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HomeMy WebLinkAboutINS-2021-6 - RBJ Schlegel Sponsorship Funding AllocationREPORT TO:Finance and Corporate Services Committee DATE OF MEETING:August 9th, 2021 SUBMITTED BY:Niall Lobley,Director of Parks & Cemeteries, PREPARED BY:Niall Lobley, Director of Parks & Cemeteries, Cory Bluhm, Director Economic Development, Kim Kugler, Director, Sport, Mark Parris, Landscape Architect WARD(S) INVOLVED:5 (ALL) th DATE OF REPORT:July 29, 2021 REPORT NO.:INS-2021-6 SUBJECT:RBJ Schlegel Sponsorship Funding 2020/2021 __________________________________________________________________________ RECOMMENDATION: That staff allocate the 2020and 2021RBJ Schlegel sponsorship funding tosupport the development of Phase Two amenities at RBJ Schlegel Park, the Huron Road entry signage and the installation of Cricket netting; and, That staff report back to Council on a recommended approach to future allocations of RBJ Schlegel sponsorship funding. BACKGROUND: On May 7, 2018 a sponsorship and naming rights agreement was completed between the City of Kitchener and Schlegel Urban Developments Corp(Sponsor). The Sponsor will contribute $230,000.00 annually over a period of ten (10) years beginning from the Park Opening Date. The City agreed to officially name the site RBJ Schlegel Park for a forty (40) year period, in addition to three (3) sportsfields for a ten (10) year term. The City retains the right to name all other amenities separately, including the indoor recreation centre. Use of the funding is at the sole discretion of the city, guided by the sponsorship policy ‘GOV-COR-2000-Municipal Sponsorship’. Within the policy there are four (4) possible streams to which the funding can be allocated: 1.Improving the sponsored program and/or audience experience; 2.Direct servicing costs of any sponsorship arrangement (e.g. the preparation of partner/facility signage, official announcement events, changing names on publications, etc.) and program implementation costs (e.g. staff, overhead, admin expenses, or marketing); *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. 3.Administrative costs associated with the Office of Strategic Partnerships; 4.Deposited to a reserve account for future investments in the community. The official park opening date was finalized as September 6, 2020. The city invoiced the full annual amount on September 10, 2020 and is currently unallocated. The 2021 paymentwill be received in early September. REPORT Staff have identified a number of pressuresat RBJ Schlegel beyond capacity of existing approved budgetsthat could be alleviated by the allocation of the 2020 and 2021 sponsorship to the ongoing RBJ Schlegel park project. Huron Road Entry Sign An entry sign concept has been developed for the Huron Road entry to the site. This is currently the primary access to the site, though, in later years, once access is obtained from Fisher Hallman, this will become a secondary access. The need for an entry sign stems both from the significance of the park, but also it is embedded within the sponsorship agreement; there is a commitment to have the site name at the entrances. Broad consensus with the Schlegel Family on the nature and design of the sign has been reached, however, budget to implement the signage is not within the scope of the existing RBJ Schlegel project. The total cost of the signage is estimated at between $55,000 and $70,000 and will be a significant sign promoting the park, drawing design comparisons with the other City-wide parks, Kiwanis, McLennan, Huron Natural Area and Victoria Park. This work aligns with bullet 2 above, in so far as these are costs associated with servicing the sponsorship agreement. Cricket Field Netting The natural turf cricket field was planned and constructed as a 110m diameter field with artificial pitch. Clearances to the adjacent residential property line and splashpad/playground are approximately 130m diameter, including retaining walls between 2-3m in height. The field was closed for the entire2020 Fall season to allow for seed to properly establish. This is a good size field, but is, by necessity of the site, not a full-sized field. In early spring based on user feedback, staff identified that skilled players were able to strike the ball and carry to the splash pad area and neighbouring residential properties. On this basis, it was agreed that the field should be used for youth programming only. However, as has become apparent through 2021, there is a strong community desire to use the field and recreational play is routinely occurring. As this is not controlled through an organised and affiliated sports group and not subject to booking, staff are seeing concerns around ball strikes carrying to areas of the park where they could strike users. An adjustment to the alignment of cricket square by rotating it and adding protective netting is the preferred option understanding the city cannot control all use of the field. It is estimated that this rotation of the pitch and addition of fencing would cost around $70,000At a minimum, netting will be designed along the northern property boundary (~70m), and along the splashpad/playground walls (~40m). There are no conflicts projected with Phase 2 amenities. Netting will be similar if not match the netting installed on the western artificial turf field spanning the Union Gas corridor.This work aligns with bullet point 1 above, improving the audience experience. Phase 2 Outdoor Amenities The Phase 2 outdoor amenities are currently under tender, with an anticipated award in August or September. These amenities consist of a number of courts (tennis, pickleball and basketball) being added to the site and are considered through the master planning for the park. However, in late 2020 it was recognisedthat a change in scope to eliminate parking areas that were surplus to the needs of the sitewould provide significant added parkland value to RBJ Schlegel and so a comprehensive redesign of Phase 2 was engaged. This eliminated a roadway, parking and the required supporting infrastructure (lighting and stormwater) and added dedicated pickleball courts, a pedestrian promenade areas and pedestrian scale lighting to enhance evening and event use of the plaza area. While it is envisaged that this rescopingcan be largely accommodated within the existing contingency identified for Phase 2, it does place pressure on provisional items such as a shade structure andcoloured playing surfaces for the courts. In addition, staff are experiencing increases in contract pricing in many areas as a result of the direct and indirect impacts of COVID-19. Through allocating additional capital to these projects, aligned to stream 1 of the sponsorship funding,will provide greater flexibility in managing Phase 2 amenity works.At this time, it is not known how much additional funding may be required to support this work; this will be highlighted within provisional items in the Phase 2 tender work. This work aligns with bullet point 1 above in that it improves the sponsored program. Future use of Sponsorship Funding The Office of Strategic Partnerships has not yet developed a recommended approach to the future allocation of the RBJ Schlegel Sponsorship funding across the four approved streams. It is anticipated that this work will be undertaken in 2023 with a future recommendation to come to Council. RECOMENDATION It is proposed that the 2020 and 2021 sponsorship money be fully allocated to support the three projects identified above; entry signage, cricket netting and Phase 2 park works. Through 2021 and 2022 the Office of Strategic Partnership (OSP) will propose a proportional breakdown for sponsorship over the four identified streams. COMMUNITY ENGAGEMENT: INFORM: This report has been posted to the City’s website with the agenda in advance of the council / committee meeting. ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: This report supports the delivery of core service. FINANCIAL IMPLICATIONS: The sponsorship revenue in 2020 and 2021 sums to $460,000. It is proposed that up to: $85,000 be allocated toward signage (allowing for contingency) $85,000 be allocated toward cricket field improvements and netting (allow for contingency) and, The balance, or$290,000, (which ever is lesser), be made available to support the award of the tender and provisional items within Phase 2. Any funds unused will remain available for future use as per the sponsorship agreement As these funds are currently unallocated, there is no net impactto approved budgets or existing project scope. ACKNOWLEDGED BY: Denise McGoldrick, General Manager, Infrastructure Services