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Grande Prairie Storm seek help from City Hall

Jan 16, 2019 | 2:19 PM

A low-interest loan and a list of other recommendations to help the Storm out financially will be discussed by city council at its next meeting.

The list of recommendations includes zero rent at Revolution Place this year and reduced rent for next season.

Additional recommendations are as follows:

Crystal Catering to operate Storm Lounge midway through the 3rd period of home games, until one hour after game conclusion;
A member of City Council will sit on the Storm board as a voting member;
Storm 2018-2019 business plan to be reviewed by Revolution Place General Manager;
Monthly financial statements, Statement of Financial Position & Statement of Operations to be filed with the City within 15 days of month-end, and annual Notice to Reader statements to be filed with City of Grande Prairie Finance within 60 days of fiscal year-end;
Annual, end of season review of Storm’s operations, with Council.

A report presented to the committee says the ideas would save the team $42,000 this year.

The team budgeted for a profit of $88,600 this season but if approved, the reduced expenses would project the team to see margins of up to $130,000.

Storm Business Manager Eric Hein says the team is heading in the right direction financially.

“It’s not being taken lightly. It’s not frivolous. It’s going directly to our local business’ and clearing up what we need to clear up and then pay back and be on the right path and continue to manage the Storm great; from a Hockey Operations standpoint and a business standpoint.”

The low-interest loan would be for $200,000 at 4.5 per cent interest to be paid back over five years. City staff would identify a funding source.

Hein believes all of this will put the franchise on a new path.

“Previous years’ downturn lead up to the funding request. We’re on the right path. We’re making all the right decisions, reducing our expenses, and we’re being creative with revenue sources, as well. So, we’re trending in the right direction. I think the request just comes from the downturn that we experienced years ago and just clearing that up so we can move forward in the right direction.”

A final decision will come from City Council at their next meeting on January 28th.