As a result of this cancellation, Administration spoke with the organizer who has agreed to run only the 2021 event. As such, the financial contribution given to the organizer in 2019 can be used for the 2021 event. No further payments will be provided.
Risk Analysis:
There is a low risk that the event organizer may decide to cancel the event in 2021. Ensuring that an amended agreement is in place will work towards mitigating damages to the City.
There is a moderate risk that the COVID-19 Pandemic will still place restrictions on gatherings in 2021 therefore this event may need to be postponed until 2022. Unfortunately, there is no way at this time to tell when this Pandemic will be over.
There is a significant risk that if the organizer goes through with the 2020 event, they could be in violation of provincial orders and putting volunteers, spectators and participants at risk of contracting COVID-19.
Financial Matters:
As per the original agreement between the City and the Berkley B1 Group, the City was required to pay $43,000 in 2019, 2020 and 2021 to the Berkley B1 Group and in exchange, the Berkley B1 Group would host an event in Windsor in 2019, 2020 and 2021.
As payment has already been provided for 2019 and no event took place in 2019, the Berkley B1 Group was to use that payment towards the 2020 event. Instead, given the Pandemic, the 2020 event has been cancelled, Administration is now recommending that the original payment of $43,000 be put towards the 2021 or 2022 event if the 2021 event cannot occur for any reason. The 2019 payment was charged to the Sports Tourism Event Bid capital project (Project ID 7121026). Funding for the payment came from the Tourism Infrastructure and Program Development Reserve (Fund 214). It is believed that Berkley B1 Group has expended some of the initial $43,000 in preparing for the 2019 and 2020 events which have now been cancelled. The initial amending agreement provided that in the event of a cancellation, the City would be reimbursed the $43,000. However, the City did not elect to proceed with this option, but would rather proceed with an event in 2021, or if cancelled, 2022 using the funds already committed. Administration will attempt to include similar provisions in the new amending agreement to ensure that if an event does not occur in either 2021 or 2022 that the funds will be reimbursed to the City. It is noted that there is some risk that the City will not be fully reimbursed as some funds may have already been expended in preparation for the originally scheduled events.
The payments scheduled for 2020 and 2021 of $43,000 each will no longer be required and as such, this funding will remain within the reserve and be available to utilize for other projects and initiatives.