Event Centre / Arena Complex Business Case Analysis
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EVENT CENTRE / ARENA COMPLEX BUSINESS CASE ANALYSIS JANUARY 2019 CONTENTS Executive Summary ................................................................................. iii Spruce Grove as an Event Hosting Destination ................ 29 8 Economic Impact Assessment ....................................................... 75 Core Assessment ................................................................................. iii Market Opportunities for Event Centres ............................... 29 Overview ............................................................................... 75 Policy Framework ................................................................................ iii Factors Impacting Events Market Growth Potential ........ 29 Range of Measures ................................................................ 75 Range of Uses ...................................................................................... iv Distinguishing Between Core Commercial Events and Net Impact and Geographic Scale ......................................... 76 Capital Costs ........................................................................................ vi Overall Activity and Events at a Multi-Use Sport and Event Centre Accounting for Greater Visitation .................................... 76 ....................................................................................... 30 Economic Impact ................................................................................ vii Definition of Terms ................................................................ 76 Broader Utilization of a Multi-Use Facility ........................ 31 Funding and Implementation ........................................................... viii Broader Site Development ............................................... 77 Comparable Event Days for Event Centres ....................... 3 3 Comparing Options: Benefit Cost Ratio (BCR) .................................. viii Option 1: Twin Pad Arena..................................................... 78 Hotel Development and Market Accessibility .................. 35 Strategic Realities .............................................................................. viii Option 2: 2,500 Seat Arena and Community Ice Pad ............ 79 4 Westwind Drive Site Concept Planning ......................................... 38 Timeline for Implementation ............................................................... x Option 3: 3,500 Seat Event Centre and Community Ice Pad Relevant Context ................................................................... 38 1 Introduction & Background ............................................................ 1 ............................................................................................... 80 Proposed Concepts for Commercial Build-Out of Westwind 9 Capital Costs Summary .................................................................. 83 Project Background ................................................................. 1 Centre ............................................................................................... 38 Project Costs .......................................................................... 83 Aims and Objectives ................................................................ 1 Distinction Between Concepts .......................................... 39 Total Project Costs ................................................................. 84 History of Arena Development in Spruce Grove ..................... 1 Parking and Traffic Impact Assessment ................................. 42 Park and Ride Facility Costs and Land Requirements ........... 84 Report Focus and Scope of Work ............................................ 2 Parking Demand Assessment............................................ 42 10 Funding Assessment ...................................................................... 88 Limitations of Analysis ............................................................ 2 Transportation Planning ................................................... 42 Work To-Date ........................................................................ 88 Outline of Reporting and Associated Presentation ................ 3 Traffic Impact Assessment ................................................ 43 Off-Site Levy for Recreation: Considerations ....................... 88 2 Core Assessment ............................................................................. 6 Land Area Required for Arena Complex ................................ 43 Resulting Funding Opportunities and Risks ........................... 89 Distinguishing Between Options ............................................. 6 Comparison of Functional Space Program ............................ 43 11 Risks, Implementation & Next Steps ............................................. 93 Core Differences between an Arena and a Multi-Use 5 Option 1: Twin-Pad Arena ............................................................ 48 Community Sport and Event Centre (MUSEC) .................................... 8 Risks Analysis ......................................................................... 93 Functional Program and Design ............................................. 48 Facility / Building Features ................................................. 8 Process for Delivering the Facility ......................................... 94 Regional and National Examples of Twin Pads ...................... 52 Range of Uses and Events ................................................ 15 The Traditional Public Procurement Approach ................ 94 Capital Costs .......................................................................... 56 Hybrid Facilities to Meet Community Needs ........................ 22 Public-Private Partnership Options .................................. 95 Operating Performance ......................................................... 56 3 Community Needs & Economic Development Opportunity ......... 25 Efficient Implementation Process ......................................... 96 6 Option 2: 2,500 Seat Arena and Community Ice Pad ................... 58 Market and Trade Area Profile ............................................. 25 Potential Timeline for Implementation and Next Steps ....... 96 Functional Program and Design ............................................. 58 Market and Trade Area Definitions .................................. 25 Capital Costs .......................................................................... 64 Market and Trade Area Population ................................. 25 Operating Performance ......................................................... 64 Appendix 1: Events Review for Arenas: 2,000 to 2,999 Fixed Seats Future Community Needs and Strategic Directions ............. 28 7 Option 3: 3,500 Seat Event Centre and Community Ice Pad ......... 66 Appendix 2: Proposed Westwind Concept Plans and Associated Tax Broad Community Recreation Needs ............................... 28 Increment Calculations Functional Program and Design ............................................. 66 Ice-Specific Needs ............................................................ 29 Capital Costs .......................................................................... 72 Appendix 3: Traffic Impact Assessment Memorandum Other Community Needs ................................................. 29 Operating Performance ......................................................... 73 Appendix 4: Capital Cost Details CITY OF SPRUCE GROVE EVENT CENTRE/ARENA COMPLEX BUSINESS CASE ANALYSIS | JANUARY 2019 | i Policy Framework EXECUTIVE SUMMARY Land Use greenfield lands remains a central plank of the City’s growth Core Assessment Westwind Centre is a 58-acre development in the City’s north end at management framework. the junction of the Yellowhead Highway (Highway 16) and Century This report addresses the comparative costs and benefits of 3 options Road. The development site is envisioned to include hotels, The development of a destination gateway at this highly strategic for development: restaurants, residential development and a broad range of individual location was also central to the achievement of the highest and best commercial retail units. use of these lands – commercial development which includes Option 1: Twin-Pad Arena destination uses as well as investment in hotels, meeting and event The Westwind Centre is part of a larger development initiative that venues that contribute to the economic growth and diversification of A twin pad arena facility with limited seating for each rink (500 seats includes Spruce Grove Village Area Structure Plan (ASP) and Pioneer the City. each, subject to final design), necessary dressing rooms including all Lands ASP. The Westwind Centre falls within the Pioneer Lands ASP. requirements for gender specific change rooms, accessibility, and other This is a central metric of any comparison of the 3 options described specifications; additional break-out rooms and concession The development of the proposed arena complex is intrinsically tied to above – which contributes most to the long-term planning goals which opportunities consistent with a community-focused facility. the long-range planning for this area: The original land assembly that successive Councils have supported, and which is now the long-term was stewarded by the City at its expense, subsequent development planning vision for the City. Option 2: 2,500 Seat Arena and Community