Kootenay Ice President and General Manager Matt Cockell at his office desk in Cranbrook in 2017. Townsman file photo.

Kootenay Ice President and General Manager Matt Cockell at his office desk in Cranbrook in 2017. Townsman file photo.

City of Cranbrook files lawsuit against Winnipeg Ice, WHL for breaking lease agreement

The City of Cranbrook has filed a lawsuit against the Winnipeg Ice and the WHL seeking compensation for breaking a lease agreement when the major-junior franchise relocated to Manitoba following league approval in 2019.

The lawsuit, filed by the city on Dec. 24 in B.C. Supreme Court, seeks a few different types of financial relief stemming from lost income due to the relocation of the Kootenay Ice from Cranbrook to Winnipeg, a move which broke a license of occupation agreement with Western Financial Place that had four additional years left in the terms of the contract.

According to the lawsuit, the Ice provided an annual average of $178,333 over a five-year period to the City in fees, other revenue and advertising income. The city also says it incurred $15,167 in one-time expenses when the Ice relocated, due to having to prematurely restore condition of the premises.

Additionally, the city is also seeking replacement income that was lost between the Ice’s relocation and the announcement of a new tenant with the arrival of the BCHL’s Cranbrook Bucks, as well as pre-judgment interest on damages.

The lawsuit also takes aim at the WHL, alleging that the league induced the contract breaches, knowing that the city would lose revenue when the Board of Governors approved the franchise relocation.

The city declined to comment further on the lawsuit, until it is allowed to move through the courts.

The Townsman has reached out to the Winnipeg Ice and the WHL for comment.

The WHL legacy in Cranbrook

The Kootenay Ice arrived in Cranbrook in 1998, following a relocation from Edmonton.

Under the leadership of Ed Chynoweth and his son, Jeff, the franchise won three WHL championship titles along with a Memorial Cup in 2002.

Alumni include players such as Jarret Stoll, a longtime NHLer who two Stanley Cups with the Los Angeles Kings, and Sam Reinhart, who was selected second overall in the NHL Draft and currently plays for the Buffalo Sabres.

In 2008, the club signed a 15-year license of occupation with the City of Cranbrook to play out of Western Financial Place, guaranteeing revenue to the city based off a scaling attendance threshold from $20,000 to $120,000 as well as a basic occupancy fee for each year of the term equal to two per cent of the Gross Game Receipts for each WHL season.

Under the terms of the agreement, the city also received all revenue generated from concessions stands and parking lot fees. Additionally, the agreement stipulated that the city receives 20 per cent of of net advertising income generated by the club and 100 per cent of the advertising revenue generated outside the premise, including the restaurant, swimming pool, commercial/retail space, common areas and arena naming rights.

After years of speculation regarding a franchise sale or relocation, the Kootenay Ice was purchased by Matt Cockell and Greg Fettes, a pair of Winnipeg investors, in 2017. The license of occupation agreement with the Kootenay Ice Hockey Club was assigned by the city to the new ownership group a few months after the club’s sale.

Following the sale, the club played two more WHL seasons in Western Financial Place before announcing the planned relocation midway through the second year.

At the time of the relocation announcement, WHL commissioner Ron Robison said the league had been assessing attendance at Western Financial Place dating back to 2011, when the arena failed to sell out during a league championship run.

During a press conference announcing the move, Robison stressed that it was a WHL decision to relocate the the franchise to Winnipeg.



trevor.crawley@cranbrooktownsman.com

Like us on Facebook and follow us on Twitter

Want to support local journalism during the pandemic? Make a donation here.

Just Posted

Prince Charles Secondary School
School District 8 votes in favour of name change for Secondary School in Creston

In an act of reconciliation, a new name will be chosen for Prince Charles Secondary School

Kootenay-Columbia MP Rob Morrison. Photo courtesy Conservative Party of Canada.
MP Morrison appointed to parliamentary national security committee

Kootenay-Columbia parliamentarian one of five candidates appointed to national security committee

Repaving of Victoria Ave (3rd St. S. to 11th St. S.) began on Monday, June 12. Drivers are asked to please avoid the area for the remainder of the day, if possible. Please watch for and obey directions from flaggers and signage, as the detours will be moving regularly. Photo courtesy City of Cranbrook.
Road construction, repaving programs well underway

Local road construction and repaving work continue apace, as summer programs get… Continue reading

Vendors and customers at one of the Cranbrook markets in 2020. (Corey Bullock/Cranbrook Townsman file)
Cranbrook Farmers Market updates operating hours for the summer

Markets will continue to run from 10a.m. to 1p.m. until October 30th

City council passed first reading of a text amendment to a downtown zoning bylaw that would permit the land use for a craft brewery. Photo courtesy City of Cranbrook.
Downtown zoning amendment allowing craft brewery passes first reading

An application is moving forward that will tweak a downtown zoning bylaw… Continue reading

Maxwell Johnson is seen in Bella Bella, B.C., in an undated photo. The Indigenous man from British Columbia has filed complaints with the B.C. Human Rights Tribunal and the Canadian Human Rights Commission after he and his granddaughter were handcuffed when they tried to open a bank account. THE CANADIAN PRESS/HO-Heiltsuk Nation, Damien Gillis, *MANDATORY CREDIT*
VIDEO: Chiefs join human rights case of Indigenous man handcuffed by police in B.C. bank

Maxwell Johnson said he wants change, not just words, from Vancouver police

For more than a year, Rene Doyharcabal and a small group of neighbours in Langley’s Brookswood neighbourhood have been going out every evening to show support for first responders by honking horns and banging pots and drums. Now, a neighbour has filed a noise complaint. (Langley Advance Times file)
Noise complaint filed against nightly show of support for health care workers in B.C. city

Langley Township contacted group to advise of complaint, but no immediate action is expected

A nurse prepares a shot of the COVID-19 vaccine at the Yukon Convention Centre in Whitehorse on Wednesday, March 3, 2021. THE CANADIAN PRESS/Mike Thomas
Vancouver couple pleads guilty to breaking Yukon COVID rules, travelling for vaccine

Chief Judge Michael Cozens agreed with a joint sentencing submission,

An inmate in solitary confinement given lunch on Tuesday, May 10, 2016. THE CANADIAN/Lars Hagberg
22-hour cap on solitary confinement for youth in custody still too long: B.C. lawyer

Jennifer Metcalfe was horrified to hear a youth had spent a total of 78 straight days in isolation

Old growth in the Columbia Valley, in the Kinbasket area. (Photo submitted)
Wildsight: Old-growth forests are being logged in Golden

Wildsight says that Canfor has been logging old growth at the Blaeberry headwaters

at the library
What’s on at the Cranbrook Public Library

By Mike Selby The Library is now open with extended hours (with… Continue reading

People line up to get their COVID-19 vaccine at a vaccination centre, Thursday, June 10, 2021 in Montreal. THE CANADIAN PRESS/Ryan Remiorz
Vaccines, low COVID case counts increase Father’s Day hope, but risk is still there

Expert says people will have to do their own risk calculus before popping in on Papa

B.C. Premier John Horgan listens as Finance Minister Selina Robinson presents the province’s latest budget, April 20, 2021. The budget projects $19 billion in deficits over three years. (Hansard TV)
B.C. government budget balloons, beyond COVID-19 response

Provincial payroll up 104,000 positions, $10 billion since 2017

COVID-related trash is washing up on shorelines across the world, including Coldstream’s Kal Beach, as pictured in this May 2021 photograph. (Jennifer Smith - Black Press)
Shoreline cleanup finds COVID-related trash increased during height of the pandemic

Great Canadian Shoreline Cleanup reports litter from single-use food packaging nearly doubled

Most Read