Request for Expression of Interest (RFEI)

Waterfront Commercial Development Opportunity

Town of Sylvan 5012 - 48 Avenue Sylvan Lake, AB T4S 1G6

Issued: July 16, 2019

Table of Contents

PROJECT VISION………………………………………………………………………………………..3 1.0 Introduction……………………………………………………………………………………….4

2.0 Background……………………………………………………………………………………….5

3.0 The Setting………………………………………………………………………………………..7 3.1 Town of Sylvan Lake……………………………………………………………………7 3.2 The Site…………………………………………………………………………………..8

4.0 The P3 Opportunity…………………………………………………………………………….10

5.0 Submission Requirements…………………………………………………………………….11

6.0 Selection Process………………………………………………………………………………12

7.0 Terms and Conditions………………………………………………………………………….12

APPENDIX 1- Lakefront District Regulations (draft)………………………………………………..14

Town of Sylvan Lake | Request for Expression of Interest 2 Waterfront Commercial Development Opportunity

PROJECT VISION

The Waterfront District is the vibrant heart of Sylvan Lake; providing year-round attractions and amenities for both residents and visitors alike. The Waterfront District showcases Sylvan Lake as a hub of regional culture and recreational activities that inspires people to live and work in the area and offers visitors an exciting opportunity to visit throughout any season.

The Vision for Waterfront redevelopment is best depicted in the recently produced Investment Opportunities video. Link:Economic Development Investment Opportunities Video - https://www.sylvanlake.ca/en/business-development/investment-attraction.aspx

The Project

The Town of Sylvan Lake is calling for submissions to this Request for Expression of Interest (RFEI) for a mixed-use commercial development that will serve as the nucleus for downtown / waterfront revitalization. The proposed project will be located on the municipally-owned parcel of land located at 5104 Lakeshore Drive. This Public-Private Partnership (P3) opportunity will be based on a 60-year non-renewable lease of the public land. The Private Partner should have a proven track record in:

 successful ground-up development;  sophisticated investment;  financially stable-AAA rating;  exceptional employee relations;  previous experience in development and operations in multi-use facilities; and a  demonstrated understanding of the characteristics required for a successful national and international tourism destination, including the promotion of year-round waterfront activities.  previous experience in hosting reoccurring events

The proposed mixed-use commercial / retail project for the waterfront redevelopment should include the following attributes:

a. The focus must be on people and cater to a range of ages; b. It must be a year-round gathering place, meaning a covered space; c. It must be programmed; d. Primary hours would be from 4:00pm to 10:00pm six days a week, with shops generally open from 10:00 am to 10:00 pm; e. It has to be intimate with landscaping, seating and smaller spaces; f. It must be monetized with a mix of small vendors and businesses; g. It also must be culturally rich with a range of performances and activities; h. It needs to be historically rich, showcasing the history of the Town of Sylvan Lake; i. It must be void of vehicles – yet be easy to access; j. It must be integrated with its neighbors as a single, outstanding destination; k. It must create a memorable sense of place and experiences to share; and l. It must enhance water-based commercial and seasonal recreational opportunities. m. It must have a venue space capable of hosting events of at least 200 attendees

Town of Sylvan Lake | Request for Expression of Interest 3 Waterfront Commercial Development Opportunity

1.0 Introduction

As an Investor/Developer/Visionary there is a constant, and often unsolicited introduction to a considerable number of real estate opportunities. Each one of them with the promise of an attractive return on investment (ROI) even at the very early stages of investigation. That first cursory review often separates the weak from the potentially strong and helps to ascertain if a given opportunity warrants further diligence, and the associated costs. All aspects of an early stage investigation falls under the risk management umbrella. This is most often not understood or considered by the various levels of government, or the community at large. The Town of Sylvan Lake, has, and is continuing to invest heavily into its own future through hard capital investment and prudent planning. In January 2019, Council adopted the Sustainable Waterfront Area Redevelopment Plan (ARP), a statutory document that will guide future development in the waterfront district. Critical to the Plan was the community engagement process including a 3-day Community Design Workshop or visioning charrette hosted by the Town and supported by all 3 levels of government. The project, branded as REIMAGINE SYLVAN Your Waterfront, was lead by a team of consulting professionals providing direction on how best to incorporate highest and best use principals and practices into the Plan, while at the same time capturing the community’s vision. The many stakeholders involved in the 412-acre Sustainable Waterfront Area Redevelopment Plan (ARP) understand that there are many crucial elements to be considered prior the injection of private capital; especially with a project of this magnitude. Many of the development opportunities will span 20 years into the future. The Town is currently refining the Land Use Bylaw (LUB), its land use districts, designation of authority, and will remove the Direct Control Districts as a starting point for the ARP implementation plan. The Waterfront Urban Design Guidelines have been repealed and the Planning and Development Department is establishing a Design Review Panel (DRP). Terms of Reference and protocols are being created prior to assembling the DRP. The ARP and the community-backed implementation plan efforts to redevelop key sites in the waterfront district are lead by the Economic Development Department. The Plan speaks to establishing a Public-Private Partnership (P3) or innovative partnership to create a development model for the Lakefront Park indoor/outdoor facility, which is suggested to include commercial spaces for unique and boutique retail operations, programmed public amenities; market, theatre/performance space, event space, water play area, etc. that will become the nucleus of development in the waterfront district. With a focus on establishing the Town of Sylvan Lake as a year-round destination, the Town is currently considering the strategic advantages of a P3 agreement for the ±5-acre municipally-owned Lakefront Park site. Link: Sustainable Waterfront Area Redevelopment Plan - https://www.sylvanlake.ca/en/business- development/area-redevelopment-plans.aspx

Town of Sylvan Lake | Request for Expression of Interest 4 Waterfront Commercial Development Opportunity

2.0 Background

1. Since 2012, the Town has invested over $35 million in infrastructure with a focus on boulevard and streetscaping on Lakeshore Drive adjacent to Sylvan Lake, and the creation of Centennial Park, a passive recreation area for residents and visitors alike. In keeping with the community’s Waterfront Redevelopment Strategy, the Town of Sylvan Lake purchased a ± 5 acre property in 2016, now known as Lakefront Park with the intention of developing out a portion of the parcel as a destination magnet for year-round tourism. In 2017, the Province of divested Sylvan Lake Provincial Park to the Town of Sylvan Lake to operate and maintain one of Alberta’s most popular beach locations and public pier. These strategic investments have demonstrated the Town’s willingness to diversify and improve the quality of place for residents and investors.

2. In April 2018, the Town of Sylvan Lake held an Economic Business Development Summit with a number of pre-qualified national and local investment leads in attendance. During the Summit, Gary Mathieson, President and CEO of Quay Property Management, presented to Mayor and Council an overview of the Quay Property Management Market business template. The presentation included the Quay Market concept: how they operate, how they animate, how they refresh, the logistical requirements, locations, and attraction to the end user, as well as a discussion on scalability, and the suitability of this type of venue for the proposed waterfront redevelopment. The presentation was very well received.

3. In May 2018, the Town of Sylvan Lake hosted a 3-day visioning charrette that included the public at large, Mayor, members of Council, business owners, and community leaders. Vicki Kurz, Economic Development Officer (EDO) and Kim Devlin, Senior Planner along with the team from McElhanney Consulting Services Limited were able to garner input from all attendees and felt that the community was generally in support of the direction for housing densification to support commercial development, proposed land use districts, and the Water’s Edge design concepts. In addition, an online survey was utilized to garner feedback from residents. With over 600 people participating, feedback on the Water’s Edge design concepts were overwhelmingly positive. The Mayor and Council demonstrated their support by adopting the Sustainable Waterfront

Town of Sylvan Lake | Request for Expression of Interest 5 Waterfront Commercial Development Opportunity

Area Redevelopment Plan (ARP) in January 2019. Municipal department budgets have since been approved that include the Plan’s implementation actions supporting the re- visioning and revitalization of the waterfront district.

4. To expand on the successes of the visioning charrette for the waterfront district, the EDO has been successful in accessing additional funding from the province of Alberta, allowing the community to move forward with the implementation of the Tourism Festival and Events Strategy. The strategy concentrates on the creation of 30 new year-round festivals and events over the next 5 years. The Town has since been successful in attracting the Canadian Bull Riding Championships held in November of each year, has established a Waterfront Winter Village - the backdrop for shoulder season event development, and as of 2019 has created 16 new cultural festivals and events. Following Council’s adoption of the Municipal Cultural Plan in 2017, the Town has hired a new full- time staff member equally sharing their time between Cultural Development and Tourism Marketing. As a result, the Town of Sylvan Lake is in the process of creating a social media focused Tourism Marketing Strategy to be launched in 2020.

5. To further tip the scales of success, Travel Alberta’s annual experiential travel training program “SHiFT” was held in Sylvan Lake, March 18-21, 2019. The SHiFT Program was initiated in 2015 by Travel Alberta (the province’s marketing arm) and funded through Alberta Culture & Tourism. The training program which included the creation of 5 new off-season, export-ready experience-based tourism products, has been previously held in Jasper, , Drumheller, and Banff/. The SHiFT Community Team provided mentoring for the 5 local businesses that have created unique-to-Sylvan Lake experiences for visitors to take in during the shoulder season.

6. In 2014, the Town undertook its first Tourism Economic Impact Assessment (EIA). The results were impressive with over 761,000 visiting Sylvan Lake in July and August alone, over a million tourists year-round. As the Town study broaches the 5 year mark, a follow up Tourism EIA is now underway to measure the destination’s growth since 2014. In comparison, Banff National Park sees an annual visitation of 5 million, Jaspar National Park 3 million, and Drumheller Dinosaur Museum 700,000.

7. In May of 2019, the Town hosted its second Economic Development Business Opportunities Summit with 8 pre-qualified investors and developers from , USA and Alberta who were familiar with and demonstrated interest in the Lakefront Park property P3 development concept. Supported by the Ministry of Economic Development, Trade & Tourism, the Town was able showcase its achievements over the past year, tour the Lakefront Park property, meet with potential commercial vendors, and network with members of Council and administration.

8. The newest Town of Sylvan Lake initiative revolves around securing a recreational water lease from the Province in order to manage commercial operations adjacent to the land, address boat mooring, identify new infrastructure required, and to ensure the health and safety of residents and visitors. The ‘Consolidated Vision for the Lakefront’ project will result in the development of a site plan, required by the Province, identifying current and future motorized and non-motorized uses, as well as future commercial and recreational opportunities.

Town of Sylvan Lake | Request for Expression of Interest 6 Waterfront Commercial Development Opportunity

3.0 The Setting

The Town of Sylvan Lake is located in approximately 15 km (9.3 mi) west of the City of Red Deer at the intersection of Highway 11 and Highway 20. Tourism is the town’s major economic base, but all business sectors benefit from its strategic location near the - Edmonton Corridor, Queen Elizabeth Highway 2.

Sylvan Lake combines the natural beauty and recreational amenities of a waterfront community with a host of shops, restaurants and a growing professional services sector. With a 2016 population of 14,816 permanent residents, and over 1-million annual visitors, Sylvan Lake is one of Alberta’s fasting growing communities, as well as one of the province’s most popular tourist destinations.

3.1 Town of Sylvan Lake

SYLVAN LAKE - BRILLANT ALL YEAR Unique among Alberta’s many , Sylvan Lake is the Provinces’ only aquifer fed, fresh water lake with a total surface area of 42.8 km (16.5 sq. mi.) and with a maximum depth of 18.3m (60 ft.). It’s one of Alberta’s premier lakeside recreational destinations providing for seasonal aquatic recreational uses such as swimming, boating, kayaking, paddle boarding, sailing, and watersports in the summer, snowmobiling, snowshoeing, outdoor hockey, and ice skating in the winter, and year-round fishing, wildlife viewing, and overall enjoyment of the natural surrounding beauty.

Between 2011–2016, Sylvan Lake’s population growth rate was 19.2%. Sylvan Lake’s 2018 full-time residential population is estimated at over 16,287. No longer identified as a lakeside

Town of Sylvan Lake | Request for Expression of Interest 7 Waterfront Commercial Development Opportunity

village of cottages, the Town’s population is expected to increase to nearly 50,000 permanent residents by 2043. The current average growth rate of 2.4%. The 2018 unemployment rate for the Red Deer Economic Region is 5.5% and the median individual income for Sylvan Lake residents is $45,097 versus Canada at $33,920.

With it’s proximity to the Calgary and Edmonton International Airports, just a short 90 minute drive, Sylvan Lake has the potential to become Canada’s newest full-service waterfront international recreational destination. Sylvan Lake is centrally located between Calgary and Edmonton, Alberta (with a combined population of 2.2 million). Each city is home to a modern world class International airport, jointly hosting over 23.1 million travelers annually.

3.2 The Site

Sylvan Lake’s population expands to almost 800,000 during the two peak summer months of tourism. Recognizing an opportunity to increase their tourism market share and take advantage of the other ten months of the year, the community believes it is now the appropriate timing to develop the ±5 acre publicly owned lakeshore property through a Public-Private Partnership (P3).

The ±5 acre property at 5104 Lakeshore Drive, currently known as Lakefront Park, is comprised of a 3.23 acre development site and a 1.74 acre site leased by the Town of Sylvan Lake under a License of Occupation (LOC) issued by the Province of Alberta for public recreational use. The proposed development site is located in the Lakefront District (Please refer to Appendix 1) for purposes of this Request for Expression of Interest (RFEI) submission.

Sustainable Waterfront ARP - New Land Use Districts See Appendix 1 – Lakefront District Regulations (draft)

Town of Sylvan Lake | Request for Expression of Interest 8 Waterfront Commercial Development Opportunity

Sustainable Waterfront ARP - Visioning Charrette Water’s Edge Concept(s)

Public-Private Partnership (P3) Site - 5104 Lakeshore Drive Lakefront Park

Town of Sylvan Lake | Request for Expression of Interest 9 Waterfront Commercial Development Opportunity

Alberta Land Surveyor’s Real Property Report (RPR) – 5104 Lakeshore Drive Lot B, License of Occupation 811 245

4.0 The P3 Opportunity

The Town of Sylvan Lake is calling for submissions to this Request for Expression of Interest (RFEI) for a mixed-use commercial development that will serve as the nucleus for downtown / waterfront revitalization. Upon completion, the development should provide a memorable destination for residents and tourists alike, intended to offer a variety of public activities supported by an active animated commercial component.

The Town is seeking a development partner(s) to: • Jointly finalize a vision of an animated public destination supported by vibrant commercial / retail space; • Build and operate the commercial / retail component; • Provide physical construction and / or capital contribution for public amenities as outlined within the Lease;

Town of Sylvan Lake | Request for Expression of Interest 10 Waterfront Commercial Development Opportunity

• Provide on-going contributions to public space maintenance and programming; and • Provide a parking solution that meets the objectives of the ARP, and addresses the unique challenges of the site and area. Underground parking may utilize the entire lot area.

The Town will provide: • A long-term ground lease for the development of the commercial component of the site; • An environmentally clean site free and clear of any encumbrances, environmental issues or contamination; • A municipally serviced site, to the property line, at no cost to the Leasee. Service capacities will meet development demands. Note: Electricity, natural gas, data and telephone will be provided by others at a cost to the Lessee; • Fast tracked Development and Building Permits, providing at time of submission all conditions have been meet by the applicant; and General development criteria: • Adhere to Site Planning Principles as outlined in the Sustainable Waterfront ARP; • Conform to Lakefront District Regulations upon Council approval (please refer to Appendix 1); • Residential development or gaming / casino facilities will not be supported by the Town; • Upon project completion, the public venue space will be turned over to the Town to operate; and • All hard and soft costs shall be the responsibility of the Lessee.

5.0 Submission Requirements

Section A – Corporate History Letter of introduction, including name and address of respondent, number of years in business, associated or affiliated companies.

Section B - Provide illustrative examples of similar past projects (waterfront / secondary markets) in which listed company(s) has played a significant role, and which are relevant to the proposed project.

Section C - Reference Checks Provide a client reference list for past projects of a similar nature for which the designated company(s) has assumed responsibility. References will be asked to comment on proponent’s adherence to the original Terms of Reference, their ability to stay within budget and on schedule, and the quality and thoroughness of the proponent’s work as well as the ongoing success of the project.

The Town is interested in achieving the best possible outcome for the project and invites respondents to include in their submissions commentaries on opportunities and challenges related to the project.

Town of Sylvan Lake | Request for Expression of Interest 11 Waterfront Commercial Development Opportunity

6.0 Selection Process

Proponents will be evaluated and short-listed based on the qualifications submitted using, but not limited to, the following criteria:

1. The respondent’s overall ability to meet the Waterfront vision, criteria and requirements set out in this RFEI. 2. The respondent’s business and technical reputation. 3. Demonstrated record of success on previous projects. 4. Demonstrated ability to complete assignments on time, and within budget 5. Reference checks.

Short-listed respondents may be interviewed to clarify material submitted in the RFEI documents.

Following a review of responses to this Request for Expression of Interest, the Town may proceed with any one of the following options:

• Select the proponent(s) that meet the pre-qualification criteria and request more detailed information or a proposal. • Select a number of proponents of interest to engage in a competition via a select Request for Proposal process. • Determine not to proceed and no proponent will be invited to submit a proposal.

The short-listed proponent(s) will be selected by the Town on the basis of this Request for Expression of Interest. A detailed proposal is not being requested as part of this RFEI. The Town reserves the right to reject all RFEI submitted and form an agreement with the proponent(s) of its choice.

7.0 Terms and Conditions

7.1 RFEI responses must be received on or before:

August 30, 2019 at 4:30 pm MST

To the attention of: Vicki Kurz, Economic Development Officer (EDO) [email protected] 403-887-1185 ext 226

7.2 Proposals Should Be Submitted in Prescribed Manner:

Proposals should be submitted at the: Municipal Government Building 5012 - 48 Avenue, Sylvan Lake AB T4S 1G6

Town of Sylvan Lake | Request for Expression of Interest 12 Waterfront Commercial Development Opportunity

Proponents should submit two (2) hard copies and one (1) electronic copy in PDF format on a thumb drive in a sealed package. Proposals are to be prominently marked with the RFEI title (see RFEI cover), with the full legal name and return address of the proponent, and with the Submission Deadline. In the event of a conflict or inconsistency between the hard copy and the electronic copy of the proposal, the hard copy of the proposal shall prevail.

7.3 Proposals Should Be Submitted on Time at Prescribed Location

Proposals should be submitted at the location set out above on or before the Submission Deadline. Proposals submitted after the Submission Deadline will be rejected. A proponent may, at its option, email the Town Contact prior to the Submission Deadline with delivery details, including the anticipated arrival time of its proposal. In the event a proposal does not arrive on or before the Submission Deadline, the Town may provide those proponents who have given such prior notice one additional Business Day to affect the delivery of their proposals. The Submission Deadline shall be deemed to be adjusted accordingly for the purpose of accepting those proposals. For the purposes of this Section, “Business Day” means any working day between 8:00 AM and 4:30 PM, Monday to Friday inclusive, but excluding statutory and other holidays on which the Town has elected to be closed for business. 7.4 Withdrawing Proposals

At any time up to the submission deadline, a proponent may withdraw a submitted proposal. To affect a withdrawal, a notice of withdrawal must be sent to the Town Contact and must be signed by an authorized representative. The Town is under no obligation to return withdrawn proposals.

7.5 Questions regarding this Request for Expression of Interest (RFEI) should be directed to:

Dale Bellavance, Bell Group Town of Sylvan Lake, Investment Attraction Strategist [email protected] 250-652-8388

Town of Sylvan Lake | Request for Expression of Interest 13 Waterfront Commercial Development Opportunity

APPENDIX 1

Lakefront District Regulations

DRAFT

Town of Sylvan Lake | Request for Expression of Interest 14 Waterfront Commercial Development Opportunity

Appendix 1

LAKEFRONT DISTRICT

General Purpose: To provide year-round tourism development, along with a variety of recreational opportunities and public open space. The use and development of this district shall be undertaken in accordance with the policies of the Sustainable Waterfront Area Redevelopment Plan.

Permitted Uses: Brewpub Commercial recreation and entertainment facility Commercial school Day care facility Hotel Indoor merchandise sales Mixed-use development Neighbourhood convenience store Office Parking facility (underground only) Parks Personal services Public and quasi-public use Public playgrounds Recreation facility Restaurant

Discretionary Uses: Accessory buildings and uses Drinking establishment

Land Use Requirements: (1) New development shall incorporate a mix of uses into buildings. Retail or commercial uses are required on the ground floor. (2) New stand-alone, single use buildings shall not be permitted in this district. (3) Ground floor uses should contribute to the pedestrian and public realm by being active during the day and evening. (4) A hotel lobby and amenity spaces may be located on the ground floor of a development, however the hotel rooms shall only be located above the ground floor. (5) Commercial school, office, and day care uses shall only be considered above the ground floor.

District Regulations:

Maximum Parcel Coverage: 45%

Appendix 1

Minimum Front Yard: 0 m If a front yard setback is provided it shall be designed for public space, including seating areas, plaza, patio, etc. to the satisfaction of the development authority.

Minimum Side Yard: 3.0 m (9.84 ft.)

Minimum setback from the lake: 30 m (98.4 ft.) from the top of the bank or high water mark to the nearest building;

Maximum Building Height: 3 storeys 16 m (52.5 ft.)

A relaxation to the maximum building height may be granted if the additional building height results in a smaller building footprint with increased view corridors, as well as the provision of additional public amenity or open space being provided to the satisfaction of the Town.

In addition, projects located within this district shall demonstrate how the following have been considered, and included in the development proposal: (1) public pedestrian access along the lakeshore; (2) inclusion of public open space and gathering space within the site design; (3) water-related recreational day use; (4) winter use of the site and proposed public amenities; (5) improvements of the lakeshore, if deemed necessary; and (6) preservation of scenic views across the land to the lake.

Landscaping: 1. A minimum of 35% of the site area shall be landscaped in accordance with section 7.26 of this bylaw. A relaxation to the minimum plant requirements may be granted, and shall be determined on a case by case basis, provided the relaxation results in supporting the development of public amenity and open space, to the satisfaction of the Town.

2. Landscaping shall be carefully designed to beautify the site but ensure that views across the land to the lake are preserved.

3. The Development Authority may require improvements to the lakeshore, in order to ensure that the natural environment and riparian areas of the lake are protected and/or enhanced.

4. Enhancements may be required as part of any development proposal to enhance public pedestrian access to the lakeshore. This may include the development of a trail, if required by the Town.

Appendix 1

Supplementary Regulations:

1. All uses must also comply with the regulations in Part 7 unless a conflict arises between Part 7 and the regulations for this district, in which case the latter shall prevail.

2. A visual impact assessment, prepared by a qualified professional, shall be required for all development within this district. The assessment should provide sufficient information to show the likely effects of the proposed development and the extent to which any undesirable effects may be mitigated by the project design.

3. A shadow study shall be required for all development within this district.

Building and site design 1. Buildings shall be designed in accordance with section 7.6 of this bylaw.

2. Buildings shall be designed to be of high architectural quality and to respond to the lakefront setting provided by the site. Building materials and building design should be evidence of this. Buildings shall utilize at least 2 types of exterior building materials. Vinyl siding and stucco shall not be permitted as a building material.

3. A building step-back may be required and will be determined by a shadow study, ensuring that no shadows are cast on the lake between the hours of 10 am and 2 pm on days between the spring and fall equinoxes.

4. All garbage enclosures required for the site development shall be contained within the building form, or adequately designed to be fully screened and hidden from the public on all sides, to the satisfaction of the Development Authority.

Parking and access 1. On-site parking shall be provided below grade or screened within the building podium.

2. Shared parking strategies may be considered where it can be demonstrated that there is capacity to accommodate peak time parking demand for each of the land uses to be included in the shared parking strategy.

3. Parking relaxations may be considered on a case by case basis, provided cash-in-lieu is provided for any outstanding parking stalls.

4. Alternate on-site parking may be considered in accordance with section 7.38.15 of this bylaw.