CBRM council votes to take ownership of struggling North Sydney arena

Cape Breton regional councillors have voted to take over a financially struggling arena in North Sydney, N.S.

The Emera Centre Northside was built by community volunteers and is now debt-free, but the group running it couldn't keep up with the operating costs.

On Tuesday night, CBRM council voted 10-1 in favour of taking over the facility.

Coun. Earlene MacMullin, whose district includes the arena, said the community was asking the municipality to take over and council could not afford to lose a vital community asset.

"If you have to turn over ownership, this was the best-case scenario," she said. "I really have no idea what would have happened otherwise."

The facility contains an ice rink, change rooms, an event room with a kitchen, storage space for local hockey teams, a canteen and an indoor walking track.

It was built 12 years ago with $12 million, consisting of government grants and loans that have now been paid off.

Two years ago, the community board asked CBRM to forgive a $172,000 outstanding loan, which it couldn't pay and was holding the board back from accessing municipal grants.

Council voted 9-4 to erase the debt, with some councillors expressing concern about the arena's financial viability.

According to a staff analysis this month, taxpayers will have to kick in $250,000 a year to keep it going.

Coun. Steve Parsons voted against the council motion, but said he wasn't against supporting the arena.

Parsons said he just wanted an engineer's report on the building first.

"I don't want to add other liabilities to the CBRM without doing the formal investigative work that is required when you take over an asset," he said.

"I wasn't against … taking it, but I wanted to do the due diligence in terms of what are we taking over."

CBRM facilities manager Paul MacDonald said the building and ice plant are in very good shape, but the municipality will have to consider adding events to increase revenues and reduce the operating subsidy needed.

Lloyd Wilkie, chair of the community board that runs the arena, said he was pleased with the vote.

"We're going to run out of money, so I'm guessing what would have happened is that it would then become a public issue, but fortunately that didn't happen and I appreciate council for the decision they made tonight," he said.

Wilkie said CBRM staff have been helpful in the past and he is looking forward to having the arena host more activities.

Councillors urged the administration to do everything they can to keep the arena's three non-union employees, but were told the jobs likely have to go to workers already under a collective agreement with CBRM.