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SIC-10-19-Information Regarding the Proposal to Attract a CFL Franchise

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SIC-10-19-Information Regarding the Proposal to Attract a CFL Franchise SIC-10-19 Information Regarding the Proposal to Attract a CFL Franchise Team to Oshawa and Securing Soccer Events for the 2015 Pan Am Games PURPOSE As requested by the Strategic Initiatives Committee on August 30, 2010, the following provides information on the potential opportunity to attract a Canadian Football League (CFL) team to the City and securing soccer events for the Toronto 2015 Pan Am Games. ATTRACTING A CANADIAN FOOTBALL LEAGUE FRANCHISE TEAM TO OSHAWA Q. What is the current status of this matter at the City of Hamilton? A. On August 31, 2010 Hamilton City Council passed a motion directing City of Hamilton staff to report back to Council by September 15 with a report that outlines a business plan for building a new stadium that will be supported by the City of Hamilton, the Hamilton Ti-Cats and the Pan Am Games on the Longwood site. Source: City of Hamilton’s Committee of the Whole Report 10-023. Q. What are the Canadian Footballs League’s (CFL) requirements to locate a team to Oshawa? A. In order for a new franchise or relocated franchise to be considered, a unanimous vote is required by the CFL Board of Governors. One representative of each of the CFL eight clubs make up the CFL’s Board of Governors. The CFL constitution outlines that each member club has exclusion jurisdictional rights, as defined by them, to geographic areas. Page 1 09/01/2010 The designated franchise area for the Toronto Argos includes Oshawa. Source: CFL Office (Monday, August 30, 2010) Q. What is the average seating for a CFL stadium? A. On average CFL venues have approximately 25,000 seats (Ivor Wynne has 29,000 seats, Winnipeg Blue Bombers Stadium has 33,000 seats, BC Place in Vancouver has 60,000 seats). The seating capacity for a Grey Cup game is in the range of 40,000. The plan for the enhanced Hamilton stadium for the combined use of Pan Am Games and the Hamilton Tiger Cats is for 25,000 seats. Source: various facility websites Q. What are the capital costs to construct a CFL facility? A. There are two Canadian examples that are helpful in estimating approximate capital costs. The first example is the reported cost for the new CFL facility currently under construction in Winnipeg. This facility with a proposed 33,000 seats has a cost of approximately $115 million and it has been reported that there may be a budget shortfall and additional funding may be required. The second example is the City of Hamilton proposed facility for the Pan Am Games and possible future home of the Hamilton Tiger Cats. The proposed seating is 25,000 and the estimated cost is approximately $152-162 million. Source: Article from Grande Cache Mountaineer, Toronto Star (May 7, 2010) Page 2 09/01/2010 Q. Typically, how are these stadiums funded? A. Usually, the stadiums are funded by a franchise owner, the city and grants from other levels of government, when available. The proposed Hamilton stadium for the Pan Am Games as well as the additional use by the CFL initially included funding by the CFL Hamilton Tiger Cats team of $15 million. The Tiger Cats are also prepared to contribute an additional $59 million for the enhanced stadium if the stadium was under the operating control of the Tiger Cats. The City of Hamilton is designated as a contributing municipality, and is committed to $60 million net toward Hamilton’s participation in the Pan Am Games. The funding source is the Hamilton Future Fund. The $60 million is to be divided between the capital costs for the stadium ($45 million for the 15,000 seat stadium) and velodrome ($5 million) plus $10 million for land acquisition. As of August 31, City of Hamilton staff have identified that to build a larger 25,000+ seat CFL quality stadium, would require additional funding and a funding source has not been determined. Source: Article from Grande Cache Mountaineer, City of Hamilton COW Report CM09006, Toronto Star (May 7, 2010) Q. How would the City of Oshawa fund a CFL facility? A. The current financial position of the City would require that any portion the City would be required to contribute to the capital construction would be through debenture financing. The City has a limited debt capacity and this limit cannot be exceeded. Oshawa debentures are acquired through and must be approved by the Region of Durham. Source: City of Oshawa staff Page 3 09/01/2010 Q. What are the other site planning and site related issues? A. Consideration of construction of a CFL stadium would also include a range of infrastructure related issues and costs. This would include such things as land (purchase or donation), site servicing (water, sewers, roadways, hydro, etc.) parking, transportation, and transit. Based on a rough estimate of land required for a new 25,000 seat facility, the site would require approximately 47 hectares of land, which would include approximately 14,000 parking spaces (based on 1.8 spaces per seat). Source: City of Oshawa staff Q. How are stadium operating costs managed? A. Typically, the operating agreements for a CFL facility are specified between the partners. Based on the example of the City of Hamilton’s Ivor Wynn stadium, the Tiger Cats pay an annual rental lease of $27,000 and the net operating costs to the City of Hamilton are approximately $1.25 million a year. Source: City of Hamilton COW Report CM09006 Q. How many games would the Tiger Cats play in Oshawa? A. Based on the CFL 2010 schedule for the Tiger Cats, a CFL-based facility in Oshawa would be used seasonally for approximately 10 CFL games (2 pre- season, 8 regular). Source: Hamilton Tiger Cats website Page 4 09/01/2010 Q. What is the potential for other event use of a stadium in Oshawa? A. Serving as a mid- to major concert venue, the stadium would be impacted by existing regional venues as well as its proximity to Toronto facilities. The stadium would be in direct competition with other existing major concert venues (Air Canada Centre, Rogers Centre), major sporting stadiums (York University, BMO Fields, Varsity Stadium) and other public and private facilities that are in the entertainment sector. Also, many facilities whether in the entertainment and sporting sector have existing geographic exclusive rights. Source: City of Oshawa staff SECURING SOCCER EVENTS FOR THE 2015 PAN AM GAMES Q. Is there still an opportunity for cities/municipalities to make submissions at this time to bid for soccer (or any sports) for the 2015 Pan Am Games? A. Pan Am Games cities or venues have been selected and would not be altered unless a situation arose that would require venue/location changes. All venues are subject to the final approval of the Pan Am Games board and this is expected to be confirmed in late September 2010. There is no ability to move and relocate sporting events without the consent of the Pan Am Games Committee. Source: 2015 Pan Parapan American Games Multi Party Agreement (January 7, 2010) Page 5 09/01/2010 Q. Does the Hamilton Pan Am Games application include the requirements for the Hamilton Tiger Cats? A. No. The original application was based on a 15,000 seat stadium for Pan Am Games. The stadium enhancements to support the extra seats in the range of 20,000 - 25,000 for the Tiger Cats would be additional costs that would need to be funded. Source: City of Hamilton COW Report CM09006 Q. Would the Pan Am Games Organizing Committee consider a City of Oshawa bid for soccer at this time? A. There is no intention to move or relocate sporting events for the Games. Therefore the Pan Am Games Committee is not accepting further bid applications. Source: 2015 Pan Parapan American Games Multi Party Agreement (January 7, 2010), Pan Am Games Officials Q. Does the Pan Am Games Corporation provide any direct capital funding for facility development costs? A. Yes, funding arrangements are in place for several of the new capital facilities being developed for the Pan Am Games. For example, the City of Hamilton is receiving approximately 56% of their capital funding for the Pan Am Games 15,000 seat stadium from the Host Corporation (Pan Am Games). The cost of this new stadium is estimated to be $102 million. The municipal share of the project is approximately 44% or $45 million. Source: City of Hamilton COW Report CM09006 Page 6 09/01/2010 .
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