Updated - Hornet's Nest transition costs not included in report
The first update on the Town's takeover of the Hornet's Nest two weeks
ago at the New Tecumseth Recreation Centre (NTRC), is on tonight's
council agenda, but does not include the "financial considerations
associated with this report."
Whether the transition costs will be the topic of a separate update is
not clear at this post. The report on tonight's council agenda notes
the Town has hired now former Hornet's Nest owner Richard Norcross's
staff, has applied to transfer his liquor license, but at this post
could not confirm whether the Town purchased the food and beverage
stock and equipment Mr. Norcross would have owned at the Oct. 1
transfer. All items with financial implications.
At this post (11:10 am), mayor Mike MacEachern and Mr. Norcross had not
replied to emailed messages for comment.
Last month, council voted to pay Ward 6 councillor Norcross $50,000 in
2013 in exchange for his giving up the Hornet's Nest business/space and
his exclusive hold on the food and beverage rights at the NTRC. He
retains the concessions and vending rights for 10 years at his
discretion (so long as he's in compliance with the terms).
"As is normal procedure for a restaurant license transfer, an
application has been submitted to
the Alcohol and Gaming Commission of Ontario with authorization from
the current holder for
the establishment's existing sales license to be transferred to the
Town," according to the report to council. "Staff further confirms
that the Town's insurance policy has been extended at no charge to
include host liability
coverage for a restaurant/bar facility.
The Town has retained the staff from the existing operation including a
Coordinator, servers, chef and kitchen assistants to continue to
provide service for the regular
hours of operation as well for private and special event bookings."
Regular hours for the food and beverage facility are Thursday and
from 5 p.m. to 10 p.m., Saturday from 11 a.m. to 8 p.m. and Sunday from
11 a.m. to 7 p.m. "and
hours are adjusted as well to accommodate all regular season and
playoff games of the Alliston
Hornet's Junior C hockey team and demands from program growth and
The report is the last item on the posted agenda.
UPDATED:This afternoon, mayor MacEachern said, transition costs were included as "additional information" in a Sept. 17 report. It's set out in a reply that spelled out how staff arrived at an estimated net revenue projection of $100,000 per year.
"The report that outlined the costs of assuming the operation and the budget was provided in the additional information that was part of the Council Meeting on September 17th and more specifically question 12 that outlined Revenue consisting of bar sales, food sales, set-up fees and external bar sales of $215,000 and Expenses that included staffing, equipment repairs and maintenance, licensing, bar stock and marketing of $115,000," wrote the mayor. "These revenues and costs were generated using the historical data available for the restaurant operation. The restaurant equipment is owned by the Town. There was some existing stock purchased from the previous operator as well as new stock ordered to ensure a smooth transition to the Town operated food and beverage service."