16.04.07 NIVERVILLE MULTI-PLEX FEASIBILITY...

NIVERVILLE MULTI-PLEX FEASIBILITY STUDY

16.04.07

NIVERVILLE MULTI-PLEX

00

c. 2016

Prepared by: STANTEC ARCHITECTURE

CONTENTS

CONTENTS

CONTEXT

DESIGN CONCEPTSSite Plan > Main Floor Plan > Second Floor Plan > Field of Play Components

COST SUMMARY Opinion of Probable Costs

FINANCIAL ANALYSISSupply > Demand > Operating Forecasts > Scenarios > Sensitivity Analyses > Conclusions

APPENDIX A: Statement of Operations (Scenario 1) >

B: Statement of Operations (Scenario 2) > C: Statement of Operations (Scenario 3) >

D: Guiding Assumptions > E: Scenario Assumptions >

01

03

04

05

02

CONTEXT01

CONTEXT

01

8 | NIVERVILLE MULTI-PLEX

CONTEXT

STANTEC ARCHITECTURE | 9

The following report is intended to supplement the comprehensive efforts of the Friends of the Plex in researching and initiating a proposed Recreation Multi-Plex in the Town of Niverville. To date, these efforts include widespread public consultation, concept design development, and a preliminary cost estimate. To supplement this work, the Town of Niverville has retained Stantec Architecture to ensure the viability of funding the proposed development on the existing arena site. The condensed scope of work includes concept design development to align with the proposed Opinion of Probable Costs as well as an operating budget analysis based on three (3) scenarios.

The contexts of this report are intended to provide the Town of Niverville with a conceptual design overlay that makes sense based on capital funding limits and operational efficiencies, while maintaining the scope, work and spirit of the project initiated by the Friends of the Plex.

DESIGN CONCEPTS1.0 SITE (GENERAL) 2.0 SITE PLAN3.0 FLOOR PLANS3.1 Field of Play Components4.0 FUTURE DEVELOPMENT5.0 RECOMMENDATIONS

02

DESIGN CONCEPTS

02


1.0 Site (General)

The site is located at the Northwest side of the Town Niverville and is approximately 16 acres in size. There is room for adjacent uses and future development to the North and West. Railway lines border the East property line. There is residential development to the East of the Rail lines. The Niverville Curling Club (NCC) is located to the North of the existing Arena facility, dog run and outdoor playing fields also located North of the existing arena. An outdoor rink is located to the South.

2.0 Site Plan

The concept Site Plan is based on the assumption that there will be future development to the West, including a main drive aisle from the West. Future expansion considerations should to be reviewed as there may be synergies and shared use potential. The Hanover School Division is looking at possible sites for Middle years and High School. Building orientation & location are planned to allow for future building expansion to the North.

Site planning should consider (but not limited ) to the following: Zoning requirements, Sustainablity, water & sewer services/connections/capacity, storm water drainage, refuse & recycling enclosures, building fire separations, Geothermal field (if required) and parking lot development, including the quantity of parking stalls to accommodate present & future needs.

Once again, it will be important for the Town of Niverville to establish a strategy that addresses the existing Arena and Curling rink. With that being said, the concept design proposes a separate Link between the proposed Multi-Plex and the existing arena. The intent is to provide future flexibility and maintaining of recreation programming. The existing arena could be demolished or re-purposed with minimal impact to the proposed Multi-Plex.

DESIGN CONCEPTS


02


DESIGN CONCEPTS


02


3.0 Floor Plans

The concept design includes a Multi-use Ice Arena, Multi-use Fieldhouse facility and a Lobby/Administration component. In addition the design illustrates the future Ice-Resurfacer and Link connection expansions to the existing arena.

Planning should consider (but not limited ) to the following: Zoning, Sustainablity, Universal Design and Code compliance.

The proposed arena consists of a two storey facility which includes seating for approximately 500 spectators. The main floor includes an 85’ x 200’ multi-use Ice Pad, Change rooms complete with ensuite washrooms & showers, Official’s room complete with ensuite washrooms & showers, First Aid room, Storage rooms, Mechanical & Electrical rooms and Ice-Resurfacer/Ice Plant/ Building Services rooms.

The second floor includes a viewing & circulation concourse, Multi-Purpose (MPR) rooms complete with storage areas, Meeting rooms, public Washrooms and Mechanical & Electrical rooms.

The proposed two storey multi-use Fieldhouse facility includes, Change rooms complete with ensuite washrooms & showers, Official’s room complete with ensuite washrooms & showers, Storage rooms, Mechanical & Electrical rooms, seating for approximately 120 spectators and a multi-use court. The second floor includes a 2-3 lane Walking/Running Track.

The Lobby/Administration components tie the proposed Multi-use Ice Arena and Multi-use Fieldhouse facilities together. This area includes multi-use Lobby area, Administration zone, Community Display area, Canteen/Concessions, public Washrooms, viewing/seating areas, Play Area zones and vertical circulation (elevators & stairs).

3.1 Field of Play (FOP)

The Field of Play (FOP) components illustrate the possible court configurations for the multi-use fieldhouse facility. The uses include (but not limited to) recommended 5 v 5 format soccer, volleyball, basketball and badminton.

4.0 Future Development

The concept plans also show future development areas that could be designed for a future tenant space, additional ice pad and/or other uses.

5.0 Recommendations

It is recommended that an overall Recreation Master Plan be developed to guide the Town of Niverville in development of the area over the next five to 10 years. It may provide the framework for guiding the development, delivery and continuous improvement of Recreation’s programming and facilities.

In addition, a Master Plan of the site should be undertaken to guide the development of the immediate site and future expansion. This should include both outdoor & indoor recreational facilities.

Perhaps the Town of Niverville may want to complete Feasibility Condition Assessments of the existing Hockey arena & Curling rink to review the long term goals of the Town of Niverville. These reports should be read in conjunction with each other and intended to guide the Town of Niverville on how to best allocate funds to address maintenance, operational and functional space requirements.

It is also recommended that the Town of Niverville establish a Post-Disaster relief plan and a Universal Design policy as these items may impact future recreational facility development and construction.

DESIGN CONCEPTS


COST SUMMARY1.0 OPINION OF PROBABLE COSTS

03

COST SUMMARY

03


1.0 Opinion of Probable Costs

For the purposes of this study we have developed a preliminary Opinion of Probable Costs summary that has aligned the building design with an overall Project Cost ceiling. The proposed Opinion of Probable Costs is intended as a Class D estimate only. There will be a need to have more detailed costing as the project progresses at different milestones in the design process, regardless of procurement strategy. The Opinion of Probable Costs assumes some unique factors associated with the Town of Niverville and the local construction trades being involved. This Opinion of Probable Costs takes into account overall Project Costs excluding applicable Taxes, Furnishings and Equipment and Land Acquisition Costs. A 5% contingency is included at this time. Additional allowances are provided that include limited site development cost and basic Architectural/Engineering Consulting Fees. The values are based on 2016 Construction.

COST SUMMARY


Opinion of Probable CostsTown of NivervilleBased on Revised Concept Plans (16.04.07)

Item Units Quantity Unit Price Cost Totals

A. New Arena 1 Arena Main level (Participant) - 500 Seating sq. ft. 31,710 $160 $5,073,600

85' x 200' Multi-use Ice Pad

5 Full size Dressing Rooms

1 large Officials Dressing Room

First Aid room

Storage/ Mechanical and Electrical

Ice Resurfacing/Ice Plant/Building Services

2 Arena Second Level (Spectator Concourse and Amnenities) sq. ft. 9,700 $90 $873,000

10' Concourse

Concessions//Public Washrooms

Meeting Area

2 MPR rooms

Storage Areas

Mechanical and Electrical

$5,946,600B. New Multi-use Fieldhouse Facility

1 Main Level - 120 seating sq. ft. 23,600 $210 $4,956,000

1 NCAA/FIBA Basketballor/2 Court Volleyball/ 1 Indoor Soccer/Multi-use

2 Full size Dressing Rooms

1 Officials Dressing Room

Mechancial and Electrical

Storage Area

2 Second Level sq. ft. 7,000 $120 $840,000

Walking/Running Track (10' width)

Viewing

$5,796,000C. Lobby/Administration

1 Main Level sq. ft. 10,500 $190 $1,995,000

Vestibule and Lobby

Male/Female/Universal Washrooms

Administration

Play Zone Areas (2)

Viewing Zones (2)

Elevator and Machine Room

Tenant Space (Not Included-Future)

$1,995,000D. Site Development

1 Allowance $500,000

$500,000

Subtotal $14,237,6005 % Contingency- includes marginal inflation $711,900Estimated Construction Cost $14,949,500

Design (7.0%) $1,046,500Subtotal $15,996,000Total Estimated Project Cost $15,996,000

FINANCIAL ANALYSIS1.0 SUPPLY2.0 DEMAND3.0 OPERATING FORECAST 3.1 Scenario 13.2 Scenario 23.3 Scenario 34.0 SENSITIVITY ANALYSES4.1 Ice Arena Rental Rates4.2 Low Growth Scenario5.0 CONCLUSIONS

04

FINANCIAL ANALYSIS

04


FINANCIAL ANALYSIS

Financial Analysis of Multi-plex Operations To support the Town of Niverville in their evaluation of the proposed multiplex, three (3) development scenarios have been established to undergo a more comprehensive operational analysis. These scenarios include:

Scenario 1: New Fieldhouse & New 11-Month Ice Arena

Scenario 2: New Fieldhouse & New 6.5 Month Ice Arena

Scenario 3: New Fieldhouse Only

Each of these scenarios will be evaluated based on overall revenue potential as well as anticipated operating expenses. From a revenue perspective, the dynamics of supply and demand are perhaps the most important criteria to consider. Meanwhile, operating expenses will differ based on specific efficiencies and the potential to share staff and resources among the various multiplex components. With these principles in mind, the following sections will outline the key implications of supply and demand along with the associated operating expenses, which will enable detailed forecasts and supporting conclusions.

1.0 Supply Generally speaking, supply is dependent on a facility’s operating hours and length of season. Other considerations include holiday closures, maintenance requirements, and set-up/configuration time. For the purposes of this study, the supply analysis is focused on the proposed fieldhouse, which is assumed to operate on an hourly basis, with scheduling allowances for configuration when necessary. Beyond the total hourly availability, supply can be characterized as being prime time or non-prime time based on the time of day and season. With this understanding, the proposed fieldhouse is anticipated to offer a total supply of 2,760 prime time hours and 2,893 non-prime time hours (Figure 1).

Figure 1 – Total Fieldhouse Supply

Units

Hours 4:00pm - 10:00pm Weekdays

6:00am - 10:00pm Weekends

6:00am - 3:00pm Weekdays

6:00am - 10:00pm (July - August)

Hours/Day 7 17 10 17Hours/Week 35 34 50 119Hours/Season 1400 1360 2000 893Total Hours* Assumed 47.5 week season to account for holiday closures and maintenance time

Prime Non-Prime

2,760 2,893


04 2.0 Demand Demand for recreation services is dependent on a number of factors that include population, age, gender, education, ethnicity, household composition, and economic status, among others. In the context of this study, the most influential attributes of demand relate to the overall demand for field of play rentals in the fieldhouse and spring/summer ice in an ice arena that operates for 11 months per year. To efficiently establish as basis for demand, a heuristic analysis of total population, facility utilization, and the availability of substitute facilities has been completed to project local and regional demand (Figure 2).

Figure 2 – Summary of Annual Fieldhouse Demand

Item Prime Time Non-Prime Time

Total Supply 2,760 2,893

Local Demand* 690 228

Regional Demand** 910 300

Surplus Capacity 1,160 2,365 *Local prime demand represents 25% of prime hours; non-prime at 33% of prime demand **Regional demand at 33% of prime hours based on immediate catchment area of 8,000 supported by current recreation participation data

Overall, the fieldhouse demand analysis demonstrates the ability to cater to local needs while attracting users from the regional catchment area and beyond. Given this understanding, the Town of Niverville can adopt a number of specific operating strategies that range from offering advance bookings to local user groups to the adoption of resident and non-resident pricing.

With respect to indoor ice utilization, demand for spring/summer ice generally declines in comparison to fall/winter ice. This trend is influenced by typically shorter programs, a shift to outdoor activities, and other commitments such as family holidays. For the purposes of this study, it has been assumed that a new arena would maintain the current operating model and utilization, while the demand for spring/summer ice would decline approximately 40%.

3.0 Operating Forecasts With an understanding for supply and demand established, the findings can be applied to an overall operating model to identify key implications and evaluate rental rates and other assumptions, if required. Going forward, it is recommended that the Town of Niverville adopt a resident price structure based on current market rates. Within this structure, residents should be offered a discounted rate versus a non-resident premium for two (2) primary reasons. First, given the anticipated surplus capacity, this model will ensure that the facility remains competitive in the regional marketplace and is attractive to non-resident users. Second, a discounted resident price structure will create an incentive for partnerships with other users including neighbour municipalities and the school division. Based on this recommendation, the following price structure for fieldhouse rentals has been established to guide the analysis (Figure 3).


FINANCIAL ANALYSIS

Figure 3 – Baseline Fieldhouse Rental Structure

USER TYPE HALF FIELD RATE FULL FIELD RATE

Resident Prime $80/hour $140/hour

Resident Non-Prime $60/hour $80/hour

Non-Resident Prime $100/hour $175/hour

Non-Resident-Non Prime $75/hour $100/hour

Beyond primary field of play rentals, a number of additional revenue opportunities exist, which include: Multi-Purpose Room (MPR) rentals, memberships and day passes to the walking track and playground, special event rentals, canteen revenues, advertising, and naming rights. Each of these items has been outlined in a detailed analysis for each scenario (Appendices A, B, and C) with supporting assumptions (Appendices E and F). In addition to the revenue opportunities identified, it is important to consider the substantial population growth within the local community and surrounding areas. While population growth will no doubt benefit the proposed multiplex operations, it is assumed that the majority of new programs will be developed during the construction and early occupancy periods, and that new residents will join existing programs in subsequent years. While a 2% annual rate increase has been assumed to address the effects of inflation, price increases could be omitted at the Town’s discretion as population growth and new programs drive additional revenue. As such, the incremental impacts of rate increases are assumed to neutralize the impacts of population growth for the purposes of this study.

While detailed analyses are included in the report’s appendices, an independent overview of each scenario is provided to establish greater clarity and to outline specific implications.

3.1 Scenario 1 From a financial perspective, Scenario 1 demonstrates the greatest operating performance and is influenced by a number of factors. Specifically, Scenario 1 benefits from greater overall advertising and naming rights potential given the extent of development and year-round traffic it will generate. Although the cost of summer ice is anticipated to outweigh the direct rental revenues, its presence will likely drive a number of other efficiencies including the ability to share staff and resources on a year-round basis, reduced utility costs through waste heat recapture from the ice plant, and increased canteen revenue. Overall, Scenario 1 is forecast to achieve a Year 1 deficit of approximately $17,000 (Figure 4), which, if the existing arena is decommissioned, would result in a total savings of more than $57,000. Beyond the specific Year 1 implications, it is important to consider the effects of future maintenance expense increases as the facility ages and warranties expire. Without significant growth in programs, a Year 10 deficit of nearly than $49,000 is projected.


04

Figure 4 – Scenario 1 Operating Summary

3.2 Scenario 2 As outlined in Scenario 1 above, Scenario 2 demonstrates the improved financial performance of the ice arena that is offset by the added costs of year-round fieldhouse operations. Specifically, added part-time summer staff requirements and less efficient utilities (combined with reduced advertising and naming rights revenue) will contribute to a forecasted Year 1 deficit of nearly $42,000 (Figure 5). Again, this is an improvement over the current level of subsidization but an increase when compared to Scenario 1. Over time, however, 11-month use of the ice arena is likely to drive added maintenance costs that will narrow the financial gap between Scenario 1 and Scenario 2.


Item Current Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10RevenuesIce Arena $91,469 $200,046 $202,619 $205,243 $207,920 $210,650 $216,177 $219,018 $221,915 $224,870 $227,885Fieldhouse $0 $352,055 $357,592 $363,239 $369,000 $374,875 $383,045 $389,158 $395,394 $401,754 $408,241

Sub-Total $91,469 $552,101 $560,211 $568,482 $576,919 $585,525 $599,223 $608,176 $617,309 $626,624 $636,126ExpensesIce Arena $165,866 $248,903 $254,337 $259,899 $265,590 $271,415 $277,377 $283,480 $289,727 $296,122 $302,669Fieldhouse $0 $320,381 $325,886 $331,844 $338,200 $344,914 $351,953 $359,294 $366,917 $374,809 $382,961

Sub-Total $165,866 $569,284 $580,224 $591,742 $603,790 $616,329 $629,331 $642,774 $656,644 $670,932 $685,630Surplus/Deficit ($74,397) ($17,183) ($20,013) ($23,260) ($26,871) ($30,804) ($30,108) ($34,598) ($39,336) ($44,308) ($49,505)

Item Current Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10RevenuesIce Arena $91,469 $121,084 $122,750 $124,449 $126,182 $127,950 $131,124 $132,963 $134,839 $136,752 $138,704Fieldhouse $0 $351,092 $356,629 $362,276 $368,037 $373,912 $381,982 $388,095 $394,330 $400,690 $407,177

Sub-Total $91,469 $472,176 $479,379 $486,725 $494,219 $501,862 $513,106 $521,058 $529,169 $537,443 $545,881ExpensesIce Arena $165,866 $151,762 $155,046 $158,406 $161,843 $165,360 $168,959 $172,641 $176,408 $180,264 $184,210Fieldhouse $0 $362,326 $368,417 $375,022 $382,079 $389,541 $397,369 $405,535 $414,016 $422,797 $431,866

Sub-Total $165,866 $514,089 $523,463 $533,428 $543,923 $554,901 $566,327 $578,175 $590,425 $603,061 $616,076Surplus/Deficit ($74,397) ($41,912) ($44,085) ($46,703) ($49,704) ($53,039) ($53,221) ($57,117) ($61,255) ($65,619) ($70,194)


FINANCIAL ANALYSIS

3.3 Scenario 3 Scenario 3 considers stand-alone fieldhouse operations and an operating environment that is similar to Scenario 2, minus a new and more efficient ice arena. Perhaps most significantly, Scenario 3 foregoes the more substantial advertising and naming rights opportunities afforded by a comprehensive redevelopment project. Overall, Scenario 3 has a projected Year 1 deficit of approximately $29,000 (Figure 6). When combined with the existing arena operations, Scenario 3 is forecast to produce a total deficit of more than $100,000.


4.0 Sensitivity Analyses Based on the study findings and through conversation with local representatives, two (2) sensitivity tests have been established to support decision-making. First, a review of ice arena rental rates has been identified as a priority. Second, an understanding of a low growth operating scenario has been identified for the purposes of evaluating risk and establishing a mitigation strategy.

4.1 Ice Arena Rental Rates

Given the ice arena’s current operating deficit, arena rental rates will be evaluated against the results of Scenario 1 to support future decision-making. Aside from public skating and drop-in programming, the existing ice arena revenues are broken down in Figure 7. In general, the arena operates during prime time only and has limited non-resident use.

Figure 7 – Current Ice Arena Revenues USER GROUP RATE HOURS REVENUE

Minor Hockey $95 501.25 $47,618.75

Rec. Hockey $95 36 $3,420

Skating Club $95 85.5 $8,122.50

Ringette $95 41 $3,895

Good Time Hockey League $125 100 $12,500

Lady Clippers Hockey $125 15 $1,875

Lady Clippers Ringette $125 7 $875

TOTAL 785.75 $78,306.25

Item Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Total Revenues $337,189 $342,726 $348,374 $354,134 $360,010 $368,079 $374,192 $380,428 $386,788 $393,275Total Expenses $365,621 $371,777 $378,449 $385,575 $393,106 $401,006 $409,244 $417,800 $426,657 $435,803Surplus/Deficit ($28,431) ($29,051) ($30,076) ($31,441) ($33,097) ($32,927) ($35,052) ($37,373) ($39,869) ($42,528)


04

To achieve break-even in Year 1 of Scenario 1 would require additional revenues of $17,183. Based on current utilization, generating these revenues would require rental rates increase by almost $22/hour. A cursory analysis of regional facilities reveals a number of rental policies, which include flat rate pricing, prime and non-prime pricing, non-resident pricing, and various youth prices (Figure 8).

Figure 8 – Regional Ice Arena Rental Rates

RENTAL TYPE RATE(S)

Prime $125

Non-Prime $100

Flat Rate $114 - $120

Minor/Youth $85 - $105

Non-Resident $175

Youth Game $105

Youth Practice $90

Provided the current hours of operation and limited out-of-town use, pricing strategies are limited. Based on the regional rates identified, perhaps the most appropriate strategy would be to adopt a youth game/practice price strategy. Assuming half of minor hockey and ringette hours are for practice, adopting a new rate of $105/game would result in increased revenues of just over $2,700 (Figure 9).

Figure 9 – New Rental Model

USER GROUP RATE INCREASE HOURS REVENUE

Minor Hockey $10 250.63 $2,506.25

Ringette $10 20.5 $205.00

TOTAL $271.13 $2711.25

While City of Winnipeg ice rental rates range from $120/hour for non-prime youth use to upwards of $275/hour, with standard prices being $198.50, local comparables are far more price competitive. Under the current operating model, the Town of Niverville has limited options to recover any deficit through a pricing strategy alone. Under a new model, the Town may wish to explore alternatives to offer non-prime ice and to accommodate non-resident users. These strategies could be more achievable with a new integrated facility that has staff on-site throughout the week to address user needs.


FINANCIAL ANALYSIS

4.2 Low Growth Scenario

Under the “most likely” demand scenario with a total facility utilization of 1,600 prime time hours, the fieldhouse is operated from 6:00am to 10:00pm Monday through Sunday. Subsequently, the established operating forecasts demonstrate relatively high expenses for items such as staffing, maintenance, materials, and utilities. Under a low growth scenario of approximately 950 prime hours, or less than 3 hours/day, field of play revenues would decrease by approximately $98,000 under the current assumptions. To mitigate these lower than anticipated revenues, the Town should consider revised hours of operation to limit their expenses. Options could include prime-time availability only, or shifting all weekday daytime programming to one day of the week. Based on the current assumptions, eliminating 4 part-time staff requirements would result in annual savings of $60,000. Ultimately, through efficient scheduling and staff utilization, along with reduced utilities, maintenance, and materials costs, a low growth scenario could have minimal impact on the bottom-line.

5.0 Conclusions The preceding analysis has demonstrated the importance of a highly successful campaign to drive facility advertising and naming rights. Furthermore, the projected fieldhouse demand is considerable and capable of sustaining a strong revenue base. This revenue base has been established on a resident/non-resident pricing model that is believed to appropriately reflect the current market environment and encourage the most desired results. Meanwhile, the greatest financial losses are generated by ice arena operations, which warrant further review and a focus on the overall rental strategy. Specifically, the Town of Niverville may wish to consider a prime and non-prime pricing model to support prime-time rate increases and encourage greater use of non-prime ice. This could be better accommodated by the integrated facility model with more efficient use of staff.

Overall, the financial operating analysis supports the development of Scenario 1, which better seizes opportunities to secure advertising revenues and naming rights, while supporting a number of operating efficiencies. With this in mind, it will be important for the Town of Niverville to establish a strategy that addresses the existing arena. The operating forecasts outlined in this study are largely independent of the existing arena’s operations and it is uncertain whether there is sufficient demand to support two (2) ice arenas in Niverville. Going forward, a greater understanding of demand is required. Local demand can be gauged through a consultation process with existing user groups that focuses on current unmet demand. Furthermore, non-resident groups and new programs could be evaluated by requesting letters of intent for future use. Without adequate demand, revenues in the existing arena could decrease significantly as programs shift to the contemporary new facility. This added financial risk would likely result in increased subsidy requirements for the existing arena. In the event the Town decides to maintain their options, by not programming or decommissioning the existing arena, the facility would be subject to a certain level of maintenance and utility costs, as well as taxes and insurance. These costs could exceed $50,000 annually.


APPENDIXA STATEMENT OF OPERATIONS (SCENARIO 1)B STATEMENT OF OPERATIONS (SCENARIO 2)C STATEMENT OF OPERATIONS (SCENARIO 3) D GUIDING ASSUMPTIONS E SCENARIO ASSUMPTIONS

05

APPENDIX

05


APPENDIX


Appendix A: Statement of Operations (Scenario 1)Revenues 2015 (Actual) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Ice ArenaIce Rentals1 $81,653 $128,637 $131,209 $133,833 $136,510 $139,240 $142,025 $144,866 $147,763 $150,718 $153,733Canteen Lease2 $1,200 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Advertising3 $8,616 $26,352 $26,352 $26,352 $26,352 $26,352 $29,095 $29,095 $29,095 $29,095 $29,095Naming Rights4 $0 $45,058 $45,058 $45,058 $45,058 $45,058 $45,058 $45,058 $45,058 $45,058 $45,058

Sub-Total $91,469 $200,046 $202,619 $205,243 $207,920 $210,650 $216,177 $219,018 $221,915 $224,870 $227,885Fieldhouse

Field of Play Rentals5 $0 $243,373 $248,241 $253,206 $258,270 $263,435 $268,704 $274,078 $279,559 $285,151 $290,854MPR Rentals6 $0 $9,240 $9,425 $9,613 $9,806 $10,002 $10,202 $10,406 $10,614 $10,826 $11,043Memberships & Day Passes7 $0 $18,225 $18,590 $18,961 $19,341 $19,727 $20,122 $20,524 $20,935 $21,353 $21,781Special Events8 $0 $6,000 $6,120 $6,242 $6,367 $6,495 $6,624 $6,757 $6,892 $7,030 $7,171Canteen Lease9 $0 $4,833 $4,833 $4,833 $4,833 $4,833 $5,336 $5,336 $5,336 $5,336 $5,336Advertising10 $0 $16,080 $16,080 $16,080 $16,080 $16,080 $17,754 $17,754 $17,754 $17,754 $17,754Naming Rights11 $0 $54,304 $54,304 $54,304 $54,304 $54,304 $54,304 $54,304 $54,304 $54,304 $54,304

Sub-Total $0 $352,055 $357,592 $363,239 $369,000 $374,875 $383,045 $389,158 $395,394 $401,754 $408,241Total Revenues $0 $552,101 $560,211 $568,482 $576,919 $585,525 $599,223 $608,176 $617,309 $626,624 $636,126Expenses

Ice ArenaSalaries, Wages & Benefits12 $67,824 $124,345 $126,832 $129,368 $131,956 $134,595 $137,287 $140,032 $142,833 $145,690 $148,603Training13 $500 $917 $935 $954 $973 $992 $1,012 $1,032 $1,053 $1,074 $1,096Gas & Hydro14 $32,512 $47,650 $48,603 $49,575 $50,566 $51,577 $52,609 $53,661 $54,734 $55,829 $56,946Other Utilities15 $10,070 $15,865 $16,182 $16,506 $16,836 $17,173 $17,516 $17,866 $18,224 $18,588 $18,960Materials & Supplies16 $7,108 $11,198 $11,422 $11,651 $11,884 $12,122 $12,364 $12,611 $12,863 $13,121 $13,383Maintenance17 $23,351 $22,815 $23,727 $24,677 $25,664 $26,690 $27,758 $28,868 $30,023 $31,224 $32,473Insurance18 $23,000 $24,515 $25,006 $25,506 $26,016 $26,536 $27,067 $27,608 $28,160 $28,724 $29,298Taxes19 $1,500 $1,599 $1,631 $1,663 $1,697 $1,731 $1,765 $1,801 $1,837 $1,873 $1,911


Salaries and Wages20 $0 $186,000 $189,720 $193,514 $197,385 $201,332 $205,359 $209,466 $213,656 $217,929 $222,287Training21 $0 $7,154 $5,723 $4,578 $3,663 $2,930 $2,344 $1,875 $1,500 $1,200 $960Gas & Hydro22 $0 $21,372 $21,799 $22,235 $22,680 $23,134 $23,596 $24,068 $24,550 $25,041 $25,542Other Utilities23 $0 $15,008 $15,308 $15,614 $15,926 $16,245 $16,570 $16,901 $17,239 $17,584 $17,936Materials & Supplies24 $0 $21,187 $21,611 $22,043 $22,484 $22,933 $23,392 $23,860 $24,337 $24,824 $25,320Maintenance25 $0 $33,590 $34,933 $36,331 $37,784 $39,295 $40,867 $42,502 $44,202 $45,970 $47,809Insurance26 $0 $33,862 $34,539 $35,230 $35,935 $36,654 $37,387 $38,134 $38,897 $39,675 $40,468Taxes27 $0 $2,208 $2,253 $2,298 $2,344 $2,390 $2,438 $2,487 $2,537 $2,587 $2,639

Sub-Total $0 $320,381 $325,886 $331,844 $338,200 $344,914 $351,953 $359,294 $366,917 $374,809 $382,961Total Expenses $165,866 $569,284 $580,224 $591,742 $603,790 $616,329 $629,331 $642,774 $656,644 $670,932 $685,630Surplus/Deficit ($74,397) ($17,183) ($20,013) ($23,260) ($26,871) ($30,804) ($30,108) ($34,598) ($39,336) ($44,308) ($49,505)

05


Appendix B: Statement of Operations (Scenario 2)Revenues 2015 (Actual) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Ice ArenaIce Rentals1 $81,653 $83,286 $84,952 $86,651 $88,384 $90,151 $91,954 $93,793 $95,669 $97,583 $99,534Canteen Lease2 $1,200 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0Advertising3 $8,616 $13,176 $13,176 $13,176 $13,176 $13,176 $14,547 $14,547 $14,547 $14,547 $14,547Naming Rights4 $0 $24,623 $24,623 $24,623 $24,623 $24,623 $24,623 $24,623 $24,623 $24,623 $24,623


Field of Play Rentals5 $0 $243,373 $248,241 $253,206 $258,270 $263,435 $268,704 $274,078 $279,559 $285,151 $290,854MPR Rentals6 $0 $9,240 $9,425 $9,613 $9,806 $10,002 $10,202 $10,406 $10,614 $10,826 $11,043Memberships & Day Passes7 $0 $18,225 $18,590 $18,961 $19,341 $19,727 $20,122 $20,524 $20,935 $21,353 $21,781Special Events8 $0 $6,000 $6,120 $6,242 $6,367 $6,495 $6,624 $6,757 $6,892 $7,030 $7,171Canteen Lease9 $0 $3,870 $3,870 $3,870 $3,870 $3,870 $4,273 $4,273 $4,273 $4,273 $4,273Advertising10 $0 $16,080 $16,080 $16,080 $16,080 $16,080 $17,754 $17,754 $17,754 $17,754 $17,754Naming Rights11 $0 $54,304 $54,304 $54,304 $54,304 $54,304 $54,304 $54,304 $54,304 $54,304 $54,304

Sub-Total $0 $351,092 $356,629 $362,276 $368,037 $373,912 $381,982 $388,095 $394,330 $400,690 $407,177Total Revenues $91,469 $472,176 $479,379 $486,725 $494,219 $501,862 $513,106 $521,058 $529,169 $537,443 $545,881Expenses

Ice ArenaSalaries, Wages & Benefits12 $67,824 $69,181 $70,564 $71,976 $73,415 $74,884 $76,381 $77,909 $79,467 $81,056 $82,677Training13 $500 $510 $520 $531 $541 $552 $563 $574 $586 $598 $609Gas & Hydro14 $32,512 $25,991 $26,510 $27,041 $27,582 $28,133 $28,696 $29,270 $29,855 $30,452 $31,061Other Utilities15 $10,070 $10,272 $10,477 $10,687 $10,900 $11,118 $11,341 $11,568 $11,799 $12,035 $12,276Materials & Supplies16 $7,108 $7,250 $7,395 $7,543 $7,694 $7,848 $8,005 $8,165 $8,328 $8,495 $8,665Maintenance17 $23,351 $12,444 $12,942 $13,460 $13,998 $14,558 $15,141 $15,746 $16,376 $17,031 $17,712Insurance18 $23,000 $24,515 $25,006 $25,506 $26,016 $26,536 $27,067 $27,608 $28,160 $28,724 $29,298Taxes19 $1,500 $1,599 $1,631 $1,663 $1,697 $1,731 $1,765 $1,801 $1,837 $1,873 $1,911


Salaries and Wages20 $0 $216,000 $220,320 $224,726 $229,221 $233,805 $238,481 $243,251 $248,116 $253,078 $258,140Training21 $0 $8,308 $6,646 $5,317 $4,254 $3,403 $2,722 $2,178 $1,742 $1,394 $1,115Gas & Hydro22 $0 $24,660 $25,153 $25,656 $26,169 $26,693 $27,227 $27,771 $28,327 $28,893 $29,471Other Utilities23 $0 $22,512 $22,962 $23,421 $23,889 $24,367 $24,855 $25,352 $25,859 $26,376 $26,903Materials & Supplies24 $0 $21,187 $21,611 $22,043 $22,484 $22,933 $23,392 $23,860 $24,337 $24,824 $25,320Maintenance25 $0 $33,590 $34,933 $36,331 $37,784 $39,295 $40,867 $42,502 $44,202 $45,970 $47,809Insurance26 $0 $33,862 $34,539 $35,230 $35,935 $36,654 $37,387 $38,134 $38,897 $39,675 $40,468Taxes27 $0 $2,208 $2,253 $2,298 $2,344 $2,390 $2,438 $2,487 $2,537 $2,587 $2,639

Sub-Total $0 $362,326 $368,417 $375,022 $382,079 $389,541 $397,369 $405,535 $414,016 $422,797 $431,866Total Expenses $165,866 $514,089 $523,463 $533,428 $543,923 $554,901 $566,327 $578,175 $590,425 $603,061 $616,076Surplus/Deficit ($74,397) ($41,912) ($44,085) ($46,703) ($49,704) ($53,039) ($53,221) ($57,117) ($61,255) ($65,619) ($70,194)

APPENDIX


Appendix C: Statement of Operations (Scenario 3)Revenues 2015 (Actual) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10Field of Play Rentals5 $0 $243,373 $248,241 $253,206 $258,270 $263,435 $268,704 $274,078 $279,559 $285,151 $290,854MPR Rentals6 $0 $9,240 $9,425 $9,613 $9,806 $10,002 $10,202 $10,406 $10,614 $10,826 $11,043Memberships & Day Passes7 $0 $18,225 $18,590 $18,961 $19,341 $19,727 $20,122 $20,524 $20,935 $21,353 $21,781Special Events8 $0 $6,000 $6,120 $6,242 $6,367 $6,495 $6,624 $6,757 $6,892 $7,030 $7,171Canteen Lease9 $0 $3,870 $3,870 $3,870 $3,870 $3,870 $4,273 $4,273 $4,273 $4,273 $4,273Advertising10 $0 $16,080 $16,080 $16,080 $16,080 $16,080 $17,754 $17,754 $17,754 $17,754 $17,754Naming Rights11 $0 $40,401 $40,401 $40,401 $40,401 $40,401 $40,401 $40,401 $40,401 $40,401 $40,401Total Revenues $0 $337,189 $342,726 $348,374 $354,134 $360,010 $368,079 $374,192 $380,428 $386,788 $393,275Expenses

FieldhouseSalaries and Wages20 $0 $216,000 $220,320 $224,726 $229,221 $233,805 $238,481 $243,251 $248,116 $253,078 $258,140Training21 $0 $8,308 $6,646 $5,317 $4,254 $3,403 $2,722 $2,178 $1,742 $1,394 $1,115Gas & Hydro22 $0 $27,955 $28,514 $29,084 $29,666 $30,259 $30,864 $31,482 $32,111 $32,754 $33,409Other Utilities23 $0 $22,512 $22,962 $23,421 $23,889 $24,367 $24,855 $25,352 $25,859 $26,376 $26,903Materials & Supplies24 $0 $21,186 $21,610 $22,042 $22,483 $22,932 $23,391 $23,859 $24,336 $24,823 $25,319Maintenance25 $0 $33,590 $34,934 $36,331 $37,784 $39,296 $40,867 $42,502 $44,202 $45,970 $47,809Insurance26 $0 $33,862 $34,539 $35,230 $35,935 $36,654 $37,387 $38,134 $38,897 $39,675 $40,468Taxes27 $0 $2,208 $2,253 $2,298 $2,344 $2,390 $2,438 $2,487 $2,537 $2,587 $2,639Total Expenses $0 $365,621 $371,777 $378,449 $385,575 $393,106 $401,006 $409,244 $417,800 $426,657 $435,803Surplus/Deficit $0 ($28,431) ($29,051) ($30,076) ($31,441) ($33,097) ($32,927) ($35,052) ($37,373) ($39,869) ($42,528)

05


Appendix D: Guiding AssumptionsGeneral AssumptionsA. Inflation constant at 2% to align with Bank of Canada target rateB. Annual rate increases to reflect inflationC. Forecasts are independent of existing arena operationsD. Advertising revenues derived from proposed matrix with 5 year terms; Renegotiated to reflect inflation E. One third of naming rights will be negotiated as advance payments to support the capital campaignF. 25% resident prime time use; 33% non-resident prime time use; Non-prime use = 33% of prime timeG. Memberships supported with RFID access; Local memberships @ RFID card costH. Utilities/Materials/Maintenance/Insurance/Tax expenses associated with lobby and entrance are tied to FieldhouseI. Recreation director remuneration is independent of this analysisJ. Current arena staff include 1 full-time foreman; 2 part-time in winterK. Staff sharing between arena and fieldhouse based on needL. Other utilities include: sewer & water, telecommunications, fuel, and other misc.M. 20% discount on resident fieldhouse rental rates

Universal Assumptions1. Winter ice rentals reflect current utilization and pricing2. Canteen lease reflected in fieldhouse operations3. Arena advertising to include 1 scoreboard/10 arena boards/2 ice/10 wall4. Campus @ $63k/year; Arena @ $25k/year; Lobby @ $12,500/year; 5 Dressing Rooms @ $900/year each5. Full field prime time rental @ $175/hour; Full field non-prime rental @ $100/hour; Half field prime @ $100/hour; half non-prime @ $75/hour; Use split 50/50 full to half field6. Transfer of existing programs with participation of 10+ @ $30/session7. Based on non-resident use @ 20 users/hour with 10% uptake; $10 monthly membership/$5 day pass; split 50/50 8. 3 resident events @ $800/day; 3 non-resident @ $1200/day; Based on opportunity cost9. Commercial lease of 430 ft2

10. Assumes 1 scoreboard; 1 net; 1 goal; 6 digital highway; 10 wall; Schedule provided with campus naming rights 11. Campus @ $63k/year; Fieldhouse @ $25k/year; Lobby @ $12,500/year; Playground @ $12,500/year; 2 MPR @ $2k/year; 2 Dressing rooms @ $900/year12. Derived from existing expenses based on length of season13. Based on current expenditures as percent of wages14. Based on area costs with specific scenario efficiencies15. Direct proportion of revenues demonstrating utilization requirements16. Direct proportion of revenues demonstrating utilization requirements17. Based on current area expenses with 50% allowance for new equipment/warranties; 4% annual increase reflects inflation and 50 year useful life18. Based on current area costs19. Based on current area costs20. Full-time maintenance technician @ $46k; Full-time administrative @ $35k; Full-time custodial @ $30k; Part-time @ $15k21. 2 weeks wages on 20% declining basis22. Average area cost of $0.80/ft2 based on comparables with specific scenario efficiencies23. Direct proportion of revenues demonstrating utilization requirements24. Direct proportion of revenues demonstrating utilization requirements25. Based on area expenses with 50% allowance for new equipment/warranties; 4% annual increase reflects inflation and 50 year useful life26. Based on current area costs27. Based on current area costs

APPENDIX


Appendix E: Scenario AssumptionsScenario 11. Spring/summer ice usage declines by 40% relative to fall/winter9. "Class C" lease @ $11.24/ft2 year; 5 year term renegotiated to reflect inflation13. Based on current staffing @ 11 months operations14. 25% efficiency achieved with geothermal and waste heat capture20. 1 Full-time maintenance; 1 full-time administrative; 1 full-time custodial; 5 part-time21. Two weeks wages on 20% declining basis22. 35% efficiency achieved through geothermal and 11 month waste heat capture23. 50% efficiency with new fixtures and shared use with arena

Scenario 23. Advertising revenues reduced 50% with shorter season4. Campus naming rights reduced 25% with shorter ice season; Arena naming rights reduced 50% with shorter season9. Lease @ $9.00/ft2; 5 year term renegotiated to reflect inflation14. 25% efficiency achieved with geothermal and waste heat recapture20. 1 full-time maintenance; 1 full-time administrative; 1 full-time custodial; 7 part-time22. 25% efficiency achieved with geothermal and 6 months waste heat capture23. 25% efficiency with new fixtures and 6 months shared use with arena

Scenario 39. Lease @ $9.00/ft2; 5 year term renegotiated to reflect inflation10. Naming rights for campus, fieldhouse, lobby, playground, and MPR reduced 50% without new arena development20. 1 full-time maintenance; 1 full-time administrative; 1 full-time custodial; 7 part-time22. 15% efficiency achieved with geothermal23. 25% efficiency with new fixtures and 6 months shared use with existing arena

c. 2016

Prepared by: STANTEC ARCHITECTURE

Stantec Architecture 311 - 500 Portage AvenueWinnipeg, ManitobaR3B 2B9

[ 204 ] 489-5900www.stantec.com

16.04.07 NIVERVILLE MULTI-PLEX FEASIBILITY...

Documents

Transcript of 16.04.07 NIVERVILLE MULTI-PLEX FEASIBILITY...