Centre Wellington officials are proceeding with a plan to sell the naming rights for township facilities and have hired a company to help with the process.
“This decision demonstrates our commitment to follow through with our strategic priority of finding non-tax based revenue generation opportunities,” Mayor Kelly Linton stated in a Jan. 26 press release.
“Every dollar that is raised through this program is a dollar that does not need to be raised through taxation.”
The township announcement stressed the municipality would proceed with a sponsorship/naming agreement only “if the right fit presents itself.”
“We will not be jumping into any agreements without looking at all aspects of the partnership,” stated Brian Detzler, managing director of community services, in a press release.
“All sponsorship relationships will be consistent with our vision and values.”
Township staff members, with the support of the township’s Community Services Advisory Committee, have been working on implementation of sponsorship and naming rights since being directed by council to do so about a year ago.
The municipality has hired Cornerstone Sponsorship Management – for an initial term of three years – to help the township “initiate and execute this process,” states the township announcement.
Detzler explained Cornerstone will be paid 20 per cent of “successful sponsorship agreement(s) as deemed solely by the township. There is no retainer fee.”
Linton, who estimates the sponsorship program will generate $50,000 per year in revenue, told the Advertiser Cornerstone has already been paid $10,000 for preliminary work on the plan.
In a press release Detzler said hiring an outside firm will provide “a consistent and controlled approach to sponsorship arrangements that protect the township’s interests and increase the opportunity for alternate revenue.”
Officials say while this is not the first time the municipality has sought sponsorship/naming rights sales, hiring Cornerstone Sponsorship Management ensures the process is “structured based upon customer centricity and value supported legacy relationships.”
During Jan. 24 budget discussions, councillor Mary Lloyd said the agreement “drives it home that [Cornerstone] needs to make the money for the municipality in order to get paid.”
She noted there is a large inventory of items to sell for specific areas and, “I believe Cornerstone will do a tremendous job for us, and it is of benefit for them to do so.”
Linton reminded councillors alternative revenue is a key area the township wants to pursue within its strategic plan.
“There are no guarantees when you are looking at something new like this, but I’d like to be leading edge looking for opportunities,” he said. “If it doesn’t pan out, we at least gave it a shot. We are doing all the right things to make it successful at this point.”
Councillor Fred Morris said he appreciates the work done and the investigative aspect of contracting with the company. He also acknowledged it is only a small amount of money, but he is concerned about including prospective revenue in the budget.
“We don’t know how much it is going to be at this point in time. Why are we allocating ‘x’ amount to reserves, if we don’t know how much it will be?” Morris asked.
He said he is uncertain that naming rights would solve the “under-funding” of the parks and recreation department. He added he would prefer money generated through Cornerstone sponsorships be treated the same as OLG funds – “spent when it is received, rather than spent before it’s gotten.”
