The Aberdeen Recreation Complex (ARC) is for sale.
The 64,500 square-foot multi-purpose facility was reluctantly put on the market in early June by the Aberdeen and District Charities Incorporated (ADCI) Board of Directors. It is currently listed on the McDougall Auction website, with bids slated to close on July 30.
The ADCI is a non-profit, volunteer-run organization that owns and operates the building. The decision by the ADCI Board has the support of both the Town of Aberdeen and RM of Aberdeen councils.
“It was a difficult decision,” said ADCI Board Chair Trevor Cornish. “Finances are always tight, even when things are going really well.
“This past year, when the COVID-19 pandemic hit and shut down our ice rentals, that killed our main source of revenue.”
Cornish said in 2020, the facility only operated at 50 per cent capacity compared to a normal year.
“Obviously that had a big impact on our bottom line,” he said. “If it had been a normal year, we probably would have been able to scrape by.
“But the sharp, sudden drop in revenue really forced the board to take a hard look at reality. In addition to our ongoing expenses, which are substantial, we’re also looking at some pretty major repairs or replacements in the not-too-distant future. The ice plant is nearing the end of its useful life, and that would be in the range of $400,000.
“We’re pretty much tapped-out on what we can take for financing and still manage to pay our operating costs.”
Cornish said the COVID-19 pandemic also forced the cancellation of three provincial curling championships scheduled for the facility last year. Other rentals were similarly impacted.
Originally constructed in 2005 at a cost of about $12 million, the ARC has served as a central hub for a variety of activities over the past 16 years. The building and the 5.13 acre lot it is located on are currently assessed at $10,076,900.
“It’s really the heart of the community,” said Cornish. “Our hope is that by selling to a private operator with a solid business plan, it will keep the facility here in our community where it can continue to be used by area residents.
“When you look at the countless hours of volunteer labour that went into fundraising efforts to build it, and to keep it operating over the years, it’s a pretty amazing story. It is a facility we’re very proud of and we want to keep it open in a way that’s sustainable in the long run.”
The ARC houses a hockey rink, curling rink, meeting rooms, food concession and lounge. It is also home to a preschool and dance club.
In addition to ice rental revenue, community fundraisers currently account for a substantial portion of the ARC’s annual revenue. In 2017, a ‘Community Build’ home was constructed by more than 100 volunteers with donated materials supplied by businesses in the area. That initiative brought in about $60,000. At that time, the remaining mortgage on the ARC was $2.1 million.
In recent years, area farmers have donated proceeds from the sale of crops, each year contributing about $50,000.
Currently, the mortgage on the facility sits at about $1.9 million, said Cornish.
In early June, the ADCI Board of Directors posted an open letter on the ARC facebook page addressed to the ratepayers of the Town of Aberdeen and the RM of Aberdeen. The letter spelled out the reasons behind the ADCI Board’s decision to “explore options” of selling the facility to a private operator.
“The increasing financial demands of operating the ARC, along with the large cost of the existing mortgage, has made it unreasonable and financially unsound to continue this current business model,” stated the letter posted on the website.
“We have reached a point where both the Town of Aberdeen and the RM of Aberdeen cannot increase the level of financial support needed to meet the increasing cost of operating the ARC.”
The ADCI Board said the decision was not taken lightly.
“The ADCI Board has worked tirelessly for months to find viable options to turn the current financial situation of the ARC around to a more sustainable way so that the ARC will be around for our community to enjoy and use for many years to come,” stated the letter.
The ADCI Board said selling the facility to a private operator offers the best option.
“To ensure the new owner of the ARC is the proper fit to the community the Town of Aberdeen has made conditions of the sale that would restrict zoning to ensure that no industrial businesses could operate on the ARC property,” stated the ADCI letter. “The ADCI Board wants to ensure that no negative situations will impact school or the sports grounds around the ARC.”
Cornish said both the town and RM are “prepared to subsidize” local minor sports teams and social clubs to ensure they are not priced out of the facility if the new owner is obliged to raise rental rates.
The ADCI Board letter concedes the decision to sell the ARC is likely to raise concerns within the community, but notes “all parties involved are looking for the best option going forward for the ratepayers within the town and RM.”