HomeMy WebLinkAboutCSD-09-031 - Activa Sportsplex Financial Updatel
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Community Services
REPORT T0: Community Services Committee
DATE OF MEETING: April 20, 2009
SUBMITTED BY: Kim Kugler, Interim Director Enterprise Division, 2544
PREPARED BY: Kim Kugler, Interim Director Enterprise Division, 2544
WARD(S) INVOLVED: All
DATE OF REPORT: April 15, 2009
REPORT NO.: CSD-09-031
SUBJECT: ACTIVA SPORTSPLEX FINANCIAL UPDATE
RECOMMENDATION:
That funds in the amount of $187,767 be transferred from the Activa Sportsplex legacy
fund generated from revenues collected for the sponsorship and naming rights of the
facility to the Activa Sportsplex construction project to offset increased project
construction costs and to cover off the capital project funding shortfall related to
additional foundation works and energy improvements.
BACKGROUND:
A budget of $20,099,000 was approved for construction of a new twin pad ice facility. The new
facility was to include office space, storage, a boxing facility, a walking track and features to
achieve a LEED Gold designation. The Activa Sportsplex facility was commissioned and
opened for public use September 29, 2008. The finishing touches and deficiencies are still
being completed.
A fundraising campaign target was established at $2,000,000 with a net revenue return of
$1,750,000. In addition to the fundraising campaign sponsorship and naming rights for Activa
were negotiated securing a legacy fund of $500,000 to be used to offset any fundraising
shortfalls or future capital improvements to the facility.
REPORT:
Currently, the all years balance for the project with outstanding purchase orders for the Activa
project total $20,255,767. Staff are projecting the total costs for the project to exceed the
approved budget by $256,757 (i.e. approximately 1.3% of the overall project budget) when all
work is completed.
The additional expenses can be attributed to redesigning the foundation to deal with the soil
conditions at a cost of $250,000 and an improvement in the energy efficiency of $100,000.
Pledges to the fundraising campaign today total $2,000,522.56. The net revenue after
expenses to be contributed to the construction is $1,819,000. In addition to the pledged funds
an agreement was signed for the sponsorship and naming rights of the facility for $500,000.
These funds currently are being unallocated and have been set aside as a legacy fund to be
used for any fundraising shortfalls or future capital improvements to the Activa Sportsplex.
FINANCIAL IMPLICATIONS:
The $256,757 over expenditure can be funded by allocating $69,000 of the surplus fundraising
dollars and transferring $187,767 from the Activa Sportsplex legacy fund.
CONCLUSION:
The report requests direction be given to staff to transfer revenues from the sponsorship and
naming rights agreement to offset the $187,767 over expenditure on the Activa Sportsplex
project.
ACKNOWLEDGED BY: Pauline Houston, General Manager, CSD
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