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Loss of Steel leaves city flush with cash

Mayor Nolan Crouse has asked the city to do something creative with the $229,000 it will be receiving from the St. Albert Steel for relocating to Whitecourt.

Mayor Nolan Crouse has asked the city to do something creative with the $229,000 it will be receiving from the St. Albert Steel for relocating to Whitecourt.

Council passed by a vote of 6-1 Monday night a motion by Crouse to place the $100,000 collected to date in a reserve. Coun. Cam MacKay voted against the motion.

It also calls for the city manager to create the terms of reference for studying a hosting strategy as well as providing grant funding to “unique and significant” community events.

Crouse said the first due payment of $100,000 arrived a few days late but that he expects the Steel to pay out the remaining $129,000 by the end of August.

“We could apply it to the bottom line, take it into general revenue, and that’s an option,” Crouse said. “What I’m looking for is for us to be more creative than this.”

The AJHL Steel announced their relocation to Whitecourt at the beginning of May. The total due the city is the $100,000 relocation fee plus the outstanding balance of $129,000 for renovations to the team’s dressing room.

Instead of simply plowing the money back into general revenue, Crouse said the city could use it to attract other events, such as a potential bid on the 2019 Canada Winter Games. He said such a bid alone could cost the city $250,000.

“Where do you get that kind of money? Well maybe from this reserve,” Crouse said.

Crouse said there are other possibilities as well, such as buying new equipment so Servus Credit Union Place can hold concert events. St. Albert could potentially host some other sort of large sporting event, such as a rugby, cricket or softball gala, Crouse said.

“And maybe we add to that every year so you build it up,” Crouse said.

MacKay, however, felt that the budget process would be a better time to bring forward a potential strategy with such a large dollar figure.

“Why are the two parts of this motion linked?” MacKay asked. “Clearly an events hosting strategy can be brought up at budget. The money can go into general revenues. It seems like a large sum to allocate outside the budget.”

But the rest of council supported the idea.

“I’m entirely supportive,” said Coun. Cathy Heron. “The surpluses from other events might also go into this.

Crouse is confident the Steel will settle their tab.

“They have shown they are paying their bill. They paid the ice bill and paid their first bill,” Crouse said. “If staff comes and says they haven’t received the final payment, I could have waited. I trust they are going to pay.”

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