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2019 Fair Exhibit Planning January 8, 2019

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2019 Fair Exhibit Planning January 8, 2019 Hastings Park-PNE Public Board Meeting March 4, 2019 Agenda 1. Review of Projects to date 2. Update on Master Plan Projects • Playland Redevelopment • Amphitheatre Renewal 3. Hastings Park Technical Studies 4. Next Phase Projects Review of Projects to Date Completed Greening Projects to Date Creekway Park Previously a gravel parking lot Completed September 2013 Includes day lighted stream, pathway, bike way, natural landscaping HP Identity and Signage Plan Hastings Park Branding and wayfinding to venues and greenspaces Completed 2014/2015 HastingsCompleted Greening Park Projects / toPNE Date Master Empire Fields Plan Two community sports fields & Track Lighting for evening use Plateau Sports Park- includes playground, sport courts, bike park, parkour Completed July 2015 Temporary Greenways East/West connector linking Renfrew, Empire Field & New Brighton Park Future plans incorporate permanent greenways Completed 2013-2014 HastingsCompleted Projects Park to Date / PNE Master Livestock building Phase 1 PlanRoofing and seismic upgrades to ensure safety Feasibility Study is next step Completed 2014 Garden Auditorium Asbestos Abatement Completed 2014 Update on Master Plan Projects Playland Redevelopment Phase 1 Phase 2 Phase 3 Phase 4 2011-2013 2017-2020 2020-2022 2022-2028 MASTER PLAN & DETAILED PLANNING & Phase BUSINESS CASE CONSTRUCTION PROJECT FEASIBILITY DESIGN Determine if there is a Clearly define the Plan and design the Construct asset and Purpose redevelopment redevelopment delivery of the project handover to operations opportunity & screen opportunity and delivery various scenarios approach Key Phase 2 Outcomes: • Refresh market analysis • Confirm redevelopment scenario • Identify project delivery strategy and funding strategy • Progress design to 30% • Develop more reliable cost estimates (-15 to +20%) Playland Redevelopment – Progress Update 1. Completed refresh of market and benchmark analysis 2. Completed scenario and financial evaluation on 4 redevelopment scenarios • Confirmed original redevelopment scenario as the ideal and preferred option 3. Progressed technical studies as part of a site-wide risk assessment Market Analysis Refresh Findings • Overall market size, by Primary and Secondary Market drive-time, is largely consistent with a slightly larger overall projected market in year 2022; • Macroeconomic conditions have continued to improve based on GDP and employment metrics; • Very strong growth in overnight tourists with over 1.9 million more annual visitors than 2010*; and • Based on industry and Playland performance, trends look positive for growth *Source: Pro Forma Advisors LLC Competitive Benchmarks THRC (Capacity) PFAAN by Ride (Quality; 0=low) Attendance by Day Per Cap Spending Comparison (2011 – 2017) Source: Pro Forma Advisors LLC Market Penetration Analysis Canada’s Wonderland Playland (No Fair) Market Population Penetration Attendance Market Population Penetration Attendance (millions) (millions) (millions) (millions) Primary 1 3.39 38% 1.29 Primary 1 1.83 15% 0.27 Within 30 minute drive Within 30 minute drive Primary 2 3.90 29% 1.13 Primary 2 0.96 7% 0.07 Within 60 minute drive Within 60 minute drive Secondary 1 3.02 21% 0.64 Secondary 1 0.51 5% 0.03 Over 60 minute drive Over 60 minute drive Tourism 6.31 11% 0.69 Tourism 6.21 1% 0.06 Adjusted for season Adjusted for season Total 3.79 Total 0.42 La Ronde Attendance Index (2014-2017) Market Population Penetration Attendance (millions) (millions) Primary 1 2.56 35% 0.90 Within 30 minute drive Primary 2 2.03 21% 0.43 Within 60 minute drive Secondary 1 1.76 16% 0.28 Over 60 minute drive Tourism 6.66 3% 0.20 Adjusted for season Total 1.81 Source: Pro Forma Advisors LLC Scenario Evaluation Findings 1. Base case (Stabilized Attendance **conservative scenario**) • Existing footprint, no attendance or per cap growth, does not meet any social, economic or environmental goals of Master Plan 2. 2013 design • Redevelopment & expanded footprint, attendance & per cap growth¹ • Does meet social, economic and environmental goals of Master Plan 3. 2013 design + extended season • 2013 design plus coverage to lengthen season & add off season events, expected potential attendance growth, with higher costs • Does meet social, economic and environmental goals of Master Plan 4. 2013 design with lighter theming • 2013 design with less theming, lower attendance & per cap growth than 2013 design • Does meet social, economic and environmental goals of Master Plan ¹Preliminary analysis indicates that the 2013 design remains the preferred scenario, with staff also evaluating potential weather mitigation opportunities to de-risk seasonal attendance and create the potential for an extended season. 32,600 sqm 14,100 sqm 44,120 sqm 23,000 sqm 14 Next Steps 1. Continue with Financial Feasibility & Financing Options Analysis • Assess consolidated PNE cash flow impacts • Assess parking infrastructure cost impacts • Evaluate funding and alternative financing options 2. Delivery Planning & Options • Assess broader Master Plan components that require investment in conjunction with Playland • Evaluate redevelopment phasing options to reduce risk and optimize investment timeline • Evaluate business/service delivery model options Next Milestone: Report back to Council in late 2019 with recommended delivery approach, procurement/partnership plan and request additional funding Amphitheatre Renewal – Project Overview HP-PNE Master Plan Priorities • Increase green space and habitat to 50% of total site • Redevelop Playland (15 to 22 acres) to serve as the economic engine • Develop “Heart of the Park” to serve as a central celebration zone for flexible, programmable spaces suitable for festivals, events, and day-to- day usage. This space will be centered around a renewed Amphitheatre, Festival Plaza, urban plazas and Livestock Building. • Daylight a stream linking the Sanctuary to Burrard Inlet through the Heart of the Park • Build amenities and infrastructure to service broad needs Amphitheatre Renewal - Business Case Overview Phase 1 Phase 2 Phase 3 Phase 4 Business Case Preliminary Design Detailed Planning & Design Construction Redevelopment Scenario Market Analysis Update Design Considerations Business Model Analysis Business Case Report Analysis Key Findings – Market Analysis • Overall market size is growing and consistent with projected population growth • Strong growth in overnight tourists with over 1.9M more annual visitors than 2010 • The event industry is currently strong and anticipates future growth in attendance • Despite growth in demand, the supply of local venues is seen as a concern by the local event industry • Demand for VIP experiences is growing and represents a large, untapped revenue stream • A scalable price structure for smaller community/non-profit shows would be well received and result in more shows Key Findings – Market Opportunity Existing Venue Supply Gap in the Vancouver Market: • Affordable venues with a capacity range from 2,000 to 5,000 and 5,001 -7,500 are in short supply and high demand • Flexible venue space that can serve 2,000 to 10,000 capacity events will fill a major gap in the local venue market Ancillary Revenues Are Critical to Venue Success • Large venue capacity and extended operating season will provide the greatest opportunity for financial viability • Parking, improved food & beverage guest amenities, and VIP experiences represent an important financial opportunity Expressed Interest from Local Commercial/Community Event Organizers • 60% of existing/potential community and commercial event organizers require capacity less than 5,000 seats; 30% event days for events between 5,000 – 10,000 capacity • Over 70% of survey respondents would be interested in renting at a redeveloped Amphitheatre Key Findings – Design Considerations • The new venue should have complete installation of power, internet, water, cover, washrooms, concessions, box office, VIP suites, back-of-house facilities, and covered stage • Flexibility is very important, particularly in stage size, seating configurations and floor plans • Providing cover over the audience will benefit ticket sales and extend the window for outdoor shows • Sound management is a concern and sound management will be a requirement in venue design • Improved catering or reception area deemed beneficial for producers and the PNE Next Steps • Finalize financial components of Business Case Report (March 2019) • Present recommended redevelopment scenario to project Steering Committee and HP- PNE Board (April 2019) • Initiate Heart of the Park Feasibility Study (Q2 2019) Hastings Park Technical Studies Traffic, Parking and Access Study Background 1. Creating clear pedestrian and vehicle organization was a primary principle in the HP-PNE Master Plan 2. Traffic engineering consultant (Binnie) was engaged in 2017 to conduct a Traffic, Parking and Access Study to assess the current parking demand, assess traffic volume at peak events, and provide recommendations for future attendance 3. Two site surveys were conducted (one day during the Fair and one non-Fair multiple-event day) to account for parking demand 4. Recommendations provided on what site changes will optimize traffic and parking when considering future HP-PNE Master Plan development Preliminary Recommendations 1. Design for 50th / 95th percentile (The Fair/Playland) parking demand 2. Two potential sites for future parking require further operational and financial assessment 3. Consider transportation demand management (TDM) strategies to reduce
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