Tourism Business Development and Financing Guide

TOURISM BUSINESS DEVELOPMENT AND FINANCING GUIDE

GUIDE FOR TOURISM BUSINESSES

FIFTH EDITION Tourism Business Development and Financing Guide

TOURISM BUSINESS DEVELOPMENT AND FINANCING GUIDE

Tourism Saskatchewan is pleased to deliver It is our hope that this guide will answer many another development tool for the tourism of your questions and help you avoid potential industry. This booklet provides a detailed roadblocks. Please keep in mind that planning approach that can be used to assist in throughout the course of planning and bringing the expansion of an existing tourism venture, or to life a new tourism initiative, you are invited the creation of a new tourism business. and encouraged to keep in close contact with our Industry Development branch, so that we In 2004, our industry generated over $1.4 may provide any additional assistance possible. billion in tourist activity, resulting from urban, rural, and northern visitor experiences. Tourism continues to be the fastest-growing economic Darryl McCallum sector in our province. Sound, effective business Director development is critical to sustaining this growth Industry Development Branch and increasing visitor expenditures.

Further development of our tourism economy in Saskatchewan is greatly dependent upon strong and healthy tourism businesses.

Tourism Saskatchewan wishes to express our appreciation for assistance with this publication to the following:

1 Tourism Business Development and Financing Guide

TABLE OF CONTENTS

PART ONE: THE DEVELOPMENT PROCESS . . .4 PART TWO: SOURCES OF FINANCING FOR BUSINESSES IN THE TOURISM INDUSTRY . . .29 INTRODUCTION ...... 4 INTRODUCTION ...... 29 CHAPTER ONE ...... 5 DEFINING THE PROJECT: Markets, Resources CHAPTER ELEVEN ...... 30 and Development INTERNAL SOURCES OF FINANCING (a) Owners – proprietors, partners, CHAPTER TWO ...... 8 shareholders ECONOMIC FEASIBILITY (b) Inventory (c) Accounts receivable CHAPTER THREE ...... 12 (d) Accounts payable DEVELOPMENT APPROVALS (e) Sale of assets

CHAPTER FOUR ...... 13 CHAPTER TWELVE ...... 31 STEPS IN THE DEVELOPMENT PROCESS CONVENTIONAL LENDERS (a) Chartered Banks CHAPTER FIVE ...... 15 (b) Credit Unions MUNICIPAL PLANNING CONSIDERATIONS (c) Other Conventional Lenders

CHAPTER SIX ...... 18 CHAPTER THIRTEEN ...... 32 SUBDIVISION APPROVAL AND SERVICING ECONOMIC DEVELOPMENT ORGANIZATIONS AGREEMENTS (a) Small Business Loan Associations (b) Community Futures Development CHAPTER SEVEN ...... 21 Corporations ENVIRONMENTAL AND RESOURCE (c) Regional Economical Development CONSIDERATIONS Authorities

CHAPTER EIGHT ...... 24 CHAPTER FOURTEEN ...... 33 PUBLIC HEALTH, SERVICING, LIQUOR GOVERNMENT LENDERS LICENSING, FIRE PROTECTION, AND ACCESS (a) Business Development Bank of Canada CHAPTER NINE ...... 26 (b) Farm Credit Corporation SPECIAL CASES: CROWN LAND, NATIONAL AND (c) Saskatchewan Northern Affairs PROVINCIAL PARKS CHAPTER FIFTEEN ...... 34 CHAPTER TEN ...... 28 LEASING COMPANIES SUMMARY LABOUR SPONSORED VENTURE CAPITAL CORPORATIONS AND FOREIGN INVESTMENT FUNDS

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CHAPTER SIXTEEN ...... 35 OTHER AGENCIES AND PROGRAMS (a) Saskatchewan Heritage Foundation (b) Northern Enterprise Fund Inc. (c) Saskatchewan Council for Community Development and the Prairie Farm Rehabilitation Administration (d) Agriculture Canada (e) Saskatchewan Learning and Careers & Employment Services (f) Ducks Unlimited (g) Saskatchewan Indian Equity Foundation (h) Aboriginal Business Canada (i) Saskatchewan Native Economic Development Corporation (j) Women Entrepreneurs of Saskatchewan Incorporated (k) Saskatoon Credit Union Micro Loan Program and Western Economic Diversification (l) Co-operative Development Assistance Program (m) Clarence Campeau Development Fund (n) Community First Development Fund of Saskatoon Inc.

CHAPTER SEVENTEEN ...... 38 (A) Sources of Financing for Tourist Attractions (B) Summary

ACKNOWLEDGEMENTS ...... 38

LIST OF CONTACTS ...... 39

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PART ONE: THE DEVELOPMENT PROCESS

INTRODUCTION positive 'word of mouth' advertising by satisfied Tourism Saskatchewan has the mandate to customers, and achieving a high percentage of promote and enhance the development of the return business. tourism industry in Saskatchewan. This working guide has been prepared to help you assess, plan, Past experience with tourism in Saskatchewan obtain financing, receive approvals for, and indicates that: develop a successful tourism project in • strong 'hands-on' management is essential to Saskatchewan. running an efficient operation that enjoys high customer satisfaction; Some topics covered in this guide are common • tourism operators must look beyond the 'peak' to all commercial ventures. Others are unique to summer tourist season of mid-June to mid- the nature and requirements of the tourism August to justify large capital investments; industry. Major sections will assist in • a concerted effort must be made to set aside understanding: funds for reinvestment and upgrading; • the regulatory environment in which tourism • developments which proceed without a clear businesses and attractions operate; and realistic plan for attracting specific, targeted • which aspects of a proposed development markets can get into financial trouble very should be defined early in the process, and quickly; modified as more information is obtained; and • adequate working capital will be required to • which steps you may have to follow as the sustain the operation through poor market proposed project passes through the conditions, and to cover unexpected costs; and development process. • tourism businesses and attractions benefit from co-operative marketing and active participation No guide can answer all questions or cover all in regional and sectoral tourism associations. issues that developers of tourism projects may confront. However, this guide attempts to Private lenders, outside investors, and provide a clear framework for what is involved government agencies view many proposed in developing a successful tourism operation. tourism developments as high-risk ventures. They require a clear indication of viability and SUCCESSFUL TOURISM OPERATIONS managerial capability. The following chapters A successful tourism operation requires strong will help you understand and deal successfully management, well trained employees, and the with their concerns. ability to serve the market. This is especially true for operations where visitors have high expectations of quality personal service.

Creating a comfortable, friendly atmosphere should be a primary consideration in the selection of employees. It is a key to ensuring

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CHAPTER ONE

DEFINING THE PROJECT: MARKETS, RESOURCES AND DEVELOPMENT At the outset you should define the proposed development, which sets out its markets, and physical and financial requirements in a clear and comprehensive way. In the case of attractions involving interpretation, be sure to briefly outline your interpretive plan at this time. The project and its definition can be modified, as more information becomes If preliminary market information is not available over time. positive, a rethinking of the development project is required. It is also important to anticipate: • the types of regulatory approvals required; PRELIMINARY RESOURCE ANALYSIS • the information required to obtain these Tourism developments depend on the use of approvals; various resources to attract visitors. These can • the sequence in which approvals will take include natural, heritage, cultural, recreational, place; and paleontological, and archaeological resources. • a realistic time frame over which the approval For example, unique and/or outstanding quality process is likely to occur. natural resources are essential to ecotourism and adventure tourism. Aboriginal cultures offer The Industry Development Branch of Tourism attractive opportunities to explore and Saskatchewan can advise you on moving experience historically different ways of life. projects through the approval process. Recreational fishing and hunting depends on the proven presence of a sustained resource base. A FIRST LOOK AT THE MARKET Begin the overall project description by If the success of a tourism attraction or service identifying the markets which you will seek to depends upon resource-based activities, then it is attract. Keep in mind the existing and any essential to evaluate the quality and long-term planned competition in relation to these supply of the resource. This is a crucial first step markets. Also consider tourist attractions which in defining the project. bring visitors to your area and can complement your project with co-operative marketing opportunities. While a more detailed analysis will be required later on, this first look at market demand and supply factors will help to identify the types of facilities and services which the development should offer.

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PHYSICAL CHARACTERISTICS: THE Both off-site and on-site services should be DEVELOPMENT PROGRAM considered in planning the project. For example, Once the preliminary market and resource if electric power is not available the cost of analysis has been completed, the next step is to extending power lines can add significantly to prepare the physical development plan. This the cost of the development. involves identifying all the components needed to accommodate the proposed venture, and Many attractions provide interpretive relating them to the site which has been programming, which presents unfamiliar, and tentatively selected. This planning process will sometimes complex, historic, cultural, or help to ensure that sufficient land has been scientific information in easily understood identified for the development. Also, the language. The nature of this interpretive development program is the basis for cost programming has a significant impact on the estimates needed for the feasibility analysis design and landscaping of the various facilities discussed in the next chapter. involved.

Depending upon the project, components to be Interpretation is the means by which a story is considered will include some, or all, of the told. With a wildlife viewing location, for following: instance, you will want to explain to visitors • analysis of the location: community plans and what is special about a place - what plants, birds, policies, zoning regulations, access, soils, slopes, and animals live there and why, and what are drainage, tree cover, views, shoreline conditions, the proper ways of observing these natural easements, etc. features. In three growing market segments - • interpretive programming requirements: ecological, aboriginal, and agricultural tourism- functional analysis, displays and exhibits, the development of an interpretive plan is of preliminary schematic design, landscaping, paramount importance. climate control, audio visual requirements, training of staff, etc; As these steps are completed, a clearer picture • building and building by-law requirements: will emerge in conceptual form of the size, type, size, function, cost, accessibility; layout and costs of the development being • facilities needed: marinas, boat launches, considered. Remember the size of your target recreation facilities, accommodation, etc.; markets - who your customers and visitors will • site development: clearing, grading, roads and be - when planning the facility. parking, landscape development; • land requirements: initial stages of Estimates of development and maintenance development as well as future expansion costs will be especially useful in the next step - requirements; and feasibility analysis. The concept plan will also be • servicing and utilities: water supply, liquid very useful for clearly presenting the proposal to waste disposal, solid waste disposal, power, regulatory agencies and funding sources. telephone, fuels.

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PHYSICAL CHARACTERISTICS

LOCATION

ACCESS

SITE ANALYSIS

THE DEVELOPMENT BUILDINGS PROGRAM

CONCEPT PLAN • Plans/Sketches • Written Proposal FACILITIES

SITE DEVELOPMENT

LAND • Current • Future

SERVICES • On-site • Off-site

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CHAPTER TWO

ECONOMIC FEASIBILITY If you are hoping to develop a major facility, now is usually the time to engage an outside consultant to study the economic feasibility of the proposed tourism development. The developer of a smaller project may not require such assistance, but should still carry out an analysis using the three steps, which are outlined below.

The Industry Development Branch of Tourism The following points should be stressed when Saskatchewan advises potential developers about: the market analysis is carried out: • drafting the terms of reference and other • examine the segments of the market which written terms and conditions governing a study; have special potential because of your project's • selecting a number of consultants to prepare location and type of facilities and activities formal written proposals; planned (such as motor coach, seniors, • choosing a consultant; recreational vehicle, paleontological tours, etc.) • reviewing the consultant's work throughout • identify opportunities to package your the study process to ensure that the developer's facilities and services with those of objectives are being met; and complementary businesses and attractions • determining alternate sources of funding for (such as golf courses, exhibitions and fairs, the study. cultural events, museums, etc.); • break down the market by geographic origin, Generally, an economic feasibility study is type of facilities and activities sought (for carried out in three separate steps: market example, groups seeking ecological and cultural analysis, financial analysis, and the business plan. experiences, snowmobiling clubs, reunions, young families on vacation, etc.) STEP ONE: MARKET ANALYSIS • consider all types of revenues from all The market analysis looks in detail at the information sources available; present and anticipated competition for the • prepare a marketing plan which includes a proposed development. It considers any detailed strategy to optimize revenues on a complementary developments such as new sustainable basis, and to co-operatively attractions, and nearby recreational participate in the marketing and promotion opportunities such as golfing, snowmobiling, plans developed and implemented by tourism skiing, fishing, etc. In rural Saskatchewan, it sector and regional associations, and Tourism must consider the impact of possible future Saskatchewan. conversion of surrounding landscapes due to forest harvesting, mineral developments, or In other words, the analysis should identify what agricultural diversification. In urban locations, market groups your customers are in, how many the potential impact of nearby commercial and of them there are, where they come from, when industrial developments should be kept in mind. they come, and what they want to do when they get here.

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Remember that marketing and promotion are essential and dynamic functions of a successful tourism operation at all times.

A review of our Internet Marketing Guide, Internet Web Site, and Travel Literature Series will help you to understand more about tourism industry activity in Saskatchewan.

STEP TWO: FINANCIAL ANALYSIS The financial analysis will generally proceed as probably be spent first, followed by follows: disbursement of borrowed funds. As accurately • based on the information obtained about your as possible, estimate the monthly expenses that market and from your earlier work in defining will be incurred over the first 12 months of the project's physical characteristics, estimate operation. This will enable you to determine the the total capital costs of the development. working capital required to sustain the business This can include land acquisition, site during the critical first year of operation. If your preparation, servicing, landscaping, operation is seasonal and dependent on construction, furnishings, fixtures and favourable weather conditions, your initial equipment, possible interpretive displays and working capital requirements could amount to programming, leasehold improvements, vehicles, more than six months of operating expenses, related engineering, architectural and including funds for debt servicing; and community planning costs, and other services. This information should, wherever possible, be • prepare projected financial statements. These will include balance sheets, income supported by written quotations and it is statements, and cash flow statements, described advisable to add at least 10 per cent to guard as follows: against cost overruns; (a) The balance sheets will reflect the capital (Remember to include the Provincial Sales and the structure of your business - its assets, liabilities, Goods & Services taxes.) and owner's equity. They will show the • determine how the venture will be financed. projected liquidity of the venture, that is, the This will include your cash equity, cash current assets, which can quickly be converted investments from other shareholders or partners, to cash in order to pay current liabilities, loans from banks, credit unions, and other including loan payments. They also show the conventional lenders, and assistance which is extent of debt being carried in relation to the sometimes available through economic equity, which the owners have contributed or development organizations; accumulated.

• schedule the flow of cash required to bring the project into commercial operation. This is vital, because your own cash investment will 9 Tourism Business Development and Financing Guide

(b) The income statements - projections of STEP THREE: THE BUSINESS PLAN revenues and expenses - should be prepared on a This is like a roadmap, which will guide you monthly basis for the first three to five years of through the actual commercial operation of operation. Income estimates will be determined your venture. It should include: based on reasonable expectations considering the • projected financial statements; information you have obtained about your • a management plan showing the market. The revenue and expense projections organizational/corporate structure; will allow you to ascertain whether the business • a detailed advertising/promotion plan and operation will generate sufficient revenues to budget; cover expenses. If breakeven is not evident, some • a staffing plan which includes provision for adjustments to the project may have to be made training of both management and non- which will result in increased revenues and/or management staff, yourself, and other partners decreased expenses, to make a profit. and shareholders who will be active in the venture. (Remember that too often, (c) A projected cash flow statement (Statement owner/managers will arrange training for their of Changes in Financial Position) is also employees, but overlook their own training something you may find useful, depending on needs.) Proponents are advised to contact the the size and complexity of your project. This Saskatchewan Tourism Education Council in statement reveals the flow of cash in and out of this regard; and the venture, and clearly identifies debt-servicing • the phasing of the project. A schedule showing requirements. Remember, you don't spend the gradual advancement of the project through profits, which can be tied up in inventories and regulatory agencies, financial institutions, accounts receivable, or non-cash contributions suppliers and contractors and pre-opening of goods and services which may come from training and marketing will help you proceed in shareholders, sponsors, and volunteers; you an organized manner. spend cash. A business plan can be an effective tool only if it • try to compare the projected and/or actual is based on a cautious economic analysis and financial performance of your venture with realistic use of information, and if it is updated actual results of similar operations, and the regularly. For example, the business plan should industry in general. This information is allow for higher than prevailing interest rates, so sometimes available from provincial and/or that the impact of changes in the cost of debt national industry associations and will help you servicing will have been provided for in advance. to determine whether your projections are realistic or not. Perhaps you will have to go back The importance of analyzing the financial and review some of your assumptions, and feasibility of a tourism development is just as rework the projections accordingly. relevant to smaller projects, such as seasonal attractions and retail businesses, as it is for major projects such as four-season resorts and major interpretive centers.

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ECONOMIC FEASIBILITY

THE MARKET FINANCIAL ANALYSIS • Capital Costs ANALYSIS • Working Capital • Who? • Financing • How many? • Cash Flow Projections • From where? • Comparisons with similar • Wants/Needs? operations and other • Competition investments

PLAN • Advertising • Promotion • Co-operative Programs BUSINESS PLAN • Pro Formas • Management Plan • Advertising & Promotion Plan • Staffing Plan • Project Schedule

SUMMARY After completing all of the steps outlined above, you are now in a position to pursue the required approvals from regulatory agencies and commercial lenders, which will hopefully enable you to raise the necessary capital, and implement your project.

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CHAPTER THREE

DEVELOPMENT APPROVALS development agreements with the appropriate A number and variety of government policies, level of government to ensure that roads, guidelines and regulatory procedures affect telephone, hydroelectric power, natural gas, or nearly all tourism projects, no matter what their other services are extended and maintained. size. There are good reasons why this is the case. Tourism developments such as resorts or lodges From the above, it is evident that tourism are often based on the recreational use of natural operates in a regulatory context which is more resources such as scenery, fisheries, and wildlife. varied and diversified than many other The use of fisheries and wildlife is managed businesses. Bringing a successful proposal through a number of regulations and programs, through to implementation requires: which in turn may affect the viability of the • thorough familiarity with the requirements tourist operation. and timing of each procedure; and • early identification of all regulations and Many tourism businesses, whether large or processes which affect a particular project. small, need to seek out a location near water bodies. Lakeshore or riverbank areas generally Fortunately, there is considerable assistance to are affected by land use and environmental guide the developer through what may seem at policies and regulations designed to protect first an overwhelming or confusing situation. water quality and fish habitat, as well as to avoid Government officials can be very helpful in environmental problems of erosion, slumping or providing information and advice. flooding resulting from unwise shoreline development. Consequently, environmental Often, several procedures can occur parallel to impacts must be considered. each other, thus avoiding undue delays. And, fortunately, going through the necessary steps Because tourism businesses may affect the use of may reveal some critical aspects of the proposed land as well as the character of existing development, which might otherwise be communities, the developer may have to meet ignored. municipal or provincial land use policies or zoning by-laws. On the other hand, failure to anticipate regulatory requirements could result in critical Tourism operations, which provide food and delays and premature cash outlays by the accommodation, must meet public health and developer. Either of these situations could lead liquor licensing regulations. to the failure of the project before it really has the opportunity to get started. Tourism businesses developing outside of serviced urban areas will probably find it The important thing is to anticipate all necessary to provide their own water supply and regulatory procedures, to allow sufficient time waste disposal systems. This can have a major for completion and to prepare fully for them. impact on capital and operating costs. Also, the business or attraction will have to deal with an The next chapter introduces the more common additional set of processes and regulations procedures that a developer is likely to designed to ensure a safe and adequate water encounter within the overall development supply and environmentally suitable waste process, and provides some principles for disposal. successfully dealing with these steps. Chapters five to nine provide greater step-by-step detail Some tourism developments find it desirable to for each identified element of the development be located in relatively undeveloped areas. This process. may require entering into formal servicing or 12 Tourism Business Development and Financing Guide

CHAPTER FOUR

STEPS IN THE DEVELOPMENT PROCESS Having defined and planned all aspects of the tourism project, the next steps are to take the proposal through the required stages of the development process. Two major principles are essential to success: • obtaining local support; and • putting your project in writing.

The advantages of following these two principles PUT IT IN WRITING will far outweigh any additional costs or time The chances of proceeding successfully and incurred. reasonably quickly through the development process are going to be substantially improved THE IMPORTANCE OF LOCAL by thorough documentation. SUPPORT AND GOOD PUBLIC RELATIONS Decision-makers are likely to react much more Too many sound tourism business operations positively when all information is supplied, have failed to move past the planning or problems are anticipated, and intentions are approvals stage because of factors other than clearly stated. financial viability or local impact. The preparation of a sound, well-documented They may have ground to a halt because of proposal, outlining the development concept as strong local opposition arising from perceived described in chapters one and two will be negative impacts, such as the disruption of invaluable in bringing the project through to cottages or outdoor recreation activities. implementation. This should include economic Alternately, initial public announcements may issues such as jobs, taxes, and other government have included unrealistic promises and and societal concerns. expectations of benefits, or may have disregarded issues considered to be important locally. THE DEVELOPMENT PROCESS This section describes the various types of Local support and 'good neighbor' relations may development approvals, which are common in not be absolutely essential for profitability and Saskatchewan currently, along with success of tourism operations. However, a circumstances, which would require each proposed development which has local support approval process. Because Tourism and maintains open, honest communication Saskatchewan's Industry Development Branch is with local government, business and residents is familiar with these procedures, it is advisable to more likely to receive approvals and operate establish contact at the start and maintain successfully in the future. contact throughout.

Tourism Saskatchewan’s Industry Development Generally, the development process involves a Branch personnel can discuss with interested number of separate but inter-related areas, developers how good communications and which may be encountered on almost all types relations with the local public have been of development. Once again, it may be an achieved in the past. 13 Tourism Business Development and Financing Guide

advantage to use the services of private Environmental Assessment Branch of consultants, especially if it is a major, complex Saskatchewan Environment. project. In all cases it is advisable to consult all agencies as early as possible to determine which PUBLIC HEALTH, SERVICING, AND LIQUOR procedures must be followed and the time LICENSING required for each. • water supply and distribution • liquid and solid waste disposal The following steps outline the development • food, liquor, and accommodation regulations process: and guidelines • liquor licensing MUNICIPAL PLANNING CONSIDERATIONS • municipal statutory plans The Regional Health Authority and the regional • zoning bylaws and development permits offices of the Saskatchewan Watershed Authority • building permits should be contacted at the outset with respect to public health and servicing considerations. The The local municipality should be contacted Saskatchewan Liquor and Gaming Authority initially to determine how the proposal fits with will provide information regarding liquor license municipal plans, policies, and bylaws. requirements.

SUBDIVISION AND SERVICING CONSIDERATIONS ACCESS • land subdivision approval The Saskatchewan Human Rights Commission • servicing agreements can provide "Accessibility Standards Guidelines." An early meeting with the municipal administrator and with representatives of the If highway access is required, Saskatchewan Community Planning Branch of Saskatchewan Highways and Transportation should be Government Relations will identify the contacted. requirements of this part of the development process. The municipal Economic Development SPECIAL CASES Officer, if the municipality has one, will also • Crown land provide advice and assistance. • provincial and national parks

ENVIRONMENTAL AND RESOURCE Situations, where Crown land or land within CONSIDERATIONS provincial or national parks is proposed to be • environmental impact leased or acquired, are special cases. Such • fisheries and wildlife habitat situations require contact with some or all of • flood risk and slope stability the following: Saskatchewan Environment, • reservoir development areas Saskatchewan Agriculture and Food, Department of Canadian Heritage, and/or the The appropriate officials to contact in the field Prairie Farm Rehabilitation Administration. are the local Resource Officer of Saskatchewan Environment, and the regional office of the Saskatchewan Watershed Authority. If environmental concerns are evident, contact the

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CHAPTER FIVE

MUNICIPAL PLANNING CONSIDERATIONS This element of the development process is one of the most critical. Under The Planning and Development Act, 1983, municipalities have the authority to adopt statutory plans consisting of a development plan or a basic planning statement and a zoning bylaw controlling development. Consequently, an early meeting with local municipal officials is essential. It will help • what other concerns or requirements does the determine the general municipal attitude municipality have? towards the proposal, and local requirements. Generally, the municipal administrator will The discussion in this chapter and the next advise on the procedures, timing, and approvals addresses the various municipal and provincial of the municipal council. Contact with the land use planning procedures in greater detail. community's Economic Development Officer and/or the area’s Regional Economic MUNICIPAL STATUTORY PLANS Development Authority will also be useful. An increasing number of municipalities, both urban and rural, have adopted statutory plans Several specific questions should be addressed. containing broad policies or guidelines for the They are as follows: use of land. These are known either as • does the municipality have a statutory plan (a Development Plans or Basic Planning Development Plan or Basic Planning Statements. Statement)? If so, does the proposal conform to this Plan? If not, what information will be The first step of the development process at the required for the municipality to consider an municipal level is to determine whether the amendment? municipality has a statutory plan in place, and • does the proposal conform to the municipal whether the proposed development is zoning bylaw? If not, what are the criteria and compatible with its policies and guidelines. requirements for amendment? • if the proposal conforms to zoning, what are If the municipality has a statutory plan, the the requirements for obtaining a development proposal must conform to its land use policies. permit and a building permit? If this is the case, then the next step is to check • is subdivision approval required, and if so, the proposal for conformity with current zoning what regulations would apply? A servicing regulations, as discussed in the next section. agreement may be required prior to subdivision approval. There may also be requirements for However, if the proposal does not fit the the provision of dedicated lands, which includes municipal statutory plan, the next question is municipal reserve, environmental reserve buffer whether or not the municipality is prepared to strips and walkways. make the necessary amendments. As the plans 15 Tourism Business Development and Financing Guide

are based on considerable information and Often, Development and Building Permits are analysis by the municipality, the responsibility issued at the same time, although procedures rests with the developer to provide information vary from municipality to municipality. on the rationale, justification, and benefits of the Generally, this is a straightforward procedure development. At this point, a great deal of involving submission of an application form, a patience, diplomacy, and willingness to address site plan and building plans to the municipality. specific municipal concerns may be needed. Approval is likely to be a matter of weeks rather than months. As suggested earlier, it may be advisable to prepare clear, written documentation of the If the proposal does not conform to the zoning physical, environmental, economic and financial bylaw, the municipality may be prepared to implications of the proposal. The process of consider a zoning amendment. The process of amending a statutory plan is summarized in the amending a zoning bylaw is summarized in the flow chart at the end of chapter five. This flow chart at the end of chapter five. In general, process, especially the public meeting, is the the following apply: point at which the proposal is most visible to • the process is similar to statutory plan public scrutiny. Thorough documentation of all amendment; issues and good public relations will facilitate • about two months minimum time; timely and successful completion of this phase • advertising and public meeting required; of the development process. • developer usually pays advertising cost; • no formal appeal to council decision; ZONING BYLAWS/DEVELOPMENT AND • the statutory plan/zoning bylaw amendment, BUILDING PERMITS and/or subdivision review processes may be Zoning Bylaws are detailed municipal land use done jointly. controls, which specify land use zones, or zoning districts, permitted and discretionary uses, Again, while municipalities usually support regulations and development standards. sound development proposals, the responsibility Development permits are issued by remains with the developer to demonstrate the municipalities to signify conformity to the social, environmental, and economic benefits to zoning bylaw before any construction proceeds. the community. A Building Permit is usually required to signify conformity with the building code where a To summarize, the significance of the municipality has adopted a building bylaw municipality's role in the development process pursuant to The Uniform Building and cannot be over-emphasized. Accessibility Standards Act.

Development and Building Permits are required for virtually all types of tourism development.

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STATUTORY PLAN AND/OR ZONING AMENDMENT PROCESS

PRELIMINARY INQUIRY: Municipality L

A SUBMIT APPLICATION S

O AND P DOCUMENTATION O R P E S I V E R REJECT COUNCIL DECISION

NO APPEAL PROCEED / S Y ADVERTISE AMENDMENT N G S E O

E • 2 consecutive I T ABANDON PROJECT V T A I weeks P T R T O A S N R R E W E D E T I I L S V A N E R O PUBLIC HEARING C NO APPEAL • 21 Days Minimum

REFUSAL COUNCIL DECISION

APPROVAL

MINISTERIAL APPROVAL (except urban bylaws)

PROCEED WITH DEVELOPMENT AND BUILDING PERMITS

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CHAPTER SIX

SUBDIVISION APPROVAL AND SERVICING AGREEMENTS Subdivision of land involves the creation of legal parcels of land. This is one of the more common procedures within the development process where new titles are to be created.

Major points to be noted with regard to subdivision approval are: • the proposed plan of subdivision must be • where a municipality is an approving authority prepared by a professional planner or licensed (most cities), appeal is first made to the local surveyor; Development Appeals Board, and subsequently • application is made to the approving authority can be further appealed to the SMB. for subdivision. The Director of Community Planning of Saskatchewan Government In the course of this process the application is Relations is an approving authority, and a circulated to other government departments, number of cities have been given the authority which would have an interest in or be affected to approve subdivisions; by the proposal. In this way the requirements • proposals must comply with The Planning for an Environmental Impact Statement (for and Development Act, 1983, and any statutory example) would be determined, as discussed in plan or zoning bylaw; chapter seven. • a completed subdivision application form and a plan of proposed subdivision are required; • suitability of the land for development would be considered; • the provision of services, dedicated lands, etc. would be considered; • servicing agreements may be required by the municipality prior to subdivision approval; • an application for subdivision can be made with a request for an amendment to a statutory play and zoning by-law; • subdivision appeals may be made to the Development Appeals Board (DAB) or the Saskatchewan Municipal Board Planning Appeals Committee (SMB), as the case may be. The SMB can hear appeals made from the DAB.

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SUBDIVISION APPROVAL

Preliminary Inquiries to Approving Authority/ Municipality L

A OBTAIN STATUTORY S

O PLAN AND/OR P Submit Application O ZONING R

P AMENDMENT IF

E REQUIRED S I

V Completed Application E

R Accepted

CIRCULATION FOR NEGOTIATE COMMENT SERVICING • Municipality/ AGREEMENT WITH Municipal Departments MUNICIPALITY WHERE • Saskatchewan Health REQUIRED • Saskatchewan Watershed Authority • Saskatchewan Environment • Saskatchewan OBTAIN Highways and ENVIRONMENTAL Transportation PROJECT SCREENING • Other (IMPACT ASSESSMENT, IF REQUIRED)

Y ABANDON APPLICATION G S REVIEW E E T R V E A I T R D I T A S S N N R W E O REJECTION DECISION APPROVED E T C I L V A E R

Conditional Appoval (servicing agreement, development standards on APPEAL TO hazardous lands) DEVELOPMENT APPEALS BOARD AND/OR SASK. MUNICIPAL BOARD

D PLANNING APPEALS Fulfill E

S COMMITTEE Conditions/Development U

F Standards E R L A E

P APPROVAL P A APPEAL GRANTED

ABANDON PROJECT Create new titles with Registrar of Titles, and transfer property

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SERVICING AGREEMENT As a condition of subdivision approval, a signed servicing agreement with the local municipality may be required. Such an agreement is a legal contract between the developer and the municipality to establish responsibility for both on-site and off-site development costs. Where an agreement is required by the municipality, it must be signed prior to subdivision approval by the approving authority. Because of its financial implications the servicing agreement is one of the most important steps of the development process and should be anticipated in the initial phases of the development program, as discussed in chapter one.

The developer should consider the following factors in anticipation of signing a servicing agreement: • provision of on-site services in a subdivision include: roads, utilities, water lines, sewer lines, drainage, street lighting, park development and other authorized services; • payment of levies or charges for on-site or off- site services which may relate to roads, utility lines, water lines, sewage lines, and other authorized services serving the subdivision; • the servicing agreement usually specifies the development standards for all improvements; and • the developer usually maintains all services for an interim period before municipal takeover. If this is the case, these costs should be considered in preparing the projected cash flow statements as part of the business plan.

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CHAPTER SEVEN

ENVIRONMENTAL AND RESOURCE CONSIDERATIONS Many tourism developments depend upon access to and the use of natural resources and tourism activities may have an impact upon other users of these resources. Taking these into consideration involves working with the officials and/or area residents responsible for several processes. An environmental assessment is more likely to ENVIRONMENTAL IMPACT be required if your project will: An Environmental Impact Assessment program • adversely affect rare species or landforms; has been established to protect and conserve • cause public concern because of environmental Saskatchewan's environmental resources. The changes; program involves the review and evaluation of • substantially use a provincial resource; or all development proposals for potential • otherwise cause significant environmental environmental concerns. Where such concerns impacts. are present, you may be required to conduct an Environmental Impact Assessment (EIA) by The time frame for the preparation and preparing an Environmental Impact Statement approval of the Environmental Impact (EIS). Statement can vary depending on the amount of additional information required. The time In order to determine whether or not an required may be as little as four months if well Environmental Impact Assessment is required prepared, but could also be considerably longer you should submit a project proposal to the if significant issues must be resolved. Environmental Assessment Branch of Saskatchewan Environment at an early stage. The final decision, made by Saskatchewan The proposal could well be in the same Environment, determines whether the proposal document used to support applications to is environmentally acceptable, conditionally other agencies. acceptable, or not acceptable at all.

Following a review of the project proposal, you As with many other aspects of the development will be advised whether or not to prepare an process, the prospects of successfully dealing Environmental Impact Statement. If an with this step will be increased if you supply as Environmental Impact Statement is requested, much information about the development as guidelines for its preparation will be provided. possible at the outset. Early contact with the Environmental Assessment Branch of Saskatchewan Environment is recommended.

21 Tourism Business Development and Financing Guide

ENVIRONMENTAL IMPACT ASSESSMENT (EIA)

PRELIMINARY INQUIRIES

PROJECT PROPOSAL L A SASKATCHEWAN S O

ENVIRONMENT REVIEW P O

• 30 days minimum R P W E I V E

EIA REQUIRED R DECISION ß GUIDELINES PROVIDED

EIA NOT PUBLIC NOTICE REQUIRED

EIA CONDUCTED PROCEED WITH EIS* PREPARED DEVELOPMENT AND SUBMITTED Y

(subject to other G E regulatory T A

requirements) R T S SASKATCHEWAN W E

ENVIRONMENT REVIEW I V

• 6 weeks minimum E R

PUBLIC REVIEW • 30 days minimum

RECOMMENDATION TO MINISTER

CONDITIONAL MINISTERIAL DECISION REFUSAL APPROVAL

APPROVAL ABANDON FULFILL CONDITIONS PROJECT

PROCEED WITH DEVELOPMENT * Environmental Impact Statement (subject to other regulatory requirements)

22 Tourism Business Development and Financing Guide

FISHERIES RESOURCES RESERVOIR DEVELOPMENT AREAS The managers of Saskatchewan's fisheries are These areas have been established to manage responsible for the conservation and shoreland use and development around a maintenance of our fish populations. For number of Saskatchewan's reservoirs. Land use tourism operations, which rely on fishing, an zones have been created around these reservoirs assessment of the productivity of a particular and, if a rezoning is required, Cabinet approval lake can be made by the Fisheries Branch of is required, and the process may take up to six Saskatchewan Environment. This assessment months. includes both the natural productivity of the lake and the needs of other users. The Fisheries Once satisfactory zoning is in place, a Branch will advise on the appropriate size of Development Permit must be obtained. This lodge or camp, which can be accommodated on may take a minimum of six weeks, and will be the lake. This will protect the interests of all grated if the municipality and other government users of the fisheries resource. departments and agencies are in agreement with the proposal. The Development Permit is in Canada's Fisheries Act deals with protection of addition to any permits required under fish habitat. Under the Act, a Shoreline municipal zoning bylaws. The Saskatchewan Alteration Permit is required for any Watershed Authority administers the Reservoir developments such as beaches, docks, or Development Area program. marinas. This permit is available from the local Resource Officer of Saskatchewan Environment, and may involve some conditions regarding the location, type, or level of development if the proposal could affect fish habitat. The processing time will be a minimum of one week.

FLOOD HAZARD Developments proposed in high flood risk areas may have difficulty in receiving approvals due to the risk of property damage and the threat to public safety. Developments proposed in areas of lower flood risk could require flood-proofing by diking or landfill, which would increase development costs. If there is any question about being located in a flood hazard area, the Saskatchewan Watershed Authority should be contacted at an early stage.

23 Tourism Business Development and Financing Guide

CHAPTER EIGHT

PUBLIC HEALTH, SERVICING, LIQUOR LICENSING, FIRE PROTECTION, AND ACCESS If restaurants, accommodation, swimming pools, or water and sewer systems are part of the planned tourism facility, you should be aware of a variety of public health regulations and approvals. Generally, these are administered by Public Health, the Saskatchewan Watershed Authority, and by Saskatchewan Environment. SHORELAND POLLUTION CONTROL REGULATION'S PUBLIC HEALTH These regulations were adopted and The province of Saskatchewan is divided into 12 administered by Saskatchewan Health in 1976. Regional Health Authorities (RHA). Each RHA They continue to be regulated by the new administers the Public Health Act, and health authorities, to protect lakes and regulations and by-laws of their particular health watercourses from pollution and to ensure safe region. The Medical Health Officer administers drinking water in recreational areas. The a variety of regulations affecting: regulations apply to the disposal of liquid waste • hotels and motels; for any development within 1,500 feet of a lake • tourist accommodation, including rental or watercourse. Information on the effect of cabins, campgrounds, resort facilities, bed and these regulations is available from your Regional breakfasts, and farm vacations; Health Authority office. • swimming pools, whirlpools, and spa facilities; • public eating establishments (restaurants); SASKATCHEWAN WATERSHED • plumbing systems and sewage disposal. AUTHORITY This Authority is responsible for approving the These regulations specify minimal development construction of water supply up to the standards. Approvals are issued following treatment facility. Saskatchewan Environment is submission of the appropriate site and building responsible for approval of subsequent water plans. The various licenses and approvals may treatment, and liquid waste treatment facilities. not be required until just prior to construction. This applies to either private or public/ In some cases, the general contractor for a municipal systems. (The Authority also licenses project will obtain the necessary approvals as the withdrawal of water from any lake or body part of the construction package. of water to ensure that there is an adequate supply and that prior water rights are respected.) Early contact with the RHA Medical Health Officer is advised. Contact with the nearest regional office of Saskatchewan Environment and the Saskatchewan Watershed Authority will clarify

24 Tourism Business Development and Financing Guide

the approvals required for public and private serve markets, which might otherwise be sewer and water systems. It is prudent to plan inadvertently restricted. ahead to anticipate these approvals and associated requirements, as well as any costs SASKATCHEWAN HIGHWAYS AND which may be involved. TRANSPORTATION If road access is required from a provincial SASKATCHEWAN LIQUOR AND highway or if the development is near a GAMING AUTHORITY highway, Saskatchewan Highways and This authority issues licenses for the serving of Transportation should be contacted regarding alcoholic beverages and gambling activities. any particular concerns or criteria regarding the Early direct contact with the Liquor and location of access points, sight lines, setbacks, Gaming Authority is recommended if your signage or other matters. immediate or future plans include these services.

FIRE PROTECTION Fire regulations and protection are administered by the Provincial Fire Commissioner’s office, and fire departments in urban and rural municipalities in most of Saskatchewan. Fire insurance coverage is required by most commercial lenders as part of the security for their loans, and you will need to investigate the availability of fire protection services and the costs involved. These costs may include specific charges by the municipality for fighting a fire, in addition to their municipal tax levy. In remote areas, which are not organized municipalities, fire protection from a government agency cannot always be provided. It is a good idea to contact Saskatchewan Environment to ascertain fire-fighting priorities, which may affect your area (particularly in the commercial forest).

ACCESS The Saskatchewan Human Rights Commission can provide you with "Accessibility Standards Guidelines" which will help you design your facilities, and any interpretive programming requirements. These guidelines enable you to

25 Tourism Business Development and Financing Guide

CHAPTER NINE

SPECIAL CASES: CROWN LAND, NATIONAL AND PROVINCIAL PARKS Crown Land within National and Provincial Parks (and lands designated under The Parks Act) cannot be sold. However, leases and development agreements can sometimes be obtained for projects meeting criteria established by Saskatchewan Environment – for commercial operations in provincial parks, and the Department of Canadian Heritage (Parks • impacts of existing land dispositions, such as Canada) – for commercial operations in Forest Management Agreements, Allocated national parks. Outfitting Areas, recreational leases, grazing leases, trap-lines, etc.; Other Crown lands are administered by a • possible Treaty Land Entitlement processes – variety of municipal bodies, non-profit land caveats, if any; organizations, and government agencies and • the municipal planning environment (Basic departments. These include Urban and Regional Planning Statement, Zoning Bylaws, subdivision Park Authorities, the Prairie Farm Rehabilitation processes, servicing agreements, etc.); Administration (PFRA), as well as Saskatchewan • the timing of municipal decision-making Environment, and Saskatchewan Agriculture processes (may be seasonal in resort areas); and Food. • public reserve requirements along water bodies; shoreline alteration requirements; Smaller businesses locating on provincially • professional surveys and land appraisals owned crown land usually lease their land base required to ascertain property values; from the department involved. Larger, more • timber removal – if clearing is required, an complex projects usually purchase the land base Operating Plan and Scaling Plan must be when the requirements of their development approved and a Forest Product Permit issued agreement have been met. (the developer may also have to pay for an appraisal of the value of timber to be removed); Typical concerns which may need to be • potable water and adequate sewage capacities – addressed with respect to leasing and purchasing if existing services are inadequate, professionally provincial Crown land for tourism projects, prepared plans to construct /operate a public include some (but not necessarily limited to) the water/sewage system must be submitted and following: approved; • water Allocation requirements of the • compatibility with permitted land uses Saskatchewan Watershed Authority; prescribed in Integrated Land Use Plans • environmental impact assessment governing portions of the Northern Provincial requirements; Forest and certain Agricultural lands; • Heritage Assessment requirements;

26 Tourism Business Development and Financing Guide

• easement requirements for Sask-Tel, Sask Energy/Trans Gas, and Sask Power, and the costs of obtaining these services; • road construction and maintenance, fire protection, policing, insurability; • requirements of the Federal Department of Fisheries and Oceans; • requirements of the Federal Department of Transport – Marine Division; and • the process and timing required by government officials and solicitors to negotiate, process and approve lease and sale agreements.

The length of time for these concerns to be adequately addressed, and the sequencing required in doing so, will have to be carefully investigated at the outset. When more than one of the departments and agencies mentioned above are involved, it is wise to make sure each of them is aware of the other’s involvement. Inter-departmental and inter-agency communication is essential in implementing business projects in an orderly and timely manner.

Depending upon the scale and complexity of the project, the process is unlikely to be less than six months in duration, and may well take a year or longer.

If acquisition of Crown land for tourism projects is being considered, early contact with the Industry Development Branch of Tourism Saskatchewan is advisable.

27 Tourism Business Development and Financing Guide

CHAPTER TEN

SUMMARY Developing a tourism business or attraction involves a logical series of steps over varying lengths of time. The chances of success for the business are improved substantially if the broad planning framework presented in this guide is followed. The steps in this development process are: • taking a preliminary look at the market; • analyzing the resource base; projects (over $3,000,000) may take up to • defining the extent of the project: land, 2.5 years; buildings, facilities, staffing; • maintaining contact with Tourism • evaluating the market, analyzing the financial Saskatchewan throughout the process; and aspects, preparing a business plan; and • recognizing the importance of good public • taking the project through the approvals relations, with positive contact at both the process. provincial and municipal levels.

Throughout this guide, a number of basic Attention to these principles will make the principles have been emphasized as the keys to development process easier, more enjoyable and successfully completing the tourism more likely to succeed. development process. • identifying all regulatory requirements at the For further information and assistance, outset and allowing sufficient time for please contact our offices in either Regina completion of all processes; or Saskatoon. • documenting, in writing, all aspects of the proposed development; INDUSTRY DEVELOPMENT BRANCH • making the best possible use of available 321 – 4th Avenue N assistance and advice wherever possible; Saskatoon, SK S7K 2L9 government officials will do their best to be (306) 933-5746 co-operative and helpful; • recognizing that the responsibility for INDUSTRY DEVELOPMENT BRANCH providing all required information rests with 1922 Park Street the developer; Regina, SK S4N 7M4 • realizing that the development process, from (306) 787-8708 the initial idea through to business start-up, may take a considerable length of time. Smaller projects (under $500,000) may take six months to a year. Medium- sized projects ($500,000 to $3,000,000) may take up to 1.5 years. Large

28 Tourism Business Development and Financing Guide

PART TWO: SOURCES OF FINANCING FOR BUSINESSES IN THE TOURISM INDUSTRY

INTRODUCTION Tourism Saskatchewan is committed to developing an environment and infrastructure, which will encourage profitable investment in viable tourism businesses in Saskatchewan.

The Tourism Business Development and Financing Guide has been prepared to assist individuals and groups in carefully planning and implementing tourism development projects. Part II of the guide deals with sources of financing. Some of the lenders listed here are not always in a position to fund tourism projects, but they should not be overlooked in the process of securing the best possible financial services for your business venture.

Tourism is an industry characterized by individual creativity and innovative solutions to a wide range of challenges. Finding the right combination of equity and debt is critical. The information provided in Part I of the Tourism Business Development and Financing Guide, combined with the financial path finding provided in Part II will assist in meeting this challenge.

29 Tourism Business Development and Financing Guide

CHAPTER ELEVEN

INTERNAL SOURCES OF FINANCING Businesses applying for loans often overlook internal sources of financing.

(a) Owners - proprietors, partners, shareholders The four basic forms of business organization are sole proprietorships, partnerships, corporations, and co- operatives. Regardless of the form of organization under which the business will operate, it is the owners who traditionally provide the initial financing from their own resources. The funds may come from savings, or from borrowing against personal assets, such as one's home or other real estate. The Financial Analysis section of Chapter 2 outlines the importance of identifying the cash requirements of the business, and the flow of funds as the business is established or expanded.

Each form of organization has legal and tax implications. The advice of a solicitor and/or an accountant should be sought in the creation of the most appropriate capital structure for your business venture.

(b) Inventory Some businesses carry an excessive amount of inventory for resale. Carrying a lower level of inventory could free up cash for use elsewhere in the business.

(c) Accounts Receivable Many businesses extend credit to their customers. The cash generated from credit sales will not be available to the business, until the accounts receivables are collected. If their collection takes longer than planned, operating loans (or an additional injection of equity from the owners) may be required.

(d) Accounts Payable Many businesses purchase supplies and services on credit. Payment of these accounts when they are due rather than when they were incurred can retain more cash within the business for a longer period of time. This can reduce operating loan requirements.

(e) Sale of Assets One other internal source of funds is the sale of fixed assets, which are no longer necessary in the operation, or are unlikely to be required in future. This can include everything from office equipment and vehicles, to real estate. It may be that disposing of some assets will reduce or eliminate the need to borrow money.

30 Tourism Business Development and Financing Guide

CHAPTER TWELVE

CONVENTIONAL LENDERS (a) Chartered Banks These federally chartered financial institutions regularly provide operating, medium, and long-term financing to virtually every kind of business venture. They have learned a great deal about different businesses through the experience of granting, monitoring, and collecting these loans. Bankers who have dealt with your kind of business venture can be a valuable source of information as well as a source of financing.

While each bank has their own package of financial services, all of them make loans under the Canada Small Business Financing Act. The maximum loan amount is $250,000 for businesses with annual revenues under $5,000,000. Contact your bank for current interest rates.

Banking is a competitive business. There is nothing wrong with comparing the services and credit terms offered by more than one financial institution, as you negotiate the best financing package for your business.

(b) Credit Unions Credit Unions also provide a wide range of financial services to the business community. Credit Unions are owned by their members and credit decisions are made or ratified by a local board made up of people elected from the membership. For internal financial reasons, larger loans are sometimes handled by Credit Union Central, but they still require local support.

(c) Other Conventional Lenders Longer and medium term loans are also provided by trust companies, insurance companies, commercial mortgage lenders, and acceptance corporations.

31 Tourism Business Development and Financing Guide

CHAPTER THIRTEEN

ECONOMIC DEVELOPMENT ORGANIZATIONS (a) Small Business Loan Associations (SBLAs) These associations make small business loans to existing and start-up businesses in amounts not exceeding $15,000. They serve a broad range of business interests including, for example, the Saskatchewan Bed and Breakfast Association. For more information or for referral to the SBLA nearest you, please contact Saskatchewan Rural Development at (306) 787-7154 or visit www.rd.gov.sk.ca/Small_Business_Loans.asp.

(b) Community Futures Development Corporations (CFDCs) There are 14 CFDCs in Saskatchewan. Each of them operate with somewhat different guidelines, dependent upon local community needs within their region. They make business loans for start-ups and expansions in non-metropolitan communities, to a maximum of $125,000. Businesses should contact the CFDC in their region for specific information. To locate the CFDC in your region, refer to www.communityfutures.ca/provincial/sk.

CFDC’s also operate the Western Youth Entrepreneur Program, which provides loans, loan guarantees, and equity investments in businesses owned and operated by people between the ages of 18 and 29, outside of major metropolitan areas. Loan maximum is $25,000 with full repayment within five years.

(c) Regional Economic Development Authorities (REDA) There are 28 REDAs operating in Saskatchewan. They assist communities and organizations to join together to plan for economic development in their regions. Services can also include the arranging of cost-shared business planning and market research. To contact your local REDA office please see www.rd.gov.sk.ca/REDA/REDA_Support_Offices.asp.

32 Tourism Business Development and Financing Guide

CHAPTER FOURTEEN

GOVERNMENT LENDERS (a) Business Development Bank of Canada (BDC) This federal Crown Corporation was formerly known as FBDB. It has been active for many years helping to create and develop small businesses throughout Canada. BDC provides a wide range of financing options, but is likely best known in the tourism sector for its flexible term loans.

BDC also operates the Growth Capital for Aboriginal Business Program. Loans can be used for acquiring fixed assets, financing franchise fees, covering start-up costs, developing new markets, or replenishing working capital depleted by capital expenditures. Financing of up to $100,000 for existing businesses and $25,000 for start-ups is available. For additional information about BDC, go to www.bdc.ca.

(b) Farm Credit Corporation (FCC) FCC is a well-known agricultural lender. It can lend money for any farm-related purpose – land, buildings, equipment, land improvements, quota, livestock, agribusiness, or value added enterprises and diversification initiatives. Agritourism and farm vacation operators should be familiar with FCC and its services. For further information, visit www.fcc-sca.ca.

(c) Saskatchewan Northern Affairs - Northern Development Fund This department administers the Northern Development Fund, which provides loans ranging from $1,000 to $250,000 to northern Saskatchewan residents. The fund also provides grants for Marketing Promotion Research and Development, and for community economic development. Financing will cover the purchase of capital equipment, land, buildings, inventory and working capital. For more information see www.northern.gov.sk.ca or phone the Northern Affairs office in La Ronge at 1-866-663-4065 or 425-4261.

33 Tourism Business Development and Financing Guide

CHAPTER FIFTEEN

LEASING COMPANIES Purchasing aircraft, recreational vehicles, cars, light trucks, office equipment, etc., can consume cash reserves, which could be profitably employed elsewhere in the business. Leasing reduces the initial cash outlay required for such acquisitions, and therefore leaves more cash available for other purposes. Leasing companies are listed in the yellow pages of the phone book. Most of the conventional lenders referred to above, as well as various manufacturers offer leasing programs.

LABOUR SPONSORED VENTURE CAPITAL CORPORATIONS (LSVCC’S) AND FOREIGN INVESTMENT FUNDS Tourism businesses are eligible small businesses in which these funds can take equity or debt positions. Historically, they have almost entirely confined their investments to other sectors, but a few major tourism projects have accessed these funds. www.ir.gov.sk.ca/Default.aspx?DN=3155,3148,2936,Documents

34 Tourism Business Development and Financing Guide

CHAPTER SIXTEEN

OTHER AGENCIES AND PROGRAMS (a) Saskatchewan Heritage Foundation (SHF) The Heritage Foundation may assist in the restoration of designated heritage property. Cost sharing grants to 50% (75% in northern Saskatchewan) may be provided for exterior restoration. Application deadlines are February 28 and July 31 each year. The SHF office is in Regina (Grant Administrator, 787-2105). www.cyr.gov.sk.ca/sask_heritage_foundation.html

(b) Northern Enterprise Fund Inc. Operating strictly in northern Saskatchewan, this fund provides scholarships, direct loans and/or loan guarantees to help diversify or expand existing businesses. Syndication services are also available for projects that exceed the fund maximum. The fund office address is Box 220, Beauval, Saskatchewan SOM OGO. (288-2258 or 1-800-864-3022 or email: [email protected])

(c) Saskatchewan Council for Community Development (SCCD) and Prairie Farm Rehabilitation Administration (PFRA) The SCCD administers the Canadian Adaptation and Rural Development (CARDS) Program in Saskatchewan. CARDS is mainly directed towards agriculture, the agri-food sector, and rural development. Grants are available to a wide range of applicants. Agritourism and ecotourism operations, as well as other rurally based ventures may be eligible for support. For additional information, contact SCCD at 1-800-641-8256 or 975-6847 in Saskatoon, or contact the nearest PFRA office. www.sccd.sk.ca/cards

(d) Agriculture Canada This department is able to provide business planning assistance to farmers seeking to diversify their operations to include tourism activities. Non-repayable financial contributions can be made as follows: • 95% of the first $2,000. in Consulting Fees, and • 50% of any additional Consulting fees incurred in a total project of up to $16,000. • Note that the Consultant selected to provide these services must be pre-approved by Agriculture Canada

(e) Saskatchewan Learning and Careers & Employment Services This department operates a number of employment related programs, some of which can cost-share wages and training expenses. These include: • Employment Programs (Bridging, Community Works, Work Placement, and Self Employment) • Work-based Training for the Unemployed • Work-based Training for Employed Workers

For current information on these programs, call the Career Information Hotline at 1-888-775-3276. www.sasked.gov.sk.ca/branches/programs or www.sasknetwork.ca

35 Tourism Business Development and Financing Guide

(f) Ducks Unlimited (DU) DU pays selected landowners to leave migratory bird nesting habitat undisturbed and in hay until after the majority of waterfowl have hatched. This can amount to several hundreds of dollars per year for a quarter section. This has implications for ecotourism and farm vacation operations. DU has offices in several communities including Saskatoon (665-7356).

(g) Saskatchewan Indian Equity Foundation (SIEF) SIEF provides advisory and mentoring services and business loans to Treaty and Status Indians. The program provides commercial loans for new and existing businesses owned by individuals, partnerships, corporations, and band-owned businesses. SIEF operates from Saskatoon (955-4550). www.sief.sk.ca

(h) Aboriginal Business Canada (ABC) This branch of Industry Canada provides business services and support to Canadian Aboriginal peoples. Financial support can be made available to establish new businesses offering Aboriginal cultural tourism or ecotourism experiences. Financial support can also be made available to businesses, which add one of these components to their business. ABC has an office in Saskatoon (975-4376). www.strategis.ic.gc.ca/epic/internet/inabc-eac.nsf/en/home

(i) Saskatchewan Native Economic Development Corporation (SNEDCO) SNEDCO is a Saskatchewan Metis-owned and operated business development organization. It operates a Small Business Loans Program, which provides capital loans, working capital loans, supplementary equity loans, bridge loans, loan guarantees, and business advisory services to viable Metis business ventures based in Saskatchewan. The Supplementary Equity Loans Program component can provide loans of up to $40,000 with a maximum five year term for repayment. The SNEDCO office is in Saskatoon (477-4350). www.metisnation-sask.com/affiliates/snedco.html#2

(j) Women Entrepreneurs of Saskatchewan Incorporated This program is designed to help women access business advisory services, training, financial assistance through a loan fund, and networking opportunities. Loans of up to $100,000 can be provided to help women start or expand a business. To be eligible for a loan, a company must be majority owned and controlled by women, and demonstrate viability. For further information, call 1-800-879-6331, or 477-7173 (Saskatoon), or 359-9732 (Regina). www.womenentrepreneurs.sk.ca/programs/loans/index.php

36 Tourism Business Development and Financing Guide

(k) Saskatoon Credit Union Micro Loan Program and Western Economic Diversification This program is delivered by the Saskatoon Credit Union. It provides loans up to $25,000 to people with good business ideas who are unable to obtain financing from traditional lenders. Contact WED at 306-975-5872 or the Saskatoon Credit Union at 306-934-4052. www.wd.gc.ca/finance/programs/microSask_e.asp

(l) Co-operative Development Assistance Program The purpose of this program is to encourage and support the development and expansion of co-operative enterprises. Any co-operative business incorporated and registered under the Co-operatives Act, 1996, or the New Generation Co-operative Act, is eligible to apply. Co-operatives considering an expansion into new areas of business activity are eligible for up to $10,000 to cover eligible expenses. The program is administered by Saskatchewan Rural Development. www.rd.gov.sk.ca/Cooperative_Development.asp

(m) Clarence Campeau Development Fund (CCDF) This Fund is designed to provide financial assistance to Metis individuals and communities for economic and small business activities. It provides access to funding for equity contributions, community development initiatives, development of management skills, and joint venture projects with First Nations and non-Aboriginal businesses. For further information, contact the CCDF office in Saskatoon at 306-657-4870. www.clarencecampeaudevelopmentfund.com

(n) Community First Development Fund of Saskatoon Inc. Community First is a Saskatoon community-based charitable organization which manages a local investment fund. It works with the Saskatoon Credit Union to develop flexible financing in the form of loan guarantees, direct loans, and equity investments. The groups it most wants to serve are those who are not normally able to access traditional financing. For further information, contact their office in Saskatoon at 306-934-4177. www.communityfirstsaskatoon.ca

37 Tourism Business Development and Financing Guide

CHAPTER SEVENTEEN

(A) SOURCES OF FINANCING FOR TOURIST ATTRACTIONS This publication does not specifically deal with sources of funding for attractions. Many attractions do incorporate business components, however, providing food services, guided tours, and operating gift shops. These commercial services benefit from broader support provided by senior governments and agencies.

Following is a brief list of sources of funding for attractions in Saskatchewan: • the Western Culture Fund (Department of Canadian Heritage) • the Museum Assistance Program (Department of Canadian Heritage) • the Museums and Gallery Grant Program (Saskatchewan Lotteries) • the Saskatchewan Arts Board • Saskatchewan Culture, Youth and Recreation • the Canada Council • the Canadian Council of Archives • the Saskatchewan Heritage Foundation

For additional information on these and any other programs, contact the Canada-Saskatchewan Business Service Centre 956-2323 and 1-800-667-4374 in Saskatoon). www.cbsc.org/sask

(B) SUMMARY Sources of financing for tourism businesses includes, but may not be limited to, those listed in this publication. The information provided here with respect to those listed is current as at July 2005. Programs do change however, and business operators are encouraged to maintain contact with the Industry Development Branch of Tourism Saskatchewan.

ACKNOWLEDGEMENTS The contributions of the following officials are hereby acknowledged:

Len Kowalko, Government Relations

Don Dill, Saskatchewan Watershed Authority

Graham Mutch, Saskatchewan Environment

38 Tourism Business Development and Financing Guide

LIST OF CONTACTS

SASKATCHEWAN TOURISM REGIONS TOURISM SASKATOON - KEY CONTACTS 6 - 305 Idylwyld Drive N SASKATOON, SK S7L 0Z1 NORTHERN TOURISM REGION Phone: (306) 242-1206 Ms. Paula Stalwick, Fax: (306) 242-1955 General Manager Email: [email protected] Box 208 www.tourismsaskatoon.com SHELL LAKE, SK S0J 2G0 Phone: (306) 427-2202 Mr. Todd Brandt, Fax: (306) 427-2203 President/CEO Email: [email protected] Email: [email protected]

Ms. Jacqueline Watt, SASKATCHEWAN EAST CENTRAL Marketing Coordinator TOURISM REGION INC. Box 1121 Box 460 LA RONGE, SK S0J 1L0 YORKTON, SK S3N 2W4 Phone: (306) 425-5225 Phone: (306) 783-8707 Fax: (306) 425-5226 Fax: (306) 786-6978 Email: [email protected] Ms. Randy Goulden, Ms. Vinessa Currie, Marketing Manager Marketing Coordinator Email: [email protected] Box 786 MEADOW LAKE, SK S9X 1Y6 Ms. Colleen Bilokreli Phone: (306) 236-6211 Administrative/Membership Manager Fax: (306) 236-5116 Email: [email protected] Email: [email protected] SASKATCHEWAN SOUTH WEST WEST CENTRAL REGION OF SASKATCHEWAN TOURISM ASSOCIATION Ms. Darcee Baliski 450 Diefenbaker Drive Administrative/Membership Manager MOOSE JAW, SK S6J 1N2 Box 1120 Phone: (306) 693-1883 NORTH BATTLEFORD, SK S9A 3K2 Fax: (306) 693-1837 Phone: (306) 446-3600 Fax: (306) 446-3601 Ms. Kerri Martin, Email: [email protected] Marketing Manager Email: [email protected] Mr. Mark England, Marketing Manager Ms. Carol Bellefeuille 321 – 4th Avenue N Administrative/Membership Manager SASKATOON, SK S7K 2L9 Email: [email protected] Phone: (306) 374-2030 Fax: (306) 374-0579 Email: [email protected]

39 Tourism Business Development and Financing Guide

LIST OF CONTACTS

SOUTH EAST TOURISM REGION Nancy Rathgaber, 160 – 3rd Street NE Manager WEYBURN, SK S4H 0W2 Merchandise and Special Events Phone: (306) 842-3242 Phone: (306) 787-9844 Fax: (306) 842-4698 Email: [email protected]

Mr. Don Strelieff, Joe Chad, Office Manager Manager Email: [email protected] Sales and Corporate Development Phone: (306) 787-2825 Mr. Brendan Manz, Fax: (306) 798-7194 Marketing Coordinator Email: [email protected] Email: [email protected] TOURISM SASKATCHEWAN/SASKATCHEWAN TOURISM REGINA TOURISM EDUCATION COUNCIL Box 3355, Hwy. #1 East 321 – 4th Avenue N REGINA, SK S4P 3H1 SASKATOON, SK S7K 2L9 Phone: (306) 789-5099 Phone: (306) 933-5900 Fax: (306) 789-3171 Fax: (306) 933-6250 Email: [email protected] www.tourismregina.com Carol Lumb, Director Mr. Steve McLellan, STEC Executive Director Phone: (306) 933-5905 Email: [email protected] Email: [email protected]

TOURISM SASKATCHEWAN Ian McGilp, 1922 Park Street Manager Regina, SK S4N 7M4 Industry Development Branch Phone: (306) 787-9600 Phone: (306) 933-5746 Fax: (306) 787-0715 Email: [email protected]

Darryl McCallum, Bob Kadis, Director Sales Representative Industry Development Branch Sales and Corporate Development Phone: (306) 787-2313 Phone: (306) 933-5903 Email: [email protected] Email: [email protected]

Curt Koethler, Tourism Consultant Industry Development Branch Phone: (306) 787-8708 Email: [email protected]