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With great fanfare, the Board of Elliot Lake's Jr. A hockey club and the Northern Ontario Junior Hockey League made a joint announcement last week that the former Elliot Lake Wildcats had been rebranded as the Elliot Lake Red Wings.
Next Monday, Coun. Ed Pearce plans to make a presentation to City Council on behalf of the Elliot Lake Junior Hockey Board. Coun. Pearce is Council's rep to the Board.
Of the original $100,000 loan the club secured from the City in 2014, $50,000 remains owing. The club also owes $25,000 of the money it borrowed from ELNOS.
The club still owns the franchise and has brought in a management group from southern Ontario to look after day-to-day operations.
Pearce is asking for Council to approve an annual non-cash sponsorship of the club consisting of an annual write-down of the existing debt by $10,000 and an offset of $10,000 in ice fees, representing $20,000 yearly. That way the Red Wings' debt to the city would be retired in five years.
Pearce wrote that ELNOS has already agreed to a similar debt retirement program.
In an interview Coun. Pearce answered a few questions about it.
The team also wants city staff to work with the Red Wings, as Pearce wrote, "To enhance the fan and player experience, Items being considered are improvements to the change rooms, special events, (ex. NHL alumni game) and enhanced arrangements for beverages at the canteen for games."
Pearce went on to list economic benefits to the community from the Red Wings of over $700,000 per year (based on Hockey Canada's economic multiplier), a weekly community socialization event, a strong marketing tool for Elliot Lake Retirement Living and support for hockey at all levels, plus justifying costs for having a community sports facility by increasing the use of that facility.
Coun. Pearce also responded to a number of other inquiries, including:
ElliotLakeToday: Can you provide a management contract for five years?
Coun. Pearce: No. The management contract is a private matter between the team and the management group.
ElliotLakeToday: In the event of default by the management group, will the directors remain personally responsible for the club's debt?
Coun. Pearce: That is a non-question. All debts of the team have been paid except for the remaining portion of the loan from the City and advances from ELNOS. We do not anticipate any default.
ElliotLakeToday: Who will receive the revenue from sign rental?
Coun. Pearce: There is already an agreement in place on sign revenues. We do not anticipate any changes.
ElliotLakeToday: Does the management group have any right to the franchise?
Coun. Pearce: The team is owned by the Elliot Lake Junior Hockey Team Corporation.
ElliotLakeToday: Has your proposal gone to any city committees or been vetted by staff? (If not, why not?)
Coun. Pearce: Council requested that the team make a presentation to them. There was no request to take it to a committee or any need to do so. There is no "vetting" by staff required. Although we obviously keep them informed of our actions, the decisions are made at Council.
An anonymous email was sent to members of the news media on Friday morning in which a number of comments were made regarding the adoption of the Red Wings rebranding of the hockey franchise.
It also stated that a second management management group with local connections was not allowed to make a presentation to the team.
"As for the anonymous email, I think that if the person who wrote it is afraid to put their name on it, it's either complete speculation or an outright lie," Pearce said.
"For the record, I am not making the presentation to Council as a lone individual. I am Council's representative on the Board and it is my responsibility to keep Council informed. Council can accept my recommendation or not. That is up to them," Pearce added.
"If you have any other questions, you should direct them to the President of the Club who is authorized to speak on behalf of the board or the Mayor who is authorized to speak on behalf of Council," concluded Pearce.
Red Wings president Len Kutchaw also weighed in regarding the letter.
"I, like you, have no time for anonymous concerns in whatever form they are obtained," Kutchaw said.
People have until noon hour Monday to submit questions to Council relating to the Monday night meeting. They must be emailed to Clerk Natalie Bray.
The Red Wings presentation is listed on the agenda for the next virtual meeting of Elliot Lake City Council, scheduled for 7 p.m. Monday night.
That meeting will be livestreamed on the City of Elliot Lake website