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1 Report to Rapport Au: Finance and Economic Development Committee 1 Report to Rapport au: Finance and Economic Development Committee Comité des finances et du développement économique 6 December 2016 / 6 décembre 2016 and Council et au Conseil 14 December 2016 / 14 décembre 2016 Submitted on November 29, 2016 Soumis le 29 novembre 2016 Submitted by Soumis par: John Smit Acting Director / Directeur par intérim Economic Development / Développement économique / Planning, Infrastructure and Economic Development Department / Services de la planification, de l’infrastructure et du développement économique Contact Person Personne ressource: Krista Kreling Economic Development Officer / Agent du développement économique, Economic Development / Développement économique Planning, Infrastructure and Economic Development Department / Services de la planification, de l’infrastructure et du développement économique 613-580-2424, 26167, [email protected] Ward: CITY WIDE / À L'ÉCHELLE DE LA File Number: ACS2016-PIE-EDI-0006 VILLE SUBJECT: 2021 Canada Summer Games Bid: Commitments of Host Community OBJET: Candidature pour accueillir les Jeux d’été du Canada de 2021 : engagements de la collectivité hôte 2 REPORT RECOMMENDATIONS That the Finance and Economic Development Committee recommend that Council: 1. Approve the City of Ottawa’s Bid to be a Host City for the 2021 Canada Summer Games, in accordance with the 2021 Bid Procedures and Hosting Standards provided by the Canada Games Council and as described in this report and in Document 1; 2. Delegate the authority to the City Treasurer to assist the Ottawa 2021 Bid Committee on the preparation of the City’s financial management plan, as described in this report; 3. Direct the Director, Economic Development, in consultation with the 2021 Canada Summer Games Host Society and only if the City of Ottawa is selected to be a Host City, to develop a 2018-2021 capital improvement plan outlining the City’s capital funding responsibilities in advance of the 2018 Budget process for Committee and Council consideration. RECOMMANDATIONS DU RAPPORT Que le Comité des finances et du développement économique recommande ce qui suit au Conseil : 1. D’approuver la candidature de la Ville d’Ottawa comme hôte des Jeux d’été du Canada de 2021, conformément au document sur le processus de candidature et les normes d’accueil pour 2021, fourni par le Conseil des Jeux du Canada, et comme il est décrit dans le présent rapport et dans le document 1; 2. De déléguer à la trésorière municipale le pouvoir de collaborer avec le Comité de mise en candidature d’Ottawa 2021 à la préparation du plan de gestion financière de la Ville, comme il est décrit dans le présent rapport; 3. De charger le responsable de Développement économique d’élaborer, en consultation avec la Société hôte des Jeux d’été du Canada de 2021 et seulement si la Ville d’Ottawa est désignée ville hôte, un plan d’amélioration des immobilisations pour la période 2018-2021 décrivant les responsabilités de la Ville en matière de mise de fonds, préalablement au processus budgétaire de 2018, aux fins d’examen par le Comité et le Conseil. 3 EXECUTIVE SUMMARY Assumptions and Analysis Mayor Watson announced the City’s intention to bid for the 2021 Canada Summer Games in his State of the City Address on January 27, 2016. Since that time, an official letter of intent to host has been submitted, the Phase 1 technical requirements for Ottawa’s bid have been met, and the second and final phase of the bid is underway. While the first phase focused on assessing the readiness of sport and non-sport venues to host the Games and seeking the support of local sports chairs and private venue operators, the second phase of the bid is focused on mobilizing community support, and demonstrating readiness and capacity to host. The purpose of this report is to provide an update regarding the City’s bid for the 2021 Games and to seek Council approval of the standards and commitments required by this bid. Specifically, the report outlines the City’s financial and in-kind commitments required to host the 2021 Games, which will have an overall value of $10.5 million. Should Ottawa be selected as the Host City, the report also recommends the delegation of authority to the Treasurer and Director, Economic Development to undertake the next steps, including the development of a capital improvement plan, outlining the City’s capital funding responsibilities. These next steps would come back to Committee and Council for final approval. Financial Implications The estimated capital and operating costs to deliver the 2021 Canada Summer Games is $43.128 million. Of which, the City is responsible for $10.5 million, as follows: $220,000 for the Rights and Transfer of Knowledge fees and $280,000 for the Host Society’s start-up costs; $8,000,000 for capital improvements to City-owned facilities; and $2,000,000 of operating value-in-kind support to the Host Society. In addition, the Bid requires that the City assumes responsibility for any financial deficit associated with the Games. Based on the revenue outcomes from past games (Table 1) and the proposed budget for the City of Ottawa 2021 Canada Summer Games (Table 2), it is expected that the Games will not result in a deficit. However, in the event that a deficit does occur, it will be addressed through the City’s Year-end Disposition report or through a contribution from the Provision for One-Time or Unforeseen. 4 Public Consultation/Input To date, more than 100 key stakeholders, including local sports chairs, business leaders, tourism experts and arts and cultural organizations, have been involved in developing the City of Ottawa’s bid for the 2021 Canada Summer Games. RÉSUMÉ Hypothèses et analyse Le maire Watson a annoncé, dans son discours sur l’état de la Ville du 27 janvier 2016, l’intention de la Ville de présenter sa candidature pour accueillir les Jeux d’été du Canada de 2021. Depuis, une lettre d’intention officielle à cet effet a été transmise, les exigences techniques de la phase 1 de la candidature d’Ottawa ont été satisfaites, et la seconde et dernière phase de la candidature a été entamée. Tandis que la première phase était axée sur l’évaluation de l’état de préparation des installations sportives et non sportives en vue d’accueillir les jeux et sur la recherche de soutien de présidents d’organismes sportifs et d’exploitants de sites privés, la seconde phase de candidature porte essentiellement sur la mobilisation de soutiens communautaires et sur l’attestation de l’aptitude et de la capacité à accueillir l’événement. Le présent rapport a pour objet de faire le point sur la candidature de la Ville aux Jeux de 2021 et de solliciter l’approbation du Conseil quant aux normes et aux engagements devant être respectés dans cette mise en candidature. Plus particulièrement, le rapport décrit les engagements financiers et en nature que la Ville doit prendre pour accueillir les Jeux de 2021, qui se chiffrent au total à 10,5 millions de dollars. Le rapport recommande par ailleurs, si la candidature d’Ottawa était retenue, que soit délégué à la trésorière et au responsable de Développement économique le pouvoir d’entreprendre les étapes suivantes, notamment l’élaboration d’un plan d’amélioration des immobilisations exposant les responsabilités de la Ville en matière de mise de fonds. Ces étapes seraient soumises à l’approbation définitive du Comite et du Conseil. Répercussions financières Les coûts de fonctionnement et d’immobilisations associés à la tenue des Jeux du Canada 2021 sont estimés à 43,128 M$. De cette somme, la Ville assume 10,5 M$, répartis comme suit : 220 000 $ pour les frais liés aux droits et au transfert des connaissances et 280 000 $ pour les frais de démarrage de la société d’accueil des Jeux; 8 M$ pour les améliorations apportées aux installations municipales et 2 M$ pour le soutien offert en nature à la société d’accueil. 5 De plus, l’appel de candidatures exige que la Ville assume la responsabilité de tout déficit financier associé aux Jeux. À la lumière des revenus dégagés des jeux qui ont eu lieu par le passé (Tableau 1) et du budget proposé par la Ville d’Ottawa pour la tenue des Jeux du Canada 2021 (Tableau 2), on prévoit que les Jeux n’entraîneront pas de déficit. Toutefois, si un déficit survenait, il en serait fait état dans le rapport de cession de fin d’exercice de la Ville ou serait payé à même le fonds pour les événements imprévus et ponctuels. Consultation publique et commentaires À ce jour, plus d’une centaine d’intervenants clés, notamment des présidents d’organismes sportifs locaux, des chefs d’entreprise, des experts en tourisme ainsi que des représentants d’organisations artistiques et culturelles, ont participé à la préparation de la candidature de la Ville d’Ottawa pour accueillir les Jeux d’été du Canada de 2021. BACKGROUND The purpose of this report is to provide an update regarding the City of Ottawa’s bid for the 2021 Canada Summer Games and to seek Council approval of the standards and commitments required of this bid. Canada Summer Games The Canada Summer Games are the largest multi-sport event in the country for young athletes, and a premium nation-building event that enriches Canadian culture and creates lasting legacies. Taking place every four years, the Canada Summer Games consist of a two-week sporting event that takes place in late July and early August. In terms of positive economic impact, the Games rank alongside other major sporting events, such as the Grey Cup, World Junior Hockey Championship, and FIFA championships. This sporting event is a key step in developing the next generation of elite Canadian athletes; at the Rio 2016 Olympics, 64 per cent of Team Canada medalists were Canada Summer Games alumni.
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