The new Entertainment and Sports Centre will need a big operating subsidy in 2010, with lower than expected attendance figures at the root of a deficit that could approach $3 million.

With a $500,000 subsidy built into the arena’s budget for 2009, and repeated in 2010, the City of Abbotsford predicts it may have to provide another $2.3 million in 2010 to fill the 7,000-seat facility’s budget gap.

City finance director Judy Lewis said there are potential ways to reduce the deficit, which the city describes as a “worst case scenario,” based on current attendance figures at the centre.

The city hopes an aggressive marketing campaign will increase attendances significantly, potentially recouping $1 million in 2010.

Meanwhile, Lewis suggested an additional $800,000 in annual gaming revenue – raised from slot machines at Chances Abbotsford (the former bingo hall) – could account for the remainder.

After putting that $800,000 into arena operations for two years, she said it could then be set aside for other community projects.

Mark Taylor, the City of Abbotsford’s general manager of parks and recreation, said the opening of the entertainment and sports centre in May coincided with the height of the economic downturn.

And despite attracting AHL hockey, as well as numerous high-profile entertainment acts, he said attendance is generally lower than predicted.

Taylor said the city was anticipating an average of 5,000 fans per hockey game. The average attendance for the Abbotsford Heat so far is 3,475.

“The opening day was not until May, and that coincided with the economic downtown,” said Taylor. “Events throughout North America are down.”

With Abbotsford only getting AHL approval in April, Taylor also said it gave the team a relatively short period of time to sell season tickets before the start of the season in October.

“It’s a just a case of bums on seats at the events that aren’t going well,” said Taylor. “We had hoped to be more robust by this time in 2009.”

Taylor said certain events, such as the Alan Jackson concert, have sold well.

However, he acknowledged that a George Jones gig was cancelled due to low ticket sales.

Taylor said it may take “two or three years” to make the arena work financially, but he said he is still confident the facility will become profitable – particularly with the addition of the AHL team.

Trey Bell, the facility’s general manager, said marketing strategies will be adjusted in the New Year in an attempt to attract more people from outside Abbotsford.

“As far as marketing the venue is concerned, the show promoters and producers are very happy with it. It has been very well received.

“But entertainment in most of North America has noticed a downturn.”

Abbotsford Mayor George Peary said much of the future success of the centre will hinge on the success of the AHL team.

“If the hockey team is successful, then that will make a big difference,” he said. “Without the hockey team, there is no way the place would be paying its own way.”

The City of Abbotsford is still working on the fine details of a contract with the AHL team’s ownership group. That deal is expected to be made public in mid-December.

The final Plan A bill peaked at $115.4 million, with $30 million being pulled from city reserves.