Nanaimo Ocean Discovery Centre
Business Plan – Executive Report
PREPARED BY: Nanaimo Deep Discovery Association www.NDDA.ca
CONTACT: Lorne Hildebrand EMAIL: [email protected]
Follow Us on FACEBOOK: @NanaimoOceanDiscoveryCentre
Version 1.6 NDDA Review May 9, 2017 Table of Contents
Executive Summary ...... 4 The Ocean Discovery Centre Vision ...... 8 Project History ...... 8 A Vision for the Centre...... 10 Beneficial Impact ...... 12 Facility Design ...... 13 Architectural Concept...... 14 Project Timeline...... 18 Organizational Stage...... 20 Legal Structure...... 20 Members...... 21 Feasibility Stage ...... 22 Initial Feasibility Study ...... 22 Funding and Fund-Raising Plans ...... 24 Funding Sources...... 25 Location ...... 25 Why Nanaimo? ...... 28 Attractions Determination...... 29 Project Capital Costs ...... 31 Human Resources Plan ...... 32 Phase One – Pre-Operating Stage...... 32 Phase Two – Construction Stage...... 32 Phase Three – Operations Stage...... 32 Operations Plan ...... 33 Pre-Operating Budget...... 33 Operating Financial Projections...... 34 Revenue Assumptions...... 35 Economic Impact ...... 37 The Economic Value of Tourism ...... 37 The Economic Ripple...... 40 Tax Revenues and Investments ...... 41
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Demographic Target ...... 42 Pre-Start-up Stage...... 45 Start-up Stage ...... 46 Operating Stage ...... 47 Appendix A - About Us...... 48 Board of Directors. Members and Concept Team ...... 48 Association Advisors ...... 50
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Executive Summary
Strategically located within walking distance to some of Nanaimo’s downtown venues including the Cruise Ship Terminal, the Port Theatre, the Casino and the Nanaimo Conference Centre; the Ocean Discovery Centre will be a world class attraction of epic proportion. This unique venue will establish Nanaimo as one of the top ten ‘must see – must visit’ cities in North America. Despite a multitude of ocean science and aquarium theme parks around the world, an often overlooked connection with our ocean environment remains. The simple reason is these venues are aged in not only construction, but in their technological and single dimensional approach to ocean discovery and cultural heritage. The ambiance of these parks are dated, stagnant in their ability to appeal to today’s learning minds, young or old. Unlike anything else in the world, the Ocean Discovery Centre will be a dynamic complex combining; OUR VISION ! Canada’s first Deep Water Technology Marine Display,
! A unique Coastal First Nation Marine Centre, and “An inspiring
! An interactive Marine Ecology Centre. collection of The story of ocean discovery and the greater history of interactive displays, underwater exploration is a terrific tale to be told in this robotics, location. The early and contemporary First Nation Marine Culture, which is an integral part of Nanaimo and submersibles and Vancouver Island, will be fused into the architecture and moving theatre exhibits in the complex, ensuring the rich traditions of Canadian indigenous people are preserved. A experiences contemporary, community based educational display showcasing the featuring regional marine life from the Salish Sea will celebrate the unique aspects of Nanaimo and its history, the present, waterfront in an exciting, accessible, and interactive and revealing the way. future of ocean The facilities will be contained in a 3,200 square meter ecology & building, designed for sustainability and within a local west coast vernacular. As a community asset and sustainable education facility, the architecture, building systems and technologies.” exhibitions would all contribute to the greater story of Nanaimo and the surrounding waters.
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The Deep Sea Underwater Marine Display, First Nation’s Marine Culture Centre and interactive marine ecology display will be an exciting tourist attraction and education facility boosting the Nanaimo economy, adding vitality to the heart of the community and the Nanaimo Waterfront. This marine/ocean experience will attract local, regional and global visitors to an exciting range of displays and activities, some static, some “virtual”, and some “interactive”. It will reflect on the history, engage with the present, and look to the future.
The health, social, economic and environmental benefits of a facility such as the Ocean Discovery Centre are well documented through evidence-based research1. The benefits reach all facets of life, from economic development to environmental sustainability. Recreation, arts, culture and outdoor/open space are essential to personal health. The Ocean Discovery Centre will help build a strong, safe and inclusive community in a part of Nanaimo that for decades has been rendered industrial. It will contribute to the economic development of the waterfront, Islands Trust, the downtown business core and the city itself whilst simultaneously promoting environmental sustainability and providing invaluable educational opportunities. Connected to the rest of the city using interpretive trails, a diversity of access points, recreation facilities, programs and community cultural and educational events the Centre will strengthen the Nanaimo communities through social interaction, volunteerism, civic pride and aesthetics.
1 The National Benefits Hub, an online collection of evidence-based research supporting the benefits statements for recreation. http://benefitshub.ca (accessed June 2011)
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The Ocean Discovery Centre will help foster safer communities through collaborative planning, providing world class family oriented recreational facilities, programs and services – historically these approaches to property development have proven they reduce criminal activity. By incorporating key strategies into the operating model that foster community leadership, social inclusion, economic development and environmental sustainability, the beneficial impact to Nanaimo and other Vancouver Island communities is immeasurable. The proposed location occupies a footprint adjacent to a length of Nanaimo’s waterfront that is currently economically, environmentally and functionally unutilized. The Ocean Discovery Centre will not only help revitalize the downtown core and business community, but also provide an appealing and attractive waterscape for Nanaimo residents and tourists arriving from both sea and land. This venue will appeal to a broad target market and will draw visitors of all ages, all cultures and all socio-economic sectors. This will be the catalyst that will provide economic value and purpose, stimulating increased cruise ship traffic and conference centre bookings. Best of all - it will accomplish all this through the celebration of our proud aboriginal heritage. When considering all of the benefits of the world-class facility proposed by this group, NDDA is an ideal ‘waterfront stakeholder’ and the Ocean Discovery Centre aligns perfectly within the criteria as tendered by the City in their long term plan for waterfront development. Subsequently the proposed site for this venue will elevate not only the aesthetics and functionality of Nanaimo waterfront, but also provide a catalyst in the physical development as well as enhancing the adjacent property valuation. In addition the actual property required to build this Centre would occupy a small portion of the study area yet significantly contribute to the overall efforts in completing the City’s Port Drive Waterfront Master Plan. From a land use perspective the Centre offers a very high return in economic and ecologic worth per square foot than any other land development option. The Ocean Discovery Centre, targeted to open in 2020, is a Nanaimo Deep Discovery Association initiative, fusing investments from various strategic partners and capitalizing on a rare and powerful potential to make Nanaimo and Vancouver Island a better place to live and visit. With the addition of the Ocean Discovery Centre, Nanaimo can expect to see a substantial increase of visitors from an expanding radius of potential target markets, specifically Europe and Asia. The addition of a world-class educational facility like the Ocean Discovery Centre will also draw more visitors from the United States and other provinces of Canada year round. Collaborations with community partners such as the Nanaimo Port Authority are well underway as this project will facilitate other various economic drivers vital to this community. An example of this is an opportunity to capture a greater share of the Cruise Ship tourism industry where the Ocean Discovery Centre is expected to increase annual landings to as many as 30 or more a year boosting that portion of the local tourist economy by $5 million dollars each year!
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The ongoing economic impacts of the Ocean Discovery Centre are predicted to generate wage earnings amounting to over $14.4 million in the first five years of operations. Furthermore, the initial construction would generate an estimated $171 million throughout the local economy, around $54 million in tourism revenue alone during the start up period and over $12 million annually after that! Additionally it is anticipated the Centre will provide the provincial and federal governments an overall return in tax dollars of more then $28 million during those first 5 years and generate an additional $4.1 million per year once the facility is established.
Nanaimo is considered an urban oasis surrounded by a landscape of peaks, valleys and forested wilderness. The result is the best of both worlds as cosmopolitan pursuits are balanced by a vast range of recreational opportunities. All the urbane pleasures of a modestly big city – dining, shopping, museums, festivals and art galleries included – can be enjoyed here. Despite all of these wonderful amenities and lush environment, Nanaimo still does not maintain an international presence when it comes to renown travel destinations. The Ocean Discovery Centre is a ‘tipping point project’ for Nanaimo giving this city an international existence. Its unique features and extraordinary exhibits give it an iconic presence that will put Nanaimo at center stage on a global scale.
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The Ocean Discovery Centre Vision
Project History British Columbia and specifically Vancouver Island boasts some of the best coastal marine resources in the world for both tourism and commercial industry; from fishing to water transport. Legendary ocean explorer Jacques Cousteau described the inside strait as the best cold water diving environment in the world naming it the ‘Emerald Sea’ for its clear green hue and rich population of diverse marine life. Vancouver Island itself is unique in its massive diversity of marine life and one of the only places in the world to have federally protected underwater parks. To a large extent this fragile yet prolific ecosystem co-exists with a variety of different types of industries including commercial fishing, marine transport and seafood harvesting and farming. Beginning in the late 1980’s a small group of dive industry stakeholders formed two associations dedicated to marketing this incredible environment to the rest of the world. Together the Nanaimo Dive Industry (NDA) and British Columbia Dive Tourism Association (BCDTA) partnered with a number of strategic municipal and provincial community-building organizations to take Nanaimo and Coastal BC tourism to another level. As a result of this momentum projects like the Artificial Reef program2 saw great success with the sinking of more than a half dozen large decommissioned ships, including large Navy and Merchant Marine vessels, off BC Coastal Waters; three in Nanaimo alone. This project helped establish Nanaimo internationally as a Photo: www.artificialreefsocietybc.ca premiere dive destination drawing thousands of divers and boosting the local diving businesses in addition to other industries like hotels, restaurants and other Island tourism venues. In 2000 Nanaimo hosted the ‘Sea the Future’ exposition, the first conference of its kind to promote and celebrate the growing technologies in ocean exploration. The three day event was an overwhelming success and yet another indicator Nanaimo was ideally positioned and capable of developing into a mecca for ocean discovery. For decades the Pacific North West, and specifically the rugged Canadian west coast has been pioneering territory with respect to ocean exploration on many different levels;
2 The Artificial Reef Society of British Columbia (ARSBC) is a registered non-profit society dedicated to creating environmentally and economically sustainable 'artificial reefs' for the protection and enhancement of sensitive marine habitats, while also providing interesting destinations for the enjoyment of scuba divers.
8 | Page from recreational activity and tourism to global industry. In recognition of this undiscovered world of natural resource and sustenance, a growing contingent of invested philanthropists began to identify the extraordinary wealth of history and culture woven within this ecology, the inherent value it holds and most importantly, the story that needs to be told. Weighing the phenomenal success previous endeavours have had in showcasing our coastal subsea wonders, this group of visionaries set out on a quest to take the story to another level. However until recently the catalyst to facilitate an infrastructure capable of illustrating such a remarkable tale, did not exist. Yes, the community has explored projects of this nature in the past yet the timing and the specific product considered at that time, fell short of encompassing the spirit and iconic scope a project of this design deserved. Then remarkable happened. In April of 2014, an opportunity to exclusively partner with some the world’s leading pioneers in underwater exploration was presented to our group. It was then the team developed the initial concept of an interactive ‘Deep-Sea Ocean Centre’ and presented this vision at the Nanaimo Economic Development Corporations (NEDC) Annual General Meeting. In February of 2015, the NEDC sponsored a presentation of the ‘Nanaimo Deep Discovery Centre’ at the Port Theatre for an invited audience of 140, including members of Nanaimo City Council, Nanaimo Tourism and Nanaimo Port Authority. The interest and response was overwhelming. By April of 2016 the ‘Nanaimo Deep Discovery Association’ (NDDA) was formally registered under the Societies Act of BC. The NDDA was formed by a group of Nanaimo citizens with a view towards the establishment of an “Ocean Discovery Centre” in Nanaimo. One month later the newly established Nanaimo Deep Discovery Association officially commenced their efforts to establish a focused vision and planning model to support the establishment of a ‘Deep Discovery Centre’ in Nanaimo. Within two months the NDDA attracted the attention of business leaders with introductory presentations looking to improve destination tourism and establish an iconic Ocean Discovery destination for Nanaimo. In October of 2016 the NDDA conducted a formal a presentation to Nanaimo City Council requesting support in principle for the establishment of the Ocean Discovery Centre on Nanaimo’s waterfront. The Council in return, directed city staff to meet with the NDDA to obtain further details and report back to council.
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With the momentum of the vision created by the NDDA, key groups and corporate sponsors have allied with the development committee including international ocean technology corporations, the Nanaimo Economic Development Corporation and Nanaimo Tourism, and local First Nation communities. The Ocean Discovery Centre project is now beyond the conceptual development stage. The Association has received generous “in-kind” support from the Nanaimo business community along with early stage financial support. Financial models and feasibility studies have been pursued and evidence this project will succeed from both an economic and community perspective, has been substantial3.
A Vision for the Centre On June 27, 2016 the newly established Nanaimo Deep Discovery Association met with the objectives of developing a blueprint for capturing their vision. This session was focused on visioning and planning efforts to support the establishment of a Nanaimo ‘Deep Discovery Centre’. Discussion included: " Exploration of, and agreement upon a shared vision for the Centre; and " Assessment of attractions and exhibits for inclusion in the Centre.
3 Deep Ocean Discovery Centre Feasibility Study, Prepared for NEDC Review March 20, 2015. MNP LLP #220 - 645 Fort Street Victoria, BC V8W 1G2
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The visioning discussion focused on developing a shared understanding of what the Nanaimo Deep Discovery Association is working towards in its development of a Centre. The discussion on visioning was critical to the association, as it would help to ensure the members were on the same page and working towards the same goal. As the association moves forward, the vision will be not only an end-state to work toward, but also a point of reference, providing a valuable benchmark to ensure the association is consistent in its messaging and development efforts around the project. A number of clear themes emerged from the visioning discussion. These included: " A focus on the experiential aspects of the centre; " An opportunity for environmental and marine-focused education; and " A growth opportunity for tourism in the region.
The vision statement below was developed as a result of the visioning discussion. An inspiring collection of interactive displays, robotics, submersibles and moving theatre experiences (similar to IMAX) showcasing the history, the present, and revealing the future of ocean ecology & sustainable technologies.
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Beneficial Impact Following the discussion around the vision for the Centre, the committee focus shifted to identify the benefits such a Centre would bring to Nanaimo and the surrounding region. The group identified the following benefits: Regional Promotion " Promotional driver for the city, " Means of bringing in other attractions, " Provides additional draw for local hotels, resorts and the Nanaimo Conference Centre, " Contributes to making Nanaimo a great place to live, " Increasing attractions for cruise ship visitors (encouraging visitors to stay in Nanaimo once they arrive), " Attracting tourism and visitors from the mainland, US Pacific Northwest and all of North America and of course Asia. Environmental Sustainability " Education about Marine environment, " Positively impacting the public’s perception and understanding of the environment, " Connecting with the ocean. Economic " A significant financial driver for the city, " Showcase technology developed in Nanaimo and surrounding area, " Attracting businesses and developers from other sectors, " Diversification and revitalization of the downtown core and harbour area, " Attracting in new tourism jobs, " Creating economic opportunities within a “village”. Community Engagement " Engage people on an ongoing basis (through attractions, exhibits, facility, etc.), " Adds to Nanaimo’s sense of pride and self-worth,` " Provides social inclusion and promotes cultural unity and diversity, " Fosters inclusive and vibrant communities whilst educating the public. Infrastructure Development " In-line with the promotion of Nanaimo as “The Harbour City”, " A community amenity on the waterfront, " An extension of the waterfront walkway, " Encourages development of transportation to the harbour and perhaps the catalyst that will support the return of a fast passenger ferry to Vancouver.
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The existing venues in Nanaimo such as the Conference Centre, Port Theatre and downtown core of hotels, restaurants and businesses are currently supported primarily by local residents and seasonal visitors. Having a world-class attraction such as the Ocean Discovery Centre provides a catalyst (an appealing draw) for tourism agents booking larger groups and corporations looking for locations for business conferences, and in many cases where these booking agents would not have considered Nanaimo (see Economic Impact).
Facility Design The Ocean Discovery Centre is a community-gathering place telling the story of the evolution of underwater technologies, exploration and ecological evolution that has been developed in British Columbia and how it has changed the world. It will be a special place to gather, to explore, and learn more about our Oceans. A truly innovative entertaining and educational experience where you can choose from a variety a virtual tours exploring deep sea marine life, shipwrecks, marine life, thermal vents and other deep sea dives – all without getting wet.
Using modern technologies this world-class facility will present a history of First Nations use and connection to their Oceans, plus, one of a kind and one of the most expansive collections of past and present day diving and deep-sea technology as it relates to First Nations.
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The Ocean Discovery Centre will be an entertaining and educational destination for local residents and tourists alike where each visit is guaranteed to provide a new and ultimate discovery of what is under the sea!
Architectural Concept The diversity of opportunities represented by the type of construct defined within this plan provide a variety of reasons to visit such an attraction with a high likelihood of sustainability and ongoing appeal over time.
In addition to these features, building in the capacity to be a multi-purpose community facility affords other important sources of ongoing revenue. The more community utilization that occurs, the more traffic and vitality the Centre will have generally. Based on MNP`s research, the inclusion of a restaurant, coffee shop, outdoor patio, gift shop and lecture theatre as well as education and research space are critical revenue generators that work to support the Centre’s purpose while providing the type of supports visitors expect from this type of attraction.
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Considering almost 75% of our world is covered in water and the average ocean depth is equivalent to roughly 7 CN Towers laid out end to end (3,830 meters or 12,566 feet), even with the latest science and technology has to offer, we’re really only beginning to peek into these depths. The pioneering innovations such as those created by Phil Nuytten and Terry Knight are allowing us to get there.
Exhibiting the deep sea is unique and challenging. At 1000 feet below the surface there is approximately 30 times the atmospheric pressure we normally experience and there is little to no light at that depth. Given that environment, most exhibitors rely on audio visual displays, interactive exhibits and lifelike models of angler fish, sharks and whale skeletons to convey a deep sea experience based on our limited insight. Exhibits tend to highlight the inhospitable and unknown nature of the deep, drawing attention to alien-like creatures and the dark mystery of the unexplored. The concept envisioned by the NDDA is in keeping with the desired exhibit qualities of being a place of excitement, edification and interactivity and collectively, our exhibit contributors have an impressive collection of audio visual material. One of the NDDA’s key principles behind a ‘Deep Discovery’ concept was to create a highly interactive experience with exhilarating components utilising audio visual materials such as a heart- pounding virtual shark tank experience, blockbuster movie content (e.g. Abyss and Titanic) and hands-on ability to try out deep sea exploration equipment.
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Subsequent to a Planning Session held in June of 2016, conceptual renderings were produced by Checkwitch Poiron Architects. These architectural renderings were the first step towards illustrating the founding member’s vision, specifically that this facility will be a unique, educational, marine marine/ocean experience.
Sub Surface - Experience Exhibits
Visitors descend down from the main hall to the sub surface experience exhibits. The circuit will house a series of dynamic exhibits, interactive experiences and educational programming, showcasing First Nations Connections, Deep Sea Technology and Marine Ecology. The core exhibits offer guests a unique experience of our relationship to the deep sea both past, present and future. Attractions on this level could include: " An Underwater Plexiglas viewing tube where visitors can watch marine life displays, active ROV and Newtsuit operations, " A ‘Walk into the Ocean’ experience, " An Undersea garden and ecological interpretive display, " An ROV Experience Theatre Room with 360 degree cameras broadcasting a real time guided tour exploring the shipwrecks of Nanaimo. Displays within these exhibits will be dynamic, changing regularly in concert with the various themes ongoing in other parts of the complex. Part of the unique design of the sub-surface exhibits will be a collection of deep sea diving and ocean exploration
16 | Page technology. Unlike anywhere else in the world, this Centre will not only offer the most expansive and valued collection of deep sea diving technology, but also the opportunity for its visitors to observe and participate in the operation of these remarkable inventions. In a rare opportunity, these incredible technological resources are available from one of the world’s most respected pioneers in ocean research. R. T. "Phil" Nuytten is a Canadian entrepreneur, deep-ocean explorer, scientist, inventor of the Newtsuit, and founder of Nuytco Research Ltd. He has pioneered designs related to diving equipment, and has worked with NASA for more than 25 years on applications related undersea and space technologies. Today, his equipment is used by a wide range of organizations, including the National Geographic Society and NASA.
Ground Level - Main Hall
Visitors enter the facility from either the land or waterfront entrances to find the various amenities within. Guests may purchase tickets, shop, have a bite to eat, attend a private event, or enjoy one of the many free and accessible public areas. The main hall will feature a prominent display of the historic dentalium4 harvest connecting guests to the subsurface experiences and creating a unique sense of place.
4 Dentalium is a large genus of tooth shells or tusk shells, marine scaphopod molluscs in the family Dentaliidae. The genus contains 50 described species and about 50 extinct species.
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Upper Level - Education & Administration The upper level will house complimentary spaces and services that support the overall use of the facility. This may include a 200-300 seat presentation centre, workshop/lab spaces, administration offices and meeting rooms. This area will also accommodate potential partners of the facility such as deep sea research and technology development.
Project Timeline One of the NDDA’s primary objectives is sustaining momentum throughout the execution and rollout of the business model created by the association and its corporate sponsors. The rare and unique opportunities and resources currently offered exclusively to this community, are done so on the contingent that the project continues to move forward at a functional pace. At present the City of Nanaimo’s administrative leadership and city planners are positively positioned to adopt the NDDA’s project. The proposed sites are primed for development and overdue for gentrification as residents of Nanaimo have long expressed their desire to see this part of the city developed to its full potential. By offering attractive lease hold development strategies, the NDDA aims at securing a mortgage free long term lease for the proposed site by the end of 2017.
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A significant contributor to the success of this project relies on concurrent support at the municipal, provincial and federal levels. As such the NDDA is applying to our provincial and federal crown partners with the objective of securing investments at each of those levels by the end of 2017 as well. A capital campaign drive will be initiated and the final portion of the project’s financing is, for the most part secured in spirit, contingent on government contributions and the City of Nanaimo’s approval of the site lease. Subsequent to the above corporate approval, construction is planned to commence in 2018 or early 2019 with an anticipated completion in 2020.
Opera ng Construc on Stage(2020) Stage(2019) Pre-Opera ng Stage(Fall 2018) Complete Capital Campaign - Market Iden fy Research and Secure (2017-2018) Site (2017)
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Organizational Stage
Recognizing the potential to capture unique and invaluable resources, the NDDA set out to establish a business infrastructure that would best accommodate its sponsors. Such a model would also continue to allow the centre to operate with maximum efficiency and financial advantage as it grew. In order to establish a ‘best fit’ legal structure, a number of operating models were explored and assessed by a committee of established business managers.
Legal Structure Currently registered under the Societies Act, the NDDA is a legal organization. Steps are under way to create a charitable organization with tax receipting capabilities. The income tax benefits of setting up the structure for the Ocean Discovery Centre as a charitable public foundation for income tax purposes in comparison to setting up the structure as a non-profit organization (“NPO”) allow the NDDA to pursue stronger partnerships. In all cases, registered charities are generally required to be set up for a number of charitable purposes. The NDDA has incorporated two priorities within its business model: # advancement of education (such as colleges, universities, and research institutes); # purposes beneficial to the community (such as animal shelters, libraries, volunteer fire departments). If the Centre was to be set up as a registered charity, its charity status would likely be established based on the above purposes, with more of an emphasis on the community’s interests.
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Members Since the inception of the project, a growing contingent of support has rallied around the NDDA and the development team. In early 2017 a website was published illustrating not only the conceptual design of the project, but details of the socio-economic value and worth a project of this nature brings to the Nanaimo community. To measure this support the NDDA has solicited formal support from community stake holders, the people of Nanaimo, and residents and visitors of Vancouver Island with a membership drive. Through the website and a general information campaign, the NDDA has received hundreds of emails of support.
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Feasibility Stage
Initial Feasibility Study The Nanaimo Economic Development Corporation (NEDC) engaged MNP to conduct a feasibility study exploring the concept of a Deep Sea Centre based on the original vision imagined by Terry Knight and Phil Nuytten just over a decade ago. MNP is a leading national accounting, tax and business consulting firm in Canada. Ultimately this will be the first of two studies used to assist in the speed, flow and direction of the Ocean Discovery Centre capital campaign, and the development of the centres business model and strategies (reference section Funding and Fund-Raising). As part of the research for this feasibility study, MNP requested input from a number of organizations and community stakeholders. It was evident from the onset that this # Aboriginal Tourism BC concept has significant potential to go # Australian Museum # Bruce Museum of Arts and Science beyond the typical attributes of exhibits (Greenwich) around the world and indeed, has the # Castlemain Group potential to be a “must see” destination. # Checkwitch Poiron Architects # City of Nanaimo In March of 2015 MNP completed their study # Deep Bay Marine Field Station and presented it to the NEDC. Based on the # Destination BC data MNP examined for tourism traffic, local # Fisheries and Oceans Canada demographics and similar destinations, the # Innovation Island # Maritime Museum Nanaimo district has the population and # Nanaimo Conference Centre visitor numbers required to sustain an # Nanaimo Economic Development Corporation operation such as the Ocean Discovery # Nanaimo Museum · Nanaimo Port Authority Centre. When the concept of adding # Ns3 (Science and Sustainability Society) submarine rides is introduced as part of the # Natural History Museum (London) financial picture, it appears as though the # Phil Nuytten and Nuytco Research Ltd. # Queensland Museum and Science Centre Centre could be profitable annually. # Royal BC Museum Financial estimates were based on moderate # Shaw Ocean Discovery Centre admission fees and rates from local # Snuneymuxw First Nation comparators. # Tennessee Aquarium (Chattanooga) # Terry Knight Positive markers of future success are # Tourism Nanaimo evident such as the anticipated development # Tourism Vancouver Island of another two hotels in Nanaimo along with # Ucluelet Aquarium the potential cultural development by the # Underwater Harvesters Association # Vancouver Aquarium Snuneymuxw First Nation and connections # Vancouver Island Military Museum to Asian tour operators. These and other # Vancouver Island University potential opportunities combine to create a healthy long-term vision for an attraction
22 | Page such as the Deep Sea Ocean Discovery Centre to anchor within. The most likely operational model would be a registered charity structure governed by a public and/or private foundation. This model adheres to federal tax definitions such as operating a facility for the purposes of advancement of education and benefit to the community. It also offers the most advantageous structure financially. Current trends for public buildings indicate the best chance of success comes from having multiple uses. A multipurpose building with features such as a restaurant, outdoor patio, gift shop, exhibit space and lecture theatre for example can be used by a variety of community stakeholders. In the case of the Ocean Discovery Centre, initial thinking is inclusive all of these features as well as a First Nations pavilion, education and research facilities and submarine rides. These inclusions create even further possibilities for community connections and successful differentiation. Having the broadest possible utilisation and diversity of interests represented at a Discovery Centre will increase the likelihood of driving more cruise ship traffic, overnight visitation and general economic benefit to the area. Based on MNP`s research, there is a high likelihood of operational sustainability for the Deep Ocean Discovery Centre. This opinion is based on a mixture of stakeholder interviews, demographics and tourism traffic and industry comparators. Although the scope of MNP’s research did not span local industry partners, given the industry altering innovations in science, research and technology born from this geographic area, their inclusion would clearly be an asset as this concept begins to take shape. The enthusiasm for pursuing the concept of the Centre was apparent across all regional contacts the NDDA engaged. Through the personal involvement of Phil Nuytten and Terry Knight, the opportunity to access to the kind of equipment, exhibit materials and personal and professional networks required to successfully operate such as facility is available. In addition, participation from the Snuneymuxw and coastal First Nations would bring a very direct and unique connection to the cultural context of the region. Local and regional options for partnering opportunities related to education and research programs are also available. The recent successes of the Deep Bay Marine Field Station and the Ucluelet Aquarium demonstrate the market appetite to engage with such facilities. In addition to these two facilities, an aquarium type facility has just recently been approved and funded for the Port Alberni area. Though these facilities have similarities, the Ocean Discovery Centre envisioned for Nanaimo would be larger and include more facets. The shared benefit and community enhancement that would occur from the development of the Ocean Discovery Centre would be varied and significant. These benefits would include education, research, jobs, skills and training opportunities as well as positive direct and indirect economic impacts. The Ocean Discovery Centre
23 | Page would help Nanaimo with their goal of enhancing destination development by introducing a new iconic attraction with the ability to garner recognition internationally.
Funding and Fund-Raising Plans Currently efforts to launch a strategical and balanced capital campaign is under design. Initial financial perspectives on the economic potential of a project of this nature was obtained subsequent to an intensive feasibility study conducted by MNP. This first study was an entry level research campaign to determine the viability of an Ocean Sciences style venue in Nanaimo. Recognizing the quantifiable value of a world class exhibition hall, marine technologies exhibit and cultural theme park, the NDDA has since committed to a second more in-depth feasibility study for the community portion of the capital campaign, and a marketing research project to ensure reasonable and reachable goals are identified, and met. While the NDDA will seek provincial and federal funding for the project, we recognize the need and importance of the community having a direct financial stake in this project. The current financial model has identified a goal of no less than 10% of the capital costs assumed and carried by local investment and buy-in through a community fundraising campaign. This will incorporate a comprehensive fundraising strategy involving local businesses, organizations, community foundations and individuals. The intention of this model is to ensure that all costs incurred at this stage will be covered by revenue generated by the facility operations and the funding campaign which can be broken down into two categories: 1. Capital Campaign Drive 2. Operational Funding (covered later in this document) The NDDA will tender contracts for qualified professionals who will be instrumental in both conceptual and ground breaking efforts in addition to establishing clear goals and timelines. This will facilitate a structuring process necessary to establish a strong volunteer committee essential in ensuring the project meets its deadlines, and appropriately pace the fund raising efforts. To foster all levels of financial support, incentives to drive networking partnerships, marketing campaigns and personal legacy will be offered. Naming opportunities at both the facility and pavilion level will be offered and is expected to appeal to both corporate and individual clients. The business model will allow these various levels of investment to benefit from our charitable status providing tax credits. Although structured to capitalize on the various tiers of funding resources available, the campaign will be designed to incorporate an aggressive and rewarding smaller scaled annual donor program.
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Ultimately, this campaign will not only raise the necessary funds to successfully meet our objectives, but it will also raise the awareness and excitement in the project. The rollout of this campaign will take full advantage of national and international media and marketing exposure.
Funding Sources These sources are intended to identify preliminary desirable funding partners: " Federal Government $35,000,000 " Provincial Government $10,000,000 " Private and Publics Investments $ 5,000,000 " Municipal Requirements - ‘Land lease only – no capital cash requirements’
Location Although the NDDA has conducted preliminary assessments into identifying a suitable location, the exact site has yet to be identified. It was evident to the project planners the ultimate location would need to satisfy certain prerequisites, including; " A central location within Vancouver Island, and no further than a two hour drive or ferry ride from any of the larger metropolitan areas on the Island or lower mainland (Nanaimo, Courtney, Campbell River, Victoria, Duncan, Vancouver and the LMD ‘Big 5’), " A waterfront area adjacent to the ocean itself and ideally an extension of the harbour front public walkway, " Close to the downtown business core, " In close proximity to the conference centre, shopping centre, downtown hotels, casino and where the Centre could essentially exist as an extension to the overall amenities provided by the Nanaimo city core, " Close to float plane and ferry terminals, " Adjacent to or in near proximity of the cruise ship terminal, " In an area currently in need of revitalization " In an area where it may provide improved land value and further induce land development and investment opportunities for the city.
As a result of identifying these qualifying requisites, the NDDA has identified a potential footprint in an area defined by the City of Nanaimo as ‘Future Study Area 2’ and the
25 | Page expanded parcel of industrial waterfront identified by the City as Port Drive5. In September of 2010 as part of the City’s ‘Official Community Plan (OCP)’, a ‘South End Neighbourhood Plan’ was completed6. This area has long been assessed by city planners and is an ideal location for the Ocean Discovery Centre. In addition the actual property required would occupy a limited sector of the study area yet significantly contribute to the overall efforts in completing the City’s Port Drive Waterfront Master Plan. From a land use value the Centre offers the highest return in economic and ecologic worth per square foot than any other land development option.
Essentially the City of Nanaimo’s objectives and development strategies for the Assembly Wharf, Cruise Ship Terminal and CP Lands are consistent and in-line with the Ocean Discovery Centre project: “Port Drive Waterfront Master Plan In October 2015, the City of Nanaimo began a Master Plan process for 1 Port Drive, a parcel of municipal land and water located along the southern Nanaimo waterfront. The City recently completed Phase 2 of the project, 'Issues and Opportunities,' during which we held four workshops with tenants, adjacent landowners and
5 Nanaimo Downtown Plan, Reference Document: City of Nanaimo Official Community Plan Policy Section of Reference Document adopted as part of the City of Nanaimo Official Community Plan on 2002-May-2002 in Bylaw No. 6000.038. 6 South Downtown Waterfront Initiative · FRAMING THE FUTURE · Technical Report · December 2013. City of Nanaimo.
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other stakeholders to identify common interests and goals for the site. We are now in Phase 3 of the project, 'Options Development,' to develop several options for future land use. Once a preferred option has been circulated to stakeholders for feedback, the public will be invited to an Open House to view design concepts and provide feedback. The Port Drive Waterfront Master Plan will set the framework for more detailed future planning steps for this important waterfront area, including future land use, transportation, servicing, open space, trails and environmental protection, within the City lands.7” When considering all of the benefits of a world-class facility proposed by this group, NDDA is an ideal ‘waterfront stakeholder’ fitting the criteria as tendered by the City in their long term plan. “The South End Neighbourhood Plan and the proposed Study Area boundaries coincide along Esplanade. Throughout this Neighbourhood Plan, the South Downtown Waterfront area is frequently mentioned, shown in the following summarized points. As part of a plan for the Assembly Wharf and CP Lands, the City will initiate discussions with both the Nanaimo Port Authority and the Snuneymuxw First Nation to jointly design a new waterfront park, waterfront walkway, and public boat launch area within the future plan area just north of the Reserve #1 boundary. # Policy 14 - The feasibility of extending a waterfront walk along the entire length of the neighbourhood, with particular focus along the existing rail access as a dual-use rail/pedestrian corridor, will be explored with the waterfront stakeholders. # 6.1.1 Pedestrian Connectivity - Key Strategies: Develop a continuous Waterfront Trail in partnership with waterfront stakeholders. # 6.1.6 Neighbourhood Edges - Key Strategies: Integrate neighbourhood services and potential waterfront developments with the Snuneymuxw Reserve #1. Esplanade Neighbourhood Edges: Encourage a mix of natural and industrial materials that complement the industrial context and waterfront location.” The proposed sites are primed for development and overdue for development as the residents of Nanaimo have long expressed their desire to see this part of the city developed to its full potential. By offering attractive lease hold development strategies, the NDDA aims at securing a mortgage free long term lease for the proposed site by the end of 2017.
7 City of Nanaimo Community Planning Department, World Wide Web Published Site as of March 20, 2017: http://www.nanaimo.ca/EN/main/departments/Community-Planning/port-drive-waterfront-master-plan.html.
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Why Nanaimo? The City of Nanaimo Economic Development Office subsequent to an analytic review of collected data, produced a series of ‘profiles’ as a service to companies and organizations that require detailed information for the Nanaimo area. Within this report8 Economic Development Office purports, in part; Significant Growth in Business Community
‘In the last five years Nanaimo has undergone a major transformation, with strong growth in most sectors of the economy. Growth in part is driven by population increase; in the last census Nanaimo acquired 5,692 net new citizens, this represents a 7.8% increase since the previous census. Nanaimo has a diversified economy of more than 5400 businesses. Some of Nanaimo's largest sectors by business license holders include construction, retail, government & education, knowledge-based companies, tourism, arts & culture, professional, scientific and technical sectors. Nanaimo's central location has helped the city develop as an important retail, service, and transportation centre for central and northern Vancouver Island. Nanaimo serves a trade area of over 350,000 people.’
Significant Growth in Tourism Travel
‘Tourism is an important economic generator for the Nanaimo area. In addition to revenues generated in recreation, travel, retail, restaurant and accommodation industries, the economic benefits of tourism are widely distributed throughout a network of businesses that support these industries with goods and services. Tourists are drawn to Vancouver Island's natural beauty and open spaces and enjoy a variety of recreational activities, access to cultural amenities, and affordable accommodation.
October 2010 business license data from the City of Nanaimo indicates that there were 314 businesses in the accommodation and food service sectors in the City of Nanaimo, accounting for 5.34% of all businesses.
The accommodation and food service sector is the third largest employment sector in Nanaimo, accounting for 9% of the total labour market, providing 3,455 jobs (2006 census). This sector has seen job grown of 9.5% between 2001 and 2006.’
8 Tourism Profile – Economic Development Office of Nanaimo. 2010
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Identifies Nanaimo as Transportation Hub
‘Nanaimo is the transportation connector for central Vancouver Island. The city has two major ferry terminals which transported more than 5 million passengers and 1.9 million vehicles between Nanaimo and Vancouver in 2008. Nanaimo had 172,088 seaplane passengers in 2008 and the Nanaimo airport had 153,851 passengers. A highway that traverses the Island runs through the city and an inland highway runs from Victoria to Campbell River. The Nanaimo Airport (YCD) property is situated on approximately 500 acres south of Nanaimo and easily accessible. The primary catchment area includes a population of nearly 260,000 and serves on average – 312,000 passengers annually. The airport is adjacent to the Island Highway approximately 15 minutes south of Nanaimo, an excellent position to meet the growing needs of local communities. It is a modern air passenger facility supporting a broad range of services and amenities.’ A Place to do Business
‘The Vancouver Island Conference Centre (VICC) was built as part of the City’s plan to revitalize downtown. The VICC has 38,000 sq. ft. of flexible convention and trade show space. It is centrally located and easily accessible. State of the art technology has been incorporated including full wireless access, digital way- finding and global broadcast capabilities. The VICC can accommodate meetings, conferences and events for up to 1,300 people. Visit www.viconferencecentre.com for more information. In addition to the conference centre’s facilities, delegates and event attendees can access the adjacent 800 seat Port Theatre which is fully equipped for any presentation. The new Nanaimo Museum is located one level below the main function spaces and provides event organizers and attendees a unique venue for receptions and dinners.’
Attractions Determination Despite a number of pavilions with continually changing exhibits and dynamic displays, the overall ambiance presented throughout the Centre will be aired with cultural, attractive displays depicting the rich heritage of our indigenous peoples. The art and science will blend to enhance each visitor’s experience. In essence, the entire complex itself both inside and out will be a visually appealing attraction. As the facility develops the Centre’s team of exhibit curators and advisory committee will begin the implementation of various attractions. Some of these attractions are already under design including:
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" Pisces Submersible Sphere Entry " First Nations Art Exhibit and Carving Shop " Subsea Photo Gallery " Touch Tank Aquariums and Series of Educational Interpretive Cairns " Canada’s Participation in Diving History Exhibits (with large screen videos) " Phil Nuytten Historical Museum of Diving Technology " Interactive Deep Worker Submarine Simulator " Remotely Operated Vehicle (ROV) Exhibit " Fly an ROV experience (Shipwreck Inspection) " Fly an ROV experience (Kids Tank) " Oceans Canada Presentations/Exhibits " Virtual Reality Submarine Ride (Nanaimo Artificial Reef dive feature) " Virtual Reality Shark Cage Thrill Attraction " Small Theatre for Guest Speaker and/or major video/film presentations (partner with Port Theatre) " Soar Over the Ocean Realm Moving Theatre (similar to the ‘Soar Over California’ and ‘Soar Over Canada’ productions)
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Project Capital Costs With respect to pre-construction costs related to the building there are three design stages listed in the information provided. The total for these pre-construction stages is projected to be $3.128 Million, the majority allocated to preparing drawing for construction (working drawings). This may change of course depending on the final scope of the project.
Figure 1 – Capital Building Budget Projection
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Human Resources Plan The NDDA anticipates three phases of development as the design of the Ocean Discovery Centre becomes reality. Each phase will see execution utilizing an effective team of staffing resources, both paid and volunteer:
Phase One – Pre-Operating Stage Despite its infancy and conceptual format, the rollout of this stage will be an involved and multi-faceted effort. It will rely on the vital experience and diverse skill-sets of the existing board, all of whom function exclusively in a volunteer capacity. These contributions have been and will continue to provide an invaluable and immeasurable investment to the overall evolution and success of the project. However as both capital and marketing campaigns rely heavily on the volunteering efforts of hundreds of individuals, there is a necessity to employ a Volunteer/Fund- Raising Coordinator. It is anticipated that this position will be a full-time commitment. A support person to assist and liaison between the Board and volunteers, and manage the logistical aspects of the Pre-Operating Stage will also be essential. An Administrative Assistance will serve throughout Stages One and Two as a paid part-time capacity to fulfill these responsibilities.
Phase Two – Construction Stage As the project moves beyond the conceptual stage and construction begins, staffing and resources will expand accordingly. Volunteering efforts in fund-raising will continue throughout this and future stages of the project, however, many of these roles will expand to include the frontline labours amidst the development of the physical exhibits. Full-time positions for both a General Manager and a Marketing Director have been built into the overall HR timeline. As construction continues, the General Manager role will begin to design the blueprint that outlines the necessary operations after the launch date. Concurrently a Marketing Department will be required to ensure a traffic flow of visitors through the doors begins and carries on beyond opening day.
Phase Three – Operations Stage In addition to a large team of volunteers, the centre will function day to day under the operations of an anticipated staff of approximately 20 part and full time employees. Like many museums, cultural centres, theme parks and /aquarium exhibits, the backbone of operations at the Ocean Discovery Centre will be conducted primarily by volunteers. The volunteer program infuse a sense of pride, purpose, ownership and involvement between the people of Nanaimo and the centre itself. The General Manager and a Marketing Director will continue to function, however will do so beyond the preparation stage and fuse operations with the Administrative
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Assistant, a position that will now expand into a full-time career position. In the days leading up to and beyond the opening of the centre, personnel will staff support service departments including Food Services (5 positions), Maintenance (2 positions), Janitorial (2 positions), Displays (1 position), Attractions (2 positions), Admissions (4 positions), Security (1-2 positions) and Accounting (1 position). In addition these departments will operate under a management team including the General Manager. Through aggressive recruiting, an ‘Ambassador Program’ of approximately 100 individuals providing four or more hours a week will provide an equivalent of ten full-time employees.
Operations Plan In order to accurately capture the financial requirements, the Operations Plan was developed to consider the individual capital costs involved for both the start-up phase and regular operations phase. The Pre-Operating Phase incurs expenditures unique to developing the foundation of the centre whilst the costs associated with the Operating Phase are predominantly labour and utilities. In many ways the budgeting plan is similar to the fuel consumption of a large commercial aircraft during the various stages of its flight. At take-off the engines will burn the most fuel and are least efficient until the aircraft reaches altitude and a cruising speed of maximum efficiency. In order to accurately capture the cost of operations, a snap shot of each phase is calculated independently.
Pre-Operating Budget A budget for the pre-operation phase was developed in consultation with leading industry experts and incorporated a comparative analysis of a diversity of other similar venues (see Figure 2). Prior to opening day the pre-operation phase incurs expenses under the following financial envelopes; " Wages - $220,000 " Marketing – $140,000 " Administration - $240,000 " Building Operations – $180,000 " Other - $20,000
The NDDA also built a 20% contingency into the proposed capital budget despite what is believed to be a conservative estimation of capital costs. Included in this budget is the estimated start-up costs over a two year period $800,000.
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The capital campaign, exclusive of any funding generated at either the provincial or federal levels, is targeted to cover this cost projection.
Figure 2 – Pre-Operating Budget
Operating Financial Projections Subsequent to a successful start-up campaign and operating with an effective and profitable business model in place, conservative projections indicate a positive economic forecast for the project. As would be expected in the start-up years, the Centre will draw heavier expenses to establish momentum in its marketing drive in addition to staff training, the development of exhibit pavilions and other costs associated to the initial launch.
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To ensure a confident and resilient start-up in operations, the capital campaign has included as part of the overall goals of the fund raising efforts, a budget envelope to help subsidize supplementary expenses anticipated in years one and two. This will relieve pressure on the initial revenue drive and allow the marketing team to develop a deep rooted international network of tourism partners ensuring a growing traffic of visitors. Comparative analysis with similar venues offering less dynamic products, and considering the existing tourism market and potential local clientele, operating projections further indicate the Centre will function as a profitable and self-sustaining business.
Revenue Assumptions The first year is a start-up year therefore revenue is assumed to be 50% of anticipated annual revenue generated in years two through five. Note that the anticipated revenue is based upon the MNP Feasibility Study presented to the NEDC in 2015.
Figure 3 – Projected Cash Flow Statement
From this study and in a preliminary assessment of potential revenue streams, the NDDA has determined a five year profit projection (see figure 3). These projections are based on the following assumptions;
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" Admission revenue - average admission price of $22 with 70,000 annual one day visitors, " Groups and programs include visits from large groups including schools, tours etc. (600 groups averaging $300 per group), " Memberships are based on annual admittance of $300 per year for 800 members, " Grants Sponsorships and donations include naming rights, Corporate Contributions and government contributions, " Retail sales are based on an average spend of $8.40 per person based on a total of 100,000 visitors, " Sundry and Interest income includes all other sources of income to be established, " Property taxes are presumed to be zero.
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Economic Impact
Economic impact is a measure of the spending and employment associated with a sector of the economy, a specific project, or a change in government policy or regulation. The three major components of economic impact are classified as direct, indirect, and induced impacts. The Ocean Discovery Centre will generate important contributions to both the local and provincial economy by providing direct and indirect employment opportunities in the construction, tourism and service industries. Some Key Economic Benefits # Major job creator, # Creates a demand for skilled labour, # Generates Tax Revenue, # Generates new avenues of revenue in the tourism and hospitability industry not to mention boosting existing sources, # Redirects economic stream back into the community, # Facilitates a better share of tourism revenue for Nanaimo businesses, # Provides economic security for Nanaimo businesses and diversifies the local economy.
The Economic Value of Tourism There is no question tourism spawns a diversity of financial wealth for Vancouver Island and British Columbia. Tourism and related industries that rely on tourism generate billions of dollars in business income and wage earnings. The direct spending by non- residents alone positively impacts local businesses ensuring profitability and employment growth. The revenue brought into the community is then circulated and re- invested in the economy through indirect spending; this is commonly known as the ‘multiplier effect’. The establishment of a venue like the Ocean Discovery Centre is estimated to boost wage earnings and revenue streams for tourism, construction and hospitability industries in the city of Nanaimo alone by a factor of at least 2.5. Tourism Vancouver Island has identified that the economic impact tourism has is unparalleled with respect to the return value each spent dollar has9. “Tourism is the only industry with a positive net flow of funds from wealthier to poorer regions and from urban to rural areas. The majority of money spent is imported from other geographical regions and is new to the host community.”
9 Tourism Vancouver Island. World Wide Web publication ‘Real Numbers, Real Impact’ 2017. http://valueoftourism.ca/economics-of-tourism/real-numbers-real-impact/
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The economic diversification tourism provides means security for local businesses, especially for natural resource based industries that are experiencing a decline in product demand and vulnerable to national and international market instabilities. “Decreasing jobs and struggling local businesses have resulted in residents being forced to leave their communities in search of financial security. These communities are exploring alternative economic opportunities, often identifying tourism as an industry that can play a significant role in diversification. Tourism helps make vulnerable local economies less reliant on single traditional base industries by building a more diverse economic base, supporting growth in other sectors such as transport, retailing, construction and agriculture, and by generating more development opportunities for small business to meet increasing demands for goods and services.” The economic return tourism represents has proven “…even in difficult economic times, a strong tourism campaign can create major shifts in a community’s image, drive new business, create jobs and generate additional tax and revenue sources for governments facing economic challenges.”
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Economic Impact by the Numbers The impact tourism alone has on the Vancouver Island economy is overwhelming contributing over $1.7 billion. The multiplier effect has resulted in generating over $13.5 billion in 2012 and an astounding $304 million in room revenues for the Island and coastal communities and almost $1.5 billion for British Columbia10.
In British Columbia tourism is the largest employer of workers aged 15-24 and quite often the first opportunity for youth to not only land their first job, but also gain invaluable experience in their career development.
In 2012 the provincial tourism industry employed 127,300 people and paid $4.3 billion in wages and salaries, on average $34,000 per worker with almost 18,000 tourism-related businesses across the province employing 260,000-plus workers. That’s 10.8% of British Columbia’s total labour force or 1 out of every 15 workers! Globally, tourism is
10 Tourism Vancouver Island. ‘Real Numbers, Real Impact: Economic Impact, By The Numbers’ 2017
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Tourism Vancouver Island calculates there are 5 to 6 million domestic tourists worldwide. Parts of Vancouver Island that have built an infrastructure to attract this market, have established their community as a desirable destination and are commanding a significant market share of these travelers. Nanaimo is on the precipice of taking advantage of these numbers as the iconic impact the Ocean Discovery Centre will have will push Nanaimo to the forefront as a tourist destination.
Cruise Ship Revenue
The Nanaimo Port Authority estimates an average of approximately $200,00011 in spin- off revenue generated for each cruise ship that lands in Nanaimo. Last year Vancouver welcomed approximately 830,000 passengers on 228 calls, significant when you factor that the Vancouver cruise ship industry stimulates more than $2 million in economic activity for each ship that calls at Canada Place12. In 2016 only seven cruise ships visited Nanaimo and another four are expected this year, a remarkably small percentage of the hundreds that pass each season along the inside strait13. Currently the primary draw for these ships to make port in Nanaimo likely relies on the locally scaled downtown business core, harbour front and occasional events such as the Bath Tub Festival. The Nanaimo Port Authority has identified that an internationally scaled venue such as the Ocean Discovery Centre would increase cruise ship calls to at least 30 or more a year infusing a minimum of $6 million into the local economy, that’s before its expanding reinvestment.
The Economic Ripple Direct economic impact measures the employment directly associated with the Ocean Discovery Centre project. This includes employment from operations within the facility as well as spin-off support services directly involved in the Centre’s operations such as transportation, food services, export, marketing and other tourism related trade. Total impacts are calculated by adding together the direct operations impacts, indirect impacts, and induced impacts. Direct expenditures are made by tourists, travelers, private and government agencies providing goods and services and tourism generated exports or tourism investments in a specific area. Indirect expenditures covers successive rounds of inter-business transactions resulting
11 The Port of Vancouver draws 10 times more tourism revenue per vessel – likely due to the stronger tourism infrastructure in Vancouver providing greater opportunities for ship passengers to spend – the Ocean Discovery Centre address this by seeding those opportunities. 12 Port of Vancouver Media Release, April 4, 2016. http://www.portvancouver.com/news-and-media/news/a- strong-2016-cruise-season-marks-canada-places-30th-anniversary/ 13 Cruise Line Agencies of Alaska, Cruise Ship Calendar for 2017
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from direct spending. Induced expenditures is the increased consumer spending resulting from additional personal income generated by direct expenditure. The revenue generated by tourist spending multiplies as it passes through various sections of the economy. Including indirect and induced multiplier impacts, the ongoing economic impacts of the Ocean Discovery Centre are predicted to generate wage earnings amounting to over $14.4 million in the first five years of operations. Furthermore, the initial construction would generate an estimated $171 million throughout the local economy, around $54 million in tourism revenue alone during the start up period and over $12 million annually after that!14
Projected Total Economic Impact After Year 515
TYPE OF IMPACT EMPLOYMENT TAX REVENUE16 CONSTRUCTION TOURISM17 (MILLIONS) (MILLIONS) (MILLIONS) (MILLIONS) DIRECT IMPACTS $ 4.117 $ 8.068 $ 48.940 $ 15.400 INDIRECT/ INDUCED $ 10.292 $ 20.170 $ 122.350 $ 38.500 TOTAL IMPACTS $ 14.410 $ 28.238 $ 171.290 $ 53.899
Projected Annual Total Ongoing Economic Impacts After Year 5
TYPE OF IMPACT EMPLOYMENT TAX REVENUE TOURISM (MILLIONS) (MILLIONS) (MILLIONS) DIRECT IMPACTS $ 0.850 $ 1.171 $ 3.481 INDIRECT/ INDUCED $ 2.125 $ 2.927 $ 8.703 TOTAL IMPACTS $ 2.975 $ 4.098 $ 12.184
Tax Revenues and Investments The Ocean Discovery Centre will also be a significant generator of taxation revenues to all levels of government. It is projected the Centre with provide the provincial and federal governments an overall return in tax dollars of $28.24 million after only 5 years and generate on additional $4.1 million per year once the facility is established
14 Based on the predicted multiplier impact and projected revenue and investment streams at year five of operations in addition of initial capital start up estimates – references; Figures 1-3. 15 Includes Capital Building Budget Projections (Fig 1), Pre-Operating Expenditures (Fig 2) and projected total revenue and expenditure streams through the first five start up years (Fig 3). 16 Tax revenue based on incorporating basic 2016 income taxation rates of 22% and applicable federal and provincial taxes on direct consumer goods, services and imports and includes taxes generated from construction and development periods. 17 Simple calculation based on annual total revenues generated by the Centre. Does not include directly related public, private and government agencies providing goods and services and tourism generated exports in conjunction with the Centre.
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(reference Tables above). Again the economic impact with respect to taxation revenue collected by businesses benefiting from the Centre will drive these figures even higher. As mentioned earlier the investment in tourism creates a payback to the economy and the government many times over. Statistically a positive return is often realized within the start-up phase and certainly continues for many years. The tax revenues generated are essential in funding important societal necessities such as education and health across the region and to every community and positively impact tourism destinations by directing capital towards activities such as cultural exhibitions, festivals and other tourist events.
Demographic Target In 2003, a survey18 was conducted in partnership with the Tourism Association of Vancouver Island and Vancouver Island University identifying a variety of information about individuals visiting Vancouver Island. The Visitor Study provided a seasonal snapshot (Fall, Winter, Summer, Spring) broken into geographical areas of Vancouver Island.
OVERSEAS Europe, Asia and Abroad
USA Pacific North West
NATIONAL Canada
REGIONAL Vancouver Island & BC
LOCAL Nanaimo /Central Island
18 Tourism Labour Market Research Project, Tourism Association of Vancouver Island, Department of Recreation & Tourism Management, Malaspina University-College, Summer Visitor Survey Results, September 2003, Fall Visitor Survey Results, Fall 2003, Winter Survey Results, May 2003.
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Currently majority of visitors to Vancouver Island are local or regional travelers coming from other communities on the Island and British Columbia. The visiting traffic is often dictated by seasonal considerations resulting in peaks and valleys with respect revenue streams. The primary season for visitors from the United States is during the summer months and the number of US visitors drops considerably during the fall and winter months. With the addition of the Ocean Discovery Centre, Nanaimo will expect to see a substantial increase of visitors from an expanding radius of potential target markets, specifically Europe and Asia. The addition of a world-class educational facility like the Ocean Discovery Centre will also draw more visitors from the United States and other provinces of Canada throughout all four seasons – this means a bolstered year round and consistent flow of tourism traffic.
The Ocean Discovery Centre will appeal to wide range of travellers: " Local and Regional Residents as well as National and International Visitors of all age groups " School and University Students " Cultural Explorers " Free Spirits " Authentic Experience Seekers " Aspiring Escapists " Adventurers
In addition to local hotels and motels, the Centre also provides a venue for many of the Vancouver Island ‘destination’ resorts, spa resorts, marinas, camp sites, RV Parks and vacation rentals to market as part of their ‘reasons to stay’ and ‘local attractions’; they in essence become a partner in the projects overall marketing strategy.
Larger Vancouver Island Vacation Resorts Who Benefit " Resort on the Lake – Nanaimo " The Haven – Gabriola Island " Mermaid Cove Resort – Nanaimo " Two-Coves Resort – Nanaimo " Inn of the Sea Resort – Nanaimo " Yellow Point Lodge Resort – Nanaimo " Tigh-Na-Mara Resort and Spa – Nanoose
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" Sunrise Ridge Waterfront Resort – Parksville " Pacific Shores Resort and Spa – Parksville " Surfside RV Resort – Parksville " Beach Acres Resort – Parksville " Ocean Sands Resort – Parksville " Fairwinds Marina and Golf Resort (currently under development) - Nanoose " The Beach Club Resort – Parksville " Kingfisher Oeanside Resort and Spa – Courtney " Mineral Springs Resort – Salt Spring Island " Green Acres Resort – Salt Spring Island " Bear Mountain Gold Resort and Spa – Langford " Brentwood Bay Resort and Spa – Victoria
And hundreds of west coast resorts and hotels; ocean-ecological themed lodgings whose clientele are the type of individuals that would find the Ocean Discovery Centre an absolute must ‘stop-and-see’ attraction on their journey to the rugged west side of the Island including; " Pacific Sands Beach Resort - Tofino " Wickaninnish Inn Resort and Spa – Tofino " Black Rock Oceanfront Resort – Ucluelet " Terrace Beach Resort – Ucluelet " Way Point Resort – Ucluelet " Clayquot Wilderness Resort – Clayquot To name only a few….
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Pre-Start-up Stage
Once financial commitments from the provincial and federal sectors are secured, a site is determined and agreements with the City of Nanaimo for a long term leasehold are finalized, the NDDA will move forward with the Pre-Start-Up Stage of the project. Specific details and a formalized business plan will be completed in conjunction with community partners and the projects stakeholders. This stage will address the following considerations: " Funding Sources " Formal Building Design and Plans " Land Acquisition " Tendering of Attraction Acquisition " Tendering of Building Construction
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Start-up Stage
The NDDA anticipates construction to begin early 2019. Tendering of attractions and the roll-out of an aggressive marketing plan will begin prior to ground breaking efforts. The detailed and strategically designed agenda covering this phase will be identified in a subsequent addendum to this Business Plan. This stage will address the following considerations: " Building Construction " Acquisition of Attractions " Marketing Plan Implementation " Human Resources Plan Implementation " Internal Control System Development " Accounting System Development
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Operating Stage
Both Administrative and Operational Manuals are currently under design and will identify definitive objectives and include policies and strategies relevant to the overall business model. As this phase is a dynamic process the business plan will take into consideration a living document format and include best practice applications in addition to all the appropriate review processes.
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Appendix A - About Us
Board of Directors. Members and Concept Team From its inception the Ocean Discovery Centre has been guided by a team of seasoned and successful business entrepreneurs, philanthropists who have shared a common vision. Each Director brings his or her own unique perspective and skill set to the project. Together their immeasurable contributions and commitment have established the NDDA and the Ocean Discovery Centre as viable economic commodities for the City of Nanaimo. Lorne Hildebrand – NDDA President " Executive Director of EDGEWOOD " National Director of the EGDGEWOOD HEALTH NETWORK. " Active Scuba Diver and Key Volunteer in Nanaimo’s Artificial Reef Programs " Past Board member of the Nanaimo Community Foundation.
Tim Tessier – NDDA Vice-President " Realtor " Past Corporate Business Consultant " Director – Nanaimo Association for Community Living " Past Federal Candidate for Nanaimo Ladysmith
Terry Knight – NDDA Secretary/Treasurer " Co-Founder & CEO of Inuktun Services Ltd., Nanaimo B.C. " Former Founding Board Member – Mid-Island Science, Technology, and Innovation Council (MISTIC) (now Innovation Island) " Former Board Member – Pacific Offshore Energy Association (POEA) (Now Ocean Industries B.C.): " Past Executive Committee Member – Robotics & Remote Systems Division (RRSD) Member " Past Exhibits Chair – ANS RRSD Topical Meeting (Seattle – 1999)
Doug DeProy " International Hydrodynamics 1968-1971 (developers of the Pisces Submersibles) " NAUI instructor 1971 – 1998 (NAUI – National Association Underwater Instructors) " President NAUI 1981 – 1983 " Owner operator Skeena Diving 1976 – 1978 " Owner operator Rimpac Divers 1979 – 1981 " Partner operator Kootenay Soft Drinks 1982 – 1987 " Area manager Gray Beverages 1987 – 1992 " Partner Aviara Sales 1993 – 2014
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Dave Mannix – Nanaimo " Director (2016) Keith Brown " Keith Brown Associates Ltd. Land Planning Development Consultants (Both public and private sectors)
Garth Busch – Retired " B. Comm, CPA,CA. " Former Regional Managing for MNP Vancouver Island
Rebecca Kirk " Founder – MakerSpace Nanaimo 2012 – Current Leadership Team " Founding Chair – Planning Design Development Nanaimo 2009 – Current Board Member " Past CEO and Executive Director of Not for Profits
Phil Stiller " President – Intraworks I.T. Management " Chair – Innovation Island Technology Association " Vice President – Vancouver Island Crisis Society
Ben Checkwitch – Architect AIBC, CPHD " Principal & Founding Partner of Checkwitch Poiron Architects Inc (Nanaimo/Vancouver) " Projects : the Nanaimo Cruise Ship Terminal Building, St. Paul’s Anglican Church, Current expansion of the Nanaimo Airport
David Poiron – Architect AIBC MRAIC " Principal & Founding Partner of Checkwitch Poiron Architects Inc (Nanaimo/Vancouver) " Projects : the Nanaimo Cruise Ship Terminal Building, St. Paul’s Anglican Church, Current expansion of the Nanaimo Airport
Mike Herold – P.ENG., STRUCT.ENG., M.I. STRUCT. E., LEED " 1994 – Present Structural Engineer, President Herold Engineering Limited " 1980 – 1994 Structural Engineer, Partner Duncan & Associates Engineering " 1974 – 1980 Structural Engineer, BC Public Works and Bridge Branch " Past Chair – Nanaimo Travellers Lodge Dementia Care Facility " Board Member – Nanaimo Aboriginal Centre " City of Nanaimo – Engineering and Public Works Committee " Member & Past President – Rotary Club of Nanaimo " Advisory Board – Young Professionals of Nanaimo " Advisory Member – Nanaimo Foundation
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Bill Nadeau " Proprietor of Deep Fathoms Ocean Sciences " Author of Various Books and Manuals on Ocean Exploration " Instructor Trainer Marine and Diving Sciences " RCMP WCMS Marine Investigator
Ian Hall – Retired " Owner, Ocean Explorers Diving " Past President, Nanaimo Dive Association " Member – Nanaimo dive community (sinking of the HMCS Cape Breton, the HMCS Saskatchewan and the Rivtow Lion/HMRT Prudent and HMRT Cautious
Association Advisors The project’s team is fortunate to have a wealth of industry experience onside to assist in the development of the centre. These individuals are subject matter experts, leaders in their respective fields and continue to provide the Board with valuable direction, insight and oversight as the Ocean Discovery Centre takes shape. # Phil Nuytten (Nuytco Research Ltd.) – North Vancouver Technology Advisor
# David Poiron – Nanaimo Architectural Advisor
# Ben Checkwitch – Vancouver Architectural Advisor
# TBA – Cultural Advisor
# TBA – Ecological Advisor
# TBA – Economic Advisor
# TBA – Education Advisor
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