Item No. 3(ii) Halifax Regional Council August 2, 2011 Committee of the Whole TO: Mayor Kelly and Members of Halifax Regional Council SUBMITTED BY: ___________________________________________________________ Richard Butts, Chief Administrative Officer __________________________________________________________ Mike Labrecque, Deputy Chief Administrative Officer, Operations DATE: July 18, 2011 SUBJECT: HRM Stadium Analysis – Phase 1 Final Report ORIGIN Regional Council meeting of February 8, 2011, Agenda Item No. 10.1.2 RECOMMENDATION It is recommended that Regional Council: 1. Approve in principle the recommended directions outlined in the Final Report – Phase 1 Stadium Analysis: Halifax Stadium – Business Plan (Attachment 2); 2. Direct staff to proceed to Phase 2 Stadium Analysis: Site Selection and Preliminary Design; and 3. Approve an increase to project CBX01363 in the amount of $275,000 (net HST included) for Phase 2, with funding from the Strategic Growth Reserve, Q126, as outlined in the Budget Implications section of this report. HRM Stadium Analysis Phase 1 Final Report - 2 - August 2, 2011 BACKGROUND Executive Summary On February 8, 2011, Regional Council directed staff to proceed with a process to determine whether or not there is viability for the development of a multi-use stadium in the municipality. The analysis would determine the business case for such a facility, along with an assessment of future opportunities, and comparisons of similar facilities. The potential multi-use facility would have a minimum seating capacity (including a mix of temporary and permanent seating) of 20,000 seats. Regional Council, also at that time, approved a citizen led Steering Committee to oversee and guide the project. The Steering Committee, populated with representatives as directed by Regional Council, has proceeded with their mandate and has submitted its reports and recommendations to Regional Council. This direction was provided to staff as a result of an opportunity to participate as one of the six Canadian Host Cities for the 2015 FIFA Women’s World Cup tournament. The Canadian Soccer Association has expressed its desire to host a coast to coast event, and Halifax requires a stadium in order to qualify as a Host City. Phase 1 Project Cost Regional Council approved a project budget of $100K for Phase 1 work. An RFP was issued and awarded to Sierra Planning and Development for a cost of $97k. The Province of Nova Scotia agreed to cost share the Phase 1 Analysis and provided a contribution of $33K. Consultation with Citizens Key stakeholder interviews and consultation were completed (17 in total), in addition to three public open house meetings, attended by a combined total of approximately 200 citizens. As well, over thirty sport and non-sport event groups were represented in meetings with the consulting team. All provided feedback related to the topic. Key Aspects of the Analysis Included in the Final Report Profile and Definition of a Regional Economic Engine Comparable Stadia in North America HRM Stadium Minimum Specifications Recreation Trends and Opportunities The Opportunities: The Sport and Non-Sport Event Market Establishing Principles to Guide Development Range of Facility Options Locational Criteria Assessment of Project Delivery Options Assessment of Stadium Operating Revenues and Expenses HRM Stadium Analysis Phase 1 Final Report - 3 - August 2, 2011 Risk Analysis Economic and Social Benefits Recommended Directions DISCUSSION Summary of Key Findings 1. Current consideration is for a mid-scale multi-use stadium which may be built to house a professional sporting franchise, and also allow for community use. 2. In Canada, there are 15 stadium facilities with seat counts of 10,000 or higher. Recent trends show the development of multi-use capacities beyond single usage for a professional team only. 3. No core professional sport franchise has been identified A professional sporting franchise in Football or Soccer has not been established in Halifax. 4. Support for new and additional facilities has been expressed by a number of sport groups and it is anticipated that, as sport participation continues to grow in the region, most groups will require additional facilities in the near to medium term. 5. Based on illustrative list of events (Exhibit 28), the average event days per year could be in the order of 50 event days per year. Almost all have some degree of spectator capacity however, some are very modest. Major ticketed events are limited – while a number exist annually, these events compete with the rest of Canada, and international locations. 6. A multi-use stadium of 10,000 – 20,000 seats does represent infrastructure to enable the municipality to compete for national and international events which have not historically been given consideration due to lack of hosting infrastructure. 7. Ownership of the proposed facility has been assumed to be municipal, while operations of the facility have been assumed to be contract management. This model is seen as providing the municipality with maximum control over program, access and pricing, while providing for some risk aversion as well. 8. Year-round utilization of the facility has been factored into the operating assumptions in the form of winterized cover for field play. This is seen as a significant revenue draw for the facility. 9. The facility is forecasted to operate with some form of government support. Steering Committee Recommendations and Next Steps The Stadium Analysis Steering Committee has recommended that Regional Council consider the advancement of the project to Phase 2 analysis. Phase 2 of the analysis will take place as follows: A site selection and preliminary design process will be initiated based on a series of criteria developed in Phase 1. These Phase 2 components are critical to the success of the analysis and will allow for a determination of capacity in the region to locate, design and construct a multi- use stadium facility in order to fulfill economic and community goals as identified in Phase 1. Phase 2 will unfold as an open discussion with citizens including a Request for Proposal (RFP) HRM Stadium Analysis Phase 1 Final Report - 4 - August 2, 2011 for potential land and development partnerships, and public opportunities for feedback and comment on design components. The analysis will provide Regional Council with a proposed site (s), facility design concepts, and estimated costs, Class C. If approved, Phase 2 will be undertaken from September through to December 2011. The estimated cost for Phase 2 is approximately $275K. A Phase 2 report will be presented to Council in December, 2011. While the eventual decision may very well be to NOT construct a stadium at this time, Regional Council would benefit from a better understanding of the size, scope, and more detailed costs of stadium options and their viability. It is staff’s opinion that proceeding with Phase 2 is a reasonable course of action. Regional Council may choose, after the conclusion of Phase 2, to consider the analysis complete and NOT proceed at this time to construct a multi-use stadium facility. Alternatively, Regional Council may, after the conclusion of Phase 2, direct staff to proceed to the Phase 3 Construction phase of the project. Phase 2 is essentially a study to better inform future decisions of Council. BUDGET IMPLICATIONS If the recommendations are approved, an RFP will be issued for this Phase 2 review with anticipated study period to end in November of 2011. Funds are currently available in Strategic Growth Reserve Q126 to fund this project. Any unused reserve funding from phases will carry forward to future phases, if subsequent phases are approved. The budget availability has been confirmed by Financial Services. Project CBX01363 – Stadium Cumulative Unspent Budget $ 4,626 Add: Transfer from Q126 $275,000 Balance $279,626 Reserve Account Q126 – Strategic Growth Reserve Projected available balance March 31, 2012 $3,146,425 Less: Phase 2 RFP Cost ($ 275,000) Projected available balance March 31, 2012 $2,871,425 Cost estimates for Phase 3 Construction will be in the Phase 2 Final Report, and will only be incurred should Council decide to proceed at that time. FINANCIAL MANAGEMENT POLICIES/BUSINESS PLAN This report complies with the Municipality’s Multi-Year Financial Strategy, the approved Operating budget, policies and procedures regarding withdrawals from the utilization of Operating and Capital reserves, as well as any relevant legislation. If approved, this will increase the withdrawals from Reserves with no net effect to Operating or Project budgets. HRM Stadium Analysis Phase 1 Final Report - 5 - August 2, 2011 COMMUNITY ENGAGEMENT The proposed Phase 2 analysis will include community and partner engagement. The attached RFP discusses the approach. ALTERNATIVES 1. Regional Council may choose not to proceed with the recommendations at this time. ATTACHMENTS 1. Reports Completed from 1986 to 2010 re Stadium 2. Final Report – Phase 1 Stadium Analysis: Halifax Stadium – Business Plan 3. Phase 1 Stadium Analysis: Halifax Stadium Business Plan 4. Phase 1 Stadium Analysis: Public Open House Summary ______________________________________________________________________________ A copy of this report can be obtained online at http://www.halifax.ca/council/agendasc/cagenda.html then choose the appropriate meeting date, or by contacting the Office of the Municipal Clerk at 490-4210, or Fax 490-4208. Report Prepared by: Betty Lou Killen Coordinator Client Services