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HomeMy WebLinkAboutCSD-07-001 - Twin Pad Sport Partner Business Case/Approval to Proceed ) R Community Services Report To: Community Services Committee Date of Meeting: January 8, 2007 Submitted By: Prepared By: Ward(s) Involved: Keith Baulk, Director, Enterprise Division, 2393 Twin Pad Project Team all Date of Report: Report No.: December 22, 2006 CSD-07-01 Subject: TWIN PAD SPORT PARTNER BUSINESS CASE/APPROVAL TO PROCEED RECOMMENDATION: That the Sport Partner Business Case and Supplementary Business Case as appended to CSD Report 07-01 be accepted, and, That staff be directed to proceed to construct an Athletic Complex at the Hanson Ave site to include a twin pad arena, boxing facility, minor hockey offices/storage and a community walking track as outlined in the Sport Partner Business Case and Supplementary Business Case; and, That the 2007/08 capital budget be increased by $3,300,000, funded as follows; $1.75 million from a Sport Partner capital campaign, $280,000 from DC and $1.27 million from CC, subject to Capital budget deliberations January 15th, 2007; and, That the Sport Partners be given approval in principle to commence a capital campaign to generate $1 ,750,000 (net) with the proviso that a schedule of naming rights assigned for major donations be pre-approved by Council at a future meeting; and, That the Director of Enterprise be authorized to sign the draft Partner Operating Agreements as appended to CSD Report 07-01 subject to the satisfaction of the City solicitor; and further, That direction be given to staff with respect to the LEED designation objective for the facility. BACKGROUND: The Sport Partner Business Case involving the Kitchener Minor Hockey Association (KMHA) and the Waterloo Regional Boxing Academy (WRBA) for the Hanson Ave. Twin Pad project was tabled at Community Services Committee on September 18th, 2006. The business case outlined four (4) potential options that Council could consider for the Twin Pad facility. The options and Class B/C cost estimates at the time were as follows: Option 1 - Basic Twin Pad plus some basic requirements for KMHA - $15.8 million Option 2 - Twin Pad plus all KMHA's needs - $16.4 million (additional $600,000) Option 3 - Twin Pad plus all KMHA's needs and WRBA facility - $17.5 million (additional $1.7 million) 2 Option 4 - Twin Pad plus all KMHA and WRBA requirements along with community walking track - $19.7 million (additional $3.9 million) The city funding for the project was set at $15.8 million (Option 1). It was indicated the cost for the additional options (Options 2 to 4) would add between $600,000 and $3.9 million to the cost of the facility depending on which option Council ultimately approved. The sport partners (KMHA and WRBA) were directed to qualify the fundraising capacity for the project to determine the amount that could be raised to offset the costs of the additional options. Council directed staff to commence detailed construction drawings based on Option 3 above but that all the other options be retained for further consideration pending the fundraising review. To keep the project moving forward, approval was given to obtain the necessary site plan approvals and proceed to grading the site. In addition, Engineering staff were directed to undertake an environmental assessment for a potential extension of Hanson Ave. to connect to the future Blockline Road extension. During the presentation to Community Services Committee on September 18, 2006, members of Committee asked for additional information that was not available at the time. Staff indicated that a report would be prepared for consideration in January 2007 that would incorporate the information. This report would allow Council to make an informed decision on which option should proceed to construction, the determination of the LEED designation along with how the project could be funded. REPORT: This report provides the basis to assist Council in making decisions with regard to the scope, cost and funding for the new Hanson Ave. Twin Pad. The key questions that require decisions are as follows: 1. Should the facility include any or all of the additional KMHA administrative space, the WRBA facility and the community walking track? 2. Should the facility be built to LEED Gold or Silver standards? 3. Should the Sport Partners commence the implementation planning for the fundraising program? You will recall the initial Sport Partner Business Case for the Hanson Ave. Twin Pad Arena was presented to Community Services Committee on September 18, 2006. The business case was tabled pending more information on a number of items required to support the decision making process. The information is as follows: 1. Walking Track Demand Study 2. Fundraising Feasibility Study/Capacity Analysis 3. Fundraising Plan 4. Costing at 500/0 Design Completion 5. LEED (Leadership in Energy and Environmental Design) Analysis 6. Functional Review - Shared Space Analysis 7. Wilmot Twin Pad Cost Comparison 8. Sport Partner Agreements 9. Site design/connectivity 10. WRBA and KMHA Capacity and Sustainability A Supplementary Business Case has been included to provide detailed information on these items (the Wilmot Twin Pad comparison is not in the business case but is attached to this report). In some cases where significant research or expert advice was required, consultants were engaged to provide the information. The consultants' reports are appended to the Supplementary Business Case. Therefore the entire package attached to this report includes the following: 3 a) Initial Sport Partner Business Case tabled September 18th, 2006. b) Supplementary Business Case with Consultants' Reports appended including: - F. J Galloway Walking Track Feasibility Study - Campaign Coaches Fundraising Feasibility Study Executive Summary - J. Thompson Fundraising Plan c) Wilmot Twin Pad comparison d) Twin Pad Funding Sources Matrix The project team feels all this information now provides Council with sufficient information to make an informed decision on the recommendations in this report thereby answering the key questions outlined above. A summary of the information provided in the Supplementary Business Case is as follows: 1. Walkina Track Demand Study F. J. Galloway & Associates was commissioned to do a feasibility demand study for the potential of a walking track as part of the new Hanson Twin Pad Arena. The consultant met with representatives of five seniors walking groups, a community advocate, the Chairperson of M.A.C.K.S., a number of community sports groups, and staff from Community Programs and Services, Athletics and Enterprise. Conclusions and recommendations were based on information gleaned from the interview process along with an analysis of trends and the demographic profile of the region. The consultant provided three alternatives the city could consider with regard to the walking track: a) Do not support the development of a walking track at this time. b) Defer the walking track and assign it to the future south Kitchener district complex. c) Proceed with the Twin Pad walking track at the new Hanson Ave. Twin Pad The consultant recommends alternative (c), "that the City of Kitchener pursue the development of a walking track for Kitchener residents as an additional feature within the new Hanson Ave. Twin Pad Arena project." The report conclusions and key rationale for supporting the recommendation are outlined in the Supplementary Business Case and the appended Consultant Report. If the track is approved, staff will develop a broad community use vision along with developmental strategies and operational policies for future Council consideration. The consultant will make a brief presentation at Committee and will be prepared to answer questions. 2. Fundraisina Feasibility Study/Capacity Analysis As directed by Council, the Sports Partners engaged a consulting firm - Campaign Coaches - to conduct a feasibility study to determine the amount that could be fundraised for this project. Based on the review, Campaign Coaches have recommended the campaign goal be set at $2,000,000 with a pledge period of up to 5 years. This would result in net revenues of $1 ,750,000 after campaign expenses. The Fundraising Capacity Report Executive Summary is attached to the Supplementary Business Case. A representative of the consulting team will make a brief presentation to Committee on the feasibility study and answer any questions. 4 3. Fundraisina Plan The Sport Partners engaged John Thompson, formally CEO of the United Way of Kitchener- Waterloo and Area to develop a fundraising plan. The plan is summarised in the Supplementary Business Case and is appended to that document. The plan was developed to provide an overview of the key components of the fundraising program so that Council can direct the Sport Partners to commence the fundraising program. The plan was also developed for Community Services Committee to demonstrate and acknowledge the scope of work and commitment required to undertake a $2,000,000 campaign. Donor recognition in the form of naming rights will need to be considered. A Campaign Cabinet will be formed as per the plan and one of their first tasks will be to complete a schedule of naming opportunities and values. As per the report recommendation this will come back to City Council for pre-approval in the first quarter of 2007. Peter Benninger of Coldwell-Banker Peter Benninger Realty has agreed to Chair the Campaign. Peter has a great deal of experience and will be an excellent advocate for the campaign. Both John Thompson and Peter Benninger will be in attendance at Committee to answer questions about the plan. 4. Costina at 500/0 Desian Completion As of December 1 st, 2006 the Hanson Ave Twin Pad Arena 'design' was at 500/0 completion. Ball Construction, the project's construction manager, provided the project team with an updated costing for the current design on December 5th, 2006 and these figures are being carried as the basis for this report. This is considered to be a "Class B" estimate. The design is expected to be at 900/0 completion by early January 2007 and an updated cost estimate will be submitted by Ball Construction before the end of January 2007. It is at this point that the project team will have a very accurate indication of project cost as compared to budget. This will be a "Class A" cost estimate. Should the 'base building' component exceed the budget target of $15.8 million, the project team will review the drawings and specifications and develop a strategy to bring the project back on track. The project team is committed to bringing this project in on budget and on time. There may be a need to make some adjustments with respect to the quality of the materials selected or the size of the building to achieve this goal. 5. LEED (Leadership in Eneray and Environmental Desian) Analysis During the presentation in September, Council asked staff to investigate what it would take to move the project from LEED Silver to LEED Gold status. The budget for Silver status is $625,000 and is included in the $15.8 million dollar project budget. The LEED Silver initiatives result in savings of approximately $125,000 per year which means it has a five year payback. In order to achieve Gold status it would cost an additional $250,000 - $300,000. This includes professional fees, contingencies and surcharges. The annual energy savings for Gold initiatives are minimal; in the range of $8,500 per year but are offset by higher maintenance costs so overall savings, if any, would be minimal. It should be noted that LEED is not a business case based program. It is about "taking leadership with respect to the environment in constructing facilities". In this case, while the business case is weak to move to Gold status, there can still be strong argument for pursuing that designation based on environmental benefits. 5 A "green roof" initiative is included in the $300,000 cost outlined above. While not necessary to achieve gold designation it is an additional option. The project team has not made a recommendation in regard to LEED designation and are seeking Council direction. If Council directs staff to proceed with achieving a Gold designation, it is recommended an additional budget of $250,000 or $300,000 be provided depending if the green roof concept is to be included. The detailed information about the requirements to move to LEED Gold is outlined in the attached Supplementary Business Case. In addition the LEED consultant for this project will make a short presentation to outline the requirements for moving to a Gold designation and answer any questions from Committee. 6. Functional Review - Shared Space Analysis The Project Team includes members of the sport partners, the project architect and City of Kitchener staff. This project team has met on 15 occasions. For the most part, these meetings included a review of the new Twin Pad design and layout, progressively improving the functionality of the facility. One of the components of each review was to find ways to identify common or shared space. The Project Team continues to look for opportunities to share space as the architectural drawings are being completed. Wherever possible space is shared; however, there are some spaces that are required to be designated as single use for either functional or programming reasons. A detailed breakdown of the shared and exclusive areas is provided in the supplementary business case. 7. Wilmot Twin Pad Cost Comparison The Project Manager has investigated and developed a report relative to the costing of the City of Kitchener Twin Pad compared to the proposed Wilmot Twin Pad. The summary is appended to this report. There are a number of major differences in what is being included in the two facilities. The City of Kitchener is incorporating site grading, LEED initiatives, energy saving technology, more conservative contingencies, upgraded seating, improved general fixtures and fit-out along with air conditioning. In addition the City of Kitchener cost projections are current while the Wilmot figures are nearly a year old. In the opinion of staff, the cost difference is related to additional or better facility amenities that will make the City of Kitchener facility more inviting, more efficient and less prone to future costly maintenance or improvements. 8. Sport Partner Aareements It was deemed to be very important for the sport partners and City to understand upfront the operating conditions that would prevail once the facility was constructed. As a result, discussions have occurred to provide the framework for the development of the operating agreements. They are in the form of license agreements. The highlights of the agreements are as follows: a) Long term lease - 20 years 6 b) License fee - KMHA - $300/mo. in 2008 plus annual increases approved by Council WRBA - $990/mo. in 2008 plus annual increases approved by Council (5 year renegotiation clause) c) Ice rental - same as Minor Sports rate at the Aud Complex Twin Pad (currently $172.50 for prime and $109.00 for non-prime) plus annual approved fee increases. d) Chattels - KMHA to provide all furnishings, equipment and technology with the exception of four (4) computers and one photocopier which will be provided by City of Kitchener Athletics Division for 5 years after which time the arrangement will be reviewed - WRBA to provide all furnishings and equipment and technology e) The City will be responsible for the capital replacement program for the facility with the exception of finishes and fixtures within the exclusive use space (for greater clarity flooring, furnishings, decorations, etc.) The draft agreements have been prepared by the City's Legal Department. These will be approved by the City Solicitor prior to signature as outlined in the report recommendation. The draft agreements are appended to the Supplementary Business Case. 9. Site desian/connectivity The approved location for the new Twin Pad is the former Hanson Ave. snow dump site. While the site is excellent on many levels, there was concern it would not be possible to get full access from a main arterial road, there are no existing transit services and the access to the site is currently through an existing industrial area. As well, the site is unique because it is adjacent to various land use forms including residential, institution (St. Mary's High School), parkland (Peter Hallman Ball Yard - PHBY) and the aforementioned industrial area. As a result, the project team felt it was important to undertake a connectivity study to ensure neighbourhood and public access was considered from the beginning. In addition, the opportunity to create a campus style complex including PHBY was a key consideration. The details of the connectivity study are outlined in the Supplementary Business Case Document. The key recommendations are as follows: a) extend Hanson Ave. to the Blockline Rd. extension to create a feature campus entrance (elevation attached) b) extend various sidewalks to improve access to the facility c) improve the public trail system and complete linkages to improve overall access to the facility In September, Council directed staff to undertake an environmental assessment for the Hanson Ave. extension. Work is underway on the E.A. process. 10. WRBA and KMHA Capacity and Sustainability The Supplementary Business Case includes an opinion statement on the sustainability and capacity of the two proposed sport partners in the project. The opinion was prepared by City of Kitchener Athletics staff. While Minor Hockey has more capacity as a result of their registration numbers, Boxing is well established and has capacity to grow programs and participation with new facilities. Overall, both organizations are affiliated, have undertaken succession planning, have long histories in this community and appear to be financially stable. In fact, new facilities will only strengthen their programs, growth and hence long term viability. 7 11 . Summary of Conclusions In summary, utilizing all the information that has been provided above, the project team has developed the report recommendations based on the following conclusions: a) that the original $15.8 budget for the basic components of the Twin Pad Complex is an achievable target staff works to in building the facility b) that the KMHA additional administrative support space and WRBA facility can and should be built at a cost of $1 ,750,000. c) that the Community Walking Track be included at a cost of $1.55 million and be partially funded 190/0 DC d) that the capital campaign goal of 2 million is achievable and KMHA and WRBA should receive authorization to commence planning the campaign e) that it is prudent for the City to enter into formal operating agreements with the sport partners at this time Staff is requesting Council direction with respect to LEED Gold or Silver status due to the unique nature of the decision. Moving to a Gold designation would require an additional capital allotment of $250,000 - $300,000 depending if a green roof where to be included. It should be noted, there will be a 4-6 week delay in completing the design drawings if the track is included now. Staff are still confident however that the committed completion date can be met. COMMUNICATIONS: In the past, there were 3 major public consultations during site selection process and 1 major public consultation on the site and facility design during the design phase. Significant consultation took place within specific components of this phase of the process as well. Specifically, during the development of the supplementary Sport Partner Business Case public consultations took place during the following processes: 1. Development of the Feasibility and Demand Report on the Walking Track (Senior and Sport communities) 2. Development of the Fundraising Feasibility Study (Philanthropic and Corporate community along with community leaders) 3. Development of the entire process, facility design and funding strategies (Sport Partners) FINANCIAL IMPLICATIONS: In the capital forecast (2007/08), Council approved a budget of $15.8 million for an 80,000 square ft. facility. The project team is confident, based on 500/0 design drawings, that the basic Twin Pad can be constructed within this original budget. The funding approved for the basic Twin Pad is $3.47 million from CC and $12.33 million from DC. The Twin Pad project could include other major potential amenities including: · Kitchener Minor Hockey Association (KMHA) needs · Waterloo Regional Boxing Academy (WRBA) · Community walking track The inclusion of the amenities for the KMHA and WRBA will cost an additional $658,000 and $1,088,000 respectively for a total of $1.75 million. The inclusion of a walking track will require an additional $1.55 million. The development charge fund will provide $.28 million towards the cost of the walking track. Fundraising revenues will also be a source of funding. The Fundraising Feasibility and Capacity Analysis Study, initiated by the Sports Partners Collaboration, determined that $1.75 million net over 8 a five year period is an achievable fundraising goal to assist in offsetting the cost of these components. An interest free loan for $1.75 million will be established and all fundraising revenues will be applied to the loan. It is anticipated that 30-500/0 of the loan will be repaid before the complex is completed in the summer of 2008. It is also anticipated that, at the end of the fundraising campaign, 1000/0 of the goal will be committed. If Council directs staff to include the amenities for KMHA, Boxing and the walking track, an additional $1.27 million from Capital out of current funds will be required. Moving to a LEED Gold building would require additional capital funding of $250,000-$300,000. In order to keep the project on schedule and meet the completion date of June 2008, pre-approval of the increased funding of $3,300,000 will be requested during the 2007 Capital Budget Review at the Finance and Corporate Services Committee meeting on January 15, 2007. This amount does not include LEED Gold initiatives. It should be noted that if approval to proceed was delayed until final budget approval in late March, then there is a very high risk of not meeting the committed completion date. Attached is the matrix of the funding sources for the Twin Pad arena. CONCLUSION: The report requests overall direction to allow staff to commence construction of the new Hanson Twin Ave. Twin Pad. Direction is also being sought with regard to inclusion of the additional Minor Hockey space, boxing facility and the community walking track. It is being proposed that a significant fundraising campaign commence to help fund the project. This facility will be an outstanding LEED certified athletic complex that will serve the needs of ice sports, summer indoor sports, boxing and the community in general for many years to come. Keith Baulk Director Enterprise Division, Community Services AP Community Services Department Business Case Hanson Ave. Twin Pad Sport Partnership- Supplementary Business Case January 2007 Table of Contents Executive Su m mary. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 Backgrou nd. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..5 Fundraising Capacity Analysis.................................................................................................... 6 Waterloo Regional Boxing Academy (WRBA)/Kitchener Minor Hockey Association (KMHA) Capacity and Sustainability................................................................................................................ ..........7 Fun d ra i sin g P I an. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 8 Track Feasibiltiy Demand Study..............................................................................9 LEED Analysis - Gold vs Silver........................................................................... ...10 Fun ct ion a IDe s i g n Rev i e w . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1 2 Connectivity Recommendations for Site Design...................................................................... 13 E co n 0 i me & Co m m unity I m pact A n a I ys is. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 4 Co n c Ius ion s .............................................................................................................................. . 1 6 Appendix. . .. . . . . .. . .. . . . . . . . .. . .. . .. . . . . .. . .. . . . . .. . .. . . . . .. . .. . .. . . . . .. . .. . . . . .. . .. . . . . .. . .. . .. . . . . .. . .. . . . . .. . .17 - 1 - Executive Summary The Hanson Avenue Twin Pad Arena Sport Partnership Business Case was presented to Community Services Committee on September 18, 2006. The business case defined four possible options of varying size, partnership components and cost, defined in Section 2 of this business case. The Committee directed staff to commence detailed construction drawings based a facility being constructed that meets the needs of the Kitchener Minor Hockey Association (KMHA) and the Waterloo Regional Boxing Academy (WRBA), but indicated that all the other options be retained for further consideration pending the fundraising review. The business case was tabled pending more information on a number of items. The items are as follows: 1. Walking Track Demand Study 2. Fundraising Feasibility Study/Capacity Analysis 3. Fundraising Plan 4. Costing at 500/0 Design Completion 5. LEED (Leadership in Energy and Environmental Design) Analysis 6. Functional Review - Shared Space Analysis 7. Wilmot Twin Pad Cost Comparison 8. Sport Partner Agreements 9. Site design/connectivity 10. WRBA and KMHA Capacity and Sustainability The information and consultant reports responding to the 10 items above are included within the appendices of this business case. Council also requested a cost comparison between the Hanson Avenue Twin Pad project and the Wilmot Twin Pad Arena. Information relating to this request is attached to Report CSD-07-01 that accompanies this business case. The Sports Partners retained the services of a consulting firm, Campaign Coaches, to conduct a feasibility study to determine the amount that potentially could be fundraised for this project. Based on their review, Campaign Coaches have recommended that the campaign goal be set at $2,000,000 with a pledge period of up to 5 years, resulting in net revenues of $1,750,000 after expenses. The Fundraising Feasibility Study Executive Summary is attached to this report as Appendix B. In order to attain their fundraising goal, the Sports Partner group hired John Thompson, former CEO of the United Way Kitchener Waterloo and Area to develop a draft fundraising plan (Appendix C). The plan provides an overview of the key components of the fundraising program so that in the event that, Report CSD-07-01 is approved, the fundraising campaign can commence immediately. An opinion paper attached to the Business Case as Appendix J was prepared by the City of Kitchener Athletics staff on the sustainability and capacity of the two proposed sport partners. Both organizations are affiliated with the City, have long histories within the community and appear to be financially stable. A relocation to the new Hanson Avenue Twin Pad Arena would only strengthen their programs, assist in their growth and provide for a long term viability. F.J. Galloway & Associates were commissioned to complete a feasibility demand study to explore the need for the addition of a walking track as part of the new facility. Based on the City's healthy community initiatives as well as a high level of support from community groups, walking clubs and minor sports groups, among other rationale - 2 - described later in the Business Case, the consultant recommended that the City pursue the development of a walking track as an additional feature within the new Hanson Ave. Twin Pad Arena. The complete study is appended to the report as Appendix D. A LEED/ Sustainability analysis was completed for the project by Enermodal Engineering Ltd. with input from the City design team. The purpose was to compare the costs and benefits of upgrading the mandated LEED Silver status to LEED Gold certification. It was determined that the project is well positioned to achieve LEED Gold status. However, this would require an additional investment from the City of approximately $250 - $300 thousand dollars including overhead costs. This additional investment would result in savings to the City of $8,500 over and above the $125,000 savings in energy costs on an annual basis at a LEED Silver level. More detailed information is provided in Section 6 of the Business Case as well as Appendix E. The Project Team, which includes staff, members of the sport partners and the project architect met on several occasions to review and improve the design of the facility. One of the key components of the review was to identify common or shared space within the facility. Wherever possible, space is being shared within the facility. Specific use requirements are further defined in Section 8 of the business case. The City's Enterprise Division and Legal Department have prepared draft facility use operating agreements for the Kitchener Minor Hockey Association and the Waterloo Regional Boxing Academy. The agreements are summarized in Report CSD-07-01 and appended to this Business Case in Appendix F. The approved location for the Twin Pad Arena is the former Hanson Avenue snow dump site. While the site has many advantages on many different levels, there was concern that it would not be possible to get full access from a main arterial road, there are no existing transit services and the access to the site is through an industrial area. As a result staff, commissioned the GSP group to undertake a connectivity study. Their study indicated that the arena would be a catalyst for change and future improvements for the area, but that critical to this success was the development of neighbourhood streets and pathways to ensure that good access is provided to the facility. The proposed external connectivity recommendations and timing are detailed in Section 8 of the business case and shown on a map in Appendix G. Proiect Parameters and FinanciallmDact The Hanson Avenue Twin Pad Arena project has a total budget of $15.8 million (2007 dollars) which accounts for a base building of approximately 80,000 square feet and all associated site works, fees and required studies. The funding approved for the basic Twin Pad is $3.47 million from Capital out of Current and $12.33 million from Development Charge. The Twin Pad project has other major potential amenities including: · Kitchener Minor Hockey Association (KMHA) needs · Waterloo Regional Boxing Academy (WRBA) · Community Walking track The inclusion of the amenities for the KMHA and WRBA will cost an additional $658,000 and $1 ,088,000 respectively for a total of $1.75 million. The inclusion of a walking track will require an additional $1.55 million. The development charge fund will provide $.28 million towards the cost of the walking track. Fundraising revenues will also be a source of funding. The Fundraising Feasibility and Capacity Analysis Study(Appendix B), initiated by the Sports Partners Collaboration, determined that $1.75 million net over a five year period is an achievable fundraising goal to assist in offsetting the cost of these components. An interest free loan for $1.75 million will be established and all fundraising revenues will be applied to the loan. It is anticipated that 30-500/0 of the loan will be repaid before the complex is completed. It is also anticipated that, at the end of the fundraising campaign, 1000/0 of the goal will be committed. - 3- If council directs staff to include the amenities for KMHA, WRBA and the walking track, an additional $1.27 million from capital out of current funds will be required. Moving to a LEED Gold building would require additional capital funding of $250,000-$300,000. In order to keep the project on schedule and meet the completion date of June 2008, pre-approval of the increased funding of $3,300,000 will be requested during the 2007 capital budget review at the finance and Corporate Services Committee meeting on January 15, 2007. Recommendation That the Sport Partner Business Case and supplementary business case as appended to CSD Report 07-01 be accepted, and, That staff be directed to proceed to construct an Athletic Complex at the Hanson Ave site to include a twin pad arena, boxing facility, minor hockey offices/storage and a community walking track as outlined in the Sport Partner Business Case and Supplementary Business Case; and, That the 2007/08 capital budget be increased by $3,300,000, funded as follows; $1.75 million from a Sport Partner capital campaign, $280,000 from DC and $1.27 million from CC, subject to capital budget deliberations January 15th, 2007; and, That the Sport Partners be given approval in principle to commence a capital campaign to generate $1,750,000 (net) with the proviso that a schedule of naming rights assigned for major donations be pre-approved by Council at a futu re m eeti ng; and, That the Director of Enterprise be authorized to sign the draft partner operating agreements as appended to CSD Report 07-01 subject to the satisfaction of the City Solicitor; and further, That direction be given to staff with respect to the LEED designation objective for the facility. - 4- Background The sport partner business case involving the Kitchener Minor Hockey Association (KMHA) and the Waterloo Regional Boxing Academy (WRBA) for the Hanson Ave. Twin Pad project was tabled at Community Services Committee on September 18th, 2006. The business case outlined four (4) potential options that council could consider for the twin pad facility. The options and class B/C cost estimates at the time were as follows: Option 1 - basic twin pad plus some basic requirements for KMHA - $15.8 million Option 2 - twin pad plus all KMHA's needs - $16.4 million Option 3 - twin pad plus all KMHA's needs and WRBA facility - $17.5 million Option 4 - twin pad plus all KMHA and WRBA requirements along with community walking track - $19.7 million The city funding for the project was set at $15.8 million (Option 1). It was indicated the cost for the additional options (options 2 to 4) would add between $600,000 and $3.9 million to the cost of the facility depending on which option council ultimately approved. The sport partners (KMHA and WRBA) were directed to qualify the fundraising capacity for the project to determine the amount that could be raised to offset the costs of the additional options. Council directed staff to commence detailed construction drawings based on option 3 above but that all the other options be retained for further consideration pending the fundraising review. To keep the project moving forward, approval was given to obtain the necessary site plan approvals and proceed to grading the site. In addition, engineering staff were directed to undertake an environmental assessment for a potential extension of Hanson Ave. to connect to the future Blockline Road extension. During the presentation to community services committee on September 18, 2006, members of committee asked for additional information that was not available at the time. Staff indicated that a report would be prepared for consideration in January 2007 that would incorporate the information. This report would allow council to make an informed decision on which option should proceed to construction, the determination of the LEED designation along with how the project could be funded. - 5- Fundraising Capacity Analysis The City funding for the project is set at $15.8 million. The Kitchener Minor Hockey Association and the Waterloo Regional Boxing Academy were directed to qualify the fundraising capacity for the project in order to offset the difference in cost between the $15.8 million budgeted by the City and the final cost of the project with the additional amenities. The City of Kitchener Sports Partners retained Campaign Coaches to conduct a Fundraising Feasibility Study to hear the opinions and comments of community leaders, and to make recommendations regarding the ability to conduct a $4 million capital campaign to build a twin Ice pad / boxing facility/KMHA offices with possible walking track in Kitchener. The information and data for the study were collected through: 1. A thorough review of materials developed concerning the proposed project, and through several discussions with members of the committee of the City of Kitchener Sports Partners; 2. Personal interviews conducted with selected community and business leaders, and individuals associated with City of Kitchener Sports Partners. The interview list was prepared in cooperation with the Sports Partners committee. Packages were mailed to 63 names, identified on the original interview list, requesting that they participate in the interview process. During the course of the Fundraising Feasibility Study, 36 individuals were interviewed representing businesses, volunteers, local philanthropists and community leaders and user groups. Confidentiality of responses was emphasized to all interviewees. It was clearly stated that respondents' identities would not be revealed with respect to specific comments and opinions FINDINGS Awareness · Generally, those interviewed acknowledged that additional ice time is needed in the City, particularly because of the growth factor, combined with ageing facilities that must be replaced. The addition of the Walking Track will enhance the appeal of the facility for a larger demographic. While the addition of ice and new facilities was the most appealing aspect to most, the idea of a "multi-use" facility for health, sports and activities for children was consistently emphasized rather than the campaign being solely positioned as a hockey/boxing project. Goal · There was a higher than usual percentage of people who were not convinced (not sure) the goal of $4 million was attainable. Those that felt it was achievable because the community has supported much larger campaigns in the past and because of the popularity of hockey, were still concerned that the large gifts needed would be hard to find. Most of the potential major gift prospects interviewed during the course of the study were either non-committal on the amount that they might donate, or the amount specified fell well below the required amount of lead gifts to successfully complete a campaign at the $4 million level. - 6- RECOMMENDATIONS 1 . Explore and review the components of the overall facility and the projected costs. During the study it was often suggested that adding a public fitness centre would complement the planned components (twin ice pad, boxing academy, walking track, and community meeting rooms) positioning the facility as a multi-use centre. The broader the potential use of the facility the greater the public interest. The inclusion of more Sports Partners will broaden the fundraising/support base. 2. Review the case for support: · Clearly describe the components of the facility · Articulate a Vision for the facility and clarify whether other sport/health activities will take place in the facility · Provide a concise breakdown of the budget outlining the campaign goal and community investment · Provide more details on population growth and potential use of facility · Focus the case on the overall benefit to the community: quality of life, healthy lifestyle and family oriented. 3. Send letter to study interviewees thanking them for their participation in the study and giving them an overview of findings and outcomes. 4. Based on the results of the interviews, Campaign Coaches recommends a campaign goal (with or without the track) be set at $2,000,000 with a pledge period of up to 5 years. 5. Create a position for a Campaign Manager who will manage the day-to-day activity of the capital campaign. 6. Conduct a leadership recruitment program immediately to identify, recruit and train the existing and additional volunteer leaders joining the campaign management team. A pragmatic approach to solidifying the campaign management team will pay dividends for the campaign. The recruitment of Sports Celebrities as Honorary Campaign Advisors will also greatly enhance the profile of the campaign. 7. Donor recognition is a very important part of establishing a fundraising campaign. All donations large or small should be recognized. Naming Opportunities (approved by the City of Kitchener) aligned with the major components of the project must be made available. These naming opportunities are used as a marketing tool to help elevate the donor's sights and as a permanent thank you for their commitment. Naming Opportunities help attract the crucial lead gifts. Corporations are often very interested in demonstrating their leadership in the community and heightening brand awareness through an affiliation with a prominent community project. Waterloo Reaional Boxina Academv lWRBA)/ Kitchener Minor Hockev AssociationlKMHA) CaDacitv and Sustainabilitv The City of Kitchener Athletics staff prepared an opinion paper which defined the sustainability of both the KMHA and the WRBA. This paper is attached as Appendix J to the Business Case. In general, both organizations are currently affiliated with the City, have long histories within the community and appear to be stable for the future. Relocating their organizations within the Hanson Avenue Twin Pad Arena will further strengthen and grow their programs allowing them to service members of the sports community for years to come. - 7- Fundraising Plan The Sport Partners engaged John Thompson, former CEO of the United Way of Kitchener- Waterloo and Area to develop a plan and template for the fundraising campaign. It was felt that not only was it important to determine the fundraising capacity in the community for this project, it was also important to understand how capacity would be actually be converted to financial commitments. The Fundraising Plan was developed to demonstrate the scope of work required and proposed timelines in order to turn the potential into commitments. There is much work required to achieve the target fundraising goal of $2 million for this project. This includes leadership recruitment of a Campaign Cabinet who will oversee the fundraising campaign. The Campaign Cabinet structure is outlined in the fundraising plan (Appendix C). The Cabinet will finalize development of all campaign goals, targets, job descriptions and policies. The Cabinet will also establish a donor recognition program for Council consideration in the new year. It is expected a budget of 10 - 150/0 of the overall target will be required to implement the campaign. The Campaign Cabinet expects to engage a Campaign manager and will incur other expenses to implement the fundraising program. An outline of the proposed expenses is provided in the Fundraising Plan. The timelines for the campaign have been developed as follows: - Campaign Feasibility - September - December 2006 - Campaign Readiness - January - March 2007 - Advance Corporate Campaign - April - September 2007 - Community Campaign - September - December 2007 - Campaign Wrap-up- January - March 2008 Peter Benninger of Coldwell Banker Peter Benninger Real Estate has been recruited to Chair the Campaign. Mr. Benninger has a great deal of experience and will be an excellent advocate for the campaign. In addition the Sport Partners as leaders will provide human resource support to help drive the plan. Finally, the City of Kitchener will provide the charitable receipts and will provide financial advice. -8- Track Feasibility Demand Study F. J. Galloway & Associates were commissioned to do a feasibility demand study for the potential of a walking track as part of the new Hanson Twin Pad Arena. The report is attached as an addendum to the business case. (Appendix D) The consultant met with representatives of five seniors walking groups, a community advocate, the chairperson of M.A.C.K.S. and a number of community sports groups. Conclusions and recommendations are based on information gleaned from the interview process along with an analysis of trends and the demographic profile of the region. The report conclusions are as follows: 1. A walking track would respond to the interest of social walkers, as well as adult fitness joggers and youth sport teams; but not high performance track athletes. 2. A three to four lane track is the minimum required to service the varied track use profile. 3. Scheduling strategies and mitigation procedures are required to manage the varied track and facility use profile. 4. The track would be consistent with Healthy Kitchener initiatives that are currently underway. 5. Support for volunteered managed clubs/uses would help encourage use. 6. Revenue generation potential is minimal. 7. Defining absolute demand levels for such a facility is difficult, but there is the potential for 2,000-3,000 uses a month (24,000-36,000 annually). The consultant then provided three alternatives the city could consider: a) Do not support the development of a walking track at this time. b) Defer the walking track and assign it to the future south Kitchener district complex. c) Proceed with the Twin Pad walking track at the new Hanson Ave. Twin Pad Of the three alternatives noted above, the consultant recommends alternative (c), "that the City of Kitchener pursue the development of a walking track for Kitchener residents as an additional feature within the new Hanson Ave. Twin Pad Arena project." The key rationale supporting the recommendation are as follows: · Supports healthy community initiatives · High level of support from community groups, walking clubs and minor sports groups · High usage at other similar facilities (ie. Waterloo Recreation Centre) with lack of similar opportunities for Kitchener residents · Increasing interest by an aging population related to self directed fitness activities · The proposed location is good in terms of servicing growth and in relation to other similar community access walking facilities - 9- LEED Analysis Gold vs. Silver LEED 'Silver' vs. 'Gold' In September the project team was directed by Council to investigate the costs for taking the project from LEED 'Silver' status to 'Gold'. Three LEED workshops were held with various members of the project team and as a result ended up with a design which would qualify this project for 37 LEED credits and a 'Silver' standing. To get to 'Gold' a minimum of two additional credits would be required, however, the team is recommending that the following three credits be pursued. 1. Credit SSc7.2 Heat Island Effect, Roof 2. Credit EAc1 Optimize Energy Performance 3. Credit EAc5 Measurement and Verification Three thousand square feet of 'green roof' is included as one of the Gold initiatives, however, the same LEED credit can be realized through a more economical roof system. Optimizing Energy Performance by adding heat recovery ventilators and a waste heat recovery system for preheating the domestic hot water will add approximately $150,000 to the project cost, however, we can anticipate saving around $8,500 annually on our energy bills. The additional energy savings for these initiatives are in the range of $8,500 per year, however, these savings will, to some degree, be diminished by additional maintenance costs. The third item, Measurement and Verification, will increase the optimization and accountability of the energy and water consumed by the building. Monitoring equipment along with additional consulting services would be required to compare the energy predictions to actual performance after one year of occupancy. The additional cost for this item is approximately $40,000. Total cost to achieve these three credits and thereby putting the project in a good position to receive a LEED 'Gold' standing is between $250,000 and $300,000. This money is currently not in the project budget and would have to be approved by Council. The cost versus the benefits of LEED Silver vs. Gold are further defined in the chart below. Certification Level Capital Investment Annual Energy Payback Period Savings with Offsets *Silver (37 Credits) $653,000 $124,000 5.3 years Gold (39 Credits) $903,000-$953,000 $124,000 7.2 - 7.6 years *Note: This level is already included in the project budget A more detailed description of the three credits along with a breakdown of their costs can be found in the letter from Enermodal Engineering dated December 8,2006 attached as Appendix E. - 10- Green Roof The project team was also directed, by Council in September of last year, to investigate the possibility of putting a 'green' roof on the new facility. A 'green' vegetated roof helps this project in a number of ways. First of all, we need to cover an additional 3,000 square feet of roof area with a highly reflective and emissive roofing material or a vegetated 'green' roof in order to meet the requirement for LEED credit SSc7.2 Heat Island Effect, Roof. Also, a 'green' vegetated roof system reduces the heating and cooling load on the building and will save approximately $75 annually in energy costs. It experiences lower surface temperatures than a standard roof and slows deterioration of the roofing membrane. It absorbs approximately 500/0 of the rainfall which reduces the amount of storm runoff and returns a portion of this moisture to the atmosphere through evaporation. The greatest value in a 'green' roof at this location, however, could be in the 'soft' benefits such as public education and awareness with respect to the environment. The downside is that these types of roofs are expensive to install and require more maintenance than a 'conventional' roofing system particularly in the first two years until the plant material is established. In this case, it would involve installing 3,000 square feet of roof at approximately $50,000 over the cost of a conventional single ply membrane roofing system. This item has not been included in the current project budget and will require Council's approval for additional funding should the project team be directed to proceed with this installation. - 11 - Section 7 Functional Design Review - Shared Space Analysis A functional review of the Twin Pad design and layout was completed by the Project Team members. A key component of this review was finding ways to identify common or shared space within the facility. The focus of shared use within the facility was on the following components: offices, storage, meeting rooms, public and staff circulation space and ancillary facilities. The Twin Pad Arena has a total gross floor area of approximately 108,487 sq. ft. of this, approximately 12,508 square feet have shared components. The following table identifies the components and corresponding shared areas, as well as exclusive partner use areas. Shared Use by Shared Use Exclusive Exclusive Exclusive Area all Groups by 2 Groups City Use KMHA KWBA Use Use Storage 577 2134 Meeting Rooms 1757 Public & Staff 5937 2658 Circulation Space Offices 131 338 2062 850 Ancillary Facilities 1508 - weight room - concessions Total Sq. Ft. 9333 3235 338 4196 850 - 12- Section 8 Connectivity Recommendations for Site Design The Twin Pad Steering Committee retained the services of the GSP Group who, in association with Paradigm Transportation Solutions Limited conducted a Neighbourhood Connectivity Study. The following chart and accompanying map (Appendix G) detail the proposed external site linkages and road status affecting the Twin Pad Arena site. TWIN PAD ARENA OFF-SITE CONNECTIVITY Sidewalks/Pathways LOCATION DESCRIPTION FUNDING TIMING Hanson (1) · Sidewalk currently exists on Hanson from Homer Watson to the Family and Children's Services property (FCS) · Sidewalk to be extended from DTS Sidewalk 2007 FCS to the Twin Pad Arena Program property line Hanson (2) · If Hanson Ave. is extended to Block Line Rd. a sidewalk will also be constructed · If Hanson Ave is not CSD 2007 constructed, a public trail will Capital Account be constructed to Blockline Homer Watson Blvd . A sidewalk will be constructed Sidewalk Account Currently not in from Block Line Rd to the Twin program Pad site (significant grade changes need to be overcome) · Potential stone dust trail from CSD Capital Account TBD the Twin Pad site through St. Mary's property to Homer Watson Blvd CSD Capital Account TBD · Potential stone dust trail from Twin Pad site to the school Road Status LOCATION DESCRIPTION FUNDING TIMING Hayward Ave . Upgrade 1 reconstruction from DTS Capital Worksl 2009* Hanson to Courtland Roads Program Block Line Road . Hanover St. to potential Hanson DTS Capital Works 2008 Extension connection Hanson Ave extension · New from Hayward to Blockline Capital of Current! 2007/2008 . EA underway Development Charge *bridge replacement scheduled for 2009 - road and sidewalk improvements to coincide with bridge closure - 13- Section 9 Economic & Community Impact Analysis Financiallmolications: In the 2006-2015 capital forecast, council approved a budget of $15.8 million for an 80,000 square ft. Facility. The project team is confident, based on 500/0 design drawings, that the basic twin pad can be constructed within this original budget. The funding approved for the basic twin pad is $3.47 million from CC and $12.33 million from DC. The twin pad project could include other major potential amenities including: · Kitchener minor hockey association (KMHA) needs · Waterloo regional boxing academy (WRBA) · Community Walking track The inclusion of the amenities for the KMHA and WRBA will cost an additional $658,000 and $1 ,088,000 respectively for a total of $1.75 million. The inclusion of a walking track will require an additional $1.55 million. The development charge fund will provide $.28 million towards the cost of the walking track. Fundraising revenues will also be a source of funding. The fundraising feasibility and capacity analysis study, initiated by the sports partners collaboration, determined that $1.75 million net over a five year period is an achievable fundraising goal to assist in offsetting the cost of these components. An interest free loan for $1.75 million will be established and all fundraising revenues will be applied to the loan. It is anticipated that 30-500/0 of the loan will be repaid before the complex is completed. It is also anticipated that, at the end of the fundraising campaign, 1 000/0 of the goal will be committed. If council directs staff to include the amenities for KMHA, boxing and the walking track, an additional $1.27 million from capital out of current funds will be required. Moving to a LEED gold building would require additional capital funding of $250,000-$300,000. In order to keep the project on schedule and meet the completion date of June 2008, pre-approval of the increased funding of $3,300,000 will be requested during the 2007 capital budget review at the finance and corporate services committee meeting on January 15, 2007. A matrix of the funding sources for the Hanson Avenue Twin Pad Arena is attached as Appendix H. A detailed budget estimate for the Twin Pad facility is attached as Appendix I. Recommendation: That the 2007/2008 capital budget be increased by $3.3 million funded as follows, $1.75 million from a Sport Partner capital campaign, $280,000 DC and $1.27 million CC, subject to capital budget deliberations to be held on January 15th 2007. - 14 - Cost Estimate Based On Desian Comoletion of the Facilitv to Sook As of December 1 S\ 2006 the Hanson Ave Twin Pad Arena 'design' was at 500/0 completion. Ball Construction, the project's construction manager, provided the project team with an updated costing for the current design on December 5th, 2006 and these figures are being carried as the basis for this report. This is considered to be a "Class B" estimate. The design is expected to be at 900/0 completion by early January 2007 and an updated cost estimate will be submitted by Ball Construction before the end of January 07. It is at this point that the project team will have a better indication of project cost as compared to budget. This will be a "Class A" cost estimate. Should the 'base building' component exceed our target of $15.8 million, the project team will review the drawings and specifications and develop a strategy to bring the project back on track. The project team is committed to bringing this project in on budget and on time. There may be a need to make some adjustments with respect to the quality of the materials selected or the size of the building to achieve this goal. - 15- Section Conclusions 10 In summary, utilizing all the information that has been provided within the attached report, CSD-07-01 and business case, the project team has developed the report recommendations based on the following conclusions: a) That the original $15.8 budget for the basic components of the Twin Pad Complex is an achievable target staff works to in building the facility b) That the KMHA additional administrative support space and WRBA facility can and should be built at a cost of $1,750,000. c) That the Community Walking Track be included at a cost of $1.55 million and be partially funded through DC 190/0 d) That the capital campaign goal of $2 million is achievable and planning for the KMHA and WRBA components should receive authorization to commence e) That it is prudent for the City enter into formal operating agreements with the sport partners Staff is requesting Council direction with respect to LEED Gold or Silver status due to the unique nature of the decision. Moving to a Gold designation would require an additional capital allotment of $250,000 - $300,000 depending if a green roof where to be included. RECOMMENDATION That the Sport Partner Business Case and supplementary business case as appended to CSD Report 07-01 be accepted, and, That staff be directed to proceed to construct an Athletic Complex at the Hanson Ave site to include a twin pad arena, boxing facility, minor hockey offices/storage and a community walking track as outlined in the Sport Partner Business Case and Supplementary Business Case; and, That the 2007/08 capital budget be increased by $3,300,000, funded as follows; $1.75 million from a Sport Partner capital campaign, $280,000 from DC and $1.27 million from CC, subject to capital budget deliberations January 15th, 2007; and, That the Sport Partners be given approval in principle to commence a capital campaign to generate $1,750,000 (net) with the proviso that a schedule of naming rights assigned for major donations be pre-approved by Council at a future meeting; and, That the Director of Enterprise be authorized to sign the draft partner operating agreements as appended to CSD Report 07-01 subject to the satisfaction of the City Solicitor; and further, That direction be given to staff with respect to the LEED designation objective for the facility. - 16- List of Appendices Appendix A Business Case - Hanson Avenue Twin Pad Arena - Potential Partnership Kitchener Minor Hockey Association, Waterloo Regional Boxing Academy September 2006 Appendix B City of Kitchener Sports Partners Fundraising Feasibility Study Executive Summary December 7,2006 Appendix C Fundraising Plan for Sports Partners Committee - December 13,2006 Appendix D Twin Pad Walking Track Feasibility Study, City of Kitchener, November 2006 Appendix E LEED Gold vs. Silver Implications, Enermodel Engineering Limited December 8, 2006 Appendix F Draft Sports Partner Operating Agreements Appendix G Site Design and Connectivity Map Appendix H Twin Pad Amenities - Funding Sources Matrix, December 20, 2006 Appendix I Twin Pad Ice Pad Budget Detail Estimate, December 21 , 2006 Appendix J City of Kitchener, Athletics Staff Opinion Paper - 17- Community Services Department Business Case Hanson Avenue Twin Pad Arena Potential Partnerships - Kitchener Minor Hockey Association, Waterloo Regional Boxing Academy SEPTEMBER, 2006 Table of Contents Executive Summary.................................................................................................................... 2 Backgrou nd............................................................................................................................ ...... 5 Kitchener Minor Hockey Association.......................................................................................... 6 Waterloo Regional Boxing Acadamy .......................................................................................... 6 P r oj e ct Des c rip t ion ...................................................................................................................... 8 o b j e ct i ve s .............................................................................................................................. . . .. 11 Sco pe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1 2 Anticipated Outcomes............................................................................................................... 12 Stake h 0 Ide rs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 1 3 Strategic Alignment................................................................................................................... 14 Project Risk Assessment.......................................................................................................... 16 Risk of Project and each Alternative......................................................................................... 16 Risk of Not Proceeding with Project......................................................................................... 17 Economic and Community Impact Analysis ............................................................................. 18 Co n c Ius ion s .............................................................................................................................. . 22 Appendices .............................................................................................................................. . 22 PAGE 1 Executive Summary On October 20, 2003 Kitchener City Council endorsed, in principle, construction of a new twin pad arena in order to service the new growth within the city, and further, as response to representations made by the Kitchener Minor Hockey Association. A significant investigative and public process began in 2005 that was intended to lead to the development of a business case that would confirm the need for a new Twin Pad, identify the preferred location, confirm timelines for construction and provide preliminary Class C (initial cost estimates). In January 2006 Council approved the Business Case for a new 80,000 square foot Hanson Avenue Twin Pad Arena. The Twin Pad Arena Business Case contained the following recommendation: "It is recommended that a Twin Pad Arena be located on the Hanson Snow Dump site with occupancy of the facility by June 2008. Further that the City enter into discussions with a number of stakeholders to determine individual needs and funding opportunities and that any partnership arrangements be approved by Council prior to any change in project scope and cost." In addition council directed staff to proceed with the concept design development phase based on a budget of $15.8 million dollars for 80,000 square feet. Staff also was directed to engage an Architect and Construction Manager to develop the design and related costing. As a result this business case was undertaken to provide more detail on the partnership components and the actual design amenities and costing. It is the objective of the business case to have council direct staff to proceed to detailed drawings and site grading only at this stage. This level of approval is being requested since the fundraising capacity for this project is not known and hence Council would not have all the financial information to make an informed decision on the scope of stakeholder amenities. A community facility of this magnitude generates potential synergies with other recreationally oriented groups. Through the approval process of the arena, a partnership interest was expressed from two stakeholder groups; the Kitchener Minor Hockey Association (KMHA) and the Waterloo Regional Boxing Academy (WRBA) (Appendix A, B and G). The KMHA currently operates out of the basement of the Victoria Park Pavilion where they occupy approximately 1500 square feet of office space and associated storage. They also utilize approximately 1500 square feet of substandard equipment storage space on the second floor of a municipal repair garage within Victoria Park. The Twin Pad Arena project will allow the KMHA the opportunity to consolidate their operation into one central location which will be easily accessible by parents, volunteers and staff. It will also allow the space to be created specifically to suit their needs allowing for greater efficiencies within their organization. The WRBA presently leases approximately 2000 square feet within a commercial building at 1253 King Street East in Kitchener. Their facility is inadequate as it there are insufficient change rooms and shower facilities, as well, the gym is too small to allow for any club events. This project provided to impetus for the WRBA to create an appropriately sized facility for expansion of their programming as well as host club shows. Further, it will allow them to create efficient space in order to accommodate their training equipment. PAGE 2 Executive Summary (Cont'd) Partnering with the Twin Pad Arena will allow the WRBA to create an appropriately sized facility for expansion of their programming as well as host club shows. Further, it will allow them to create efficient space in order to accommodate their training equipment. Members of both the Kitchener Minor Hockey Association and the Waterloo Regional Boxing Academy, along with City Staff and the architect hired by the City have been extensively involved in the design process of the facility. This collaboration has enabled the potential sports partners the opportunity to achieve their organization's goals and meet the needs of their user groups into the future. Within the design process, both user groups identified the need for a public indoor walking track to enable their participants further training opportunities. There was also some interest in a track expressed from the community at a public meeting that was held regarding potential designs of the facility. The City has served as a facilitator for both KMHA and the WRBA in the development of a fundraising/sponsorship plan. The plan is necessary to provide the financial support for the facility amenities over and above those outlined in the original business case. The goal would be to ensure there is a realistic funding program in place to offset any additional costs above the $15.8 million originally budgeted so that there is no funding shortfall. However, Council may decide to direct staff to complete the amenities as an additional tax subsidy should there not be fundraising capacity in the community. The plan is well underway with a number of Community leaders in place to develop and undertake the fundraising program. In fact, the stakeholders have commenced the qualifying phase of the program to determine the capacity and potential funding organizations in the community. PROJECT PARAMETERS AND FINANCIAL IMPACT The Hanson Avenue Twin Pad Arena project has a total budget of $15.8 million (2007 dollars) which accounts for a base building of 80,000 square feet and all associated site works, fees and required studies. This portion of the project will be financed through a combination of current capital and development charge funds. Facilitv/Sports Partner Parameters - Fundina Impacts Option 1 - 80,000 square foot Twin Pad Arena as defined in the original business case which would include a provision for the basic requirements of KMHA - $15.8 million. Option 2 - 83,717 square foot facility which would incorporate all of the KMHA needs and would require a fundraising commitment of approximately $600,000. Option 3 - 90,985 square foot facility which includes all of KMHA needs along with the WRBA facility. This would require a fundraising commitment of approximately $1.7 million. Option 4 - 105,616 square foot facility that includes meets the needs of the KMHA and WRBA and includes a walking track that would allow for a broader community use. This would require funding of an additional $2.2 million over and above the requirement of Option 3 or a total of $3.9 million in additional funds. PAGE 3 RECOMMENDATION That the sport partner business case for the new Hanson Ave. Twin Pad Arena as appended to CSD Report #06- 097 be accepted, and further; That PBK Architects be instructed to complete detailed construction drawings for a Twin Pad Arena on the Hanson Ave. site based on Option 3 at an additional architectural budget of $85,000 but that the other options be retained for further consideration pending the fundraising review, and further; That staff be directed to obtain the necessary site plan approvals and proceed to grading the site at a budget of $500,000, and further; That the sport partners, Kitchener Minor Hockey Association (KMHA) and Waterloo Region Boxing Academy (WRBA) undertake to qualify the fundraising capacity of the community and develop a fundraising plan with a goal of offsetting the additional incremental costs associated with the amenities over and above those outlined in the original business case and that such fundraising plan be subject to approval of Council, and further; That staff report back in January of 2007 outlining the results of the community fundraising capacity analysis and fundraising plan along with a final recommendation on which option should proceed to construction. PAGE 4 Background On January 30, 2006 Kitchener City Council approved the Business Case for the new Hanson Avenue Twin Pad Arena to be located on the site of the Hanson Avenue snow dump. The project has a total approved budget of $15.8 million (2007 dollars) which accounts for a base building of approximately 80,000 square feet that incorporates the arenas, offices and mechanical rooms, furnishings, within a class B/C building. Additionally, the budget also accounts for fees and any required studies as well as all site works including a potential exit onto Homer Watson Boulevard. The need for a new twin pad arena was established in the City's Leisure Facilities Master Plan (February 2005) and further, a subsequent Ice Demand Study (April 2005) showed that demand for ice surfaces exceeds supply due to population growth, and growth in participation rates. At present, the number of publicly owned ice pads per resident is below the regional average. There is approximately 1 rink for every 28,711 Kitchener residents and 1 rink for every 17,114 residents on a region wide basis. Waterloo has a ratio of one rink for every 11 ,250 residents. The construction of a new Twin Pad recreational facility generates potential synergies with many other recreationally oriented user groups. During the creation of the Twin Pad Business Case partnership interest was expressed from the Kitchener Minor Hockey Association as well as the Waterloo Regional Boxing Academy. (See appendix A, B and G, Letters of Interest) The Kitchener Minor Hockey Association (KMHA) is interested in consolidating their administrative offices and storage facility and have requested 1500 square feet of administrative space and 1500 square feet of equipment storage space plus an additional 600 square feet for a meeting/archive room. (Appendix B and G) Subsequent to their submission dated November 2005, KMHA staff revised their request for equipment storage space to 2000 square feet and revised their request for a meeting room/multi-purpose room to 1000 sq. ft. In addition KMHA suggested additional larger sized dressing rooms be incorporated to better reflect the needs of today's and future programming. The Waterloo Regional Boxing Academy is also interested in partnering with the facility and would like to relocate their leased facility from 1253 King Street East in Kitchener to the Hanson Avenue Twin Pad location. They have requested a base building of 5000 square feet plus two mezzanines internal to their facility to accommodate a boxing ring and associated training equipment with room to host club shows. (Appendix A) The WRBA involvement was spurred by the potential of a relatively significant donation along with the fact the have a desire to make their program more mainstream and available to a larger number of participants. The fact that WRBA is now an affiliated organization with the City of Kitchener and they are willing to actively participate in fundraising with a goal to off-set the full cost of the facility makes their involvement especially appealing from a community sport development perspective. Through the evolution of joint discussions with both potential partners, it was felt that a running/walking track would be beneficial to both user groups and as such has been requested to be included within this business case. PAGE 5 KITCHENER MINOR HOCKEY ASSOCIATION The Kitchener Minor Hockey Association (KMHA) has been operating their organized hockey programs within the City of Kitchener since 1935. The KMHA is a not-for-profit corporation administered by a Board of Directors and a full time staff of 5 people in conjunction with the City of Kitchener Minor Sports Affiliation Policy. Each season, approximately 800 volunteers actively participate in KMHA hockey programs as coaches, trainers, managers, conveners, tournament staff and Directors. There are currently approximately 3000 boys and girls registered in the hockey programs. KMHA currently operates their administrative offices from the basement of the Victoria Park Pavilion. They occupy approximately 1500 square feet, of which 1200 square feet are offices and 300 square feet are associated office storage space. This facility presents a number of challenges for the organization. The entrance to the offices is not barrier - free which prevents access by some parents of participants and volunteers that have physical handicaps, making it difficult or impossible for them to access the offices. Secondly, KMHA has experienced two significant business interruptions within the past year due to flooding, requiring them to temporarily relocate to another facility. In addition, they repeatedly experience water leaking into their file storage area causing damage to their files. Further challenging the daily operations of the KMHA is the fact that the Victoria Park Pavilion is used by many different user groups throughout the year, some of which are very noisy, making it difficult, if not impossible, to conduct business in their offices while the facility is in use. The excessive noise, amplified through the wooden floors, along with a reduction in available parking due to user groups and park patrons, create significant problems to the daily operation that would be alleviated through a move to a new facility. As indicated above, KMHA is also interested in relocating their existing storage facility to the new Twin Pad Arena. Their current storage space is located on the second floor of a municipal repair garage in Victoria Park. It consists of approximately 1500 square feet of interrupted, unheated space with access by stairs only. Distribution, shipping and receiving of equipment can only be done by appointment. The Kitchener Minor Hockey Association originally requested the addition of 3,600 square feet at the new Hanson Avenue Twin Pad Arena, consisting of: · Administration Areas and accessory storage - 1500 square feet · Meeting Room/ Archive - 600 square feet · Equipment Storage Facility - 1500 square feet The construction of the new arena on Hanson Avenue provides the Kitchener Minor Hockey Association with an opportunity to maximize efficiencies by having both their administrative offices and storage facility under one roof centrally located and accessible by all user groups. Waterloo Regional Boxing Academy The Waterloo Regional Boxing Academy (WRBA) is a non-profit organization sanctioned through Boxing Ontario and the Canadian Amateur Boxing Association. The WRBA has been in operation since 1947 and is completely staffed by volunteers overseen by an Executive Board. There are currently 40 competitive and 220 recreational male and female athletes ranging in ages from 9 to 45. The competitive athletes represent the WRBA and their communities at various local, provincial and National competitions. Females account for approximately 200/0 of their current membership with the numbers increasing annually given the interest in the sport as well as the benefits it provides from a fitness perspective. PAGE 6 Waterloo Regional Boxing Academy (Cont'd) The organization currently operates out of 2000 square feet of leased space within a commercial building located at 1253 King Street East in Kitchener. Their facility is in desperate need for repairs and there are inadequate change rooms and no shower facilities. In addition, the size of the current facility is inappropriate to host club boxing events which are potential revenue generators for the club. The Waterloo Regional Boxing Academy is interested in partnering with the City of Kitchener in the development of the Hanson Avenue Twin Pad Arena and are requesting approval to add additional square footage, in excess of 5000 square feet, to the approved 80,000 square foot facility. They are requesting a 5000 square foot base component with two mezzanines that would house all of the exercise equipment as well as a seating/ viewing area for use by parents, spectators and athletes. Through the design phase of the project, the WRBA needs were further defined as, 5256 sq. ft. of base building plus an additional 2012 square feet of mezzanine space for a total gross floor area of 7268 sq. ft. which will accommodate the boxing ring, offices, exercise equipment and viewing area. The larger facility will allow for an expansion of their programming with the possibility of hosting training camps for future National Teams. It will also provide for a safer atmosphere as the size and layout will provide for better site lines allowing for better monitoring of the younger participants by staff and coaches. PAGE 7 Project Description Project Description After an extensive site selection process, the City-owned Hanson Avenue snow dump site was deemed the preferred location due to its central location, compatibility with surrounding land uses and the ability of being able to meet the projected completion date. A new Twin Pad Arena will allow the City to accommodate regular programming and potentially allow for programming growth for Kitchener Minor Hockey, adult programs, ringette, figure skating as well as potentially creating more opportunities for public skating. A new facility would also allow for improvements to summer programs such as ball hockey, lacrosse and inline hockey. The construction of a new Twin Pad recreational facility generates potential synergies with many other recreationally oriented user groups. During the creation of the Twin Pad Business Case partnership interest was expressed from the Kitchener Minor Hockey Association as well as the Waterloo Regional Boxing Academy. The KMHA is requesting the relocation of their current administrative offices and associated storage facilities located at the Victoria Park Pavilion, as well as the relocation of their equipment storage facility currently located on the second floor of the maintenance garage at Victoria Park. Their specific requirements are defined as: · Administrative Areas and Storage - 2100 square feet with a private exterior entrance door and access to the general lobby area · Multi-purpose Room/ Archive -1000 square feet with recessed cabinets in 3 surrounding walls · Equipment Storage Facility - 2000 square feet with an exterior man-door and overhead doors, a 12 to 16 foot ceiling which would allow installation of multi-level sweater storage and allow for maximization of space and fluorescent lighting and space heating. · Expanded and additional dressing rooms - 21 00 square feet With the exception of the meeting room/archive space, KMHA currently uses a similar amount of space in its current locations. The need of "efficient space" is more important than obtaining additional space. Properly positioning these key components of their organization into the new twin pad facility will allow the KMHA to achieve the efficiency needed to effectively operate their programs. (See Appendix B) Through the building design phase of the project, the multi-purpose room/ archive space has been increased to 1000 square feet. The increase in size allows for accommodation of a greater number of uses and user groups. Additionally, the equipment storage area has been increased to 2000 square feet from 1500, to provide for expanded storage space. The WRBA is currently leasing 2000 square feet at 1253 King Street East in Kitchener. The facility is undersized, in need of significant repairs and has inadequate change rooms and shower facilities. To meet the current needs of the organization they are requesting a base building of 5200 square feet and two mezzanines of 1000 square feet and 1000 square feet for a total gross floor are of approximately 7012 square feet. This will allow for a full sized boxing ring, cardio/ plyometrics area, weight machine area and an area to suspend boxing heavyweight bags. A facility of this size would also allow for the hosting of "club" shows which would assist the organization in bringing in additional revenues. PAGE 8 Both the Kitchener Minor Hockey Association and the Waterloo Regional Boxing Academy have also expressed interest in the addition of a walking/ running track that would benefit in the training of both of their user groups. To accommodate both partners and the public, the track would require the addition of floor space to the twin pad arena of approximately 4000 square feet to the base building and an internal addition of approximately 10,016 square feet. It is the City's intent, that if the addition of a track is approved, the track would be available for community use as well as for the use of the partners. The 80,000 square foot twin pad facility has been budgeted at $15.8 (2007 dollars) million which incorporates construction of a Class B/C building and includes all off-site works, equipment and furnishings, site development (e.g. grading, parking, lighting), contingencies, fees and any required studies. The partnership component, complete with running/walking track will add a total of 25,616 square feet to the facility. KMHA - 3,717 sq. ft. additional sq. ft. WRBA - 5256 sq. ft. base building + 2012 sq. ft. mezzanines = 7268 sq. ft. Walking Track (both partners and the public use) 4615 square feet of building envelope, plus a walking track of 10,016 sq. ft. for a 4 lane track for a total of 14631 sq. ft. GROSS ACTUAL AREA FLOOR AREA PROGRAM Business Base Building KMHA BOXING WALKING TRACK Case - Jan. 2006 Rink 1 25,000 21,797 Rink 2 25,000 22,915 Rink 2 expansion 0 4,615 Mechanical Rooms 3,600 1,718 City Storage 3,000 634 Storage 634 KMHA Storage Room 1,500 Public Sp (lobby) 6,300 3,776 Offices - KMHA 0 2,132 Office (COK) 2,800 389 Grounds Keeper 0 68 PAGE 9 1 Dressing Rooms 16,700 16,700 GROSS ACTUAL AREA FLOOR AREA PROGRAM Business Base Building KMHA BOXING WALKING TRACK Case - Jan. 2006 Dressing Rooms 2,126 increase First Aid 131 Players Carr 2610 Retail 300 303 Ice Re-Surfacer 1,663 Boxing GFL 5,256 Public Washroom 869 2ND FLOOR Seati ng/Stands 6,400 5,990 Meeting Rms - COK 900 0 Running Track 10,016 Boxing Office 1,022 Boxing/Weight Rm 990 Upper Lobby 1,680 Public Washroom 792 Murray Fried Room 1,021 Concession 280 Public Space (2) 2,879 Event / Media 540 PAGE 10 Total 80,000 76,368 7,349 7,268 14,631 Project Description (Cont'd) Site Desian and Buildina Lavout The Twin Pad Arena Steering Committee recognizes the importance of appropriate site design as well as the relationship a recreational facility of this nature has with the surrounding neighbourhood. In this regard the local consulting firm GSP Group Inc. had been retained to complete a Site Plan and Connectivity Study detailing the location of the building on the subject site as well as the linkages to the surrounding area. (Appendix C and D) The Connectivity Study produced by the GSP Group in association with Paradigm Transportations Ltd. identified a number of important linkages that would be required to fully integrate the proposed arena site with the neighbourhood and the external arterial grid. A series of improvements to the local street network and pedestrian/cycling system aimed at integrating the site with the surrounding neighbourhood and transportation system are illustrated on the map in Appendix D and discussed in detail in Section 6 of the Connectivity Study which accompanies the Business Case as a separate document. As indicated earlier, the sports partners have worked closely with City staff as well as the project architect to ensure their spatial needs are met. Appendix E and F reflect the internal layout of both floors of the Twin Pad facility. Objectives The construction of additional space at the Hanson Avenue Twin Pad arena will allow the Kitchener Minor Hockey Association and the Waterloo Regional Boxing Academy to realize the following benefits to their organization: Kitchener Minor Hockey Association: · assist in meeting increased user demand due to population growth · consolidate administration offices and storage facilities under one roof that will allow the organization to maximize efficiencies · barrier free access will be available to staff and patrons of KMHA (not currently available) · current offices are substandard, subject to occasional business interruptions due to flooding and noise Waterloo Regional Boxing Academy · assist in the expansion of programs currently offered by the WRBA including programs geared towards tackling the issue of child obesity · current leased facility is substandard and in need of extensive repairs/ upgrades · The larger facility would allow WRBA the ability to host club shows. · construction of a new facility would allow the creation of an area able to suspend the heavy bags/ equipment · Would provide long term stability for a valuable Community asset. PAGE 11 Scope The scope of the Hanson Avenue Twin Pad Arena project includes the following: · full use of the former Hanson Avenue Snow Dump site subject to site plan conditions · incorporation of the site and building features and building class as prescribed in the original Twin Pad Arena Business Case document · integration of the building features developed for KMHA, WRBA and the community through the pre-design consultation process · Consideration and integration of the recommendations contained in the Neighbourhood Connectivity Study prepared by the GSP Group Inc. in August 2006. · Development of funding strategies and a fundraising program to integrate any increase in the project cost · Design and construction of the Hanson Avenue Twin Pad Arena as detailed in the projected timeline shown below Proiected Timeframe January 30, 2005 - Council approval of the Twin Pad Arena Business Case March, 2006 - Retain Architect and Construction Manager (advisory services) September, 2006 - Starting pre-design- drawings, "B Class" cost estimate and facility design options that incorporate the sports partners (info to Council) March, 2006 to Sept. 2006 - On-going discussions with stakeholder groups regarding project details December 2006 - Completion of detailed construction drawings and confirm fundraising targets January 2007 - Obtain final direction on facility arena design options February 2007 - Construction tenders March - April 2007 - Fundraising campaign launched April 2007 - Construction start May 2008 - Commissioning of building and fundraising commitments to be substantially completed June 2008 - Construction completion/ Occupancy Anticipated Outcomes The inclusion of the Kitchener Minor Hockey Association and the Waterloo Regional Boxing Academy within the Hanson Avenue Twin Pad Arena will have a number of anticipated outcomes. These include: · More efficient space for KMHA will allow for more effective administration of programs · Modern facility for KMHA - no business interruption, ample parking · Improved linkages between arena staff and KMHA as it relates to scheduling · Improved access for volunteers to KMHA staff and resources · Larger facility for WRBA will allow for expansion of programming · Larger facility will enable WRBA to host club shows bringing in additional revenues · The addition of partners to the Twin Pad Arena will generate recreational synergies within the facility as well as further enhance the recreational node created with the Twin Pad Arena and the Peter Hallman Ball yards. · Provide additional parking during tournaments at the Peter Hallman Ball yards · Providing organizational stability · Encouraging program growth involving more children who become active, healthy citizens · KMHA and their participants will be able to benefit through training programs set up through the WRBA. PAGE 12 The stakeholder component relates only to the component of the Hanson Avenue Twin Pad Arena associated with the potential partnerships with the Kitchener Minor Hockey Association and the Waterloo Regional Boxing Academy. Stakeholders: Overview of Business Requirements Primary - Internal City Council Partnership approval Potential budget approval Community Services Department Facility operation, Arena Staff maintenance Facilities Management Energy efficiency, structural and HV AC Maintenance Primary - External Kitchener Minor Hockey Primary facility occupant Association Waterloo Regional Boxing Primary facility occupant Academy Secondary - Internal Legal Agreements Human Resources Staffing / training Information Technology Computer connections, telephones Development and Technical Site Plan Approvals, Permits Services Operations Snow Removal Secondary - External School Board Access, Programming Police Access Ambulance Access General Public Programming, Fundraising, Support of site Local Businesses Fundraising KW Oktoberfest Inc. Potential for festival use Neighbourhood Programming input PAGE 13 Strategic Alignment Corporate Plan Alignment Goal Level of Impact Explanation Service First High In partnering with the Twin Pad Arena, the KMHA and WRBA are able to provide better/expanded services to the citizens of Kitchener and the region as a whole. Change and Improvement Medium The growing population would benefit from the expanded programming that would be offered through an opportunity of relocating to the Twin Pad Arena facility. Customer Focused High Creating partnerships within the Twin Pad Facility will allow the partners (KMHA, WRBA) the ability to service their user groups better, thereby, allowing better service to the community. Community and Business Medium Helps address the demands associated with new growth of Relations the City. Compass Kitchener Alignment Goal Level of Impact Explanation Together, we will build an Medium innovative, caring and vibrant Community recreation facilities provide a gathering Kitchener with safe and area which assists in creating and maintaining a thriving neighborhoods healthy and vibrant community. Community Spirit and Medium The addition of partners to the facility expands the Ownership amount of people throughout the community who will use the facility. In novative/Prog ressive/C reative Medium Looking at new technology to see if there are innovative ways of reducing energy needs. Leisure Facilities Master Plan Goal Level of Impact Explanation The provision of a balanced A partnership arrangement with KMHA and WRBA mix of leisure opportunities, would allow both organizations the ability to better involving recreation, arts, Medium provide their activities/services to the public. culture, minor sports, Additionally, the mixture of the two user groups within education and linked access to the facility would further the goal of providing a social, health and related balanced mix of leisure opportunities. services. Potential for linkages with St Mary's High School The provision of geographically dispersed The central location of the Hansen site allows the facilities to meet changing minor sports organizations to more efficiently provide market demands and Medium city wide programming. The location also promotes a population growth patterns, linkage with a high school and a nearby YMCA. while ensuring key linkages with neighbourhoods, district and city wide service requirements. PAGE 14 Healthy Communities Review 2006 Goal Level of Impact Explanation medium A multi-purpose Twin Pad Area will encourage use by Wide community participation a broader cross section of the community. Broad Involvement of all medium Working together, sharing information, expertise, sectors of the community resources to achieve goals. Natural synergies are created by having KMHA and WRBA located within the same facility. Creation of healthy public medium A healthy public policy creates a supportive policy environment that makes it easier for citizens to make healthy choices. Enhancing the operations by relocating at the new facility allows for the provision of expanded programming for the sports partners, thereby, servicing a larger sector of the community. Government Commitment medium Local governments playa key role in the support and encouragement of healthy communities. The encouragement of adding the sports partners to the Twin Pad facility reflect this commitment. PAGE 15 Project Risk Assessment Summarv The Twin Pad Arena Project represents a long-term commitment to providing the recreational services the citizens of Kitchener value and need. As with all projects, there are risks associated that must be considered. The risks to the City are identified and considered from two perspectives: A) proceeding with the partnership component of the project B) proceeding without the partnership component of the project The risk of proceeding with the partnership component can further be broken down into an additional two sections: A 1) Risk of proceeding with the partnerships with a running/walking track and, A2) Risk of proceeding with the partnership component without the running/walking track. Risk of Proceeding with Partnership Component of the Project Risk I Probability I Impact General Mitigation Strategy Project estimate/ construction High High . partnership fundraising costs exceed approved budget . revise design details and quality . request additional funds from Council Insufficient funds to complete Medium High . Increase fundraising target partnership components of the . Eliminate components or facility. size . Request additional funds from Council Fundraising target not met Medium High . Revisit sport group's long term funding commitment . Council subsidy Council not approving the High High . Revise design details required amount of additional . Increase fundraising target funds for the project PAGE 16 Risk of Proceeding Without the Partnership Component (Status Quo) Risk Probability Impact General Mitigation Strategy None Low Low - Frustrated Sports Partners High High Investigate alternate, less expensive opportunities Risk of Proceeding with RunninglWalking Track Component of the Project Risk Probability Impact General Mitigation Strategy Cost exceeds approved budget high high . Council grant . Remove running track from project Risk of Not Proceeding with RunninglWalking Track Component of the Project Risk Probability Impact General Mitigation Strategy User groups, community may medium low . Promote other be upset options PAGE 17 Section 6 Economic and Community Impact Analysis In January 2006 Kitchener City Council directed staff to proceed to the design/development phase of a new Twin Pad Arena at a preliminary budget estimate of $15.5 million. Subsequently, $300,000 was added for major roadway linkages making the total initial budget $15.8 million. The budget is summarized below. Hanson Avenue Twin Pad Arena Budget Summary (2007 Dollars) A) Committed (Reserved) Budget 1) Snow Dump Facility Replacement $604,000 2) Consulting Fees PBK Architect $966,000 Ball Bros. Construction Management 3) In-House Project Management Fee $111 ,000 4) Artwork Allocation $111 ,000 Sub-Total Part A $1,792,000 B) Working Budget 1) Studies & Process Fees $308,000 2) Building $10,100,000 Construction ($9.1 M) Design & Construction Contingencies ($1.0M) 3) Furnishing & Equipment $1,100,00 4) Site Development $1,900,000 Construction ($1 .7M) Design & Construction Contingencies ($0.2M) 5) Off-Site Development $600,000 Service Connections Hanson Avenue Entrance Improvements Homer Watson Access Upgrades Sub-Total Part B $14.008.00 Total Project Budget $15,800,000 PAGE 18 Economic & Community Impact Analysis (Cont'd) Partner Amenity Options Throughout the design phase of the Twin Pad Arena Project, in-depth consultation with the pubic and the sports partners occurred. Four options of various levels of additional amenities were identified and are outlined in the "Amenities Decision Matrix" on the following page. The matrix identifies the increase in arena size and projected costs as well as anticipated revenue and operating costs and a fundraising component. PAGE 19 Amenities Decision Matrix ARENA TOTAL APPROVED ESTIMATED FUNDING OPERj OPTION DESCRIPTION SIZE SQ. PROJECT BUDGET FUNDRAISING SHORTFALL RISKS COE FT. COST ($) CAPACITY ($) ($ ($) ($) 1 Twin Pad Arena 80,000 15.8 M 15.8 M n/a 0 Kitchener Minor 588,~ with basic Minor Hockey Association Hockey (KMHA) needs not amenities fully met and Waterloo (Approved Regional Boxing Business Case) Academy (WRBA) needs not addressed 2 Approved Twin 16.4 M 15.8 M 0.6 M 0 WRBA needs not Pad Arena + all 83,717 addressed, 601 ,~ KMHA needs fundraising not secu red 3 Approved Twin 90,985 17.5 M 15.8 M 1.7 M 0 Fundraising not 624,~ Pad + KMGA secu red needs + WRBA needs met 4 Approved Twin 105,616 19.7 M 15.8 M ? ? Fundraising not Pad, KMHA, secu red no allocated 633,~ WRBA + budget for track, no Running Track identified funding sou rce for track PAGE 20 Economic & Community Impact Analysis (Cont'd) Twin Ice Pad Sport Partners Fundraising Collaboration IMPACT OF OPTIONS ON FINANCE The Twin Ice Pad Project has several options, and depending on which "Option" is selected in the future, there will be a requirement for additional capital funding. The original model identified as Option 1, the 80,000 square foot base facility requires no additional external funding. The remaining three options require additional financial resources as follows: Options 2 and 3 -additional amenities to include Kitchener Minor Hockey Association (KMHA) and Waterloo Regional Boxing Academy (WRBA) will require additional revenue of $1.7 million Option 4 - the inclusion of a walking track will require an additional $2.2 million. The inclusion of all amenities for KMHA and WRBA as well as the walking track will require approximately $3.9 million. SPORT PARTNERS COLLABORATION The Sports Partners Collaboration has been pro-active in preparing for important financial resources for this community asset. (A) The Sports Partners Collaboration has initiated a Feasibility Study, engaging the professional services of Campaign Coaches (Glen Boy and Nigel Wallace) to determine, in a timely manner, a realistic and achievable fundraising goal. This "qualifying process" is currently underway, with a report anticipated by early December, in a timely manner for next step considerations for City Council. (B) The Sports Partners Collaboration has successfully recruited an experienced and competent volunteer campaign Chair Peter Benninger, who is enthused about his role and the project. (C) The Sports Partners Collaboration, under the leadership of Campaign Chair Peter Benninger is undertaking initial plans for a fundraising campaign: a. Drafting a volunteer Campaign Committee structure b. Recruiting appropriate community leaders to serve on the committee c. Drafting a fundraising model that provides adequate resources and support for success d. Preparing for initial feedback (October) of the Feasibility Study e. Compiling a list of project inventories that may be available for "naming rights" and "sponsorship opportunities" f. Determining appropriate "donations/gift" levels for successful achievement of a target g. Rationalizing a minimum $1.7 million dollar campaign h. Compiling a list of "potential donors" that can be determined as "key" to the success of the campaign i. Reviewing payment plans for multi-year gifts and impact on project j. Drafting campaign timelines, as impacted by the overall project, including opportunity for City Council to provide appropriate approval k. Other, as appropriate (D) Finalizing and confirming Sports Partners initial "pace-setter" donations for the campaign (estimated at $200,000 from each of the Sport Partners = $400,000) which is a significant "kick-start" to any campaign PAGE 21 Conclusions In January 2006, Kitchener City Council approved the business case for a new 80,000 square foot Twin Pad Arena to be located on Hanson Avenue. The total project budget for this facility is $15.8 million (2007 dollars). The business case further recommended that the City explore partnership opportunities with external stakeholders. During the early stages of the pre-design process, the Kitchener Minor Hockey Association and the Waterloo Regional Boxing Academy expressed interest in relocating their facilities to the centrally located Hanson Avenue Twin Pad Arena. Extensive meetings were held with the sports partners, City staff, the project architect and the construction manager to determine the increased floor space needs and funding requirements. During this process, the sports partners also identified a need for a public indoor walking track to allow their participants additional training opportunities. Interest in the walking track was also expressed at a public meeting held to solicit feedback on the design of the facility. Four potential arena options presented themselves through the pre-design and stakeholder meeting process and have been detailed in the matrix contained in Section 6. These options can be summarized as follows: Option 1 - 80,000 square foot Twin Pad Arena as defined in the original business case which would include a provision for the basic requirements of KMHA - $15.8 million. Option 2 - 83,717 square foot facility which would incorporate all of the KMHA needs and would require a fundraising commitment of approximately $600,000. Option 3 - 90,985 square foot facility which includes all of KMHA needs along with the WRBA facility. This would require a fundraising commitment of approximately $1.7 million. Option 4 - 105,616 square foot facility that includes meets the needs of the KMHA and WRBA and includes a walking track that would allow for a broader community use. This would require funding of an additional $2.2 million over and above the requirement of Option 3 or a total of $3.9 million in additional funds. In order to assist in their funding of their portion of the facility the sports partners have begun the process to develop a fundraising plan. They have engaged the services of John Thompson (retired CEO of United Way) to develop a plan and recruited Peter Benninger as volunteer chair for the campaign. The intent of the fundraising plan was to pay for the sport partner amenities over and above those costs outlined in the initial business case. Municipal arenas form an integral part of today's communities. They are multi-use year round recreational facilities that provide opportunities for an entire community. PAGE 22 Conclusion (Cont'd) Recom mendation That the sport partner business case for the new Hanson Ave. Twin Pad Arena as appended to CSD Report #06- 097 be accepted, and further; That PBK Architects be instructed to complete detailed construction drawings for a Twin Pad Arena on the Hanson Ave. site based on Option 3 at an additional architectural budget of $85,000 but that the other options be retained for further consideration pending the fundraising review, and further; That staff be directed to obtain the necessary site plan approvals and proceed to grading the site at a budget of $500,000, and further; That the sport partners, Kitchener Minor Hockey Association (KMHA) and Waterloo Region Boxing Academy (WRBA) undertake to qualify the fundraising capacity of the community and develop a fundraising plan with a goal of offsetting the additional incremental costs associated with the amenities over and above those outlined in the original business case and that such fundraising plan be subject to approval of Council, and further; That staff report back in January of 2007 outlining the results of the community fundraising capacity analysis and fundraising plan along with a final recommendation on which option should proceed to construction. PAGE 23 Appendix A Appendix B Appendix C Appendix D Appendix E Appendix F Appendix G List of Appendices Waterloo Regional Boxing Academy - Letter of Interest Kitchener Minor Hockey Association - Letter of Interest Site Plan Linkages Floor Plan - Level 1 Floor Plan - Level 2 Kitchener Minor Hockey Association - Letter of Interest 2 PAGE 24 City of Kitchener Sports Partners Fundraising Feasibility Study Executive Summary December 7, 2006 . ~~== Fundraising Feasibility Study Executive Summary INTRODUCTION The City of Kitchener Sports Partners retained Campaign Coaches to conduct a Fundraising Feasibility Study to hear the opinions and comments of community leaders, and to make recommendations regarding the ability to conduct a $4 million capital campaign to build a twin Ice pad / boxing facility/KMHA offices with possible walking track in Kitchener. The information and data for this study were collected through: 1. A thorough review of materials developed concerning the proposed project, and through several discussions with members of the committee of the City of Kitchener Sports Partners; 2. Personal interviews conducted with selected community and business leaders, and individuals associated with City of Kitchener Sports Partners. The interview list was prepared in cooperation with the Sports Partners committee. Packages were mailed to 63 names, identified on the original interview list, requesting that they participate in the interview process. During the course of the Fundraising Feasibility Study, 36 individuals were interviewed representing businesses, volunteers, local philanthropists and community leaders and user groups. Confidentiality of responses was emphasized to all interviewees. It was clearly stated that respondents' identities would not be revealed with respect to specific comments and opinions .~~= 2 Fundraising Feasibility Study Executive Summary FINDINGS Awareness · Generally, those interviewed acknowledged that additional ice time is needed in the City, particularly because of the growth factor, combined with ageing facilities that must be replaced. The addition of the Walking Track will enhance the appeal of the facility for a larger demographic. While the addition of ice and new facilities was the most appealing aspect to most, the idea of a "multi-use" facility for health, sports and activities for children was consistently emphasized rather than the campaign being solely positioned as a hockey/boxing project. Goal · There was a higher than usual percentage of people who were not convinced (not sure) the goal of $4 million was attainable. Those that felt it was achievable because the community has supported much larger campaigns in the past and because of the popularity of hockey, were still concerned that the large gifts needed would be hard to find. Most of the potential major gift prospects interviewed during the course of the study were either non-committal on the amount that they might donate, or the amount specified fell well below the required amount of lead gifts to successfully complete a campaign at the $4 million level. RECOMMENDATIONS 1. Explore and review the components of the overall facility and the projected costs. During the study it was often suggested that adding a public fitness centre would complement the planned components (twin ice pad, boxing academy, walking track, and community meeting rooms) positioning the facility as a multi-use centre. The broader the potential use of the facility the greater the public interest. The inclusion of more Sports Partners will broaden the fundraising/support base. 2. Review the case for support: · Clearly describe the components of the facility · Articulate a Vision for the facility and clarify whether other sport/health activities will take place in the facility · Provide a concise breakdown of the budget outlining the campaign goal and community investment · Provide more details on population growth and potential use of facility · Focus the case on the overall benefit to the community: quality of life, healthy lifestyle and family oriented. .~~= 3 Fundraising Feasibility Study Executive Summary 3. Send letter to study interviewees thanking them for their participation in the study and giving them an overview of findings and outcomes. 4. Based on the results of the interviews, Campaign Coaches recommends a campaign goal (with or without the track) be set at $2,000,000 with a pledge period of up to 5 years. 5. Create a position for a Campaign Manager who will manage the day-to-day activity of the capital campaign. 6. Conduct a leadership recruitment program immediately to identify, recruit and train the existing and additional volunteer leaders joining the campaign management team. A pragmatic approach to solidifying the campaign management team will pay dividends for the campaign. The recruitment of Sports Celebrities as Honorary Campaign Advisors will also greatly enhance the profile of the campaign. 7. Donor recognition is a very important part of establishing a fund raising campaign. All donations large or small should be recognized. Naming Opportunities (approved by the City of Kitchener) aligned with the major components of the project must be made available. These naming opportunities are used as a marketing tool to help elevate the donor's sights and as a permanent thank you for their commitment. Naming Opportunities help attract the crucial lead gifts. Corporations are often very interested in demonstrating their leadership in the community and heightening brand awareness through an affiliation with a prominent community project. .,' ,~r---- ;~l~ 580 Sugarbush Drive Waterloo, Ontario N2K 1Z8 4 TWINICEP ADFRPLANFinaI2.doc HANSON AVENUE TWIN ICE PAD PROJECT FUNDRAISING PLAN FOR SPORTS PARTNERS COMMITTEE Prepared on behalf of City of Kitchener Kitchener Minor Hockey Association Waterloo Regional Boxing Academy Co-ordinated by John Thompson - December 13,2006 1 IN D EX Cover Index Vision for the Twin Ice Pad Facility Purpose and Overview of the Fundraising Campaign Page 4 - Feasibility Study Page 5 - Campaign Policies Page 6 - 7 Fundraising Principles Donors' Rights Ethical Fundraising Practices Financial Accountability Campaign Timetable Campaign Structure and Roles Campaign Budget Page 1 0 - Donations Array Page 11 - 12 Role Description Page 13 - Divisional Goals and Objectives Page 14 - Summary and Keys to Success Page 1 - Page 2 - Page 3 - Page 8 - Page 9 - 2 HANSON AVENUE TWIN ICE PAD PROJECT (1) Vision for the Twin Ice Pad Facility Vision of the Hanson Avenue Twin Ice Pad Project "An inviting year-round community multi-sport and recreational facility, where people of all ages convene to play, compete and socialize." (2) Purpose and Overview of the Fundraising Campaign While the original concept of the Twin Ice Pad was to add two arena pads, collaboration between the City and two sports partners - KMHA and WRBA - has enhanced the project, with the addition of a walking track, boxing facility and hockey administration offices and storage space. The total cost of the enhancements is approximately $4.0 million, and accordingly a fundraising campaign will be required to provide additional dollars for the added value to the project. The two sports partners are guaranteeing, through a community-wide fundraising campaign, financial commitments of $400,000. 3 (3) Feasibility Study A Feasibility Study report, supplied by Campaign Coaches, providing a review of and feedback from key prospects, and evaluation of the content, provides the following recommendations for a fundraising campaign: 1. Explore and review the components of the overall facility and the projected costs - the broader the potential use of the facility, the greater the public interest. 2. Review the "Case for Support" - to be undertaken as part of the Fundraising Campaign vision, strategy, communications and marketing. 3. Send letter to study interviewees - this is currently underway. 4. Establish a campaign goal of $2,000,000 with a pledge period of up to five years - this has been incorporated into the Fundraising Plan. 5. Create a position of Campaign Manager - who will manage the day-to-day activity of the capital campaign - this is being considered for the Fundraising Campaign and has been included in the budget. 6. Conduct a leadership recruitment program - to identify, recruit and train the existing and additional volunteer leaders joining the campaign management team. The recruitment of Sports Celebrities as Honorary Campaign Advisors will greatly enhance the profile of the campaign. 7. Donor Recognition and Naming Opportunities (subject to City of Kitchener Council approval is a very important part of establishing a fundraising campaign. The "Naming Opportunities" must be made available, to be used as a marketing tool to help elevate the donors' sights and as a permanent thank you for their commitments. Naming Opportunities help attract the crucial "Lead Gifts". Corporations are often interested in demonstrating their leadership in the community and heightening brand awareness through an affiliation with a prominent community project. Note - The Fundraising Feasibility Study did not identify any major "naming rights" donors. Some potential funders, who have the capacity to be "naming rights" donors, were not willing to reveal that level of commitment at this early stage (see Executive Summary from Campaign Coaches). Naming rights (subject to City of Kitchener Council approval) will be considered as part of the Campaign Cabinet's strategy for fundraising. A list of Project Inventory to be used as part of a Naming Rights fundraising strategy includes: the entire facility/complex; both rinks, the boxing facility and the walking track; the lobby and lounge areas; various rooms, including meeting rooms, dressing rooms, referees' room, convenor's room, cardio/training room and club room; green roof; equipment such as the zambonis, marquee, clocks/scoreboards and display cases; exterior marquee and landscaping/park area. Donor recognition can also be displayed on a donors' wall, seats, floor tiles, memorial trees, etc. 4 (4) Campaign Policies Campaign policies to ensure prudence, transparency and accountability of the fundraising initiative include: Leadership 1. The Campaign Chair shall serve as Chair of the Campaign Cabinet, over-see the campaign, appoint all Division Chairs, and in general have responsibility for the implementation of the campaign (in collaboration with fundraising counsel and campaign manager). 2. The Campaign Cabinet will undertake a community-wide public campaign to obtain pledges payable over a three-five year period. 3. The Campaign Cabinet shall meet regularly, at the call of the chair, to address plans, issues, strategies and responsibilities during the course of the campaign. As appropriate, an executive Committee may be appointed, to make decisions between meetings of the Cabinet. Finance 4. A Treasurer shall be appointed to verify the receipt of all pledges and payments recorded during the campaign. The Treasurer shall implement a system for depositing of money and record-keeping of pledges and payments. A separate account shall be established to accept payments in the name of the campaign. 5. All volunteers will be provided an opportunity, and encouraged to respond positively, to make a personal and/or appropriate corporate gift appropriate or proportionate to their ability, prior to soliciting others. 6. All funds received during the campaign, and not specifically designated for other purposes, shall be credited toward the campaign objective. 7. Assuming that sponsorships / naming opportunities will be available, the Campaign Committee shall accept commemorative pledges under such terms and conditions as it may determine. 8. Gifts of real or personal property, including securities, shall be accepted by the Campaign Committee, and receipts shall be issued for the Fair Market Value on the date of transfer. Administration 9. All pledges and donations shall be processed within three days of being received in the Campaign office and acknowledged by a personal letter and appropriate receipt to the donor. 1 o. Pledge cards shall be retained in an appropriately organized and confidential file in the Campaign Office. 5 (5) Fundraising Principles These fundraising principles shall serve as the foundation for campaign operations: (i) Donors' Riahts 1. The right to receive a thank you acknowledgement and receipt for the amount paid each year. 2. The right for details of the project (Hanson Avenue Twin Ice Pad Campaign) and the purpose for which the funds are requested (construction of Twin Ice Pad facility), and will include contact information and address (website, as well). 3. The right to be provided with the Financial Budget for the project; a list of the project's governing body members (Building and Fundraising Committee) and the Ethical Fundraising and Financial Accountability Guide. 4. The right to know, upon request, whether an individual soliciting funds on behalf of the charity is a volunteer, an employee or a hired solicitor. 5. The right to be encouraged to seek independent advice if the fundraising campaign has any reason to believe that a proposed gift might significantly affect the donor's financial position, taxable income or relationship with family members. 6. The right to remain anonymous will be respected. 7. The right for privacy. Any donor records that are maintained by the fundraising team will be kept confidential to the greatest extent possible. Donors have the right to see their own donor record and to challenge its accuracy. 8. The right to be excluded from a list if the fundraising campaign team exchanges, rents or otherwise shares its fundraising list with other organizations. 9. The right to be treated with respect. Every effort will be made to honour their requests to limit the frequency of solicitations; not be solicited by telephone or other technology; receive printed material concerning the fundraising project. 10. The right to ask questions and to expect prompt, truthful and complete answers in an easy-to-understand manner. The project team will respond promptly to any complaint by a donor or prospective donor about any matter that is addressed in the Ethical Fundraising and Financial Accountability Code. 6 (ii) Ethical Fundraisina Practices 1 . Fundraising solicitations on behalf of the project will 'Y Be truthfu I 'Y Accurately describe the project's objectives and the intended use of donated fu nds 'Y Respect the dignity and privacy of those who benefit from the project's charity's activities 2. Volunteers, employees or hired solicitors who solicit or receive funds on behalf of the charity shall: 'Y Adhere to the provisions of the Ethical Fundraising and Financial Accountability Code 'Y Act with fairness, integrity and in accordance with all applicable laws 'Y Adhere to the provisions of applicable professional codes of ethics, standards of practice etc. 'Y Cease solicitation of a prospective donor who identifies the solicitation as harassment or undue pressure 'Y Disclose immediately to the fundraising team any actual or apparent conflict of interest 'Y Not accept donations for purposes that are inconsistent with the project's objects or mission (iii) Financial Accountabilitv 1 . The project's financial affairs will be conducted in a responsible manner, consistent with the ethical obligations of stewardship and the legal requirements of provincial and federal regulations 2. All restricted or designated donations will be used for the purposes for which they are given. If necessary due to project or organizational changes, alternative uses will be discussed where possible with the donor. If no agreement can be reached with the donor about alternate uses for a restricted or designated donation, the project will return the unexpended portion of the donation/ 3. Financial reports will be factual and accurate in all material aspects, including disclosing the total amount of fundraising revenues (receipted and non-receipted), the total amount of fundraising expenses, and identify government grants and contributions separately from other donations. 4. No more will be spent on administration and fundraising than is required to ensure effective management and fundraising. In any event, the fundraising campaign will meet or exceed Canada Revenue Agency's requirement for expenditures on charitable activities (In general, section #149.1 of the Income tax act requires all charities to spend a least 800/0 of their receipted donations on charitable/project's activities. 7 (6) Campaign Timetable Collaboration with the Project (Construction) Management team is important. The following draft timetable suggests a two-part campaign: 'Y Campaign Feasibility - September - December 2006 (completed) 'Y Campaign Readiness - January - March 2007 (in progress) 'Y Advance/Corporate Campaign - April- September 2007 (to raise 65-800k) (Includes summer hiatus) 'Y Community Campaign - September - December 2007 (to raise 20-300k) 'Y Campaign Wrap-up and Celebration - January - March 2008 (to raise 0- 100k) Detailed Timetable September - December 2006 - Campaign Feasibility By December 4 - Feasibility Study Report presented (completed) By December 15 - Fundraising Plan finalized as part of Business Case January-March 2007 - Campaign Readiness By January 16/07 - Final Council approval of project (in progress) By February 15/07 - Recruit Senior campaign volunteers By March 1/07 - All Senior volunteers oriented/trained Drafts of campaign materials By March 15/07 - Divisional goals and targeted donors finalized Final structure confirmed; All volunteers recruited, oriented/trained Campaign materials finalized/approved April- September 2007 - Pacesetter / Corporate Campaign April - May - June - All corporate and organizational calls undertaken July - August - summer hiatus September - End of Lead, Major and Corporate portions of the campaign September - December 2007 - Community Campaign By September 15/07 - Public Campaign launched, including special event(s) September-October-November - small business and general public campaign By November 30/07- End of Public Campaign January - March 2008 - Wrap-up Campaign January - February 2008 - Follow-up and final phases of campaign By March 31/08 - Celebrate success of total $2 million campaign 8 (7) Campaign Structure and Roles Recruitment of volunteers and appointment of professional fundraising counsel and/or staff, as well as administrative support for the duration of the campaign shall be confirmed during the Campaign Readiness period. The accompanying "Draft" Campaign Structure will serve as the Organizational Chart for the Campaign. The Campaign Chair will assume responsibility for recruiting appropriate Chairs for each of the Divisions and Sub-Committees. The recommended Campaign Divisions from the Feasibility Study are: · Business & Industry - (Manufacturing, High-Tech, Small Business, Professionals & Suppliers) · Personal Gifts · KMHA family · WRBA family · Foundations and Government · Services Clubs and Community Organizations · Public Awareness and Communications (non fund-raising division) These recommendations will be considered when finalizing the attached "Draft" Organizational Chart. (8) Campaign Budget - The campaign requires an Operating Budget that will be included in the fundraising campaign. The "net" fundraising dollars are clearly targeted to the building of the facility. (i) Expenditure Budget Capital Funds required Fund raisi ng/ ad m i n istration CAMPAIGN GOAL $1 ,750,000 250~000 $2,000,000 (ii) Fundraising/ Admin Budget Feasibility and pre-campaign - (completed) Fundraising Campaign Counsel - 8 month contract + expenses Campaign Manager - approximately 60 weeks Professional services - naming rights expertise Administration Marketing Promotional materials Donor Recognition Campaign events, donor cultivation, meetings, etc. Allowance for pledge loss Other TOTAL 9 $35,000 $50,000 $60,000 $30,000 $1 0,000 $1 0,000 $1 0,000 $1 0,000 $15,000 $1 0,000 $1 O~OOO $250,000 (9) Donations Array Fundraising campaigns are successful as a result of donations of various sizes - from Lead Gifts (large) to a multitude of smaller donations from the community at large. Projected Donation Targets will be assigned to each of the Fundraising Divisions with the Campaign Structure. Draft budget figures have been assigned and will be confirmed by the Campaign Cabinet prior to the fundraising campaign launch. Certain standards of giving are considered basic requirements to successfully achieve a campaign goal. Generally accepted campaign guidelines include (numbers rounded for convenience) : · Largest donations should equal 1 00/0 of the campaign goal, which would be $200,000 · The next two donations should equal 50/0 of the campaign goal, which is $1 00,000 · The largest ten donations should equal 30-400/0 of the campaign goal, which is in a range of $600,000 to $800,000 · The 80/20 rule - 200/0 of the donors will provide 800/0 of the campaign goal ($1 ,600,000) PROPOSED DONATION ARRAY - $2,000,000 campaign: ADVANCE CORPORATE CAMPAIGN - April - September 2007 Donation Range Estimated Estimated Ok of Goal Cumulative Total No. of Gifts Amount Lead Gifts $200,000 + 2 $400,000 200/0 $400,000 - 200/0 $1 00,000 - $199,000 2 $200,000 1 00/0 $600,000 - 300/0 $50,000 - $ 99,999 6 $300,000 150/0 $900,000 - 450/0 Major Gifts $25,000 - $ 49,999 10 $250,000 12.50/0 $1 ,150,000 - 57.50/0 $1 0,000 - $ 24,999 30 $300,000 150/0 $1 ,450,000 - 72.50/0 $ 5,000 - $ 9,999 40 $200,000 1 00/0 $1 ,650,000 - 82.50/0 $ 2,500 - $ 4,999 50 $125,000 6.250/0 $1,775,000 - 88.750/0 PUBLIC CAMPAIGN - September - November 2007 Community Gifts $ 1 ,000 - $2,499 100 $1 00,000 50/0 $1,875,000 - 93.750/0 $ 500 - $ 999 150 $ 75,000 3.750/0 $1,950,000 - 97.50/0 Less than $500 Many $ 50,000 2.50/0 $2,000,000 - 1000k 10 (10) Role Description Roles/responsibilities between volunteers and staff will be clearly articulated. The following is a sample Role Description, with similar descriptions to be available for all senior positions on the Campaign Cabinet, as well as for all volunteers and appointed staff: POSITION - Chair - Lead Gifts REPORTS TO - Campaign Chair SUMMARY DESCRIPTION - Serving as the principal volunteer of the Lead Gifts Division, this individual will provide purposeful leadership in the Lead Gifts Division in identifying, evaluating, cultivating and soliciting gift-level prospects at a minimum of $25,000. QUALIFICATIONS AND SKILLS 1. Possess natural leadership abilities and qualities. 2. A "self-starter" type of person who will maintain personal activity and will encourage members of the Lead Gifts Committee to do so. 3. Preferably, a prominent community citizen who has had experience in giving and seeking Lead Gifts for various causes. 4. Has knowledge of the sources of wealth including families, individuals, corporations businesses and foundations etc., is comfortable approaching these prospects for significant gifts and has access to others noted for their community support and philanthropy. 5. Fully committed to the Twin Ice Pad project and understands the needs and opportunities of the campaign. 6. A person who will be personally challenged by the opportunity to request six-figure gifts and find satisfaction in the process of cultivation and motivating others to give. 7. Leads by example, providing a corporate or personal pledge that is appropriate to his/her financial ability. RESPONSIBILITIES 1. Working closely with the Campaign Chair and Fundraising Counsel, takes a leadership role in recruiting a Lead Gifts Committee, striving to recruit persons capable and likely to give a Lead Gift. 2. Actively searches, evaluates, cultivates and solicits Lead Gift prospects. 3. Serves as an integral member of the Campaign Cabinet, attending meetings, reporting on Lead Gift activity and contributing to planning and strategizing discussions. 11 4. Convenes meetings of the Lead Gifts Committee for purposes of organization, prospect search and evaluation, assignment, and reporting. 5. Ensures that all Lead Gift Committee members are properly trained by the Campaign Counsel in the best and preferred methods of solicitation. 6. Communicates frequently with members of the Lead Gifts Committee, encouraging activity and reporting. 7. Sets a good example for Committee members through interest, commitment and action. 8. Makes a personal or corporate pledge to the campaign which is thoughtful and appropriate to his/her financial ability. TIME REQUIREMENTS - Lead Gift activity is generally conducted early in the campaign process and continues until all Lead Gift decisions have concluded, plus follow-up as a valued member of the Cabinet. 12 (11) Divisional Goals and Objectives Targeted donors (prospecting) to be divided into Fundraising Divisions, and each division will undertake a review of fundraising potential, resources required, and a business plan for success. The Divisions, as identified in the "Draft" Organizational Chart, include: (i) ADVANCE / CORPORATE CAMPAIGN - (65 - 800k in April - September 2007) Lead Gifts - 20-300/0 - $400,000 - $600,000 donors from business and industry that are crucial to campaign success Industry and Business - 15-200/0 - $300,000 - $400,000 largest employers in the community; high-tech Foundations and Government - 50/0 - 100/0 - $100,000 - $200,000 User Groups - 20 - 250/0 - $400,000 - $500,000 - (KMHA, WRBA and others); Service Clubs - 50/0 -100/0 - $100,000 - $200,000 (ii) PUBLIC CAMPAIGN - (20 - 350k in September to December 2007) Medium-Small Business - 100/0- 150/0 - $200,000 - $300,000 Businesses within the community that are not included in Advance Campaign General Community -100/0-150/0 - $200,000- $300,000 (individuals, small donors, special events) (iii) WRAP-UP CAMPAIGN - (0-100k in January - March 2008) Outstanding and tardy accounts GRAND TOTAL - 1000k - $2,000,000+ 13 (12) Summary - Keys to Success Summary of components that are keys to success: 1. Explore and review the components of the overall facility. 2. Review the "Case for Support". 3. Naming Opportunities - determine appropriate inventory of sponsorship/naming opportunities aligned with the major components of the project, and obtain approval from City of Kitchener Council. 4. Establish a campaign goal of $2,000,000 with a pledge period of up to five years. 5. Establish, recruit and appoint appropriate professional resources - Campaign Counsel, Campaign Manager, Naming/Sponsorships expertise, administrative support. 6. Recruit appropriate volunteers for Campaign Cabinet -recruit and train the existing and additional volunteer leaders joining the campaign management team, as well as Honorary Campaign Advisors. 14 Hanson Avenue Twin Ice Pad Project Fundraising Cabinet - Organizational Chart Draft #2 - December 13, 2006 TWIN PAD WALKING TRACK FEASIBILITY STUDY CITY OF KITCHENER Version 1.2 November, 2006 TABLE OF CONTENTS CITY OF KITCHENER -TWIN PAD WALKING TRACK FEASIBILITY STUDY 1.0 INTR 0 D U C TI 0 N ....................................................................................................................... .1-1 2.0 WALKING/JOGGING FA CILITIES .......................................................................................2-1 2. 1 W ate r 100 R e gi 0 n ........................................................................................................................ 2-1 .1 Waterloo Recreation Centre....................................................................................................... 2-1 .2 Fairview Mall/Kitchener Memorial Auditorium - Happy Walkers........................................... 2-4 .3 Conestogo Mall.......................................................................................................................... 2-4 .4 S tanl e y P ark Mall....................................................................................................................... 2 - 5 .5 Ki tchener - Waterloo yMCA....................................................................................................... 2- 5 . 6 C am b ri d geM all ......................................................................................................................... 2 - 6 . 7 RIM Par k. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 - 6 .8 Related Facilities.................................................................................................................... ....2-7 .9 Summary .............................................................................................................................. . . . . . . 2- 7 2.2 Other Walking Facilities Experiences........................................................................................ 2-7 .1 Goderi ch -Huron YMCA ............................................................................................................ 2- 7 .2 Town of Orangeville .................................................................................................................. 2-9 3.0 WALKING GROUPS, COMMUNITY AND STAFF CONSULTATION .............................3-1 3. 1 Hap p y Walker s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-1 3.2 Happy Hoofer/Resoles............................................................................................................... 3 - 5 3.3 S tanl ey Park Walkers................................................................................................................. 3-6 3.4 Communi ty Sports Group s. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 - 7 3.5 Millennium Walkers (RIM Park) ............................................................................................... 3-9 3.6 M.A.C.K.S. Representative and Community Advocate...........................................................3-11 3. 7 Department Staff...................................................................................................................... 3 -12 3 . 8 Summary .............................................................................................................................. . . . . 3 -16 4.0 4.1 .1 .2 .3 .4 .5 .6 .7 .8 .9 4.2 .1 .2 .3 .4 .5 .6 5.0 5.1 5.2 5.3 5.4 5.5 5.6 5.7 6.0 6.1 6.2 6.3 .1 .2 .3 .4 6.4 TRENDS AND DEM OG RA G HI C REVIEW ...........................................................................4-1 Trends .............................................................................................................................. . . . . . . . . . . 4-1 Aging Population.................................................................................................................... ...4-1 W alkin g A c ti vi ti e s ..................................................................................................................... 4 - 2 M ul ti -Us e Fa c ili ti e s ................................................................................................................... 4 - 2 Sports Training and Development............................................................................................. 4- 3 Finan cial Acces si bili ty ............................................................................................................... 4- 3 In c I u si v e n e s s .............................................................................................................................. 4-4 Specialized Programming.......................................................................................................... 4-4 Recreati on F acili ty Quality ........................................................................................................ 4- 5 S p e c i ali zed Fa c i Ii ti e s ................................................................................................................. 4 - 5 Population Demographics and Community Profile................................................................... 4-6 In tr 0 d u c ti 0 n . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 - 6 Current and Historic Population................................................................................................ 4-6 Forecasted Population................................................................................................................ 4-7 Demographic Characteristics..................................................................................................... 4-8 Community Development.......................................................................................................... 4-8 Summary .............................................................................................................................. . . . . 4 -12 SITU A TI 0 N AL ASSESSMENT ................................................................................................5-1 Current Assessment................................................................................................................... 5-1 Po Ii cy, De si gn and Mana g eme n t P ers pecti ve s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 - 3 FIT Perspective................................................................................................................... . . . . . . .5-4 Rev e n u e Per s p e c ti ve .................................................................................................................. 5 - 5 Operating Models....................................................................................................................... 5 - 5 Demo graphics...................................................................................................................... ......5 - 5 Summary .............................................................................................................................. . . . . . . 5 -6 S TRA TEG I C DEVELOPMENT ALTERN A TIVES ............................................................... 6-1 Pro and Con Alternatives........................................................................................................... 6-1 Feasibility As ses smen t Concl usi on. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .6- 3 Strategic Development Alternatives.......................................................................................... 6-5 In tr 0 d u c ti 0 n . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 - 5 Do Not In vest in a Walking Track............................................................................................. 6-5 Deferral to the South Kitchener District Community Centre..................................................... 6-7 Proceed With the Twin Pad Arena Walking Track.................................................................... 6-9 Recommendations............................................................................................................... .....6-10 1.0 INTRODUCTION Since 2005, the City of Kitchener has been planning the development of a new twin pad facility in South Kitchener, located close to the intersection of Block Line Road and Homer Watson Boulevard. The facility will incorporate a twin pad arena, some meeting and related community spaces, as well as a dedicated Kitchener- Waterloo Boxing Club facility. In the course of discussions with the Boxing Club and Kitchener Minor Hockey Association, and as identified at some public meetings held on the design of the new facility, questions have emerged as to whether a walking track should be considered for the facility. References in support of such a facility were identified as the fact that one exists at the Waterloo Recreation Centre, some athletic groups could use the walking track for cardiovascular on and off-season training and related to the importance walking has as a fitness activity, particularly related to creating walking opportunities during inclement weather, the heat of the summer or the cold of the winter. As part of the design process, the City of Kitchener retained F. J. Galloway Associates, Inc. of London, Ontario to undertake a Feasibility Assessment of a walking track component for the new twin pad arena. The work program involved the following: · Focus groups and interviews with mall walkers and seniors organizations and individuals. · Staff input. · Assessment of the walking facilities within the Waterloo region and other locations. · Trends and utilization assessments. · Input from community-based organized sports groups. The Feasibility Study examined the demand considerations and profiles, potential revenue income, similar currently available walking/running facilities and related considerations. Currently, the walking track component of the twin pad project could involve 10,000 square feet for the track and an additional 5,000 square feet within the building envelope of support. The project has the potential to cost, on a preliminary basis, between $2.2 million and $2.5 million dollars. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 1-1 This document represents the Final Feasibility Report on a walking track for Kitchener's new twin pad arena. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 1-2 2.0 WALKING/JOGGING FACILITIES 2.1 Waterloo Region The following facilities were identified as having walking/jogging programs or similar opportunities on an informal or formal basis related to a building in the Waterloo Region. .1 Waterloo Recreation Centre This facility has an indoor track circling the back of the seats in the arena bowl area. It is a four-lane rubberized track (Tuflex) over a distance of 220 metres. The lane distances are approximately four laps to a mile. The venue hosts social walkers as they are identified, as well as joggers and track and field clubs/athletes. Amenities include change rooms and a food court area. Also, spikes up to .5 mm are allowed. It is a shared use track between walkers, joggers and runners with lanes designated for various uses. Other key operational considerations are as follows: · No walking more than two abreast. · Individuals pushing strollers must remain in a single file. · Inline skating is not permitted. · Wearing of perfumes and colognes is not to be undertaken. · A track schedule is produced for the November 1 to March 31 period. · A donation box is located in the skater's lobby, which is out of the way, but a more secure site. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 2-1 Three types of identified use exist: · Recreational use - free. · Recreational use - $2.75 per person. · Youth training. Recreational use - free - is available as follows: · Monday to Thursday 6:00 a.m. to 5:00 p.m. and 8:00 p.m. to 11 :00 p.m. · Friday 6:00 a.m. to 11:00 p.m. · Saturday and Sunday 6:00 a.m. to 8:30 a.m. and 8:00 p.m. to 11 :00 p.m. Recreational use - $2.75 per person - occurs as follows: · Saturday 8:30 a.m. to 8:00 p.m. · Sunday 8:30 a.m. to 8:00 p.m. Youth and related training activities - occur as follows: · Monday to Thursday 5:00 p.m. to 8:00 p.m. · Friday within a shared use schedule. · Saturday and Sunday within a shared use program if a coach is present. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 2-2 In discussions with the operators of the facility, the following utilization levels were identified: · Monday to Friday early morning - seniors and other social walkers · 10:00 a.m. to 5:00 p.m. is the peak time with up to 150 to 200 walkers at anyone time, which is a mix of seniors, adults, university students, young mothers, etc. · Up to ten different clubs, including four track and field clubs, use the facility between 5:00 p.m. and 8:00 p.m. from November through to April. They're training activities occur outdoors for the other months. · Later evening, 8:00 p.m. to 11 :00 p.m., involves primarily adult fitness walkers and runners. From a revenue perspective, the following points were identified: · Revenues are only collected from the November through to April period for any of the programs. · Total revenue generation is less than $10,000 a year, of which approximately $2,500 is from club usage at $500 a month. Approximately $1,500 to $2,000 per year comes from the donation box. The rest of the revenue is from the Saturday-Sunday $2.75 admissions or the Participasses which are sold in 10,25 and 50 unit blocks with unit prices of $1.00 through to approximately $2.00 per visit. · Paid programs have just been initiated. The first program is StrollerFit, which is $2.75 per visit for new mothers, which is offered over a period of weeks with an outside paid instructor. Utilization levels were seen to be very high throughout the week and over the year. However, no tracking of data relative to utilization is completed. On of the major reasons seen for the high utilization levels is the proximity of Luther Valley Home, as well as from the large condominium complexes located in the immediate area, as well as the Centre's proximity to the universities. The facility was operated free to users from the start. Any transition to a paid entry for use of the facility is seen as very challenging. The advice given was that if revenue is desired, then a user fee should be implemented from start-up, as conversion is a significant issue. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 2-3 Operational conflicts do exist on the track, but are not a major issue. The conflicts are between runners and seniors/social walkers. During club use and at other peak times, track monitors are used which cost approximately $3,000 or more per year .2 Fairview Mall/Kitchener Memorial Auditorium - Happy Walkers The Happy Walkers is an informal social walking group that is supported by the City of Kitchener. Materials are available through the seniors' centres at Rockway, Downtown and Breithaupt. The group is led by a volunteer coordinator who works with City staff. The group had been using Fairview Mall for fifteen years. However, due to the ongoing reconstruction, they have been relocated to the Kitchener Memorial Auditorium Complex and walk on the second floor. The group has been told that they can return to Fairview Mall in September 2007. Fairview Mall does not provide any organized programs or supports. The group uses the mall from 7:00 a.m. to approximately 9:30 a.m., after which time walking becomes complicated when the shoppers enter the facility. The key amenities and one concern are: · A food court for after walk socialization. · Extensive free parking. · Ease of access with the floor on grade. · Post-walking shopping opportunities. · Excellent visual stimulation · An excellent walking circuit. · The floor is a hard surface, which is a negative. .3 Conestogo Mall An active group of approximately 200 individuals uses Conestogo Mall. This group has a club orientation in that individuals pay $1.00 a walk to the club. These funds are used for a summer and winter party/Christmas party. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 2-4 The amenities available are: · Food court. · Good parking and access. · A reasonable circuit, though it is not circular. · The club also tracks the distances walked and has an award system based on key targets. · Excellent visual stimulation. .4 Stanley Park Mall Stanley Park Mall, up until its most recent design change, was a popular mall walking location. However, the new design does not support walking very well due to the "H" design. There are a lot of turns, corners, etc. It is understood that the mall walking component has decreased substantially since the redesign, though mall administrator has made some contact with individuals in other walking clubs to see if it can be restored. .5 Kitchener-Waterloo YMCA The Kitchener-Waterloo YMCA has a walking/running track at the Courtland Ave. location. It is three lanes with banked corners to facilitate runners. Based on comments provided by walkers and City staff, a series of issues prevail: · Requires a membership fee or day pass to utilize the facility, which is seen as expensive by many. · Considerable conflicts between walkers and joggers which tends to discourage use by older adults. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 2-5 It would appear that the perception of the facility is more as a running/jogging track within an organized fitness regime. Some of the other key user constraints are: · Cannot walk more than one abreast. · Passing is difficult for walkers when runners are going by. · No strollers, wheelchairs or related supports are allowed. .6 Cambridge Mall Cambridge Mallon Franklin Road in Cambridge has a walking group. It operates similar to the Fairview Mall group with the focus on the 7:00 a.m. to 9:30 a.m., Monday to Friday activity. It can attract up to 100 individuals in a morning and supports approximately 500 people. The key amenities are: · A food court. · A reasonable walking circuit. · Extensive free parking and good access. · Excellent visual stimulation. .7 RIM Park RIM Park, relative to the facility area, supports informal walking activity within the building using the building's corridor system. It has the following amenities: · Significant parking and good access. · A good walking circuit when not crowded. · A small food court. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 2-6 The use of this facility is informal-based when the building is open with a specialized group of Cardiac- Rehab/Stroke users. .8 Related Facilities The Stanley Park Community Centre has an outdoor walking circuit adjacent to the facility and linked to the City's trail system. Also, gymnasiums are used from time to time at various community centres and schools for indoor walking activity using pylons to outline an indoor walking circuit, such as at the Stanley Park Community Centre. .9 Summary In terms of facilities, the indoor social walking activity is principally centered on retail malls, at Fairview, Conestogo and Cambridge. In addition, there is one major, higher end multi-use facility at the Waterloo Recreation Centre with a rubberized floor. The retail mall locations had the following characteristics: · Primarily seniors-oriented users/social walkers. · Walking activity only, no running. · Use focus is Monday to Friday from 7:00 a.m. to 9:30 a.m. The Waterloo Recreation Centre is a more specialized facility that supports social walkers, joggers and runners and track athletes. The YMCA facility is oriented towards its membership group and has a stronger focus on the jogging and running. RIM Park uses corridors, but does have a Cardio-Rehab specialty. 2.2 Other Walking Facilities Experiences .1 Goderich-Huron YMCA In 2005, the Town of Goderich and the Sarnia YMCA opened the new Goderich-Huron YMCA in the Town of Goderich. This is a partnership that brings under YMCA management an arena with 2,200 seats, a walking track in the arena, an indoor swimming pool, a fitness centre, a gymnasium, meeting rooms and other amenities. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 2-7 The walking track is two lanes with the following characteristics: · One lane is for walking and one lane is for jogging. · A vailable the complete time the building is open to the public. · Have an average of approximately 100+ individual users per day. · Users are required to be a YMCA member or to pay a $5.25 day pass. If one were to walk two to three times per week, the day pass cost would be higher than a YMCA membership. · Individuals for the same fee, can alternate walking with skating when the ice is open during the daytime hours. · Have a designated family time on Sunday afternoons, which is the only scheduled use. The key considerations around the operation of the facility are as follows: · Has brought in many users who would not normally have used the building for the other activities. · Use is expanding to attracting youth sports groups wanting a warm-up and/or cardiovascular training area. · Heaviest use is from October to March, though summer gets significant use as the summer ice cools the facility and provides relief from the outdoor heat. The general sense is that use is growing, a lot of which is associated with the YMCA fitness component. The facility is popular in the community. There has also been few conflicts between runners and joggers. The biggest single conflict has been over the loudness of the music involving the figure skating club. The Executive Director indicated that this was not a major concern and only a couple of people have expressed an opinion. There is no other alternate indoor walking facility in the area, though the South Coast Mall, which is directly adjacent to this facility, has had some limited walking activity in the past. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 2-8 .2 Town of Orangeville The Town of Orangeville has opened an expanded recreation complex that involves a twin pad arena, an indoor pool and a walking track. The walking track is two lanes wide within a 6 foot 6 inch space that is 3.9 metres high. The total cost for this component was $256,000 in 2003. This facility would be similar to the Kitchener twin pad in that there are few seats in the arena and it is close to the edge of the ice surface. The walking track is thirteen feet above the ice surface, but almost directly over the boards. The following characteristics prevail for this facility: · 600 to 1,000 users per month, with higher usage in the winter ranging in the 2,000+ level. · There is a $1.00 charge for use via an Honour Box which is not monitored. It is anticipated that the number of people paying has probably diminished since the opening. The venue is putting in a counter and door control system in the future. · One lane is for walking and one lane is for jogging. They operate opposite to each other so as to give visual connectivity. · Staff monitor the door to the area during tournaments in order to limit conflicts with people standing on the track to watch games. · The program schedule has times for the following groups: o Those with strollers o Walkers o Runners o Teams who wish dry land training CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 2-9 · There is netting all the way around so that pucks do not infringe on the area. · The seniors love the walking track because of the security of the building and the fact that they are out of the weather in the wintertime, but enjoy the coolness in the summer. Few conflicts have occurred. The ones that have occurred are generally with the more elite joggers. The centre had to establish an etiquette and protocol regime that has reduced conflicts considerably. The general perception from the manager of the facility was that the walking lanes had been very successful, are popular across the Town and attract lots of different types of new users. The pay-for-use system was probably more successful in the early-going, but people are starting to get used to not contributing via the Honour Box. There is no YMCA or other such walking indoor track facility in the Orangeville area. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 2-10 3.0 WALKING GROUPS, COMMUNITY AND STAFF CONSULTATION The following information was secured from focus groups and interviews with interested user, potential community and staff groups. 3.1 Happy Walkers The Happy Walkers have historically been involved with the Fairview Mall, but are currently at the Kitchener Memorial Auditorium on a temporary basis. Some forty-two participants from the Happy Walkers participated in this session. The key considerations for the Happy Walkers are as follows: · 3,600 registered annual participants, which could range from one walk per year to five walks per week. · Had approximately 300 to 400 walkers per day at Fairview Mall. · Have approximately 150 walkers on average per day at the Kitchener Memorial Auditorium Complex. · See themselves in a rebuilding era. · Have a strong association with the City of Kitchener's seniors' centres and with the Department of Community Services related to sourcing participants and supports. · Other services/activities are available, such as bus trips to Casino Rama or trips to foreign destinations, which are paid for by the individuals. · The coffee hour after the walk is an integral part of the overall program. · The walkers come and go as they wish, and often come in small clusters or meet friends on- site. · A key feature of the program is to be able to walk with the three or four individuals and chat. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 3-1 The group was asked what the key rationales for participating in a walking program were. Three benefits were identified relatively equally: · Physical fitness/cardiovascular development - many identified that their doctor had told them to start walking; they wanted to increase their fitness level; etc. · Socialization - the ability to chat with friends while walking, at coffee after, etc. A proportion of the individuals are widows or widowers and it was identified by several that this was an important activity to get out of the house, meet other individuals and in starting their day off actively. · Visual stimulation - the mall is particularly preferred for this because of all of the stores, the different goods and retail activities, the plants, etc. It was identified that a number of the female participants also shop in the mall and they believe they have a positive economic impact on the mall. The benefits of Fairview Mall are: · The visual stimulation and retail activity opportunity. · The food court. · An excellent walking circuit. · Parking and accessibility. The challenges with the Fairway Mall are as follows: · Can only walk from 7:00 a.m. to 9:30 a.m., after which you need to "dodge" the regular shoppers. · Sometimes the mall is not as supportive as would be helpful. · Hard walking surface. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 3-2 In regards to the Kitchener Memorial Auditorium Complex, they are very appreciative of the opportunity and the circular walking circuit is excellent. However, there is a lack of visual stimulation, which gives some preference to the mall. Another emerging consideration that was identified by a number of people was the fact that a rubberized floor would be very helpful. The older walkers are experiencing ankle, knee and hip aches and they believe a rubberized floor would allow them to walk for longer time periods and for more years. Many of the walkers had used the Waterloo Recreation Centre facility and found that surface very favorable. Awareness of the Happy Walkers is as follows: · Word-of-mouth dominates how people become aware of this group. · Some doctors make direct referrals. · Pamphlets and materials in the seniors' centres within the City. · Some articles have occurred in the newspaper and on television, which has given visibility to the program. The group was then asked their perspective on a walking track at the new twin pad facility, for which the location was described to them. The following points emerged from the discussion with some clustering in terms of volume of interest: · A number of the female participants clearly preferred Fairview Mall. · Four or five individuals felt there could be transportation challenges going that far into South Kitchener. · The rubberized floor was seen as a significant point of interest/benefit. · Some concern expressed as to whether joggers and runners would be on the track, whether St. Mary's Secondary School would be involved, etc. which reflected the sense of exclusivity they currently have at Fairview Mall. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 3-3 · They were not accepting of any fee for use of the facility, as they have equal quality at no- cost at Fairview Mall and at the KMAC. · A food court or social room would need to be available to support the post-walk social activities, with coffee, tea, etc. The group also identified the following considerations: · The aging population will generate significantly more walkers, particularly amongst the 50 to 60-year-olds, which are sparse amongst the current social walking participants. · The south area of the City is going to experience significant population growth and this could generate more walkers. · Walking is increasingly popular as an activity for all ages. · More senIors are expected to become indoor walkers as they find it difficult to walk in inclement weather, the cold of winter, the heat and humidity of the summer and on windy days. In the end, the concept of walking lanes at the twin pad was widely supported with the following assessment: · Some of the current Happy Walkers would use the facility, but Fairview Mall is probably a stronger attraction. · The rubberized floor will attract more of the seniors over time. · Walking demand levels will increase and will generate additional use. · The walking track proposal was seen as an excellent idea and was widely supported. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 3-4 3.2 Happy Hoofer/Resoles Two seniors' outdoor walking groups operate from the Breithaupt Recreation Centre. They involve participants who are members of the Rockway, Downtown, Breithaupt and Waterloo Seniors' Centres. Their program involves nine to twelve outdoor walks per year, three in the summer and nine during the rest of the seasons. The walking program often involves a destination area that can range from Rattlesnake Point in Milton to the Stratford area, with many of the walks in the Region of Waterloo. They tend to use trails, and other venues for a program that operates from approximately 9:30 a.m. to 3:00 p.m. on the walking days. The following material provides additional information on these groups: · The Happy Hoofers are older seniors, some requiring the use of a cane who walk shorter distances. They have a lunch in a picnic area, require regular washroom facilities and are differentiated by the fact that they walk significantly slower. · The Resoles are younger seniors, often 55 to 65 years old. They take their lunch along on their walking program, do not necessarily require washroom facilities and walk at a faster pace. · The Happy Hoofers have had up to 50 participants, but in recent years has been more in the 25 to 28 walkers. The Resoles have 12 to 22 walkers. · If the weather is inclement, they make a programmatic change early in the morning and go for an indoor walking experience at either RIM Park or the Waterloo Recreation Centre. The Waterloo Recreation Centre is a preferred location due to the rubberized surface. Their primary interests relative to an indoor walking track would be only for inclement weather days, which occur approximately two to four times per year. The representative of the groups felt that the walking track in the new twin pad arena would be an excellent facility, well-located and that they would make use of that on those selected days. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 3-5 The key rationales for people participating in these two groups are as follows: · Getting out into nature and developing an appreciation for the flora and the fauna, the scenic views, etc. · Some of the walks have educational experiences in terms of birding and other topics. · The cardiovascular/fitness activity. · Socialization, which is very important for those that are widow or widowers/living alone, as people tend to walk in clusters of three and four individuals. A wareness of the program is through the community centres, where brochures are located and the coordinator operates with City staff. The Happy Hoofers operate on Thursdays and the Resoles on Wednesdays. There has been some discussion that a third group may need to be developed that walks at a pace that is slower than the Resoles but faster than the Happy Hoofers, which reflects the continuing market segmentation of the seniors market and reflects the variable capacities of individuals. 3.3 Stanley Park Walkers The volunteer coordinator of this group participated in an interview. The group uses two of the three gymnasiums at the Stanley Park Community Centre/St. Daniel's School on Mondays and Thursdays each week. The following information was provided: · The senIors prefer this arrangement because of the Ice, snow, heat and related outdoor impacts. · They were able to secure a number of pedometers from Kellogg's. As a result, they track distances and have created an Ontario map where people can walk to targeted destinations to enhance interest and goals. · The course uses pylons to define the walking area. Twelve laps equals one kilometer. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 3-6 · The group now has thirty individuals who regularly participate. It is believed that they are approaching the maximum for the number of people who can be on the walking circuit at one time. · They can only access the facility on Mondays and Thursdays because the gymnasiums are used by the school the other three weekdays. · Advertising has been pursued through circulars to sixteen churches in the Stanley Park and east end area, along with other in-house and related promotions. · They would prefer a larger track, as the one within this facility is smallish. The group continues to grow and it is anticipated that it will have no problem reaching fifty to seventy- five individuals over time. However, the current facility will not support that number. Also, many of the walkers would like to walk on a more regular basis. The coordinator felt that the twin pad walking track would be an excellent facility, would be utilized by members of his group and should be pursued actively. He also indicated, that with limited promotion, they have been able to secure a large number of individuals that now is growing. He reiterated that walking is becoming an activity of greater interest for a growing number of seniors because of health, fitness, socialization and other benefits. As a result, he believed that there was a strong basis to make an investment in a walking track facility in Kitchener's south end. 3.4 Community Sports Groups Four representatives from Kitchener Minor Hockey Association, the Grand River Trail Association and the Kitchener-Waterloo Skating Club participated in a discussion on a potential walking track at the new twin pad arena. The following points were identified from a use perspective for these three groups: · For the Grand River Trail Association members, which involves approximately 400 individuals, they continue walking in the November through April period as part of their ongoing hiking and walking interests. Many of the individuals currently use the Waterloo Recreation Centre, while a smaller proportion use RIM Park. The group is supportive to adding another walking facility due to the crowded nature of the Waterloo Recreation Centre. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 3-7 · Kitchener Minor Hockey is involved in the twin pad arena facility as their new home base. They will have various leagues playing on the ice in the facility and see a walking track as having three distinct benefits: o Allows players to stretch and run prIor to games, as well as to do off-season cardiovascular work. o Will bring more community people into the arena, making it more of a community centre. o Such a track was identified as a need for the Kitchener Memorial Auditorium expansion in 1987 and is seen as a valuable asset for the community. · The Kitchener-Waterloo Skating Club will only be operating Learn-to-Skate programs in the new twin pad, facility and therefore, they do not see it as a dry land workout space for their higher level skating participants. However, their perspective was that many parents come with the children to Learn-to-Skate classes and this would be an ideal opportunity for them to walk and undertake fitness and cardiovascular activity while they are waiting for their children, resulting in a multi-use perspective for families. · Representatives saw an evident need for the facility and believe that it will be very popular. They or many people they know use the Waterloo Recreation Centre and RIM Park and recognize that these sites have become very popular, are crowded and an additional facility in the Southern Kitchener area would balance out the market and access to opportunities across the Kitchener- Waterloo area. · A number of the representatives have used the walking track in Waterloo, have visited the Orangeville Walking Track in the new arena complex and have seen facilities in similar communities, which tend to be well-used, especially in the evenings. · When the relationship between the walking track and the ice surface was identified as a potential issue due to noise, cold air, pucks, etc. that would be different than at the Waterloo Recreation Centre, the general feeling was that these issues prevail also at the Waterloo Recreation Centre, and though the track may be closer to the ice in the new twin pad, these concerns do not represent a significant issue beyond what other similar facilities experience. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 3-8 · Walking, as a cardiovascular activity, is increasing as the physical fitness and health benefits are significant, especially when the population is being advised to pursue healthier lifestyles, which takes pressure off the healthcare system and its costs. · Adding an indoor walking track to an existing facility would likely be more costly than developing an integrated track with the twin pad facility. No new facilities of the scale necessary to support an indoor walking track are planned until the South Kitchener District Recreation Centre, which would not likely occur before 2013 and could be later. Construction at that point in time will be significantly more costly. Walking will have increased in popularity and significant lost opportunities would likely prevail for Kitchener residents. · It was indicated by a representative of Kitchener Minor Hockey that in the fundraising feasibility assessment currently underway for the twin pad, a number of the corporate sponsors had identified a preference for and the possibility of increased consideration for a capital contribution based on the presence of walking track, which was seen as benefiting a broader spectrum of the population, including their own employees and their families. · Since walking programs and use are not registration-based or involve the purchase of blocks of time like an arena, swimming pool or community centre, determining demand levels is very difficult, as much of the use will occur on an informal, personally-motivated basis. The evidence at the Waterloo Recreation Centre, and to a certain degree at RIM Park and in other communities, is that people do use these facilities if they become available. 3.5 Millennium Walkers (RIM Park) The Millennium Walkers is a program name for an unorganized, open access walking program at RIM Park. It attracts between 100 and 200 individuals a day on a 500 metre loop. The walking program is tied to a theme of Walking America where there are different destinations with distances identified. Some walkers participating in the program fill out cards and put them in a box. Distances are tracked in terms of how far they have walked towards their destination. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 3-9 There are two key market segments that use the RIM Park facility for walking. The first is Stroke Recovery/Cardiac Rehab groups. This started when a doctor from St. Mary's Hospital was visiting the facility to watch his children and saw people walking. He now brings his clients to the facility. They start with short distances, some much below 500 metres. Once they reach 500 metres, one loop, they can move to multiple loops or eventually start using some of the stairs to enhance the cardio workout. The second group is able-bodied individuals that covers all types of users from speed walkers to parents with strollers. Many of them undertake walking in the loop and/or also use the stairways to enhance their cardiovascular workout. RIM Park has a tile floor, which is appealing to some groups vs. concrete. The facility is open from 6:00 a.m. to 1 :00 a.m. and walkers can be found at pretty well any time. The following points are the considerations identified: · The use levels for walking are growing very quickly month-to-month. · The winter growth in indoor walking has been very significant. · The food court is an obvious attraction for the social walkers. · Storage is provided for coats, boots, etc. for $1.00, but the dollar is returned once the storage cabinet is emptied. · A number of parents whose children are undertaking activities at RIM Park, use their waiting time to participate in the Millennium Walking Program. · The only significant conflict that was identified was sometimes there is crowding in the hallways, or a team waiting for a game is playing in the hallways, which can create some challenges that are dealt with by staff. · The centre gets a number of calls from private fitness instructors who ask if they can bring their group for an indoor walking workout and this is accommodated. · No fee is charged, though the walker volume does provide some income for the ancillary services in the facility. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 3-10 RIM Park is an enthusiastic supporter of the social walking program, has developed the Millennium Walking Program to enhance the overall experience and set individual targets, has a market segment associated with Cardiac Rehab/Stroke Recovery users and it is seeing evident growth on a year-round basis, but particularly in the winter months. 3.6 M.A.C.K.S. Representative and Community Advocate The M.A.C.K.S. representative, which involves a focus on seniors' serVIces and activities within the community, participated in the focus group process. Also, a community advocate for the walking track was interviewed. The following were the key points put forward by these individuals: · Creating a healthy environment is an investment, not a cost. Walking tracks provide seniors and others the opportunity to walk in order to gain physical fitness, overcome obesity and to achieve other health benefits that reduce health costs and which benefit the broader community. · Outside walking is increasingly difficult due to the heat and cold, pollution, allergies that are impacted by humidity and other constraints when individuals wish to participate in a regular walking regime as part of a self-directed fitness program. · The YMCA and similar facilities are very expensive and do not appeal to seniors due to the cost. As well, the YMCA track in Kitchener is more for joggers. Seniors tend to feel that they are an impediment. · There is a significantly aging population and walking will become a more popular activity due to its low cost, ease of participation, self-directed focus and the unique opportunities to walk in different environment and to achieve different visual stimulation and to support various interests. · Social walkers and some runners will be encouraged to participate if the access to facilities is more local than centralized, such as in Waterloo as currently exists. · Transportation is an issue for some seniors and therefore, having walking tracks dispersed throughout the community would encourage increased accessibility and participation. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 3-11 · Other key user groups were identified at St. Mary's Catholic Secondary School and Huron Heights Secondary School. Discussions with them indicated significant use potential and support. These representatives were supportive to this initiative. They saw the initiative as both attracting current walkers who have various transportation, cost, weather and related barriers, as well as attracting new walkers by developing such a facility in another part of the community. The view presented was strongly oriented towards this project being an investment in resident health, community wellbeing and a healthy living perspective that has become a key principle in community planning, provincial and federal health care policy and other perspectives. 3.7 Department Staff Two focus groups were undertaken involving seven department staff who are associated with Athletic Services, the Enterprise Division, Seniors' Services and Recreation Programs. The key points put forward in these discussions were as follows: · A walking track has been discussed in Kitchener for nearly twenty years, starting with the design process in the mid-1980s for the twin pad expansion at the Kitchener Memorial Auditorium. · The identification of a walking track emerged principally from the Kitchener Minor Hockey Association and the Kitchener-Waterloo Boxing Club who are partners in the new twin pad facility. There has been no evident groundswell of support or other identification of need/interest to date. · The track would have potential benefits for seniors in terms of keeping them active, mobile, improving health and cardiovascular performance and related considerations. This would be further supported by the aging profile of the population in Kitchener over the next twenty to thirty years. · Each time the City develops a community centre, some identification of a walking track has been made, usually from older adults. However, the facilities are never large enough to support such an addition on a feasible basis. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 3-12 · The athletic services opportunities involve: o Cardiovascular training for off-season activities, primarily cardiovascular training for winter and summer sports groups. o Pre-game/event warm-ups. o Potential skills development activities that could parallel or integrate with the primary sports skills development. o Could be undertaken within team or individual environments. · It was identified that for sports groups, the Waterloo Recreation Centre is available, but it is very difficult to find time at the facility because it is crowded. · Such a facility would be supportive to youth and those with disabilities if it has no or low cost access. Transportation is a barrier to these groups and therefore, a facility in South Kitchener would be supportive to increased access. · Concerns were identified related to the fit between a walking/running track and an arena, related to: o Air temperature could be colder than the Waterloo Rec Centre, as the track will be closer to the ice, as there is no large seating area. o Pucks could be flipped up into the walking area. o There would be considerable noise and yelling from the ice surface, music from figure skaters and related audio intrusions. o The design could result in spectators needing to walk across the track, thus mixing with walkers and runners. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 3-13 · Identification was made of potential conflicts that have been seen or heard about from other such facilities: o Runners have trouble overcoming walkers and the groups running into each other. o The sense of entitlement that social walkers sometimes have for such facilities. o The need for track marshals during heavy use periods. o Music and noise incompatibility. o If the track is small, the ability for wheelchairs, strollers and other supportive devices to be utilized. · It was identified that the Waterloo Recreation Centre surface needs replacement and a better surface material should be considered if a Kitchener track was to proceed. · The new proposed twin pad is not just an arena, as it will have a boxing centre. It could become more of a sportsplex and/or community centre if the walking track were added. · Programming such a space was seen as a challenge and would need to be addressed. Two models were discussed: o A parallel operations model where joggers and walkers would have joint use of the facility, but in different lanes. o A schedule-based model that had exclusive use by different groups, I.e.: social walking times, running times, club activities times, etc. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 3-14 · After considerable discussion, it was identified that there appears to be three market segments for such a facility: o Social walkers - typically older adults or young parents or similar users. o Youth clubs/fitness walkers and runners - youth or adults whose focus IS significantly less social and more physical fitness driven. o Track and field athletes - looking for a facility that is training-based at a high quality level and could support tournaments and meets. · There was a strong consensus that one walking track could not facilitate/support all these uses, particularly in regards to the track and field community. · Revenue production was seen as being of interest, but to date no model has been seen that generates significant revenue levels. Comments were made in regards to the Waterloo Recreation Centre where the Honour Box is not in close proximity to the track. A strong sense prevailed that revenue opportunities are very limited. · Some sense that the track may have to be wider than three or four lanes, i.e.: six lanes, in order to facilitate joint use between runners and walkers and to have safe passing lanes. · The location at the twin pad facility was seen as favourable in that it was a significant distance from the Waterloo Recreation Centre, thus spreading indoor walking and running facilities across the Twin Cities community. · Some discussion was identified that such a walking track may not be a priority and would it be better integrated into the South Kitchener Recreation Centre on a larger facility basis. · If an indoor track were to be developed, the "use vision" would need to be very specific, in terms of describing the intent, the priority user audience or audiences, and whether the facility is offered on a scheduled or open use/drop in basis. · If the facility was developed at the twin pad, it could be utilized by St. Mary's Catholic Secondary School and area grade schools as part of the Reciprocal Agreement. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 3-15 Many benefits and concerns were identified for the track. One key component that came forward with some consensus was that there has not been a grounds well of identification for such a facility, however, this may be because it is a self-directed, unscheduled, open access-type activity. Therefore, the demand profile for the facility is very hard to identify and may be more related to evidence in other centres that once built, have attracted a significant user base. The dispersal of locations for walking tracks was seen as a benefit, as well as support to organized youth groups. The arena environment was identified as a potential fit concern. Also, questions emerged as to whether this is a priority project for the City, as the projected costs would represent a significant portion of the capital costs needed for a new community centre. 3.8 Summary In summary, the following key considerations emerged from the consultation: · Social walkers prefer malls, but were highly supportive to such a facility and some would use it. Major areas of support involved: o Geographic distribution of indoor walking opportunities. o Increasing seniors population who are more fitness and health oriented. o A sense that such facilities, once offered, will attract their own audiences. · A walking track would have the opportunity to further develop the twin pad facility as a community centre and not just an arena. · Operational and fit concerns were identified in terms of noise intrusion, the variable interests of different types of uses, air temperature, etc. · A strong sense that walking will increase as an activity amongst all age groups, and that indoor walking will increase in popularity as people want regular walking experiences that are now often impaired by cold or hot weather, humidity, rain, wind and other outdoor constraints. · The facility would have the opportunity to serve youth, adult and senior's populations, as well as other targeted groups, including people with disabilities, young parents, etc. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 3-16 · The twin pad facility is the only project before 2013 that is large enough to house an indoor walking track. · The market segments for such a facility are as follows: o Social walkers, which are primarily seniors. o Youth sports teams/adult fitness enthusiasts. o Track and field athletes. · The primary target audience would likely be social walkers and youth teams, along with some adult fitness runners. · The cost of such a project is considerable, however, some comments received indicated that the cost will only get higher if the City defers, and valuable participation opportunities will be lost. · Some individuals indicated that such a facility needs to be seen as an investment and not a cost, that it supports healthier lifestyles and the Healthy Kitchener initiative, as well as provides many individuals an opportunity to overcome isolation, increase their socialization and to be happier. · For social walkers, three distinct user characteristics prevail: o The physical fitness component. o The socialization component. o The visual stimulation component. · There appears to be between five and ten indoor and outdoor walking groups in the Waterloo region area, likely involving 1,000 to 2,000 walkers on any single day on a Monday to Friday basis. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 3-17 · A general perception, that the Waterloo Recreation Centre is crowded and additional capacity needs to be developed. · That RIM Park is interesting, but has challenges in terms of using corridors that are also used by hockey players and other facility users and is distant from Kitchener residents. The resident and community support for such a facility was at a very high level and is seen as consistent with the types of investments that support resident lifestyles, priorities and preferences. The staff perspective was more technical and related to whether this is a priority investment in light of all the other investment alternatives that lie before the Department and the City. Also, the need for a use vision and well defined mandate and operating protocol for such a facility is required. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 3-18 4.0 TRENDS AND DEMOGRAGHIC REVIEW 4.1 Trends There are a number of key trends that are influencing walking and jogging track investments and utilization. .1 Aging Population The age cohort between 45 and 60 years of age is known as the baby boomers. They represent approximately 30% of the population. This phenomenon within the population age profile is the basis for the aging population reality that is affecting urban Canada. As this group ages, they will be moving into retirement In significant numbers, have different expectations in terms of recreational activity than the previous generation of seniors and tend to have greater and more varied participation interests. This is a generation that has sustained adult hockey, baseball and gymnasium sports into later years. They are also a group that tends to travel more, have had significant experience with paying for activities, but also have different expectations in regards to convenience, facility quality and the benefits received/value for fees paid. Many of the social walking participants tend to be seniors, often over the age of 65. Walking is an activity that can be undertaken locally, at low-cost, has good cardiovascular benefits and can be undertaken within a social context. As a result, as the population ages, one can expect an increasing interest in walking-type activities. The growth in mall walkers, walking tracks and neighbourhood outdoor walking will continue to grow. With the significant aging of the population, it is anticipated that walking will be becoming an activity of increasing interest and participation. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 4-1 .2 Walking Activities Walking is one of the top three recreational activities undertaken by Ontario residents based on various research reports. As indicated above, some of this interest is age-related, while some of it is related to the low cost, the local neighbourhood opportunities and the multitude of walking environments, from nature trails, to hiking, to neighbourhood streets, to walking tracks, to social walking clubs, etc. Walking as an activity can not only be physically beneficial in terms of health, it can also be of interest because of the visual stimulation within a neighbourhood or a natural area; the ability to walk with one or more people and carryon conversations; and to walk to destinations, ranging from coffee breaks to birding and many other perspectives. Also, walking is an important activity for cardiac rehabilitation and other types of rehabilitation programs, which creates a specialized niche, many of them involving people over the age of 55 when these types of health issues emerge more significantly. This diversity and flexibility of walking allows it to be of interest to a broad range of groups and individuals, will likely continue to grow, not just because of the aging population, but also because of the other benefits and perspectives that it offers for those individuals who may be involved in sports and athletics and those who may not have an interest in sport activities. .3 Multi-Use Facilities One of the key trends in recreation facility development is the move towards multi-use facilities. There are several key considerations that facilitate this type of development strategy. The first consideration is the economies of scale, whereby the capital cost to develop the facility and the ongoing operating costs can be substantially reduced due to the inherent efficiencies of one building vs. multiple buildings and the use of common areas, such as foyers, washrooms, concessions, etc. The second consideration is the customer service perspective, where a family or group of people can come to one facility and undertake multiple activities without having to travel to several destinations. As such, a family can come to one facility, the children participating in the pool or on the ice, while the parents using the library or undertaking fitness activities. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 4-2 The third consideration is that the greater scale of the facility can support adding on activities or components, such as a walking track, that could never be built afford ably as freestanding structures. Therefore, there is an inherent ability to expand the scope of activities and the range of leisure pursuits that can be made available to residents. The larger scaled facility is also being placed on collector and arterial roads, generally with public transit service, creating greater visibility that supports marketing and related activities. .4 Sports Training and Development Minor sports continue to evolve significantly, especially above the recreational level. As sports skills develop and more research becomes available and competition broadens, increasing interest exists in cardiovascular training, dry land warm-ups and other strategies to reduce sport injuries, to enhance performance and to enjoy the overall experience at a higher level of play. As a result, more minor sport teams, leagues and associations are looking for dry land opportunities for physical training, particularly in off-season months so that their athletes are in a better position to initiate their season and to play at higher levels of capacity and tolerance. .5 Financial Accessibility As user fees to access leisure programs and recreation facilities continue to increase over the last ten years, a growing concern has emerged as to how do individuals, families and groups who have limited financial means participate in these activities? From a public policy perspective, the trend has been to establish alternative strategies to ensure that all residents have the opportunity to participate by providing fee reductions or subsidized financial support to overcome financial accessibility barriers. Therefore, in considering new recreation facilities and leisure programs, the role of user fees and generating revenue in balance with encouraging participation, especially around large public policy perspectives involving community access, improved public health, etc., becomes a major consideration that needs to be fully addressed, especially for mass participation activities like walking. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 4-3 .6 Inclusiveness Increasingly, Canadian society IS embracing the notion of inclusiveness across the spectrum of community activities, with particular focus on leisure services. Inclusiveness involves ensuring participation for those with physical or intellectual disabilities, those who have different ethnocultural backgrounds and other diversity considerations. The emergence of Paralympics, Special Olympics, sled hockey and a host of other activities and organizations attest to the growth in ensuring that all members of the community have an opportunity to participate in leisure activities, develop their skills and to enjoy the benefits of physical activity. Therefore, in regards to a walking track, the opportunity for wheelchairs, assistive devices, on-grade access and related considerations needs to be fully explored and responded to both in terms the physical design, as well as for scheduling and programmatic activity. .7 Specialized Programming Another trend is the growth in specialized programming. Earlier it was identified that Cardiac Rehab programs have been growing and have a specific target audience. Early years programs have emerged in strength over the last ten years. Specialized seniors programs have been with us for many decades. In the future, it is anticipated there will be increasing demand for specialized programming. One of the areas could be involving new Canadians who come from diverse backgrounds, of which there has been little engagement with leisure activities. Another area could involve sports and athletics for older adults. At the Waterloo Recreation Centre, specialized programming has emerged in regards to Stroller Moms, which is a fitness program for new mothers that allows them to participate with their children, but requires a walking track that can accept strollers. As one moves into the future, it is anticipated that there will be more market segmentation, specialization and focused programs and less priority given to assuming one program fits all or one facility can respond to everyone's interests. This is particularly true from a facility perspective, where the differentiation between recreational users, people interested in skills development and higher performance participants is resulting in changing requirements in facility quality and capacity. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 4-4 .8 Recreation Facility Quality Over the last twenty years, and particularly in the last ten years, there has been substantive growth in the quality of recreation facilities at the municipal level. The twin pad arena with community rooms, showers, warm viewing areas, larger seating capacities, etc. has become the norm. Walking tracks are moving towards rubberized surfaces. Indoor pools are providing both fitness lanes with more free flow activities. Community centres are creating opportunities for a wider range of programming, some of which are very specialized and require specific equipment. Overall, facilities are becoming larger, more complex, are air-conditioned in the summer, provide more dressing rooms to accommodate increased female participation and other desired and necessary features. .9 Specialized Facilities Another trend in facilities development is the evolution of specialized/dedicated facilities for a single type of use, whether in a stand-alone facility or integrated into a multi-use complex. This facility trend allows for the development of higher quality sports facilities that support competitive athletes and participants, providing features and capacities that would not have been expected or utilized ten to fifteen years ago. This trend follows the growth in competitive sports and athletics, where the need for higher level training, league/meet and tournament play becomes increasingly important for athletes to develop their skills and capacities. Such a strategy has important capital and operating cost implications, but also reflects consumer demand, sport tourism perspectives, health and safety and changing community norms. In Burlington, Woodstock and many other communities, there are specialized gymnastics club facilities that are dedicated to a single use. They may reside in larger multi-use complexes, but they are dedicated to a specific activity. In other communities, senior's woodworking shops, arts and artisan centres and related specialized facilities continue to emerge. The proposed twin pad facility in Kitchener will have a dedicated boxing facility primarily funded through donations and club resources. From the Kitchener Parks and Recreation Master Plan, specialized facilities around track and field activities, and larger aquatic facilities were discussed at some length. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 4-5 Facility trends appear to be movIng towards multi-use centres, but with dedicated specialized resources/uses at significant quality levels that respond not only to today's standards, but have the ability to adapt to evolving quality and performance standards, which continue to drive increased facility scope and quality. 4.2 Population Demographics and Community Profile .1 Introduction A number of information sources were relied upon to undertake this demographic analysis that was developed for the City of Kitchener Leisure Facilities Master Plan. The sources of information included: Statistics Canada - 2001 Census; City of Kitchener, 2004 Planning Communities Demographic Profile; Region of Waterloo, Statistical Profile: Population & Households, December, 2003; Region of Waterloo, Population Forecast 2001-2016, May 2004; Region of Waterloo, Year-End 2003 Population and Household Estimates; and City of Kitchener, Staging of Development Report, 2004-Post 2005. .2 Current and Historic Population According to the 2001 Census, the population of Kitchener was 190,400, while the region's population was 438,515, as illustrated in Table 4-1. The current population is approximately 201,500 (2003), according to the Year-End 2003 Population and Household Estimates prepared by the Region of Waterloo. Table 4-1 Current and Historical Population Profiles Historic Population City of Kitchener Region of Waterloo 1976 131,870 289,129 1981 139,734 305,496 1986 150,604 329,404 1991 168,282 377,762 1996 178,420 405,435 2001 190,400 438,515 Source: Region of Waterloo and Statistics Canada, 1976-2001 Census CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 4-6 .3 Forecasted Population The region undertakes population forecasting for area municipalities. For the Leisure Facilities Master Plan, the region specifically undertook a forecast of the city's population from 2006 to 2016. The region has forecasted population by single age level for the region and Kitchener using "Cohort Recruitment" (CR) method and a summary of the projections is contained in Table 4-2. Table 4-2 Forecasted Population Forecast City of Kitchener Region of Waterloo 2006 206,447 479,080 2011 216,585 507,477 2016 228,949 543,700 Source: Region of Waterloo, Planning and Development Department The significant findings related to growth and age structure of forecasted population for Kitchener were as follows: · For the period 2001 - 2016, Kitchener's overall anticipated growth increase is forecasted to be 38,549 persons, which represents an average annual rate growth of 1.3%. · The region's overall growth for the same period is anticipated to increase by 105,185 persons, representing an average annual rate growth of 1.6%. · The school age populations, 4 to 8 years and 9 to 13 years of age, will decline more significantly in Kitchener than region wide; for 14 to 17 years olds, modest growth is forecasted. · For the young adult population, ages 18 to 34, a moderate increase is shown, while the 35 to 49 age range is projected to remain stable or experience a minor increase. · Significant growth in the 50 to 71 age group across Kitchener and the region is projected, with the highest growth rate in the 55 to 68 age group. · The highest absolute population in 2016 will be in two age groups, 24 to 28 and 50 to 54 year olds, for Kitchener and across the region. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 4-7 .4 Demographic Characteristics The 2004 Planning Communities Demographic Profile contains a number of significant factors regarding population, family profile, income and multi-cultural diversity for the Kitchener population as follows: · The population of Kitchener CMA [Kitchener Census Metropolitan Area made up of Kitchener, Waterloo, Cambridge, North Dumfries and Woolwich] has grown at a faster rate from 1996 to 2001 than that of Ontario and Canada; · The Kitchener CMA ranked sixth with the highest population growth rate from 1996 to 2001 among all CMAs in Canada; · With a median age of 35.3 years, the Kitchener CMA possesses the youngest median age population in Ontario and the third youngest among all of Canada's twenty-seven CMAs; · The changing composition of families in Kitchener is reflected in the increase in the number of common-law families between 1996 and 2001. While the number of married families grew by only 5.1 %, the number of common-law families grew by 30.7% during the same period, far outpacing population grow of 6.7%. As well, the number of lone parent families increased by 11.2%, while female lone parent families are still the majority, there was a significant increase in male lone parent families, 23.5%. · Between 1996 and 2001, the number of seniors, aged 65+, increased by 8.5%, reflecting an aging population, but the proportional increase in the population of seniors is slight, relative to overall growth of 6.7%. · More than 8,000 people have immigrated to the city SInce 1996, with the greatest percentage originating from Eastern European countries, including Yugoslavia and Romania. Approximately one quarter of the city's population is foreign born, 23%. This has increased the diversity of ethnic groups, with a corresponding increase in the number of people whose mother tongue is not English. .5 Community Development According to the Staging of Development Report, the majority of development in the city for 2004 to post 2005 is occurring adjacent to the city boundary with the largest concentrations in the eastern and southern parts of Kitchener. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 4-8 There is limited development occurring in the inner-city area. The approved and proposed draft Official Plan figures show the majority of growth within Kitchener will occur in the planning areas of Huron Park, Laurentian West, Pioneer Tower West, Grand River South and Doon South. It is important to note that there is also significant growth in the Highland West, Country Hills and Grand River North Planning Communities. The largest majority of approved development can be found in the following planning communities: · Huron Park could accommodate 1,432 to 2,446 single, semi and townhouse units. There is proposed commercial/business park and institutional, as well as a parkland development in the area. · Laurentian West is predominantly residential, with 961 multiple dwelling units and a range of 369 to 414 single and semi detached units potentially to be developed. There are two proposed institutional and three parkland components. One plan has a proposed commercial area. · Pioneer Tower West will experience primarily single detached residential units, 614, and 109 multiple dwellings units. There is also one development that includes proposed parkland. · Grand River South has proposed residential development consIstIng of 436 single units, 118 townhouses and 333 multiple dwelling units. There are three proposed institutional uses and four proposed parkland areas. · Doon South is mainly residential with a range of 377 to 679 single, semi and townhouse units and 130 multiple dwelling units. There is also a commercial component forecasted. There is also significant approved development in the following planning communities: · Highland West has proposed residential developments for 245 single and 178 multiple dwelling units. A small portion is also proposed semi and street townhouse dwelling development. There are three proposed parks and one commercial component. · Country Hills East development has a majority of single and multiple dwelling units proposed, 224 and 228 respectively. · Grand River North is mainly residential, with 231 multiple dwelling units and 179 single detached units proposed. There is one commercial and one parkland component identified. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 4-9 · Brigadoon has proposed residential developments for 105 multiple dwelling units and 82 single detached units. There is also both a commercial and institutional components proposed. Potential Draft Plans for Approval in 2004 are found throughout the city, but concentrated in the east, south and west sides of the city and are as follows: · Grand River South has proposed residential development for 550 multiple dwelling units and a range of 363 to 474 single, semi and townhouse units. There are two proposed parkland areas and one proposed commercial area. · Mount Hope - Huron Park has 462 proposed multiple dwelling units and a commercial component under construction. · Laurentian West has development proposals for a range of 162 to 302 single and semi detached units, and a range of 0 - 62 multiple dwelling units. There is a proposed commercial development and parkland area. · Highland West has proposals for 226 single and 50 serm units. There are 79 proposed street townhouses and 25 multiple dwelling units. There is parkland and proposed commercial (office uses) component. · Doon South has 219 proposed single detached dwellings with a parkland area. · Pioneer Tower East has 119 proposed single detached residential units with a parkland component. Potential draft plans for approval in 2005 and beyond are concentrated in the Grand River South, Doon South, Pioneer Park and Huron Park planning communities. There are numerous other developments slotted for potential approval for post-2005. They are concentrated mainly in the north, east and south ends of the city with a small number of developments found on the west side. Table 4-3 provides some preliminary population projections by planning areas where significant growth has been identified. The data has been developed based on the housing unit projections and utilizing a 3.0 average household unit size, which was the average for the City of Kitchener in the 2001 Census. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 4-10 Table 4-3 Population Additions By Selected Planning Communities Planning Area Unit Range Unit Size Factor Additional Population Potential Huron Park 1432-2446 3.0 4296-7338 Doon South 407 -809 3.0 1221-2427 Grand River South 900-950 3.0 2700-2850 Pioneer Tower West 700-750 3.0 2100-2250 Highland West 100-450 3.0 1200-1350 Country Hills East 450-500 3.0 1350-1500 Grand River North 400-450 3.0 1200-1350 Laurentian West 369-414 3.0 1107-1242 Brigadoon 180-200 3.0 540-600 TOTAL 15,714-20,907 The data indicates that the Huron Park area is anticipated to have the most substantive growth, representing approximately one third of the total projected growth in population, between 4,300 and 7,400 individuals. Grand River South is projected to grow by 2,700 to 2,850 individuals, that in conjunction with Grand River North, will add a total population in that area of approximately 3,900 to 4,200 individuals. Country Hills East, Pioneer Tower West and Laurentian West represent mid-sized growth areas, in the 1,100 to 1,500 range, along with Highland West. Doon South has a wide potential distribution, ranging from 1,200 to 2,400 individuals, with Brigadoon having the smallest growth potential at between 500 to 600 residents. Over 60% of the growth is in the south Kitchener area, in terms of the areas that will likely experience the highest growth rates and populations. The Grand River South area has the second largest component, and the Highland West area having some modest increase potential. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 4-11 .6 Summary Based on the above analysis, there are number of residential development trends emerging in Kitchener as follows: · Suburban-based growth will continue to be the predominant form of development in Kitchener, especially over the mid-term, 5 to 10 years. · The largest areas of suburban growth will be in the south-west area in the Laurentian West, Doon South and Huron Park Planning Communities, 60% of anticipated growth. Growth is also planned for Grand River South and Bridgeport North Planning Communities. · Potential for central city intensification through re-development of brownfield or former industrial sites, greyfield or obsolete commercial and institutional sites is being promoted by the city, region and province. The predominant housing form is likely to be apartment units for a mature adult market, not more family-oriented housing. Also, over the longer term, a significant level of growth could materialize around major infrastructure investments, eg: Region's Light Rail Transit proposal. · An aging population and changing ethnic diversity are key trends that will impact the delivery of selected programs and services and change the nature of some leisure facilities and the activity components within them, such as indoor walking/running. The number of 65+ year old residents increased 8.5% from 1996 to 2001 and will continue to grow proportionately to approximately 30% of the total population in the 2020 to 2030 period as the baby boomers age. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 4-12 5.0 SITUATIONAL ASSESSMENT 5.1 Current Assessment In examining the trends, comparable facilities, and the consultation results, the following key situational considerations emerged: · Walking, particularly social walking, as an activity is experiencing growth and is anticipated to experience potentially significant growth over the next ten to twenty years as the aging population emerges at the higher age cohorts. · Up to ten social walking groups and venues exist in the Waterloo Region, involving 1,000 to 2,000 participants per day. · The Waterloo Recreation Centre is seen by many as an excellent facility; is heavily used by a diverse range of users, both organized and unorganized; but is increasingly crowded and operates within a limited revenue framework. · Specialized walking activities are starting to emerge in terms of Stroller Moms, Cardio Rehab and other specialized interests and needs. · The walking track market appears to have for distinct segments: o Social walkers - primarily seniors over the age of 60 who walk in malls based on three primary benefits: · Physical fitness/cardio enhancement · Socialization · Visual stimulation/getting out into the community. o Minor youth training interests/adult fitness users - individuals who tend to be less social-based in terms of their need and are focused on running, jogging, stretching or other activities to enhance fitness and cardio performance and/or reduce injuries. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 5-1 o Area Secondary School physical education, health and training programs. o Track and field athletes - requIrIng training and meet/tournament quality level facilities. · Social walkers tend to operate within informal clusters, often involving hundreds of participants over the course of the year and work on an ad hoc basis in terms of when people come, how long they stay and what level of social interaction they engage in. It is very individualized and driven by the individuals' perspectives, needs and situations. · Youth athletes/adult fitness individuals and secondary school students tend to be working within a fitness regime that has performance measures in terms of distances run, calisthenics undertaken, etc. The social dimension would be a non or minor interest. · Malls are a popular social walking venue, as they offer the following key amenities: o Good to excellent walking circuits. o A food court for post-walking social activities. o A lot of variety and visual stimulation. o Significant parking. o On-grade access. · Mall walking environments have the following constraints: o Hard surface floors, which become increasingly difficult with age relative to knee, ankle and hip limitations and pain. o Only available from 7:00 a.m. to 9:30 a.m. on a sole use basis. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 5-2 · Multi-use walking tracks have the benefits of: o Day-long availability and open on demand access. o Respond to multi-use preferences and needs. o Can have rubberized floors. · Multi-use walking tracks have the following limitations: o Some conflicts between different user groups in terms of pace, passing lanes, entitlements and other considerations that have some safety perspectives. During high-use times, track marshals may be required. o Often do not have the capability to really satisfy the higher level needs of the fitness, minor athlete training and track and field participants in terms of quality of surface, freedom to operate and to deliver a focused fitness participation environment. · Revenue generation possibilities to date in most municipalities that have such walking tracks appear to be very limited. If revenue generation is a key consideration, the advice provided was to initiate a user fee from the outset, as conversion from a free to a user fee based operation can be very challenging. · YMCA and fitness-oriented tracks tend not to be popular or well used by social walkers, as they have significant constraints on how social walkers can participate. A key constraint is having to walk in a single file, which does not facilitate socializing and "chatting," or they do not permit strollers or assistive devices. 5.2 Policy, Design and Management Perspectives From a policy and program development perspective, the following considerations emerged: · Walking and walking track usage is a popular, low-cost, high-socialization fitness activity that can be participated in by all age groups, has a particular interest to seniors and supports cardiovascular and related activities. One of the primary motivators for getting into social walking is a doctor's recommendation or post-cardiac event need. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 5-3 · Relative to indoor vs. outdoor walking, the cold winter weather, the hot and humid summer weather, pollution, rain and wind and other constraints reduce the ability to regularly undertake individual walking programs. A sense exists that increasing interest in indoor facilities will evolve due to the socialization opportunities, but also relative to the consistency of opportunities that these venues offer. · The low cost of participation and the informality of use provides a programmatic alternative and balance to the more typical fully scheduled, maximized use perspectives. · Supporting walking and fitness running is an investment in improved resident health and wellbeing that can benefit the health care system and the community. · Potentially six lanes may be needed so that running and walking could cohabitate, with a dedicated lane for passing. · Support facilities in terms of a food court/assembly room and related amenities. · A rubberized surface of a higher quality is required to meet all the needs of the different user groups. · Need to be concerned as to whether a walking facility is simply an add-on to an arena and boxing centre or whether it can contribute to creating a community centre environment. · Location should be away from the Waterloo border in order to gIve greater geographic dispersion and to attract new users who are location sensitive. 5.3 FIT Perspective Another consideration put forward was the fit of a walking activity within an arena. The new twin pad design is not like the Waterloo Recreation Centre, which has a significant separation from the ice surface to the walking track due to the seated bowl area. In the new twin pad, the walking facility would be in very close proximity to the ice. This design relationship could result in: · The air temperature being colder in the walking area, which could be of concern to seniors, young children, those with disabilities and others. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 5-4 · A lot of noise and yelling from the ice surface that could interfere with conversations and acti vi ty on the track. · The potential flipping of pucks up into the walking area. · Spectators crossing the track to get to the arena seating and viewing areas. In light of these considerations, the concern was expressed as to whether something is being fitted into an environment where maybe the fit is not as good as it needs to be. However, other centres, such as Orangeville and Goderich, report few such problems and have put up full netting in order to overcome the puck problem. 5.4 Revenue Perspective From a revenue perspective, it was recognized that there is likely limited revenue opportunities unless there is a fee for service for all users of the facility. The argument for such a fee would be that there is space dedicated for the walking/running function, which has utility and maintenance costs and needs operational supports. Municipal operators use Honour Boxes which appear to have diminishing use. YMCA's have controlled access and use membership and day passes to generate increased revenues. 5.5 Operating Models One of the possibilities discussed was a multi-use track similar to the Waterloo Recreation Centre. However, such a model could require track marshals as there could be use conflicts. This would occur if parallel activities were to occur simultaneously. The other scheduling model, relative to multiple use, would be to have blocks of time for social walking, running, club use, etc. This model would reduce the intergroup conflicts in terms of pace, crowding, etc. It would require an operational philosophy/vision that focuses on scheduled use and a reduced focus on drop-in or continuous open access utilization. 5.6 Demographics Some 60% of the City's forecasted 40,000 population growth will occur in South Kitchener over the next fifteen to twenty years. Also, the older age cohorts have grown by 8.5% from 1996 to 2001 based on census data and will grow to potentially 25% to 30% of the City's total population by 2020 to 2030 representing potential 70,000 residents. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 5-5 5.7 Summary The following perspectives were identified: · Walking is a recognized and leading recreational activity that has significant social policy benefits in terms of health, fitness, socialization and related benefits. · Walking is likely to increase as a recreational activity due to the physical fitness and social benefits, especially amongst an aging population which Kitchener will experience. Therefore, access to such facilities, especially in the winter months, could grow significantly. · Need to determine what the walking track is to focus on in terms of market segments and align the design and program vision to the selected market segments. · Need to recognize that one walking track for all types of user interests will not satisfy all segments of users. A compromise is required that targets specific user interests. · The current twin pad facility and boxing centre is an arena-first facility. Any walking/running track would be an add-on to such a facility, though could expand the community centre environment opportunity. · The Waterloo Recreation Centre provides track and field club training opportunities. The clubs have indicated to staff that they are not particularly interested in the Kitchener initiative if it had a walking orientation or focus, thus reducing the target audience to social walkers, joggers and youth club use. · Wide recognition that such a facility has the potential to contribute significantly to the Healthy Kitchener initiative and to key policy directions of the federal, provincial and municipal governments related to developing healthy communities and providing a balanced array of scheduled and non-scheduled leisure, fitness and social activities for residents. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 5-6 6.0 STRATEGIC DEVELOPMENT ALTERNATIVES 6.1 Pro and Con Alternatives Arguments for Development of the Walking Track · Provides a geographically differentiated alternative to the Waterloo Recreation Centre that would create new use/user opportunities that are currently unutilized by residents in close proximity to where 60% of future population growth will occur. · Investment is aligned with the increasing emphasis on walking as a physical fitness, health and social enhancement activity for all ages and abilities, including the growing seniors population. · Provides growth opportunities for indoor walking and responds to the increasingly crowded nature of the Waterloo Recreation Centre utilization profile. · Will create a broader recreation centre perspective for the twin pad facility, as it would allow participation by many individuals of all ages who may not have a direct interest in ice-based activities. · Could serve the social walkers and minor youth groups/adult fitness perspectives, but would not serve track and field athletes. · Creates opportunities for users to overcome inclement weather, heat and humidity, smog, cold weather and other barriers to walking outside, thus enjoying walking and/or sustaining a regular walking/running regime. · If developed with a rubberized surface, would allow some seniors to walk longer distances and for more years, as it would reduce stress on their ankles, knees and hips. · Would provide more balance in recreation programming opportunItIes, offsetting highly scheduled and regimented uses by allowing more informal, self-directed activities. This would appeal to a much broader base of residents as potential users and not requiring them to become involved with seven-week programs on selected dates and specific times. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 6-1 · Would facilitate the availability of a walking track that could not be developed on a stand- alone basis within a feasible context. · Would allow the facility to be available in 2008 vs. waiting until likely 2013 or later when the next major recreation facility is being considered that has the size and scope to support a walking track. · Facilitates a multi-use environment for family use and multiple group activities, which has enhanced customer service and participation benefits. · Does not defer the development of a walking track, which will likely emerge in the future, but at a significantly higher cost, as construction prices are impacted by ongoing inflation. · Significant evidence that other municipalities are moving actively in the development of tracks within arena environments, such as the recently opened facilities in Goderich and Orangeville, design consideration being given for a walking track in the new Elmira arena and in numerous other facilities. Arguments Against Moving Forward With the Walking Track · The social walkers, which reflect the largest volume of use, particularly amongst seniors, are likely proportionately to stay more engaged with the mall environments due to the legacy of that type of activity, the high comfort levels, the visual stimulation, the retail connectivity, the food court amenities and on-grade access. · Low potential for revenue generation due to the resistance of seniors and other constraints as experienced in other facilities, which mostly do not charge admission. The realization that there will be some direct operating costs, in regards to track monitors, utilities, etc. · Potential use conflicts in terms of runners vs. walkers, the different paces of walking, strollers and related uses trying to use a multi-use facility. · Use levels cannot be adequately predicted prior to the investment, as the use is relatively informal, unorganized and self-directed which is unlike other recreation facilities where demand analysis can be developed from organized group's willingness to purchase blocks of time, ice, etc. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 6-2 · Other alternatives exist in terms of the multiple mall walking groups, which have been successful, the Waterloo Recreation Centre, RIM Park, the use of pyloned walking tracks and gymnasiums, such as the Stanley Park Community Centre and other locations, though many are crowded at selected times and some of the multi-use adapted environments have short walking distances, which are unappealing to more committed walkers. 6.2 Feasibility Assessment Conclusion The following key considerations emerged from the research and consultation regarding the potential development of an indoor walking/running track at the new twin pad arena: · A walking/running track would respond to the interests of social walkers, as well as fitness- oriented runners and youth sport teams. It would not serve higher end fitness participants or track and field clubs, as the facility would not have the quality level and related requirements needed to support these specific activities. · A three to four-lane walking/running track will likely be developed by the City of Kitchener at some time. The question is not whether one will be developed, rather more as to location, fit and timeframe. · A multi-use track, similar to the Waterloo Recreation Centre, that has both parallel walking and running activities, along with some selected dedicated times is seen as the most effective and efficient use vision for the facility. · Mitigation procedures can be undertaken to reduce conflicts via: o Netting the whole ice pad. o Having runners and walkers move in opposite directions to each other. o U sing track marshals during peak times as required, especially during events or tournaments where spectator audiences may be larger, as well as using design considerations that may facilitate reduced conflicts. · An indoor walking/running track is consistent with and supports healthy lifestyles initiatives, the Healthy Kitchener Initiative, provides for seniors and others with physical constraints to be more active over longer periods of time and other health, social and community benefits. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 6-3 · Such a facility would also provide greater balance in terms of programmed and non- programmed/self-directed leisure activity pursuits for the residents. · The costs identified for such a facility appear to be significantly higher than for Orangeville and other locations. However, this level of cost is likely going to be incurred in whatever facility emerges in the future, but at an inflation-based higher cost if the proposal is deferred. · Supporting amenities will be important, such as use of the change rooms when available; a coffee area, especially in the mornings; notice and information boards, etc. · Developing some social walking programming supports, such as the Millennium Program at RIM, the YMCA facility in Goderich or the Stanley Park Walkers, where destinations are identified, distances are tracked and reward systems are established will create more interest and use. This can be undertaken through a volunteer leader and others as occurs in a multitude of social walking and related programs. · Revenue generation potential from such a facility, as in all current applications except YMCAs, is marginal to nil. Even if a user fee is charged, the total income will likely be limited. However, consideration needs to be given from a policy perspective, that charging initially is an easier strategy for implementing a fee for service vs. trying to convert a free use to a paid use in the future. · Defining absolute demand levels for such a facility is a challenging task because it is self- directed and informal in virtually all its use formats. However, it is evident that there are over 1,000 social walkers a day participating at various Kitchener venues and over 2,000 per day regionally, many of them Kitchener residents. Social walking clubs identified an interest in such a facility and some members would participate. New audiences would also be tapped into as has occurred in the other centres. Therefore, along with the health and wellness policy considerations, there is evident interest in an indoor walking/running track that could likely attract, with some marketing and volunteer programming support, over 300 individuals per day and potentially 2,000 to 3,000 participants per month. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 6-4 6.3 Strategic Development Alternatives .1 Introduction Three strategic development alternatives have been identified in regards to the City of Kitchener's response to the potential development of a walking/running track at the new twin pad arena. These are: · Do not invest in a walking/running track. · Defer the investment from the twin pad arena development and assIgn it to the South Kitchener District Community Centre project. · Proceed with the twin pad arena walking/running track investment. .2 Do Not Invest in a Walking Track The rationale for this particular strategic development alternative responds to the following points: · No broad-based grounds well of interest has been identified by staff. · The fit of such a facility within an arena environment may create various operational and user conflicts, resulting in lower user experience quality and increased operating costs. · Revenue potential ranges from zero to very limited, in order to offset operating costs for the space, including potentially some direct operating costs for periodic track marshals needs. · Other walking/running opportunities exist within the Twin Cities, ranging from mall walking, to community centre gymnasiums, to Waterloo-based indoor facilities, to outdoor programs. · The level of investment is high compared to the potential benefits, particularly since demand cannot be measured similar to an arena, aquatic centre, community centre or related-type facili ty proposals. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 6-5 · The primary assessments that do not support this development alternatives are: o The increasing popularity of walking and the anticipated growth in this activity. o The increasing interest in indoor walking/running in light of individuals wanting more regularized, year-round walking/running opportunities that are not impacted by weather conditions, humidity, allergies, etc. o The increasing emphasis on healthy lifestyle investments that reduce health care costs and improve resident health and vitality. o The fact that similar facilities in other communities tend to attract many new users, often users who are not associated with the primary functions within a recreation facility, such as ice-based activities, resulting in a broader facility user base. o An enhanced quality track, i.e.: rubberized surface, would appeal to a significant portion of the social walkers in terms of being able to walk longer distance per participation time, as well as more years, which cannot be provided in mall or outdoor settings. o A low/no cost, informal and self-directed activity would contribute to providing a balancing of scheduled and non-schedule recreational activities for residents. This strategic development alternative would suggest that the technical and operational concerns, the fit issues, along with the financial investment requirements, outweigh the health, fitness, demand, strategic trend and related considerations. This decision would also minimize the view that having such a facility in the southern areas of the City would provide greater accessibility to the area's population, attract new user audiences through enhanced accessibility and would be able to support wheelchair, stroller and other types of use that would broaden the audience base. This strategic development alternative is identified as inconsistent with key public policy initiatives, including those associated with the Healthy Kitchener project, key trends, Department interest in broadening user audiences on a self-directed basis and increasing accessibility for all levels of interest and abilities. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 6-6 In this alternative, the technical and operational concerns, along with the financial perspectives, would be assessed as being more critical than the trends and the consultation input that are more supportive to such an initiative. .3 Deferral to the South Kitchener District Community Centre This strategic development alternative commits to develop an indoor walking/jogging track as part of the scope of development for the proposed South Kitchener District Community Centre, currently scheduled for potential opening in the 2013 period. The scale of this facility, the multi-use focus, the location and related perspectives would indicate that it has the potential to reflect more of the development strategies connected with the Waterloo Recreation Centre, RIM Park and Goderich type facilities. The key strengths of this particular initiative are: · Potential development of a larger and higher quality walking/running track facility within a more broadly-based multi-use facility if it were to be developed in the context proposed within the Community Services Master Plan. · Would defer the capital cost of such a facility for another seven to ten years. · Would likely have an improved technical user environment and be more integrated operati onall y . · Revenue potential may be marginally better in that staff would likely be available, within a more broadly-based facility, to collect fees, etc. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 6-7 The key negative perspectives to this strategy are: · A walking/running track will be significantly more costly in seven to ten years. · Walking will likely have increased substantially In terms of interest and levels of participation over that period. · Responding to demand in the interim period will be difficult, as no other facility initiatives of the scale necessary are scheduled, and retrofitting a facility may be more expensive. · Providing indoor walking/running opportunItIes that distant in the future would create a significant amount of lost opportunities for Kitchener residents and put increasing demand on existing facilities, some of which are crowded. · The strategy is potentially inconsistent with the Healthy Kitchener Initiative and the key health, socialization and other trends reflective of an aging population and developing healthy communities. · The uncertainty of the future opening date for the South Kitchener project could extend the lost opportunities and lack of availability of such a facility beyond 2013. The deferral strategy could have technical strengths in terms of potentially creating a better fit within a large multi-use district recreation complex that is proposed to potentially have an indoor pool, community centre, possibly a twin pad arena, etc. However, the uncertainty of the date and the scale of that facility that is some five to ten years away, would jeopardize the availability of a walking/running track. In fact, if demand levels were to continue to grow as anticipated, and walking and fitness-based activities become more of a health and social policy priority, consideration may be needed for a second such walking/track facility in the longer term future that could be part of the District Community Centre. The population growth and demographic growth assessment, the fact Waterloo already has two facilities and that many smaller population centres are moving in this direction would suggest the possible need for additional facilities. The deferral strategy may have conceptual appeal, but could result in significantly higher development costs, lost opportunities and may not be available for a significant period of time. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 6-8 .4 Proceed With the Twin Pad Arena Walking Track This strategic development alternative would support the proposal to develop a three to four-lane walking track at the developing twin pad arena facility. The key strengths to this proposal are: · By the fall of 2008, it would provide Kitchener residents a venue on a more geographically dispersed basis that would service both current walkers/runners, as well as introduce the activities to large untapped geographic-based audiences. · Would cause the twin pad facility to become more of a community centre and less of an arena, recognizing that its primary function will be ice activities. · Responds to key social policy initiatives on health and wellness, as well as the anticipated growth in demand that was expressed through the various social walking groups and some youth sports organizations. · Provides opportunities for social walkers, particularly seniors, to walk longer periods of time per visit and for more years if a rubberized floor is provided. · Creates the opportunity for users to develop and participate in regularized fitness activity not impacted by daily weather conditions. The key concern perspectives related to such a facility are: · Need for some mitigation of noise and pucks impacting the walking/running area, such as has occurred in Orangeville. · Represents a significant capital investment in essentially an arena-focused facility where the overall environment may not be totally ideal for walking/running. · Has potential operational impacts in terms of spectators crossing the track, limited lanes to accommodate both walking and running, strollers, etc. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 6-9 This strategic development alternative would identify the walking/running track as a priority investment, consistent with emerging social and health policy priorities and reflective of the input received from various community groups and individuals who participated in the consultation program for this project. Though a substantial investment as identified by staff and others, the timeliness, the potential benefits, the level of interest and the experience in other communities where new audiences and users are attracted to such a facility, support the initiative at this time. It would also be supported at this time from the perspective, that the next new facility development of an appropriate scale, is some seven to ten years into the future. 6.4 Recommendations The following recommendations are made in terms of a walking/running track at the new twin pad facility in the City of Kitchener. Recommendation #1 - Walking/Running Track That the City of Kitchener pursue the development of a new walking/running track for City of Kitchener residents as an additional facility initiative within the twin pad arena project. The recommendation is to proceed with a walking/running track in the City of Kitchener. The primary rationales for this are: · Consistency and responsiveness with social and health policy relative to a growing and aging population in Kitchener, supporting regularized fitness activities, positive socialization experiences, etc. · Levels of interest expressed by community groups, walkers, runners and others. · The timeframe before another facility of appropriate scale and magnitude would be available for such an initiative. · The use pressures on the current facilities, particularly the Waterloo Recreation Centre. · The increasing market interest in participation in walking, youth sports, cardiovascular and self-directed fitness jogging/running activities. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 6-10 · The lack of current opportunities within the City of Kitchener for Kitchener residents. · The greater dispersal of such a facility within the Twin Cities that would address market segments/audiences that are further removed geographically from currently available facilities Recommendation #2 - Walking/Running Track Profile That the proposed walking/running track have the following design, operational and related considerations: · Three to four lanes in width. · Parallel user opportunities to be offered on a drop-inlself-directed basis for social walkers and runners, moving in opposite directions on the track, plus a limited amount of dedicated use times. · Use of track marshals during higher spectator use times for the arena or peak use times on the track. · Netting around the total ice pad to be utilized for the walking/running track. · Development of a volunteer leader position and supporting volunteers that would establish walking distances and motivation programs to increase social walking interest. · Offer accessibility to a coffee room or food court arrangement that would support social walkers. · Minimize restrictions on stroller, abreast and related walking activities. The design and operational considerations are reflective of the Waterloo Recreation Centre experience with additions associated with protective netting, opposite movement use as identified in Orangeville and ensuring social walkers have a user framework that appeals to them. The social walking component is important, as this is where the largest growth can be anticipated. The rubberized track will also appeal to seniors and the aging population across the City of Kitchener. As well, the younger family orientation of the new housing areas in South Kitchener will be served. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 6-11 Recommendation #3 - User Fees/Revenues That the City of Kitchener initiate this project using an Honour Box at the key access door to the track for a two-year period, and then move to potentially a $1.00 per use strategy in the future. The Honour Box concept introduces the notion of payment that could facilitate conversion to a pay for use system later. The Honour Box needs to be well identified, expectations to pay need to be created and demand allowed to reach its peak before a regularized payment program emerges. It is not apparent that there will be significant revenues generated. As a counterpoint, the City could consider not instituting payment for such a program, as it does involve a significant seniors' population where affordability is an issue, and the fact that the overall project is an investment in improve resident health and fitness that has benefits to the health care system and to the community. Also, challenges in collecting the fee, having staff available to process cash, etc. may mitigate against a regularized fee program. A payment system may be better utilized over the longer term as a way to manage peak times if overcrowding were to occur. As a result, this recommendation is limited in scope and requires a policy- based perspective in terms of the investment being made compared to the benefits achieved that do provide social and economic returns to individual residents and community at large. Also, it could be challenging to collect and process the fees, to the point where such a strategy could incur more costs than the revenues that are produced. CITY OF KITCHENER TWIN PAD WALKING TRACK FEASIBILITY STUDY PAGE 6-12 December 8, 2006 Dear Mario Petricevic Re: LEED for the Kitchener Twin Pad Arena Enermodal, with input and assistance from the design team, has completed a LEEDjSustainability analysis of the project. At this time we have identified 37 "targeted" credits, indicated on the attached LEED Scorecard, which is sufficient to achieve the City- mandated "Silver" level of LEED certification. The estimated cost for achieving these 37 credits is approximately $625,000. In addition to these targeted credits there are 4 "pending" credits, which we will not be able to determine the performance of until the completion of construction. We feel that this project is well positioned to achieve "Gold" status, a higher level of LEED certification requiring achievement of at least 39 credits. However, achieving this higher level of certification would require an additional investment from the City. Below is a list of the proposed credits to target if the City of Kitchener would like to pursue LEED Gold, the estimated cost of each measure, and the associated benefits. These credits were selected for consideration based on feedback from the design team, the added benefits, and the appropriateness to this project's goals. 1. SSc7.2 Heat-Island Effect, Roof This credit's intent is to reduce the thermal gradient between developed and undeveloped spaces, which affect the microclimate, human and wildlife habitats. A reflective and emissive steel roof will be utilized over the ice surfaces, however additional flat roof areas must also use a reflective and emissive surface to achieve this credit (the base building is to use a modified bitumen surface). There are two proposed methods of achieving this credit: a) Utilize an inverted roof system with reflective white pavers. There would be no energy savings associated with this roof due to Kitchener's climactic region. However the main advantage for using pavers is to provide a more accessible (user friendly) surface for maintenance staff accessing roof-mounted equipment. The estimated cost for an inverted roof system is an additional $25,000. b) Utilize a green (vegetated) roof system. An extensive (shallow soil depth) green roof experiences lower surface temperatures than a standard roof because it contains moisture; approximately 500/0 of the incident rainfall is absorbed (reducing storm water ru noff), a portion of wh ich is retu rned to the atmosphere th roug h evapotranspiration. The proposed green roof is 3000 ft2, which represents less than 50/0 of the total building footprint. With such a relatively small green roof, the quantifiable benefits are almost negligible: a 20/0 reduction in roof storm water runoff, and approximately $75 in annual energy savings from reduced heating and cooling loads. The greater value in a green roof at this location would be the soft benefits: the associated aesthetics of a rooftop garden, and the educational value of such a technology to the public. The proposed green roof would be positioned such that it would be visible to the public through second-floor windows. The green roofs however require significantly more maintenance than a standard roof, especially during the first two years as the plant media is being established. The estimated cost for a green roof system is an additional $50,000. 2. EAc1 Optimize Energy Performance There are up to 10 credits available for reducing the building's energy consumption; we are currently targeting 5 (approximately 450/0 savings) credits through the use of several efficiency measures. Two additional measures proposed for consideration are tempering outdoor air to the offices, lobby and boxing club with Heat Recovery Ventilators, and recovering additional waste heat from the ice refrigeration system to preheat hot water. These measures will reduce building consumption by approximately an additional 50/0 ($8,500 annually) and would qualify for an additional LEED point. The cost of these additional energy saving features is estimated at $100,000. 3. EAcS Measurement and Verification The Twin Pad will have a Building Automation System to monitor and control several of the major building components. To increase the accountability and optimization of the building's energy and water consumption over time, additional monitoring sensors would be required in order to break out each major load individually. In addition, a consultant would need to be engaged to develop and Measurement and Verification Plan and reassess the building's performance after one year of operation. These results would be compared against the energy simulation predictions performed at the completion of the design. The estimated cost for the additional consulting services and monitoring equipment is $40,000. If all three of the above credits are to be pursued by the City, an additional $165,000 is required ($190,000 for a green roof rather than pavers). This would increase the total number of targeted credits to 40, above the threshold for Gold certification. Yours truly, ENERMODAL ENGINEERING LIMITED .~{:~:.;;~;:~~~: :_~~~:~t~~~_>;'~~:~~;~,~~~: per Connor Twohig LEED 'Silver' vs 'Gold' In September the project team was directed by Council to investigate the costs for taking the project from LEED 'Silver' status to 'Gold'. Three LEED workshops were held with various members of the project team and as a result we ended up with a design which would qualify this project for 37 LEED credits and a 'Silver' standing. To get to 'Gold' a minimum of two additional credits would be required, however, the team is recommending that the following three credits be pursued. 1. Credit SSc7.2 Heat Island Effect, Roof 2. Credit EAc1 Optimize Energy Performance 3. Credit EAc5 Measurement and Verification There are a number of ways to achieve the credit for Heat Island Effect. The least expensive way to do this is by changing 3,000 square feet of black roof membrane to white at an additional cost of $10,000. An inverted roof with white pavers would add $25,000 to the cost and a 'green' vegetated roof would add $50,000. Optimizing Energy Performance by adding heat recovery ventilators and a waste heat recovery system for preheating the domestic hot water will add approximately $150,000 to the project cost, however, we can anticipate saving around $8,500 annually on our energy bills. The third item, Measurement and Verification, will increase the optimization and accountability of the energy and water consumed by the building. Monitoring equipment along with additional consulting services would be required to compare the energy predictions to actual performance after one year of occupancy. The additional cost for this item is approximately $40,000. Total cost to achieve these three credits and thereby putting the project in a good position to receive a LEED 'Gold' standing is between $200,000 and $240,000. This money is currently not in the project budget and would have to be approved by Council. A more detailed description of the three credits along with a breakdown of their costs can be found in the attached letter from Enermodal Engineering dated December 8, 2006. Green Roof The project team was also directed, by Council in September of last year, to investigate the possibility of putting a 'green' roof on the new facility. A 'green' vegetated roof helps this project in a number of ways. First of all, we need to cover an additional 3,000 square feet of roof area with a highly reflective and emissive roofing material or a vegetated 'green' roof in order to meet the requirement for LEED credit SSc7.2 Heat Island Effect, Roof. Also, a 'green' vegetated roof system reduces the heating and cooling load on the building and will save approximately $75 annually in energy costs. It experiences lower surface temperatures than a standard roof and slows deterioration of the roofing membrane. It absorbs approximately 50% of the rainfall which reduces the amount of storm runoff and returns a portion of this moisture to the atmosphere through evaporation. The greatest value in a 'green' roof at this location, however, could be in the 'soft' benefits such as public education and awareness with respect to the environment. The downside is that these types of roofs are expensive to install and require more maintenance than a 'conventional' roofing system particularly in the first two years until the plant material is established. In this case, we are looking at installing 3,000 square feet of roof at approximately $50,000 over the cost of a conventional single ply membrane roofing system. This item has not been included in the current project budget and will require Council's approval for additional funding should the project team be directed to proceed with this installation. LICENSE AGREEMENT BETWEEN THE CORPORATION OF THE CITY OF KITCHENER (Hereinafter referred to as the "City") Party of the First Part and WATERLOO REGIONAL BOXING ACADEMY (Hereinafter referred to as the "Licensee") Party of the Second Part WHEREAS the City is the owner of premises known as the Hanson Avenue Twin Pad located at the municipal address of 135 Hanson Avenue, Kitchener, Ontario (hereinafter referred to as the "Premises"); AND WHEREAS the Licensee wishes to obtain a license to use a portion of the Premises as office and storage space along with seasonal exclusive use of the designated dressing room for employees, volunteers and participants (boxers and parents of boxers) of the Licensee; NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of the mutual covenants contained herein, receipt of which is hereby mutually acknowledged, the Parties hereto agree as follows: 1. GRANT OF LICENSE (a) The City hereby grants the Licensee a license to use approximately 7200 square feet in the Premises as a boxing facilty including an office, storage space and a fitness room (the "Licensed Area"), on the following terms and conditions. A description and diagram of the Licensed Area is specifically set out in the attached "Schedule A". (b) This License Agreement will commence upon the City granting in writing to the Licensee a permission to occupy the Licensed Area of the Premises which permission to occupy will take place on or about July of 2008. This License Agreement will expire twenty (20) years after the Licensee is granted a permission to occupy by the City. (c) The Licensee shall pay to the City a monthly License Fee of Nine Hundred and Ninety Dollars ($990.00) per month for space occupied in 2008, and for subsequent years thereafter commencing on January 1, 2009, the Licensee shall pay Nine Hundred and Ninety Dollars ($990.00) per month plus Council approved annual inflationary increases consistent with City fees and charges 2 increases. The License Fee includes utilities and the exclusive use of the Licensed Area by the Licensee. (d) The City and the Licensee agree that the Licensed Area will be used only by employees, volunteers and participants (boxers and parents of boxers) of the Licensee, unless prior written authorization for use by other entities is given by the designated representative of the City. (e) The entire Premises including the Licensed Area will be owned and managed by the City. The Licensee will be responsible for the full schedule of programming for the boxing facility. (f) The City and the Licensee agree that the Licensee will not allow the use of or use the Licensed Area in such a manner that may result in a breach of any law, statute, by-law, or City policy. (g) In the event that the Premises or Licensed Area, or any part thereof, shall be destroyed or damaged or rendered unsuitable for use by the Licensee, as a result of fire or any other casualty, strike, lockout, labour dispute, accident, unforeseen occurrence or Act of God which prevents, interrupts or interferes with the fulfillment of this License Agreement by the City, then the City shall not be responsible for any damages caused thereby and the City may terminate this License Agreement. However, the City shall use it best efforts to assist in finding the Licensee an alternative facility, but the City does not guarantee and is under no obligation to provide a replacement location. (h) This License Agreement may be terminated by the Licensee for any reason upon the issuance of twelve (12) months' written notice to the City. Such notice shall be given to the appropriate designated representatives of the City. (i) If any term of this License Agreement is breached by the Licensee and the breach is not remedied within two weeks after receiving written notification from a designated representative of the City, the License Agreement shall be terminated by the City immediately. G) The City and the Licensee agree that if at any point during the term of this License Agreement the Licensee ceases to be a minor affiliated sport group of the City, the City shall terminate the License Agreement by the issuance of thirty days' written notice to the Licensee. 2. OBLIGA TIONS OF THE CITY (a) The City will provide the Licensee with a set of keys to the front door of the Premises and to the door of the Licensed Area. The City will provide additional key sets upon request (at the Licensee' s expense). At no time is a set of keys to be duplicated by the Licensee. In the event that key sets are lost or stolen, the Licensee will be responsible for any costs associated with re-keying of the Premises and the Licensed Area. (b) The City will allow the Licensee twenty-four (24) hour access to the Licensed Area of the Premises. 3 (c) The City will coordinate the installation of telephone services into the Licensed Area. However, the Licensee will be responsible for all telephone installation, service and long-distance charges. (d) The City agrees to provide access to the parking lot of the Premises for the use of employees, volunteers, and participants (boxers and parents of boxers) of the Licensee. (e) The City will provide snow plowing and ice removal services to clear obstruction from the entrance and driveway of the Premises. 3. OBLIGATIONS OF THE LICENSEE (a) The Licensee and its employees, volunteers and participants (boxers and parents of boxers) shall be responsible for the alarming of the Licensed Area if leaving the Licensed Area during off-hours. The Licensee shall also be responsible for all costs incurred with any false alarms arising from the interactions of the Licensee and the employees, volunteers and participants (boxers and parents of boxers) of the Licensee with the alarm system. (b) The Licensee shall be responsible for the provision of all the furnishings and equipment in the Licensed Area. (c) The Licensee shall use its best efforts to maintain the Licensed Area in a neat and tidy condition. The City shall provide one (1) daily weekday custodial maintenance for the occupied space of the Licensed Area. The City shall have the right at all times to enter the entire Licensed Area or any portion thereof for the purpose of inspection and/or for the purpose of maintenance and cleaning of a major nature. (d) The Licensee shall be permitted to sublet the Licensed Area to other sports organizations, subject to receipt of prior written authorization from the City. (e) The Licensee agrees not to make any alterations, renovations or improvements to the Licensed Area without receiving the prior written approval from the City. (f) The Licensee agrees that the storage of flammable liquids or gas or other hazardous products or equipment is prohibited in the Licensed Area. (g) The Licensee will provide to the City, annually, an up-to-date inventory of all equipment and supplies stored in the Licensed Area. The City reserves the right to refuse the storage of any items which it deems to be unreasonable, unsafe or hazardous in nature. (h) The Licensee agrees that the provision and consumption of alcoholic beverages is prohibited on the Premises and in the Licensed Area except in such circumstances wherein a liquor license has been obtained by the Licensee from the appropriate government authority for an approved area of the Premises. 4 (i) The Licensee will be responsible for any and all costs of repair to the Premises, and to the Licensed Area which arise from the negligence and/or willful damage of the Licensee and/or the employees, volunteers and participants (boxers and parents of boxers) of the Licensee. G) The Licensee shall bear the responsibility for the loss or damage to any and all property belonging to the Licensee, its employees, volunteers and participants (boxers and parents of boxers). Any and all chattels belonging to the Licensee, its employees, volunteers and participants (boxers and parents of boxers) will be left in the Premises at the sole risk of the Licensee. (k) The Licensee shall indemnify, defend, save and hold harmless the City against any and all claims including, without limitation, all claims for personal injury, death, property damage, or nuisance relating to the Licensee's use of the Premises and/or Licensed Area arising out of the conduct of any work or by or through any act, deed, or omission of the Licensee or any agent, contractor, servant, employee, volunteer, invitee, member, guest or participant (boxer and parents of boxers) of the Licensee, and against and from all costs, reasonable counsel fees, expenses and liabilities incurred in or about any such claim or any action or proceeding brought thereon. (I) The Licensee shall deliver to the City certificates of good standing from the Workplace Safety and Insurance Board (WSIB) with respect to all employees of the Licensee required to be insured under the Workplace Safety Insurance Act (Ontario), as amended from time to time, and shall provide such additional certificates as often as is deemed necessary by the City during the term of this Agreement, but in any event shall provide such a certificate at least annually on the anniversary date of the commencement of the term of this Agreement. The Licensee shall be responsible for all charges, assessments or other payments required to be paid by the WSIB with respect to the employees of the Licensee. (m) The Licensee agrees to be a lead sport partner in the Two Million Dollar ($2,000,000) Twin Pads capital campaign, and further the Licensee shall make a Two Hundred Thousand Dollar ($200,000) minimum contribution to the Twin Pads capital fundraising campaign according to the following schedule: January 1, 2008 - $200,000. (n) In exchange for the capital contribution by the Licensee as required in section 3(m) of this License Agreement, the City and the Licensee agree that the Licensee may apply a mutually-agreed upon name to the Licensed Area. 4. COMPLIANCE WITH ALL LAWS, REGULATIONS AND BY -LAWS The Licensee shall ensure that it complies with all laws, regulations, by-laws and City Policies including without limiting the generality of the foregoing, all health, safety, fire and liquor-related regulations and permissions. 5. NOTICE 5 All notices provided herein shall be to the addresses set out below and may be made in person, by fax or by regular mail (in which case it shall be effective 5 business days from mailing): Waterloo Regional Boxing Academy 135 Hanson Avenue Kitchener, Ontario N2G 2H6 The Corporation of the City of Kitchener P.O. Box 1118, 200 King Street West Kitchener, Ontario N2G 4G7 I/we have read the above License Agreement and sign with authority. DATE DATE DATE DATE ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) THE CORPORATION OF THE CITY OF KITCHENER MAYOR CLERK WATERLOO REGIONAL BOXING ACADEMY NAME: TITLE: NAME: TITLE: LICENSE AGREEMENT BETWEEN THE CORPORATION OF THE CITY OF KITCHENER (Hereinafter referred to as the "City") Party of the First Part and KITCHENER MINOR HOCKEY ASSOCIATION (Hereinafter referred to as the "Licensee") Party of the Second Part WHEREAS the City is the owner of premises currently known as the Hanson Avenue Twin Pad located at the municipal address of 135 Hanson Avenue, Kitchener, Ontario (hereinafter referred to as the "Premises"); AND WHEREAS the Licensee wishes to obtain a license to use a portion of the Premises as office and storage space along with exclusive seasonal use of the designated dressing room for employees, volunteers and participants (players and parents of players) of the Licensee; NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of the mutual covenants contained herein, receipt of which is hereby mutually acknowledged, the Parties hereto agree as follows: 1. GRANT OF LICENSE (a) The City hereby grants the Licensee a license to use approximately 4100 square feet in the Premises as office and storage space, along with exclusive seasonal use (September to March annually) of the designated dressing room (the "Licensed Area"), on the following terms and conditions. A description and diagram of the Licensed Area is specifically set out in "Schedule A" attached. (b) This License Agreement will commence upon the City granting in writing to the Licensee a permission to occupy the Licensed Area of the Premises, which permission to occupy will take place on or about July of 2008. This License Agreement will expire twenty (20) years after the Licensee is granted a permission to occupy by the City. (c) The Licensee shall pay to the City a monthly License Fee of Three Hundred Dollars ($300.00) per month for space occupied in 2008, and for subsequent years thereafter commencing on January 1 st, 2009, the Licensee shall pay Three Hundred Dollars ($300.00) per month plus Council-approved annual inflationary 2 increases consistent with City fees and charges increases. The License Fee includes utilities and the exclusive use of the Licensed Area by the Licensee. (d) The Licensee shall pay the City for ice time use in the Premises in 2008 at an hourly rate equivalent to that paid for ice time use in the Kitchener Auditorium Complex Twin Pad in 2008. For subsequent years thereafter, commencing on January 1 st, 2009, the Licensee shall pay the 2008 Kitchener Auditorium Complex Twin Pad ice time rate plus required annual increases established by Council through the City's Fee and Charges review process. (e) The City and the Licensee agree that the Licensed Area will be used only by employees, volunteers and participants (players and parents of players) of the Licensee, unless prior written authorization for use by other entities is given by the designated representative of the City. (f) The entire Premises including the Licensed Area will be owned and managed by the City. The Licensee shall be responsible for programming the assigned ice time blocks. (g) The City and the Licensee agree that the Licensee will not allow the use of or use the Licensed Area in such a manner that may result in a breach of any law, statute, by-law, or City policy. (h) In the event that the Premises or Licensed Area, or any part thereof, shall be destroyed or damaged or rendered unsuitable for use by the Licensee, as a result of fire or any other casualty, strike, lockout, labour dispute, accident, unforeseen occurrence or Act of God which prevents, interrupts or interferes with the fulfillment of this License Agreement by the City, then the City shall not be responsible for any damages caused thereby and the City may terminate this License Agreement. However, the City shall use it best efforts to assist the Licensee to find an alternative office and storage location, but the City does not guarantee and is under no obligation to provide a replacement location. (i) This License Agreement may be terminated by the Licensee for any reason upon the issuance of twelve (12) months' written notice to the City. Such notice shall be given to the appropriate designated representatives of the City. G) If any term of this License Agreement is breached by the Licensee and the breach is not remedied within two weeks after receiving written notification from a designated representative of the City, this License Agreement shall be terminated by the City immediately. (k) The City and the Licensee agree that if at any point during the term of this License Agreement the Licensee ceases to be an affiliated minor sport group of the City, the City shall terminate the License Agreement by the issuance of thirty days' written notice to the Licensee. 3 2. OBLIGA TIONS OF THE CITY (a) The City will provide the Licensee with a set of keys to all doors of the Licensed Area only. The City will provide additional key sets upon request (at the Licensee's expense). At no time is a set of keys to be duplicated by the Licensee. In the event that key sets are lost or stolen, the Licensee will be responsible for any costs associated with the re-keying of the Licensed Area. (b) The City will allow the Licensee twenty-four (24) hour access to the Licensed Area of the Premises. (c) The City will coordinate the installation of telephone services into the Licensed Area. However, the Licensee will be responsible for all telephone installation, service and long-distance charges. (d) The City agrees to provide access to the parking lot of the Premises for the use of employees, volunteers and participants (players and parents of players) of the Licensee. (e) The City will provide snow plowing and ice removal services to clear obstruction from the entrance and driveway of the Premises. (f) The City shall have the sole authority to make reservations for the use of the Murray Fried Room in the Premises, subject to the Licensee providing first right of refusal reservation dates to the City on an annual basis in January of each year. The City will not charge a fee to the Licensee for reserved use of the Murray Fried Room, provided that the Licensee covers all costs to the City associated with the use of the Murray Fried Room, such as labour for set-up or take down. 3. OBLIGA TIONS OF THE LICENSEE (a) The Licensee and its employees, volunteers and participants (players and parents of players) shall be responsible for the alarming of the License Area if leaving the Licensed Area during off-hours. The Licensee shall also be responsible for all costs incurred with any false alarms arising from the interactions of the Licensee and the employees, volunteers and participants (players and parents of players) of the Licensee with the alarm system. (b) The Licensee shall be responsible for the provision of all the furnishings and the equipment in the Licensed Area, with the exception of four (4) computers and one (1) photocopier, same to be provided at no cost by the budget of the City Athletic Division for five years, such arrangement to be reviewed in the sixth year. (c) The Licensee shall use its best efforts to maintain the Licensed Area in a neat and tidy condition. The City shall provide one (1) daily weekday custodial maintenance for the occupied office space of the Licensed Area. The Licensee shall be responsible for the custodial maintenance of the storage and designated dressing room of the Licensed Area. The City shall have the right at all times to 4 enter the entire Licensed Area or any portion thereof for the purpose of inspection and/or for the purpose of maintenance and cleaning of a major nature. (d) The Licensee shall not sublet the Licensed Area without the prior written approval of the City. (e) The Licensee agrees not to make any alterations, renovations or improvements to the Licensed Area without receiving the prior written approval of the City. (f) The Licensee agrees that the storage of flammable liquids or gas or other hazardous products or equipment is prohibited in the Licensed Area. (g) The Licensee will provide to the City, annually, an up-to-date inventory of all equipment and supplies stored in the Licensed Area. The City reserves the right to refuse the storage of any items which it deems to be unreasonable, unsafe or hazardous in nature. (h) The Licensee agrees that the provision and consumption of alcoholic beverages is prohibited on the Premises and in the Licensed Area except in such circumstances wherein a liquor license has been obtained by the Licensee from the City and from the appropriate government authority for an approved area of the Premises. (i) The Licensee will be responsible for any and all costs of repairs to the Premises and to the Licensed Area which arise from the negligence and/or willful damage of the Licensee and/or the employees, volunteers and participants ( players and parents of players) of the Licensee. G) The Licensee shall bear the responsibility for the loss or damage to any and all property belonging to the Licensee, its employees, volunteers and participants (players and parents of players). Any and all chattels belonging to the Licensee, its employees, volunteers and participants (players and parents of players) will be left in the Premises at the sole risk of the Licensee. (k) The Licensee shall indemnify, defend, save and hold harmless the City against any and all claims including, without limitation, all claims for personal injury, death, property damage, or nuisance relating to the Licensee's use of the Premises and the Licensed Area arising out of the conduct of any work or by or through any act, deed, or omission of the Licensee or any agent, contractor, servant, employee, volunteer, invitee, member, guest or participant of the Licensee, and against and from all costs, reasonable counsel fees, expenses and liabilities incurred in or about any such claim or any action or proceeding brought thereon. (I) The Licensee shall deliver to the City certificates of good standing from the Workplace Safety and Insurance Board (WSIB) with respect to all employees of the Licensee required to be insured under the Workplace Safety Insurance Act (Ontario), as amended from time to time, and shall provide such additional certificates as often as is deemed necessary by the City during the term of this Agreement, but in any event shall provide such a certificate at least annually on the anniversary date of the commencement of the term of this Agreement. The Licensee shall be responsible for all charges, assessments or other payments 5 required to be paid by the WSIB with respect to the employees of the Licensee. (m) The Licensee agrees to be a lead sport partner in the Two Million Dollar ($2,000,000) Twin Pads capital campaign, and further the Licensee shall make a Two Hundred Thousand Dollar ($200,000) minimum contribution to the Twin Pads capital fundraising campaign according to following schedule: January 1,2008 - $50,000. January 1,2009 - $50,000. January 1,2010 - $50,000. January 1,2011 - $50,000. (n) In exchange for the capital contribution by the Licensee as required in section 3(m) of this License Agreement, the City and the Licensee agree that a mutually agreed-upon component of the Premises will be named after Pat Doherty, upon the decommissioning of the Doherty Arena. 4. COMPLIANCE WITH ALL LAWS, REGULATIONS AND BY -LAWS The Licensee shall ensure that it complies with all laws, regulations, by-laws and City Policies including without limiting the generality of the foregoing, all health, safety, fire and liquor-related regulations and permissions. 5. NOTICE All notices provided herein shall be to the addresses set out below and may be made in person, by fax or by regular mail (in which case it shall be effective 5 business days from mailing): Kitchener Minor Hockey Association 135 Hanson Avenue Kitchener, Ontario N2C 2H6 The Corporation of the City of Kitchener P.O. Box 1118,200 King Street West Kitchener, Ontario N2G 4G7 I/we have read the above License Agreement and sign with authority. ) THE CORPORATION OF THE ) CITY OF KITCHENER ) ) ) ) MAYOR ) ) ) ) CLERK 6 ) KITCHENER MINOR HOCKEY ) ASSOCIATION ) ) ) ) NAME: ) TITLE: ) ) ) NAME: ) TITLE: TWIN PAD AMENITIES - FUNDING SOURCES (December 2( FACILITY AMENITIES FUNDING SOURCE TOT AL SQ. TOTAL FT. COST CC DC (million) Basic Twin Pad (some KMHA) 80,780 15.80 3.47 12.33 KMHA needs 5,450 .66 - - WRBA facility 7,626 1.09 - - Walking track 14,631 1.55 - .28 SUBTOTAL 108,487 19.10 3.47 12.61 Less Fundraising - - - - TOTAL 108,487 19.10 3.47 12.61 Twin Ice Pad Original Twin Pad Twin Pad KMHA Boxing Budget Detail Estimate Class BIC Building Ball Const. Ball Const. Ball Const. December 21/06 Estimate Estimate Estimate Budget Budget Budget Budget General Land Purchase Cost of Land Commision (40/0) Legal Fees (20/0) Land Transfer Tax (10/0) Total Land Other Allowances Traffic study 20,800 20,800 Public Consultation 10,400 10,400 Start Up Costs 1 0,400 1 0,400 Topographical survey 5,200 5,200 Geotechnical Investigation 15,600 15,600 Planning Process Storm Water Management Plan 1 0,400 1 0,400 Building Permit Fee 133,120 125,408 8,720 12,20~ Storm Water Management Fee 52,000 52,000 Water Quality Fee 52,000 52,000 Environmental assessment 1 0,400 1 0,400 Total Other Allowances 320,320 312,608 8,720 12,20~ Total General 320,320 312,608 8,720 12,20~ Buildina & Site DeveloDment Buildina Construction 9,085,440 12,733,447 572,741 949,51~ Site Development Grading and clearing site allowance 624,000 Paving and Lighting 936,000 Site Services 228,800 Landscaping 104,000 Twin Ice Pad Original Twin Pad Twin Pad KMHA Boxing Budget Detail Estimate Class BIC Building Ball Const. Ball Const. Ball Const. December 21/06 Estimate Estimate Estimate Budget Budget Budget Budget Total Site Development 1 ,892,800 Other Buildina Design Contigency 60/0 658,694 282,003 17,182 28,48~ Interior Signage 26,000 Total Other Building 684,694 282,003 1 7, 1 82 28,48~ Subtotal 11 ,662,934 13,015,451 589,923 977,99~ Other Continaencies Consultant Fees 80/0 933,035 1 ,041 ,236 47, 1 94 78,24C Construction Contingency 50/0 583,147 Art Fund Fees 10/0 116,629 130, 155 5,899 9,78C Project Management Fees 10/0 116,629 130, 155 5,899 9,78C Total Other Contingencies 1 ,749,440 1 ,301 ,545 58,992 97,80C Total Building and Site Development 13,412,375 14,316,996 648,915 1 ,075, 79~ EauiDment Scoreboard & Clocks 41 ,600 Security System 10,400 Specialized Equipment 104,000 104,000 Zamboni Generator Telephone/computer system 26,000 Sound System 52,000 Specialty signage/lighting 52,000 Building Control System-Ice Cube System premium 318,999 Concession Equipment 130,000 130,000 Furnishing, window covering, refuse containers etc 208,000 208,000 Total Equipment 942,999 442,000 Off Site Traffic Signals ($90,,000 per location) External site work-sanitary sewer Twin Ice Pad Original Twin Pad Twin Pad KMHA Boxing Budget Detail Estimate Class BIC Building Ball Const. Ball Const. Ball Const. December 21/06 Estimate Estimate Estimate Budget Budget Budget Budget External Site Work (turning lane/hydro/water) 572,000 572,000 Total Off Site 572,000 572,000 Other (See Schedule 2) Land for Facilty Replacement Snow Dump Replacement 603,200 603,200 Total Other 603,200 603,200 Subtotal for Project 15,850,894 16,246,804 657,635 1,088,00C Partnership Development Total Project Cost 15,850,894 16,246,804 657,635 1,088,00( KMHA Overview The Kitchener Minor Hockey Association has been in existence for about 80 years. This organization has supported the growth of Hockey in our region and continue to have success providing Hockey programs. The organization has supported the development of a Girl's program that continues to meet all of the expressed gender related priorities of Sport Canada when many other Hockey organizations in Ontario do not. Over the last ten years KMHA had experienced some financial trials that saw them operating with a financial deficit. Through hard work and communication with the City, KMHA has updated their financial operating procedures and have undertaken in depth budgeting and financial planning. The association no longer operates with an accumulated deficit and has improved their financial reporting practices to the satisfaction of the Athletics Division of the City of Kitchener. The KMHA have expressed to City officials that they are in need of a new arena to continue to grow their programs. Kitchener Minor Hockey is an organization with the mission of providing all Kitchener children and youth desiring to participate in Hockey a place to play and to develop their skills. "Every child who wants to play hockey will" is the motto of the KMHA board. This organization has created a phenomenal fee assistance program for players whose families cannot afford the registration fee and/or equipment outfitting costs. The fee assistance program is self sufficient and self funded. This program seeks donations and endowments to offer the ability to assist children from Kitchener to participate in Hockey. In 2005/06 this program offered $80 000.00 worth of assistance helping over 300 children to participate in Hockey at a level appropriate to their skills and abilities. Annually Kitchener Minor Hockey participates in a day long examination of their programs and administration and establishes goals for the up coming season. KMHA has expressed interest in creating a 5 year strategic plan defining a vision, and outlining the areas for long term growth and sustainability. The time frame for completion of this project has not yet been determined. The Kitchener Minor Hockey program is comprised of the following elements; a boys house league and representative program, a girl's travel house league and representative program, FUNdamental Hockey School, Coaching clinics, Kitchener Hockey School (Summer Program) and developmental skills clinics for their participants. The total number of participants is 3766. As with the majority of minor sports organizations Kitchener Minor Hockey is a volunteer driven organization. Utilizing a volunteer base of 2156 people with roles such as coach, manager, administrator, director, convener, bingo worker, social organizer, parent team rep, and trainer; members combine to offer a total of 219 850 estimated volunteer hours to their participants annually. As a member of the Hockey Alliance and Hockey Canada, KMHA are responsible to offer programs in compliance with all regulations established by Sport Canada and Hockey Canada. Annually they live up to these expectations and support our community in striving to live healthy. Lastly the KMHA is an affiliate of the City of Kitchener and is expected to meet all requirements of the affiliation policy. KMHA monthly reports their minutes and financials to Athletics staff as well as meeting all requirements regarding participant composition. Therefore the operations of the KMHA are with in the outlined expectations of the City of Kitchener' s affiliation policy and they are an affiliate in good status. Athletics Staff Opinion It is staff's opinion that Kitchener Minor Hockey is in a stable position to be entering into an operating agreement with the City of Kitchener for space in the new Arena to be constructed at Hansen and Ardelt. The KMHA is financially stable and they have excellent financial controls. These controls include the use of a paid book keeper, user fee budgeting system, and a financial committee that meets monthly to review the operating statements. The Association is also reconciling their City of Kitchener operating grant to reflect the difference in their financial year. The $200 000.00 contribution to the new Arena will be attainable by the Association whom already have in place a plan to generate the funds. The KMHA will be able to meet financial obligations and operating costs as they agree to. They currently have enough financial guidance within their organization that they will not commit to a lease or financial obligation unless they can afford it and have explored it. Currently the KHMA are operating office space out of the Victoria Park Pavilion and have storage space at Goudies Lane and the Victoria Park Machine Shop. Office space is provided at no charge and storage is subsidized at $2.07/sq foot a year totaling approximately $2 400.00 a year. Increasing these costs may be a concern for their board of directors however the KMHA program is large enough to absorb the cost and will increase the ability of the organization to complete its work in a timely fashion. Any cost will need to be negotiated with the Association keeping in mind that their fiscal year does not coincide with ours and we need to assist in keeping them on the best financial footing possible. Boxing Overview Founded in 1986 the club sought to involve troubled youth in the sport of boxing. The club operated predominantly under the direction of their head coach Arnie Biehm and provided mostly high level athlete training. After the passing of Arnie the club operated under the board of directors and a small group of volunteer coaches. The club was troubled by internal politics and people trying to promote personal agendas. The club did however see some success in the growth of a recreational boxing program with the intent to develop boxers into elite athletes. Roughly 2 years ago the club executive changed and they began operating strategically. The club produced a small strategic plan outlining primary club objectives and program objectives. Some of these objectives included · New By-law · New organizational structure · Proper financial accounting · Improved membership clarification and tracking · Appointment of a head coach · Design of code of conduct and discipline policy · Training and improvement opportunities for coaches · Find a new facility Over the last 2 years the boxing club has made significant improvements towards all of above listed objectives. The Waterloo Regional Boxing Academy has 251 registered participants that renew membership on a monthly basis. These members participate in programming ranging from competitive training and boxing to boxercise and basic fitness. All participants must be registered with Boxing Ontario and the club must meet all requirements placed upon them. These requirements include regular physicals for competing boxers as well as certified coaches. This organization is volunteer driven including all coaching staff, administrators, special event workers, and scoring judges. These volunteers combine to provide an estimated 20 000 total hours per year. The boxing club is comprised of a board of directors that oversees the coaches and policies. The programs of the club are designed by the certified coaches and are designed to provide each member with a unique program that fits their skills and advancement levels. The annual operating budget of the club is in the $25,000 dollar range. The club has held true to operating at break even and has approximately $3000.00 in the bank. The stability of this club is largely based upon their ability to decrease expenses in order to match revenues. The fixed costs of this club are rent and telephone. In years where revenues have been short the club has sought donations from local businesses and member families to cover a short fall. The club operates within the scope of the City of Kitchener' s affiliation policy and has expressed an interest in renewing their strategic plan and continuing to improve their governance and programming. Athletics Staff Opinion It is staff's opinion that this club is in need of a new facility to ensure future sustainability, growth and that they will be able to raise a $200 000.00 commitment towards a new facility. These monies will be donated to the club as has been expressed to the City of Kitchener. The club will continue to improve in their operations and will abide by the City of Kitchener's Affiliation policy. With a new facility the club plans to offer memberships to a greater number of recreational and competitive participants. These classes could include boxercise for beginners, low impact boxercise for expecting moms, as well as cardio and fitness cross-training for other sports organization. The clubs current facility is of poor quality and they have a difficult time attracting these markets into their club. There is a perception in the club that these markets would be willing to attend programs in a better facility. The 2 areas of concern for this project are the clubs ability to pay for the operations of the suggested new facility that is substantially larger and potentially of greater cost then they currently have. The club's latest completed annual statements (ending Dec 31 2005) expense rent at $10,272 annually. The second concern is in regards to the Capital commitment of $200,000.00 . Should it not materialize, the club membership large enough to use a surcharge to bring in the funds. The current board is working hard to improve and to excel however the City needs to consider the level of commitment they are undertaking. The City will need to grandfather their current operating figures until such time as the club has grown to fit their new home financially. This group does show promise in its ability to grow programming to meet the demand of an increasing market place, however without market studies it is a gamble as to what extent and rate their programming will grow.