Lethbridge Exhibition Park. Presentation to Finance Committee Development Plan

Transcription

1 Lethbridge Exhibition Park Presentation to Finance Committee Development Plan

2 How We Got Here Review Joint Committee City of Lethbridge & Lethbridge & District Exhibition ( ) Financial Review Facility Condition Audit of all buildings Market and Needs Assessment Examining 6 Options - Choosing By Advantages (CBA) Multiple Accounts Evaluation Framework Study

3 Resulting in Development Plan containing Comprehensive Market & Needs Assessment Business Case Funding Strategy Conceptual Designs & Capital Cost projections Construction Schedule

4 Market & Needs Assessment 1999 Fixed Roof Convention & Exhibition Space Analysis City of Lethbridge by PriceWaterhouse Coopers PwC 2004 Community Needs Analysis Lethbridge College Student Research Study Embrace the Challenge Manecon Business Strategies - Market Analysis and opportunities, Demand for Facilities and Marketing 2006 Reputation/Brand Audit Kick Creative Group Inc Facility Market Study - Manecon Business Strategies 2007 Brand Audit Tracking Study Kick Creative Group 2008 Economic, Social & Educational Benefits Study (Whoop- Up Days) Engima Research Corp Facilities Condition Audit - MPE Engineering

5 Market & Needs Assessment 2010 Extracted Demand-Side Economic Impact Reporting (Whoop-Up Days) EventCorp Services Inc Choosing By Advantages workshop on site location (City of Lethbridge) Multiple user group needs assessment (presentations to Joint Committee) Exhibitor, Chamber members, and Community survey 2011 Multiple Accounts Evaluation Framework Study Meyers Norris Penny (MNP) Industry and stakeholder interviews - Meyers Norris Penny (MNP) 2011 Within Reach Strategic Direction for Alberta Agricultural Societies - Manecon Business Strategies 2012 Exhibition Park Site Survey Mike Spencer Geometrics 2012 Geotechnical Evaluation of Exhibition Grounds EBA Engineering Consultants 2012 Facility Site Tours and Facilities Comparison (Exhibition Park, Saskatoon Prairieland & Red Deer Westerner Park)

6 Market & Community Needs Assessment Highlights Exhibition Park is vital part of the City s economic and social health Condition & function of current Exhibition Park is not meeting current demands of the community Community (residents, businesses and stakeholders) of Lethbridge support a long term solution for EP and there some impatience for the planning to begin To attract conventions to Lethbridge we must have facilities that can accommodate tradeshow, banquet & meetings spaces under one roof Demand for meeting space in Lethbridge is unmet and growing Vast support for funding & inclusion in City s CIP

7 Design Principles Open span connected tradeshow space min ceiling height of feet Higher finished meeting & convention space Incorporate the views of Henderson Lake Separate agriculture space Flexible multi-use space to maximize rentals Distinct back and front of houses Allow for future expansion

8 Exhibition Park Site Design

9 Trade & Convention Centre (Phase 1)

10 Trade & Convention Centre

11 250,000 Sq ft Trade & Convention Indoor open span connected tradeshow space 172,000 sq ft Kitchen 8,000 sq ft (capable of hosting 2000 hot meals per seating) Meeting & Convention Space 25,000 sq ft Administration 5,000 sq ft Storage, maintenance & mech 30,000 sq ft Lobby & Common Areas 10,000 sq ft

12 Trade & Convention Floor Plan

13 Agriplex (Phase 2)

14 Agriplex Floor Plan

15 75,000 sq ft Agriplex (Phase 2) 100 x 200 square foot dirt floor arena 150 to 175 livestock pens at 10 x 10 each 12 to 15 dedicated livestock wash bays seating for 1,000 to 1,500 Plus a concession, gallery space, show office etc.

16 Exhibition Park Capital Cost Facility Component Area in Sq Ft Total Estimated Cost Phase 1 Construction 250,000 $62,651,000 Phase 2 Construction 75,000 $15,680,200 Total Construction Work 325,000 $78,331,000 Furniture, Fixtures & Equipment $ 1,500,000 Total cost before site development $79,831,000 Approx. Site Development Costs $11,000,000 Total Cost $90,831,200

17 Financial Principles Business Case Driven Sustainability Economic Contribution

18 Business Case Driven The development will generates 3 major sources of revenue Existing (what we currently do) Enhanced (meeting unmet demand for existing programming) waiting lists for H&G and Ag Expo & other show growth Incremental (brand new revenue opportunities)

19 Business Case Driven Operating model incorporates LEED Silver design elements and energy efficient mechanical systems Business expenses have been upgraded to reflect all cost elements direct costs associated with operations indirect costs associated with programming management costs

20 Sustainability Positive net operating income is sustainable 10,000,000 Revenue vs Expenses 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 - Phase 2 Const. Ramp Up Revenue Expenses

21 Economic Contribution TIME FRAME DIRECT & INDIRECT ECONOMIC BENEFIT - LETHBRIDGE & REGION EMPLOYMENT (FTE) PROV'L & FEDERAL TAX REVENUE CONSTRUCTION PE RIOD ( ) $70,000, $21,000,000 STE ADY STATE OPE RATIONS ( ) $30,000, $10,000,000 In the first 10 years of operation, the new programming associated with the facility will generate over $30,000,000 in new economic benefit to the region.

22 Funding Model Lethbridge & District Exhibition contribution: Operating Income ($3.5 million) Capital Asset Offset ($3.4 million) Sustainable operating model ability to debt service Capital Reserve ($ 2 million) Future and ongoing Operations and Maintenance of Trade & Convention Centre and Agriplex No pressure on City of Lethbridge Operating Budget

23 Key Components of the plan Maintains current operations & programing during construction Enhances existing Exhibition Park programming Meets the needs of Convention Planners not currently coming to Lethbridge Capital reinvestment potential through capital reserve plan Significant employment & economic generator during/after construction Business Case supports a sustainable Exhibition Park into the future Meets the Community demand & expectations

24 Community Support Letters of Support Received (to date) Economic Development Lethbridge Chamber of Commerce Lethbridge Community Futures Lethbridge Lethbridge Lodging Association Galt Museum Chinook Country Tourist Association Allied Arts Council Conference & Event Services University of Lethbridge Nord-Bridge Senior Centre Lethbridge Construction Association Lethbridge Sports Council Lethbridge Senior Citizens Organization Canadian Home Builders - Lethbridge Region Rocky Mountain Turf Club Jim Hillyer Member of Parliament Travel Alberta Mayors & Reeves of South West Alberta Alberta Association of Agricultural Societies Canadian Association of Fairs & Exhibitions Alberta Fire Chiefs Association Town of Coaldale County of Warner No.5 4H Society CTV Lethbridge Clear Sky Media FarmPress Pattison (Country 95 & B93.3) CKVN Radio UFA Eldorado RV Gas King Lethbridge Downtown Rotary Letter of support signed by 638 citizens

25 Funding Strategy $25 Million City of Lethbridge CIP /23 $50 Million Federal & Provincial Capital Programs $15 Million Exhibition Park $90 Million By the City of Lethbridge identifying this project as a priority and funding $25 million we will be able move forward and leverage this money to access Provincial & Federal capital grants. We will also work to secure community & corporate sponsorships and invest our current capital reserves, and our ability to debt finance and reallocation capital assets The 2009 CIP funding can be reallocated in a w ay to support this development plan.