2014 User Fees Rental Agreements and Strategic Ma

CITY OF HAMILTON PUBLIC WORKS DEPARMENT Corporate Assets & Strategic Planning Division

TO: Chair and Members Public Works Committee COMMITTEE DATE: August 14, 2014 SUBJECT/REPORT NO: 2014 User Fees, Rental Agreements and Strategic Marketing Plans Development for Tim Hortons Field (PW14091) (City Wide) WARD(S) AFFECTED: City Wide PREPARED BY: Ward Dilse Senior Project Manager, Programmes & Marketing (905) 546-2424, Extension 7503 SUBMITTED BY: Gerry Davis, CMA General Manager Public Works Department SIGNATURE:

RECOMMENDATION (a) That the 2014 User Fees for Tim Hortons Field contained in Appendix “A” attached to Report PW14091 be approved. (b) That the Mayor and City Clerk be authorized and directed to sign licence agreements for events between the following organizations and the City Hamilton for Tim Hortons Field contained in Appendix “B” to Report PW14091. i. Ontario Federation of School Athletic Associations, November 26 to 28, 2014; ii. Ontario University Athletics, October 31 to November 2, 2014; iii. Hamilton Hurricanes, September 27 and October 10, 2014; (c) That the General Manager of Public Works (or designate), be authorized and directed to sign future license agreements for events held at Tim Hortons Field. (d) That staff be directed to prepare a multi-year Strategic Marketing Plan for Tim Hortons Field to maximize use and revenue opportunities.

EXECUTIVE SUMMARY Tim Hortons Field is a state of the art venue that will be a multi-use sports, community and event facility offering a wealth of entertainment and community opportunities that will have far reaching benefits to the City. The Tiger-Cats are the primary (anchor) tenant of the Stadium and operate a professional football team in the Canadian Football League. The Tiger-Cats also have the exclusive rights for professional soccer with the purpose of having a professional soccer franchise commence playing in an established

OUR Vision: To be the best place in Canada to raise a child, promote innovation, engage citizens and provide diverse economic opportunities. OUR Mission: WE provide quality public service that contribute to a healthy, safe and prosperous community, in a sustainable manner. OUR Values: Accountability, Cost Consciousness, Equity, Excellence, Honesty, Innovation, Leadership, Respect and Teamwork SUBJECT: 2014 User Fees, Rental Agreements and Strategic Marketing Plans Development for Tim Hortons Field (PW14091) (City Wide) - Page 2 of 5

league by 2016. They also can choose up to four license event days annually between June 1 and November 30 as outlined in the Stadium License Agreement. All other programming will be managed by the City of Hamilton. Unlike Ivor Wynne Stadium, the proposed user fees reflect the marketplace, comparable facilities and address community sport programming requirements. Identified in the report are 2014 user fees for community sport programming. Currently, three events have been secured for Tim Hortons Field for the fall of 2014, which key terms and conditions are outlined in Appendix B. Additionally, a request to have the General Manager, Public Works be authorized and directed to sign future license agreements for events held at Tim Hortons Field. Additional user fees will be established for amateur sporting events, film shoots, photography, concerts, corporate gatherings, professional sports and charity events that will be forthcoming within the Strategic Marketing Plan. The Strategic Marketing Plan will identify the market segments, user fees for the segments and the opportunity for usage. In addition, the Strategic Marketing Plan will identify user fees and rental opportunities for the meeting rooms/spaces. Alternatives for Consideration - See Page 4

FINANCIAL - STAFFING - LEGAL IMPLICATIONS Financial: Tim Hortons Field in comparison to Ivor Wynne Stadium is a multi-purpose venue that provides greater opportunity for revenue generation. Tim Hortons Field will attract events; provide long-term tangible opportunities and economic impacts from users and spectators. The 2014 revenue projections for Tim Hortons Field are in part based on the user fees contained in this report. Staffing: There are no staffing implications associated with Report PW14091. Legal: License and rental agreements will be developed by Legal Services.

HISTORICAL BACKGROUND In January 2011, Council directed staff to conduct a full review of the feasibility and analysis of the current Ivor Wynne Stadium as the site for the construction of the new Stadium. The feasibility analysis was based on a complete demolition of the south and east stands and the complete rebuilding of a new 15,000 seat south Grandstand along with the renovation of the existing North Stands. In June 2011, it was determined that the renovations proposed to the North Stands was not possible. Senior Representatives from the City, Toronto 2015, Federal and Provincial Governments agreed at this time to build a new stadium. It was at this point the Stadium design changed to a north/south orientation.

The Stadium is a state of the art facility that can host international, national, provincial and community uses from sport to entertainment. It is multipurpose in design and provides long-term tangible opportunities and economic impacts. The Stadium is a year round facility serving multiple uses requiring a more labour intense operation. It requires a more skill workforce to manage the new systems, maintain the field and meet the extended operating hours. It is much more complex that the old stadium. It will also be the permanent facilities for our major tenant (Hamilton Tiger Cats) and a number of sports groups. One of the big reasons for Hamilton’s bidding on the Pan Am Games was the opportunity to renew its aging stadium. The new stadium allows Hamilton to pursue other events both leading up to and after the Games. Its multipurpose design provides for multiple purposes. The new stadium will attract events; provide long-term tangible opportunities and economic impacts from users and spectators. The new stadium also provides opportunities to address provincial, national and community uses from sport to entertainment. It can have the following impact: community renewal (community opportunities within the stadium), year round opportunities, economic and active living impacts, improved image and civic pride enhancements. In February 2014, Council approved the 20 Year License Agreement with the Hamilton Tiger-Cats Football Club for the use of the Stadium for Football Games and Practices.

POLICY IMPLICATIONS AND LEGISLATED REQUIREMENTS N/A

RELEVANT CONSULTATION Corporate Services Department: Finance, Administration & Revenue Generation Community & Emergency Services Department: Recreation Division - Sports Development Public Works Department: Pan Am Initiatives Office Local Sports Organizations User Groups Hamilton Minor Football Association Tourism and Culture Division - Sport Tourism John Elder & Associates Ron Joyce Stadium - McMaster University BMO Field - Toronto McMahon Stadium - Calgary P. Molson Stadium - Montreal Mosaic Stadium - Regina

ANALYSIS AND RATIONAL FOR RECOMMENDATION Community Sport Programming Tim Hortons Field will offer hourly field rentals for youth and adult users groups up to 1,100 hours annually. These non-spectator events will occur all season and it is anticipated that rentals will be the most frequent in the spring and fall when natural grass fields in the community are not playable or accessible. From mid-March until mid- May the majority of use will consist of youth, high school and adult soccer. In the fall, the primary community users will be minor, junior and high school football. Staff conducted a rental rate comparison of similar venues across Canada as well as local artificial turf fields within the community to determine an hourly rate of $120 + HST for adults & non-affiliated youth and $60 + HST for the youth affiliated rate. When lights are required the fee will be an additional $25 per hour for all user groups. In 2016 (first full year), the projected community use of Tim Hortons Field will range between 600-800 hours. If a professional soccer team plays in the Stadium in 2016 this will lower the number of hours available since fourteen to eighteen days will be removed from the inventory from March through September. To be considered community programming and qualify for the hourly rates all of the following criteria must be met: • Must be an amateur sport as defined by the Ministry of Tourism, Culture and Sport, Sport Recognition Policy, Definition of Sport • No spectator ticketing • Limited spectators (family & friends only) • City Hamilton can cancel booked events with a minimum 72-hour notice Market Research Stadium Location Adult Rate Youth Rate Lights BMO Field Toronto $275 $250 Included McMahon Stadium Calgary $108 $84 P. Molson Stadium Montreal $163 $163 Mosaic Stadium Regina $95 $62 Operations cost Ron Joyce Stadium Hamilton $120 $120 $25 per hour Ester Shriner Stadium Toronto $148 $117 Heritage Green Hamilton $107 $55 Ivor Wynne (2012) Hamilton $106 $53

ALTERNATIVES FOR CONSIDERATION Alternative A: Council could exercise its discretion and not approve the Community Sport Programming Rates. This may delay the opportunity for Community usage to begin once the Stadium is completed. Alternative B: Council could exercise its discretion and not approve the Key Terms and conditions of these three events. The result may be the loss of the events and the revenue associated with them.

ALIGNMENT TO THE 2012 - 2015 STRATEGIC PLAN Strategic Priority #2 Valued & Sustainable Services WE deliver high quality services that meet citizen needs and expectations, in a cost effective and responsible manner. Strategic Objective 2.1 Implement processes to improve services, leverage technology and validate cost effectiveness and efficiencies across the Corporation.

APPENDICES AND SCHEDULES ATTACHED Appendix A 2014 Proposed User Fees and Charges for Tim Hortons Field Appendix B(i) Key Terms and Conditions - Ontario Federation of School Athletic Associations Appendix B(ii) Key Terms and Conditions - Ontario University Athletics Appendix B(iii) Key Terms and Conditions - Hamilton Hurricanes