Cancellations cost Keystone Centre $2.1M

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This article was published 13/05/2020 (2066 days ago), so information in it may no longer be current.

The Keystone Centre is estimated to lose approximately $2.1 million as a result of COVID-19-related event cancellations, but there is a positive side, according to board members. 

With the cancellation of major events such as the Royal Manitoba Winter Fair, Manitoba Summer Fair and Canadian National Arabian and Half-Arabian Championship, the events centre has lost millions of dollars, Coun. Bruce Luebke (South Centre) told Brandon City Council Monday evening on behalf of the centre’s board. 

Current provincial restrictions on activities and group sizes make it impossible to hold large-scale entertainment events. 

Under the pandemic-related public health orders, gatherings of more than 10 people are banned.

Buildings such as the Keystone Centre will likely be among the last to open, Luebke said, which adds uncertainty to the situation.

“Management is working on some new concepts and ideas to generate some revenue for the facility, but hosting large events and gatherings is several months away,” he said on Monday.

While the building is closed for public events, general manager Jeff Schumacher said staff have been redeployed to cleaning and maintenance projects they previously haven’t had time for. The building is currently operating like it does over the summer, when fewer indoor events are held.

“We’ve kind of shifted gear, so we’ve done a lot of work around the venue,” he said. “This is the most work we’ve ever been able to do because — typically, we’re too busy. So, that’s the good news if you look at the glass half full.”

The reopening process will likely be slow, starting with local and regional events, Schumacher said. Large concerts and sports are likely out of the picture until at least late fall. On the bright side, when the public is allowed back in the building it will look better than ever, he said.

The Keystone Centre has been able to access federal supports to help cover the cost of employee wages. Schumacher said approximately 90 per cent of employee wages are covered, which puts the venue in a good position on that front.

Schumacher said he himself has taken a wage cut, but all the events staff, such as bartenders and servers, were laid off.

Luebke said the board is in conversation with the provincial government, which funds the centre in partnership with the City of Brandon, on financial help. The board may have to access the centre’s line of credit in the fall to pay operating costs.

“It would be safe to say that the province is very aware of the Keystone Centre’s predicament at this point. How active those conversations are at this point I’m not 100 per cent sure,” he said.

The venue’s management is able to manage the situation for the time being, Schumacher said, but the situation will become more pressing in the summer and fall. For now, the province has enough to deal with managing the pandemic.

“We’re not concerned,” he said. “We’ll have conversations when the time is right.”

During a Tuesday morning press conference, Premier Brian Pallister said he wasn’t aware of any current discussions between the provincial government and the venue’s management, but touted the province’s previously announced support for it. Last year, the province retired the Keystone Centre’s $2.9 million in debt and provided $375,000 in operational funding.

Once more restrictions are lifted on group sizes, there may be an opportunity to hold events the Keystone Centre might not regularly host, Schumacher said. The building has lots of space, so that could be an opportunity to provide room for people to socially distance at smaller-scale events.

 

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