Report to/Rapport au :
Corporate Services and Economic Development
Committee
Comité des services organisationnels et du développement économique
and Council / et au Conseil
1 December 2009 / le 1 décembre 2009
Submitted by/Soumis par: Kent Kirkpatrick,
City Manager / Directeur municipal
Contact
Person/Personne ressource : Gordon MacNair, Director, Real
Estate Partnerships and Development Office/Directeur, Partenariats et Développement en
immobilier
(613)
580-2424 x 21217, Gordon.MacNair@Ottawa.ca
SUBJECT:
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OBJET :
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REPORT RECOMMENDATIONS
That the
Corporate Services and Economic Development Committee recommend that Council:
- Approve the
methodology to produce the long-term strategy outlined in this report for
a highest and best use analysis of the Ottawa Stadium;
- Approve the
short-term strategy for the interim use of the Ottawa Stadium as outlined
in this report; and
- Direct staff to
solicit “best offers to lease” from the two proponents, who have
approached the City on an unsolicited basis to utilize the Ottawa Stadium
facility in the short term, based on the minimum conditions to lease
described in the short-term strategy as outlined in this report.
RECOMMANDATION DU RAPPORT
Que le Comité des services organisationnels et
du développement économique recommande au Conseil :
- d’approuver la méthodologie utilisée pour
établir la stratégie à long terme énoncée dans le présent rapport pour une
analyse de l’utilisation optimale du Stade d’Ottawa;
- d’approuver la stratégie à cour terme pour
l’utilisation intérimaire du Stade d’Ottawa telle qu’elle est énoncée dans
le présent rapport;
- de
demander au personnel de solliciter les « meilleures offres de
bail » des deux promoteurs, qui ont proposé de façon spontanée à la
Ville d’utiliser l’installation du Stade d’Ottawa à court terme, selon les
conditions minimales de la cession à bail décrites dans la stratégie à
court terme telle qu’elle est énoncée dans le présent rapport.
BACKGROUND
Stadium
History
The Ottawa
Stadium, located at 300 Coventry Road, was built in 1993 at a cost of
approximately $17M. The building is approximately 133,000 square feet with four
floors and has 10,332 seats including 32 private suites. Furthermore, the
Stadium is on a site of 13.79 acres with approximately 845 parking spaces.
Since 13 August
1992, the City of Ottawa has had an “Operations and Maintenance (O & M)
Agreement” with Ottawa Triple “A” Management Limited for the operation of a
Triple “A” baseball franchise from the Stadium. This Agreement expired on 31
October 2009.
In June 2000, Ottawa Triple “A” Management assigned the O & M Agreement to the Ottawa Lynx. In March 2008, the Lynx and the City executed a partial assignment of the Agreement to Ottawa Pro Baseball (Ottawa Pro). This enabled the new organization to play their home baseball games at the Stadium for the 2008 and 2009 seasons of the Can-Am Baseball League at a base annual rent of $108,000.
During
the 2008 baseball season, the Ottawa Rapidz played baseball at the Stadium
under a management arrangement between the Rapidz Baseball Club and Ottawa Pro.
On 19 September 2008, the Rapidz filed for bankruptcy and subsequently sued the
City of Ottawa and others for $3M.
In November
2008, the Can-Am League announced it would undertake the financial backing of
the baseball team and would continue to seek new ownership to play the 2009
season at the Stadium. However, in March 2009, the Can-Am League advised that the Ottawa
Voyageurs, the new baseball team would not be able to operate in 2009. Despite these events, Ottawa Pro did remain liable for the operation
and maintenance of the Stadium until 31 October 2009 and honoured their
obligation with respect to payment of the rent for 2008 and 2009.
Council
Motion
At its meeting
on 8 April 2009, City Council enacted Motion Number 64/10 (attached as Document
1), which directed staff to review options for a go forward strategy for the
Ottawa Stadium including an analysis of the merits of all options.
Interim Use Proposals
Subsequent to the Council Motion, the City has received
two (2) unsolicited proposals with respect to continuing to have the stadium
used for professional baseball until such time as the City decides on the
long-term future of the stadium property.
A third party contacted the City with respect to submitting an unsolicited proposal for use of the stadium for professional soccer.
(a) Ottawa Pro Baseball
In early October 2009, Ottawa Pro made an unsolicited proposal, with the intent of having Can-Am Baseball return to the City in 2010 and 2011. Briefly, the proposal asked the City to renew the assignment of the O & M Agreement for a two (2) year period on the basis of Section 6 (ii) of the Partial Assignment Agreement dated the 4 March 2008. Under that provision, the City reserved the right to assign to Ottawa Pro the renewal rights contained in the original O & M Agreement.
The specifics of the Ottawa Pro proposal are as follows:
- Renewal Term - 2 years;
- Rental rate to remain at $108,000;
- Letter of credit in the amount of $370,000 to be posted to cover one year's rent and estimated maintenance and utility costs for one year;
- If letter of credit is called in year 1, letter of credit must be replenished prior to commencement of year 2;
- Ottawa Pro will assume current parking service to RCMP staff and will retain the parking fees; and
- If the Can-Am team, in any year does not play a minimum of 5 home games in the stadium, the rent under the O & M Agreement is accelerated, the City can immediately call on the letter of credit and retain the full amount as liquidated damages and the renewal will be terminated. The City will be entitled to full use of the stadium after the termination.
(b) Ottawa Stadium Group
In addition to the Ottawa Pro request for a renewal of the O & M Agreement, on 30 October 2009 the City received an unsolicited proposal from the Ottawa Stadium Group (OSG) for use of the stadium in the short-term by their group. OSG proposes that the stadium be used for professional baseball and other commercial events together with a number of other community use activities and events.
It proposes to lease and operate the stadium facility on a year round basis with an initial term of two (2) years and then for OSG to continue on a year-to-year basis until such time as the City develops a Request for Proposals (RFP) for the disposition of the property.
OSG also proposes that the rent be based on the City receiving a base rent related to the number of professional baseball games and other events together with a surcharge of $1 per ticket for non-baseball events. The proposal is silent on the matter of payment of operating and maintenance costs for the facility.
The OSG proposal is attached as Document 2 and, unlike the Ottawa Pro proposal is not based on the previous O & M Agreement arrangements. As such, it cannot be easily assessed against the Ottawa Pro baseball proposal in the absence of basic conditions established by the City.
On 21 October 2009, the Real Estate Partnerships and Development Office (REPDO) also received an enquiry from a third party with respect to submitting an unsolicited proposal.
REPDO replied to this enquiry on 23 October 2009 as follows:
“On 9 April 2009 City Council directed the Real Estate Partnerships
& Development Office to look at options for the future of the Stadium site
and to bring a Report back to Council before the end of this year. Council directed staff to take a broad
approach in looking at the programming and redevelopment options for the
Stadium with a view to assisting Council in setting the direction for further,
more detailed consultation and discussion on the matter. Accordingly, City
staff currently has no mandate to enter into discussions with parties
who are interested in submitting an unsolicited proposal for the future
programming or potential redevelopment of the Stadium. The staff report is currently scheduled for
1 December, Corporate Services & Economic Development Committee”
In
subsequent discussions with this party, it has become apparent that the
interest in this case is to use the Ottawa stadium facility for professional
soccer.
DISCUSSION
The
purpose of the discussion below is to provide Council with a preliminary review
of the possible “go forward” options for the Stadium, including Council’s
approval of a process to develop a long-term strategy for the Stadium, as well
as a transitional strategy in the short-term.
Long-term Strategy
Original
Vision
When the Ottawa Stadium was constructed, the vision for the use of the facility was that it would be a multi-purpose recreational complex that included a baseball stadium suitable for Triple “A” baseball. The O & M Agreement provided that the Stadium is available for community-based events or not-for-profit use on a direct cost recovery basis. The City did, however, prohibit the use of the Stadium for loud, stand-alone rock concerts and any other events that contravened City policies regarding the types of events that may be held on City-owned property.
Initially, the Stadium hosted as many as 71 home games in addition to exhibition games. Although some community-based events were held at the Stadium in the early years, the requirement to pay for the use of the Stadium on a direct cost-recovery basis appears to have deterred the use by others. In this same regard, as each of the Lynx and Ottawa Pro were fully responsible for the operation and maintenance of the Stadium, they retained exclusive use of the Stadium subject to the same provisions in respect of the community based events or not-for-profit events. By way of comparison, a recent community-based baseball tournament was held at the Stadium in September at a daily cost of approximately $900.
Options for Future Use
City Staff are reviewing a wide range of options for consideration
by Council specific to different development scenarios for the Ottawa Stadium
property such as:
· Maintaining the status quo (e.g. merely having a seasonal baseball facility);
· Constructing a renovated, year-round facility that would have other sports (soccer, tennis, etc.) and forms of entertainment (e.g. concerts, car shows, etc.) taking place; and
· Selling the land outright - with or without the Stadium on it - by either the City or its Community Lands Corporation.
In options that provide for maintaining a stadium facility, those options would encompass alternative uses of the facility in addition to baseball based on an analysis of the highest and best use of this facility for the long-term and different operational scenarios to ensure the use of the stadium is optimized from both commercial and community use standpoints.
The 300 Coventry Road property is designated as General Urban Area in the City’s Official Plan (OP) and as Major Leisure Facility Zone (L2) in the City’s Zoning-By-law. The adjacent properties are designated for the most part as Employment area in the OP and as General Mixed Use Zone (GM6) in the Zoning By-law.
Staff recalls that when the Ottawa Stadium was in the planning stages by the former City of Ottawa, the then adjacent property owner, the Canada Life Assurance Company as represented by its real estate subsidiary Adason Properties Limited (Canada Life), strongly advocated that the stadium and the adjacent properties be developed as a mixed-use employment area with centralized/shared parking facilities and a pedestrian bridge connecting this area to the Train Transitway Station.
Canada Life also believed the concourse of the stadium facility could be designed to provide grade level retail that could serve as a convenient all weather connection between potential office development on the east and west sides of the stadium.
The former City of Ottawa did not act at that time on the Canada Life proposal due to budget constraints and ultimately Canada Life and the adjacent property owner to the east sold their properties and the new owner developed large format (big box) retail stores.
To maximize the value of this property to the City both financially and municipally, staff believe that any development planning for the future use and/or potential disposition of this property should, therefore, consider both a direct connection to the City’s transitway and its designation in the City’s OP and Zoning By-law for mixed use development, whether or not a stadium facility remains.
Transit Oriented Development
As indicated above, whether or not the
long-term development on the Ottawa Stadium property ultimately includes a
stadium facility as part of the development, the viability of any development
in that location will be dependent on direct and convenient access to the
City’s rapid transit system.
In that regard, Council has approved the initiation of two separate Environmental Assessment (EA) processes for projects that will have a direct affect on the development potential and value of the City’s 300 Coventry Road property as follows:
- The Downtown Ottawa Transit Tunnel (DOTT) Project; and
- A Pedestrian Overpass across Highway
417 to link the Coventry Road Area to the rapid transit station at the
Ottawa Train Station, (Train Station).
Downtown Ottawa Transit Tunnel (DOTT) Project
The City’s Transit Plan Implementation Critical Path, as approved by Council on 9 September 2009 Ref. # ACS2009-ICS-TRA-0010), provides for a Functional Design Recommendation for the DOTT project to be presented to Transit Committee on 16 December 2009 and to Council on 27 January 2010. Approval of that Recommendation will initiate the formal EA process (final consultation and documentation).
The Critical Path also anticipates the DOTT project will proceed as follows:
- Approval of the EA by the Ontario Ministry of Environment (MOE) by the end of Q2 2010;
- Completion of the preliminary design and specifications by Q3 2011;
- The issuance of a Request for Proposals (RFP) for project construction and vehicles by Q3 2011; and
- Completion of the RFP process by Q1 2013.
On the basis of the above it is anticipated that construction on the DOTT project will commence in 2013 and be completed in 2018.
Future Pathway (Pedestrian Overpass)
As part of the City’s Official Plan and its Transportation Master Plan, a multi-use pathway connection is planned for over the Queensway between Coventry Road and the Transit Station (Pedestrian Overpass) at the Ottawa Train Station. This pathway was deemed necessary to improve future access to rapid transit and to encourage transit-oriented development along Coventry Road. On 21 October 2009, the City’s Transit Committee approved the Statement of Work for this pathway’s environmental assessment.
Proposals for this EA have now been received and it is anticipated that the EA study contract will be awarded and work will commence in Q1 2010 and be completed by Q2 2011.
Outline
of Methodology
At its meeting
of 27 May 2009, City Council approved the recommended corridor alignment and
station options for the Downtown Ottawa Transit Tunnel (DOTT) Planning and
interim Environmental Assessment Study and directed staff to release a Request for Information
(RFI) to property owners within, and adjacent to, the recommended corridor
alignment to solicit ideas on station access, development, and design. The aim of the RFI was to identify potential
development opportunities and synergies with businesses located along the
transit plan corridor with the objective of improving ridership, ridership
experience and lowering City costs in implementing the plan.
On 21 October 2009, a report “Request
For Information (RFI) Stakeholder Development Input” (Ref N°: ACS2009-CMR-REP-0047) was received by Transit
Committee. The report
included, a summary of the information submitted in
response to the RFI. It also provided an overview of the staff understanding of
the results and how staff intends to utilize these as part of the information
base in developing a Business Development Strategy at and around the proposed
LRT stations in keeping with the Transit Plan Implementation Critical Path.
The objective of the Business Development Strategy is to build on the private sector interest by creating competitive development opportunities for landowners/developers to make connections to LRT stations, including those at Train Stations and to assist in enhancing these stations as the City moves forward with the Functional Design and Investment Strategy for the LRT project. Competitive situations will provide incentives for the private sector to explore connection/development opportunities concurrent with the formal EA process and property acquisition process for the project.
Staff will,
therefore, be outlining a Business Development Strategy with respect to connection and development opportunities at stations,
including Train Station, along the DOTT project corridor in conjunction with
the Investment Strategy for the DOTT project when Committee and Council
consider that strategy in Q1 2010. Upon approval of the Strategy by Council,
staff of the Realty Initiatives and
Development Branch will be working with staff
of the Policy Development and Urban
Design Branch, Transportation Planning Branch and Rail
Implementation Office to implement the strategy while the EA and preliminary design work for DOTT
is carried out in 2010 and 2011 and while the EA for the Pedestrian Overpass
between the Coventry Road area and Train Station is also in progress.
In that regard,
the Realty Initiatives and Development Branch will
work with the Policy Development and Urban Design Branch
to undertake a visioning exercise and public consultation process in 2010 to
create urban development concept options for the 300 Coventry Road property and
surrounding area as a pre-requisite to initiating appropriate changes to the OP
and Zoning By-law to provide for mixed use development, with or without a
stadium, on this property.
By the end of Q1 2011, it is intended that the Real Estate Partnerships and Development Office will carry out a “highest and best use” and cost analyses regarding these options and together with the Supply Branch, also develop a proposed RFP process and criteria to implement those options and will then forward a report in that regard for consideration by Committee and Council (RFP Report).
Upon approval of the RFP Report, the Realty Initiatives and Development Branch together with the Supply Branch will finalize the documents for the RFP and the Supply Branch will then issue and oversee the RFP in Q2 and Q3 2011.
Short-term Strategy
Assessment of Existing Situation
When the stadium was being used for baseball under the previous O & M Agreement arrangements with Ottawa Pro, the City received a base rent of $108,000 and Ottawa Pro covered all annual operating and maintenance cost and was entitled to all stadium revenue including parking revenue.
With the bankruptcy of the Rapidz, the City was forced to undertake the “mothballing” of the stadium for the period 1 November to 30 April, in order to protect the asset, but generally speaking the Lynx mothballed the stadium annually. The “mothballing” of the stadium facility by the City has an annual estimated cost of $90,500 resulting in annual net revenue to the City of $17,500 ($108,000 rent less $90,500 cost).
At present, the
Ottawa Stadium facility has no tenant and is being
“mothballed” year round by the City at a cost of approximately $155,000, except
for use of the parking resulting in an estimated annual net cost of $11,000
($155,000 cost less $144,000 parking revenue).
If the City operates and maintains the Ottawa Stadium facility year round it is estimated that the annual cost would be $378,500. As the City currently receives annual parking revenues of approximately $144,000 the annual net cost to the City would be $234,500 less any facility revenues but this does not include the cost to run programs or administer community use.
If the City operates and maintains the
stadium only for the period from 1 May to 31 October each year and “mothballs”
it for the remainder of the year, it is estimated that the annual cost would be
$280,000. As the City currently receives annual parking revenues of
approximately $144,000 the annual net cost to the City would be $136,000 less
any facility revenues but this does not include the cost to run programs or
administer community use.
If the stadium
building is “mothballed” for the entire year but the City operates and
maintains only the ball diamond/sports field for community use from 1 May to 31
October each year then the estimated annual cost would be $215,000 and, with
parking revenues estimated at $144,000, the net cost to the City would be
$71,000 less any field rental revenue but this does not include the cost to run
programs or administer community use.
Even when the Ottawa Stadium facility was operated under the O & M Agreement arrangements, the City was not receiving best value relative to its investment with respect to community use of the facility as noted previously in the background section of this report.
The rental costs for stadium and/or sports field/ball diamond use far exceeded those charged at City operated facilities.
In that regard, the current rental rates for use of City sports fields/ball diamonds are set out in Document 3 attached and it is also noted that the rental rate to use the field at Lansdowne Park is $150 per hour and the rental rate for using the stands and the field is based on the block of time required for each use at the field rental rate plus a surcharge of $1.50 per spectator admission and the rental group paying for security as required.
Since the City has received two unsolicited proposals for the interim use of the stadium facility and from business groups that wish to utilize the stadium for professional or semi-professional baseball games and other events and pay rent accordingly, it appears that there is opportunity for the community use to be accommodated, when the stadium is not used for those games and events, at rental rates which are consistent with those for City operated facilities as described above.
Best Offers to Lease Process
The Ottawa Stadium is a facility built for the primary purpose of accommodating professional baseball. It has been determined by staff that the field area is not capable of accommodating a Canadian Football League size playing field but it does have limited potential to accommodate a full size professional soccer field.
Document 4, attached to this report, shows an overlay of the Carleton University soccer field on the stadium property, which indicates that there are only two very tight options for accommodating a full size soccer field within the existing baseball field area and both of these encroach on the infield for baseball.
In addition, while the parties who have submitted proposals for the baseball use of the Ottawa Stadium have indicated that they have teams ready to play in 2010 as an interim location for those teams, the party that is apparently interested in using the stadium for professional soccer would need to obtain a soccer franchise and this would seem to create some potential expectation of long-term use of the stadium.
Although Ottawa Pro submitted its
unsolicited request in early October 2009 for a renewal of the O & M
Agreement prior to its expiry on 31 October 2009, Ottawa Pro did not have a
right of renewal and, given the timing of the request, staff believed it was
the best interest of the City to allow the O & M Agreement to expire and to
move forward with any interim use of the stadium facility on an offer to lease
basis.
As a result, staff is proposing that the City move forward with a best offer to lease process for the short-term use of Ottawa Stadium based upon the primary use of the facility being professional or semi-professional baseball.
Since the two
proposals received to date for baseball use were unsolicited and cannot be easily assessed against
each other in the absence of basic conditions established by the City and as a
third group has expressed interest in submitting a proposal, staff believe the
City should proceed with an open and transparent process to receive “best
offers to lease” the Ottawa Stadium facility based on meeting minimum
conditions set by the City as follows:
1. One year term with a option for a one-year
renewal subject to the status of the City’s long-term development plan;
2. Annual base rent of $108K (minimum);
3. Payment of all operating and maintenance expenses by the tenant for
its proposed use of the stadium;
4. Entitlement by the tenant to all facility revenues including
advertising revenues;
5.
Letter of credit,
or other financial security acceptable to the City from the tenant to cover
rent and estimate operating, maintenance, and utility costs for one year;
6.
Tenant using the
stadium facility to accommodate a professional or semi-professional baseball
team playing in a bon-a-fide professional or semi-professional baseball with a
minimum of twenty (20) games being played by the team in 2010 at the Ottawa
Stadium;
7. Prohibition on the use of the Stadium for loud, stand-alone rock concerts and any other events that contravene City policies regarding the types of events that may be held on City-owned property;
8. No alterations to the stadium facility including being permitted unless otherwise authorized by the City;
9. Tenant acknowledgement and agreement that the tenant’s proposed use and leasehold interest in the stadium for the short-term is not based on acquiring or having any rights to the long-term use of the Ottawa Stadium property; and
10. Tenant acknowledgement and agreement that the offer to lease submitted is its best and final offer.
In addition the
prospective tenants will be required to identify in their offer the extent to
which the tenant is prepared to make the stadium available for community use,
when it is not used for tenant initiated games and events, and to also indicate
any related terms and conditions including rental rates relative to the City’s
rental rates for similar facilities as follows:
·
For the use of
the ball diamond/field area alone, rental rates relative to those set out for
Minto Field and the Terry Fox Fields in Document 3 attached; and
·
For use of ball
diamond/field area and stadium stands, a rental rate relative to that at
Lansdowne Park where the rate is based on the block of
time required for each use at a rental rate of $150 per hour plus a surcharge
of $1.50 per spectator admission and with the rental group paying for security
as required.
In terms of soliciting best offers to lease, two options have been
considered as follows:
- Prepare and
place public advertisement/notices regarding this short-term lease
opportunity for Ottawa Stadium; or
- Solicit best
offers from Ottawa Pro and OSG only.
The minimum conditions of the best offer to lease proposed above are
dependent on the tenant using the stadium for professional or semi-professional
baseball in 2010 without a guarantee that the facility will be available for
this use in the long-term.
If the City proceeds with Option 1 above, it is estimated that it will
take approximately two months to prepare and place the advertisement plus provide
a long enough offer period for other prospective tenants to investigate the
potential to have an operating professional baseball team in place for the 2010
season.
Since it is
unlikely that any other proponent would have a professional baseball team ready
to play at the Ottawa Stadium in 2010, staff believes that Option 2 described
above is the best way to proceed in order to minimize the time frame to
complete the best offers to lease process and maximize the amount of time for a
preferred tenant to make arrangements for the 2010 baseball season.
Once the offers are received, City staff consisting of representation
from REPDO, Parks and Recreation, and Public Works will review all three
proposals and recommend the best offer to the City Manager for approval under
his delegated authority from Council.
If no offer is received that meet the minimum conditions set out above,
then staff will report back to Committee and Council on a City option for
operating the stadium to maximize community access and minimize the City’s
operating and maintenance costs in the short term.
CONSULTATION
As this report arose from a Council
direction, no formal consultation was undertaken prior to Council’s
consideration of this preliminary report.
However, it should also be noted that the City has received an
unsolicited proposal for the future use of Ottawa Stadium and enquiries from
several groups who have expressed various levels of interest in using the
Stadium for baseball.
Councillor’s Comments:
Two different leagues
have experienced difficulties in operating a sustainable baseball franchise in
Ottawa.
The City has
already invested close to $ 20 Million on a stadium and a state-of-the-art
field. The report makes it abundantly
clear that the City never received “ … best value relative to its investment
with respect to community use of the facility…”. In fact that assessment also applies to the situation with a
professional team in place (at a base rent of $ 108,000 per year) the annual
net revenue to the City was a paltry $ 17,500!
Other near term options:
·
A “mothballed” stadium currently costs
the City $11,000 per year;
·
Stadium operated for ‘community use’
from May to October (“mothballed” at other times) – net cost $136,000 less any
rental revenues;
·
City operates only the sports field
for ‘community use’ from May to October (stadium “mothballed” year round) – net
cost $71,000 less any rental revenues.
None of these
numbers should cause Council to take hasty or precipitate (i.e. risky) action.
The stadium is
very much a purpose-built facility, ideally tuned for baseball. Its use for other sports (e.g. soccer) would
require further investment.
The best way
forward is to strategically seek a credible partner willing to operate the
stadium for professional or semi-professional baseball on a long-term
basis. Affordable community access
should be provided on condition that it not interfere with the normally
scheduled baseball activities. The City
of Ottawa should so structure any future lease agreement in such a way that it
(the City) remains responsible for leasing the stadium to community groups on
non-baseball days. Experience has shown
that such use is a distraction to operators of professional sports franchises.
I am concerned
that the report recommendations will lead the City into disputes that it is
once again entering into something very similar to sole sourcing. This one could be called
restricted-sourcing. Proceeding in this
manner would be based on staff’s assessment on the likelihood of there being
other potential proponents. I believe
that we should ascertain that state of things by asking through the Option 1
process. The advertisement process
could be crafted to take the same time as the “solicit best offers” (Option 2)
approach.
It is very much
part of my concern that, in seeking a partner or lease-holder for a one or two
year lease, we will be in a situation where it will be very difficult to remove
a tenant ‘with a foot-in-the-door’.
This scenario has already played out in recent years in another contract
in a different field. In any case, I
don’t believe that a credible tenant can be found able to operate a team for
the 2010 season at this late date. We certainly
should not prejudice our future options in any case.
LEGAL / RISK MANAGEMENT IMPLICATIONS
There are no legal / risk management impediments to implementing the recommendations in this report.
FINANCIAL IMPLICATIONS
Document
2 - Unsolicited Proposal from Ottawa Stadium Group
Document 3 - Rental rates for City Sports Fields/ Ball Diamonds
Document 4 - Soccer Field Overlay
DISPOSITION
Upon approval of the recommendations of
this report by Council, REPDO will initiate the actions to implement both the
short-term and long-term strategies in the manner detailed in the Discussion
Section of this report.
DOCUMENT 1
Motion Number 64/10 dated 08 April 2009
ADDITIONAL ITEMS
1. PRESENTATION
BY THE CITY CLERK AND SOLICITOR - OTTAWA BASEBALL STADIUM
MOTION NO. 64/10
Moved by Councillor B. Monette
Seconded by Councillor S. Qadri
WHEREAS
on March 30, 2009, City staff were advised that the Ottawa Voyageurs will not
operate for the 2009 season; and
WHEREAS the City asset should be appropriately maintained while a ‘go-forward’ strategy is being determined;
THEREFORE BE IT RESOLVED that the City temporarily suspend operations at the Ottawa Baseball Stadium, maintaining only those services that are required for the protection of the asset; and
BE IT FURTHER RESOLVED that City staff be directed to prepare a report outlining all options for a ‘go-forward’ strategy for the Ottawa Baseball Stadium, including an analysis of the relative merits of all options and incorporating any additional considerations that may arise from City Council’s discussions on the other stadium proposals on April 22, 2009.
CARRIED
DOCUMENT 2
OTTAWA STADIUM GROUP
SHORT TERM PROPOSAL ITEMS
Background / Overview
OSG had submitted
a comprehensive proposal in July of 2009 to the City of Ottawa relating to the
long term lease of the Ottawa Stadium, which would include Pro-Baseball,
Community Events and other related activity.
OSG has been
advised by city staff that; although the current lease with the Lynx is
expiring October 31st 2009, the city is prohibited from creating
another lease with any parties for that property until the results of a
Councillor commissioned inquiry has been finalized.
Since the inquiry
report may not be completed and available for review by council and staff well
in to the 2010 year, and then would require further public inquiry; the city is
interested in receiving an offer to lease the stadium on a shorter term as to
have the facility not sit vacant into the next couple of years.
The following
dossier represents OSG’s revised business plan and programming for the
short-term occupation of the Ottawa Stadium:
1. Lease
and Term
a)
ODG
will commit to executing a formal lease / management agreement for the full
time occupation of the Ottawa stadium facility.
b)
OSG
will agree to conduct its programming and activity as outline in section 2 of
this dossier, and will attempt to the best of our abilities, accommodate
third-party any additional city requests for the same.
c)
OSG
would agree to a 2-year term, specifically defined as; from January 1st
2010 to March 31st 2012. OSG requests access to facility ASAP to
evaluate building for setup and prepare to move in.
d)
OSG
requires the ability to accommodate office-leasing opportunities that present
themselves, with the understanding all ‘lease for space’ agreements will expire
within the exact leasing timelines outlined in the OSG lease.
e)
OSG
has access and the ability to use all kitchen equipment, office furniture,
suite appliances, concession equipment, and all other equipment that is readily
available in the Stadium in order to continue normal event operations.
f)
OSG
has the ability to manage, run and operate all food and beverage concessions.
g)
In
the event that the city had not finalized its long-term direction with the
stadium, OSG agrees to continue to extend its activity on a year-by-year basis
until such time as the city develops an RFP for the disposition of the
property.
2. Programming
OSG intends to utilize the
stadium facility in favour of the community in the following ways:
a)
Professional
men’s baseball in a recognized, professional baseball association or league.
b)
Semi-professional
women’s baseball.
c)
Amateur
baseball, specifically Little League (Districts 2 & 6); the National
Capital Baseball League (NCBL); and
area elite baseball club teams.
d)
Rental
of space for meetings and trade shows.
e)
Rental
of the parking lot to adjacent businesses, (i.e. RCMP).
f)
In
and outdoor soccer, Ultimate Frisbee activities.
g)
Live
entertainment events (See Schedule ‘A’).
h)
Corporate
and community rentals (family picnics, fun days).
i)
Rental
of available office space to local businesses on a short-term basis.
3. OSG
Financial Commitments
In compensation for the right to lease the facility, OSG offers to
pay the following:
a)
Base
Rent – Total of $116,500, derived from:
i)
Baseball $ 67,500 (45 games X $1,500)
ii) Events $ 49,000**
b) Incremental Revenue back to the City
i) Ticket Fee $105,000** to
offset life cycle costs
($1.00 per ticket for non-baseball events -
estimated at an average 7,500 tickets sold per event.)
Total Revenues - $116,500 lease payments per year
$105,000 event ticket incremental revenue
$221,500***
** Estimate based on planned
number of events
***Includes all lease and
incremental revenue)
Schedule ‘A’
The following programming has been derived from consultations with the local Community Association’s Executive Committee.
Resident/Targeted Audience Profile
Children Aged 1-6 Play/Theatre
(family event)
Pre-Teens
Aged 7-12 Concert
(family event)
Teens Aged 13-18 Concert (family
event)
Adults
Aged 19-34 Concerts
Adults
Aged 35-54 Concerts
Adults
Aged 55+ Concerts
Community
Fundraiser Concerts
(Food-Bank, Youth Treatment Centre)
Community
Festival Highland
Games
Community
Festival Oktoberfest
Note: In an effort to accommodate the City’s need to host consumer or commercial tradeshows or exhibitions at the stadium facility, OSG will approach these requirements on a case-by-case basis and are not factored in the event totals
DOCUMENT 3
Hourly Sport Field and Ball Diamond Rental Rates
Rates are effective as of May 1, 2009
All rates include GST
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Facility Category |
Rental Rate |
Rental Rate With Lighting |
Rental Rate |
Rental Rate With Lighting |
Rental Rate |
Rental Rate With Lighting |
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Minor |
Adult |
Commercial |
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Neighbourhood Level - 3A, 3B
|
$5.17 |
$16.72 |
$27.64 |
$39.19 |
$27.64 |
$39.19 |
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Community Level - 2A, 2B |
$6.28 |
$17.83 |
$31.17 |
$42.72 |
$31.17 |
$42.72 |
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City Level - 1A, 1B |
$7.73 |
$19.28 |
$41.16 |
$52.71 |
$41.16 |
$52.71 |
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Premium - Minto |
$34.19 |
$53.09 |
$102.66 |
$121.56 |
$102.66 |
$121.56 |
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Premium - Terry Fox - Main and North |
$34.19 |
$53.09 |
$102.66 |
$121.56 |
$102.66 |
$121.56 |
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Premium - Terry Fox - West |
$27.36 |
$46.26 |
$73.31 |
$92.21 |
$73.31 |
$92.21 |
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Premium - Terry Fox - Track and Field |
$47.87 |
$66.77 |
$103.71 |
$122.61 |
$103.71 |
$122.61 |
Sport Field and Ball Diamond Rental Definitions
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Sport Field and Ball Diamond
Rental Definitions |
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Minor |
18 years of age and younger |
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Adult |
19 years of age and older |
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Commercial |
An activity that has the intent of generating a profit. This activity may involve the sale of goods or services or may require a registration fee prior to participation. |
DOCUMENT 4
