The money-losing Civic Center Café will close this summer and be replaced by vending machines as part of Port St. Lucie’s efforts to reduce $2 million-plus in annual operating losses at its signature facility.
The Civic Center can’t afford to continue losing $164,000 per year on the café, which operates six days per week, Civic Center Director Linda McCarthy told the City Council Monday.
“Obviously, we must reduce expenses,” McCarthy said.
The impending café closure was among the money-saving initiatives McCarthy is working on to reduce the city’s annual subsidy of Civic Center operations.
The city budgeted $2.3 million to subsidize the Civic Center in 2018-2019, city records show.
Civic Center operating expenses have exceeded revenues by more than $15 million during the past 10 years, according to city records.
It would be unrealistic to expect the Civic Center’s hospitality and recreational facilities to develop into a money maker for the city, McCarthy said. Civic Center revenues covered about 26 percent of its expenses last year, city records show. The council decided in November 2017 it wants the Civic Center to cover at least half its operating costs.
“In our industry, you don’t normally see a facility like this make a profit,” McCarthy said. “I think setting a 50 percent revenue-to-expense goal is doable. I don’t believe it will happen overnight, but certainly we are getting in that direction as we speak.”
St. Lucie County pays $210,000 a year to subsidize the Havert L. Fenn Center and Fort Pierce pays $1.5 million to subsidize the Sunrise Theatre, city records show.
Replacing the café with high-end vending machines will turn a money-loser into a small revenue source because the city will receive a percentage of the proceeds, McCarthy said.
South Florida Carefree Catering of Palm Beach Gardens has operated the Civic Center Café for about two years, McCarthy said. The company also caters events at the Civic Center. South Florida Carefree Catering did not respond to telephone and email messages left Monday seeking comment.
“We will aggressively look for untapped sources of revenue and potential cost savings,” McCarthy promised the council.
Offering the naming rights for the Civic Center and its rooms are among the potential revenue sources, McCarthy said. “That has been a top priority since I got there, naming rights for the facility,” McCarthy said.
Offering pouring rights for soft drinks and beer are other possible income sources, McCarthy said.
The Civic Center could also seek sponsors as the facility’s “official” bank, car or cellphone service provider, McCarthy said.
A quarterly concert series featuring classic rock and roll is expected to generate revenue starting next year, McCarthy said.
In addition, a marketing brochure and other advertising materials are being produced to attract more clients, McCarthy said.
The facility hosts a variety of auto, home improvement, garden and bridal trade shows, as well as fundraisers, weddings, parties, dances, seminars, business meetings, conferences and concerts.
“We’ve already streamlined the client booking process,” McCarthy said. “I’ve gotten feedback from some of our clients that we haven’t been the most user-friendly when it comes to booking the facility.”
