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HomeMy WebLinkAboutINS-2022-218 - Indoor Recreation Complex at RBJ Schlegel Park Business Case Infrastructure Services Department www.kitchener.ca REPORT TO: Community and Infrastructure Services Committee DATE OF MEETING: May 16, 2022 SUBMITTED BY: Asad Qureshi, Director Facilities Management 519-741-2600 x4424 Kim Kugler, Director Sport 519-741-2200 x7544 PREPARED BY: Mark Parris, Landscape Architect, 519-741-2600 x4397 Asad Qureshi, Director Facilities Management 519-741-2600 x4424 Kim Kugler, Director Sport 519-741-2200 x7544 Steve Kurevija, Design & Construction PM, 519-580-6331 WARD(S) INVOLVED: Ward 5 DATE OF REPORT: May 5, 2022 REPORT NO.: INS-2022-218 SUBJECT: Indoor Recreation Complex at RBJ Schlegel Park Business Case RECOMMENDATION: That Council endorse the Indoor Recreation Complex at Schlegel Park Business Case recommendation to design and construct the Aquatic and Indoor Turf facilities at RBJ Schlegel Park in tandem by 2025; and, That Council direct staff to begin concept and detail design development, to commence following approval of this report and expected to continue into Q4 2023. REPORT HIGHLIGHTS: The purpose of this report is to define and recommend the direction of the Indoor Recreation Complex at RBJ Schlegel Park. The key finding of this report are: o Development of the Aquatic and Indoor Turf Facilities will satisfy growing public demand for these facilities across the City of Kitchener. o The optimal construction and financial model for the Indoor Recreation Complex is pairing the Aquatic Centre and Indoor Turf Facility as one development. o The preferred arrangement of facilities is to centralize the Aquatics facility within RBJ Schlegel Park, and remaining facilities along the southern border The financial implications for constructing the two facilities in 2024/25 is approximately $93,153,000 which is a cost saving of $6.2M. An annual Operating budget of $1M is estimated for this facility and additional $782,000 for state of good repair funding for the first 5 years. Infrastructure Services Department www.kitchener.ca Community engagement included focus groups comprising of sport user groups including ROW Swim Club, Waterloo Region Artistic Swim, Kitchener Soccer Club, Grand River Soccer, Youth Disc Sports, K-W Olympic Field Hockey and K-W Minor Lacrosse association. A comprehensive public engagement plan is planned for the preliminary and detail design phase in 2022-23. The 2019 LFMP update prioritized the aquatic centre as number 1 indoor recreation priority and the indoor turf was ranked number 2. The arenas did not make it within the top 5 priority list. EXECUTIVE SUMMARY: This report is intended to share findings from the Indoor Recreation Complex at RBJ Schlegel Park Business Case Study. The goal of the study is to optimize the layout, size, configuration, and timing of each of the Facilities within the Complex and identify required budget to support the preferred strategy and scope. Isaac Sports Group (ISG) in partnership with ZAS Architectural were retained under P20- 187 to complete the scope of work required in the Business Case. The facilities within the Complex are defined as follows: Aquatics Centre: 25m, 8 lane pool and a warm water leisure pool Indoor Athletic Facility: Indoor artificial turf, approximately 40,000 sq.ft. of playing surface Arenas: The arenas were identified in the 2013 Master Site Plan for RBJ Schlegel Park. The arenas have not been identified within the top 5 indoor recreation facility priorities or within the 10-year DC forecast. The arenas will be reviewed in future LFMP work for Council approval. The report evaluated market demands for each facility, developed conceptual layouts, and analyzed a variety of development scenarios with respect to construction costs, program efficiencies, and projected financial efficiencies. Market Demands: Aquatic and turf programs space are in high demand. The future demand for arenas is unknown at this time. Concept Development: The following scope was evaluated through the concept development of each facility within the Complex: 1. Size Infrastructure Services Department www.kitchener.ca Conceptual planning was completed to accommodate and maximize flexibility in programming within each facility. Following market research and input from Staff and user groups, each facility was updated to reflect desired outcomes driven by program needs. A detailed summary of the finds is found in the report, and summarized as follows: Aquatics Centre: 45,422 sq.ft. (previous concept 37,000 sq.ft.) Indoor Athletic Facility: 64,950 sq.ft. (previous concept 40,000 sq.ft.) Arenas: 76,890 sq.ft. (no previous concept or square footage) 2. Orientation and Arrangement Multiple orientations and site arrangements were evaluated following the understanding of the facility sizes. Iterations of three (3) common designs were considered: Option 1: Maintain existing location and orientation of the facilities Option 2: Locate the Aquatics facility central to the site, maintain remaining facilities along the southern border Option 3: Locate the Aquatics facility central to the site, align all facilities in north- south arrangement. Option 2 was selected as the preferred location, orientation, and configuration of the Complex within RBJ Schlegel Park. 3. Energy Emissions The business case analysis evaluated the order of magnitude capital cost of the energy and carbon reducing systems such as PV panels, geothermal, green roof and permeable paving. The analysis also evaluated the impact on the overall net operating cost of the facility and provided rough order of magnitude return on investment on the technology Business Case & Development Scenarios: The business case analysis reviewed multiple development scenarios to consider the timing and operation of each facility within the Complex. The study considered five (5) different iterations with one fixed criterion to design, construct and complete the Aquatics facility by 2025 in line with the ICIP Grant requirements: Facility Scenario No. (Year Built) 1 2 2.1 3 3.1 Aquatics 2025 2025 2025 2025 2025 Infrastructure Services Department www.kitchener.ca Indoor Turf 2025 2027 2025 2025 (2 year gap) Arenas 2025 2034+ (beyond 10 year forecast) Consideration for Food and Beverage Food and beverage service options were evaluated within the Complex, including vending, concessions and restaurant development types. Concessions and vending services were deemed viable by the consultant team, whereas at this time restaurant was not deemed viable due to limitations of size and access, adjacency to commercial properties, insufficient site participation, significant capital costs and a projected reliance on annual City subsidies to operate. Further review will be done considering the restaurant when additional indoor recreation facilities are prioritized and incorporated into future design. Final Evaluation & Recommendations The final recommendation is Scenario 2, described as the construction of the Aquatic Centre and Indoor Turf Facilities by 2025. The scenario was selected as the most cost-effective construction, saving approximately $6.2M in incremental costs of phasing. This scenario also increases facility inventory to meet demonstrated user demand. The construction will commence in 2024 and will be completed by end of 2025. There is no capacity to fund the Arenas at this time, nor user demand to support constructing the arenas. An area at RBJ Schlegel park will be reserved for indoor recreation expansion which will be guided by the future leisure facilities master plan, community priorities and council approval. Infrastructure Services Department www.kitchener.ca BACKGROUND: The 2013 South Kitchener District Park Master Plan included recommendations for the consideration of the following facilities to be included in the indoor recreational complex: a community aquatic facility, a twin pad arena facility and a multi-use artificial turf facility. The Leisure Master Facility Plan (LFMP) in 2013 prioritized the need for the aquatic centre as #4 and the indoor turf facility as # 6. In 2019 the LFMP Update, the aquatic centre was reprioritized as #1 and the indoor turf was reprioritized as #2. The reprioritization was due to the identified demand from users to access swimming lessons and pool time and access indoor field training time. business case regarding the construction of a new arena in the southwest portion of the Phase One of the park development included complete site planning, preparation, and pre- have been engineered and constructed in preparation for the complex. Engineering design was based on the approximate square footage of each component. During the site planning Hallman to the southern property border. A business case analysis was commissioned in 2021 with the Facilities of the Recreation Complex defined in the terms of reference as follows: Aquatic Centre Preliminary Size: 37,000 sq.ft. Budget Allocation: $23,771,629 Budget Year(s): 2022-23 (Design), 2024-25 (Construction) Known Scope: o Two pools 25m, 8 lane pool with warm water leisure pool o On-deck spectator viewing o Family and universal washrooms and change rooms (gender neutral) o Foyer, welcome desk, supporting offices o Equipment storage Indoor Athletic Facility Preliminary Size: 40,000 sq.ft. Budget Allocation: $14,324,869 Budget Year(s): 2024-25 (Design), 2026-27 (Construction) Known Scope: o Indoor artificial turf, approximately 40,000 sq.ft. of playing surface o Supporting spaces, offices and change facilities flexible based on connections to Aquatic Facility Arenas (for development at a later date) Infrastructure Services Department www.kitchener.ca Preliminary Size: None (approximate area of 60,000 to 65,000 sq.ft. was allocated on site) Budget Allocation: None Budget Year(s): None Known Scope: o Approximate total size and approximate location within RBJ Schlegel Park. The city has successfully obtained Federal and Provincial grant funding ($17.9M) for the Aquatics Centre under the ICIP cost-sharing grant program in 2021 for a facility to be completed by end of 2025. The specific expectations needed to fulfil the terms of the grant are included in this Terms of Reference. REPORT: This report is intended to define and recommend the direction of the RBJ Schlegel Park Indoor Recreation Complex. The goal of the study is to optimize the layout, size, configuration, and timing of each of the Facilities within the Complex to align with expected budget and business analysis. Isaac Sports Group (ISG) in partnership with ZAS Architectural were retained under P20- 187 to complete the scope of work required in the Business Case. The following is a summary of the findings of the report submitted, following the structure below: 1. Market Demands 2. Concept Development a. The Facilities: Floor Plan Changes b. The Site Site Plan and Location Changes c. Energy Emission Targets 3. Business Case: a. Development Scenarios b. Cost Estimates c. Summary and Evaluation 4. Final Recommendation 1. Market Demands Aquatics: We have committed to the project already through the ICIP grant. The 2019 Leisure Facility Master Plan identified priorities for recreational facility needs for the next 5 years. #1 priority was an Aquatic Centre in the South end of Kitchener. Our current 4 indoor pools are operating at capacity with wait list for swimming lessons and programs. This facility will service the entirety of Kitchener, we anticipate the community will travel to use the amenities. Infrastructure Services Department www.kitchener.ca Turf: Kitchener Soccer Club is the largest affiliated soccer organization in the city with over 5,600 registered players. Soccer continues to exhibit growth both locally and provincially. The indoor facility will provide office space for Kitchener Soccer Club to administer their indoor and outdoor programs at RBJ Schlegel Park. Other field sports like lacrosse, cricket, ultimate frisbee and field hockey are looking for spaces to train when outdoor fields are unavailable either due to availability or inclement weather. As registration continues to grow for turf sports there are increasing pressures for fields and training facilities. Recently we were informed of the sale of a private facility that provided two indoor turf fields to Kitchener sport groups. These two fields will be converted to sprung floors for cheerleading in the months and year ahead placing an increase demand for indoor turf. Arenas: Future LFMP work will determine the need for Arenas. This information will be used to prioritize timing, location and funding of future Arenas for council approval. 2. Concept Development The work of this Business Case was to optimize the layout and location of each facility within the Complex. Some facilities had well defined scope, such as the Aquatics and Indoor Turf Facilities, or little known about their final form like the Arenas. The Facilities Floor Plan Changes: each of the three facilities planned at RBJ Schlegel Park site, summarized as follows: Aquatics Centre: 45,422 sq.ft. (previous concept 37,000 sq.ft.) Indoor Athletic Facility: 64,950 sq.ft. (previous concept 40,000 sq.ft.) Arenas: 76,890 sq.ft. (no previous concept or square footage) The Site Site Plan and Location Changes: With changes to the floor plans and size of the buildings, the location of the Complex on site was assessed and evaluated based on existing build-out, spatial limitations and potential indoor/outdoor synergies. Multiple arrangements and configurations were developed and considered that fall into 3 common categories: 1. Maintain existing location and orientation of the facilities 2. Locate the Aquatics facility central to the site, maintain remaining facilities along the southern border 3. Locate the Aquatics facility central to the site, align all facilities in north-south arrangement. Infrastructure Services Department www.kitchener.ca Option 2 was selected as the preferred location, orientation, and configuration of the Complex within RBJ Schlegel Park. The final site arrangement of Option 2 is visualized below: Infrastructure Services Department www.kitchener.ca Existing Play Components & Phase 2 Park Development Future Indoor Recreation Facility including Parking Final Site Arrangement with Future Recreation Facility Energy Emission Targets In June 2021, Council unanimously supported the second-generation community climate action plan TransformWR (DSD-2021-94). TransformWR is the broad umbrella strategy developed by ClimateActionWR that the City of Kitchener has endorsed as the framework to transition our community off of fossil fuels. A key strategy of TransformWR is to build new buildings to be net zero carbon or build to transition to net zero carbon. Our goal is to build a net zero carbon emission indoor recreation facility. Early in the business case process, ZAS architects led an energy analysis with project team energy consultants Green Reason and Internat Energy Solutions Canada. The energy analysis and modeling report formed the basis of the City Green and Inclusive Community Building (GICB) grant application in July 2021 to help fund the incremental costs on energy efficient and carbon reducing technology and systems. GICB grant application is currently under review and the City is awaiting a decision regarding the grant award. The business case analysis evaluated the order of magnitude capital cost of the energy and carbon reducing systems such as PV panels, geothermal, green roof and permeable paving. Infrastructure Services Department www.kitchener.ca The analysis also evaluated the impact on the overall net operating cost of the facility and provided rough order of magnitude return on investment on the technology. 3. Business Case Development Scenarios With optimized and preferred concept design of each of the facilities complete, the Business case analysis reviewed multiple development scenarios to consider the timing and operation of each facility within the Complex. The study considered five (5) different iterations with one fixed criterion to design, construct and complete the Aquatics facility by 2025 in line with the ICIP Grant requirements: Facility Scenario No. (Year Built) 1 2 2.1 3 3.1 Aquatics Aquatics & Aquatics Aquatics, Aquatics, Centre Fieldhouse 2025 & Fieldhouse Fieldhouse Only Concurrent Fieldhouse & Arena 2025 & 2027 Concurrent Arena 2025 Stand-alone 2034 Aquatics 2025 2025 2025 2025 2025 Indoor Turf 2025 2027 2025 2025 (2 year gap) Arenas 2025 2034+ (subject to future (beyond 10 Council decision) year forecast) Cost Estimates Cost estimates were completed for: o Projected Revenues o Operational Expenses State of Good Repair Infrastructure Services Department www.kitchener.ca Summary and Evaluation Evaluation Criteria Scenario No. (Evaluation and Description) 1 2 2.1 3 3.1 Aquatics Aquatics & Aquatics Aquatics, Aquatics, Centre Fieldhouse 2025 & Fieldhouse Fieldhouse Only Concurrent Fieldhouse & Arena 2025 & 2027 Concurrent Arena 2025 2034 Capital costs (for 56,454 93,153 99,359 145,578 179,413 reference) Funding availability Costs savings on facility timing Meets demand pressures Outdoor programming synergies Response to inventory supply Recommendation 4. Final Recommendations Development Scenario The final recommendation is Scenario 2, described as the construction of the Aquatic Centre and Indoor Turf Facilities by 2025, for the following reasons: The most cost-efficient based on both the Capital Construction cost Saves $6,206,000 in project costs compared to building the Fieldhouse in 2027-8 after the Aquatic Centre is open. Generates higher operational cost recovery compared to the initial building of the Aquatic Centre only Accommodates a need for more indoor turf field space in Kitchener, exacerbated by the planned closing of an existing private indoor turf facility in the City. Arena Development Infrastructure Services Department www.kitchener.ca At this time there is no significant wait list to determine if there is enough user demand to support one or two new arenas. User demand would inform if development charge funding could be used for the arenas versus tax base funding to replace aging infrastructure. An area at RBJ Schlegel park will be reserved for indoor recreation expansion guided by future leisure facilities master plan and council priorities. Energy Emissions Targets The business case analysis evaluated the order of magnitude capital cost of the energy and carbon reducing systems such as PV panels, geothermal, green roof and permeable paving. The analysis also evaluated the impact on the overall net operating cost of the facility and provided rough order of magnitude return on investment on the technology. it is recommended to proceed with a net zero energy design. STRATEGIC PLAN ALIGNMENT: This report supports: Caring Community providing welcoming community spaces and programs; this is achieved through better engagement, serving and supporting our diverse populations and helping to make housing affordable. Throughout the business case analysis, various public engagements were conducted to ensure this facility would meet the demand of the community. Further engagement sessions are set to take place during the design phase to ensure this indoor recreational complex will provide relevant programming and create an inclusive a welcoming space for all community members. Environmental Leadership The City of Kitchener is progressing towards achieving a healthy and livable community by proactively mitigating and adapting to climate change and by conserving natural resources. The indoor recreational complex will adapt a net zero carbon target for the facility to support this initiative FINANCIAL IMPLICATIONS: Capital Budget: The total funding request for Scenario 2, described as the construction of the Aquatic Centre and Indoor Turf Facilities by 2025, is $93,153,000. Existing total funding between the Infrastructure Services Department www.kitchener.ca Aquatic Centre and Indoor Turf facilities is $38,924,000. Refer to Appendix and proposed capital budget estimates. The recommendation requires an increase in capital funding of $54,229,000 between 2022 and 2025. Additional funding of $54.2M has been accommodated in the draft DC bylaw that council will be considering. This DC increase will not impact currently funded indoor recreation projects but leaves no further room for future indoor recreation facilities within the 10 year forecast. The proposed capital budget includes and reflects the following changes since the original estimates completed in 2019, including approximate costs associated with each change: Construction cost ($18.8M): inclusive of inflationary and price escalations due to current construction environment. Updated facility square footage ($16.8M): total building size increased by 44%, inclusive of turf field size, changeroom design changes, and aquatics supporting areas. Energy efficiencies ($9.5M): net-zero emissions targets were not considered in original estimate. Costs account for energy modelling to include PV panels, geothermal, green roof and permeable paving. Site development ($6.1M): original estimate based on 12% of the construction costs. As the construction costs increase, the value for site development component also increases. Other increases due to an increase in parking volume by 15%, covered bike storage, and increased cut/fill activity expected in the preferred orientation on this site Soft costs ($3.0M): typically estimated as a percentage of construction costs. As construction costs increase, the value of soft costs will also increase. Soft costs include furniture, fixtures, equipment, professional and project management fees. State of Good Repair Capital Cost: In addition to the project budget an ongoing state of good repair (SOGR) budget will be required for this site in the capital forecast. The total SOGR budget required from 2026-2030 is $782,000. Operating Budget: Infrastructure Services Department www.kitchener.ca operating budget estimates. COMMUNITY ENGAGEMENT: INFORM the council / committee meeting. CONSULT The content of this report was the result of focus group discussions comprising of sport user groups including ROW Swim Club, Waterloo Region Artistic Swim, Kitchener Soccer Club, Grand River Soccer, Youth Disc Sports, K-W Olympic Field Hockey and K-W Minor Lacrosse association. PREVIOUS REPORTS/AUTHORITIES: INS-13-043 South Kitchener District Park Master Plan CSD-19-007 2019 Leisure Facilities Master Plan FIN-19-029 2019 Development Charges Priorities and Rate Options DSD-22-072 Corporate Climate Action Plan 2022 Progress Update, Next Steps and Closeout Appendices: A Facility Floor Plan Optimization and Outcomes B Facility Orientation Summary C Development Scenario Evaluation D Project Cost Comparison All Scenarios E Annual Profit and Loss Summary (year 2) F Return on Investment and Carbon Emissions Reduction Summary F Energy Savings and Carbon Emissions Reduction Summary G Existing and Proposed Capital Budget Estimates H Projected Operating Cost Estimates APPROVED BY: Denise McGoldrick, General Manager, Infrastructure Services Department Michael May, DCAO and General Manager Community Services Department Infrastructure Services Department www.kitchener.ca Facility Floor Plan Optimization and Outcomes Facility Optimization Square Outcome Footage Impact Aquatics All gender-neutral change +8,422 Flexibility to close individual rooms rooms sf for maintenance or specific pool uses. Increased Family and Improve inclusive accessibility to Barrier Free changing support adaptive and family- rooms oriented program enhancements and safety. Purpose built and planned Support expansion of existing storage space programs and equipment storage for new programs. Provide secure storage for user groups. Increased deck space Provide better space for program instructors, user access, and viewing areas. Function room adjacent to Support aquatic classes, birthday Pool Deck parties and special events, aquatic related special events. Enhances programming and generates revenue. Multi-purpose function, Supports activities in the overall meeting, and dry-land Aquatic and Fieldhouse facilities. team workout space. Also supports community meetings Includes warming/catering and can generate some additional kitchen to enhance revenue. meetings and special events for entire facility. Concessions and Vending Allows for concession and vending services to support users in the Aquatic and Fieldhouse facilities as well as overall park. Can be a net revenue generator. Indoor Overall Facility +24,950 Maximizes program functioning, Turf sf accommodates increased demand, site position and optimized connection to outdoor fields. Allows dividing into three equal smaller fields for greater Infrastructure Services Department www.kitchener.ca flexibility and enhanced programming. Minimum FIFA playing Maximizes program functioning, field (90x45m) accommodates increased demand, site position and optimized connection to outdoor fields. Allows dividing into three equal smaller fields for greater flexibility and enhanced programming. Kitchener Soccer Club Move from current space in Budd Offices and Storage Park indoor turf facility. Supports expanded KSC programming in Fieldhouse and outdoor fields. Maintenance equipment Supports Fieldhouse and outdoor storage fields. Changing Rooms Supports Fieldhouse and outdoor fields. Infrastructure Services Department www.kitchener.ca Facility Orientation Summary 1. Maintain existing location and orientation of the facilities 2. Locate the Aquatics facility central to the site, maintain remaining facilities along the southern border 3. Locate the Aquatics facility central to the site, align all facilities in north-south arrangement. 1 2 3 Evaluation of each configuration: Layout Benefits Challenges Option Utilize existing site services Reduces ability to create common 1 locations and general pre-grading spaces that service all of the facilities, arrangement. reducing operational efficiency and Maintain requiring separate support areas for Existing each facility. Limits ease of access to existing parking areas as well as use of new parking areas by other areas of the park. Reduces the connection of the Aquatic Centre to the family and youth activity areas in the central section of the park. Maximizes use of existing parking Increased cost for additional cut/fill 2 required. New parking also supports the Creates separate parking lots between Central outdoor fields with space the core building (aquatic and turf) and Aquatics available to additional parking arena components. , East- adjacent to Ice Arena side. West Positions the Aquatic Centre closest to family and youth Infrastructure Services Department www.kitchener.ca friendly activity areas of the park such as splash pad, skate park, playground. Central position of Aquatic Centre provides view of aquatics to users of central area of park and vice a versa. Positions Indoor Turf fieldhouse closest to outdoor fields for user and operational efficiency. Creates three good entrance and drop off areas for the facilities accessible to Park areas and the planned roads and parking in Park. Positions Fieldhouse changing rooms to be able to also support outside fields as needed. Concession areas supports outside fields while still accessible Positions the Aquatic Centre Length of combined building extends 3 closest to family and youth too far into central area of Park. friendly activity areas of the park, Reduces circulation around facility at Central such as splash pad, skate park, south end, including operational and Aquaticsplayground. maintenance services. , North- Creates three good entrance and Limits Concession access to users of South drop off areas for the facilities Ice Arena, requiring an additional accessible to Park areas and the Concession area for Ice facility. planned roads and parking in Park. Significantly reduces access of common function space access for users of the Ice Arena. Infrastructure Services Department www.kitchener.ca - Development Scenario Evaluation Facility Scenario No. (Year Built) 1 2 2.1 3 3.1 Aquatics 2025 2025 2025 2025 2025 Indoor Turf 2025 2027 2025 2025 (2 year gap) Arenas 2025 2034+ (beyond 10 year forecast) Scenario Benefits Challenges 1 Provides the least expensive The Aquatic Centre alone operates at option to build the Aquatic Centre higher operational deficit than the to meet this top priority facility. combined Aquatic Centre and Fieldhouse. Delays the construction of new indoor turf space, not meeting the immediate need created by the current loss of existing indoor turf at private turf facility in the City and the repurposing of the existing Budd Park indoor turf. 2 Significantly increases the Higher Capital Project Costs in this building and design efficiencies combined construction scenario. with concurrent design and construction of both the Aquatic Centre and Fieldhouse. Reduces the net additional cost of Fieldhouse construction by $6.2M compared to the phased construction in Scenario 2.1. Reduces the net operational deficit of the overall facility by $400,000+ compared to the first three years of Aquatic Facility Operation in Scenario 1 and the first three years of the phased operation in Scenario 2.1. Infrastructure Services Department www.kitchener.ca Cost Recovery (measure of operating efficiency and the percent of expenses covered directly by facility revenue) increases from 49% to 69%. Immediately meets the increased need in Kitchener for indoor turf created by the elimination of indoor turf at one private turf facility in the City and the possible repurposing of the Budd Park indoor turf facility. Since the Fieldhouse has much greater potential for the roof top PVT Solar Array, the percent of energy use provided by Solar of the combined facility will be much greater than in Scenario 2.1, reducing energy costs and carbon emissions. 2.1 Provides a 3-year phasing to Increases the net additional cost of generate the additional capital Fieldhouse construction by $6.2M funding to build the Fieldhouse compared to the initial combine construction with the Aquatic Centre in Scenario 2. Eliminates the synergistic impact of the combined Aquatic Centre and Fieldhouse on the growth of Aquatic Centre use and programs in Years 1-3. Phasing of the Fieldhouse and its capacity for roof top solar energy generation will result in higher utility costs and carbon emissions during Years 1-3 of Aquatic Centre alone operation. 3 Building all three facilities Significant challenge to raise the full together initially will save Capital funding needed to build all three approximately $33.8M compared of the facilities initially. to building the Ice Arena 10+ years later. It is currently unclear if the Ice Arena will be a replacement of an existing facility or built to meet any growing demand for additional ice time and Infrastructure Services Department www.kitchener.ca space. This evaluation is critical to design, operational, and budget elements. 3.1 Provides time for further research $33.8M higher construction costs of the on ice time demand and need of Ice Arena compared to Scenario 3. this new facility as a replacement of existing aging Ice facility or in support of growing demand for ice time and space. Provides time to develop Capital phase of long term Capital Project planning and funding. D Project Cost Comparison All Scenarios Cost Category Scenario No. (x $1,000) 1 2 2.1 3 3.1 Aquatics Aquatics & Aquatics Aquatics, Aquatics, Centre Fieldhouse 2025 & Fieldhouse Fieldhouse Only Concurrent Fieldhouse & Arena 2025 & 2027 Concurrent Arena 2025 Stand- alone 2034 Base Estimate 45,309 73,364 79,103 114,113 142,494 LEED Gold & 5,269 11,678 11,678 19,147 21,716 Zero Carbon Project Soft 4,900 6,500 6,860 9,800 12,100 Costs Non recoverable 976 1,611 1,718 2,518 3,103 portion of HST Total 56,454 93,153 99,359 145,578 179,413 Incremental None None 6,206 None 33,835 Costs E Annual Profit and Loss Summary (year 2) Infrastructure Services Department www.kitchener.ca Venues (x $1,000) Cost Category Aquatics Turf Arena Centre Fieldhouse Revenue Total 1,444 909 1435 Expenses Total (2,789) (527) (952) Revenue Per Facility (1,345) 382 403 (Deficit) State of 40 73 40 Good Repair F Return on Investment and Carbon Emissions Reduction Summary Energy GICB GICB Grant Project Pay ROI on Carbon Carbon Saving Grant Received Add-On Back Energy Cost EmissioEmission Annual fundin Cost PeriThrough 20 n Reduction g % od in Years Reducti% from Yearfollowing on Reference s Payback ekgCO2 Model $183,761 0% - $10,889,000 34.6 $(5,951,273) 83,582 78% $183,761 25% $2,375,000 $8,514,000 29.4 $(3,576,273) $183,761 50% $4,750,000 $6,139,000 23.5 $(1,201,273) $183,761 75% $7,125,000 $3,764,000 16.2 $1,519,972 $183,761 100% $9,500,000 $1,389,000 6.8 $3,749,058 Note: Energy Savings projected at a 3% year over year increase. G Existing and Proposed Capital Budget Estimates Below are the existing and proposed capital forecast for the recommended Scenario 2. 2022-2031 Existing Capital Forecast: Project Name Year (x $1,000) Infrastructure Services Department www.kitchener.ca 2022 2023 2024 2025 Total New Indoor Pool 617 318 11,600 11,832 24,367 South End Indoor Turf Field 542 192 6,843 6,980 14,557 South End Total 1,159 510 18,443 18,812 38,924 2022-2031 Proposed Capital Forecast: Project Name Year (x $1,000) 2022 2023 2024 2025 Total New Indoor Pool 284 1,869 26,521 26,521 55,297 South End Indoor Turf Field 18,309 386 852 18,309 37,856 South End Total 2,721 93,153 670 44,830 44,830 H Projected Operating Cost Estimates Below are the projected operating estimates for the recommended Scenario 2. An annual operating budget of $1M will be required for this facility to be allocated between Sport and Facilities Management. Year Year 1 Year 2 Year 3 Year 4 Year 5 Zero* TOTAL REVENUE - 2,155 2,353 2,469 2,569 2,668 TOTAL OPERATING 140 3,193 3,316 3,432 3,549 3,683 EXPENSES NET OPERATING (140) (1,038) (963) (963) (980) (1,015) REVENUE (DEFICIT)