R BRAMPTON brompton.co Flower City

Transcription

1 R BRAMPTON brompton.co Flower City GI-I Report Community and Public Services Committee Committee of the Council of The Corporation of the City of Brampton Date: January 26, 2015 File: R15 COMMUNITY & PUBLIC SERVICES COMMIITEE DATE: ~~brua.ry LJ, 2015 Subject: Contact: Unsolicited Proposal for Canada 150 IceSkatePark Brampton Brian Rutherford, Director, Business Services Office, Public Services Overview: At the September 3,2014 meeting of Committee of Council, John Stillich, President of Icepark Group Inc., made a delegation on an unsolicited proposal for a large outdoor ice park ("lceskatepark") on lands at the PowerAde Centre. Icepark Group Inc. ("Icepark Group") is an incorporated not-for-profit organization in Peel. The purpose of the group is to promote ice skating and other sports. The Icepark Group has no interest in developing or operating the proposed facilities and sees the project as either a municipal undertaking (their preference) or as a private sector operation. The IceSkatePark proposal advocates for the development of a very large and diverse complex of ice facilities designed to attract use from both the Brampton community and the Greater Toronto and Hamilton area. The intent is to stimulate participation in physical activity levels along with a variety of personal, community and economic benefits. Committee of Council referred the IceSkatePark concept to staff for a report back to a future Committee meeting, particularly with respect to potential municipal involvement in the proposal, the estimated cost of any further analysis of the concept, and cost sharing on any further analysis of the concept with other levels of government, the Icepark Group Inc. or others. Based on review of the IceSkatePark concept and business case, staff does not recommend municipal involvement in the proposal, including the City's participation in any further study or analysis of the proposal. This recommendation is based on several major concerns with the IceSkatePark concept and business case, including financial viability, fit with existing and inprogress outdoor ice facilities in Brampton, capital costs and operating costs.

2 Recommendations: 1. THAT the report from Brian Rutherford, Director, Business Services Office, Public Services Department, dated January 26, 2015 to the Community and Public Services Committee meeting of February 4, 2015 re: Unsolicited Proposal for Canada 150 IceSkatePark Brampton (File R15) be received; 2. THAT the City not participate in further study or development of Canada 150 IceSkatePark Brampton as proposed by the Icepark Group Inc.; and 3. THAT the proposed Parks and Recreation Master Plan include review of the provision of indoor and outdoor ice facilities to provide opportunities to serve Brampton residents. Background: John Stillich, President of Icepark Group Inc., made a delegation to Committee of Council on September 3,2014 on an unsolicited proposal for a large outdoor ice park ("lceskatepark") on lands at the PowerAde Centre. The presentation outlined the proposed IceSkatePark concept, findings from the Icepark Group's research and business case for the proposed facility and requested, among other things, that the City of Brampton: Support the IceSkatePark as a Brampton initiative and add it to the City's Strategic Plan; Direct staff to complete a timely analysis of the concept and business case; and Undertake further research on the concept and its implementation in time for Canada's sesquicentennial year in 2017, including capital cost sharing with the federal and provincial governments on an equal basis (Le., 1/3 share for each level of government). The following recommendation of the Committee of Council Meeting of September 3, 2014 was approved by Council on September 10, 2014: CW That the delegation from John Stillich, President, Icepark Group Inc., to the Committee of Council Meeting of September 3, 2014, re: Canada 150 IceSkatePark Brampton be received; and, 2. That the IceSkatePark concept be referred to staff for a report back to a future Committee meeting, particularly with respect to: a. Potential municipal involvement in the proposal b. The estimated cost of any further analysis of the concept; and, c. Cost sharing on any further analysis of the concept with other levels of government, the Icepark Group Inc. or others. 2

3 Subsequent to the September meeting of Committee of Council, City staff met with members of Icepark Group Inc. and staff from the Ontario Ministry of Culture, Tourism and Recreation on October 22,2014 to discuss the IceSkatePark proposal and potential provincial programs that could potentially support the project, including feasibility study funding. The IceSkatePark was initially proposed to the City of Mississauga. Mr. Stillich made a deputation to the City of Mississauga Budget Committee (December 3,2013) proposing the ice park concept for municipal lands at Hurontario St. and Matheson Boulevard East and requested the municipality approve funds for further study. The City of Mississauga decided not to proceed with any study or detailed evaluation of the proposal citing a number of reasons, including: The City's financial challenges and priorities, including its limited capital funding for various recreational projects and municipal infrastructure projects; The proposal's projected overall feasibility and costs, the existence of other outdoor skating amenities (e.g., Mississauga's Celebration Square) that are free, attendance estimates and other uncertainties and limitations of the business plan; and The City's experience with other major facility proposals, including high operating costs. Mr. Stillich also approached the Peel District School Board with respect to the possibility of the Britannia Farm site (west side of Hurontario, south of PDSB head offices). The PDSB indicated that such an ice park is not within the school board's mandate. Mr. Stillich contacted the City Clerk of Brampton about making a presentation to Brampton Council about locating the ice park on PowerAde Centre lands. Mr. Stillich made a delegation to the September 3,2014 meeting of Committee of Council. Overview of the /ceskatepark Proposal The Icepark Group has prepared a business case for the proposed facility, including a concept description and a concept drawing, which are attached to this report as Appendix A and B, respectively. The business case may be accessed at the Icepark Group's web site at IceSkatePark is proposed as a major multi-faceted outdoor public park focused on ice skating. Icepark Group's business case states the park's purposes are several: A lasting celebration of Canada's national winter sport on the occasion of Canada's 150th birthday; The promotion of active living and health; The stimulation of economic activity through tourism; The raising of the economic profile of the city of Brampton in North America; and The creation of a venue for winter enjoyment that does not currently exist. 3

4 The proposed location of the IceSkatePark is the north section of the PowerAde Centre (also referred to as the Brampton Sports Park) on lands used for sports fields (rugby and cricket). IceSkatePark is envisioned to include a range of facilities and features to draw significant numbers of visits from people of all ages. Proposed features include: 1,300 metre skating circuit, wide enough to enable simultaneous skating in two directions Outdoor long-track speed skating oval and a short-track course for competitive events and athlete development, including spectator seating Outdoor hockey and figure skating arena with spectator seating Outdoor practice rink Hockey shoot'n'score galleries (similar to baseball batting cage) 200 metre long toboggan ride Indoor (year-round) curling centre Large sheltered outdoor swimming pool or several smaller pools, warmed using waste heat from the ice refrigeration system Canadian landscaping along the main skating circuit Colourful and active lighting features throughout the park Glass igloo shelters for resting, plus other types of resting areas Animal enclosure (for example, reindeer during the Christmas season) Main building for admission to the park, with change/preparation area, lockers, washrooms, licensed restaurant, function rooms, skate rentals, etc. Food kiosks (or cafe building) at other locations in the park, to provide a variety of high quality popular foods Multi-level parking garage The business case outlines the proposal and provides attendance estimates, capital and operating costs, and a variety of options and scenarios for the development and operation of the proposed IceSkatePark. This report provides comments from City staff on the IceSkatePark proposal and potential involvement by the City. Current Situation: Staff Comments on the IceSkatePark Concept and Business Case There is no doubt that outdoor ice facilities can provide many benefits to individuals and communities through physical activity and sports. Outdoor ice facilities are also successful in animating public spaces and winter events in many cities in Canada, contributing to the urban environment and economy. 4

5 It is far less clear that a major complex of different ice facilities in a winter theme park would make a successful destination or, indeed, that such a complex is a good model for delivering opportunities for ice-based recreation and sports to the community. The IceSkatePark proposal would be a major undertaking for any municipality. The nature and scale of the proposal is well above and beyond the level of facilities that most municipalities would consider as part of service provision or as part of a balanced system of recreation facilities. The IceSkatePark concept is an ambitious proposal. The concept is based on a cluster of ice facilities, including extensive pleasure skating facilities as well as facilities for various ice-based sports. The concept includes approximately 330,000 square feet of outdoor ice surface, which is the equivalent of 20 ice hockey pads. The business case provided by the Icepark Group does not provide an adequate basis for determining the magnitude and characteristics of potential demand and use of the proposed facility. The community survey is not a reliable indication of community opinion or interest, nor is it sufficient tool for estimating facility attendance or usage. An adequate market study for the IceSkatePark concept would need to address both primary and secondary markets (Le., Brampton/Peel and the GTA region) as well as specialized markets for sports, tourism and events. The cost of this type of market research is estimated in the range of $100,000. Depending on the outcome of such research on market demand, a business plan to address project costs and operational feasibility would also be required. The cost of preparing a business plan for a facility of the scale and nature of the IceSkatePark is estimated in the range of $50,000 to $65,000. Work on a proposed new Parks and Recreation Master Plan for Brampton will be initiated in This process will provide an up-to-date understanding of recreation facility needs and would be the logical first step before any embarking on any market research or other detailed analysis of a major facility undertaking such as the IceSkatePark concept. Based on review of the IceSkatePark concept and business case, staff does not recommend municipal involvement in the proposal, including the City's participation in any further study or analysis of the proposal. The following major observations and comments on the IceSkatePark concept and business case provide the basis for the staff recommendation. Community Survey The Icepark Group conducted an "attitudinal survey" of a number of residents, initially in Mississauga (227 responses) and more recently in Brampton (129 responses). The main purpose of the survey was to determine public acceptability and potential viability of the IceSkatePark concept, including potential usage of the park and attitudes to the costs associated with developing and operating such a facility. The survey information 5

6 presented in the business case is based on a blend of the Mississauga and Brampton findings. The business case indicates that the survey findings show extensive community support for the IceSkatePark concept; however, the survey scope and methodology limit its reliability. For example, the survey was administered on a door-to-door basis by the Icepark Group in selected residential areas and housing types (single detached, semidetached and townhouses). Some workplaces and restaurant patrons were also included. A reliable survey would require a much more rigorous approach and methodology, such as a random sample that is representative of the overall community. The community survey focused on attitudes towards a potential major outdoor ice skating park. In general, attitudes and opinions about potential facilities tend not to be reliable in predicting people's actual use of such facilities. For example, the survey findings indicate that 63% of respondents who engage in skating said they would likely use the proposed ice park several times a year. This is well above actual participation rates for ice skating reported in major Canadian surveys of physical activity. The 2005 Canadian Community Health Survey found 7.1 % of Canadians aged 12 or older had participated in ice skating 2.2 times per month. While the business case "discounts" the community survey findings in estimating attendance, the survey findings on attitude or stated intent to use the proposed facility must be seen as highly optimistic compared to actual skating behaviour. Financial Viability Icepark Group Inc. ("Icepark Group") is an incorporated not-for-profit organization in Peel. The purpose of the group is to promote ice skating and other sports. The Icepark Group has no interest in developing or operating the proposed facilities and sees the project as either a municipal undertaking (their preference) or as a private sector operation. The business case prepared by Icepark Group suggests the facility would be able to earn sufficient revenue to cover operating costs. City staff do not believe the IceSkatePark facility will attract sufficient paid usage to cover the cost of operations, let alone facility capital costs. There are a number of existing outdoor artificial ice facilities in Brampton and the GTA that provide free skating. While these outdoor ice facilities may not provide the magnitude of skating facilities contemplated in the IceSkatePark concept, they will nonetheless continue to attract public use, based on their own inherent utility and community appeal as well as the tradition of free access. The business case includes a range of attendance estimates based on different facility options and visitor scenarios. For the Icepark Group's preferred facility option, the lower visit scenario is 312,000 annual visits and the higher visit scenario is 416,000 annual visits. In either case, approximately 53% of these are visits by Brampton residents, with the remaining 47% coming from elsewhere in the Greater Toronto and Hamilton Area, tourists or other sources. 6

7 It is acknowledged that the intent of the IceSkatePark concept is to provide a destination facility that will stimulate interest and increase participation levels in outdoor winter pursuits amongst residents of Brampton and the GT A. Such large growth in participation levels are not likely to occur or be sustained, which presents a significant financial risk in developing and operating a major complex of outdoor ice facilities. Fit with Outdoor Ice Facilities in Brampton The business case underestimates the role of existing and in-progress facilities for pleasure skating in Brampton. Brampton has 2 existing outdoor artificial ice facilities at present and 2 more facilities that will enter service in 2015 and 2016, as follows: Gage Park - pleasure skating trail Mount Pleasant Village Square - pleasure skating rink Gore Meadows - covered outdoor ice rink (under construction) Chinguacousy Park - pleasure skating pond/canal (in design phase) The Gage Park skating trail is estimated to serve approximately 40,000 skaters a season. Taken together, the 4 outdoor ice facilities will provide diverse and distinctive outdoor ice facilities with an emphasis on pleasure skating. They are located across the city and provide free access to informal and spontaneous skating opportunities to Brampton residents. The City also has a program of community-supported ice rinks, which are natural ice rinks provided in City parks in conjunction with volunteer residents. By way of context on indoor ice facilities, it operates 2 indoor curling facilities and.1 0 arenas with 16 indoor hockey rinks. Brampton is also home to the PowerAde Centre, which includes an OHL-Ievel spectator arena and 3 community rinks. Appendix C is a map of these ice facilities. Capital Costs Capital costs used in the business case are low and do not appear realistic. Many of the cost factors (such as cost of refrigerated surfaces and buildings) are below the estimated or actual costs of similar work on other projects. The capital costs do not appear to include work that would be required for a development of this magnitude, such as site servicing, re-grading, storm water management, landscaping, etc., nor do they appear to include allowances for various soft costs (such as professional fees, permits, etc.). 7

8 6'-8 Icepark Group's business case outlines a range of capital costs depending on development options and scenarios. For the preferred option, capital costs are estimated between $79 and $84 million. Overall, the scope of facilities in the IceSkatePark concept would more likely be in the range of $125 million. Operating Costs Operating costs and revenues indicated in the business case have not been reviewed in detail by City staff as they involve a variety of inputs and assumptions. In general, the operating expenditures appear low, particularly with respect to labour and utility costs. Overall, the preferred Option A is estimated to generate an operating surplus of $435,000 to $1,510,000 per year, depending on visitor levels. A major concern with the business case is the expectation the facility will generate sufficient revenues to cover facility operating costs. This is predicated on the ability of the facility to attract sufficient paid usage from Brampton and the GTA which is very optimistic. Revenues are estimated between $3.3 million and $4.4 million, depending on the number of visits. Revenues are based on admission fees (at $5 average admission), parking, net food income, skate rentals and other in-park revenues from visitors using other facilities on a charge basis. Federal and Provincial Funding Icepark Group proposes that the IceSkatePark project be advanced by the City as an initiative to celebrate Canada's 150th birthday in The Icepark Group also advocates that the City pursue equal cost sharing of the project with the federal and provincial governments. The City is in the process of identifying and prioritizing projects for the New Building Canada Plan (NBCF) which includes projects for transit, transportation infrastructure, and other municipal facilities. The New Building Canada Plan (NBCF) has undergone significant changes to the eligible categories from previous programs. Projects related to sports and recreation infrastructure, culture and tourism can be considered for funding under the Federal Gas Tax component of the program. The Icepark Group proposal does not qualify under either the National-Regional Projects or Provincial Territorial Infrastructure cost-sharing components of the program. In the past, the City has applied Federal Gas Tax funds towards road resurfacing and transit projects. The annual amount currently received by the City is just under $28 million. 8

9 The IceSkatePark proposal would need to be assessed for its priority with respect to the use of Federal Gas Tax funds. Any Federal Gas Tax funds used towards IceSkatePark proposal would reduce available funds for other uses. City Funding The Icepark Group's business case proposes "In recognition of the City budget's cash shortfall for infrastructure, the net municipal share is proposed to be debt-financed." The business case also suggests that two-thirds of the municipal debt repayment costs to be paid by additional residential property taxes. Major facilities need to be considered in the context of resources required to develop and renew basic recreational infrastructure. The City has a significant capital program identified for basic recreational services between now and build-out. Reinvestment in existing recreational infrastructure - parks and recreation centres and arenas will also demand significant funding. A new Master Plan for parks and recreation infrastructure is proposed to be initiated in It will provide guidance on the facility needs and priorities and should be completed before a major facility initiative such as the IceSkatePark. Use of City Lands at the Brampton Sports ParkiPowerAde Centre Site The proposed location of the IceSkatePark is the north section of the PowerAde Centre (also referred to as the Brampton Sports Park) on the "Phase Two" lands which have been developed for sports fields (rugby and cricket). The majority of the area shown as the location of IceSkatePark is leased to the Brampton Rugby Club. The Brampton Rugby Club operates the sports fields and club house on a long term lease from the City, with options to renew until The proposed IceSkatePark location would also have some impacts on a cricket field and other lands to the east and south of the rugby club. Displacing the rugby club for the IceSkatePark would likely require relocating the rugby facilities to another location, which may trigger additional land costs and facility development costs. The Phase Two lands are, from time to time, proposed as the location for destination facilities (e.g., sports stadiums). While a destination sports or recreation facility may be suitable for the site, it is also important to acknowledge that the Phase Two lands provide facilities that meet ongoing community needs. Cost sharing of any further analysis of the concept This section of the report responds to the directive of Committee of Council to explore the potential for cost sharing of any further analysis of the concept with other levels of government, the Icepark Group or others. As indicated above, City staff met with representatives of the Icepark Group Inc. and staff from the provincial Ministry of Tourism Culture and Sport staff in October 2014 to 9

10 discuss the IceSkatePark proposal and the potential for cost sharing if further study were to be pursued. Provincial staff indicated that, based on the nature of the IceSkatePark proposal, the Tourism Development Fund program may be a potential option for non-capital funding to undertake market research or other analysis of the project. The province would expect the municipality to apply for funding from this program. The Icepark Group has indicated that it cannot contribute to the cost of any further analysis. The Icepark Group notes that it has already contributed to the concept and business case. Again, City staff does not recommend any further study or analysis of the concept. Corporate Implications: Financial Implications: There are no financial implications to this report. If Committee directs staff to pursue further analysis of the concept, potential funding sources will be identified in a report back to Committee on the scope and process for any such analysis. Strategic Plan: This report supports the Strategic Plan priorities through diligence to ensure continued corporate financial stability and value for taxpayers (Corporate Excellence). Conclusion: Based on review of the IceSkatePark concept and business case, staff does not recommend municipal involvement in the proposal, including the City's participation in any further study or analysis of the proposal. This recommendation is based on several major concerns with the IceSkatePark concept and business case, including financial viability, fit with existing and in-progress outdoor ice facilities in Brampton, capital costs and operating costs. Brian Rutherford Director, Business Services 10

11 lot.. " Appendices: Appendix A: Canada 150 IceSkatePark Brampton Concept Description (excerpt from Canada 150 IceSkatePark Brampton Business Case) Appendix B: Concept Drawing for Canada 150 IceSkatePark Brampton (excerpt from Canada 150 IceSkatePark Brampton Business Case) Appendix C: Brampton Ice Facilities (map) Report authored by: Brian Rutherford 11

12 Appendix A: Canada 150 Ice5katePark Brampton Concept Description Canada 150 IceSkatePark Brampton is a proposal for a major public winter park in Brampton, focusing on active participation by people across the region. The park is proposed to be open from mid-morning to late evening seven days a week, from December 1 to mid-march. It is envisioned to include all or most of the following features to draw significant numbers of visits from people of all ages across the Brampton/Toronto region. These features include : A continuous outdoor refri gerated skating circuit of up to 1,400 metres in length, and wide enough to enable simultaneous skating in two directions; Several large refrige rated ice surfaces and off-ice surfaces for gathering and socializing; An outdoor long-track speedskating oval meeting international sta ndards, fo r competition and athlete development, with a grandstand and dressing facilities,.... ~ artificially re frigerated) '.' I ~"'.. '.. I '1Ie':k".~ _ '~ {.:.-L. ;~ plus a short-track oval; A hockey Shoot'n'Score ga llery (similar to a baseball batting cage, but with pucks passed to players); An outdoor hockey and figure skating performance arena, with gran dstands (to '" accommodate up to 2,000 spectators) and dress ing facilities, for competitions and special events; A 200-metre two-lane toboggan ride; A year-round curling centre and "Curling Rocks!" building for learning the spo rt and for competitions; the curling centre may be, at least in part, privately operated; A large sheltered outdoor pool or several smaller pools, heated using waste heat from the ice refrigerat ion system, and with separate dressing rooms; A variety of art exh ibits throughout the park, such as sculptures of Cana dia n wildlife; Canadian landscaping along the ma in skating circuit, to fram e and define the ice surfaces, including retaining walls, hilly terrai ns, mixed vegetation and rock formations; Colourful and active lighting features throughout the park; Glass igloo shelters for resting, plus other types of resti ng areas; - 44

13 An animal enclosure (perhaps for reind ee r during the Christmas season; other animal exhibits at other times; perhaps a 'petting zoo') A main building for admission to the park, and which includes o Change/preparation area, lockers and washrooms; o A licensed restaurant; o An area for private functions, (corporate eve nts, weddings, etc.); o An Outfitters Shop for skate rentals, and for skate and clothing purchases for visitors who come unprepared, and for a va riety of weather conditions; Food kiosks (or cafe building) at other locations in the park, to provide a variety of popular foods; Several maintenance buildings that include refrigeration equipment, zambonis, and storage; A multi-level parking garage. In addition to general recreational skating and constructed elements, a significant number of special events and competitions are possible that can attract a variety of visitors to the park. Th ese can include such eve nts as: A first Opening Day celebration as Ontario's premier ice skating venue and as Canada's premier sesquicentennial project; All-day free Learn-to-Skate programs; Skate with Celebrities (NHL/OHL hockey players, Olympians and Canadian Figure Skating champions); Skate for charities (cancer, Hea rt & Stroke, women's shelters, etc.); Skate with t he Mayor, or celebrities; Skate with Santa; Outdoor hockey tournaments; Ice sculpture competitions or other art events; Family Day, New Years Day, March Break special events or promotions; Speedskating competitions; Corporate promotions (e.g. win a car); Corporate activities (team building, socializing, Christmas Dinner&Skate, etc.); Ice dancing or other professional performances and competitions; Sleigh-riding on ice;; Winter Lights Festival, and carnival activities

14 Park Location Due to its large size (over 6 hectares) and the need to locate the park at a relatively easy-to-access location, Canada 150 Ice5katePark Brampton is proposed to be located in a nonresidential area in the northernmost portion of the Brampton Sports Park located on the east side of Kennedy Road south of Steeles Avenue. It is accessible from Hi ghway 407 and Highway 410, and via the Kennedy Road bus. The existing Sports Park also includes the Powerade Centre and other athletic fields. Other vacant park sites may exit, but are significantly sma ll er or more remote than the Sports Park site. Private properties of suitable size in non-residential areas can be found, but wou ld require purchase by the City of Brampton. A drawing of a configuration proposed by Icepark Group Inc. is shown in Appendix B. -, -..c: 46

15 Appendix B: Concept Drawing for Canada 150 IceSkatePark Brampton Concept for a Canada 150 IceSkatePark in Brampton ~ 13OdSCJIPilg, IIrt, SWIplUiO '''' &0"""", Cricket ReId oleasure skatina circuit - ~, 1Q1~ 2DiF:et I exhbl hail, Bus Par1dng PowenHIa Centre parking

16 Appendix C - Brampton Ice Facilities 1 J..,..." 1 ~"" J I ;; ;; t " e,i ;; 1 4 6c><ai'lI 01 1'1 ~ddre Il.,, f / " ~ ~ J,,,-, I ~ j A o..--os!e.,4,, ~SlW, SIeftes Ave W SIeoeIos".. e t - G\,... 0 BRAMPTON Flower City Kllomelers * Ice Brampton Ice Facilities Proposed location of Skate Park at Powerade Centre! Brampton Sports Park Indoor Ice Facilities Curling Arenas Outdoor Ice Facilities... Existing ArtificIal Ice,6 Future Artificial Ice ; Parks