TITLE: CITY SUPPORT OF THE 2010 WORLD JUNIOR HOCKEY Page 1 of 3 CHAMPIONSHIPS PRESENTER: Sandy Trudel / Lois AGENDA NO: McDonald DEPARTMENT: Economic Development DATE: April 14th, 2008 CLEARANCES: Nil ATTACHMENTS: 1. Report (3 pages) APPROVALS: April 14, 2008 14/04/08 Department Head Date City Manager Date SUMMARY OF HISTORY/DISCUSSION & FUNDING: Background In November, 2007 Hockey Canada sent out a call for proposals across Canada to bid to host either/or/both the 2010 and 2012 World Junior Hockey Championships. The World Junior Hockey Championships are considered one of the premiere international sporting events hosted in Canada. The Championships, which attract the worlds best junior hockey players from 10 countries, are estimated to generate gross economic impact of $43.5 Million for Manitoba including visitor expenditures of $10.7 Million. Manitoba last hosted the World Junior Championships in 1999 with a Brandon/Winnipeg partnership. That event was considered the benchmark for attendance and profit up to that period. Subsequent Championships in Halifax in 2003 and Vancouver in 2006 set escalating financial records. The 2009 Championships scheduled for Ottawa have committed a profit guarantee of $12.5 million based on attendance levels of 400,000. 2010 is considered by many as the last opportunity for the World Junior Hockey Championships to be held in a smaller market such as Manitoba. As a result of the 2010 Olympics, all NHL franchise cities have reduced seasons in order to allow their players to participate in the Games. Therefore, they are unable to commit their facilities for another 2 weeks to the hosting of the World Junior Hockey tournament. This presents a unique opportunity for smaller markets like Manitoba to submit a successful bid for this event. The tournament has increased so dramatically in size and requirements that it is unlikely that any community other than a major metropolitan center would be considered in the awarding of the tournament beyond 2010. A Bid Committee consisting of Hockey Manitoba, Destination Winnipeg, True North Sports & Entertainment, the Brandon Wheat Kings, the Keystone Centre, Sport Manitoba, Travel Manitoba and the Province of Manitoba was established to develop the 2010 bid package. The committee, chaired by Mr. Mark Chipman, President of the Manitoba Moose Hockey Club, determined that the best opportunity for success was to bid solely for the 2010 Championships. The competition for the 2010 championships is joint bids from Saskatoon and Regina and Halifax and Moncton. In order to be successful, it is imperative that the Province of Manitoba and Cities of Winnipeg and Brandon dedicate their commitment to landing and implementing this significant event. A letter of intent to submit a formal bid package with a $10,000 deposit was submitted to Hockey Canada on February 1, 2008. A formal bid submission package, based on comprehensive International Ice Hockey Federation and Hockey Canada criteria was submitted on March 31, 2008. Short list presentations will be …/2 TITLE: CITY SUPPORT OF THE 2010 WORLD JUNIOR HOCKEY Page 2 of 3 CHAMPIONSHIPS made in June in Toronto and Hockey Canada announcements of the successful bid will be made in July of 2008. The bid committee has been working closely with the Brandon Wheat Kings, the Keystone Centre and Brandon First on all facets of this joint Brandon/Winnipeg bid. The Bid also has the support of the Brandon Chamber of Commerce, Brandon Tourism and Economic Development Brandon. Volunteers It is estimated that approximately 1,500 volunteers will be required across the Province to ensure the success of this tournament. Between 500 -700 volunteers will be needed to host the Brandon portion of this event. In comparison, the 1997 Canada Summer Games utilized 7,000 volunteers. A strong connection has already been developed with the hockey community, and Brandon’s commitment to volunteer initiatives will ensure that a qualified and professional pool of volunteers will be available to host this event. Training and Games Schedule Brandon has been guaranteed Team Canada’s training camp, which will take place immediately in advance of the tournament. Additionally, three exhibition games (two featuring Canada) will be played at the Keystone Centre in Brandon. Recent rule changes prohibit pools from playing in other communities, so Brandon will not be allowed to host any Canada games in Round Robin play. Brandon will host the Group A pool, which will feature Russia, USA and Sweden. Economic Impact This tournament provides significant economic impact as well as exposure on the international stage. The total economic impact for the Province is estimated at $43.5 million, with Brandon recognizing $7 million in economic impact. Approximately 300 hotel rooms per night will be utilized for athletes, officials, VIP and media over an 8 -14 day period resulting in 2,400 – 4,200 room nights. Rooms for spectators and family will be in addition to this number. Visitors will be in the city for up to two weeks, providing revenue opportunities for many other community businesses. Furthermore, the final two weeks of December are traditionally a slower time for the Keystone Centre, and local hotels. This will create relative ease in accommodating the hosting of this tournament. A handful of Wheat Kings games will require re-scheduling, and the hockey club has already indicated that they are willing to make those changes to their schedule. Any time that a traditionally slow period is filled with a major event of international status, a win-win situation is created. Legacy for Brandon Any time a tournament of this level is hosted, a legacy of community pride, volunteer development and recognition on the international stage remains. In addition, a significant legacy program has been put in place to benefit the Brandon Wheat Kings and hockey throughout our community. A portion of the revenue recognized by the Keystone Centre will be dedicated to improvements within the facility that will streamline hockey operations and create other opportunities for development within the Keystone. Government Support The Province of Manitoba has provided significant support in the way of major financial grants as well as a guarantee of support. The City of Winnipeg has also committed direct financial support as well in-kind services. The Bid Committee is requesting support from the City of Brandon in the amount of $100,000. This is considered to be a direct financial contribution to the event, and will not be repayable to the City at the conclusion of the tournament. In-kind support in the way of operational services may be requested, but has not been confirmed at this point in time. TITLE: CITY SUPPORT OF THE 2010 WORLD JUNIOR HOCKEY Page 3 of 3 CHAMPIONSHIPS To provide some context to this request, previous financial contributions to major events were researched. For those events that information was readily available, city contributions ranged from $5,000 - $250,000 (1997 Canada Summer Games). The City provided the 1997 Canada Summer Games with a $250,000 forgivable loan, of which $80,000 was repaid and invested an additional $2,000,000 in capital. The 1997 Canada Summer Games were estimated to generate approximately a $45 million economic impact for the Province of Manitoba which is comparable to the economic impact projected for the 2010 World Junior Hockey Championships. Economic Impact figures for Brandon were not available. RECOMMENDATION: That $100,000 be expended in 2010 as the City of Brandon’s contribution to the 2010 World Junior Hockey Championships with funds to be budgeted in the Economic Development Office’s 2010 budget. .