Sports and Entertainment Centre - Regional Municipality of Wood

Report
Regional Municipality of
Wood Buffalo
Sports and Entertainment
Centres
November 19, 2013
What is a Sports and Entertainment Centre
• Commencing in the early 1990’s, central and western Canada have experienced
a “boom” in the construction of new, state-of-the-art multi-purpose spectator
arenas and event centres
• These new facilities contain many of the same amenities and features that exist
within much larger NHL buildings, including:
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luxury suites
club seat areas
restaurants
retail outlets
enhanced food and beverage / concession areas
larger concourses
wider seating
corporate hospitality areas
better advertising positions and opportunities
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What is a Sports and Entertainment Centre
• The main impact of these enhancements has been to:
• enhance the in-game experience of fans and thereby increase average
attendance
• provide greater revenue generating opportunities to both the main
tenant hockey club and the facility
• broaden the range of other events, including concerts, family shows,
other sporting events, trade shows, corporate events, community
events, etc. which can be booked into facility
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Sports and Entertainment Centre – Images
Interior Savings Centre,
Kamloops BC
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Size:
5,500 seats
Location:
downtown
Date opened:
1993
Cost:
$18.5 million
Lead tenant:
Kamloops Blazers
(WHL)
November 19, 2013
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Sports and Entertainment Centre – Images
CN Centre, Prince George BC
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Size:
6,000 seats
Location:
suburban
Date opened:
1995
Cost:
$20.0 million
Lead tenant:
Prince George Cougars
(WHL)
November 19, 2013
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Sports and Entertainment Centre – Images
Prospera Place, Kelowna BC
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Size:
6,200 seats
Location:
downtown
Date opened:
1999
Cost:
$19.0 million
Lead tenant:
Kelowna Rockets (WHL)
November 19, 2013
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Sports and Entertainment Centre – Images
Western Financial Place,
Cranbrook BC
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Size:
4,300 seats (add-on to a
large community
recreation complex)
Location:
suburban location
Date opened:
2000
Cost:
$22.6 million (cost of
add-on 4,300 seat
facility; total project was
approximately $30.0
million)
Lead tenant:
Kootney Ice (WHL)
November 19, 2013
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Sports and Entertainment Centre – Images
Save-on-Foods Memorial Centre,
Victoria BC
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Size:
7,000 seats
Location:
downtown
Date opened:
2003
Cost:
$32.0 million
Lead tenant:
Victoria Royals (WHL)
November 19, 2013
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Sports and Entertainment Centre – Images
Prospera Place, Chilliwack BC
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Size:
5,000 seats plus
community ice pad
Location:
suburban (abutting
downtown)
Date opened:
2004
Cost:
$20.3 million
Lead tenant:
Chilliwack Chiefs
(BCHL)
November 19, 2013
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Sports and Entertainment Centre – Images
Encana Events Centre, Dawson
Creek BC
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Size:
4,500 seats (part of
larger agriplex)
Location:
suburban
Date opened:
2008
Cost:
$20.0 million
Lead tenant:
n/a (the facility has
been without a lead
tenant since 2012 when
the NAHL Dawson
Creek Rage folded)
November 19, 2013
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Sports and Entertainment Centre – Images
Events Centre, Langley BC
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Size:
5,000 seats (facility also
includes a community
centre, gymnastics
centre and three
gymnasiums)
Location:
suburban
Date opened:
2008
Cost:
$57.0 million
Lead tenant:
Langley Chiefs (BCHL)
November 19, 2013
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Sports and Entertainment Centre – Images
South Okanagan Events Centre,
Penticton BC
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Size:
5,100 seats
Location:
suburban (abutting
downtown)
Date opened:
2008
Cost:
$78.0 million
Lead tenant:
Penticton Vees (BCHL)
November 19, 2013
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Sports and Entertainment Centre – Images
Entertainment & Sports Centre,
Abbotsford BC
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Size:
7,000 seats
Location:
suburban
Date opened:
2009
Cost:
$80.0 million
Lead tenant:
Abbotsford Heat (AHL)
November 19, 2013
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Sports and Entertainment Centre – Images
Enmax Centrium, Red Deer AB
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Size:
5,800 seats (currently
undergoing expansion
to 7,000 seats)
Location:
suburban (located in
Westerner Park, a
agricultural fair grounds
complex)
Date opened:
1991
Cost:
n/a
Lead tenant:
Red Deer Rebels (WHL)
November 19, 2013
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Sports and Entertainment Centre – Images
New Sports and Entertainment
Centre, Medicine Hat AB
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Size:
5,700 seats
Location:
suburban
Date opened:
2016
Cost:
$64.7 million
Lead tenant:
Medicine Hat Tigers
(WHL)
November 19, 2013
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Sports and Entertainment Centre – Images
Mosaic Place, Moose Jaw SK
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Size:
4,500 seats
Location:
downtown
Date opened:
2011
Cost:
$61.2 million
Lead tenant:
Moose Jaw Warriors
(WHL)
November 19, 2013
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Sports and Entertainment Centre – Images
Molson Centre, Barrie ON
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Size:
4,200 seats
Location:
suburban (built on land
donated by Molson
Breweries)
Date opened:
1995
Cost:
$13.0 million
Lead tenant:
Barrie Colts (OHL)
November 19, 2013
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Sports and Entertainment Centre – Images
RBC Centre, Sarnia ON
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Size:
5,000 seats (part of
multi-pad complex)
Location:
suburban (built on lands
provided by Lambton
College)
Date opened:
1998
Cost:
$18.5 million
Lead tenant:
Sarnia Sting (OHL)
November 19, 2013
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Sports and Entertainment Centre – Images
Powerade Centre, Brampton ON
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Size:
5,000 seats (part of
multi-pad arena and
sport field complex)
Location:
suburban
Date opened:
1998
Cost:
$24.5 million
Lead tenant:
Brampton Beast (CHL)
November 19, 2013
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Sports and Entertainment Centre – Images
Hershey Centre, Mississauga ON
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Size:
5,400 seats (part of
multi-pad arena and
sport complex)
Location:
suburban
Date opened:
1998
Cost:
$22.0 million
Lead tenant:
Mississauga Steelheads
(OHL)
November 19, 2013
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Sports and Entertainment Centre – Images
Sleeman Centre, Guelph ON
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Size:
4,800 seats (built into a
former Eatons
department storeanchored downtown
mall)
Location:
downtown
Date opened:
1998
Cost:
$21.5 million
Lead tenant:
Guelph Storm (OHL)
November 19, 2013
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Sports and Entertainment Centre – Images
Budweiser Gardens, London ON
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Size:
9,100 seats
Location:
downtown
Date opened:
2002
Cost:
$47.0 million
Lead tenant:
London Knights (OHL)
November 19, 2013
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Sports and Entertainment Centre – Images
Essar Centre, Sault Ste. Marie ON
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Size:
4,800 seats
Location:
downtown
Date opened:
2005
Cost:
$25.0 million
Lead tenant:
Soo Greyhounds (OHL)
November 19, 2013
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Sports and Entertainment Centre – Images
GM Centre, Oshawa ON
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Size:
5,400 seats
Location:
downtown
Date opened:
2005
Cost:
$45.0 million
Lead tenant:
Oshawa Generals (OHL)
November 19, 2013
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Sports and Entertainment Centre – Images
Rogers K-ROCK Centre, Kingston
ON
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Size:
5,200 seats
Location:
downtown
Date opened:
2005
Cost:
$46.5 million
Lead tenant:
Kingston Frontenacs
(OHL)
November 19, 2013
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Sports and Entertainment Centre – Images
WFCU Centre, Windsor ON
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Size:
6,500 seats (part of
multi-pad recreation
complex)
Location:
suburban
Date opened:
2008
Cost:
$71.7 million
Lead tenant:
Windsor Spitfires (OHL)
November 19, 2013
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Sports and Entertainment Centre – Images
Meridian Centre, St. Catharines
ON
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Size:
5,000 seats
Location:
downtown
Date opened:
2014
Cost:
$45.0 million
Lead tenant:
Niagara Ice Dogs (OHL)
November 19, 2013
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Sports and Entertainment Centre – Images
Proposed new Event Centre,
Thunder Bay ON
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Size:
5,700 seats (proposed to
be developed along side
a 50,000 square foot of
conference centre)
Location:
downtown
Date opened:
2017
Cost:
$106.1 million
Lead tenant:
t.b.d.
November 19, 2013
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Sports and Entertainment Centre – Uses
Hockey
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Sports and Entertainment Centre – Uses
Other Sports
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Sports and Entertainment Centre – Uses
Concerts
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Sports and Entertainment Centre – Uses
Family Shows
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Sports and Entertainment Centre – Uses
Other Entertainment
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Sports and Entertainment Centre – Uses
Community Events
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Sports and Entertainment Centres – Financing
• Project financing of sports and entertainments generally includes a combination
of:
• municipal financing (including an up-front capital contribution and / or
municipal debenture)
• federal / provincial government support (grants)
• community fundraising
• private equity (in the case of P3 arrangements)
• Once open, operational responsibility can take the form of:
• the municipality assumes all operating and financial risk
• the municipality transfers a portion of operating risk to a third party
management company, but still retains all financial risk
• the municipality annually contributes a fixed amount to the building,
with a private partner taking on any additional financial risk
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November 19, 2013
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Sports and Entertainment Centres – Financing
• Examples:
•
Kelowna
• City contributed $6.0 million up front and guaranteed $11.0 million in project
debt
• City makes fixed annual payment to private partner in return for 1,500 hours
of community access per year
• Private partner operates facilities with no additional obligation to
municipality
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Kingston
• Project financed through a combination of municipal reserves, debentures,
provincial grant, community fundraising and donations from local businesses
• Facility operations contracted to third party operator, who has put their
management fee “at risk” (i.e., if the facility does not generate the level of net
operating income projected, the operator does not earn its base management
fee; if net operating profits are exceeded, the operator is entitled to retain a
percentage of those excess proceeds
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November 19, 2013
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Sports and Entertainment Centres – Financing
• Examples:
•
London
• City contributed $32.5 million up front and guaranteed $7.0 million in
project debt
• Private partner contributed $2.5 million and is obligated to repay project debt
• Private partner operates facilities with no obligation to municipality
•
Brampton
• City contributed $7.0 million up front and guaranteed $15.5 million in project
debt
• Private partner contributed $2.0 million
• Private partner operates facilities and repays debt from net operating income
• City covers first $0.5 million of any operating loss (after debt service), private
partner covers next $0.25 million of any operating loss. City and private
partner equally share any additional operating loss over $0.75 million
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Sports and Entertainment Centres – Benefits
• Impetus to construct new Sports and Entertainment Centres has generally
arisen from three factors:
• need to replace an aged “arena” facility
• desire to achieve broader economic development goals
• desire to enhance quality of life factors
• Broader economic development goals include:
• sports and entertainment event hosting (and attracting events that would
not previously have considered coming to the community because of its
lack of a suitable venue)
• visitor attraction and increased spending by visitors attending events held
at the facility; and
• incremental investment and economic development impacts resulting the
siting of the facility and its ability to (a) support complementary
developments in its environs and (b) support new investment by
broadening the range of amenities available within the community
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November 19, 2013
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Sports and Entertainment Centres – Benefits
• Positive benefits which have resulted from new Sports and Entertainment
Centres constructed since the mid 1990’s include:
• In Prince George BC, the CN Centre has had an “enormous beneficial
impact on the community”, with positive benefits resulting from “the
flood of visitors that come to town for events”.
• Kelowna BC similarly has realized significant benefits – when the facility
was completed, Prospera Place was “on the outskirts of the downtown
core” and “since its completion, other businesses and city buildings have
popped to make the downtown something to behold”…”this venue helped
a thriving cultural district develop in the surrounding area”.
• In Oshawa ON, the GM Centre is credited for producing economic spinoffs in the downtown core, attracting non-residents to the city, and for
driving the “night time economy”. Moreover, with the opening of the GM
Centre, the downtown commercial vacancy rate decreased from 21% in
2006 to approximately 11% by early 2011; in addition 83% of all building
permits, by value, issued in downtown Oshawa between 1994 and 2011
where issued after the GM Centre opened (roughly $540 million).
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November 19, 2013
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Sports and Entertainment Centres – Benefits
• In Guelph ON, the City made a number of investments in its downtown
“cultural infrastructure” (including the Sleeman Centre, River Run
Theatre and Market Square development), projects which have proven to
draw people to the district, generate higher property values, support
enhanced retail economies and provide associated returns from an
enhanced tax base.
• In the case of Kamloops and Victoria, their Event Centres have been
noted to contribute financially to downtown businesses, providing an
enhanced vitality of surrounding businesses, including restaurants, bars,
specialty retail shops and have contributed to the liveability of their
respective downtown cores.
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Sports and Entertainment Centre – Benefits to RMWB
• In addition to the above identified social, development and economic
development benefits, a number of direct and indirect economic benefits can
arise within Fort McMurray and across the Regional Municipality of Wood
Buffalo as a result of the construction and on-going operation of the Sports and
Entertainment Centre.
• The quantitative economic benefits include:
• Spending Impacts: the impact resulting from the purchase of goods
and services
• Employment Impacts: the increase in employment resulting the
purchase of goods and services
• Income Impacts: the increase in personal income resulting from
increases in employment
• Tax Impacts: the amount of personal income and sales taxes (including
HST, where such amounts are able to be estimated) and property tax
which various levels of government could reasonably expect to receive as
a result of a project’s development and operation
RMWB – Sports and Entertainment Centres
PricewaterhouseCoopers LLP
November 19, 2013
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