RECOMMANDATIONS DU RAPPORT

1. Que le Comité des services organisationnels et du développement économique recommande au Conseil d’approuver l’emplacement du Centre de service de Kinburn, situé au 5670, chemin Carp, comme site d’un nouvel aréna à West Carleton devant faire l’objet d’un examen dans le cadre du programme des partenariats public-privé (P3) de la Ville d’Ottawa.

2. Que le Comité des services organisationnels et du développement économique :

(a) autorise le personnel à entreprendre les démarches nécessaires à la publication d’une demande de propositions pour la conception, la construction et l’exploitation de l’aréna de Kinburn dans le cadre d’un partenariat public-privé (P3);

(b) donne instruction au personnel de faire rapport au Comité et au Conseil sur les principes et le cadre devant régir le partenariat public-privé avant de publier une demande de propositions pour ce projet.

BACKGROUND

On February 12th, 2003, in a report on the qualification of proponents for a public-private partnership project for new indoor ice surfaces, City Council approved the following motion:

That staff follow up on the Request for Qualifications received from two community groups within the former municipality of West Carleton and recommend on the feasibility of financing and constructing an ice surface outside of this P3 process.

The two community-based proposals were from the West Carleton Minor Hockey Association proposing a one-pad facility as an addition to the West Carleton Secondary School (WCSS), and the second was from the Carp Agricultural Society proposing a new one-pad facility on the fairgrounds linked to the existing W. Erskine Johnston Arena. These proposals did not qualify for the short list under the P3 terms and process established. However, in recognition of the community involvement and commitment shown by the proposals along with the capital reserves that were already in place in former West Carleton, staff was directed to consider these proposals on their own merits and to identify a preferred site for a new indoor ice surface in West Carleton.

On a City-wide basis, the need to develop additional ice surfaces is well documented and is illustrated by extensive community support and demand for new facilities. The Facility Needs Study recently completed by the City indicated a need for up to ten new ice surfaces over the coming decade, based on a Council-approved community infrastructure framework arena service ratio of 1:20,000. By September 2005, the equivalent of 41 community ice surfaces will be in operation, serving a City population estimated at 875,000. This translates to a ratio of 1:23,700. By 2007, the City's population is expected to reach 920,000, which will require a total of 46 arenas to meet the approved service level. Consequently, an additional 4 ice surfaces will have to come on-line by 2007 to maintain arena service ratios.

It is important to note that several existing community arenas are approaching the end of their facility life. The west end Belltown Dome arena is scheduled to be de-commissioned by the end of 2006, and two other centennial-era arenas are scheduled to be taken off-line by 2009. Such imminent arena closings will put additional pressure on the City to develop new arena facilities across the city.

On a district and community basis, the former municipality of West Carleton had long recognized a lack of arena facilities to meet the demand of local users, and had accumulated capital reserves for the future construction of a new arena in the municipality. Based on these reserves, in September 2003, Council approved a new capital project entitled “West Carleton Arena” in the amount of $1.165 million for the planning, design and construction of the facility.

Site Selection Process

In the summer of 2003, Parks and Recreation staff initiated a site selection process to evaluate the two sites proposed by West Carleton community groups for a new arena facility:

1. West Carleton Secondary School (WCSS), Dunrobin Road

2. Carp Fairgrounds, Carp Road

Staff developed ten site evaluation criteria to define objective characteristics of the “ideal” site for a new arena in West Carleton. The ten draft criteria were:

Criteria	Application
Centrality to area population	Sites that are generally central to the various population areas within West Carleton will be scored higher
Building development and site services	Sites that have normal development, infrastructure and servicing costs will be scored higher
Constraints on timing/cost of development	Sites without constraints that may contribute to significant delays in construction and therefore affect timing of development will be scored higher
Suitability for current needs and future expansion	Sites that will accommodate the planned facility, the required parking, and future expansion will be scored higher
Integrated and coordinated programming	Sites where adjacent land uses complement the facility, and contribute to an enhanced or integrated level of service for users, will be scored higher
Outlying settlement areas	Sites in outlying population centres within West Carleton at a distance from existing arena facilities will be scored higher
Environmental impact	Sites where the proposed facility will be compatible with surrounding land uses will be scored higher
Proximity to major traffic routes in West Carleton	Sites where at least one boundary fronts on a major arterial road that could provide direct access will be scored higher
Site acquisition/value	Sites with low acquisition costs will be scored higher
Significant operational cost savings	Sites where there are opportunities that allow the City to more efficiently or effectively operate the facility in a manner that will contribute to long-term cost savings will be scored higher

In summer and fall 2003, engineering consultants were engaged to undertake a water supply, waste water (septic) and geotechnical review of the two sites to determine potential constraints and costs associated with development of an arena facility. This review was initiated to provide base data for the application of the site evaluation criteria.

In November 2003, a public open house was held at the Kinburn District Service Centre to present the draft site evaluation criteria to the West Carleton community and obtain input as to the validity and the relative importance of each of the criteria. During the open house, a survey was distributed to those in attendance. The survey listed the evaluation criteria in random order and requested that respondents rank them in order of importance. Well over one hundred members of the community attended the open house and a similar number completed and submitted the criteria ranking survey. The results were tabulated and produced the following ranking of criteria, in order of importance to the community:

1. Suitability for current needs and future expansion

2. Centrality to area population

3. Significant operational cost savings

4. Building development and site services

5. Integrated and coordinated programming

6. Proximity to major traffic routes in West Carleton

7. Site acquisition/value

8. Outlying settlement areas

9. Constraints on timing/cost of development

10. Environmental impact

While the community responded positively to the open house and participated fully in the ranking of site evaluation criteria, two dominant issues emerged from discussions with participants: 1) a desire to expand the evaluation beyond the two Council-directed sites, and; 2) an urgency to select a site in order to proceed to the development stage and rally the whole West Carleton community behind the project.

Residents of various West Carleton communities, such as Constance Bay, Fitzroy Harbour, Dunrobin and Kinburn, requested that sites in their communities also be considered and evaluated. Residents felt there was a lack of recreational facilities in the northern portion of the ward and that new facilities should not be located in the south where communities were already served by arena facilities.

In December 2003, a new Ward Councillor took office in West Carleton. In a meeting with Councillor El-Chantiry in January 2004, staff was asked to consider other optional sites for a new arena facility in West Carleton, based on the rationale that a more comprehensive evaluation would legitimize and expedite the site selection process. In order to ensure community support, a range of sites should be evaluated against the approved site selection criteria, including the Carp and WCSS sites. This comprehensive approach would allow Council to make an informed decision in accordance with its February 2003 directions.

Parks and Recreation and Real Property Asset Management staff subsequently developed an expanded list of sites in West Carleton that could accommodate a new arena facility. All sites with the exception of WCSS, are owned by the City.

· West Carleton Secondary School

· Carp Fairgrounds

· Dunrobin Community Centre

· Constance Bay Community Centre

· Kinburn District Service Centre

· Fitzroy Harbour Community Centre

Engineering consultants were retained to study the water, septic and geotechnical conditions of the additional sites to inform the evaluation process. Preliminary site plans were prepared for all sites to determine the impact of new arena facilities on each site.

With the completion of site plan and geotechnical studies in the summer of 2004, a staff project team evaluated each site on a point scale which reflected the relative importance of each criteria as determined by the community. This "weighted" evaluation produced the following results:

Site Evaluation Results

Site:	Points:
1. Carp Fairgrounds	49
2. Kinburn District Service Centre	49
3. Constance Bay Community Centre	37
4. Fitzroy Harbour Community Centre	36
5. Dunrobin Community Centre	34
6. West Carleton Secondary School	23

The following is a summary of the advantages and disadvantages of each site:

CARP FAIRGROUNDS 3832 Carp Road (3.0 ha)
Advantages	Disadvantages
o Twining with W. Erskine Johnston Arena	o Carp already served by existing arena
o Operational cost savings	o Relocation of ball diamond and outdoor rink required
o Integrated programming with Agricultural Fair	o One seasonal ice pad; one year-round ice pad
o Opportunity for tournament and multiple programming
o Existing municipal services
o On major road
o No site acquisition costs
o Would replace aging Huntley CC
o Reduced requirement for parking

The Carp site is ranked high based primarily on the potential to twin W. Erskine Johnston Arena and the availability of existing municipal water supply and sewer services. The Carp fairgrounds site can absorb a second ice surface, however this will concentrate all arena facilities in the southern area of West Carleton, leaving the central and northern area under-served. A second arena will also displace a ball diamond and the outdoor rink on the fairgrounds site.

KINBURN DISTRICT SERVICE CENTRE 5670 Carp Road (4.0 ha)
Advantages	Disadvantages
o Suitable size for twin pad facility	o Well water treatment required
o Central to West Carleton population	o Higher cost anticipated for sewage disposal
o On major road	o Zoning amendment required
o No site acquisition costs
o Potential for integrated programming and operations with District Service Centre
o Reduced requirement for parking

The Kinburn site is ranked high due to its central location and the integration opportunities with the former West Carleton Town Hall (currently the District Service Centre). The site also can accommodate a twin arena, without displacing existing recreational facilities. The district service centre is a modern, attractive, functional but under-used facility. There is potential to physically link the former town hall to the new arena, creating joint recreational and community programming opportunities. There will be additional servicing and operating costs associated with well water and septic systems. Existing zoning is institutional, which will require amendment to add an arena as a permitted use.

CONSTANCE BAY COMMUNITY CENTRE 262 Len Purcell Drive (4.1 ha)
Advantages	Disadvantages
o Suitable size for twin pad facility	o Not on major traffic route, limited accessibility
o Under-serviced area	o Traffic impact on Constance Bay community
o No site acquisition costs	o Impact on environmentally sensitive Torbolton Forest
o Well water and soils for sewage disposal acceptable	o Development contrary to designated “Natural Environment Area” in Official Plan
	o Well water treatment required

The Constance Bay site was ranked lower due to its location in a residential community adjacent to an environmentally sensitive area (Torbolton Forest). While the site can accommodate a twin facility and associated parking, this would result in the loss of sportsfields, play areas or the skate board park. The Torbolton Forest would restrict the relocation of these facilities. The main advantage of an arena in Constance Bay is that it would offer recreational opportunities to a significant under-serviced residential area in West Carleton.

FITZROY HARBOUR COMMUNITY CENTRE 100 Clifford Campbell Street (5.8 ha)
Advantages	Disadvantages
o Suitable size for twin pad facility	o Not on major traffic route, limited accessibility
o Under-serviced area	o Traffic impact on Fitzroy Harbour community
o No site acquisition costs	o Well water treatment required
	o Higher cost anticipated for sewage disposal

The Fitzroy Harbour site is similarly disadvantaged as the Constance Bay location in that it is located on a local road in a residential area and would lose existing sportsfields should an arena facility and associated parking be developed on site. There would be additional servicing and operating costs associated with well water and septic systems. An arena located in Fitzroy Harbour would, however benefit the under-served northern area of West Carleton.

DUNROBIN COMMUNITY CENTRE 1151 Thomas Dolan Parkway (3.9 ha)
Advantages	Disadvantages
o Central to West Carleton population	o Loss of sportsfields to accommodate new facility
o Under-serviced area	o Requirement to purchase adjacent property to accommodate facility and relocate sportsfields
o On major road	o Potential impact on adjacent residences
o Well water and soils for sewage disposal acceptable	o Rezoning required for adjacent property

The Dunrobin Community Centre site scored lower in the evaluation due to a requirement to purchase adjacent property to accommodate the arena facility and associated parking, without loss of existing sportsfields. The adjacent property would require re-zoning to permit the arena development, which would impact adjacent residences. The primary advantage of the site is a location in an under-served area, central to West Carleton.

WEST CARLETON SECONDARY SCHOOL 3088 Dunrobin Road
Advantages	Disadvantages
o Integrated programming with school facilities	o High cost of water supply and treatment
o Reduced requirement for parking	o High cost of septic system upgrade and expansion
o Central to West Carleton population	o No opportunity for future twinning – single pad only
o Under-serviced area	o Loss of sportsfields to accommodate facility
o On major road	o Loss of revenue during school use
o No site acquisition costs

The West Carleton Secondary School site scored the lowest in the evaluation primarily due to the serious challenges of water supply and waste treatment. Poor water quality on-site would necessitate securing a well source off-site and piping water a significant distance to the arena facility, at a high capital and annual operating cost. The existing school septic system would have to be upgraded and expanded to accommodate the new facility. Unless WCSS would accept the loss of sportsfields, the site could only accommodate a single ice pad. The main benefits of the site are a central Dunrobin location and programming opportunities with WCSS.

ANALYSIS

The results of the evaluation show that the Carp Fairgrounds and the Kinburn District Service Centre were tied as the two highest ranked sites. While both would make viable sites for a new arena facility in West Carleton, the Kinburn site is preferred, based on the following rationale:

Capital Funding

There is $1.1 million available in the approved capital project and $600,000 collected in development charges, for a total of $1.7 million available for the development of a new arena facility in West Carleton. The community and the ward councillor have committed to fundraise an additional $500,000 for the project, for a total of $2.2 million available in capital funding.

A new single pad linked to W. Erskine Johnston Arena in Carp is estimated to cost $6 - 8 million, while a new twin pad facility in Kinburn is estimated at $12 - 14 million, resulting in a capital shortfall of $4 - 6 million for the Carp option and $10 - 12 million for Kinburn. The City's Community Infrastructure Strategy and the long-range capital forecast would not foresee new capital funding for this initiative before 2008. Unless alternative sources of capital funding are found, a new municipally funded arena facility in West Carleton would not open until 2010 at the earliest.

Public Private Partnership (P3) Option

There has been recent significant, unsolicited interest shown by the private sector to develop and operate a new arena facility in West Carleton in partnership with the City. The Kinburn site represents an opportunity for P3 delivery of a new twin arena facility, while the Carp site is best suited to a traditional municipal/community delivery model. The Kinburn site has vacant land and an under-used district service centre, providing potential for innovative design and integrated facility operations. As Carp's W. Erskine Johnston Arena is City-owned and operated, it would be more appropriate for the City to fund and operate a second ice surface linked to the existing facility.

Should Council approve a P3 implementation strategy for a new arena facility at Kinburn, no new City capital funding would be required. A best-case scenario could see a new twin pad arena at Kinburn in operation by the end of 2006, if implemented through a P3 initiative. A new City funded arena in Carp would be unlikely to open before 2010.

Community Programming

The Kinburn site offers potential for community-wide integration of recreation and municipal services. The Kinburn District Service Centre is centrally located in West Carleton and, befitting its former role as a Town Hall, has the potential to be a focal centre for the whole West Carleton community. The district service centre has under-used capacity that could offer cross-programming and operations opportunities for P3 arena proponents. A new arena facility should complement the distinctive rural architecture of the former town hall and help ensure the long-term viability of this community facility.

The Carp site offers limited opportunity for local area integration of services. The twinning of the Carp arena would involve the replacement of the Huntley Community Centre and its local programming functions.

Community Input:

A public meeting was held on September 29^th, 2004 to present the results of the site evaluations and the proposed implementation strategy. Overall, the residents in attendance at the public meeting reacted positively to the evaluation results and staff's recommendation of the Kinburn District Service Centre as the site for a new twin pad arena, developed as a P3 project. There was considerable disappointment expressed by the proponents of the West Carleton Secondary School site, most notably by students who presented a petition to the Ward Councillor requesting that the arena be located at the school. After much discussion, there was general acceptance that the WCSS site was not a viable option given the site's significant water supply and waste treatment challenges.

The prevailing sentiment at the public meeting was to put the site selection issue to rest and proceed with implementation of an arena facility to serve the needs of West Carleton users as quickly as possible. As the Kinburn P3 option had the potential to deliver a new facility several years ahead of City funded facilities in Carp or elsewhere, there was strong support for this option.

The public meeting also saw a re-commitment by the community to raise $500,000 in funding to support the arena project.

P3 Implementation Strategy:

Incentives:

A business case can be made for a twin ice pad facility in Kinburn. Based on the current community demand for ice time in West Carleton and the west end in general, staff have estimated that if a new twin ice pad were in operation today at Kinburn, 90% of all prime ice time (weekends and weekday evenings) during the regular season (October 1^st to March 31^st) would be booked. A Kinburn facility open in 2007 would see 100% of prime ice time booked, based on projected population increases and demand.

The City has recently executed five P3 agreements where risk was shared between the municipality and the private sector. Two of these agreements involved the development of arena facilities, where the City was granted a fixed amount of community ice time within the facility in exchange for the municipality guaranteeing the long-term loan on the property.

In these two agreements, initial capital outlay from the City was avoided, however financial incentives may be a useful tool to gain the interest of investors in advancing the development of a West Carleton arena facility. Other incentives that can be leveraged include the City's vacant land at the Kinburn site as well as the existing district service centre facility, which could be leased in whole or in part to a P3 proponent. The benefit of including the district service centre in the partnership would be to give the proponent the ability to link the existing building with the new arena to integrate the space required for the profitable operation of the total facility. Potential uses of the district service centre include, assembly, banquet and meeting space and/or training, clinic, office and storage space. Any benefit to the developer under this option would translate into a greater amount or lower cost of community ice time for the City.

Request for Proposals:

To advance the development of a new arena facility at the Kinburn District Service centre, staff is proposing that a Request for Proposals (RFP) be prepared and released once appropriate incentives are determined. The RFP could include all of the City lands at 5670 Carp Road and the district service centre. In return the City would receive a defined amount of community ice time as per the conditions that would be included in the RFP and further negotiated in a partnership agreement.

In developing the RFP, it is necessary to clearly identify the goals and objectives of the City in entering into a possible partnership with a private sector partner and understand the principles and framework that will underlie the development of a successful partnership. Staff will report back to Committee and Council in early March 2005 with the proposed principles for the partnership and the framework for the RFP.

Next Steps and Timelines:

Should council approve a P3 implementation strategy for a new arena facility at the Kinburn District Service Centre, the following implementation timeline is anticipated:

• City Council Approval and Issuance of RFP March 2005

• Selection of Preferred Partner May 2005

• City Council Approval to Negotiate Agreement June 2005

• Complete Negotiations with Preferred Partner, incl. Public Consultation Nov. 2005

• Complete Construction Nov. 2006

• Facility Open Dec. 2006

ENVIRONMENTAL IMPLICATIONS

A preliminary site plan prepared for a twin arena on the Kinburn District Service Centre site indicates that the facility and required parking can be accommodated without significant environmental impact. Any minor impacts will be identified and mitigated through the site plan control process.

RURAL IMPLICATIONS

The Kinburn District Service Centre is the site of the former West Carleton Town Hall and acts as the municipal service point for this western rural community. The addition of a new arena facility will complement and reinforce the Kinburn site as a multi-service centre for the rural residents of West Carleton. The Kinburn site is zoned institutional and will require a zoning amendment to add an arena as a permitted use.

CONSULTATION

Two public meetings were held as part of the site selection process for a new arena facility in West Carleton. The first was held in November 2003 to review and rank draft site evaluation criteria in order of importance to the community. A survey was distributed at the meeting and over one hundred surveys were completed and returned. The second meeting was held in September 2004 to present the results of the site evaluation, the recommended site and the proposed means of implementation.

FINANCIAL IMPLICATIONS

There are no financial implications to the approval of the recommendations of this report.

DISPOSITION

Staff will prepare the proposed P3 principles and framework for the project and report back to Council for authority to issue an RFP for a new arena facility at the Kinburn District Service Centre. Staff will prepare a zoning amendment application for the addition of an arena as a permitted use in the existing institutional zoning of the Kinburn Client Service Centre.

SUBJECT:	SITE SELECTION AND IMPLEMENTATION STRATEGY FOR THE DEVELOPMENT OF A NEW ARENA FACILITY IN WEST CARLETON

OBJET :	cHoix de l'emplaceMENT ET STRATÉGIE DE MISE EN OEUVRE EN VUE DE LA CONSTRUCTION D'UN ARÉNA À WEST CARLETON

CARP FAIRGROUNDS 3832 Carp Road (3.0 ha)

KINBURN DISTRICT SERVICE CENTRE 5670 Carp Road (4.0 ha)

CONSTANCE BAY COMMUNITY CENTRE 262 Len Purcell Drive (4.1 ha)

FITZROY HARBOUR COMMUNITY CENTRE 100 Clifford Campbell Street (5.8 ha)

Disadvantages

DUNROBIN COMMUNITY CENTRE 1151 Thomas Dolan Parkway (3.9 ha)

WEST CARLETON SECONDARY SCHOOL 3088 Dunrobin Road

ANALYSIS

CONSULTATION

FINANCIAL IMPLICATIONS