Newmarket's theatres may never make money: Mayor Tony Van Bynen

Yorkregion.com
Oct. 28, 2016
By Chris Simon

Newmarket’s theatres will probably operate in red ink for the foreseeable future, the town’s mayor says.

With Newmarket Theatre typically operating at a $250,000 to $300,000 annual deficit and Old Town Hall reopening following a $10-million renovation, residents need to view the buildings as community investments, not money making ventures, Mayor Tony Van Bynen said.

“I come back to the principle that municipalities are not for profit,” he said. “We provide services to the community that are consistent with our cultural values and strategic priorities. I don’t think, north of Steeles Avenue, that you’ll find any theatre that makes money. If it did, private enterprise would be engaged in that. I look at it as an investment, not a loss. There’s opportunities, now that Old Town Hall is open, to generate revenues for us, but I don’t think either will ever be money generators.”

Van Bynen’s comments were made after the recent release of town documents pertaining to the Newmarket Theatre by the Newmarket Taxpayers Advocacy Group. NTAG says the theatre actually lost more than $776,000 in 2015, though town recreation and culture director Colin Service disputes that number. On a few recent occasions, he has suggested several hundred thousand dollars NTAG attributes to the theatre’s deficit are actually shared recreation and culture departmental costs - such as insurance and IT support - that would exist without the theatre.

“Operational costs are the costs of operating a business,” NTAG president Teena Bogner said. “Is it reasonable for the taxpayers to subsidize an underperforming facility such as the theatre? The theatre has been losing money for years. What has staff been doing to reverse this financial trend? These are legitimate questions. Taxpayers are subsidizing this annual deficit.”

The theatres employ a total of four full-time and 10 to 15 part-time staff, Service said.

“All part time staff work only during scheduled performances, events or rentals,” he said. “As well, the additional (fourth) full-time body was an existing staff member - duties were realigned so that no new full-time staff were needed to operate Old Town Hall.”

During its 2015-16 season, the Newmarket Theatre presented five shows and accommodated 20 rentals. There are currently seven performances booked for the Newmarket Theatre, and six for Old Town Hall, during the 2016-2017 season - though that number could increase because the schedule is still under development, Service said.

He actually "hopes and expects" the Old Town Hall building will be revenue neutral in about one year.

Old Town Hall was a popular community venue when it was closed down years ago, but its shutdown forced small theatre groups to run productions at Newmarket Theatre, which is too big for their needs. Those groups will now relocate back to Old Town Hall, freeing up Newmarket Theatre for more revenue-generating opportunities, Van Bynen said.

Newmarket Theatre’s operating deficit is consistent with similar sized, municipally-run venues in other jurisdictions, Service said.

“Our mandate remains the same, which is to provide quality professional entertainment experiences to the residents of Newmarket and beyond,” he said. “We have an opportunity to do that in a fiscally responsible way and we’ll continue to do that. Can we do better? Sure, and we will. We’re working toward that.”

Newmarket Theatre, which operates as a partnership between the town and York Region District School Board, is in the midst of a business model makeover. As part of the plan, town staff are booking professional acts, transitioning the online ticketing system to a more user-friendly version that would allow for immediate printing capabilities and implementing a comprehensive marketing strategy, sponsorship recruitment and retention program and new brand, among other initiatives.

The shift also means the stage area at Old Town Hall will be used to accommodate most community theatre productions, as well as special events such as award ceremonies, galas and weddings.

Here’s a look at the amount of money Newmarket Theatre lost between 2010 and 2015, according to town documents:

2010 - $246,873
2011 - $285,359
2012 - $287,106
2013 - $295,663
2014 - $232,000
2015 - $284,141