1 Report to Rapport Au: Finance and Economic Development Committee

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, Krista.Kreling@ottawa.ca

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.

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.

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.

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.

Bid Process and Timeline

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 2021 Canada Summer Games will take place in Ontario, and as such, Ottawa is bidding against three other Ontario contenders for this event: Niagara Region; City of Greater Sudbury; and the combined communities of Kitchener, Waterloo, Cambridge and Guelph. Because the Games rotate through all Canadian Provinces and Territories, this is the City of Ottawa’s only chance in the next 20 years to host the Canada Games. The Canada Games Council’s Bid Evaluation Committee is responsible for undertaking the review of bidding communities and making a recommendation on the award of the Games to its Board of Directors. Prior to the public announcement of the successful 2021 host community, notification is provided to the Province of Ontario on which bid can best meet the Canada Games hosting standards.

There are several upcoming key dates in the bid and decision-making process:

 January 12, 2017: Community Launch Event of the City of Ottawa’s bid

 January 31, 2017: Phase 2 Comprehensive Host Community Bid Proposal to be submitted to the Canada Games Council.

 March 2, 2017: Bid Evaluation Committee to visit Ottawa

 By early April 2017: Host community to be selected.

Bid Proposal

Simple and compact, the City of Ottawa’s bid for the 2021 Canada Summer Games offers an outstanding Athletes’ Village concept and venue clusters that would offer an inspiring Games experience for athletes and spectators alike. With more than 20 existing sport and non-sport venues all within less than a 30 minute drive of the Athletes’ Village, Ottawa’s bid leverages existing venues owned and operated by the City of Ottawa and the Government of Canada, as well as privately run venues by Carleton University, the University of Ottawa, the Ottawa Sports and Entertainment Group, Camp Fortune, Nepean Sailing Club and the Ottawa Tennis and Lawn Bowling Club. The City’s bid will also demonstrate its expertise in delivering major events, especially as it pertains to spectator experience, and traffic, transportation and crowd management. Overall, the City of Ottawa’s bid aims to:

 Deliver a sport focused and athlete centered Games.

 Engage spectators, media and the public.

 Facilitate smooth and efficient Games operations.

 Leave a sustainable legacy for Canada and the Ottawa sport community.

Bid Assessment Criteria

The first phase of the bid was worth 400 points and assessed the readiness of sport and non-sport venues to host the Games. The second phase of the bid is worth 600 points and will be assessing community readiness and capacity. A significant portion of points in this last phase are awarded to demonstrating community leadership, capacity, support and engagement, and feasible marketing, communications, budget and revenue generation strategies.

Bid Governance

The Ottawa 2021 Bid Committee, which has representation from the local business community, Ottawa Tourism, the City of Ottawa and sports organizations, has been struck to oversee the bid process, and includes the following members: Darrell Cox, Manager, Major Events, Ottawa Tourism; Sue Holloway, Canadian Olympic medalist (Committee Co-Chair); Lindsay Hugenholtz (Bid General Manager); Bob Johnston, Principal, JSA Sport Architecture; Krista Kreling, Economic Development Officer, City of Ottawa; Cyril Leeder, President, Ottawa Senators Hockey Club (Committee Co-Chair); Delores MacAdam, Business Partner, Marketing & Communication, City of Ottawa; Brian MacPherson, CEO, Commonwealth Games Canada; Marci Morris, Executive Director, Ottawa Sport Council; Bob O’Doherty, Past Senior Vice-President of Sports and Venues, Toronto 2015 Pan/Parapan American Games; Marc Seaman, National Director of Corporate and Public Affairs, Microsoft and Chair of the Shaw Centre; and Mark Sutcliffe, Host of Ottawa Today, 1310 News.

Dozens of other community leaders, private venue owners and national sports chairs have been instrumental in volunteering their time and expertise in developing the City of Ottawa’s bid for the 2021 Canada Summer Games. To date, more than 100 key community stakeholders have been engaged in this process.

Bid More, Win More, Host More

Promoting the nation’s capital as an ideal location for major national and international events and conventions is a cornerstone of the City’s economic development plan. The

City developed the Bid More, Win More, Host More strategy in partnership with Ottawa Tourism to promote Ottawa as a world-class event hosting destination, create jobs and grow the local economy. The 2021 Canada Summer Games bid is a project initiated under this strategy.

DISCUSSION

Critical to the success of the second phase of the 2021 Canada Summer Games bid is City Council’s approval of the Games’ hosting standards, agreement requirements, and financial and legacy commitments. Council approval of these commitments is instrumental in demonstrating Ottawa’s readiness and capacity to host the Canada Summer Games as well as its ability to comply with the care and comfort standards of the Games. All Ontario municipalities vying for the 2021 Games are required to demonstrate this level of commitment.

Economic Impact

Bidding for the 2021 Canada Summer Games is a significant endeavor, not only from the perspective of the bid process, but also because of the financial commitments required of the host community.

While the cost of hosting the Canada Summer Games is significant, the projected economic activity is also substantial: the Canada Summer Games were last held in Sherbrooke, Quebec in 2013, where they attracted 16,000 visitors and generated $165 million in net economic benefits. The 2015 and 2011Canada Winter Games in Prince George and Halifax yielded $123 million and $131 million in net economic benefits, respectively.

The 2011 Canada Winter Games in Halifax, which most closely compares to the City of Ottawa’s bid in terms of proposed budget and capital upgrades, generated the following economic activity:

 30,000 occupied hotel room nights

 1,112 jobs

 $40.4 million in wages and salaries

It is anticipated that the 2021 Games would result in approximately 3,000 occupied hotel rooms each day throughout the two week period of the Games, which would generate considerable economic activity for the local hospitality and tourism sector. Furthermore, bricks and mortar improvements made to recreation facilities throughout the city would

9 not only benefit community recreational use of these facilities, but would also strengthen the City of Ottawa as a premier destination for major sporting events.

Canada Games Legacy

In addition to economic benefits, the host municipality has an opportunity to deliver a unique set of legacies. Creating sustainable legacies is a fundamental commitment of the Canada Games movement. Notable legacies of the Games include:

 Highly skilled and trained volunteers. More than 5,000 volunteers will be required to deliver the 2021 Games.

 Enhanced sport development training for sports officials, coaches and athletes

 World-class sport and medical equipment

 Sustainable development and accountability

 Financial legacy endowment (sport legacy fund)

 National awareness, pride and unity

The Games also represent an important milestone in the span of an athlete’s development. For some athletes, the Games are the biggest event that they will ever compete in. For others, the Games are a key building block to greater successes; Eugenie Bouchard, Andre De Grasse and Steve Nash are all Canada Summer Games alumni.

Recommendation 1 – Approve the City of Ottawa 2021 Canada Summer Games Bid to the Canada Games Council

Based upon and subject to the public financial planning assumptions provided by the Canada Games Council, it is recommended that Council make the following commitments related to the City of Ottawa’s bid proposal for the 2021 Canada Summer Games:

 Agree to accept all hosting standards for the 2021 Canada Summer Games, as described in the 2021 Bid Procedures and Hosting Standards document provided by the Canada Games Council (Document 1)

 Agree to be responsible for any financial deficit (capital and operating) associated with the Games

 Provide the first 25 per cent of the Rights Fee and Transfer of Knowledge Fee ($220,000), upon award of the Games, to the Canada Games Council in 2017

 Provide $280,000 to the Host Society to assist with initial start-up operational costs to ensure an efficient transition from bidding community to Host Society in 2017

 Commit $3 million in cash to the Host Society for capital improvements at City recreation facilities identified as venues for the 2021 Canada Summer Games and $5 million in additional capital improvements to City of Ottawa recreation facilities identified as venues for the 2021 Canada Summer Games

 Contribute $2 million in operating value-in-kind support to the Host Society from 2017 to 2021

 Confirm that the Ottawa International Airport will meet the Hosting Standards of the Canada Games, and that a letter of confirmation from the Ottawa International Airport Authority will accompany the bid proposal

 Confirm the understanding that Bid Communities have the authority and power to grant local community sponsors certain rights and opportunities pertaining to the Community bid only, and that Bid Communities and eventual Host Societies must acknowledge the need to work within a team approach and abide by the guiding sponsorship principles referenced in the 2021 Bid Procedures and Hosting Standards document provided by the Canada Games Council

 Delegate the authority to the General Manager of the Recreation, Cultural and Facility Services Department to incorporate the words “Canada Games” and “Jeux du Canada”, and the Canada Games logo in the name of one City facility that is renovated for the Games in conformance with Canada Games Hosting Standards and subject to concurrence by the Ward Councillor

 Confirm that the City of Ottawa will sign an Agreement to Undertake upon award of the Games, which will reflect the above commitments as well as other key commitment, terms and conditions through the bid phase

 Confirm that the City of Ottawa will ensure that the Host Society, upon incorporation, will enter into a Joinder Agreement with the Canada Games Council which binds the Host Society to the Agreement to Undertake, and to the signing of the Trademarks Agreement and Hosting Agreement with the Canada Games Council

 Confirm that the City of Ottawa, in cooperation with its Bid Committee, will submit agreements for all facilities (City-owned and operated, and private) at the Bid level that comply with Hosting Standard #40-M-01

Canada Games Hosting Standards

The Canada Games Council (CGC) has standards and requirements to host successful Games, in which bidding municipalities are required to confirm and approve. (Document 1) Phase 1 results of Ottawa’s bid indicated that sport and non-sport venues have the capacity to host the Games. City Council’s approval of these care and comfort standards would further demonstrate the City’s readiness to host in 2021.

Agreement to be responsible for any deficit associated with the Games

The CGC requires that the host municipality agree to be responsible for any operating and capital deficit associated with the Games. There has never been a deficit in the history of the Canada Summer Games dating to 1993. (Table 1) Thus, the likelihood of a deficit is low. The majority of these surpluses were re-invested in local communities and/or in legacy funds to foster youth sport development.

Table 1 – Revenue outcomes of previous Canada Games: 1993 to 2015. Source: Canada Games Council

Year Canada Games Location Revenue Outcome

1993 Kamloops, BC $1,300,000 surplus

1995 Grand Prairie, AB $1,800,000 surplus

1997 Brandon, MB Break even

1999 Corner Brook, NL $2,600,000 surplus

2001 London, ON $250,000 surplus

2003 Bathurst and Campellton, NB $180,000 surplus

2005 Regina, SK $3,400,000 surplus

2007 Whitehorse, YK Small surplus

2009 PEI $3,300,000 surplus

Year Canada Games Location Revenue Outcome

2011 Halifax, NS $200,000 surplus and $1,000,000 legacy fund

2013 Sherbrooke, QB $510,000 surplus

2015 Prince George, BC $637,000 surplus and $550,000 legacy fund

Provision of the first 25 per cent of the Rights Fee and Transfer of Knowledge Fee ($220,000)

Upon award of the Games, the CGC requires that the successful host community provides the first 25 per cent of the Rights Fee and Transfer of Knowledge Fee ($220,000) to the CGC to begin its program with the Host Society. The Transfer of Knowledge program aims to make the work of the Host Society easier and more efficient, and ensures that the Host Society has the day-to-day guidance, support and tools to plan and deliver the Games. This fee ensures that Ottawa would have all of the information and lessons learned from previous games. (Document 1) With Council approval, and should the City of Ottawa be awarded the Games, $220,000 would be allocated to the CGC from the 2017 Provision for Unforseen and One Time Expenditures budget.

2021 Canada Summer Games Budget

To deliver the 2021 Canada Summer Games, a combined operating and capital budget of approximately $43 million is proposed. This would see the Government of Canada, the Province of Ontario, the City of Ottawa and the Host Society (through sponsorship and revenue generation activities, such as ticket sales) each contribute $10.35 million, $10.35 million, $10.5 million and $12 million, respectively. (Table 2) If the City of Ottawa’s bid is successful, the City would enter into a multi-party funding agreement with the Province of Ontario, Government of Canada, Canada Games Council and the Host Society, outlining the funding responsibilities of all levels of government to ensure accountability and appropriate procurement. Each funding partner then has bilateral agreements with the Host Society.

Table 2 - Proposed Capital and Operating Budget for the City of Ottawa 2021 Canada Summer Games

Revenue Amount

Capital Municipal $8 million

Provincial $3 million

Federal $3 million

Host Society $0.028 million

Operating Municipal $2.5 million ($2,000,000 in value-in-kind operating support and $500,000 for transfer of knowledge and start-up costs)

Provincial $7.35 million

Federal $7.35 million

Host Society $11.9 million

Total $43.128 million

Bid Transition and Operating Support

Once the host municipality has been selected, the transition from a bid committee to a federally incorporated Host Society begins. To facilitate this transition and to ensure that the Host Society has the financial capacity to operate as soon as possible, it is recommended that Council allocate $280,000 from the 2017 Provision for Unforseen and One Time Expenditures budget. This would allow for the steps necessary to achieve this critical step upon award of the Games until further public resources are made available by the Governments of Canada and Ontario. These funds would be used to cover initial start-up costs, such as hiring the Host Society CEO and senior managers as well as operating costs of the Host Society Board of Directors.

The minimum operating budget for the 2021 Canada Summer Games is based upon and subject to the public financial planning assumptions provided by the CGC at the February 2016 launch of the bid process: the provincial and federal governments are each required to contribute $7.35 million to the Host Society, the municipal government

14 is required to identify value-in-kind operating support to the Host Society, and the Host Society is required to generate a minimum of $8 million for operations.

Building on the CGC public financial planning assumptions, the proposed operating budget for the City of Ottawa 2021 Canada Summer Games is $29.1 million. (Table 5)

Table 5 – Proposed Operating Budget for the City of Ottawa 2021 Canada Summer Games

Revenue Amount

Operating Municipal $2.5 million ($2,000,000 in value-in-kind operating support and $500,000 for transfer of knowledge and start-up costs)

Provincial $7.35 million

Federal $7.35 million

Generated by Host Society $11.9 million

Total $29.1 million

The proposed operating support to the Host Society would be primarily in the form of human resources support for the recruitment and hiring of Host Society staff, information technology equipment and support, office space and storage accommodations, and transportation management support during the Games. These in- kind services would be provided upon incorporation of the Host Society and until its dissolution. If awarded the Games, the specific services would be negotiated in a service level agreement between the City of Ottawa and the Host Society. This amount of value-in-kind support is consistent and modeled after services provided by host municipalities during previous Canada Games. Value-in-kind support to a Host Society enables it to leverage municipal resources and infrastructure while allowing its operating cash to be directed to delivering other aspects of the Games.

Capital Investments

Similar to the operating budget, the minimum capital budget for the 2021 Canada Summer Games is based upon and subject to the public financial planning assumptions

15 provided by the CGC: the municipal, provincial and federal governments are each required to contribute $3 million in cash to the Host Society. As such, all communities bidding for the 2021 Canada Summer Games are required to have a minimum capital budget of $9 million.

Building on the CGC public financial planning assumptions, and further to assessments of Ottawa-area facilities that were conducted as part of the first phase of the bid process, the proposed capital budget for the City of Ottawa 2021 Canada Summer Games is $13.9 million. (Table 3)

Table 3 – Proposed Capital Budget for the City of Ottawa 2021 Canada Summer Games

Revenue Amount

Capital Municipal $8 million

Provincial $3 million

Federal $3 million

Host Society $0.028 million

Total $14.028 million

Ottawa’s bid proposal includes only existing recreation facilities, thus the municipal capital budget contribution would be allocated towards field of play improvements at City-owned recreation facilities identified as 2021 Games venues and listed in Table 4. While the City of Ottawa’s contribution to the capital funding envelope would be allocated to City-owned facilities, the remaining $6.028 million of the capital budget would be allocated to privately run facilities throughout the city. All field of play improvements proposed for both publicly and privately owned facilities would ensure that venues meet the standards of the CGC.

Table 4 – Sport Venues in Ottawa’s 2021 Canada Summer Games Bid Proposal

Sport Competition Venues Training Venues

Names Wards Names Wards

Athletics Terry Fox Athletic 16 - River Terry Fox Athletic 16 - River

Sport Competition Venues Training Venues

Names Wards Names Wards

Facility Facility

Baseball - Male RCGT Park; 13 – Brewar Park 17 - Capital Kanata Rideau- Recreation Rockcliffe; Complex 23 – Kanata (Kinsmen Fields) South

Basketball TD Place Arena; 17 – Capital; Carleton University 17 - Capital Carleton 12 – (Norm Fenn), University Rideau- University of (Raven’s Nest); Vanier Ottawa (Lees University of Campus) Ottawa (Montpetit)

Canoe/Kayak Rideau Canoe 16 - River Rideau Canoe Club 16 - River Club

Cycling - MTB Camp Fortune NA Camp Fortune NA

Cycling - Road Sir John A 15 – Sir John A 15 – MacDonald Kitchissippi MacDonald Kitchissippi Parkway Parkway

Diving Nepean 9 – Nepean Sportsplex 9 – Sportsplex Knoxdale- Knoxdale- Merivale Merivale

Golf Ottawa Hunt and 10 – Ottawa Hunt and 10 – Golf Club Gloucester- Golf Club Gloucester- Southgate Southgate

Rowing Rockcliffe Yacht 13 – Rockcliffe Yacht 13 – Club Rideau- Club Rideau-

Sport Competition Venues Training Venues

Names Wards Names Wards

Rockcliffe Rockcliffe

Rugby - Female Terry Fox Athletic 16 - River Terry Fox Athletic 16 - River Facility Facility

Sailing Nepean Sailing 7 – Bay Nepean Sailing 7 – Bay Club Club

Soccer TD Place 17 – Capital; Carleton University 17 - Capital Stadium; 12 – (MNP Park and University of Rideau- Practice Field) Ottawa (Gee Vanier Gees Field and Minto Sportsplex)

Softball - Carlington Park 16 - River Brewer Park 17 - Capital Female

Softball - Male Carlington Park 16 - River Carlington Park 16 - River

Swimming Nepean 9 – Nepean Sportsplex; 9 – Sportsplex; Knoxdale- Nepean Sailing Knoxdale- Nepean Sailing Merivale; 7 Club Merivale; 7 Club – Bay – Bay

Tennis Ottawa Tennis 17 - Capital Ottawa Tennis and 17 - Capital and Lawn Lawn Bowling Club Bowling Club

Triathlon Dow’s Lake 17 - Capital Dow’s Lake 17 - Capital

Volleyball - Lansdowne Park 17 - Capital Lansdowne Park; 17 - Capital Beach Ottawa Tennis and Lawn Bowling Club

Volleyball - TD Place Arena; 17 – Capital; Carleton University 17 – Indoor Carleton 12 – (Norm Fenn), Capital; 12 University Rideau- University of – Rideau-

Sport Competition Venues Training Venues

Names Wards Names Wards

(Raven’s Nest); Vanier Ottawa (Lees Vanier University of Campus) Ottawa (Montpetit)

Wrestling Carleton 17 - Capital Carleton University 17 - Capital University (Ice (Ice House) House)

Should Ottawa be selected as the host community for the 2021 Games, the CGC requires that City Council approve that at a minimum, $3 million in cash be provided directly to the Host Society, with any remaining municipal capital funding also identified, committed and approved. Thus, it is recommended that Council contribute $3 million in cash to the Host Society for improvements at City-owned recreation facilities identified as venues for the 2021 Canada Summer Games and commit to undertaking $5 million in additional capital improvements to City of Ottawa owned recreation facilities identified as venues for the 2021 Canada Summer Games. Document 2 describes the proposed field of play improvements to City of Ottawa facilities employing estimates generated in 2016 and with a contingency of 20 per cent and project management fees of 10 per cent. Estimates listed in Document 2 exclude HST. As per recommendation 3 of this report, it is recommended that the Director, Economic Development, in consultation with the 2021 Canada Summer Games Host Society and only if the City of Ottawa is awarded the Games, 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.

Airport and Hosting Standards

A letter confirming compliance with the CGC Hosting Standards from the Ottawa International Airport Authority will be accompanying the City of Ottawa’s bid proposal. The Ottawa International Airport is among the top-ranking airports in North America, with extensive experience in handling sensitive equipment, dignitaries and security requirements, and thus exceeds all CGC hosting standards.

Sponsorship

In approving the City of Ottawa’s bid submission, Council would confirm that there is an understanding that Bid Communities have the authority and power to grant local community sponsors certain rights and opportunities, pertaining to the Community bid only. It is also required that Council confirm an understanding that Bid Communities and eventual Host Societies must acknowledge the need to work within a team approach and abide by the guiding sponsorship principles referenced in the 2021 Canada Summer Games Bid Procedures and Hosting Standards. (Document 1) The sponsorship team principles and approach create additional sponsorship solicitation capacity to raise the appropriate outstanding revenue required, and to minimize the risk associated with the municipality under righting the deficit.

Legacy

The CGC requires that City Council agree that the words “Canada Games” and “Jeux du Canada” and the Canada Games logo in accordance with the CGC’s Graphics Standards Manual, are incorporated in the name of at least one major facility that is built or renovated for the Games, and that the naming rights remain in perpetuity. It is recommended that Council delegate the authority to the General Manager of the Recreation, Cultural and Facility Services Department to incorporate these legacy responsibilities in the re-naming of one City facility that is renovated for the Games in conformance with Canada Games Hosting Standards and subject to concurrence by the Ward Councillor.

Agreement to Undertake

Upon award of the Games, the successful host municipality is required to sign an Agreement to Undertake, which reflects the commitments that are described in this report, as well as other key commitments, terms and conditions through the bid phase.

Joinder Agreement

The CGC requires that Council confirm that the City will ensure that the Host Society, upon Incorporation, will enter into a Joinder Agreement with the Canada Games Council which binds the Host Society to the Agreement to Undertake, and to the signing of the Trademarks Agreement and Hosting Agreement with the CGC.

Compliance of Facilities with Hosting Standards

It is recommended that Council confirm that the City, in cooperation with its Bid Committee, for both City-owned/operated and private facilities, will submit agreements at the Bid level that comply with Hosting Standard #40-M-01. Memoranda of Understanding will be finalized with all venue operators, which are based on a template that conforms to the CGC hosting standards, and will accompany the final bid proposal. (Document 3)

Recommendation 2 – Authorize the City Treasurer to work with the Ottawa 2021 Bid Committee on the preparation of the City’s financial management plan

Further to Council approval, the City Treasure would work with the Ottawa 2021 Bid Committee on the preparation of the City’s financial management plan in support of the Games.

Recommendation 3 – Direct the Director, Economic Development, to develop a 2018-2021 capital improvement plan and have this plan referred to the 2018 Budget process for consideration

Should the City of Ottawa be awarded the Games, the local Host Society will be using the latter half of 2017 to convert the bid proposal into a comprehensive business plan. Thus, it is recommended that the Director, Economic Development, in consultation with the 2021 Canada Summer Games Host Society and only if the City of Ottawa is awarded the Games, develop a 2018-2021 capital improvement plan outlining the City’s capital funding responsibilities for City owned facilities in advance of the 2018 Budget process for Committee and Council consideration. It is recommended that Council contribute $3 million in cash to the Host Society for improvements at City-owned recreation facilities identified as venues for the 2021 Canada Summer Games and commit to undertaking $5 million in additional capital improvements to City of Ottawa owned recreation facilities identified as venues for the 2021 Canada Summer Games. These improvements would take place from 2018 to 2021.

Hosting the Games is an opportunity to impart significant, broad benefits to the city as a whole. To achieve these broader benefits, advancing the schedule for undertaking of some of the capital improvements and additional pressures to fund accessibility and aesthetics improvements beyond the specific capital improvements identified for Games standards will impact existing prioritized programming forecasts. Based on current forecasted budget envelops, staff estimate that approximately $900,000 of the improvements would likley fit within prioritized programming. While the Games oriented works have been the focus of the bid, there are accessibility and aetshetic lifecycle

21 improvements at the facilities in the order of $1.5 million to $2.5 million that may be requested and add to the investment requirements.

Conclusion

The Canada Summer Games are the largest multi-sport event in the country for young athletes, and provide significant and positive socio-economic impacts and legacies for their host communities. City Council’s approval of the report recommendations is critical in demonstrating the City of Ottawa’s readiness and capacity to host the 2021 Canada Summer Games. The City’s financial and in-kind commitments required to host the 2021 Games, which will have an overall value of $10.5 million, would be invested in upgrading recreational facilities for all community users and growing sport development opportunities for local athletes, thereby strengthening Ottawa as a premiere destination for major sporting events.

RURAL IMPLICATIONS

There are no rural implications.

CONSULTATION

Through the work of the Bid Committee, the following groups have been consulted on the City of Ottawa’s 2021 Canada Summer Games Bid:

 National sports chairs, representing the sports of the Canada Summer Games

 All City and private venue operators for both sport and non-sport facilities, including the Shaw Centre, Carleton University and the University of Ottawa

 The Ottawa Council of BIAs, representing the 18 local business improvement areas in Ottawa

 City traffic and transit, as well as infrastructure services staff

 Wabano Centre

 Invest Ottawa

 Ottawa Network for Education

To date, more than 100 key stakeholders have been engaged in consultation activities.

LEGAL IMPLICATIONS

There are no legal impediments to approving the recommendations in this report.

RISK MANAGEMENT IMPLICATIONS

There are no risk management implications.

ASSET MANAGEMENT IMPLICATIONS

The recommendations documented in this report are consistent with the City’s Comprehensive Asset Management (CAM) Program (City of Ottawa Comprehensive Asset Management Program) objectives. Identification of renewal and upgrades necessary to support the games prior to finalizing the bid process provides an indication of the level of service expectation and what needs to be done to achieve an event that has the potential to impart significant, broad benefits to the city as a whole.

Advancing the schedule for undertaking some of the capital improvements and additional pressures to fund accessibility and aesthetics improvements beyond the specific capital improvements identified for Games standards will impact existing prioritized programming forecasts. Early recognition of these implications and development of a multiyear capital improvement plan will allow for a thorough review of funding options and documenting lifecycle program implications for the $7 to $9 million of improvements currently not within prioritized programming.

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. Funds have been requested through the 2017 Operating Budget, Provision for One-Time and Unforeseen.

 $8,000,000 for capital improvements to City-owned facilities. Funding will be identified through the 2018-2021 capital improvement plan, in advance of the 2018 Budget.

 $2,000,000 of operating value-in-kind support to the Host Society. Support will be provided from within existing resources.

Funding for the remaining $32.628 million is through the Federal and Provincial governments and the Host Society. The City would enter into a multi-party funding agreement with the Province of Ontario, Government of Canada, Canada Games Council and the Host Society, outlining the funding responsibilities of all levels of government to ensure accountability and appropriate procurement. Each funding partner then has bilateral agreements with the Host Society.

ACCESSIBILITY IMPACTS

There are no accessibility implications.

TERM OF COUNCIL PRIORITIES

The recommendations in this report support the following strategic priority of City Council:

Economic Prosperity (EP) – Use Ottawa’s unique combination of recreational, social, cultural and business assets, and natural environment and physical infrastructure to attract enterprises, visitors and new residents, while at the same time developing and retaining local firms and talent.

SUPPORTING DOCUMENTATION

Document 1 – Canada Games Council 2021 Bid Procedures and Hosting Standards

Document 2 – Proposed field of play upgrades to City of Ottawa facilities

Document 3 – Template: Memorandum of Understanding Regarding Venue Use

DISPOSITION

Upon approval, the City Treasurer will assist the Ottawa 2021 Bid Committee on the preparation of the City’s financial management plan, as described in this report. If the City of Ottawa is selected to be the host city of the 2021 Canada Summer Games, the Director, Economic Development, in consultation with the 2021 Canada Summer Games Host Society will 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.