Council Considers Report on Sale of Mile One

St. John's City Council has reviewed the report prepared for the Board of St. John’s Sports and Entertainment Ltd. on the implications of a potential sale of Mile One to a private owner and determined that more information is required before any potential sale could be contemplated.

The report, prepared by consultants KPMG, was finalized on January 14, and provided to the Board before being provided to Council for consideration. The consultants conducted a review of the Canadian marketplace to determine the number of privately held comparable arenas and their experience; an analysis of the building system and labour relations implications; a review of past agreements to identify any potential restrictions; an analysis of the impact on the City’s tourism and event strategy; and an overview of valuation methods to determine an accurate selling price.

“Having carefully reviewed the report at both the Board level and at Council, we have determined that more information is needed before making a determination on the potential benefit of selling Mile One to a private owner,” explained Councillor Jamie Korab. “Given the fact that Mile One is a 20-year-old arena, the consultants recommended a thorough building condition assessment be conducted to determine the remaining useful life of critical infrastructure, and we agree with that recommendation.”

The consultant’s report presents both the pros and cons of privatizing Mile One in the context of current operations as well as how other similar facilities are run across Canada.