BANFF – A petition calling on the Town of Banff to renew the lease for the Fenlands recreation centre’s long-standing family-run concession business has reached more than 770 signatures.
The owners of Oh Bento Banff, who feel they have been treated unfairly by the municipality and believed subjected to arbitrary decisions that hurt their business, started the change.org petition in hopes of getting at least 900 signatures – about 10 per cent of Banff’s population.
“We aim to continue serving you for at least three more years, but we need your help to make it possible,” states the petition signed by Asuka and Toshu Usui along with their son, Yuma, who have had the family-run business at the Fenlands for the past seven years.
“We believe that by seeking an extension of the lease based on the original conditions agreed upon in 2016 and considering conditions similar to Canmore’s Town Recreation Centre, we can contribute to the benefit of the community.”
Oh Bento’s lease agreement with the Town of Banff ends in September 2023.
In April, Oh Bento announced it was closing down, posting a message on Facebook on April 9 to thank the community for support over the years and indicating the municipality’s new conditions for tenancy would be challenging to keep the business viable.
With Oh Bento’s existing five-year lease coming to an end in September, the Town of Banff issued a request for proposals on Feb. 24, with an initial March 24 deadline that was later extended until April 7.
The tender process was extended again until May 26, but no bids were received for the new five-year lease, which would begin in October with an option to renew for another five years if in good standing.
Jason Darrah, the director of communications and marketing for the Town of Banff, said Oh Bento was eligible to participate in the tender process but chose not to submit a bid.
He said a new tender will be issued shortly.
“But first, we are requesting feedback from about 20 Bow Valley businesses, including those that had inquired about the tender,” said Darrah.
“The Town will consider potential changes to the tender based on reasons identified why companies did not bid in the spring.”
Asuka said the family business was purchased in 2016 for $100,000 with expectations of operating for seven years.
She said she is hopeful a three-year extension will help recoup losses associated with the COVID-19 pandemic.
“The past two years of the pandemic have led to a devastating decline in our revenue, with a decrease of over 75 per cent,” she said, noting they currently carry a $60,000 debt from the Canada Emergency Business Account (CEBA) program.
“Our financial situation has become increasingly challenging, affecting our ability to meet obligations such as supporting our family life and child education.”
In 2018, the relocation of the concession vending machine, which previously generated an annual revenue of $10,000, resulted in a drastic 90 per cent decrease in sales, Asuka said.
“We have been compelled to participate in Town events for a total of 25 days during the summers of 2018 and 2019,” she said.
“However, out of those 25 days, 22 days resulted in a deficit as the expenses exceeded the revenue.”
Asuka also said a lack of access to the concessions via the concourse when fitness classes were on also played into the losses.
“We have been forced to close our doors for two days per week during peak hours … I explained that even the people coming for fitness could be our customers?” she said.
“During that time, the children playing hockey come to have dinner on the concourse between the two programs. And I suggested allowing access from the arena door to the concourse.”
Darrah said the Town waived all rent payments from the operator from March 2020 to January 2021 during the COVID-19 pandemic.
He said for the last two years, the Town regularly received late lease payments and alterations in service.
“The Town has encouraged service expansions such as patio service for all the cyclists using the Bow Valley Parkway who park at the Fenlands and expanding liquor licence sales into a section of the arena,” he said.
“The Town granted requests for changes to operating hours and reduced rental rates in 2022 and 2023. The Town has also waived unpaid fees required in the lease agreement, from October 2021 to September 2022, an amount significantly exceeding $10,000.”
Darrah said the Town will continue to work with Oh Bento.
“The Town will continue to communicate and work with the operator about the terms of their continuing agreement, pricing requirements, upkeep and functional operation of their vending machines, as well as to clarify the tender process and the transparent policies that govern the operations of the Banff’s recreation facility in the best interests of the community,” he said.
According to the tender documents that went out earlier this year, the successful business must pay $2,600 per month plus GST in rent to the Town of Banff.
However, an increase will be applied to the rent each year that is equal to the average of the province of Alberta CPI.
Menu pricing must stay the same for the first year of operation, although annual CPI inflationary costs plus an additional two per cent in each year of operation will be allowed, unless otherwise mutually agreed upon by the municipality and the business.
The business must also adhere to the food charter, which means offering ethnocultural meals and Indigenous traditional foods; affordable, fresh, nutritious, healthy meals and snacks; locally purchased, sustainable and ethically sourced products; and fair trade products, such as coffee, tea, sugar, cocoa products and bananas.
As part of the agreement, takeout food service is permitted, while delivery and offsite catering are not allowed under the land use bylaw.
The successful business would also have to donate a percentage of its annual net income to the Town of Banff’s community grants program each year.
“Lease rates in the new tender will remain well below typical Banff market rates for food and beverage property leases, and are comparative with other Alberta municipal recreation facilities lease rates for similar services,” said Darrah.
