Beach council eyes hostile takeover

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Council looks to appoint new rec board

By Jim Mosher
Sunday July 18, 2004

The Winnipeg Beach Municipal Recreation Centre was built in 1979-80 at an estimated cost of $1.2 million. It’s current value, based on replacement cost, is pegged at double that amount.

WINNIPEG BEACH -- A move by town council to dissolve the board of the Winnipeg Beach Municipal Recreation Centre may fall on a legal sword.
The volunteer rec centre board learned last Monday in a letter from the town that it is the town’s intent to dissolve the board.
But the past history of the board and its arm’s length relationship with the town suggest to some that the town does not have the legal power to summarily dismiss the board and replace it.
Larry Moore, a past president and member of the board since 1981, said there had been no prior discussion about a dissolution of the board or a restructuring.
Moore learned of the town plan while vacationing in the United States.
He said council never disclosed to the board that such a plan might even be at the talking stage.
“It’s never been contemplated by us that this would even be a consideration,” Moore said Wednesday morning shortly after his return to his home in Winnipeg Beach. “It came out of the blue.”
Moore says the rec centre board has always worked at arm’s length from the town. The town owns the land upon which the Hamilton Ave. rec centre, built in 1979-80, sits. It ‘probably’ owns the building, too; though given that the rec centre operates autonomously, with the infusion of annual grants from the town, this is a point that could be argued.
There’s also a legal sticking point regarding a takeover of the board and the rec centre by the town, Moore suggests.
“Just on the face of it, I would say they have no legal right to do it [dissolve the board],” he said.
“Our’s is a legally-formed board using a constitution as the basis of operation,” he notes. “It’s never operated as a town facility. It’s always been operated at a very deep arm’s length from the town.”
Mayor Don Pepe defended council’s decision to consider a restructuring. He notes that the town is on the hook for the rec centre’s debt, which is pegged at nearly $90,000. As well, the mayor says that council believes enhanced activities at the centre could boost revenues and decrease the centre’s reliance on municipal funding.

Aside from the town, the recreation centre’s revenue comes from ice rentals and the proceeds of bingoes. It has staged some large events in the past, including wrestling, boxing and an ABBA tribute concert last year.
On the ice rental side of the equation, the rec centre charges local hockey teams and figure skaters an hourly rate of $40, up from $25 last year. Adult rec hockey teams from Petersfield and Selkirk pay $75 an hour. It’s estimated that it costs $65 an hour to operate the centre’s ice plant.
Revenues from ice rentals amounted to $16,000 last year. It costs about $60,000 to keep the rec centre open each year.
The centre once relied heavily on bingo and proceeds from break-open tickets. However, the arrival of VLT gaming has taken a bite out of that revenue pool, forcing the centre to rely more heavily on the town and fundraisers. The volunteer board of the centre, often in partnership with the town which assisted in staging events, raised $40,000 last year alone.
The town will provide $30,000 to the rec centre this year, including $10,000 directed to the debt, $10,000 to operational costs and the $10,000 it pays to cover the centre’s insurance cost.
The town move -- now just something ‘under consideration’, says Coun. Daryl Carry, a director on the eight-member rec centre board -- may have been precipitated by a board decision in late June to increase ice rental rates for local teams to $40 from last year’s $25 an hour. Council had recommended an increase to $50.
Two weeks after the centre’s board voted for the compromise rate, Mayor Pepe had penned his letter regarding the appointed-board municipal model.
Mayor Pepe says the issue of dissolving the board and replacing it with one that is appointed by the town is a consideration. There’s been no decision made, he said.
“We would like to see an appointed board,” the mayor said. “That doesn’t mean we would be disbanding the current board. But there is a $90,000 deficit; the centre is losing money every year. Under my mayorship, I don’t want to see that place close.”
Pepe says council wants to “strategize” as a partner with the existing board to answer the rec centre’s challenges. “Just giving the centre $10,000 or $30,000 and still going in debt ... it doesn’t work.”
The mayor rejects the notion that the town has no legal right to change the board and establish a clear mandate.
“If we really want to do that, we don’t need their permission,” he said. “But that’s not the way we work. Some on the board are under the understanding that there is nothing the town can do. No. That’s a community centre -- and it’s the community that elected town council.”
Al Chopp, president of the rec centre board, says some members were upset when they learned of the town’s proposal. Chopp, though, acknowledges that the town “is on the hook” for the centre’s debt.
“You can see from their standpoint, they are the politicians and they do have to ultimately answer to the people who elected them,” he said. “They are on the hook for the tab.”
Still, he says, some members are the board are upset by the town move. “I believe there’s been some bad feelings created between some members of the board and council,” he said.
Chopp says the legal arguments may be moot. He doubts the rec board would be willing to sign for the centre’s debt.
Whatever the case, Chopp says, a decision is needed sooner rather than later. “I don’t think it’s good for this to be hanging over our heads,” he said Thursday. “It’s hard for us to begin the process of hiring an icemaker or preparing for our annual general meeting only to find out a week or two down the road that we are not going to be the ones making the decisions.”
While Pepe praised the board for its efforts, noting the rec centre raised $40,000 last year, he says some members seem intent on shutting out council. He says council is prepared to work with the board to expand activities. “But some members seem to have a one-track mind,” he said. “This bickering that’s coming out right now, I’m not too happy. I thought we had a good open mind for communication.”
The rec centre board meets Tuesday at 7:30 p.m. at the Hamilton Ave. community centre.
Asked whether the board could be expected to resist a town takeover, Chopp was unsure.
“It’s an interesting question,” he said.
Long-time board member Moore reiterated his opinion in a subsequent interview.
“We are an incorporated, non-profit, registered entity,” he said. “They [council] can’t change the board.”

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