaw.

Posted by Arron Pickard