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HomeMy WebLinkAboutFinance & Admin - 1994-06-06FAC\1994-06-06 JUNE 6, 1994 FINANCE & ADMINISTRATION COMMITTEE MINUTES CITY OF KITCHENER The Finance and Administration Committee met this date, commencing at 11:25 a.m., under the Chairmanship of Councillor C. Zehr with the following Members present: Mayor D.V. Cardillo, Councillors B. Stortz, T. Galloway, G. Lorentz, J. Smola, M. Wagner, J. Ziegler and M. Yantzi. Others present: Messrs. T. McKay, T. Clancy, T. McCabe, R.W. Pritchard, J. Wallace, L. Proulx, L.F. Parkhouse, K. Baulk, G. Sosnoski, Ms. D. Arnold and Mrs. J. Koppeser. PROPOSAL - NEW BINGO HALL Mr. Peter Howard appeared on behalf of Mirage Bingo concerning his proposal to open a new bingo facility in Kitchener at the property known municipally as 925 King Street East. The Committee was in receipt of a formal proposal document from Mirage Bingo and a report from Mrs. J. Koppeser dated June 1, 1994 outlining the procedures and criteria for an application to register and open a new bingo hall. Mr. Howard gave a presentation outlining his proposal, noting that Mirage has been registered with the Province under the Gaming Services Act and that he himself has approximately 30 years of experience in the bingo industry. Mr. Howard referred to the recent closing of Downtown Bingo and advised that 13 of the charities formerly associated with that organization have given their support to the opening of a new hall. He added that Mirage hopes to accommodate approximately 25 charities at the proposed location. Mr. Howard referred to bingo premises which his organization recently opened in Waterloo and extended an invitation to members of Council to visit the facility. Mr. Howard explained that he will be asking participating charities to form an association and pool their revenues in order that each can share equally in the profits. He also referred to anticipated charitable revenue in the first three years of operation as well as anticipated municipal license fees totalling approximately $317,000.00 over the three year period. In response to a question from Councillor Wagner, Mrs. Koppeser advised that Council lifted its moratorium on new bingo halls in December of 1993 and that the Province had since enacted a new Gamin,q Services Act. Councillor Wagner requested further information on the new Act and associated regulations. Councillor Wagner asked Mr. Howard to comment on the recent closure of Downtown Bingo and Mr. Howard referred to problems with the location and Mirage's intention to cater to both charitable and general public demand and to develop an appropriate market. He also indicated it was his company's intention to purchase and further develop the site at 925 King Street East and it was noted that negotiations are under way for two retail installations and the possible re-use of the automotive garages. Councillor Galloway referred to the map circulated with the Mirage Bingo proposal (Section 4) and noted that the locations of some of the existing bingo halls were incorrectly shown and that all of these, including the proposed facility are inside the area defined by the Expressway. Councillor Galloway asked whether the market research undertaken by Mr. Howard indicated an impact on other bingo clubs in the City. Mr. Howard replied that the study indicated a minimal impact and reaffirmed his organization's interest in developing a new market rather than moving the market share. Councillor Yantzi inquired as to how charities view the concept of pooling of revenues. Mr. Howard noted that pooling is a pilot scheme in Ontario and that the 25 charities involved in Waterloo have supported the concept on the basis that it is a much fairer way to do business. In response to a question from Mayor Cardillo, Mr. Howard acknowledged his understanding as to the amount of time required to process a zone change for the subject property. Mrs. Koppeser advised that all of the conditions outlined in her report have been met with the exception of those relating to planning matters. Mr. McCabe pointed out that the property in question is part of Stage 6 Zoning, approval of which could be delayed at the Ontario Municipal Board for as much as one year. He added that the new CR4 Zoning would not allow commercial entertainment, and the Planning Department has not determined as yet whether it would support the change required to accommodate a bingo facility. Mr. McCabe also clarified FINANCE & ADMINISTRATION COMMITTEE MINUTES JUNE 67 1994 - 50 - 1. PROPOSAL - NEW BINGO HALL (cont'd.) CITY OF KITCHENER that in addition to a zone change the property would also require an Official Plan Amendment, and that other vacant properties in the City would not require rezoning for the proposed use. He suggested that the City should be flexible in considering proposals involving the adaptive re-use of existing structures. Mrs. Koppeser further clarified that the applicant has to first comply with zoning requirements before continuing the application process and she referred to the steps outlined in her report. Mr. Wallace pointed out that the City should not make a decision at this time and suggested that Council receive the application for information, pending the applicant and staff addressing all of the planning issues. Moved by Councillor Yantzi - "That Council receive as information the proposal of Mr. Peter Howard, Mirage Bingo, to open a new bingo facility at 925 King Street East, and refer the matter to the Planning and Economic Development Committee for further consideration pending receipt of the necessary Zone Change and Official Plan Amendment applications and the corresponding staff report." Councillor Galloway noted that the City should inform the applicant as to how it views the principle of another bingo facility in the community. Councillor Ziegler referred to Mrs. Koppeser's report which indicates that Council may require the applicant to fund an independent market study as to the impact of a new bingo hall on existing halls and charitable licensees. Mr. Wayne Lohnes appeared in his capacity as President of the Kitchener Charity Bingo Palace and expressed concern over the application in part due to the proximity of the proposed facility to both his establishment and Bingo Country. Mr. Lohnes indicated that at present 26 charities use the Bingo Palace and additional applications are pending from 3 of the 14 charities left without a facility as a result of the closing of Downtown Bingo. He also explained the impact on charitable revenue where profits are pooled by the charities as opposed to being paid out by the hall owner. Mr. McCabe suggested that the notice required for a new bingo facility could be paired with the necessary planning notices and possibly eliminate the need for a second public process. Mr. Parkhouse pointed out that advertising relative to a new bingo hall application is the responsibility of the applicant. Councillor Zehr asked that duplication in regard to the two processes be eliminated where possible. The previous motion by Councillor Yantzi to receive the application as information was voted on and CARRIED. 2. CANADIAN CURLING HALL OF FAME AND MUSEUM The Committee was in receipt of a report and recommendation from Councillor M. Wagner dated June 1, 1994 as well as various items of correspondence in support of the proposal to locate the Hall of Fame and Museum at 122 Frederick Street (former Registry Building). They were also in receipt of a summary building report from Mr. L. Proulx dated June 1, 1994 incorporating information previously requested at the May 16, 1994 Committee meeting. Councillor M. Yantzi disclosed a conflict of interest and abstained from all voting and discussion concerning the proposal for the Canadian Curling Hall of Fame and Museum as he is employed by Community Justice Initiatives which has been involved in discussions with the K-W Multicultural Centre relative to the shared use of office space at 122 Frederick Street. Councillor Yantzi left the meeting at this time. 2. CANADIAN CURLING HALL OF FAME AND MUSEUM (cont'd.) Councillor Wagner referred to the recommendation in his report and argued that the Curling Hall of Fame should be allowed use of the former Registry Building on the basis that it is a heritage FINANCE & ADMINISTRATION COMMITTEE MINUTES JUNE 67 1994 - 51 - CITY OF KITCHENER landmark and should be used for other than office purposes. He added that the physical location of the building could also result in the spinoff use of other adjacent heritage structures. He also pointed out that at present there is a surplus of unused office space elsewhere in the City which could be potentially leased by the Multicultural Centre. Councillor Stortz questioned whether Councillor Wagner's recommendation was in order given the City's policy on the rental of municipally owned space to non-profit organizations. He suggested that the resolution should acknowledge the policy and reflect the City's expectation that it receive rent at fair market value. Mrs. Dot McRae appeared on behalf of the Board of Directors of the Canadian Curling Hall of Fame and formally requested use of the Registry Building. She explained that the Board first viewed the building in February of 1994 and she reviewed its merits as a museum location, including the building's heritage value, location and lighting. Mrs. McRae stated that the Board is prepared to recommend locating the Hall of Fame at 122 Frederick Street at the June 18, 1994 meeting of the Canadian Curling Association and added that at present there is also a proposal before the Association to locate the Hall of Fame in Regina, Saskatchewan. Mrs. McRae elaborated on the nature of the proposed Hall of Fame and its value as a tourist attraction. She noted that the Museum would employ a minimum of one full-time staff person and in addition to locating the Hall of Fame in Kitchener, she is also prepared to recommend that the Curling Association hold a major curling event in Kitchener once every five years. In response to a question from Councillor Ziegler, Mrs. McRae indicated that the Board had not envisioned charging an entrance fee to visit the Museum, as this is viewed as a deterrent. Councillor Ziegler asked whether the Board had considered paying rent for the building and had investigated the possibility of contributions from local businesses who would benefits from locating the Hall of Fame in Kitchener. She acknowledged that this would be possible, though at this time the organization does not have the capital to pay rent. Councillor Galloway asked whether the Board's recommendation to locate the Hall of Fame in Kitchener would also apply to alternate locations. Mrs. McRae replied that she was unsure whether other buildings would be as ideal as 122 Frederick Street. Mr. Bert Snow appeared in his capacity as President of the Men's Curling Division (K-W Granite Club) and also on behalf of the Westmount Curling Club. He outlined the history of curling in the area and offered the opinion that the potential loss of rental revenue would be more than offset by the benefits of locating a national or international curling event in Kitchener. He urged the Committee to support the concept and noted that it would bring extensive media coverage and benefit the local curling community. Mr. Terry Hayes appeared on behalf of the Ontario Curling Association (Zone 12 Representative) and in support of the proposal to locate the Curling Hall of Fame in Kitchener. Councillor Galloway asked whether members would be willing to provide financial support to offset the rental costs for 122 Frederick Street. Mr. Hayes replied that though all members acknowledge the value of the Hall of Fame he could not address the issue of financial support at this time. In response to a further question, he advised that approximately 16 clubs are organized in the area with a combined membership of approximately 5,000. Mr. John Bingeman appeared on behalf of Bingeman Park and in support of the Curling Hall of Fame proposal. He acknowledged that the K-W Multicultural Centre makes a significant contribution to the community, however, their effectiveness would not suffer if they were not located at 122 Frederick Street, though this could not be said of the proposed Hall of Fame. He referred to the benefits to the local tourism industry of having the Hall of Fame and various national tournaments in the City, especially since these would occur at a time of year when there 2. CANADIAN CURLING HALL OF FAME AND MUSEUM (cont'd.) is less tourist activity. He referred to the proposed guarantee of a tournament in the City once every five years and noted the economic benefit of not incurring the cost of bidding on such events. Councillor Ziegler questioned what benefit would accrue to community ratepayers who are not involved in the hospitality industry and Mr. Bingeman replied that other retail operations would also FINANCE & ADMINISTRATION COMMITTEE MINUTES JUNE 67 1994 - 52 - CITY OF KITCHENER benefit from these events. Councillor Ziegler asked whether the hospitality industry would be willing to make a financial contribution relative to the Hall of Fame. Mr. Bingeman replied that the industry focuses its contributions on the Area Visitor and Convention Bureau, and that such funding would fall outside of its mandate. Mr. Richard Tyssen, Executive Director, Seagrams Museum, appeared on behalf of unspecified cultural institutions. He pointed out that in his opinion the estimates provided of the financial benefits of the Hall of Fame proposal are conservative and do not address the indirect benefits. He suggested that visitors to the City usually come to participate in several attractions and that any additions in this area would benefit the community. He strongly endorsed the Hall of Fame proposal and its location in the Registry Building, adding that waiving the rental revenue would constitute a yearly investment which would yield many millions of dollars in return. Councillor Zehr asked for clarification of the status of the Seagrams Museum relative to municipal property taxes. Mr. Tyssen replied that Seagrams paid municipal taxes for the first nine years of its existence after which Waterloo Council granted an exemption. He added this was done without any taxpayer complaints, noting that they recognize the value of such an investment. Mrs. Jane Falconer, General Manager, K-W Area Visitor and Convention Bureau, extended her full support for both the Hall of Fame proposal and location of the facility at 122 Frederick Street. Support was offered on the basis that it would enhance the tourist value of the area. Mrs. Falconer also acknowledged the efforts of Councillor Wagner in pursuing this opportunity. Councillor Lorentz offered the opinion that the municipality should act as a catalyst in bringing this type of proposal to the City's attention, but should not be involved in funding such ventures. He suggested that this is a good opportunity for a partnership with private enterprise, and noted that the hospitality industry stands to benefit to a greater extent than the average taxpayer. Councillor Zehr asked for clarification of the property tax issue as it relates to the Hall of Fame proposal. Mrs. McRae replied that there had been no discussions on the payment of property taxes, though the Hall of Fame has acknowledged responsibility for operating costs and staffing. Councillor Zehr asked for clarification of the lease term and Mrs. McRae replied that at minimum they would agree to a three year lease, but would prefer a longer term. Councillor Zehr asked what Mrs. McRae's position was on the potential building alteration costs and she replied that the specifics have not been discussed, but it was assumed the building owner would be responsible for such items as access for the handicapped. Councillor Zehr asked whether the Hall of Fame would utilize the upper floor alone and Mrs. McRae replied that the proposal was developed in terms of the whole building, but that she was amenable to sharing the space with the right partner. Mayor Cardillo pointed out that two other organizations have approached the City concerning use of the building at 122 Frederick Street, specifically, Softball Canada and Swim Canada. Councillor Wagner clarified that representatives of Softball Canada had toured the site and referred to a letter dated June 6, 1994 from Mr. Michael Goodridge indicating an interest in negotiating for use of the premises. He also pointed out that Softball Canada has spoken with Mrs. McRae and that they could in fact share the facility. Councillor Zehr referred to a letter from Mr. David Cooke, President, K-W Multicultural Centre Inc. dated June 3, 1994 which was previously circulated to Committee members. The letter CANADIAN CURLING HALL OF FAME AND MUSEUM (cont'd.) indicates the willingness of the Multicultural Centre to license the upper level of 122 Frederick Street and to sign the draft document prepared by the City's Legal Department. Councillor Zehr also pointed out that a representative of the Centre was in attendance this date to answer any questions. Councillor Stortz advised that he had met with the Multicultural Centre's Board and their offer is as set out in Mr. Cooke's letter of June 3. He reported that Community Justice Initiatives has also expressed an interest in sharing the facility and may be willing to relocate and pay rent of fair market value. Councillor Stortz noted that the Centre had also been willing to send additional FINANCE & ADMINISTRATION COMMITTEE MINUTES JUNE 67 1994 delegations in support of their position. - 53 - CITY OF KITCHENER Mr. McKay stated that the City has been involved intermittently in negotiations with the Centre over use of the Registry Building and that a ruling from Regional Assessment on the tax status of the property was the major impediment, though this has now been clarified. He also noted that Ms. Arnold had sent a draft Licensing Agreement to the Multicultural Centre. Mr. McKay added that the office use is presently legal non-conforming with respect to parking requirements, and that if another use was contemplated, the parking requirement for the downtown would apply and either additional spaces would have to be created or a payment made in lieu of providing these. Mr. McCabe added that the physical limitations of the site only allow two to three regular parking spaces, whereas nine spaces would normally be required for an office in the downtown and a museum would require 15 spaces. He estimated that the difference between these two requirements would still leave six spaces at an average cost between $10,000.00 and $20,000.00 per space. Mr. McKay pointed out that alternate office space is available in the downtown as well as space in the City Hall, though not at the asking price for 122 Frederick Street. Mr. Baulk described the recent visit by Board members of Softball Canada who were also interested in the site at 122 Frederick Street on the basis of its location, the heritage qualities of the building and community involvement in fastball. He stated that they are aware that the proposal is at the concept stage and that Council has yet to decide on the best use of the building. Councillor Wagner referred to a $2,800,000.00 economic benefit to the City relative to hosting a major national curling event and also stressed non-measurable returns including televised promotion of the host city. He noted that the latter has advertising value of approximately $30,000.00. Councillor Wagner advised that at present there is 276,800 square feet of office space vacant in nine downtown office buildings and that the Canada Life building presently charges $5.00 per square foot, which is comparable to the rent being asked for 122 Frederick Street. He stressed that in his opinion the Registry Building is too important a structure for office use and suggested that if such a use were approved it would be inconsistent with the intent, if not the letter, of the City's own recently approved Official Plan. He noted that the Curling Hall of Fame would also pay common area maintenance costs and subject to further consideration of the financial details may be willing to contribute or raise additional operating funds. Additional funding may also be available from local and area curling clubs. Councillor Wagner suggested that the Hall of Fame proposal is a rare and unique opportunity which should not be passed up. He suggested that the City should take some sort of initiative to generate partnerships with private enterprise and in this regard the Canadian Curling Association may be able to solicit sponsors for the Hall of Fame if Council agrees to the proposal. He stated that the future vision of the City is at stake and that the municipality should welcome attractions which promote tourism and in this case also contribute to downtown revitalization. He offered the opinion that the proposal would have a positive, constructive and long lasting impact. Councillor Wagner suggested that one method of dealing with the situation would be to defer further consideration for one week to solicit comment from the Multicultural Centre and other interested parties. 2. CANADIAN CURLING HALL OF FAME AND MUSEUM (cont'd.) Councillor Stortz advised of his dilemma in that he agrees with the concept of the Curling Hall of Fame but has also worked with the Multicultural Centre on their relocation plans. He urged the Committee not to take the services of the Centre for granted and referred to the annual Multicultural Festival which he characterized as the second largest City celebration. Councillor Stortz reminded the Committee that two tenants are willing to pay full market rent for the premises which is also in a suitable location for their use. He suggested that Council should take time to consider the situation and urged them to support the local organizations. He also asked that Councillor Wagner's recommendation be stated in the context of the City's policy on the rental of office space. Councillor Ziegler stated that he had toured the building and felt it would be a shame to divide the first floor into office compartments. He noted that the building was designed to more open and on the basis of this, as well as its exterior appearance and location, would be more appropriate as a museum. He also noted that the Multicultural Centre's needs would not be the same and that FINANCE & ADMINISTRATION COMMITTEE MINUTES JUNE 67 1994 - 54 - CITY OF KITCHENER suitable alternate accommodation could likely be found. Councillor Ziegler indicated he could support the recommendation of Councillor Wagner on condition that the Canadian Curling Association agrees to seek sponsors for the Hall of Fame, and agrees to hold a major national event in Kitchener once every five years. Councillor Lorentz indicated he would support a one week deferral to solicit comments from all parties. Moved by Councillor G. Lorentz - "That consideration of the use of the former Registry Building, 122 Frederick Street, by the Canadian Curling Association as a Hall of Fame and Museum be deferred to the June 13, 1994 Council meeting pending further discussion with the affected parties and a staff report to include information on associated capital costs, parking requirements, and the payment of property taxes." Councillor Galloway agreed that the highest and best use of the former Registry Building would not be for office space. However, he expressed concern over the length of negotiations with the Multicultural Centre which had taken place without Council giving direction to actively market the building. He suggested that the Hall of Fame would pay for itself in indirect ways and if the Kitchener Memorial Auditorium were to host one event every five years, this revenue would more than offset lost rental revenue. He stated that he would be agreeable to offering the building rent free for two to three years, after which rent would be charged. Councillor Galloway also noted that if Council agrees to the Hall of Fame proposal, measures should be taken to find a suitable alternate location for the Multicultural Centre in downtown Kitchener. The previous motion by Councillor Lorentz to defer consideration of the Hall of Fame proposal to the June 13, 1994 Council meeting was voted on and CARRIED. Councillor M. Yantzi previously disclosed a conflict of interest and abstained from all voting and discussion concerning the proposal for the Canadian Curling Hall of Fame and Museum as he is employed by Community Justice Initiatives which has been involved in discussions with the K-W Multicultural Centre relative to the shared use of office space at 122 Frederick Street. Councillor Yantzi left the meeting at this time. 3. CORPORATE ARCHIVES POLICY The Committee was in receipt of a report and draft policy from Mr. G. Sosnoski dated June 6, 1994 in response to previous Council direction. On motion by Councillor J. Smola - it was resolved: "That the draft Corporate Archives Policy dated June 7, 1994 be adopted." 4. NEXT MEETING The next regularly scheduled meeting of the Finance and Administration Committee will be held on Monday, June 20, 1994. 5. ADJOURNMENT On motion, the regular meeting adjourned at 1:45 p.m. and the Committee resolved itself into caucus to consider its in-camera agenda. FINANCE & ADMINISTRATION COMMITTEE MINUTES JUNE 67 1994 - 55 - CITY OF KITCHENER G. Sosnoski Manager of Corporate Records/Assistant City Clerk