In financial difficulties, the coop that manages the Grand Marché requests help from Quebec City, which grants a loan of $ 300,000, agrees to forgo income of $ 1.7 million and demands a recovery plan, from 2020 .
The information was disclosed in a decision summary published Friday morning, following a meeting of the city’s executive committee the day before. The mayor, Régis Labeaume, later confirmed it, in a press briefing.
The decision of the elected officials responds to a request from the Coopérative des horticulteurs de Québec (CHQ), which is in financial difficulty. The CHQ points the finger at COVID-19 and the imposed health policies, but also the lack of time for the implementation of the business model. “The consequence of this situation was to delay the implementation of its marketing strategy, aimed at generating sponsorship income essential to the profitability of its operations,” the decision reveals.
“With COVID, it was not easy,” said Labeaume. However, he agreed that the Market had been open for several months before the pandemic arrived.
The decision to manage his own restaurant, Les Arrivages, and his own general store, Panier et Pignons, “hurt”, said the mayor. He now requests that the CHQ entrust the management of the restaurant to the private sector. “It has to work. If there are profits, we collect the profits. A market has to work. “
Loss of $ 1.7 million
The City of Quebec therefore agreed to grant a term loan of $ 300,000 to make up for the “lack of financial liquidity”.
In addition, the municipality agrees to deprive itself of sums which total $ 1.7 million, or $ 500,000 per year until 2022 ($ 185,000 for 2019). It will not collect a percentage on revenues or profits.
The annual amount relating to the maintenance, repair and replacement of components of the Grand Marché is also waived. The CHQ agrees, however, to assume the other costs and taxes.
Improve the situation
The City demands in return that the CHQ enlist the services of an independent expert to rectify its situation. The latter must “paint a picture of the financial situation, assess the potential for new income as well as the optimization of expenses, recommend concrete actions aimed at maximizing the customer experience and which will have a positive effect on ridership, and all year round. ”
If the organization succeeds in rectifying its situation, the City warns that it “reserves the right to demand unilaterally” the amounts for 2021 and 2022.
Daniel Tremblay, Director General of the CHQ, says that solutions are being considered, such as the development of an artisans’ alley in mid-July. “We had made theoretical models on paper. After a year, we have the real costs of the various charges to assume. “
The coop will appeal to everyone to find a buyer for the restaurant, because the organization cannot afford to expect profitability in the medium term.
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