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Windsor Indoor Sports Facility Feasibility Study FINAL REPORT

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Windsor Indoor Sports Facility Feasibility Study FINAL REPORT CR630/2019-CR633/2019 - Item 10.2 - Appendix D Windsor Indoor Sports Facility Feasibility Study FINAL REPORT Submitted to: Ray Mensour The Corporation of the City of Windsor 400 City Hall Square, Suite 403 Windsor, ON N9A 7K6 September 3, 2019 TABLE OF CONTENTS ------------ Executive Summary Page 1 Chapter 1 SWOT Analysis Page 3 Chapter 2 Economic, Demographic, and Tourism Analysis Page 6 Chapter 3 Sports & Recreation Facility Industry Trends Page 14 Chapter 4 Local Sports Facility Supply and Demand Analysis Page 32 Chapter 5 Comparable & Competitive Sports Facility Analysis Page 44 Chapter 6 Sports Tournaments & Opportunity Analysis Page 55 Chapter 7 Hotel Market Analysis Page 64 Chapter 8 Budgets & Projections Page 69 Chapter 9 Recommendations Page 80 Appendix Notice to the Reader EXECUTIVE SUMMARY AND PROJECT PROFILE Hunden Strategic Partners (HSP) was retained by the Corporation of the City of Windsor (City) to determine the need and opportunity for an indoor sports and recreation facility. The proposed facility would be attached to the WFCU Centre and primarily serve turf-oriented uses with some consideration of non-turf uses. HSP was also requested to investigate the addition of an outdoor turf field with a seasonal dome. The primary aim of the facility is to increase local usage with the additional potential to host major events. HSP met with or interviewed sport user groups from the local area, provincial-level organizations and national governing bodies to determine the local opportunity as well as the potential to host tournaments. The available facilities for most sports in Windsor (and most larger facilities across Ontario), as well as the current and likely future demand, were analyzed and profiled as part of the HSP study. The WFCU Centre currently provides playing surfaces for a number of indoor year-round court and ice-related sports. Outdoor sports, however, are limited or prohibited from playing during cold months unless an indoor turf field is provided. Soccer, the largest relevant team sport by participation in Windsor, is challenged by the fact that there are a limited number of opportunities to utilize the existing indoor soccer fields at Central Park and Novelletto Rosati Sports and Recreation complex as they currently operate near maximum capacity. The lack of an indoor FIFA-sized field limits the season and opportunity for soccer and other outdoor sports. Recommendations and Cost Estimates Through the comprehensive analyses, HSP determined that there is an opportunity for an indoor FIFA-sized fieldhouse in Windsor. However, a partnership would be required to support capital costs and enter into a long- term lease. The projected capital cost of the expansion is $58.7 million, and the net operating income is at a projected loss of roughly $525 thousand per year. Recommendation: HSP recommends that an indoor FIFA-sized turf field facility be developed if there is a partner willing to support capital costs and enter into a long-term lease. Additionally, an outdoor FIFA-sized turf field could be developed with a partner. This facility could host certain tournaments and other non-turf sports. The support amenities may include: § Elevated walking track § 1,500 spectator seats § Eight team changing/locker rooms (divisible) § Fitness, storage rooms § 800 parking stalls § Convert one ice pad in Windsor to a year-round non-ice surface (with 1,500 spectator seats) WFCU Centre Indoor Sports Facility Expansion Feasibility Study Page 2 Summary HSP believes there is not enough market demand to support the development of the indoor multipurpose facility given the supply, unless there is a partnership. Both the FIFA-sized field and the converted ice rink will accommodate the needs of the local sports community. WFCU Centre Indoor Sports Facility Expansion Feasibility Study Page 3 TABLE OF CONTENTS ------------ Executive Summary Page 1 Chapter 1 SWOT Analysis Page 4 Chapter 2 Economic, Demographic, and Tourism Analysis Page 7 Chapter 3 Sports & Recreation Facility Industry Trends Page 14 Chapter 4 Local Sports Facility Supply and Demand Analysis Page 32 Chapter 5 Comparable & Competitive Sports Facility Analysis Page 44 Chapter 6 Sports Tournaments & Opportunity Analysis Page 55 Chapter 7 Hotel Market Analysis Page 64 Chapter 8 Budgets & Projections Page 69 Chapter 9 Recommendations Page 80 Appendix Notice to the Reader WFCU Centre Indoor Sports Facility Expansion Feasibility Study Page 4 SWOT ANALYSIS A SWOT (Strengths, Weaknesses, Opportunities and Threats) Analysis was conducted to identify critical factors that will impact the Project’s overall performance and opportunity. The analysis also suggests implications for the sizing and quality of the project given the current environment. Strengths and weaknesses are current factors impacting the potential project as well as items inherent in the project or market, while opportunities and threats are potential and external factors impacting the success of the Project. This section also provides recommendations on the size and quality of the Project based on HSP’s review of the market and other factors. In addition, HSP’s experience with similar projects and how they have performed played a role in our recommendations and projections. Strengths § Demand for Year-Round Field Use. Several turf sports, especially soccer, are robust enough to fill an indoor facility during the five months of colder weather when outdoor fields are not a ready option. By allowing such year-round activity, the community will be supporting a large cohort of youth and adult participants who can benefit themselves, their teams and their community via this opportunity. § Strong Local and Provincial Demand. Local and provincial organizations regularly search for high-quality venues, as well as venues with large enough capacities to host their local, regional and provincial tournaments. These groups are busy enough to rent an indoor facility throughout the season, during the week and weekends, for practices and games. § Tourism Reputation. Windsor has already established itself as a sports tourism destination for many outdoor and indoor sports. With the development of the proposed indoor sports facility, Windsor has the opportunity to increase and attract sports tourism events to the area. Weaknesses § Seasonal Use. The usage and financials for an indoor facility suffer in the warmer months when the facility will be in less demand. Opportunities § Flexibility Despite Weather or Field Conditions. The facility would provide an overflow field during warm months when existing outdoor fields are booked, as well as a backup field during stormy weather. In addition, if an outdoor field is resting or being overseeded, then the indoor facility can take pressure off of the need to use all outdoor fields during warm weather. § Development of Tournaments and Leagues. Developing partnerships with local teams or leagues, provincial organizations, national and international organizations will increase the ability to develop, manage and conduct several regional tournaments per year that will bring participants and spectators from around the province and potentially the United States. § Tournaments and Tourism. A new indoor facility in Windsor has the opportunity to be one of the highest-quality facilities in the region, with championship-caliber facilities and amenities. With additional investment, the surface could be converted for use by volleyball, badminton and other non-turf sports for tournaments. WFCU Centre Indoor Sports Facility Expansion Feasibility Study Page 5 § Ability to Team with Potential City of Tecumseh Indoor Sports Facility. The proposed indoor sports facility in the City of Tecumseh suggests that the market is lacking quality indoor turf space. While the project could potentially compete with any development in Windsor, the ability to attract larger events to the area by utilizing both facilities, if both are developed, is present. § Recent Population Growth. Windsor has been experiencing growth over the past several years, after a decade of population stagnation. This is driven in part by immigration. This growing diversity of the population is driving the demand for certain sports, like soccer and cricket. Threats § Competition from Potential City of Tecumseh Indoor Sports Facility. The City of Tecumseh conducted a market and financial feasibility study on a potential indoor sports facility similar to the proposed Windsor facility. If built first, the development of an indoor sports facility in Tecumseh will likely accommodate much of the local demand and need for a similar facility in Windsor. § Existing Facilities. Windsor is already served by two indoor sports field facilities with Novelletto and Central Park. Many teams and organizations have established relationships with these current facilities. Adding an additional indoor facility has the possibility to drive rental rates down within the market, negatively affecting the supplier. WFCU Centre Indoor Sports Facility Expansion Feasibility Study Page 6 TABLE OF CONTENTS ------------ Executive Summary Page 1 Chapter 1 SWOT Analysis Page 4 Chapter 2 Economic, Demographic, and Tourism Analysis Page 7 Chapter 3 Sports & Recreation Facility Industry Trends Page 14 Chapter 4 Local Sports Facility Supply and Demand Analysis Page 32 Chapter 5 Comparable & Competitive Sports Facility Analysis Page 44 Chapter 6 Sports Tournaments & Opportunity Analysis Page 55 Chapter 7 Hotel Market Analysis Page 64 Chapter 8 Budgets & Projections Page 69 Chapter
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