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Additions to Council Feb 5/07 ADDITIONS TO COUNCIL, MONDAY, FEBRUARY 5,2007 COUNCIL REPORTS 1. MW-2007-06 - Contract 2007-181-06, Grassy Brook West Area - Sanitary Sewer Construction Lyon's Creek Road & Montrose Road INFORMATION 1. Board of Museums - Information on Heritage Week activities 2. Information from Capital Sports forwarded by Clerk February 5,2007 MW-2007-06 Niagara.FcIfJ/D~ His Worship Mayor Ted Salci and Members of the Municipal Council City of Niagara Falls, Ontario Members: Re: MW-2007 -06 - Contract 2007-181-06 Grassy Brook West Area - Sanitary Sewer Construction Lyon's Creek Road & Montrose Road RECOMMENDATION: That the unit prices submitted by the lowest tender Baiocco Construction Corp. be accepted and that the Mayor and City Clerk be authorized to execute the necessary agreement. BACKGROUND: The Tender Opening Committee, in the presence of the City Clerk, Mr. Dean lorfida, opened tenders on Tuesday, January 30, 2007 at 1 :30 p.m. for the above noted contract. Tender documents were picked up by thirteen (13) Contractors and three (3) bids were received. Listed below is a summary of the totaled prices, excluding GST, received from the Contractors. 1. 2. 3. Baiocco Construction Corp. FCM Construction Ltd. V. Gibbons Contracting Ltd. St. Catharines Oakville Fort Erie $3,284,480.00 $3,600,000.00 $5,176,135.47 (corrected) The lowest tender was received from Baiocco Constructioh Corp. in the amount of $3,284,480.00. This contractor has previously performed similar type projects for the City. We are therefore of the opinion, that this contractor is capable of successfully undertaking this project. Financing: ntract was $2,299,365.00. Community Services Department Municipal Works --2-- Project Costs: Awarded Contract (excluding GST) Miscellaneous Fees (MOE) Utility Removals/I nstallations Total $3,284,480.00 $ 600.00 $ 20.000.00 $3.305.080.00 Funding: Sewer Fund-Capital Funding Reserve (33.50/0) Account No. 16-2-092500-400161 $1,107,202.00 Development Charges Reserve Fund (66.5%) (D.C. Project #DC-NT-SA14) Accou nt No. SS8-12 -3-41 0008-030000 $2,197,878.00 This project is scheduled to commence construction February 19, 2007 and all work is to be completed by July 5, 2007. Recommended by: R.Volpini S:\REPORTS\2007 Reports\MW-2007-06 - Grassy Brook West Area Sanitary Sewer.wpd City of Niagara Falls Board of Museums 5810 Ferry Street - Niagara Falls - Ontario - L2G 159 Tel: 905-358-5082 Fax: 905-358-0920 Your Worship Mayor Ted Salci and Members of Niagara Falls City Council The City of Niagara Falls City Hall, P.O. Box 1023 4310 Queen Street Niagara Falls, Ontario, Canada L2E 6X5 January 30th, 2007 Your Worship and Members of Council, Traditionally the third week in February has been celebrated throughout Canada as Heritage Week and the third Monday in February celebrated as Heritage Day. This year the week of February 191h to 251h has been designated as Heritage Week across Canada and February 191h as Heritage Day. Heritage Week provides a great opportunity for people in the community to take time to reflect oil their heritage and to enjoy heritage events at their local hsitoric sites and museums. To mark this event, The Board of Museums would like to request that City Council consider proclaiming the week of February 19th to 25th, 2007 as Heritage Week in Niagara Falls and February 19th, 2007 as Heritage Day. F or your information, please see the attached press release regarding some events and activities that will be highlighted during that week and throughout the month of February. Thank you very much for your consideration. Sincerely, ~~ I 4;!7ca?^'L tJdcr i " G~rdon West ~erson, City of Niagara FaIls Boar~~ ce. Board ofMuseum~./..----"""'_. ~ encl. ,",~,/"" ~ " .,~......,:r~ "...,.".,...,,,."'..,.,,,..... -'~o..~....'" City of Niagara Falls Board of Museums 5810 Ferry Street... Niagara Falls... Ontario - L2G IS9 Tel: (905)358-5082 Fax: (905)358...0920 PRESS RELEASE February 1, 2007. For Immediate Release Contact: Kathleen PoweU - Manager Days: (905)358-5082 E-mail: kpoweU@niagarafaUs.ca Celebrate Heritage Week in Ontario at your Local Museums and in the Community The City of Niagara Falls Museums invite you to celebrate the heritage of our Community during the week of February 19th to 25th, 2007. To celebrate Heritage Week the City of Niagara Falls Museums would like to highlight some events and exhibits: To kick off Heritage Week, the City of Niagara Falls Museums and the Municipal Heritage Committee will be holding their Annual Heritage Showcase. This year's event will showcase the theme of "Places for People - Our Heritage of the Everyday". The event will be held on February 16-17-18 during regular business hours at the Niagara Square Shopping Centre on Montrose Road. The weekend of the 16th and 17th will is also the last opportunity to get your tickets for the 1964 % Mustang to be ramed offby the Niagara Falls Board of Museums on February 1'J'h at noon. Don't miss out on your chance to win this beautiful car. On February 20th, the Lundy's Lane Historical Museum will open its newest exhibit... TOYS! For the young and young at heartl Come and see if you remember some of these symbols of a more carefree time. During the entire month of February visit the Lundy's Lane Historical Museum to see an exhibit by the Niagara Woodcarvers Association. Their beautiful handcrafted artwork is on display until March 29th, 2007. Available for viewing and research beginning February 1st, 2007, the Museums will have available the final DVD production of the Downtown Living History Project. This project has been compiled over the last 6 months and includes oral histories (reminiscences and memories) about living, working and playing in the downtown area over the last 50 years. This DVD project is the first of a series of projects that take place over the next few years that will be collecting people's memories of the different geographic areas of our community. The project will move to Stamford Village for the summer of 2007. For more information please call the Lundy's Lane Historical Museum at (905)358..5082 -end- callin9 all Herittlge GroupsIltl Tbe Municipal Heritage Committee a-oo the. cit}} of NiaeaTa Falls Museums invite >>OM to participate in. the 8th Annual Henttlge sbowcase . at NiQ{lara Stptare in Celebration of Heritf.lge week 2007 Tl1is >>MT'S theme is: ((places for people: Our Heritage4 the Ever~oa~JJ Februa~ 1~ } 17th & 18th} 2.007 Nlasar4 square sbo"i"9 Mall Montrose Roa~ - Niasara Falls} Ontario February 16 : noon to 9:00 p.m. February q: 10:00 a.m. to 5=00 p.m. February 18: noon to 4=00 p.m. Ontario Heritage Trust - Heritage Week 2007 - Cobourg Page 1 of 2 Ontario Heritage Trust I central site I feedback I contact I search I site map I frano;:ais I f : . ELGIN 8: WINTER GARDEN THEATRES RENTAL VENUES DONATIONS NEW Home / Proarams I Heritage Week I Heritage Week 2007 - Cobourg I Heritage Week 2007 - Cobourg Celebrating 40 years of conservation Celebrating our heritage conservation successes is the focus of this year's Heritage Week. The Heritage Week theme - Celebrating 40 years of conservation - offers an opportunity for communities across the province to reflect on their own achievements in heritage conservation and celebrate the successes that have helped preserve our past and shape our future. A special Heritage Day kick-off event is set for Monday I February 19, 1:30 p.m. at Victoria Hall in Cobourg. This event will include remarks from several dignitaries - including the Chairman of the Trustl The Honourable Lincoln M. Alexander - and will feature a special presentation on the history of the Trust and its successes. The Trust will also be organizing events for some of its own museum sites such as Fulford Place in Brockvllle and Uncle Tom's Cabin Historic Site in Dresden. Details of these events will be announced soon. Communities across Ontario will celebrate Heritage Week with special events and activities that range from exhibits, lectures and workShops to informal gatherings and tours. Thanks to a generous donation from Scotiabank, the Trust is hosting a webpage dedicated to listing these Heritage Week events and activities. Please continue to visit this pagel as we will be updating it often with new Heritage Week community event listings. Heritage helps build stronger communities and improves our quality of life. Working together, we can ensure that our heritage is protected for present and future generations. We look forward to an exciting Heritage Week celebration! .. Submit a community event .. Submit your heritage achievements .. Community events and activities for Heritage Week 2007 .. Community heritage accomplishments .A-. http://www.heritagefdn.on.ca/userfiles/IfTh1L/nts_l_8620_1.html Central Site j Feedback I Contact I Search J Site Map J 1/30/2007 The Heritage Canada Foundation - Heritage Day Heritage Day Celebrate Ou r Heritage Page 1 of 3 Heritage Day is an opportunity to celebrate the architectural heritage and historic places of Canada. The Heritage Canada Foundation promotes the third Monday in February each year as Heritage Day and has long advocated adopting this date as a national holiday. Heritage 2007: Places for People - Our Heritage of the Everyday As its heritage education theme in 2007, the Heritage Canada Foundation decided to identify and feature the lesser-known but important structures of Canada. This involved delving into the histories of communities where buildings are located as well as the characters and places that shaped them. Heritage places of the everyday- our vernacular architecture-can be as familiar as the corner store, small town bakery, or church on the Prairies. Yet when it comes to defining exactly what vernacular architecture means, it is not easy to come up with a universal definition. The word vernacular was originally used by linguists to mean the "native language of a region" as opposed to a superior (often imposed) language like Latin or Greek. Architectural historians borrowed "vernacular" to mean the native architecture of a region. Vernacular architecture is a form of building that is distinctive to the region where it is practised, based on local needs and preferences. It is an aspect of cultural expression rooted in a particular place, a set of values, and sometimes in an institution. Across Canada there is a wealth of vernacular heritage-some recognized, some undiscovered. This selection of 12 vernacular buildings and places described below is a starting point to explore historical riches in other communities, large cities, small towns and villages, and every place in between. These buildings differ from coast to coast, region to region, in style, materials, and purpose. Vernacular heritage helps to define and, in turn, is defined by the place in which it was built and the individuals who built it. http://www.heritagecanada.org/eng/h_day.html 1/30/2007 The Heritage Canada Foundation - Heritage Day Despite the romance and charm of much vernacular architecture, these structures were built to be used. Their purposes are many, but they seem to fit into simple categories: Where we settle, where we grow, what we need, where we live, where we work, where we do business, where we learn, and where we worship. Each building in the selection had an original purpose and remarkably many continue to function as originally intended. Page 2 of3 As these buildings and stories show, vernacular heritage buildings are often taken for granted and frequently undervalued. Many of these structures have had close calls and were very nearly demolished. Some hold on to life by a slim thread, ignored and generally forgotten. We hope that this project contributes to a greater appreciation for what vernacular heritage means to Canadians and our communities. Everyday buildings and places are the link to our history and shared experience. Vernacular heritage architecture is a legacy that helps us understand ourselves. It is a legacy the Heritage Canada Foundation considers worth conserving and passing on. Featured sites: · 8IDJJrQ?J~l~_9Js~mjlb...~.b.Qp-,_MQ.~~J?.~~Jl!s.,....~~~!s.~tGb~.~~n · Q~lJP_~_llt~r~'_.~bQP.Lt:t~!j.f~~JJ~l9-,[~J?-.99JLq · E.!![m~I~~.6.~!l~.QtB.!!~1i~.QLB!J~ti~Q_..ErlD.9JLf;J~y!f;!rgJ~_'~ng . ~r~b.~m~'.~._6~.!s.~-'Y,__ts:~.mp!yj.!I.~!..QflJ~IjQ · ~1_J:~_~1~J~~_Q!:mr~l1Lti~y_BlY~JLNQrth.Yt.~~1.I~JrjlQrl~~ · P.f;!~99:.t.E.Qiri.~IJ='-QY.~_~_L.Ql1~111f;!9LJ~.tE:!Y.I(.J1.rYJ1~YtIQ1s · ~~'tlJj.9..tll~~ill9J~~Q~irLeJQQ_!s..m!!nl~.Q[QQ.~JY__&_EIQW~1~lQn~j.9.ng-'~~r 6Ij.Qg~_SjQH~J. S~5J.DJQh,._aIitL~_C_Q.lYlItQl~ · 69jJl~~~IQ.~t_~_<!!Jl~nt._=_'.'Ih~_M_~!ft'~1_MQ-'ltB~~JLQJ1~~~ · ~9_tlYtt~:~J~5J.rnJ__6_~~b~Y'tLA'-Q~J1f;! . Jilti !J.9_LEQ9.9J~laflg_l_~.Y'tfQ!Jl1JjJ~ngJIJ1(t_~E..QL~.gQ[ .W.!s.[~.lDl~n....EQ~IQQfn~L~~.ttJ~m~_lJt...Q_~Ig~nt.QDLM~JJjJ9_R~ · Y!!K9.D.ltQt~IJ__Q~W~.QILQi1Y.LY_YIsQ.n T ~JJitQJY For more information about Heritage Day 2007, please contact the Heritage Education Coordinator at heritagedav@heritagecanada.org Heritage 2006: Our Cultural Heritage Places H_~_rltg9.~_.2_0.Q5.__ti.~Iltgg.~_.Qf..E.~jtb_~{Q1!.th...R.ag~. 1J~d.tg9.~__2.Q.o4.Q~fl?.l1gID9.__CaJ}5J.g.~_YQYtb._E'_~g~ t!~Ij.t~g~._2.QQ~Jj~rjta.g~_.QtQ.Y[.IQWllYQyth.E'.~gJ,1. http://www.heritagecanada.org/englh_day.html 1/30/2007 Corporate Services Department Clerk's Division Inter-Department Memorandum NiagaraFt~/l~ TO: Mayor Ted Salci & Members of Council DATE: February 2,2007 FROM: Dean Iorfida City Clerk Ext. 4271 RE: Information from Cyril Leeder You have received this information bye-mail earlier today. Please be advised of the following: Myself, John MacDonald and the Mayor received this e-mail at 1:09 p.m. Friday afternoon asking that it be forwarded to Council. At 1:12 p.m. Mr. Leeder sent it directly to Council. The recent proposal from Capital Sports will be discussed on Monday. p~ Working Together to Serve Our Community Clerks · Finance · Human Resources · Information Systems · Legal · Planning & Development Economic Benefits of the Kingston Sports and Entertainment Centre (L VEC) Kingston Economic Development Corporation April 29, 2005 KED eo KIN 6STO N . ECONOMIC D'fyelopment .Carporation Economic Benefits of the Kingston Sports and Entertainment Centre (L VEC) 1 Introduction This section will examine the economic benefits of building and operating a Large Venue Entertainment Complex (L VEC) in Kingston's downtown core. While such analyses are highly complex, Kingston has the advantage of being able to draw on the solid experience of a number other Ontario cities such as London, Sarnia, Barrie and Brampton that have constructed similar facilities. The economic benefits can be measured in a number of ways. We will look at the tangible benefits such as increased spending, investment, business activity and job creation. We will also look at the intangible benefits - the vitality of the city, our sense of civic pride, our competitiveness with other Ontario jurisdictions, and what we want Kingston to be in the years ahead. Benefits Economic Impact Employment Local Tax Base Incremental Investment Keeping the OHL Increased Tourism Staying Competitive Civic Pride New Image/Positioning ECONOMIC IMPACT ANALYSIS (i) Overview The projected numbers for the Kingston L VEC are: Cost $37.3 million (excluding land) Number of events/year 80+ Capacity 5,000 for ice-related events 6,800 for non-ice Annual total attendance 300,000 Average attendance/event 3,750-4,000 Annual on-site revenue $9 million (ticket sales, concessions, etc.) Average on-site spend/attendee $30 April 29, 2005 Economic Benefits of the Kingston Sports and Entertainment Centre (L VEC) 2 (ii) Direct Employment Benefits Construction Employment L VEC will create an average 750 construction jobs over the scheduled 18 months of the build. (Source: Toronto Construction Association, which estimates that 20 person years of employment are created for each $1 million in construction cost.) L VEC Employment Once LVEC is operational, it will employ approximately 12 full-time and 200 part-time workers (based on similar estimates by Henson Consulting Ltd. for the proposed Oshawa Centre). (iii) L VEC Spin-offs 1. Multiplier Effect The projected $9 million in L VEC revenue a year will flow directly into the local economy, but there will also be a 'ripple' effect as this money spurs new investment, job creation, and additional consumer spending. One way to estimate this broader economic impact is to multiply the direct revenue by a reasonable and accepted factor. For this analysis, we have used factors of between 1.2 and 3.0 in order to identify a possible range. These multipliers are ratios which summarize the total economic benefits of a change in the local economy such as the building of a new manufacturing facility, relocation of a corporate head office, a public policy change or in our case, the building of a world-class sports and entertainment complex. (Source: Miller, W.P. and Armbruster, T. Economic Multipliers: How Communities Can Use Them for Planning. University of Arkansas. Extension Service Printing Services) Multipliers work on the assumption that there are direct or immediate, indirect and induced effects. The direct benefits derived from the L VEC would be the total impact of attracted or retained spending on the site (the $9.0 million cited). The multiplier effect or indirect benefit would occur off-site as spending at community restaurants, hotels, retail outlets and other businesses circulates through the local Kingston economy. Induced effects occur when local households spend some of the additional income they receive in the local area (Source: Miller as above) April 29, 2005 Economic Benefits of the Kingston Sports and Entertainment Centre (L VEC) 3 Multipliers usually range from 1.0 to 3.0 and vary by the amount of economic activity overall in the area -- the intensity of the interaction of other businesses and industries with the initial economic stimulus and the change in economic activity. (Source: Hughes. D.W. Policy Uses of Economic Multipliers Impact Analysis. Choices. Second Quarter 2003.) Assumptions 1. onsite annual ticket sales - range of $7million (driven combination events, revenue from naming rights, sale of privates suites and cluo seats) 2. onsite food & beverage sales - range of $2 million (also includes sale of novelties, pro shop, etc.) 3. total revenue base, therefore, is $9 million on-site 3. a range of multipliers (1.49, 1.75 and 2.5) have been used within an accepted range of 1.0 to 3.0) 4. the conservative 1.49 multiplier is drawn from study by the Bureau of Statistics for the North West Territories which provided multipliers for projects in the arts, entertainment and recreation. Findings · Total direct new spending in the community on-site at L VEC would be $9.0 million annually. . Under the economic multiplier model, the annual impact on the overall economy is estimated to range from $13.4 million to $22.5 million. . The benefit appears to be largely to the hospitality sector/tourism sector. E . M If r A I . conomlc u IP ler nalYSls Total Revenue Base Multiplier Annual Impact on Economy (GDP) $9.0 million 1.49 $13.4 million $9.0 million 1.75 $15.8 $9.0 million 2.5 $22.5 million April 29, 2005 Economic Benefits of the Kingston Sports and Entertainment Centre (L VEC) 2. Economic Modelling - Overall Impact on GDP To validate our economic multiplier analysis, KEDCO asked the Ontario M Tourism and Recreation to use their Tourism Regional Economic Impact computer investment model to provide another statistical perspective on the e impact - direct, indirect, and induced - of the construction of the L VEC on F County. The TREIM model looked at Gross Domestic Product, Labour Inco Government Tax Revenue. The results of the modeling are in the chart below and show that KEDCO's effect in terms of the gain to the economy is conservative, but in the ballpa government's calculations. The TREIM model suggests that the GDP b $26,600,000 versus KEDCO's $22,500,000. The TREIM model also provided overall labour income which, according to the model, will be $19,500,0 government tax revenue which will be $11,200,000. The model also shows th indirect and induced benefits. TREIM Analysis - Economic Impact of Kingston L VEC in Frontenac County Total Direct Indirect Induce $37,300 $26,600 $19,500 $11,200 Ttllnvestment GDP Labour Income Government Tax Revenue * Ontario Ministry of Tourism and Recreation April 2005 $3,200 $2,200 $1,000 $6,200 $3,500 $3,000 $17,200 $13,800 $ 7,200 3. Tourism Spending Another way to look at the impact on the broader economy is to estima additional tourism dollars will likely flow to Kingston as a result of the L VEC. Kingston now attracts more than 2.2 million visitors a year who spend $230 (Source: Statistics Canada, 2003.) Based on these figures, the average visitor about $100. This is reflected in the range of average spending per visitor at various Kingston For example, out-of-town visitors attending the Buskers event each spend an of about $80 on local accommodation, food, shopping, etc. Visitors attend Limestone City Blues Festival, and those at the Kids For Kids Hockey Tour each spend an average of about $150 at local restaurants, hotels, and shops. (S TREIM Model, Ontario Ministry of Tourism and Recreation, economic impac Kingston Buskers Rendezvous, Kingston B.I.A. data on the direct benefits of t 4 in istry of (TREIM) conomic rontenac me and multiplier rk of the enefit is input on 00 and e direct, ($000) d te what million. spends events. average i ng the namen!, ources: t of the he "Kids I 29. 2005 ------ --- Apri Economic Benefits of the Kingston Sports and Entertainment Centre (L VEC) 5 for Kids Hockey Tournament", and a 2003 Audience Profile and Impact, 8020lnfo Inc., August 2003) Out-of-town visitors account for about 40 per cent of total attendance at the Buskers event, 60 per cent of total attendance at the Limestone City Blues Festival, and almost 70 per cent of total attendance at the Kids For Kids Hockey Tournament. Conservatively estimating that 25 per cent of the 300,000 L VEC attendees will be out- of-town visitors, and that each of these visitors will spend an average of $100 on local amenities, the benefit to the overall Kingston economy will be increased tourism expenditures of $7.5 million a year. (300,000 x.25 x $100) Increased tourism expenditures resulting from L VEC will be concentrated primarily during the winter months, helping to offset this traditionally slower period for local businesses. Currently, for example, the downtown restaurants and nightclubs have a total capacity of approximately 20,000 seats, but operate at only about one-quarter of that capacity during November and December. Experience in London, Ontario, and Winnipeg, Manitoba, has shown that restaurant sales have increased significantly (between 30 and 50 per cent) as a result of sports and entertainment centres being built in those cities. (Source: London Free Press, March 23, 2005; Winnipeg Free Press, December 4, 2004.) K. tAt I S d. P tt fO t ft Ings on c ua pen Ing a erns 0 u -0 - owners Kids for Kids B uskers Limestone Stats Hockey Rendezvous City Blues Canada Tournament Fest 2003 Ttl attendance 6,237 100,000 10,000 paid 2,000 unpaid Ttl out-of- 4,312 42,400 6,000 towners Ok ttl 69 42 60 TtI $176 $81 $154 $103 spending/person 4. Tourism Employment It is estimated that increased tourism spending (noted above) will result in more than 150 full-time-equivalent jobs being created in the Kingston area, primarily in the tourism industry. (Source: Extrapolation of figures contained in the TREIM study of the Buskers event.) Based on the Tourism Economic Impact Model of the Buskers event, which generated $3,434,000 in direct new spending and created 76 new full-time jobs, we developed a multiplier of 2.2. This multiplier was then applied to the $7.5 million/year in increased tourism expenditures (anticipated from the operation of the L VEC) in order to determine the number of jobs. ($7.5 million divided by $3.4 million x 76 full-time jobs) April 29, 2005 Economic Benefits of the Kingston Sports and Entertainment Centre (L VEC) 6 5. Incremental Investment In other cities where similar sports and entertainment centres have been built, the evidence shows that there has been significant new investment in residential, retail and office development. This investment has helped rejuvenate/energize the cities' cores, broaden their municipal tax base, and create attractive and people-friendly spaces downtown. Since the opening of the John Labatt Centre in London, Ontario, for example: · there has been more than a 40-per-cent increase in housing stock in the area surrounding the JLC · office and retail vacancies in the area are now at their lowest level in more than a decade · building permits have reached an all-time high 6. Staying Competitive Progressive communities across Ontario have been upgrading their recreational and entertainment infrastructure. Over the past eight years, six modern sports and entertainment venues have been constructed in the province - in Barrie, Sarnia, London, Brampton, Mississauga, and Guelph. In addition, new facilities are planned for Oshawa, Sault Ste. Marie, Windsor and Toronto (for the St. Mike's Majors). A number of these centres are comparable in size to Kingston (114,195 population) - Barrie (103,710), Sarnia (70,876), Guelph (106,170), Sault Ste. Marie (74,566) and London (336,539). (Source: Statistics Canada, 2001 Census, Census Metropolitan Area.) 7. Anchoring the OHL in the Community It is proposed that the new facility would become the home of the Kingston Frontenacs of the Ontario Hockey League (OHL). The Kingston Memorial Centre does not meet League requirements that teams play in home arenas of at least 4,000 seats. This raises the serious proposition of Kingston without the presence of the OHL. April 29, 2005 Economic Benefits of the Kingston Sports and Entertainment Centre (L VEC) 7 The L VEC, with its proposed 5,000 seats for hockey events, offers strong potential to keep the Frontenacs in Kingston based on evidence from other OHL franchises. Sarnia, Barrie and London have witnessed extremely positive impacts as a result of new investment in similar facilities. The Sarnia Stingers have sold out every game since the opening of the new centre in 1998. Their attendance numbers have increased from 2,000 to 4,200 per game -- an increase of 110 per cent. London provides even more evidence. Since the opening of the John Labatt Centre in 2003, game attendance for the London Knights has increased from 3,000 to sell-outs of more than 9,000 during the 2004-2005 season. Attendance figures for the Frontenacs at the Memorial Centre have been in the range of 1,800 to 2,000 per game. At the new L VEC, it is estimated that the team could see attendance increase to 4,000 for regular games and 4,800 for play-ofts. This would provide a boost to revenues and help anchor the Frontenacs in the city. Lift in Attendance at OHL Games due to New Facilit Franchise Old Facility Sarnia Stingers 2,OOO/game 1,800-2,OOO/game New Facilit 4,200/game +110% 9,000/game (2004/05) +2000/0 4,OOO/game (projected) + 100-1220/0 London Knights 3,OOO/game Kingston Frontenacs 8. Improved Image Kingstonians are very proud of their downtown, with 84 per cent in a recent BIA survey indicating that they see the downtown core as the heart of the city and almost 91 per cent seeing it as the city's heritage and cultural district. (Source: Downtown Kingston! B.I.A. Market Analysis, December 31st, 2004. 8020lnfo Inc. - Consultants) In fact, Kingston is considered to have one of the best downtown cores in Canada. L VEC would become a source of civic pride and energize the community by drawing attention and focus to this great asset. Kingston would be seen as progressive, a great place to live and visit, and a good investment locale. L VEC would enhance the quality of life for residents, helping to attract and retain a talented labour pool in today's highly competitive ma rket. As the Mayor's Task Force on L VEC recommended in its report: "It [the L VEC] should be developed in such a way that it becomes a catalyst for future economic development and a source of community pride." April 29, 2005 Economic Benefits of the Kingston Sports and Entertainment Centre (L VEC) 8 9. An economic opportunity Investment in the L VEC in conjunction with the other capital investments that the city is undertaking presents an opportunity to not only depict Kingston as a vibrant and energetic community, but to begin the process of positioning Kingston as an important centre - as the hub of Eastern Ontario - much in the same way that London is now seen as the hub of southwestern Ontario. The John Labatt Centre (JLC) in London which "shattered its attendance and revenue estimates in 2004" has proven to be an outstanding success. (Source: London Free Press, March 23, 2005.) Revenues were 100 per cent higher than anticipated at almost $13 million and the centre drew 600,000 people - 50 per cent more than the projection of 400,000. (Source: National Post, December 11, 2004.) John Labatt Centre in London Projected Actual # of events 80 121 Attendance 400,000 600,000 Revenue $6 million $13 million The JLC has been able to attract top-notch talent (Sting, Cher, Sarah McLachlan, Disney on Ice, Stars on Ice, Nickelback) and to draw attendance from Windsor and Detroit, which are two hours away. At the present time, Kingston does not have a venue to attract world-class talent. The Kingston L VEC would be the only facility of its kind in Eastern Ontario between Oshawa and Ottawa, drawing from a population of 1,392,346 and with little or no competition. (Eastern Ontario includes Renfrew, Lennox and Addington, Lanark, Frontenac, Leeds and Grenville, Prescott and Russell, Stormont, Dundas and Glengarry as well as the City of Ottawa.) Also it should be noted that Kingston is only a two-hour drive from the eastern edge of Toronto and within driving distance of Ottawa and Syracuse, New York. (Source: Statistics Canada, 2001 Census data.) April 29, 2005 NIAGARA FALLS SPORTS & ENTERTAINMENT CENTRE I. Project rationale: · Municipalities across Ontario and Canada have made significant investments in infrastructure to support sports, entertainment and tourism initiatives in their communities. The proposed multi-purpose Sports & Entertainment Centre ("SEC") for Niagara Falls would represent such an investment by the municipality. · Recent examples include London, Oshawa, Sarnia, Windsor, Kingston, Barrie, Mississauga, Sault St. Marie. · This investment will generate a direct financial return for the City. Our proposal includes a significant annual cash flow stream for the City from the operations of the SEC, which would enable the City to finance a significant portion of the capital cost. · The economic impact of bringing an OHL team back to Niagara Falls, as well as the economic activity generated by the major events hosted by such a facility will be significant. · Niagara Falls is uniquely positioned to reap even larger benefits than the other municipalities in Ontario due to its strategic border location and the natural synergies that will develop between the existing tourist attractors and the new facility. · Development of the SEC in the right location will also serve as a catalyst for downtown renewal and revitalization. II. Project participants: A significant project of this magnitude and benefit to the community will take the teamwork and contributions from the City of Niagara Falls, Stadium Consultants International, Ellis Don Construction, the team's proposed owner Mr. Bitove and Capital Sports Management Inc. as the facility manager. III. Project Summary - Niagara Falls Sports & Entertainment Centre · The City will construct and own the SEC, a 5200 multi-use sports and entertainment centre, at a location to be determined, preferably downtown and in close proximity to the Casino and proposed convention centre. · Stadium Consultants International and Ellis Don Construction will enter into a design-build agreement with the City. Ellis Don Construction will construct the SEC for a fixed price and assume the risk of cost overruns. · The Club will enter into a long-term license agreement with the City, acting as the anchor tenant in the SEC. · Mr. Bitove and Capital Sports Management Inc. will enter into a long-term management agreement with the City to operate the SEC. The City will receive 80% of the net cash flow generated by the SEC, projected to average close to $1.4 million per year over 30 years. PAGE 1 OF 4 NIAGARA FALLS SPORTS & ENTERTAINMENT CENTRE IV. Project Scope and Financing · Development and construction cost estimated at $37.8 million · A financing package could be assembled as follows: Source millions New City debt, supported by SEC cash flow Re-allocation of savings from NF twin pad project Additional fundin $18.0 10.7 9.1 Total $37.8 New City debt supported by SEC cash flow: Based on the business plan and 30 year proforma submitted to the City, the City's share of the net cash flow from the SEC operations could support debt of $18.0 million or more. Re-allocation of savings from Niagara Falls twin pad project: We understand that the City has allocated $18.0 million in capital budget funds to construct a twin pad facility. SCI has proposed a more efficient twin-pad design with a $7.3 million capital cost. Should the City alter its plans for the twin-pad and construct this more efficient version, it could chose to re-allocate the savings ($10.7 million) to fund a portion of the SEC construction costs. Additional funding: A further $9.1 million in funding will be required. This may come in the form of federal! provincial grants, development charges on downtown revitalization, capital funds allocated to the downtown parking structure, incremental tax financing, sale of surplus City land or existing City reserve funds. All of these sources of capital have been utilized by other municipalities to finance similar facilities. PAGE 2 OF 4 NIAGARA FALLS SPORTS & ENTERTAINMENT CENTRE v. Com parables in Ontario Kingston - under construction · $41.8 million · 5,125 capacity · Financed as follows: o City debt $24.3m o Provincial government $4.0m o Downtown BIA contribution $3.0m o Private donations $2.0m o Development charges $3.0m o Kingston Accommodation $3.0m o City reserves $3.4m · Estimated direct economic impact - $13.4m to $26.6m per year, estimated # of out of town visitors to Kingston - 75,000 per year / $7.5m increased tourism spending, 150 incremental full-time jobs in the tourist industry. London - John Labatt Centre · $46.2 million · 9,000 capacity · Financed as follows: o City debt $31.7m* o Private sector $9.5m o Fed/Provincial government $5.0m o *City share of cash flow services only a portion of this $31.7 million, structured as follows - Years 1-2 - NIL, Years 3-5 - 20%, Years 6-10 - 45%, Years 11-50- 70% · In 2005, the facility attracted 750,000 visitors, hosted the Memorial Cup, had concert ticket sales ranked 2nd in the world for facilities of its size by Pollstar Magazine Oshawa - General Motors Centre . $45 million · 5,400 capacity · Financed as follows: o City debt $45m PAGE 3 OF 4 NIAGARA FALLS SPORTS & ENTERTAINMENT CENTRE VI. Economic Impact of Proposed Facility · Value of annual cash flow from operations of the SEC to the City - $18m over 30 years · Annual economic benefits of an CHL franchise to the host community have been estimated as follows: · $1.8m in direct economic benefit · $6.2m in indirect economic benefit · $7.6m in induced economic benefit · Estimated economic impact of the Kingston Sports & Entertainment Centre on the City of Kingston have been estimated at: · $13.4m to $22.5m of local economic activity · 75,000 incremental tourists spending $7.5m per year · 150 new full time jobs in the tourism industry · Incremental investment - building the SEC will trigger significant new investment in retail, residential and office development - using London as an example, since the opening of the John Labatt Centre: · 40% increase in housing stock in the area surrounding JLC · office and retail vacancies in the area are at their lowest level in more than a decade · building permits have reached an all-time high · Major events which will be hosted at the SEC have major economic impact: · 2006 World Junior Hockey Championship, Vancouver BC - $41m in economic activity in.Vancouver and BC · 2006 Skate Canada estimated economic impact on City of Ottawa - $8m · 2004 Nokia Brier Economic Impact Assessment - $23.2m economic impact on the Province · 2002 Skate Canada economic activity for Quebec City - $4.46m · 2004 Scott Tournament of Hearts - $8.5m estimated economic impact on Red Deer area PAGE 4 OF 4