Mile One Privatization Report: Scope, Cost and Timeline
On September 24, 2020, City Council and St. John’s Sports and Entertainment Limited (SJSE) released a statement regarding the privatization of Mile One. As announced, KPMG has been contracted for this review because of their familiarity and knowledge with the Mile One operating model gained through completion of the Jurisdictional Comparison Report in 2019, and their ability to complete the review within a short timeframe of approximately eight weeks.
The Board of SJSE is in the process of establishing an independent sub-committee of the Board to consider whether to sell Mile One. The sub-committee will be comprised of Board members who are not affiliated with, or employed by, the City of St. John’s.
The purpose of the upcoming KPMG report is to outline the substantial factors that the Board and Council must consider if they decide to move forward with the sale of the Mile One facility.
The report is estimated to cost $35,000 and is higher than what was first estimated due to a broader scope than what was originally discussed with KPMG. The revised scope of the report includes:
• Review of the Canadian marketplace to determine the number of privately held arenas and their experience
• Analyze the building systems implications
• Review the labour relations implications
• Review past agreements and determine if there are possible restrictions to be considered
• Consider the impact on City of St. John’s tourism and large event strategy
• Consider valuation methods to determine an accurate selling price
• Analyze long term financial implications for St. John’s
The KPMG report is due by early December and the findings will be released publicly.
Councillor Jamie Korab