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HomeMy WebLinkAboutCSD-07-040 - Williamsburg Community Centre Proposal ) R Community Services Report To: Date of Meeting: Submitted By: Community Services Committee September 24, 2007 Prepared By: Mark Hildebrand, Interim Director, Community Programs & Services (x2687) Mark Hildebrand, Interim Director, Community Programs & Services (x2687) All Ward(s) Involved: Date of Report: Report No.: Subject: September 11 , 2007 CSD-07-040 WilliAMSBURG COMMUNITY CENTRE PROPOSAL RECOMMENDATION: For Council discussion and direction. BACKGROUND: On May 1, 2006, staff brought forward a report (CSD-06-059) which apprised Council of two proposals, that were received, related to a potential public-private partnership between the YMCA, RBJ Schlegel Holdings Inc., and the City of Kitchener, for the development of a community centre/family YMCA facility in the Community of Laurentian West. Proposa/1 In the first proposal, the City of Kitchener was asked to commit $2 million to a capital investment as a proportional share of building space. In this initial proposal, it was suggested that the YMCA would oversee the programming of the facility. The City's capital investment would provide the City with a community meeting room, a joint gymnasium/auditorium and other shared space. The proposal was submitted by Mr. John Haddock, C.E.O. of the Kitchener- Waterloo area YMCA, requesting a partnership with the City of Kitchener. Staff recommended not committing to a $2 million capital investment in a community centre/family YMCA, as outlined in the first proposal, considering the following: · There was a need for more assessment and community input to identify the optimal community site for a permanent community centre; · There was a need to develop community capacity within Williamsburg; · There was need for additional staff resources to effectively support community development initiatives; Report No: CSD-07-040 2 · The proposed budget asked for a City contribution of 240/0 of the overall project cost for a maximum of 160/0 of program space, not all of which is exclusively available to the City of Kitchener; · The cost per square foot to the City of Kitchener would be higher than current cost for facilities construction; · There was no allocated funding for this development in the capital budget forecast; · There existed a potential for YMCA programs to compete with resident participation in neighbourhood programming initiatives; and · The Leisure Facilities Master Plan (LFMP) identifies the development of a community centre in South-west Kitchener in approximately 2013. Proposal 2 After significant discussion, a second proposal with two additional project alternatives for a community centre/family YMCA in the Williamsburg area was brought forward to staff. The first alternative in this proposal identified RBJ Schlegel Holdings as the landlord, constructing a facility to accommodate programs and dedicated space for the YMCA and other potential partners such as City of Kitchener, KPL, and Region of Waterloo/Best Start program. This first alternative was suggesting a 52,000 square foot facility at a total cost of $8M. In this proposal RBJ Schlegel would enter into a lease agreement with the YMCA for a minimum of 20 years. The space (35,000 square feet) would be shared or segregated by the user groups as mutually agreed by the YMCA and the YMCA's subtenants. The YMCA would be required to enter into sub-agreements with the user groups, including the City of Kitchener, for no less than 20 years. RBJ Schlegel would retain 5,000 square feet for lease to complementary health professionals. The second alternative identified RBJ Schlegel entering into a lease directly with each party so that the total project was not dependent upon anyone party proceeding or not. In this alternative, the process of project/partner development would be totally driven by Schlegel Holdings. It would provide RBJ Schlegel with greater flexibility to include potential private sector partners as key tenants in the event that the non-profit or municipal tenants were not interested. The size of the facility and cost was not provided since the project would depend on the main tenants and architectural drawings would commence as soon as the main tenants were committed with firm lease agreements. Commercial lease rates would be established as part of the direct negotiations with each specific tenant and would be calculated specific to each tenant, given the purpose built nature of the space, the extent of fit-up required etc. In the May 2006 report, staff suggested that there was merit to the second proposal and that dedicated community space in the Williamsburg community, for a short period of time, could contribute significantly to the ability of the neighbourhood to develop their capacity. As such, in this report staff suggested consideration of a five year 'pilot project', at a lease cost of approximately $50,000 per year which would provide an opportunity for evaluation and would position the community to address the proposed Huron Park development and longer-term needs of South-West Kitchener residents. A multi-year lease "pilot" arrangement would provide: · the community with continuity and flexibility to respond easily to the evolving and changing community needs, aspirations and capacities; · the time to assess the needs of the community; · the ability to evaluate the optimal location of a permanent community centre; and · the time to evolve and evaluate a possible ongoing partnership with the YMCA. The $50,000 lease cost would not address any staff support needs for the facility such as administration and custodial services, or utility costs, which would also have to be budgeted for if this pilot project was considered. Report No: CSD-07-040 3 Staff was directed to investigate the potential for a multi-year lease for meeting, office and community space in the Williamsburg area and bring back information to Council for consideration and discussion. REPORT: Since the May 2006 report, City of Kitchener staff has met on a number of occasions with RBJ Schlegel staff, in co-operation with the YMCA and individually to investigate options of leasing space in the Williamsburg area. Discussions initially surrounded the concept of a building that was approximately 24,000 square feet, divided into three levels. As will be shown, the cost associated with this concept was burdensome for the City of Kitchener. A second concept was discussed between City of Kitchener and RBJ Schlegel staff which looked at investigating the possibility of renting space in a building scheduled for construction, planned for office/retail space adjacent to parkland in the community. In this instance there was interest in entertaining less space and a 5 year lease. Finally, City of Kitchener staff has also identified other options for providing community support, including space in some instances, in the Williamsburg area for Council's consideration. ConceDt 1 - RBJ Schleael buildina a new 24~OOO sauare foot facilitv The initial concept looked at RBJ Schlegel building a 24,000 square foot facility and the City of Kitchener leasing a portion of this facility. The facility would be three levels, each level of the facility was to be approximately 8,000 square feet. The lower garden level would open to the back parking lot and would be considered for either community space, private office or retail space, or a combination of both. The first level would be at street level opening to the main street. Similar to the lower garden level, this space would also be considered for community programming space, private office or retail space or a combination of both. The third level of the facility would be allocated as a fitness centre (YMCA) and provide for the necessary locker and program rooms required for such an operation. In this initial concept, staff estimated the costs associated with leasing 3,000, 5,000 and 8,000 square feet of facility space. RBJ Schlegel preferred the City of Kitchener to lease one entire level of the facility (8,000 square feet), however traditionally 3,000 square feet has been provided to communities as a starting point for a community centre. Although considered a good starting point for neighbourhood engagement, it is understood that communities quickly outgrow a 3,000 square foot facility and are limited with the programming they can provide the community. As such, staff has also provided below a cost associated with leasing 5,000 square feet, which includes a multipurpose room of approximately 2,400 square feet. In the analysis of space, it is proposed the following could be provided: a) In a 3,000 square foot facility · Meeting/program rooms (2) · Accessible washroom facilities · Offices (3) · Reception area · Storage Report No: CSD-07-040 4 b) In a 5,000 square foot facility . Multi purpose program room . Meeting/program rooms (2) . Accessible washroom facilities . Offices(3) . Reception area . Storage c) In a 8,000 square foot facility . Multipurpose program room (2) . Meeting/program rooms (2-3) . Accessible washroom facilities . Offices (4) . Reception area . Storage In the initial report provided to Council, staff suggested consideration of a five year 'pilot project', at a lease cost of $50,000 per year. For this concept, RBJ Schlegel is requesting a minimum lease term of ten years which would be one-half the amortization period of the facility. As outlined below, there are distinct lease costs associated with the various floors in the facility. Although willing to negotiate the space leased to the City of Kitchener, RBJ Schlegel would prefer to have the community space located on the first (street) level of the facility. There is significant benefit to having community access to the main street, given the possible programs that would run from the facility (e.g. youth), and considering accessibility as well as safety and security. Also, given that lease rates would be less expensive on the garden level, keeping this open provides greater flexibility for providing affordable space to grass roots businesses that may complement programs at the facility. Below are three separate tables which show "C" class cost estimates if the City considered leasing 3,000, 5,000 or 8,000 square feet. The first table outlines costs associated with leasing the upper level of the facility, at $25/sq ft. The second table outlines costs associated with leasing the first (street) level of the facility, at $28/sq ft, and the third table provides costs associated with leasing the garden level of the facility, at $22/sq ft. Specifically, the tables below outline the following costs: i) Lease Costs, including common area maintenance (e.g. exterior maintenance of facility), taxes and insurance; Community Services Costs including: · Salaries and Wages (Part-time District Facilitator, Administration Coordinator and Community Centre Clerk and Community Centre Attendant staff) · Administration Expenses · Materials and Supplies Facilities Management Costs including: · Salaries and Wages · Equipment Reserve Charges · Materials and Supplies Utilities Costs ii) iii) iv) v) Furnishings, Fixtures and Equipment - this would be a one time cost associated with providing the necessary equipment and furnishings for use as a community centre. Report No: CSD-07-040 5 Upper level - $25/square foot Estimated Operating Costs 3000 sq it 5000 sq it 8000 sq it Lease Costs $ 75,000 $125,000 $ 200,000 Community Services Budget Costs 166, 190 166, 190 166, 190 Facilities Management Costs 24,579 4 1 ,295 49, 1 60 Utilities Costs 6,906 10,775 13,813 Total Estimated Operating Costs $ 272,675 $ 343,260 $ 429,163 Furnishings, Fixtures and Equipment $ 40,000 $ 66,000 $ 1 05,600 Ground level $28/square foot Estimated Operating Costs 3000 sq it 5000 sq it 8000 sq it Lease Costs $ 84,000 $140,000 $ 224,000 Community Services Budget Costs 166, 190 166, 190 166, 190 Facilities Management Costs 24,579 4 1 ,295 49, 1 60 Utilities Costs 6,906 10,775 13,813 Total Estimated Operating Costs $ 281,675 $ 358,260 $ 453,163 Furnishings, Fixtures and Equipment $ 40,000 $ 66,000 $ 1 05,600 Garden level - $22/square foot Estimated Operating Costs 3000 sq it 5000 sq it 8000 sq it Lease Costs $ 66,000 $ 11 0,000 $ 176,000 Community Services Budget Costs 166, 190 166, 190 166, 190 Facilities Management Costs 24,579 4 1 ,295 49, 1 60 Utilities Costs 6,906 10,775 13,813 Total Estimated Operating Costs $ 263,675 $ 328,260 $ 405,163 Furnishings, Fixtures and Equipment $ 40,000 $ 66,000 $ 1 05,600 As outlined in the tables above, it was not possible to meet the minimum space requirements of 3,000 square feet, traditionally provided for a community centre, at a lease cost of $50,000. If we were to consider providing the minimum space to the Williamsburg community, through a leasing arrangement, the minimum cost would be approximately $66,000, leasing the garden level of the facility. Within this scenario, staff is also suggesting there would be an additional one time cost of $40,000 for furnishings, fixtures and equipment and an additional $197,675 in staff support and facility operating costs. Conceot 2 - Leasina soace in a buildina alreadv scheduled for construction The second concept investigated the City of Kitchener leasing space in a building that is already scheduled for construction by RBJ Schlegel, planned for office/retail space and adjacent to parkland in the community. This facility would only have two levels, upper and ground, for lease. In this instance, RBJ Schlegel would be interested in entertaining a 5 year lease. Report No: CSD-07-040 6 In the interest of keeping lease costs to $50,000, staff estimated the costs associated with leasing 1 ,500 2,000 and 5,000 square feet of facility space. In the analysis of space, it is proposed the following could be provided in 1 ,500 and 2,000 square feet of space: · Meeting/program rooms (2) · Accessible washroom facilities · Offices (2) · Reception area · Storage It has been recognized, in the instance of the Kingsdale community centre (CSD-05-158) that it is very difficult for a community to operate and grow programs out of 1 ,500 square feet. As mentioned above, traditionally 3,000 square feet has been provided to communities as a starting point for a community centre. Below are the "C" class cost estimates if the City considered leasing 1 ,500, 2,000 or 5,000 square feet. The first table outlines costs associated with leasing the upper level of the facility, at $25/sq ft, the second table outlines costs associated with leasing the first (street) level of the facility, at $28/sq ft. * Upper level - $25/square foot Estimated Operating Costs 1,500 sq it 2,000 sq it 5,000 sq it Lease Costs $ 37,500 $ 50,000 $ 125,000 Community Services Budget Costs 1 66, 190 1 66, 190 166, 190 Facilities Management Costs 12,400 16,600 41 ,300 Utilities Costs 3,500 4,650 10,775 Total Estimated Operating Costs $ 219,590 $ 237,440 $ 343,265 Furnishings, Fixtures and Equipment $ 30,000 $ 40,000 $ 66,000 * Ground level $28/square foot Estimated Operating Costs 1,500 sq it 2,000 sq it 5,000 sq it Lease Costs $ 42,000 $ 56,000 $ 140,000 Community Services Budget Costs 1 66, 190 1 66, 190 166, 190 Facilities Management Costs 12,400 16,600 41 ,300 Utilities Costs 3,500 4,650 10,775 Total Estimated Operating Costs $ 224,090 $ 243,440 $ 358,265 Furnishings, Fixtures and Equipment $ 30,000 $ 40,000 $ 66,000 Other options to support the Community It has been acknowledged by staff that there is merit to providing support to a community that is in its infancy. However there may also be other options that can be considered to provide this support, besides entering into a lease agreement, as outlined above. Staff also investigated 3 additional options and includes: Option 1: Providing the necessary staffing resources to begin animating the community without building or leasing a facility; Option 2: Purchasing a 3,000 square foot portable; and Option 3: Relocating the Kingsdale portables to the Williamsburg Community in 2010. Report No: CSD-07-040 7 In the instance of options two and three which include the consideration of portables, it should be noted that there is only two viable pieces of land to locate in the Williamsburg community, which is City owned, including Voisin Park and Williamsburg Commons. Estimated costs below do not include the cost of land and would have to be added for locations other than those mentioned above. Option 1: Providing the necessary staffing resources to begin animating the community without building or leasing a facility. Although the advantages of having dedicated space as a neighbourhood hub could contribute significantly to animating the community, even more important is having the appropriate staff resources to facilitate this development. At present, Community Programs and Services does not have the staff resources to provide any extended support for neighbourhood development in the south end of Kitchener. If any issues occur in these developing neighbourhoods, at the present, staff from other areas of the City are called upon to assist. If the City would like to consider early consistent support to this community, then at the very least a part time District Facilitator and support staff would be needed. It is anticipated that one full time District Facilitator and support staff will be required in 201 0 in anticipation of the expected south end community centre to be built in 2013. Until this time, the City could consider providing a part-time District Facilitator, and support staff, at an approximate cost of $167,000. In the absence of dedicated facility space, the District Facilitator would work with the Neighbourhood on their development utilizing schools and churches in the community, similar to fledgling neighbourhoods in the past. Option 2: Purchasing a 3,000 square foot portable Currently, the City of Kitchener does not have any available portables in inventory that could be utilized as dedicated community space in the Williamsburg Area, and would have to purchase if they were to be considered an option for dedicated community space. The total approximate cost of purchasing 3,000 square feet of portable space is $75,000. Other costs associated with purchasing and locating the portables in the area include: $8,000 for moving the portables, $35,000 for interior renovations, $50,000 - $75,000 for site preparations and services (depending on the site), $20,000 for permits and contingencies, and $40,000 for furniture and fixtures. The total cost ("C" class estimate) of placing a 3,000 square foot portable in the Williamsburg community would be between $228,000 - $253,000, excluding land costs. In addition to capital costs, staff estimates an operating cost of approximately $197,675 for staff support and facility operating costs. Option 3: Relocating the Kingsdale portables to the Williamsburg Community in 201 O. The City of Kitchener has a unique asset in the Kingsdale portables, considering the square footage and its construction. The module is made up of 6 single portable units of 720 square feet each, and is divided up into a number of different programming and meeting spaces for the community. The interior walls and ceilings are constructed of drywall, along with the appropriate millwork and fixtures to provide for the necessary facilities including a kitchen, offices, washrooms etc. The overall facility space of 4,390 square feet has provided exceptional flexibility and opportunity for growth and development of the Kingsdale Community and, before that, the Chandler-Mowat Community. There is an opportunity for relocating this existing module in 201 0, upon completion of the new Kingsdale Community Centre. The total cost of relocating the Kingsdale portables ("C" class estimate in 2007 dollars) is $425,000 excluding land costs. Site preparation Work/Services is estimated at $200,000, interior renovations $95,000, contingencies and permits $70,000 and furnishings and fixtures $66,000. Report No: CSD-07-040 8 In addition to capital costs, staff estimates an operating cost of $218,265 for staff support and facility operations. Below are the "C" class cost estimates associated with the three additional options considered by staff. Also provided in the chart, for comparison purposes, are the costs associated with leasing a similar space in the Williamsburg area (at $25 per square foot). The second chart below projects the total operating and capital costs over five and ten years for each option. lease Other Options lease 3,000 lease 5,000 Provide Purchase Relocate Ki ngsdale sq ft Upper sq ft Upper only Staff 3,000 sq ft Portables level level Resources Portable 2010 (2007 $) Operating Costs Lease Costs 84,000 140,000 0 0 0 Community Services 1 66, 1 90 1 66, 1 90 1 66, 1 90 1 66, 1 90 1 66, 1 90 Costs Facilities Management 24,579 41 ,295 0 24,579 41 ,300 Costs Uti I ities Cost 6,906 $10,775 0 6,906 10,775 Total Operating Costs $281,675 $358,260 $166,190 $197,675 $218,265 Capital Costs Purchase Portables $0 $0 $0 $75,000 $0 Site Preparation Work 0 0 0 83,000 200,000 and Services I nterior Renovations 0 0 0 35,000 95,000 Contingencies and 0 0 0 20,000 65,000 Permits F urn itu re and Fixtu res 40,000 66,000 0 40,000 65,000 Total Capital Costs $40,000 $66,000 $0 $253,000 $425,000 Cost Projections over 5 and 10 years lease Other Options lease 3,000 lease 5,000 Provide Purchase Relocate Ki ngsdale sq ft Upper sq ft Upper only Staff 3,000 sq ft Portables level level Resources Portable 2010 (2007 $) 5 year term - Costs Operating 1 ,408,375 1 ,791 ,300 $830,950 988,375 1,091,325 Capital 40,000 66,000 0 253,000 425,000 Total $1,448,375 $1,857,300 $830,950 $1,241,375 $1,516,325 10 year Term Operating 2,816,750 3,582,600 1 ,661 ,900 1,976,750 2,182,650 Capital 40,000 66,000 - 253,000 425,000 Total $2,856,750 $3,648,600 $1,661,900 $2,229,750 $2,607,650 Report No: CSD-07-040 9 Alignment with the City of Kitchener Community Resource Centre Model In the Leisure Facilities Master Plan (LFMP), recommendation 18 outlines the development criteria and strategies for community resource centres. This recommendation provides supportive direction in regards to the development of community resource centres (the facilities) in mature neighbourhoods. The criteria outlined in the recommendation suggest the following: · The group proposing a centre must have a minimum of five to seven years of successful and sustainable local program delivery operations using schools, churches, arenas and other facilities; · An identifiable core of ten to fifteen committed volunteers needs to be demonstrated, who have been active for a minimum of one to two years; · A definable neighbourhood or service area is evident that does not infringe on other defined service areas, creates undue overlaps, etc.; · Additions to existing resource centres should not occur until reasonable utilization of service area schools, churches, club houses and other facilities have been explored and utilized were possible; and · Any new resource centre, involving a permanent structure, and any addition over $250,000 should have a Business Plan completed involving the community / neighbourhood association and the city in a partnership. Although the LFMP provides specific requirements for Community Resource Centres in mature neighborhoods, it does not speak to proactive approaches to Community Development (e.g. program and service development and delivery), or facility development in emerging neighborhoods such as Williamsburg. From the facility development that has occurred since 2000, there is an understanding of the basic facility components necessary to meet the needs of a neighbourhood including: a multipurpose room/gym; several smaller program/meeting rooms, service delivery areas for Neighbourhood Associations and/or partner groups, and kitchen area. The sizes and arrangement of these components are largely determined by the amenities in the area, possible community partnerships, and population size of the area the facility serves. The proposals in this report provide the City of Kitchener the opportunity to engage in a proactive approach to program and service delivery in a newly emerging neighbourhood. There are advantages to considering the development of a Community Resource Centre as a neighbourhood hub during the infancy of new subdivisions. An accessible community space could be critical to enable a neighbourhood volunteer base to form and become sustainable. This proposal includes elements that support flexible and adaptive programming that would allow for community dialogue and growth. As outlined in the initial report (CSD-06-059), proximity to other community centres has to be considered when evaluating if the identified location, in the Williamsburg area, is the most advantageous for the majority of residents of South-West Kitchener. The Country Hills Community Centre is approximately 2 km from the proposed site. The introduction of the Williamsburg Community Centre could potentially impact programs in the adjacent neighbourhoods and may not be considered the most central location in this area of the city. The LFMP has identified the development of a community centre in South-West Kitchener to occur in approximately 2012. Approval of a capital and/or operating expenditure at an earlier date could potentially affect other neighbourhoods who have been actively working toward meeting the criteria for a new community centre or a community centre expansion as outlined in the LFMP. Any perception of "Ieap-frogging" one project over another could be detrimental to the integrity of the process for developing community criteria for community centres. Report No: CSD-07-040 10 FINANCIAL IMPLICATIONS: Considering the cost estimates associated with the various options in this report, staff is requesting further direction from Council on how to proceed. At present there are no operating dollars allocated for the Williamsburg area for Neighbourhood Development. There is $4,519,000 allocated over 2013 and 2014 for a Community Centre scheduled for the south end of Kitchener. Mark Hildebrand Interim Director, Community Programs and Services AP