Kinsmen Sports Centre Master Plan Business Case October 2014

CR_1507 Attachment 3

Kinsmen Sports Centre Master Plan Business Case

October 2014

Community and Recreation Facilities Business Case Owner: Rob Smyth Community Services Department 11th Floor, CN Tower Prepared by: Brad Badger 10004 – 104 Ave Edmonton, AB T5J 2R7

Business Case TABLE OF CONTENTS

1. EXECUTIVE SUMMARY 1

2. BACKGROUND 2

PROBLEM / OPPORTUNITY 2 CURRENT STATE 3

3. INITIATIVE DESCRIPTION 4

INITIATIVE DESCRIPTION 4 ANTICIPATED OUTCOMES 4 SCOPE 4 COSTS 5 OUT OF SCOPE 6 CRITICAL SUCCESS FACTORS 6

4. STRATEGIC ALIGNMENT 6

IMPLICATIONS FOR THE KINSMEN SPORTS CENTRE 7

5. CONTEXT ANALYSIS 8

6. ALTERNATIVES 10

7. ORGANIZATIONAL CHANGE IMPACT 11

STAKEHOLDER IMPACT 11 BUSINESS AND OPERATIONAL IMPACT 11

Business Case

8. COST BENEFITS 12

TANGIBLE BENEFITS 14 INTANGIBLE BENEFITS 16 ASSUMPTIONS 17

9. RESOURCING 17

10. KEY RISK(S) AND MITIGATING STRATEGY 18

11. CONCLUSION AND RECOMMENDATIONS 19

CONCLUSION: 19 RECOMMENDATIONS: 19 PROJECT RESPONSIBILITY AND ACCOUNTABILITY 21

12. IMPLEMENTATION APPROACH 21

13. REVIEW AND APPROVAL PROCESS 21

14. APPENDICES 22

Business Case

1. Executive Summary

Kinsmen Sports Centre Master Plan The Kinsmen Sports Centre is a unique asset in the City of Edmonton, located in the beautiful natural setting of the North Saskatchewan River Valley. Built in 1968 with aquatic and core components added in 1975 to host the Commonwealth Games, and featuring amenities designed to support a variety of high- performance athletics, the facility focuses predominantly on sport and fitness training, athletic competitions and events. The Kinsmen Sports Centre recommended mandate is to meet the needs of high performance sports groups and serious individual fitness enthusiasts. The Centre enhances opportunities for athletes by focusing its policies and procedures on meeting this mandate. Most of the annual user visits are by sport user groups or fitness enthusiasts. Many of the users are former athletes attracted to Kinsmen Sports Centre because of their elite abilities, competitive spirit, and their ties to its unique history. The Kinsmen Sport Centre was the first facility of its type in Canada, and the first municipally operated field house in North America. Pursuant to the Recreation Facility Master Plan and the Five-Year Review/Update, the Kinsmen Master Plan is intended to develop a long-term vision for the development of the Kinsmen Sports Centre over the next 10 years. It is based on extensive internal and public consultations, and takes into account current best practices, sport and recreation facility design trends and financial analysis. The Plan identifies the City’s recreation and sport priorities for the Centre through research, needs assessments, public involvement processes and infrastructure analysis. Finally, it recommends a phasing and implementation strategy based on needs and financial implications. The development of the Kinsmen Sports Centre aligns with goals one, two, five and six of the Way We Live. The Way We Live Implementation plan also highlights the need to upgrade Edmonton’s a premiere attraction among which is Kinsmen Sports Centre.

Along with the Kinsmen Sports Centre Master Plan, a further Implementation Strategy will be developed to compliment the capital upgrades and structural changes which work to re-define and enhance the vision of Kinsmen Sports Centre as a unique, world-class competitive venue designed for training of high performance athletes, sport groups and fitness enthusiasts, hosting local and international competitive events and sport development opportunities.

Kinsmen Sport Centre Master Plan 1 Business Case

2. Background

The Kinsmen Sports Centre considered to be one of Edmonton’s premier sport and recreation facilities, has a unique history. The facility is located in the North Saskatchewan River Valley on land leased at the time (in 1953) by the City of Edmonton to the Kinsmen Club of Edmonton. Over the years the club built an extensive complex of outdoor sport and recreation amenities including playing fields, a children’s playground and a Pitch and Putt golf course. The Kinsmen Field House opened in 1968 to support both sport training and entertainment events. It was the first facility of its type in Canada and the first municipally operated field house in North America. The aquatic centre, officially opened in 1977, was designed to host the aquatic events of the 1978 Commonwealth Games. Over the past 30 years the Kinsmen Sports Centre has experienced some small to medium scope project upgrades, based on a number of operational reviews and marketing/promotion strategies. However, as leisure trends and competition requirements have changed, the facility has fallen behind the current standards for sport and recreation facility design and functionality. Although it remains a busy centre and an active competition venue, a capital strategy is needed to put the Centre at par with top notch, North American sports and training facilities, and equip it for the future. The vision for the facility is to become a well utilized, modern centre, meeting the needs of the city and its people, as well as attracting athletes, and sports enthusiasts from all over the world as it restores its reputation of being a world class sports destination for training, events, and competitions. The need to develop the Kinsmen Sports Centre Master Plan was identified in the Recreation Facility Master Plan (2005-2015). It was further reinforced in the Way We Live Plan as a planned initiative to upgrade Edmonton’s premiere attractions. In addition, sport policy in recent decades has increasingly encouraged participation in sport and recreation. All orders of government recognize the importance of physical activity to the health and well-being of citizens. Further, there has been a growing emphasis on higher-performance achievement, beginning with children at a young age and extending throughout life. The federal Canadian Sport Policy sets out a vision of “a dynamic and leading-edge sport environment that enables all Canadians to experience and enjoy involvement in sport to the extent of their abilities and interests and, for increasing numbers, to perform consistently and successfully at the highest competitive levels.” The Kinsmen Sports Centre also plays a pivotal role in Edmonton’s future event bidding and hosting strategies. Having a high-performance aquatic training facility that is up to the standards required to meet the demands of national and international events is a significant opportunity to increase City of Edmonton’s exposure on the National and International stage.

Problem / Opportunity Recent demographic studies have shown strong and growing participation in a wide variety of sports, including many offered at the Kinsmen Sports Centre. The design of sport and recreation facilities has evolved in recent decades to support the latest trends in sporting pursuits. This includes advanced training methods and the hosting of competitions. Standards established by sport authorities such as FINA, the international swimming governing body, are continually being updated and recreation facilities need to adapt to such standards in order for them to stay current.

With a series of timely physical interventions to modernize the facility, add capacity and bring it to current standards, the Kinsmen Sports Centre would re-establish itself as a state-of-the-art sport training and competitive venue for the City. The interventions are described as ‘zones’ in and around the building that can be realized incrementally (phased) with minimal interruption to services.

Kinsmen Sport Centre Master Plan 2 Business Case Current State The Kinsmen Sports Centre is a comprehensive sport and recreation facility offering a wide range of amenities. It has three primary areas: the aquatic centre, the field house and the central core containing support services and administrative offices, as well as further fitness and sport amenities.

Since 2011 – two new multi-purpose Community Recreation Centres have been opened – Terwillegar Community Recreation Centre, and Commonwealth Community Recreation Centre. Kinsmen experienced a drop in attendance when Terwillegar Community Recreation Centre opened in 2011 and other fitness providers entered the market. Since 2012, Kinsmen Sports Centre has instituted a number of operational strategies that align with the recommended mandate of this plan. These strategies were aimed at improving performance in terms of enhancing revenue, increasing attendance and attracting more users and events to the facility. With the maximization of operational and programming strategies, attendance and revenue increased in 2012 and 2013 and are anticipated to continue to slightly increase in 2014. However, operational efficiencies will reach their full potential at this point, and for the Kinsmen Sports Centre to continue to experience further growth in attendance and revenue in subsequent years, major capital investment is required. 2010 2011 2012 2013 2014 Revenue Admission and Memberships $1,390,534 $1,141,781 $1,751,520 $2,571,305 $2,777,009 Programs $194,684 $165,180 $276,842 $368,264 $379,312 Rentals $1,033,612 $1,071,082 $1,184,025 $1,154,682 $1,200,869 Other $72,813 $66,743 $52,747 $52,323 $53,893 Total Revenue $2,691,644 $2,444,786 $3,265,134 $4,146,574 $4,411,083

Expenses Operations $2,745,540 $3,116,327 $3,382,219 $3,407,012 $3,475,152 Animation $1,524,098 $1,596,900 $1,630,138 $2,031,896 $1,980,000 Total Expenses $4,269,638 $4,713,227 $5,012,357 $5,438,908 $5,455,152

Cost Recovery 63% 52% 65% 76% 81%

Building Maintenance $1,543,290 $1,554,104 $1,539,756 $1,509,390 $1,539,578

Cost Recovery W/ Blding Mtce 46% 39% 50% 60% 63%

Tax Levy $3,121,284 $3,822,545 $3,286,979 $2,801,724 $2,583,647

Attendance Drop In 83,503 70,260 65,384 57,335 59,628 Membership 397,269 360,877 372,479 369,923 406,915 Programs 59,662 58,709 65,518 48,836 50,301 Rentals 110,483 89,236 130,202 161,222 166,059 Total Attendance 650,917 579,082 633,583 637,316 682,903

Kinsmen Sport Centre Master Plan 3 Business Case 3. Initiative Description

Initiative Description The Kinsmen Sports Centre Master Plan has developed a long-term vision and comprehensive master plan for the development of the Kinsmen Sports Centre over the next 10 years.

Anticipated Outcomes With a series of timely physical interventions to modernize the facility, add capacity and bring it to current standards, the Kinsmen Sports Centre will achieve three main outcomes: 1- Reinstate Facility Mandate: Kinsmen Sports Centre will re-confirm itself as the “Sports Centre”. It will achieve its mandate to support High Performance Sport and Serious Fitness and this Centre will complement the inventory of the Community Recreation and Leisure Centres as a state-of-the-art sport training venue for the City of Edmonton. 2- Continue to be a Major Competition and Event Centre with Economic Impact: Event hosting has been part of Edmonton’s landscape since the 1978 Commonwealth Games. The organization of sport events can be a strong engine for economic development and can be strategically leveraged by staging simultaneous business forums and other activities that show new audiences all the advantages that Edmonton offers. In addition to the economic impact, the bidding process is considered a branding campaign on its own, creating a buzz and increasing awareness about the city. With the modernization and the associated added capacity, Kinsmen Sports Centre will be able to be equipped to compete with world renowned sports facilities in bidding on event organization, leading to a positive economic impact and an enhanced image for the city. 3- Enhanced Financial Performance: Currently, Kinsmen Sports Centre experiences approximately 650,000 annual user visits (compared with over 1,000,000 annual visits to the similar scaled Talisman Centre in Calgary). With capacity increases, that number can grow to projected 1,046,000 annual user visits. Adding these additional user visits annually, the potential increase in revenues will be approximately $1,260,000. This increased revenue along with some increases to expenditures is estimated to have a tax levy savings of about $785,000 per year.

The interventions are described as ‘zones’ in and around the building that can be likely be realized incrementally (phased) allowing the facility to continuously be open (partial) to public users. The Master Plan and Implementation Strategy are based on a solid foundation of information about the needs and preferences of all of the people who use the Kinsmen Sports Centre or who might have an interest in its future.

Scope Seven distinct zones for improvement and enhancement were identified in the Kinsmen Sports Centre. Each zone includes new construction or renovation, or in some cases both. Each of the enhancement zones reflects emerging needs and/or deficiencies that are identified in the consultation process. In most cases, the zones are distinct enough to allow independent phased implementation and strategies for redirecting circulation and reducing disruption to adjacent functions.

Kinsmen Sport Centre Master Plan 4 Business Case Key Benefits Cost* Enhancement Zone Area Zone A – • Efficient grade access • Large-capacity lobby 750 m² Lobby Addition • Improved visitor processing $13.21 Million (8,000 ft.²)

• Modernization of existing change rooms • Additional 7500 sqft of fitness centre Zone B – 1,400 m² $21.59 Million • 6 Multi-purpose spaces, 4 Core Renovation meeting rooms (15,000 ft.²) • Adaptive re-use of old courts • Sauna and stream accessible from pool deck • Storage off pool decks Zone C – • Dryland training for athletes 1,100 m² • Replacement of outdoor $14.38 Million West Gym/Storage Annex (12,000 ft.²) washrooms • New racquet courts Zone D - (replacement of existing) 370 m² South Courts Annex • Regulation size • Convertible for multi-use (4,000 ft.²) $4.10 Million • Upgraded sport flooring Zone F – • Additional court lines for multi- 6,150 m² Field House Upgrades purpose use • Added storage and workshop (66,000 ft.²) $5.35 Million • Tank and building structure replaced with new 10-lane, 52- meter deep tank, ramp and Zone G – partial movable floor • New accessible 25-person hot 2,500 m² Aquatic Centre tub $38.20 Million (27,000 ft.²) • Added capacity during peak times • Meets FINA national requirements Total $96.83 Million

Note: All design costs are in Profile 15-21-2300 in the 2015 - 2018 budget cycle. The profile budget is $9.52 Million

Kinsmen Sport Centre Master Plan 5 Business Case

Costs The total project cost is $106.35 million* * These cost estimates are based on the escalations to design in 2015-2018 and construct in 2019- 2021

Out of Scope The Kinsmen Master Plan recommends an enhanced marketing strategy and further implementation plan similar to those used for other major Multi-Purpose Recreation Centres in the City. Operational changes including changes to programming, booking, servicing, marketing and communications are not included in the Kinsmen Master Plan. Along with the Marketing Strategy, a more detailed Implementation Strategy will be developed with Communications and internal experts upon approval of the Kinsmen Sports Centre Master Plan by City Council.

Critical Success Factors The Kinsmen Sports Centre Master Plan requires continued support and capital investment funding for physical changes to the building. Operational and branding changes will also be critical in enhancing and revitalizing the Kinsmen Sports Centre as a world-class facility for athletic achievement, high performance training, competition and event organization in order for the Centre to meet its overall mandate.

4. Strategic Alignment

The Kinsmen Master Plan furthers the aims of The Way Ahead: City of Edmonton’s Strategic Plan, whose goal is to improve livability in the City of Edmonton.

The Way We Live The Way We Live is one of the City of Edmonton’s foundation policy documents, defining the civic government’s role and purpose for its citizens. Local government is recognized as “a caring entity that creates a diverse and inclusive city by connecting people, creating communities where people can age in place and actively nurturing an arts, culture and athletic community.” The Way We Live sets out 6 overall goals to be accomplished within the next 6 years (by July, 2020). All of these relate in some way to the Kinsmen Sports Centre and other sport, recreation and cultural facilities, however, four of the goals have the most direct relevance. Goal One: Edmonton is a vibrant, connected, engaged and welcoming city. The city wishes to encourage and facilitate connections among people by creating welcoming public places, both indoor and outdoor, and by establishing public services to enable their use. The Kinsmen Sports Centre is such a place. It has served as a meeting place for people and a venue for important events since its construction, and The Way We Live gives broad support for the continuance of this function. Goal Two: “Edmonton Celebrates Life!” This goal applies most directly to the Kinsmen Sports Centre: “Edmontonians love to play! On the sports field or the stage, the ice rink or the swimming pool, the dance floor or the games table, the residents of this city have a healthy appreciation for physical movement and fun. They welcome the opportunity to celebrate and make opportunities to host celebrations. Edmontonians are proud of their internationally renowned facilities and keep them full with local, national and international events that draw the applause of a global audience. “ This statement of policy at the highest level speaks directly to the capabilities, quality and history of the Kinsmen Sports Centre.

Kinsmen Sport Centre Master Plan 6 Business Case

Also, as part of the long term, planned, unfunded initiatives aspired to be completed in the Way We Live Implementation plan is the implementation of the Recreation Facility Master Plan (2005-2015) entailing developing and building of recreation, leisure and cultural facilities. Goal Five: Edmonton is an attractive city. The river valley is recognized as an invaluable asset to the city, to be preserved and maintained for the enjoyment of all citizens. Further, the goal calls for excellence in design. The implications for the Kinsmen Sports Centre are clear: it must be integrated sensitively into the river valley environment and well-connected to pathways and other park features. Any developments to the building itself must be of excellent architectural quality. One of the Way We Live Implementation plan long term, planned and unfunded initiatives is to upgrade Edmonton’s premiere attractions among which is Kinsmen Sports Centre. Goal Six: Edmonton is a sustainable city. Similarly, any development of the building or site must be designed and built according to sustainable principles.

Implications for the Kinsmen Sports Centre The Way We Live is an important policy document for the City of Edmonton, establishing broad goals of quality of life and city character. It establishes the overall policy goals by which the mandate and direction of the Kinsmen Sports Centre are to be guided: as a gathering place for people, a centre for healthy sport activities, a venue for competitions and an asset to the special river valley environment.

The Council Approved The Way We Live Implementation Plan identifies the Kinsmen Sports Centre capital upgrade under Goal 5, 2012 – 2021 Initiatives – “Upgrade Edmonton’s premiere attractions – Improve and enhance the Muttart Conservatory, the Kinsmen Sports Centre and Commonwealth Stadium as part of the Recreation Facilities Master Plan”.

The Way We Prosper In addition, the proposed capital upgrades to the Kinsmen Sports Centre furthers advances The Way We Prosper Plan which aims to position Edmonton as a recognized economic powerhouse, maximizing the diversity of its economic advantages. Capital Development at the Kinsmen Sports Centre will bring the facility up to the standards required to meet the demands of national and international aquatic events, allowing the advancement of the following goals.

Goal One: Edmonton- A confident and progressive global image. Edmonton is positioned nationally and internationally as an industrious, entrepreneurial city. Edmonton has unbridled energy and spirit backed by a business community and a corporate culture that make it a destination of choice for people to invest, conduct business, live and work.

Goal Five: Edmonton- A vibrant, livable city. Edmonton is the most vibrant, livable city in Canada and boasts a quality-of-place experience that is recognized nationally and internationally. Edmonton offers a diverse, exciting environment for everyone. A dynamic urban core with world-class entertainment, cultural and recreational opportunities attracts residents and visitors. Well-designed neighbourhoods provide excellent environments for living, working and playing. Residents, visitors and businesses can take advantage of transportation linkages that make it easy and efficient to move people and goods around the city. Edmonton is committed to integrating social, cultural, environmental and economic sustainability.

Kinsmen Sport Centre Master Plan 7 Business Case Recreation Facility Master Plan 2005 – 2015 Adopted by Edmonton City Council on August 31, 2004, the Recreation Facility Master Plan (RFMP) is the primary planning document governing the “development, redevelopment and delivery” of all types of recreation facilities throughout the city. It sets out a comprehensive strategy for the planning and realization of these facilities as the city grows. The Master Plan has four primary components: 1. The Planning Context summarizes the City’s projected growth and socio-demographic characteristics, leisure service and recreation facility trends: 2. The city is growing and becoming more diverse. 3. At the same time, studies indicate that there has been some loss of the sense of community. 4. There is a well-established and growing appreciation of the importance of sport and recreation to health and well-being. The Facility Service Continuum approach to city-wide facility planning provides a continuum of facility sizes and types that are necessary to provide the wide variety of sport and recreation opportunities appropriate for city residents. A set of high-level principles is applied to determine the exact locations and component mixes of facilities throughout the city.

The Recreation Facility Continuum includes four categories of facilities. Within this continuum, the Kinsmen Sports Centre falls clearly into the “Citywide Facilities” category:

• serving over 600,000 people, • highly specialized and designed for competitive events, and • offering a large spectator capacity.

Ten principles are established to guide the development of particular facilities over the course of the planning time frame. Five of these relate directly to the Kinsmen Sports Centre:

• Specialty Facilities: “Citywide and specialty facilities should be programmed for the designated use in prime time” • Range of opportunity: Facilities will have components to foster synergies of skill and interest development across the city; • Flexible Design: Venues should support a wide range of activities, and allow future adaptation; • Focused Funding: Municipal funding will be used to provide basic services equally available to all. • Shared Development: Provision of services beyond basic design standards will be financed through funding partnerships. This may have different implications for the Kinsmen Sports Centre as a unique facility.

5. Context Analysis

Policy Context Sport policy in recent decades has increasingly encouraged participation in sport and recreation. All orders of government recognize the importance of physical activity to the health and well-being of citizens. Further, there has been a growing emphasis on higher-performance achievement, beginning with children at a young age and extending throughout life. The federal Canadian Sport Policy sets out a vision of “a dynamic and leading-edge sport environment that enables all Canadians to experience and enjoy involvement in sport to the extent of their abilities and interests and, for increasing numbers, to perform consistently and successfully at the highest competitive levels.” Similarly, the Alberta government and the City of Edmonton have policies to support and encourage sport participation.

Kinsmen Sport Centre Master Plan 8 Business Case Relevant policies of The City of Edmonton include the Recreation Facility Master Plan and the Five-Year Review/Update. Under these documents the Kinsmen Sports Centre is a city-wide facility with unique features that make it suitable for sport development programs, serious training and use as a competition venue. In addition, the long term events strategy is the implementation plan for The Way We Live objective: “The City of Edmonton hosts world class arts, cultural, sports and entertainment events at venues that attract a local, regional and global audience.” Major events help raise the bar for artistic expression and athletic achievement in Edmonton. They imbue the city with new inspiration, expose it to new audiences, and often enhance our facilities and help Edmontonians see the city in a new light, as part of the world community. The vision for the future set out in The Way We Live includes: “Edmontonians are proud of their internationally renowned facilities and keep them full with local, national and international events that draw the applause of a global audience.”

Trend Analysis Recent demographic studies have shown strong and growing participation in a wide variety of sports, including many offered at the Kinsmen Sports Centre. The design of sport and recreation facilities has evolved in recent decades to support the latest trends in sporting pursuits. This includes advanced training methods and the hosting of competitions. Standards established by sport authorities such as FINA, the international swimming governing body, are continually being updated and facilities need to adapt to stay current.

Event Context For Edmonton to bid on, and host, high-profile aquatic events, Kinsmen Sports requires upgrades to meet the standards required to meet the demands of national and international events. Having a facility that meets these bidding / hosting standards will play a pivotal role increasing City of Edmonton exposure on the National and International stage. Major events help raise the bar for athletic achievement in Edmonton, and leverage our volunteer base, hotels and transit infrastructure to highlight Edmonton and continue to build our reputation globally. Although the Kinsmen Sports Centre currently meets base standards, the opportunity cost associated with not hosting aquatic events as a result of falling behind on future standards and trends will be huge. The events Edmonton bids for must help the city achieve the goals in The Way Ahead by moving the city to a new position on the world stage, and strengthening its image and reputation, helping the city develop into an even more exciting place to live and expanding the city’s exposure to economic development opportunities. Below is a high level overview of the potential economic impact Edmonton would experience when the Kinsmen Sports Centre’s aquatic centre undergoes serious physical interventions and modernization, enabling it to compete with other world class aquatic facilities. • Fédération Internationale de Natation/ International Summing Federation (FINA) World Aquatics Championships: 50,000 room nights = $14,800,000 estimated visitor expenditure ($136.8 M in Economic Impact per Montreal ’05) • FINA World Swimming Championships:2400 room nights = $710,400 estimated visitor expenditure • FINA World Junior Swimming Championships: 2400 room nights = $710,400 estimated visitor expenditure • FINA World Masters Championships: 70,000 room nights = 20,720,000 estimated visitor expenditure • National Age Group Championships: 8960 room nights = $2,652,160 estimated visitor expenditure It is anticipated that with capital upgrades, the types of events that the Kinsmen Sports Centre will be able to host will see similar economic impacts.

Kinsmen Sport Centre Master Plan 9 Business Case 6. Alternatives Seven distinct zones for improvement and enhancements were identified in the Kinsmen Sports Centre that include new construction or renovation, or in some cases both.

This business case presents the full capital improvements required to re-define the facility’s mandate, enhance revenues, attendance and reinstate the Kinsmen Sports Centre as a state of the art competitive venue qualified to host major events.

Full Capital improvements include: . Zone A – Lobby addition $13.21 Million . Zone B – Core Renovation $21.59 Million . Zone C – West Annex $14.38 Million . Zone D – South Courts Annex $4.10 Million . Zone F – Field House Upgrades $5.35 Million . Zone G – Aquatic Centre Upgrade $38.20 Million Estimated cost- $96.83 Million

• These cost estimates are based on the escalations to construct in 2019-2021 • In addition to the $96.83 Million needed for the full capital improvement, $9.52 Million is allocated for the cost of the overall design in 2015-2018 • Renovation of the parking lot serving both the Kinsmen Sports Centre and the Kinsmen Park is a separate project estimated at $1.845 Million in 2015-2018

It is estimated to increase attendance by over 400,000 people per year.

As an alternative to the full capital investment, two specific zone bundling upgrades are presented.

• The Aquatic Centre and the Field House : . Zone C – West Annex $14.38 Million . Zone F – Field House Upgrades $5.35 Million . Zone G – Aquatic Centre Upgrade $38.20 Million Estimated cost- $57.93 Million

This option best supports Edmonton’s future event bidding and hosting strategies positioning the Kinsmen Sports Centre as having a high-performance aquatic training facility with the standards required to meet the demands of national and international events at is a significant opportunity to increase City of Edmonton exposure on the National and International stage. Although this upgrade will position the Kinsmen Sports Centre both nationally and internationally, allowing Edmonton the opportunity to bid on and host major aquatic events, this investment will not cover the addition of the needed new space to the lobby area, or give the Kinsmen Sports Centre the aesthetic look which will contribute to higher attendance and increased revenues. The anticipated quantitative outcomes from this option will be less than that achieved from the full capital investment. It is estimated to increase attendance by only 237,000 people per year.

Kinsmen Sport Centre Master Plan 10 Business Case

• The Central Core : . Zone A – Lobby addition $13.21 Million . Zone B – Core Renovation $21.59 Million . Zone D – South Courts Annex $4.10 Million • Estimated cost- $38.90 $Million Similar to the Aquatic Centre and Field House Centre upgrade, the Central Core renovation and enhancement will add more space and an overall wow factor to the facility, leading to increased revenues and higher attendance rates. However, the Kinsmen Sports Centre will fall back on aquatic international standards, depriving Edmonton the opportunity to bid on and organize major international aquatic events. The synergized outcome can only be achieved through the full capital investment of the Kinsmen Sports Centre that ensure updated, top class functionality, more space as well as a new cosmetic look. It is estimated to increase attendance by only 315,000 people per year

7. Organizational Change Impact

Stakeholder Impact In order to understand the needs and preferences of users and the operational requirements of the operators, extensive consultations were carried out as part of the Master Plan development. These included:

• City of Edmonton planning and operations staff, • all known user groups and sport organizations, • individual users, and • members of the general public.

A number of methods were used, including personal interviews, focus group meetings and workshops, public surveys, open houses and a project blog.

The surveys revealed very strong support for the Kinsmen Sports Centre among all users, particularly the dedicated high-performance athletes and serious fitness enthusiasts. The facility is uniquely suited to their needs, including the aquatics centre, the field house and the fitness amenities. Conceptual designs for upgrading and modernization of the building were very well received by open house participants and public survey respondents.

Business and Operational Impact Impacts identified by shareholder groups:

City of Edmonton planning and operations staff – enhanced communications to customers, space managements, building access, storage, new building elements and “City of Champions” history of hosting nations and international events to continue.

User groups and Sport Organizations – the facility is unique to their needs and would like maximum access to the facility, desire for full service sport amenities including cross-training amenities, communications about facility access and special events, international standards required for competition maintained or enhanced and confirmed access to specific parts of the facility during training times.

Kinsmen Sport Centre Master Plan 11 Business Case

Individual Users and General Public – would like continued access to preferred parts of the facility, enhanced main entry for ease of volume of people, larger fitness facility, upgraded aquatic training equipment, international sized racquet facilities, enhanced amenities including a hot tub, family change rooms and storage, field house space definition, architectural quality, interior upgrading, maintenance and vehicular access and parking at the facility.

8. Cost Benefits

When comparing the full capital improvement expected results in 2022 to projected 2022 results with no Master Plan improvements; the full capital improvement is expected to:

Generate revenue increase of $1,250,000* to approximately $6,430,000 mainly in admissions/membership, as well as rental/bookings.

Operating expenditures will increase by about $476,000 to $8,672,000.

Therefore the capital upgrades will generate additional revenue and expenditures, resulting in a tax levy improvement of approximately $ 785,000.

This is noted by an expected 2022 tax levy of $2,242,000*

* Should the project not go forward, it is projected that revenue and attendance will become relatively flat through and beyond 2015, with 2022 tax levy projected at $3,027,000. (The current 2014 tax levy is projected to be approximately $2,600,000.)

The tax levy difference between full capital upgrades ($2,242,000) and no capital upgrades ($3,027,000) is $785,000.This will increase projected cost recovery from 63% in 2014, to 74% in 2022.

*Revenue projections for the first full operational year after the capital upgrade show an increase of approximately 25%. Most of the revenues would come from four main areas:

• Fitness Centre attendance with the increased capacity, • Multi-purpose rooms increase from 2 to 6 for program and rental space, and • Additional lanes in the main aquatic pool which would be rented to groups. • Additional rental amenities.

Branding and operational changes to enhance the Kinsmen Sports Centre and to provide citizens with training and fitness opportunities will also enhance revenues and attendance. Revenues will also be generated from:

• Increased membership and single admission use based on upgraded amenities, • Increased attendance through drop in programs specialized to fitness and sports training, • Increased attendance in registered programs specialized to fitness and sports training, • Child minding, • Club storage and office space rentals, • Drop-in Court rentals, • Field House fitness training space rentals, • Other club training amenities.

Increased revenues will also be realized through hosting of Events and Competitions. “Edmonton Celebrates Life!” is the second goal in The Way We Live Plan. Among the objectives of this goal is giving The City of Edmonton the opportunity to host world leading arts, cultural sports and entertainment events at venues that attract a local, regional and a global audience. The Kinsmen Sports Centre renovation

Kinsmen Sport Centre Master Plan 12 Business Case would be the strategy by which these goals and objectives can be achieved. Also, the Way We Prosper sees organizing events as a driver for economic development. With the Kinsmen Sports Centre upgrades, opportunities to bid and host major aquatic events increases significantly.

For Edmonton to bid on, and host, high-profile aquatic events, Kinsmen Sports requires upgrades to meet the standards required to meet the demands of national and international events. Having a facility that meets these bidding / hosting standards will play a pivotal role increasing City of Edmonton exposure on the National and International stage. Major events help raise the bar for athletic achievement in Edmonton, and leverage our volunteer base, hotels and transit infrastructure to highlight Edmonton and continue to build our reputation globally. With enhanced revenue projections, it is anticipated that the Kinsmen Sports Centre can increase revenue and attendance with the Capital improvements and reach cost recovery rates of 74% or more. This is the projections for the first 3 years after construction

2022 2023 2024 Revenue Admission and Memberships $3,892,183 $3,970,026 $3,970,026 Programs $497,485 $507,434 $507,434 Rentals $1,902,594 $1,940,646 $1,940,646 Other $137,428 $140,177 $140,177 Total Revenue $6,429,690 $6,558,284 $6,558,284

Expenses Operations $4,146,695 $4,229,629 $4,314,221 Animation $2,549,886 $2,600,883 $2,652,901 Total Expenses $6,696,580 $6,830,512 $6,967,122

Cost Recovery 96% 96% 96%

Building Maintenance $1,974,861 $2,014,358 $2,054,645

Cost Recovery W/ Blding Mtce 74% 74% 73%

Tax Levy $2,241,751 $2,286,586 $2,463,484

Attendance Drop In 113,715 115,989 118,309 Membership 669,059 682,440 696,089 Programs 79,794 81,390 83,017 Rentals 183,680 187,354 191,101 Total Attendance 1,046,248 1,067,173 1,088,517

Kinsmen Sport Centre Master Plan 13 Business Case Without the Capital improvements, it is anticipated that attendance and revenue growth will reach capacity in 2014 based on minor upgrades and operational focus and grow by only 2% per year, keeping cost recovery flat at 63%.

This is the projections for 2019-2024 with no capital upgrades.

2019 2020 2021 2022 2023 2024 Revenue 2015-2024 adjusted for 2% annual inflation Admission and Memberships $3,066,043 $3,127,364 $3,189,911 $3,253,709 $3,318,783 $3,385,159 Programs $418,791 $427,167 $435,710 $444,424 $453,313 $462,379 Rentals $1,325,857 $1,352,374 $1,379,421 $1,407,010 $1,435,150 $1,463,853 Other $59,502 $60,692 $61,906 $63,144 $64,407 $65,695 Total Revenue $4,870,192 $4,967,596 $5,066,948 $5,168,287 $5,271,653 $5,377,086 Expenses 2015-2024 adjusted for 2% annual inflation Operations $3,836,849 $3,913,586 $3,991,858 $4,071,695 $4,153,129 $4,236,191 Animation $2,186,080 $2,229,802 $2,274,398 $2,319,886 $2,366,283 $2,413,609 Total Expenses $6,022,929 $6,143,387 $6,266,255 $6,391,580 $6,519,412 $6,649,800

Cost Recovery 81% 81% 81% 81% 81% 81%

Building Maintenance $1,699,818 $1,733,815 $1,768,491 $1,803,861 $1,839,938 $1,876,737

Cost Recovery W/ Blding Mtce 63% 63% 63% 63% 63% 63%

Tax Levy $2,852,555 $2,909,606 $2,967,798 $3,027,154 $3,087,697 $3,149,451

Attendance 2015-2024 adjusted for 2% annual inflation Drop In 65,835 67,151 68,494 69,864 71,261 72,687 Membership 449,267 458,253 467,418 476,766 486,301 496,027 Programs 55,536 56,647 57,780 58,936 60,114 61,317 Rentals 183,342 187,009 190,749 194,564 198,455 202,425 Total Attendance 753,981 769,060 784,441 800,130 816,133 832,455

Tangible Benefits Increased revenue and attendance:

Kinsmen Sport Centre Master Plan 14 Business Case • Linking with Education – Opportunities for the City to work with educational institutions (e.g., school boards, colleges and universities) to provide public recreational opportunities and Sport Academy support.

• Operational Changes – programming and fitness centre equipment changes to attract more members and serious fitness enthusiasts to the unique amenities and programs,

• Competition/Event Hosting - The aquatic centre of the Kinsmen Sports Centre was unique in conception. Built to host the 1978 Commonwealth Games, it was designed to meet the rigorous standards of an international event venue. These include amenities to accommodate large numbers of spectators as well as athletes and competitive events.

Meeting the needs of users:

• The Kinsmen Sports Centre is the natural home to many high-performance athletic groups aiming to excel in their particular sports. These include athletics (track and field), diving, swimming, water polo, rhythmic gymnastics, synchronized swimming and triathlon. These groups include competitive athletes, children in their early development and master-level participants,

• The Kinsmen Sports Centre was superbly designed as a training and competition facility for aquatic sports in 1976, and the features that made it appropriate then are still serving the same functions today. The analysis shows that the Kinsmen Sports Centre has no equal in Edmonton as a performance sport and competition venue. No such facility is even planned in the city, whereas several new centres are in progress to serve the family sport/recreation market in the years to come.

Access and Enhanced Safety of the Facility:

• Users approaching the Kinsmen Sports Centre are confronted with a number of impediments or obstacles; the real challenge is at the point of entry where the visitor has over two dozen stairs or a circuitous ramp to navigate. Both are mostly unprotected from the elements, creating a daily burden for staff in winter of clearing ice and snow. Accessibility will be improved for persons with disabilities, as well as to those with strollers or young children, and people carrying materials, movement of large groups of people will be streamlined, especially during events. The proposed new glass box lobby will create a “wow-factor” - a visible signature or beacon of light in the river valley.

• Enhancements will also address

. Long Term Operational Requirements - Design, programming and maintenance of facilities with regard to future operating costs, health and safety concerns, and life cycle replacement planning and . Environmental Responsibility - Protection of the environment through regulations and new standards such as the ISO 14001 and LEED Silver facility design.

Aquatic Standards to bid and host on high-profile national and international events:

• For Edmonton to bid on, and host, high-profile aquatic events, Kinsmen Sports Centre requires upgrades to meet the standards required to meet the demands of national and international events. Having a facility that meets these bidding / hosting standards will play a pivotal role increasing City of Edmonton exposure on the National and International stage. Major events

Kinsmen Sport Centre Master Plan 15 Business Case help raise the bar for athletic achievement in Edmonton, and leverage our volunteer base, hotels and transit infrastructure to highlight Edmonton and continue to build our reputation globally. The long-term Event Strategy puts emphasis on the need to have a “Change in Message”. It indicated that the strong volunteer base Edmonton has as well as the festivals, hotels, and LRT are similar to what other cities have. The recommendation for the positioning of Edmonton on the world stage and providing it with a differential advantage included attracting important sports events that are consistent with initiatives contained in The Way Ahead, with emphasis on identification and quantification of the economic and social benefits that will accrue to its citizenry by hosting the events.

Intangible Benefits While the tangible benefits are tremendous, some intangible effects of the Kinsmen Sports Centre can’t be overlooked. The Kinsmen Sports Centre has an invaluable athletic history and its contribution could be considered part of contributing to the civic pride of many Edmontonians. The capital upgrades will define the Kinsmen Sports Centre as the “Sports Centre” where high performance and serious fitness sports activities take place. It will be re-established as a state of the art sport training venue. An Economic Impact:

• Edmonton entertainment and travel expenditures – Athletes training in Edmonton as well as athletes, participants and spectators traveling to events at the Kinsmen Sports Centre bring dollars to our local economy through hotel, meal and spending. National and International events may also attract those attending the events to spend time and money in other parts of Alberta and Canada while attending an event.

• Research shows that people move for work opportunities or family. The renovated Kinsmen Sports Centre will be capable of hosting new innovative events, hence increasing tourism and overall migrant’s impression to Edmonton.

• An analysis by Deloitte and Touche on the 2005 World Masters Games hosted in Edmonton identified several intangible benefits to the games. Those impacts can also apply to the Kinsmen Sports Centre as a training facility as well as an active competition venue. The benefits and economic impacts identified by Deloitte are identified below as they would apply to the Kinsmen Sports Centre.

Provincial, National and International Exposure:

• The Kinsmen Sports Centre is the one of few facilities in the region available for national and international events. Attracting more events will increase the exposure of Edmonton as a venue for competition and the City of Edmonton as a whole.

Credibility and Marketing Value:

• The Kinsmen Sports Centre was unique in conception; it was designed to meet the rigorous standards of an international event venue. These include amenities to accommodate large numbers of spectators as well as athletes and competitive events. With the capital enhancements, more value can be placed on the upscale and unique amenities available to the public, athletes and event organizers.

Civic Pride:

Kinsmen Sport Centre Master Plan 16 Business Case

• Pride in our City can be felt through the excellence of design of the Kinsmen Sports Centre, its River Valley location and unique features. There is also pride in our City hosting elite athletes who live and train in Edmonton as well as hosting National and International events and athletes to our City.

Assumptions In addition to the individual construction components there are costs for upgrades and facelifts to the existing spaces to blend the new construction with the existing structure for a seamless overall facelift. These costs have been added to the various zone pricing to reflect more accurate pricing.

Renovation areas such as Zone B include budgets for major renovations (change of use with building system modifications) and lesser upgrades (cosmetic locker room improvements). In all other areas the walls, ceilings and floor surfaces in the pool and field house are not improved unless noted (i.e. deck areas affected by pool tank changes and resurfacing of the sport flooring in the field house). Renovation budgets assume a worst-case scenario: 80% the cost of new construction for major areas and 40%-50% of new for lesser upgrades.

The budget does not include a full HVAC or electrical system replacement. The need and justification for this work would have to be assessed outside of this study and additional budget allocated.

The Master Plan budget value does not include relocation of the pylon sign or road connections from Walterdale Hill Road and to the new bridge, which may include significant ramps if the expressway is elevated. These components will be dealt with through the Walterdale Bridge project.

It is assumed that site operating costs would somewhat increase due to increased lighting, snow removal costs additional security and maintenance.

9. Resourcing

While the enhancements of the Kinsmen Sports Centre are intended to enrich the experience of users, it is not expected to have a large impact on staffing levels. Operational requirements will change with the enhancements of the facility and different programs and activities will require reallocation to existing staff. For example, more personal trainers may be required, but less step aerobics instructors. Staff will be scheduled differently to meet the operational requirements, but it is not expected to increase the number of staff required at the facility.

In addition, the enhancements will allow staff to be more efficient and effective, especially in peak times. For example, currently, visitors queue in single lines at each entry point, and are processed in a linear fashion due to the limited counter space. The Kinsmen Sports Centre reception and control desk should have more linear frontage to deal with up to four or five transactions at a time if necessary. In addition, a swipe card system would allow instant access.

The enhancements will also increase employee satisfaction through increased safety, security and modern efficiencies of the facility. The enhancements will also provide staff intangible benefits including more access to daylight, better access and increased parking.

Kinsmen Sport Centre Master Plan 17 Business Case

10. Key Risk(s) and Mitigating Strategy Risks for each alternative are as follows:

• Full Capital Improvement . All zones

Funding all zone enhancements will provide the most impact to the facility. Risks mitigated are: . Costs will exceed projected costs . Timelines will exceed projected timelines . Projected future revenue will not reach projected totals . Projected expense impact will be greater than anticipated

Costs and timelines would be monitored by City staff and all necessary steps will be taken to ensure loses or risks to the City are minimized. Yearly reviews of future operating projections will take place, based on current state/change of landscape of Fitness/Recreation providers within Edmonton and any necessary action will take place.

• The Aquatic Centre and the Field House: . Zone C – West Annex $14.38 Million . Zone F – Field House Upgrades $5.35 Million . Zone G – Aquati Centre Upgrade $39.20 Million

Funding a portion of the recommended Zone enhancements (Zones C, F and G): . Costs will exceed projected costs . Timelines will exceed projected timelines . Projected future revenue will not reach projected totals . Projected expense impact will be greater than anticipated

• The Central Core : . Zone A – Lobby addition $13.21 Million . Zone B – Coré Rénovation $21.59 Million . Zone D – South Courts Annex $4.10 Million

Funding a portion of the recommended Zone enhancements (Zones A, B and D): . Costs will exceed projected costs . Timelines will exceed projected timelines . Projected future revenue will not reach projected totals . Projected expense impact will be greater than anticipated . Limited enhancements will attract more users but limit the available space for new users

Costs and timelines would be monitored by City staff and all necessary steps will be taken to ensure loses or risks to the City are minimized. Some minor changes to the facility may be able to take place to maintain the facility expectations.

• Status Quo: Not upgrading the facility and maintaining the current status

Kinsmen Sport Centre Master Plan 18 Business Case . The facility will no longer be able to support the requirements to host events . The facility will lose users to other facilities or other providers . Revenue and cost recovery will decline . The City risks losing opportunities for national and international hosting and competition due to the facility lacking international standards

Some minor changes to the facility funded through operations may take place to maintain the facility and enhance existing space where possible. Strategies to minimize expenses may be put into place including reduction of hours, staff and decreased programming. With the maximization of operational and programming strategies, attendance and revenue has increased in 2012 and 2013 and is anticipated to continue to increase and 2014. However, operational efficiencies will reach their full potential at this point. In order to continue to increase attendance and enhance revenue opportunities at the Kinsmen Sports Centre in 2015 and beyond, capital investment is required.

Given the history of the Kinsmen Sports Centre, its ongoing effective role in the community, the interest of the provincial and national sports organizations to host events in the City of Edmonton and the volunteer expertise that exists in Edmonton in the aquatic disciplines, aquatics events have been identified as one of the city’s priorities. Hosting high profile national and international events contributes to the City of Edmonton’s global image & reputation; contributes to the economic prosperity of our city and helps create a vibrant and exciting culture for citizens - all main goals of The Way Ahead and in particular with The Way We Prosper. If funding is not provided, it will impact Edmonton’s ability to bid and host high-profile national and international aquatic events. The Kinsmen Sports Centre requires upgrades to meet the standards required to meet the demands of national and international events. Edmonton's ability to attract future international and national events will be significantly reduced, impeding other efforts underway to improve Edmonton’s global reputation should the Kinsmen Sports Centre upgrades not take place.

11. Conclusion and Recommendations

Conclusion: The Kinsmen Sports Centre is a facility that focuses on meeting the needs of high performance sports groups and serious individual fitness enthusiasts. The centre has a vision to serve athletes, coaches and fitness enthusiast, to work with sport partners/stakeholders and host events and competitions. A significant capital investment into the Centre is required to be able to realize this vision.

Recommendations: It is recommended that the Kinsmen Sports Centre Master Plan be approved by City Council.

It is recommended that all zone improvements and enhancements 1. Zone A: Lobby Addition 2. Zone B: Core Renewal 4. Zone C: West Annex 5. Zone D: South Courts Annex 6. Zone E: South Concourse Office Annex* 7. Zone F: Field House Upgrades

Kinsmen Sport Centre Master Plan 19 Business Case 8. Zone G: Warm-Up Pool Replacement and hot tub

The Zone G replacement of the Warm-Up Pool with a new 52 x 25 m pool would greatly increase the facility’s abilities for both training and competition hosting. In fact, it would make Kinsmen Sports Centre the best-equipped aquatic facility in Canada in terms of number and quality of pools.

The lobby and core enhancements should lead the redevelopment sequence. Both will have an immediately visual impact and create necessary swing space for all other phases. The Zone C West Annex will provide important additional training facilities for a variety of sports.

The lowest priority enhancement is Zone D – the South Courts Annex. This would impact the fewest number of people (racquet participants).

*Zone E- South concourse office Annex is not included within project scope and budget. It is a potential future option

If full funding is not feasible, two partial funding alternative options have been developed.

The synergy reached from the full capital upgrade of the Kinsmen Sports Centre is what will make the Kinsmen Sports Centre stand out among other North American facilities. The facility will continue to capitalize on its renowned athletic history and pride; as well the modern and updated amenities will reinstate the value of the facility as the “SPORTS CENTRE” for citizens of Edmonton.

• Zone C and Zone G – Aquatic Centre enhancements - could occur concurrently as opening the west and northwest side of the building for construction will be required.

• The Zone C construction - creating more storage and dry land training area - clears the pool deck areas for tank redevelopment.

• Zone F - Field house redevelopment - for the most part could occur independently of other enhancements and in low demand period, providing locker rooms for both genders in either the core or the field house are consistently available. However, this work will enhance the available uses of this area, so it will be beneficial to get this work completed earlier.

• Zone D – The South Courts Annex - could occur at any time. There are several seasonal considerations for the planning of construction phasing.

• Zone A - The lobby addition would create the needed swing space to allow for efficient execution of the Zone B work of re-purposing locker rooms and second level spaces. A new temporary entrance at the north-east corner of the field house would be required to re-route circulation

• Zone B – Core Renovations - should occur during the summer months when facility demand is at its lowest. Redevelopment of the redundant racquet courts could occur in advance of the summer to speed up the process. • An important consideration with the multiple sub-projects is the economy and cost savings that come with doing more work in a more compressed timeframe. One further note regarding the Zone G Aquatic Centre construction work: redevelopment will be invasive, resulting in a partial/full aquatic centre shutdown of 12-18 months.

Kinsmen Sport Centre Master Plan 20 Business Case • Zone H - Parking and site development may align best to timeframe in which the Walterdale Hill Road and Bridge are redeveloped.

• Zone E – South Concourse Office Annex – sport partner offices, staff offices, an athletes’ lounge to make better use of under-utilized space and moving existing offices off deck level. Further analysis will be required at a later date to determine the viability and cost of this work – it is not included in the estimated project cost.

Project Responsibility and Accountability Rob Smyth, Branch Manager of Community and Recreation Facilities is the project sponsor. Key members of the project team will include: Programs and Events & Kinsmen Sports Centre Director, Brad Badger Kinsmen Sports Centre Operations Supervisor, Ron Nichol Finance Representative Communications Representative IT Representative Project Management and Maintenance Representative Other internal City of Edmonton representatives will be engaged as required.

12. Implementation Approach

The Implementation of the Kinsmen Master Plan would incorporate the following elements:

• Construction, including potential alignment with the Walterdale Bridge project for parking lot expansion zone • Program and Services review to vision/mission and mandate • Branding, Marketing and Communications • Staff training

13. Review and Approval Process

Review of the Business Case:

Rob Smyth, Branch Manager, Community and Recreation Facilities Linda Cochrane, General Manager, Community Services Lorna Rosen, Chief Financial Officer and Treasurer, Financial Services and Utilities

Kinsmen Sport Centre Master Plan 21 Business Case

14. Appendices

Business Case Proformas

22 Kinsmen Sports Centre - Projected Performance with No Capital Upgrades

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Revenue 2015-2024 adjusted for 2% annual inflation Admission and Memberships $1,390,534 $1,141,781 $1,751,520 $2,571,305 $2,777,009 $2,832,550 $2,889,201 $2,946,985 $3,005,924 $3,066,043 $3,127,364 $3,189,911 $3,253,709 $3,318,783 $3,385,159 Programs $194,684 $165,180 $276,842 $368,264 $379,312 $386,898 $394,636 $402,529 $410,579 $418,791 $427,167 $435,710 $444,424 $453,313 $462,379 Rentals $1,033,612 $1,071,082 $1,184,025 $1,154,682 $1,200,869 $1,224,887 $1,249,384 $1,274,372 $1,299,860 $1,325,857 $1,352,374 $1,379,421 $1,407,010 $1,435,150 $1,463,853 Other $72,813 $66,743 $52,747 $52,323 $53,893 $54,971 $56,070 $57,191 $58,335 $59,502 $60,692 $61,906 $63,144 $64,407 $65,695 Total Revenue $2,691,644 $2,444,786 $3,265,134 $4,146,574 $4,411,083 $4,499,305 $4,589,291 $4,681,077 $4,774,698 $4,870,192 $4,967,596 $5,066,948 $5,168,287 $5,271,653 $5,377,086

Expenses 2015-2024 adjusted for 2% annual inflation Operations $2,745,540 $3,116,327 $3,382,219 $3,407,012 $3,475,152 $3,544,655 $3,615,548 $3,687,859 $3,761,617 $3,836,849 $3,913,586 $3,991,858 $4,071,695 $4,153,129 $4,236,191 Animation $1,524,098 $1,596,900 $1,630,138 $2,031,896 $1,980,000 $2,019,600 $2,059,992 $2,101,192 $2,143,216 $2,186,080 $2,229,802 $2,274,398 $2,319,886 $2,366,283 $2,413,609 Total Expenses $4,269,638 $4,713,227 $5,012,357 $5,438,908 $5,455,152 $5,564,255 $5,675,540 $5,789,051 $5,904,832 $6,022,929 $6,143,387 $6,266,255 $6,391,580 $6,519,412 $6,649,800

Cost Recovery 63% 52% 65% 76% 81% 81% 81% 81% 81% 81% 81% 81% 81% 81% 81%

Building Maintenance $1,543,290 $1,554,104 $1,539,756 $1,509,390 $1,539,578 $1,570,369 $1,601,777 $1,633,812 $1,666,489 $1,699,818 $1,733,815 $1,768,491 $1,803,861 $1,839,938 $1,876,737

Cost Recovery W/ Blding Mtce 46% 39% 50% 60% 63% 63% 63% 63% 63% 63% 63% 63% 63% 63% 63%

Tax Levy $3,121,284 $3,822,545 $3,286,979 $2,801,724 $2,583,647 $2,635,320 $2,688,026 $2,741,787 $2,796,622 $2,852,555 $2,909,606 $2,967,798 $3,027,154 $3,087,697 $3,149,451

Attendance 2015-2024 adjusted for 2% annual inflation Drop In 83,503 70,260 65,384 57,335 59,628 60,821 62,037 63,278 64,544 65,835 67,151 68,494 69,864 71,261 72,687 Membership 397,269 360,877 372,479 369,923 406,915 415,054 423,355 431,822 440,458 449,267 458,253 467,418 476,766 486,301 496,027 Programs 59,662 58,709 65,518 48,836 50,301 51,307 52,333 53,380 54,448 55,536 56,647 57,780 58,936 60,114 61,317 Rentals 110,483 89,236 130,202 161,222 166,059 169,380 172,767 176,223 179,747 183,342 187,009 190,749 194,564 198,455 202,425 Total Attendance 650,917 579,082 633,583 637,316 682,903 696,562 710,493 724,703 739,197 753,981 769,060 784,441 800,130 816,133 832,455 Operational enhancements (ex. Scheduling changes, minor upgrades)

10/9/201410:41 AM Full Capital Redevelopment and Upgrade 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Revenue Admission and Memberships $1,390,534 $1,141,781 $1,751,520 $2,571,305 $2,777,009 $2,832,550 $2,889,201 $2,946,985 $3,005,924 $1,533,021 $1,563,682 $1,594,955 $3,892,183 $3,970,026 $3,970,026 Programs $194,684 $165,180 $276,842 $368,264 $379,312 $386,898 $394,636 $402,529 $410,579 $138,201 $140,965 $143,784 $497,485 $507,434 $507,434 Rentals $1,033,612 $1,071,082 $1,184,025 $1,154,682 $1,200,869 $1,224,887 $1,249,384 $1,274,372 $1,299,860 $662,928 $676,187 $689,711 $1,902,594 $1,940,646 $1,940,646 Other $72,813 $66,743 $52,747 $52,323 $53,893 $54,971 $56,070 $57,191 $58,335 $19,636 $20,028 $20,429 $137,428 $140,177 $140,177 Total Revenue $2,691,644 $2,444,786 $3,265,134 $4,146,574 $4,411,083 $4,499,305 $4,589,291 $4,681,077 $4,774,698 $2,353,786 $2,400,862 $2,448,879 $6,429,690 $6,558,284 $6,558,284 Expenses Operations $2,745,540 $3,116,327 $3,382,219 $3,407,012 $3,475,152 $3,544,655 $3,615,548 $3,687,859 $3,761,617 $1,534,740 $1,565,434 $1,596,743 $4,146,695 $4,229,629 $4,314,221 Animation $1,524,098 $1,596,900 $1,630,138 $2,031,896 $1,980,000 $2,019,600 $2,059,992 $2,101,192 $2,143,216 $874,432 $891,921 $909,759 $2,549,886 $2,600,883 $2,652,901 Total Expenses $4,269,638 $4,713,227 $5,012,357 $5,438,908 $5,455,152 $5,564,255 $5,675,540 $5,789,051 $5,904,832 $2,409,172 $2,457,355 $2,506,502 $6,696,580 $6,830,512 $6,967,122 Cost Recovery 63% 52% 65% 76% 81% 81% 98% 98% 98% 96% 96% 96% 96% 96% 96%

Building Maintenance $1,543,290 $1,554,104 $1,539,756 $1,509,390 $1,539,578 $1,570,369 $1,601,777 $1,633,812 $1,666,489 $849,909 $866,907 $884,245 $1,974,861 $2,014,358 $2,054,645

Cost Recovery W/ Blding Mtce 46% 39% 50% 60% 63% 63% 63% 63% 63% 72% 72% 72% 74% 74% 73% Tax Levy $3,121,284 $3,822,545 $3,286,979 $2,801,724 $2,583,647 $2,635,320 $2,688,026 $2,741,787 $2,796,622 $905,294 $923,400 $941,868 $2,241,751 $2,286,586 $2,463,484 Attendance Drop In 83,503 70,260 65,384 57,335 59,628 60,821 62,037 63,278 64,544 32,917 33,576 34,247 113,715 115,989 118,309 Membership 397,269 360,877 372,479 369,923 406,915 415,054 423,355 431,822 440,458 224,634 229,126 233,709 669,059 682,440 696,089 Programs 59,662 58,709 65,518 48,836 50,301 51,307 52,333 53,380 54,448 27,768 28,324 28,890 79,794 81,390 83,017 Rentals 110,483 89,236 130,202 161,222 166,059 169,380 172,767 176,223 179,747 60,503 61,713 62,947 183,680 187,354 191,101 Total Attendance 650,917 579,082 633,583 637,316 682,903 696,562 710,493 724,703 739,197 345,822 352,739 359,793 1,046,248 1,067,173 1,088,517 Operational enhancements (ex. Pre-Construction (Desgin phase) Construction Years Full Year Operations after Capital Upgrades Completed Scheduling changes, minor upgrades) Central Core Only 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Revenue Admission and Memberships $1,390,534 $1,141,781 $1,751,520 $2,571,305 $2,777,009 $2,832,550 $2,889,201 $2,946,985 $3,005,924 $2,452,834 $2,501,891 $3,690,675 $3,764,488 $3,839,778 $3,916,573 Programs $194,684 $165,180 $276,842 $368,264 $379,312 $386,898 $394,636 $402,529 $410,579 $314,093 $320,375 $474,725 $484,220 $493,904 $503,782 Rentals $1,033,612 $1,071,082 $1,184,025 $1,154,682 $1,200,869 $1,224,887 $1,249,384 $1,274,372 $1,299,860 $331,464 $338,093 $1,500,888 $1,530,906 $1,561,524 $1,592,754 Other $72,813 $66,743 $52,747 $52,323 $53,893 $54,971 $56,070 $57,191 $58,335 $59,502 $60,692 $134,734 $137,428 $140,177 $142,981 Total Revenue $2,691,644 $2,444,786 $3,265,134 $4,146,574 $4,411,083 $4,774,698 $4,589,291 $4,681,077 $4,774,698 $3,157,894 $3,221,051 $5,801,022 $5,917,042 $6,035,383 $6,156,090 Expenses Operations $2,745,540 $3,116,327 $3,382,219 $3,407,012 $3,475,152 $3,544,655 $3,615,548 $3,687,859 $3,761,617 $1,534,740 $1,565,434 $4,066,858 $4,148,195 $4,231,159 $4,315,782 Animation $1,524,098 $1,596,900 $1,630,138 $2,031,896 $1,980,000 $2,019,600 $2,059,992 $2,101,192 $2,143,216 $874,432 $891,921 $2,446,898 $2,495,836 $2,545,752 $2,596,667 Total Expenses $4,269,638 $4,713,227 $5,012,357 $5,438,908 $5,455,152 $5,564,255 $5,675,540 $5,789,051 $5,904,832 $2,409,172 $2,457,355 $6,513,755 $6,644,030 $6,776,911 $6,912,449

Cost Recovery 63% 52% 65% 76% 81% 86% 81% 81% 81% 131% 131% 89% 89% 89% 89%

Building Maintenance $1,543,290 $1,554,104 $1,539,756 $1,509,390 $1,539,578 $1,570,369 $1,601,777 $1,633,812 $1,666,489 $849,909 $866,907 $1,836,891 $1,873,629 $1,911,101 $1,949,323

Cost Recovery W/ Blding Mtce 46% 39% 50% 60% 63% 67% 63% 63% 63% 97% 97% 69% 69% 69% 69% Tax Levy $3,121,284 $3,822,545 $3,286,979 $2,801,724 $2,583,647 $2,359,926 $2,688,026 $2,741,787 $2,796,622 $101,187 $103,211 $2,549,625 $2,600,617 $2,652,629 $2,705,682 Attendance Drop In 83,503 70,260 65,384 57,335 59,628 60,821 62,037 63,278 64,544 52,668 53,721 103,575 105,647 107,760 109,915 Membership 397,269 360,877 372,479 369,923 406,915 415,054 423,355 431,822 440,458 359,414 366,602 502,499 512,549 522,800 533,256 Programs 59,662 58,709 65,518 48,836 50,301 51,307 52,333 53,380 54,448 13,884 14,162 53,137 54,200 55,284 56,390 Rentals 110,483 89,236 130,202 161,222 166,059 169,380 172,767 176,223 179,747 183,342 187,009 273,517 278,988 284,567 290,259 Total Attendance 650,917 579,082 633,583 637,316 682,903 696,562 710,493 724,703 739,197 609,308 621,494 932,728 951,383 970,410 989,818 Operational enhancements (ex. Pre-Construction (Desgin phase) Construction Years Full Year Operations after Capital Upgrades Completed Scheduling changes, minor upgrades)

Aquatic Centre and Field House 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Revenue Admission and Memberships $1,390,534 $1,141,781 $1,751,520 $2,571,305 $2,777,009 $2,832,550 $2,889,201 $2,946,985 $3,005,924 $613,209 $625,473 $3,315,102 $3,381,404 $3,381,404 $3,381,404 Programs $194,684 $165,180 $276,842 $368,264 $379,312 $386,898 $394,636 $402,529 $410,579 $104,698 $106,792 $557,643 $568,796 $568,796 $568,796 Rentals $1,033,612 $1,071,082 $1,184,025 $1,154,682 $1,200,869 $1,224,887 $1,249,384 $1,274,372 $1,299,860 $994,393 $1,014,280 $1,743,821 $1,778,698 $1,778,698 $1,778,698 Other $72,813 $66,743 $52,747 $52,323 $53,893 $54,971 $56,070 $57,191 $58,335 $47,602 $48,554 $61,906 $63,144 $63,144 $63,144 Total Revenue $2,691,644 $2,444,786 $3,265,134 $4,146,574 $4,411,083 $4,499,305 $4,589,291 $4,681,077 $4,774,698 $1,759,900 $1,795,098 $5,678,472 $5,792,041 $5,792,041 $5,792,041 Expenses Operations $2,745,540 $3,116,327 $3,382,219 $3,407,012 $3,475,152 $3,544,655 $3,615,548 $3,687,859 $3,761,617 $1,534,740 $1,565,434 $4,006,858 $4,086,995 $4,086,995 $4,086,995 Animation $1,524,098 $1,596,900 $1,630,138 $2,031,896 $1,980,000 $2,019,600 $2,059,992 $2,101,192 $2,143,216 $874,432 $891,921 $2,331,898 $2,378,536 $2,378,536 $2,378,536 Total Expenses $4,269,638 $4,713,227 $5,012,357 $5,438,908 $5,455,152 $5,564,255 $5,675,540 $5,789,051 $5,904,832 $2,409,172 $2,457,355 $6,338,755 $6,465,530 $6,465,530 $6,465,530

Cost Recovery 63% 52% 65% 76% 81% 81% 81% 81% 81% 73% 73% 90% 90% 90% 90%

Building Maintenance $1,543,290 $1,554,104 $1,539,756 $1,509,390 $1,539,578 $1,570,369 $1,601,777 $1,633,812 $1,666,489 $679,927 $693,526 $1,871,091 $1,908,513 $1,946,683 $1,985,617 Cost Recovery W/ Blding Mtce 46% 39% 50% 60% 63% 63% 63% 63% 63% 57% 57% 69% 69% 69% 69% Tax Levy $3,121,284 $3,822,545 $3,286,979 $2,801,724 $2,583,647 $2,635,320 $2,688,026 $2,741,787 $2,796,622 $1,329,199 $1,355,782 $2,531,374 $2,582,002 $2,620,172 $2,659,106 Attendance Drop In 83,503 70,260 65,384 57,335 59,628 60,821 62,037 63,278 64,544 13,167 13,430 77,264 78,810 80,386 81,994 Membership 397,269 360,877 372,479 369,923 406,915 415,054 423,355 431,822 440,458 89,853 91,651 515,491 525,801 536,317 547,043 Programs 59,662 58,709 65,518 48,836 50,301 51,307 52,333 53,380 54,448 41,652 42,485 73,424 74,892 76,390 77,918 Rentals 110,483 89,236 130,202 161,222 166,059 169,380 172,767 176,223 179,747 146,674 149,607 190,749 194,564 198,455 202,425 Total Attendance 650,917 579,082 633,583 637,316 682,903 696,562 710,493 724,703 739,197 291,346 297,173 856,928 874,067 891,548 909,379 Operational enhancements (ex. Pre-Construction (Desgin phase) Construction Years Full Year Operations after Capital Upgrades Completed Scheduling changes, minor upgrades)