The Bad - Money Lent For Food Services Now Likely Part Of Events Centre's Subsidy

By Robert Thomas

It is the $100,000 question about what happened to a loan made by the City to the Moose Jaw Events Centre (formerly known as Mosaic Place) to start up the new food and beverage services.

The move to an in-house food and beverage services was made after a Request For Proposals (RFP) was issued and Spectra Event Management won the contract largely based upon perceived food quality and service issues.

After the RFP was accepted it was revealed to Council the food and beverage services were actually in-house when Council was asked for a loan up to $150,000 to finance the start-up of the now City owned food and beverages service.

The interest free loan was to be repaid by December 31, 2022 but the deadline was extended by Council.

MJ Independent initially asked Mayor Clive Tolley and city manager Jim Puffalt about the approximate $100,000 of $150,000 loaned to the Events Centre to help start up the new food and beverage service and if and when the interest free loan was going to be repaid to the City. The question was deferred to Puffalt.

Moose Jaw Events Centre Food and Beverage Services statement to June 30, 2022 - source report to City of Moose Jaw

The City Manager then deferred the response to Director of Financial Services Brian Acker as best to give the answer.

At that time MJ Independent responded it was the same answer we had received when we asked the same questions months earlier but had not received a response.

“Again we will get Mr Acker to give a firm answer. I think it is probably preliminary. They are doing well…but it is still early in the year,” Puffalt responded.

When it was MJ Independent’s turn to ask the City Manager one question in the post Council media scrum the same question was asked with the same response. The question could be better answered by Director of Financial Services Brian Acker, Puffalt repeated.

But as the answer was being given Acker at the very moment walked into the Council Chamber to watch the scrum, so the questions were re-directed to him.

Asked by MJ Independent Acker said the $100,000 that was loaned by the City (out of the $150,000) had not been repaid.

“Not at this point,” he said when asked if the money had been repaid to the City.

“We think it is a little bit premature at this time, in June, to talk about repaying as they may be having issues with cash flow,” Puffalt said.

Asked about the approximate $100,000 loaned to the Events Centre’s food and beverage service not showing up on any of the financial documents released as part of the City’s Quarterly Report and if that could mean it was rolled into as part of the subsidy to the facility Acker said yes.

“Yes it is part of the subsidy but we will hopefully have a reduced subsidy,” he said, adding “that money not coming back are funds we don’t have to pay them.”