City to help cover convention centre annual loan payment

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This article was published 18/03/2022 (1309 days ago), so information in it may no longer be current.

After another pandemic-stricken year, the Winnipeg Convention Centre will receive more financial help from the city.

The City of Winnipeg will provide roughly $1.2 million to cover the annual payment on a $33-million loan guarantee, matching a previous payment last year. The annual charge is linked to the convention centre’s expansion, which the city has used hotel tax dollars to pay off since the first charge came due in 2017.

“The last couple of years have been very difficult for the Winnipeg Convention Centre. With COVID-19 restrictions, many conferences and conventions have been postponed,” said Coun. Scott Gillingham, head of council’s finance committee.

With continued lockdowns, capacity restrictions and travel impediments in 2021, it’s no surprise the centre itself can’t cover the payments just yet, said Gillingham.

He noted the centre is required to pay the money back.

Gillingham said a hotel meant to help pay for the expansion is now under construction, while the province’s decision to end pandemic restrictions should also help revenues rebound.

“With the pandemic winding down, the convention centre bookings will pick up again,” he said.

A city document notes the convention centre’s portion of the destination marketing reserve — which is funded by hotel tax revenues — contained $2 million at the end of 2021.

Gillingham said the city’s economic recovery should prevent the shrinking reserve from affecting future payments.

“I don’t have concerns at this time, given that we are seeing the pandemic winding down and (convention) bookings pick up.”

After two years of cancellations, large convention centre events have resumed this year, including the recent Wonderful Wedding Show.

Gillingham said he also wants the city to charge hotel tax to short-term rental companies. “It’s time the accommodation tax be applied to short-term rentals, like Airbnb. That also will (add revenue) to the destination marketing reserve.”

Council is waiting for a report on that topic.

The city loan guarantee was created following a $180-million expansion of the convention centre, which was officially completed in 2016. The hotel was supposed to open the same year, triggering $17-million worth of new convention centre business and $16 million of tax revenues to support the project, but a proposal wasn’t secured for years.

The Sutton Place Hotel and Residences is now under construction.

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