A market and arts centre in Wrexham has recorded a six-figure loss after being hit by the impact of Covid.
Ty Pawb suffered a £111,000 loss during the 2021/22 financial year, according to figures published by Wrexham Council.
The local authority said a reduction in parking fees and venue hire charges during the coronavirus pandemic was the main cause of the pressures, as well as extra maintenance costs.
The loss came despite the centre based in the former People’s Market building receiving a significant amount of grant funding during the 12-month period.
It included a sum of just over £137,000 from the Arts Council of Wales to help it keep running.
Explaining the reasons for the the negative financial outcome, Cllr Hugh Jones, the council's arts portfolio holder, said in a report: “The projection for 21/22 showed an in-year deficit broadly in the region of £100,000, due partly to the decreased income from both car parking and venue hire.
“Also, from the repair and maintenance work which was unable to be undertaken during the lockdown periods being carried over into 21/22.
“This was as a direct result of more people working from home and the associated discounts in the other Wrexham Council car parks (i.e. free parking after 11 am).
“The additional costs associated with repairs and maintenance works carried over from the previous year will not be carried forward into future years, but these costs incurred during 2021/22 contributed to an in-year deficit of £111,766.”
He added: “Based on a normal year we wouldn’t expect such an in-year deficit.
“We are now in a more business as usual situation and as such are seeing more normal practices resume in terms of income generation.”
Venue hire bookings at the centre were expected to exceed targets by between ten to fifteen per cent by February 2020 but this was interrupted by the pandemic.
Occupancy levels within the car park previously stood at 85 per cent, which has now dipped by more than half to just 40 per cent.
About 500,000 visitors came through the building's doors during 2019/20.
However, annual footfall figures dropped to about 281,000 in the last financial year.
Despite the issues, Cllr Jones said there were reasons to be optimistic about Ty Pawb's future, with market stalls almost full thanks to sustained interest from new businesses.
He said: “There was uncertainty around the potential uptake of face-to-face meetings and public gatherings post-Covid.
“However, 2021/22 saw a steady increase in venue hire and events across the year with many legacy customers returning and a positive number of new customers using our facilities.
“It was encouraging to see a sustained level of interest from new start-up businesses post Covid with several casual traders having established themselves and moving to permanent tenancy
“The footfall figures for 2021/22 show that Ty Pawb had 280,909 visitors across the year with the highest monthly figure being 39,789.
“This shows a positive level of footfall and demonstrates the willingness of the public to begin to return to social interaction and face to face engagement.”
The report will be discussed at a meeting of the council's employment, business and investment scrutiny committee being held tomorrow (Wednesday, July 6).
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