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Councillors cut some of downtown business centre's annual funding

City will provide $300,000 in capital funding to the Sandbox Centre, to cover cost overruns, but reduce annual partnership commitment by $10K
Sandbox Centre 2 2019-04-05
The Sandbox Entrepreneurship Centre, which is located above the bus terminal in downtown Barrie, is shown in a file photo. Shawn Gibson/BarrieToday

Barrie councillors did draw a shallow line on more Sandbox funding.

On Monday night, council gave final approval to provide $300,000 in capital funding to the downtown entrepreneurship and business centre, to cover overrun costs, but cut the annual partnership commitment of $45,000 to $35,000.

“Obviously, we want them to succeed. There’s a lot invested in this location and to the whole concept of the Sandbox,” Coun. Gary Harvey said. “If $10,000 is going to make it or break it from their annualized budget, then obviously there should be some concerns about their long-term sustainability.”

Located at 24 Maple Ave., above the Barrie Transit Terminal, the Sandbox Entrepreneurship Centre provides a single location for entrepreneurs to meet, learn and mentor. 

During its first year of operations, from April 2019-20, the Sandbox reported more than 10,000 visitors for meetings and events, more than 1,500 hours of hosted meetings, and more than 80 educational seminars, panel discussions and workshops.

Councillors heard that Sandbox officials would prefer not to lose $10,000 in funding for the next two years, but the motion to reduce it passed by a 6-5 vote.

“It’s not a big number, but it’s not a small number, either,” Coun. Jim Harris said of the difference.

As for the larger number, Coun. Mike McCann said capital costs for the Sandbox were $800,000 over-budget, but reduced to $600,000. Half of that — or $300,000 — will be paid by the city, the rest from private-sector money.

“We’ve already swam 80 per cent across Lake Simcoe,” he said. “There’s no sense in us stopping now and swimming all the way back.”

The $300,000 will come from the community benefit reserve.

Coun. Clare Riepma said he supports the Sandbox and the work it does to help local business, but questions the capital spending increase.

“The city is the landlord and we did everything that we agreed to do, everything we were supposed to do, and in total we paid something like $820,000 for improvements to that building,” he said. “So we met all of our obligations and then some.

“This was never supposed to be a city-led operation. It was initiated, it was led by our entrepreneurs in our city. I think it needs to stay that way," Riepma added. 

Riepma also noted the Sandbox operates rent-free there.

“During construction…they overspent. There’s no question about that,” he said. “It’s as simple as that, but I don’t think it’s appropriate for them to come to us now for a bailout. I would prefer not to give them the money, the $300,000.”

Riepma suggested it could instead be a loan, but no motion was introduced to that end.

City staff and Sandbox officials have been asked to seek funding from surrounding municipal governments, with all repayments back to the community benefit reserve if successful.

Mayor Jeff Lehman has noted the Sandbox received more than $1 million of in-kind support by private-sector partners, value which goes straight to a city asset, the building itself.

Last February, Sandbox officials asked council to increase its capital contribution to the downtown centre by $300,000 to support additional and unanticipated build-out costs associated with the construction of their space.

The Sandbox is a tenant of the city with a five-year lease that will expire Sept. 18, 2023. Its doors opened in April 2019, after significant renovations to the 9,000 square feet of the second floor. The connected rooftop patio space of 1,100 sq. ft. was also renovated and subsequently opened in September 2019. 

Also located within the Sandbox is the Small Business Centre of Barrie, Orillia and Simcoe County, funded in partnership between the city and province.


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Bob Bruton

About the Author: Bob Bruton

Bob Bruton is a full-time BarrieToday reporter who covers politics and city hall.
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