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

Cranbrook seeking compensation for breaking a lease agreement when the major-junior franchise relocated to Manitoba in 2019

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.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

U.S. Senator Bernie Sanders sits in on a COVID-19 briefing with Dr. Bonnie Henry, provincial health officer, and Adrian Dix, B.C. minister of health. (Birinder Narang/Twitter)
PHOTOS: Bernie Sanders visits B.C. landmarks through the magic of photo editing

Residents jump on viral trend of photoshopping U.S. senator into images

Victoria Hospice staff Brianne Ohl, left, Angela Chalmers, right, and Sandi Ogloff, at back, show off their buttons that show a picture of them smiling. Staff has worked hard to maintain the connections with patients despite the barriers of PPE and rigid COVID-19 protocols. (Victoria Hospice Photo)
Hospice provides compassion in a time of COVID

Victoria Hospice 40th anniversary on pause during pandemic

Look for the Random Act of Kindness Day colouring contest in Black Press issues Jan. 17. Physical entries can be mailed or dropped off to local Black Press offices. A scanned or photographed entry can be emailed to info@victoriafoundation.bc.ca. Winning entries can get a $50 gift card to Bolen Books and a $100 donation to a charity of their choice from the VIctoria Foundation. (Pixabay)
Colouring contest coming for Kindness Day

Kindness Day colouring contest in partnership with Victoria Foundation

Sidney has moved the remaining parts of its public consultation phase part of the Official Community Plan online. (Black Press Media File)
Sidney moves to an ‘all online engagement’ process for OCP

Staff says OCP charrette scheduled for mid-February

(File photo)
‘Very lucky’: Two passengers, dog escape rollover crash in Saanich unscathed

Vehicle flips on Trans Canada Highway after hitting median, possibly due to ice, firefighter says

U.S. Senator Bernie Sanders sits in on a COVID-19 briefing with Dr. Bonnie Henry, provincial health officer, and Adrian Dix, B.C. minister of health. (Birinder Narang/Twitter)
PHOTOS: Bernie Sanders visits B.C. landmarks through the magic of photo editing

Residents jump on viral trend of photoshopping U.S. senator into images

A 75-year-old aircraft has been languishing in a parking lot on the campus of the University of the Fraser Valley, but will soon be moved to the B.C. Aviation Museum. (Paul Henderson/ Chilliwack Progress)
Vintage military aircraft moving from Chilliwack to new home at B.C. Aviation Museum

The challenging move to Vancouver Island will be documented by Discovery Channel film crews

A video posted to social media by Chilliwack resident Rob Iezzi shows a teenager getting kicked in the face after being approached by three suspects on Friday, Jan. 22, 2021. (YouTube/Rob i)
VIDEO: Security cameras capture ‘just one more assault’ near B.C. high school

Third high-school related assault captured by Chilliwack resident’s cameras since beginning of 2021

FILE - In this Feb. 14, 2017, file photo, Oklahoma State Rep. Justin Humphrey prepares to speak at the State Capitol in Oklahoma City. A mythical, ape-like creature that has captured the imagination of adventurers for decades has now become the target of Rep. Justin Humphrey. Humphrey, a Republican House member has introduced a bill that would create a Bigfoot hunting season, He says issuing a state hunting license and tag could help boost tourism. (Steve Gooch/The Oklahoman via AP, File)
Oklahoma lawmaker proposes ‘Bigfoot’ hunting season

A Republican House member has introduced a bill that would create a Bigfoot hunting season

Economic Development and Official Languages Minister Melanie Joly responds to a question in the House of Commons Monday November 23, 2020 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
Federal minister touts need for new B.C. economic development agency

Last December’s federal economic update promised a stimulus package of about $100 billion this year

FILE - In this Nov. 20, 2017, file photo, Larry King attends the 45th International Emmy Awards at the New York Hilton, in New York. Former CNN talk show host King has been hospitalized with COVID-19 for more than a week, the news channel reported Saturday, Jan. 2, 2021. CNN reported the 87-year-old King contracted the coronavirus and was undergoing treatment at Cedars-Sinai Medical Center in Los Angeles. (Photo by Andy Kropa/Invision/AP, File)
Larry King, broadcasting giant for half-century, dies at 87

King conducted an estimated 50,000 on-air interviews

Comox Valley RCMP are looking for witnesses after the theft of a generator worth thousands of dollars. Photo supplied
RCMP asking Vancouver Island residents to watch for stolen generator

Vehicle may have been travelling on Highway 19

Terry Keogh, an RDN Transit driver, used his paramedic skills the morning of Jan. 22 after coming across an unconscious woman along his route in downtown Nanaimo. (RDN Transit photo)
Nanaimo transit driver stops his bus and helps get overdosing woman breathing again

Former EMT from Ireland performed CPR on a woman in downtown Nanaimo on Friday

Chief Public Health Officer Theresa Tam speaks during a daily briefing in Ottawa. (THE CANADIAN PRESS/Adrian Wyld)
31 cases of COVID-19 variants detected in Canada: Health officials

Dr. Theresa Tam made announces 13 more variant COVID-19 cases in Canada

Most Read