TCU Place asks City of Saskatoon for multi-million-dollar line of credit

The COVID-19 pandemic has taken a huge financial toll on many businesses and companies, and TCU Place in Saskatoon is no different.

At the governance and priorities committee meeting Monday, a request was made by TCU Place for a $3-million line of credit from the City of Saskatoon over the next three years.

CEO Tammy Sweeney told councillors TCU Place saw a 75 per cent reduction in the number of events it could hold in 2020, and it’s now seeing another 75 to 80 per cent reduction this year as it takes time for business to ramp up again.

“In a normal year, we would see a surplus of $860,000. However in 2020 we saw a deficit of $2.96 million, and in 2021 we’re projecting a deficit of $700,000,” Sweeney said.

There were more than 300 events cancelled last year alone, and staff has been reduced to essential workers only. Sweeney said TCU Place did apply for an emergency wage subsidy, but that was denied because the building is owned by the municipality.

Saskatoon’s chief financial officer, Kerry Tarasoff, explained if a line of credit was extended to TCU Place, it wouldn’t be considered a big risk.

“The investments of $8 million owned by TCU Place would be used as security for the repayment of any outstanding funds owed by TCU Place,” Tarasoff said. “Also, this line of credit is permissible within the Cities Act and within policy.”

Councillors voted unanimously to accept the recommendations and to forward them to city council next week.