BANFF – The Town of Banff is bringing the concession at the Fenlands Banff recreation centre in-house on a temporary basis.
Until a business can be found to operate the concession following two unsuccessful tenders this year, the municipality will hire a small, qualified team to offer food and beverage services at the rec centre throughout the busy winter ice season until at least March.
Officials say in addition to a concession supervisor, who will hire qualified part-time staff for food and beverage services to facility users this winter, the municipality has also secured vending machines.
“Administration, even with the use of extremely conservative revenue estimates, has determined that the interim plan should not see any negative impacts to the operating budget,” said Alison Gerrits, director of community services for the Town of Banff.
“It is for this reason that we’re not viewing this change as a new service level request, but rather as a change in the way the service is going to be delivered this season.”
The previous business, Oh Bento & Pizza, didn’t formally apply for a lease extension amid concern the new lease agreement was too stringent to be a money-making business; however, Town officials say there is a community expectation the rec centre has a concession stand.
As part of the municipality’s licensing and leasing policy, the Town of Banff went through two open tender processes this year for the concession for the next five years, starting in October 2023, as Oh Bento’s lease was set to expire in September.
The second tender was amended to include requirements such as offering healthy food and beverage options, vending services, alcohol sales and first right of refusal for any facility rentals catering needs.
In addition, the potential concessionaire was to be open six days a week for seven hours a day, unless otherwise agreed to between the Town and operator due to the increased activity at the Fenlands.
The revised request for proposal also amended the lease rental rate from the previous model of $500/month plus eight per cent commission to a flat rate of $2,600 per month.
Gerrits said, unfortunately, only one business from Calgary showed interest in the tender, but in the end determined the opportunity would not be feasible because of challenging labour costs and inability to offer delivery or off-site catering services, which would limit their revenue potential.
“The primary feedback we heard included challenging labour costs along with the restrictions in place related to no food and beverage delivery and off-site catering services permitted out of the Fenlands as per the land use bylaw,” she said.
Darren Enns, director of planning and environment, said delivery and off-site catering is not permitted in public service land use districts, for example in places such as the Banff Legion or Banff Masonic Hall, which have commercial kitchens.
“That’s important in a commercially constrained community like Banff where commercial growth management is important,” he said.
“We’ve always been aware of not wanting to violate the principles of commercial growth by allowing for a commercial development in a public service land use district.”
Revenues to the Town of Banff from the concession include: $32,794 in 2016, $25,819 in 2017, $33,105 in 2018, $38,105 in 2019, $12,021 in 2020 when the COVID-19 pandemic began, $21,762 in 2021, $28,730 in 2022 and $16,000 so far this year. The second quarter forecast was $24,000.
