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HomeMy WebLinkAboutCSD-16-043 - Victus Hockey Academy Inc. - Sportsworld Arena REPORT TO: Community and Infrastructure Services Committee DATE OF MEETING: June 13, 2016 SUBMITTED BY: Kim Kugler, Director, Sport & Cemeteries Division 519-741-2200 x 7544 PREPARED BY: Paul Pickard, Manager, The Aud and Arenas 519-741-2200 x 5262 WARD(S) INVOLVED: Ward 3 DATE OF REPORT: May 28, 2016 REPORT NO.: CSD-16-043 SUBJECT: VICTUS HOCKEY ACADEMY LP LICENSE AGREEMENT AT SPORTSWORLD ARENA ___________________________________________________________________ RECOMMENDATION: That the Mayor and Clerk be authorized to execute a license agreement with Victus Academy LP for space at Sportsworld Arena, municipally known as 35 Sportsworld Crossing Road, said agreement to be satisfactory to the City Solicitor. BACKGROUND: InDecember 2013, The Leisure should aggressively pursue partnerships in an effort to leverage an increased array of leisure facilities and program delivery including partnerships with the school boards, private sector organizations(e.g. corporations naming rights, land developers, operating partners) and community non- The City of Kitchener was approached by Victus Hockey Academy LP (Victus) to rent space and day time ice at the Sportsworld Arena for a private school. Their academy curriculum will provide elite hockey players in grade seven to twelve an opportunity to excel at school and at hockey simultaneously. The principle owner of Victus is Daniel Schmidt a life-long resident of Kitchener with a passion for education, hockey and excellence. The private school will seek accreditation from the Ministry of Education. The concept of an academy offering private education with a focus on sport is not new in Ontario there are others such as Blyth Academy, The Hill Academy and PEAC School for Elite Athletes. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. 5 - 1 REPORT: On March 28, 2016, Victus Academy confirmed their interest in operating an academy at the Sportsworld Arena starting in August, 2016. They wish to enter into a license agreement with the City of Kitchener (City) to utilize existing meeting space, ice time and to make some alterations to the spaces on the upper level of the arena to accommodate their classrooms and fitness training needs. The alterations are minor and will not inhibit the function of the space they are occupying. These alterations requested by Victus include soft wall partitions to provide a larger space for workout facility and some lockers for students. These alterations will be funded by Victus. The term of the agreement commences on August 2, 2016 and, terminates at midnight on August 1, 2017. The agreement has a renewal term of two additional one year terms that may be entered into as mutually agreed to between the City and Victus. The agreement may be renewed on the same terms and conditions although there shall be no further ability to renew the agreement at the end of the third year. In an effort to clearly identify roles and responsibilities, facility usage, rental fees, payment schedules, insurance requirements, and other related expectations a one year license agreement has been prepared for Victus and the City to execute. Staff believe the agreement negotiated mitigates the risks and makes it a win/win agreement that benefits both Victus Academy LP and the City of Kitchener. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: vision through the delivery of core service. FINANCIAL IMPLICATIONS: This one year license agreement with Victus will generate $73,000 of rental revenue by utilizing open weekday facility time at the Sportsworld Arena. The 2016 portion of revenue rental equaling $24,336 will be reported as a positive operating budget variance. The 2017 rental revenue of $48,664 will be reflected as new revenue when the 2017 operating budgets are established. Capital improvements required to operate the academy out of the Sportsworld Arena will be at the expense of Victus. COMMUNITY ENGAGEMENT: Victus conducted several public information sessions in an effort to attract students and answer questions about their academy program. INFORM advance of the council / committee meeting. ACKNOWLEDGED BY: Michael May, Deputy CAO, Community Services 5 - 2