The upcoming ski and snowboard season at Laurentian Ski Hill is in jeopardy without an infusion of operating funds, according to a report generated by the City of North Bay's chief financial officer and director of community services.
If the City of North Bay and North Bay Mattawa Conservation Authority "are unable to reach a suitable one-year operational subsidy agreement, Laurentian Ski Hill would be forced to close for the 2023-2024 season," reads the report prepared by CFO Margaret Karpenko and Ian Kilgour.
North Bay City Council holds its next regular meeting on Tuesday, Oct. 3. Senior staff is recommending the council's authorization of a one-year operational subsidy agreement between the City of North Bay and the NBMCA for an amount of up to $100,000 for the 2023-24 operation of the Laurentian Ski Hill Snowboarding Club Inc. (LSH), to the satisfaction of the Chief Administrative Officer, the Chief Financial Officer and City Solicitor.
"The operating subsidy will be provided to NBMCA in monthly installments upon review of monthly financial reports. This will ensure the sustainability of Laurentian operations for the 2023-24 season," per the report. "It is recognized that Laurentian Ski Hill is a critical piece of recreational infrastructure in the region and needs to remain open and maintained. It is a key economic tool for the City of North Bay, the region and regional business partners."
Presently, NBMCA levies the City of North Bay for specific costs associated with the capital holdings and operating needs of LSH. Annual contributions include $65,000 from 10 member municipalities for the upkeep of the NBMCA-owned fixed LSH capital assets. The City of North Bay's share is approximately 79 per cent of that $65,000 or just over $51,000.
The City of North Bay also contributes $60,000 for operating expenses. The recommended subsidy of up to $100,000 would come in addition to the $60,000 that has a recurring line in the operating budget. The City of North Bay's operational subsidy arrangement with the NBMCA has helped to support the LSH operations for approximately 10 years.
Laurentian Ski Hill attracts 35,000 visitors annually, generating $ 4.7 million in GDP and employs over 70 people with a volunteer base of over 100.
From the report: "As a result of the changing legislation to the Conservation Authorities Act and the financial challenges of Laurentian, the parties have requested an agreement be negotiated for the continued sustainability of ski and snowboarding operations. Because of the time sensitivity of the request to ensure
continuation of current operations, a one-year subsidy agreement for the 2023-24 operating season with NBMCA is suggested.
A majority vote in favour would also direct staff to prepare an options analysis for the council's consideration "regarding a partnership with respect to skiing and snowboarding in the City, in consultation with the North Bay-Mattawa Conservation Authority and Laurentian Ski Hill Snowboarding Club Inc.; including 2023-2024 operating season and future budget implications," with a report to council to follow.
The City of North Bay and NBMCA have a history going back 50 years of collaboration on land management and development as well as natural resource planning approvals. NBMCA owns the land and assets that the Laurentian Ski Hill Snowboarding Club operates on. The NBMCA took over the operations of Laurentian Ski Hill in the late 1990s and the operations were then transferred to Laurentian Ski Hill Snowboarding Club Inc. in the early 2000s.
See: Laurentian Ski Hill receives funding, launches strategic plan
Laurentian did not open for the 2020-21 season due to the COVID-19 pandemic. A new management approach has led to the creation of a strategic plan spanning 2023-26.
Laurentian Ski Hill is governed by a Board of Directors and is a non-profit organization utilizing the lands and assets owned by the North Bay-Mattawa Conservation
Authority (NBMCA) — in turn governed by its own Board of Directors — to operate the ski hill. The current operating model relies primarily on revenue generation from season passes, daily lift passes and youth programming (including lessons, camps and school visits). Additional revenue is generated through fundraising and sponsorship. It is planned to regain a lottery license (Nevada) to provide additional revenue.
"The NBMCA owns the capital assets. They are older assets. We own the chairlift, there are eight or nine major assets that we own," NBMCA President and CEO Chitra Gowda tells BayToday. "Costs are going up all around. The ski hill has increased costs, we have increased costs, and municipalities have increased costs.
"It's about non-profits supporting one another. The Laurentian Ski Hill Board of Directors and the staff work hard — they all work hard to keep it going and to maintain it."
