IN CAMERA

ADMINISTRATIVE REPORT

Report Date: January 15, 2013 Contact: Thomas Soulliere Contact No.: 604.257.8692 RTS No.: 9935 VanRIMS No.: 08-2000-21 Meeting Date: January 16, 2013

TO: Vancouver City Council

FROM: General Manager, Park Board

SUBJECT: 2014 Americas Masters Games Event Proposal

IN CAMERA RATIONALE

This report is recommended for consideration by Council in the In Camera agenda as it relates to Section 165.2(1) of the Vancouver Charter: (k) negotiations and related discussions respecting the proposed provision of an activity, work or facility that are at their preliminary stages and that, in the view of the Council, could reasonably be expected to harm the interests of the city if they were held in public.

RECOMMENDATION *

A. THAT Council authorize the City to be a host city for the 2014 Americas Masters Games to be held in August 2014 subject to firm commitment for funding by senior levels of government and other partners as outlined in the proposed budget.

B. THAT any and all legal agreements with International Masters Games Association (IMGA) and any other required parties required to facilitate the City’s role as host city be on such terms and conditions as are satisfactory to the City Manager, Director of Finance and Director of Legal Services.

C. THAT upon approval of such terms pursuant Recommendation B, the Director of Legal Services be authorized to execute and deliver such legal agreements on behalf of the City.

D. THAT no legal rights or obligations be created by the adoption of these Recommendations unless and until such legal agreements are executed and delivered by the Director of Legal Services.

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REPORT SUMMARY *

This report recommends that the City Manager and Director of Legal Services be instructed to negotiate and execute contracts with the organizations responsible for the August 2014 event. The City’s investment will consist of “in-kind” contributions, relating to facility access, with a value of approximately $200K. City participation is subject to appropriate investments from other partners, including the provincial and federal governments. The Masters Games is well- aligned with the City’s priorities relating to sport hosting and the promotion of healthy, active lifestyles as described in the Vancouver Sport Strategy.

COUNCIL AUTHORITY/PREVIOUS DECISIONS *

There is no applicable Council Authority or previous decisions relevant to this report.

CITY MANAGER'S/GENERAL MANAGER'S COMMENTS *

REPORT

Background/Context *

Masters sport is a generic term that encompasses veterans, seniors and other forms of mature-aged sport. Participants in Masters Games may be former world champions, Olympians, club athletes, or recreational sportspeople. Masters sport is very popular amongst Canadians. The World Masters Games held every four years are well-attended by Canadians; comprising of the largest international group at the recent event in Sydney (2009). In 2005 the City of Edmonton hosted the World Masters Games and attracted participants from 87 countries.

The emphasis on participation and ‘sport for all’ has made masters sport accessible to people of varying abilities and performance levels. For many of these athletes, masters sport is as much a social occasion as a sport event—a chance to meet others with an interest in exercise for enjoyment, recreation and health promotion. Masters sport is becoming even more important for community sport and health as the population ages.

2014 will mark the 1st edition of the Americas Masters Games (AMG 2014), a nine-day “festival of sport and culture” and could be the Province’s largest multi-sport masters event in terms of the number of athletes participating.

The Masters Games are held under the auspices of the International Masters Games Association (IMGA) and are recognized by the International Olympic Committee (IOC).

There are no qualifications other than a minimum average age per sport as set by the International Sport Federation. The average age of participants is between 40 yrs and 60 yrs. The AMG 2014 would adopt an “open” registration process so that any participant from anywhere in the world can attend.

All sports participating in the AMG 2014 are fully sanctioned by their international sport federation. Unlike other large sport events, there is no major infrastructure, transportation, Americas Masters Games Event Proposal - 9935 3

or security overlay. Any increased security presence is limited to traffic management due to outdoor sport events, such as triathlons and cycling, or for social events such as outdoor celebrations and cultural events.

Upwards of fifty venues will be used to host 20 core sport competitions that would be free for the general public to attend. These include athletics, badminton, basketball, cycling, dance sport, field hockey, golf, ice-hockey, lacrosse, martial arts (judo, karate, taekwondo), rowing, rugby, soccer, swimming, softball, table tennis, triathlon, volleyball, and weightlifting. Paralympic sports not requiring overlay and approved by the International Paralympic Committee (IPC) will be integrated and run simultaneously. An official opening and closing ceremony with world-class entertainment for the entire community to access would also be featured.

The event will be planned and delivered by a consortium of partners Host City Organizing Committee consisting of a Board of Directors comprised of community, business and sport leaders, a staff of 20-30 and a volunteer workforce of 2000+.

The AMG 2014 will develop a charitable scheme that would see donations to local community and grassroots sports organizations. It would also help build sport leadership and volunteer capacity and leave a positive legacy for the selected sports to further promote their sport to all ages across the province.

The hosting of the AMG 2014 will showcase Vancouver and British Columbia once again on the international sport scene to a worldwide group of mature travelers. It is estimated that the AMG 2014 would attract approximately 10,000 – 15,000 athletes. The final registration of participants would be dependent on the approved sport program and the number of facilities available to match capacity.

Strategic Analysis *

The opportunity for Vancouver to host this event is unique and will build on the city’s growing reputation as a world-class hosting destination while also aligning with Council priorities relating to active living, economic development and community engagement. In addition, the 2014 event presents yet another occasion for the City to collaborate with partners from the region and beyond to maximize potential benefits and minimize risks associated with the venture.

Tourism Vancouver, Vancouver Hotel Destination Association and PavCo have already provided non-refundable contributions towards the "rights fee" ($100K) as well as resources to examine the feasibility of hosting the event ($30K). Other hosting partners are expected to include UBC, ViaSport, the provincial and federal governments and potentially other municipalities (Richmond has expressed an interest).

Implications/Related Issues/Risk (if applicable)

Financial *

An analysis of the anticipated financial implications of hosting this event has been completed by a consultant on behalf the local partners, at the expense of the Vancouver Hotel Americas Masters Games Event Proposal - 9935 4

Destination Association. The report builds on evidence from other international Masters Games held in Canada, Europe and Australia and concludes that the event will require an operating budget of approximately $8.5M (Table 1.0). The majority of costs are expected to be off-set through revenues received via participant registration, sponsorship and other funding including investments from all three levels of government, as well as in-kind contributions by hosting partners. The City’s contributions will include access to venues on a “cost-recovery” basis. Any net losses would be assumed to be shared amongst the partner organizations.

Table 1.0 Proposed Operating Budget

Revenues

Government/Local Funding Federal Funding $1,000,000.00 Provincial Funding $2,000,000.00 Other Local Support $500,000.00 Total Government/Local Funding $3,500,000.00

Registration $3,510,000.00

Sponsorship Sponsorship-Cash $500,000.00 City of Vancouver Value-In-kind $200,000.00 Sponsorship-In-Kind $565,053.00 Total Sponsorship $1,265,053.00

Commission & Interest $245,000.00

Total Revenues $8,520,053.00

Expenses

Sport Venue Operations $939,626.15 Equipment $304,195.65 Officials & Personnel $382,557.10 Medical $279,676.60 Anti-Doping $13,375.00 Sport Presentation $39,108.50 Medals $212,213.10 Total Sport Venue $2,170,752.10

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Market, Sales & Communications Competitor Recruitment $353,100.00 Branding $227,910.00 Ceremonies & Events $1,278,289.00 VIP $80,250.00 Total Market, Sales & Commission $1,939,549.00

Games Services Accreditation $47,936.00 Volunteers $267,500.00 Procurement & Logistics $160,500.00 Catering $5,243.00 Games Centre $46,010.00 Uniforms $21,400.00 Technology $89,880.00 Total Games Services $638,469.00

Finance & Corporate Services Salaries $2,415,522.86 Office Space $97,500.00 IMGA Rights Fee $749,000.00 Corporate Services $154,508.00 Total Finance & Corporate Services $3,416,530.86

Total Expenses $8,165,300.96

Contingency $350,000

Legal

A “host-city agreement” is the key legal requirement anticipated and will be reviewed and finalized with the direction of the Director of Legal Services.

CONCLUSION *

This report requests that Council instruct the City Manager and Director of Legal Services to negotiate and execute legal agreements on behalf of the City for the 2014 Americas Masters Games subject to obtaining written commitment from partners as per the above budget.

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Appendix A

Summary – Americas Masters Games 2014

2014 will mark the 1st edition of the Americas Masters Games (AMG 2014), a nine-day “festival of sport and culture” and could be the Province’s largest multi-sport masters event in terms of the number of athletes participating.

The AMG 2014 budget, based on the IMGA guidelines, is estimated at $8M. It anticipates contributions by the Province of BC, City of Vancouver and corporate sponsors. Included in budget revenues is the participant registration fee and sponsorship. A rights fee of $200K CAD would be paid to the IMGA upon signing of the Host City Agreement.

Hosting the AMG 2014 in British Columbia will provide economic benefits that would help drive tourism and build a legacy for the featured sports amongst masters athletes while promoting health and wellness. The AMG 2014 is expected to generate between $36-$42M in direct spending by the participants and their guests who would stay on average between 9 and 12 nights on their ‘sport holiday’.

Below are some statistics based on the World Masters Games:

Sydney World Masters Games 2009 Visitor Profile No. of participants 28,676 (95 countries, 1/3 overseas participants, Canada was the biggest international group with 2,242 competitors) Accompanying visitors .56 per participant Average length of stay 15 nights for international visitors Age of participants Minimum age varies by sport, but most = 30 years. Average age of competitors in 2009 was 50 years. Income Mean annual household income was approx. $130,000 Qualifications 78% had a university degree or higher Pre-Post Touring 56% engaged in tours of an average 9 days

Edmonton World Masters Games 2005 Visitor Profile No. of participants 25,600 (87 countries, 33% international participants) Accompanying visitors .58 per participant Average length of stay 15 nights for international visitors Age of participants 65% were between 41 and 60 years, with a further 16% being older than 60. Income Mean annual household income was approx. $107,352 Qualifications 79% had a university degree or higher Pre-Post Touring 56% engaged in tours of an average 9.4 days