At the February 20th Martensville City Council meeting, a vote was passed to approve a third-party company to manage and operate the new Martensville Community Recreation Centre (MCRC).
The contract was awarded to Nustadia Recreation Inc. (NRI), and will be effective October 1, 2024. The City of Martensville has already been working alongside NRI with a pre-opening contract since November 2023 to assist with the facility’s opening.
The $44.5 million facility is currently under construction on the west side of the Highway 12 overpass, and is scheduled to open this November. The MRC will feature a regulation-sized ice surface, spectator seating for 900, indoor soccer and turf area, retail and concession space, as well as an indoor playground and rock-climbing area.
NRI is a Canadian based company that currently operates facilities across the country, including in Pitt Meadows, Grande Prairie, Okotoks, Saskatoon and more. In a news release provided by Tanya Garost, the City of Martensville City Manager, it states, “NRI is a Canadian Company that provides complete turnkey development and operating management for recreational facilities across Canada.” The release also noted that, “NRI is one of the premiere private operators of recreation facilities in the country.”
In a report provided to Council by Garost at the February 20th meeting, it states that the operating contract is confidential and is not a public document; however, multiple highlights of the contract were included. Some of these highlights were:
– It will be a five-year contract with a five-year renewal clause;
– There is an annual $100,000 management fee paid to NRI, which includes annual increase fees by Consumer Price Index to a maximum of 5% in any given year;
– There will be a termination clause with a six-month notice period for either party for any reason;
– NRI assumes all operations of the facility;
– An operating budget will be set by a committee consisting of NRI and City of Martensville staff;
– A joint committee will be formed to address operational issues within the facility;
– The operations of the MRC will require a separate audit;
– NRI will earn commissions on advertising contracts that were negotiated by NRI staff;
– The contract contains clauses on insurance and indemnification to ensure Martensville’s risk and liability is covered and understood;
– All pre-existing sponsorships will remain and be carried out with appropriate recognition, etc.
NRI will operate the facility as both an “Agency” and a “Contractor”, with the agreement containing clauses for both. While NRI will mainly be operating as an “Agent”, they will be responsible for supplying staff, which falls under the “Contractor” clause.
As an “Agent”, NRI will be responsible for underrating competitive public processes on lease space, handle all contracts for both adverting and leases on behalf of the City of Martensville, keep accounting records, and pay operating expenses from a joint bank account that the City of Martensville will deposit money into.
As a “Contactor”, NRI will supply staff and bill Martensville as required for the cost of staffing.
The report also explained that for the first two years, any deficits and surpluses are the responsibility of, or belong to Martensville. Beginning in the third year, deficits, or surpluses beyond the budgeted amount will be shared between NRI and Martensville, with a maximum for Nustadia of a percentage of the management fee.
Donation amounts collected by the Martensville Community Recreation Project, or are yet to be collected, will remain with the City of Martensville and City Council will have the opportunity to determine how these funds will be allocated to the MRC, which include items such as repaying the long-term debt, contributing to a future ice surface, contributing to future renewal requirements of the facility, etc.
NRI will be working closely with City of Martensville administration, with one of the first steps being taken to develop a Community Access Plan, which will set the mission, vision and strategic objectives for the management of the MRC.
Recruitment for a full-time General Manager position is currently underway, with more details available at www.nustadia.com, the Saskatchewan Parks & Recreation Association (SPRA), Recreation Facilities Association of BC (RFABC), Alberta Association of Recreation Facility Personnel (AARFP), Recreation Manitoba and the Ontario Recreation Facilities Association (ORFA).
Learn more about the project at https://www.martensville.ca/pages/martensville_community_recreation_centre.html.
