|
2. CITY
OF OTTAWA SUPPORT FOR PORTRAIT GALLERY OF CANADA APPUI
DE LA VILLE D’OTTAWA AU MUSÉE DU PORTRAIT DU CANADA |
Committee
recommendationS as amended
That Council:
1. Request that the Mayor send a letter to the Federal Government and local Members of Parliament indicating the following:
a. That the National Capital Region (NCR), in accordance with its role as Canada’s Capital, remain as the national and international showcase of Canada and, therefore the host to, and the steward of, Canada’s key National Institutions, such as the Portrait Gallery of Ottawa.
b. That the Portrait Gallery of Canada be retained in an appropriate gallery space in Ottawa in accordance with Canada’s Capital Core Area Sector Plan and in accordance with its contribution to Ottawa’s standing as a treasury of the nation’s heritage and a meeting place for all Canadians.
c. That Federally owned downtown Ottawa sites and buildings be eligible to compete under the Terms of Reference for a new Portrait Gallery of Canada in the context of a public private partnership.
d. That the Federal Government extend its Request for Proposal (RFP) deadline to May 31, 2008 to allow a full range of competitive public private partnership proposals to be submitted including those that involve federally owned sites and buildings.
2. Support Developers in their bid proposals for retaining the Portrait Gallery of Canada in a new building in Ottawa by exempting the payment of municipal development charges specific to the gross floor area of the National Portrait Gallery of Canada, to an upset limit of $431,200, in accordance with Section 7, Clause (U) of the City’s Development Charge By-law.
3. Direct Corporate Communications of the Business Transformation Services Department to prepare a public service announcement concerning the Portrait Gallery of Canada and to urge citizens to contact their Member of Parliament and demonstrate support for local proposals that would keep this valued national institution in Ottawa.
4. Should time constraints to the private sector submission deadline preclude getting to Council in time, delegate authority to the Corporate Services and Economic Development Committee and/or the Planning and Environment Committee to approve other feasible measures of City support, should they arise prior to the April 16, 2008 submission deadline, to ensure a competitive bid for the Portrait Gallery of Canada.
WheRecommandationS modifiÉes du Comité
Que le Conseil :
1.
Demande
au maire d’envoyer une lettre au gouvernement fédéral et aux députés locaux indiquant
ce qui suit :
a.
Que la région de la capitale nationale (RCN), conformément à son rôle de capitale
du Canada, continue de présenter le Canada sur la scène nationale et
internationale et d’être le centre d’accueil et d’intendance des principaux
établissements nationaux du Canada.
b. Que le Musée du
portrait du Canada soit maintenu à Ottawa, dans un espace de galerie
convenable, conformément au Plan de secteur du cœur de la capitale du
Canada et à sa contribution à la position d’Ottawa, trésor du patrimoine du
pays et lieu de réunion de tous les Canadiens.
c. Que les emplacements et les édifices qui appartiennent au gouvernement fédéral au centre-ville d’Ottawa soient admissibles à faire concurrence selon le mandat du nouveau Musée du portrait du Canada dans le contexte d’un partenariat public et privé.
d.
Que le
gouvernement fédéral reporte la date limite de sa demande de propositions (DP)
au 31 mai 2008 pour permettre la présentation d’un éventail complet
de propositions concurrentielles de partenariat public et privé, y compris
celles qui engagent les sites et édifices du gouvernement fédéral.
2.
Soutienne
les promoteurs qui présentent des soumissions pour maintenir le Musée national
du portrait du Canada à Ottawa en exemptant le paiement des redevances d’aménagement
municipales particulières à la superficie brute du Musée national du portrait
du Canada jusqu’à un montant maximal de 431 200 $, conformément à
l’article 7, paragraphe (U) du règlement de redevances d’aménagement
de la Ville.
3. Enjoigne la Direction des
communications générales des Services de transformation des activités de
formuler une annonce d’intérêt public sur le Musée du portrait du Canada et
d’insister pour que les citoyens communiquent avec leur député et soutiennent
les propositions locales qui maintiendraient cet établissement national
apprécié à Ottawa.
4. Donne au Comité des
services organisationnels et du développement économique ou au Comité de
l’urbanisme et de l’environnement, si les contraintes de temps du délai de
soumission du secteur privé font en sorte que cette dernière ne parvienne pas
au Conseil à temps, le pouvoir de considérer d’autres mesures réalistes de
soutien de la Ville si elles sont manifestes avant la limite de présentation le
16 avril 2008, afin de garantir des soumissions concurrentielles pour le
Musée du portrait du Canada.
Documentation
1.
Deputy
City Manager's report Planning, Transit
and the Environment dated 4 January 2008 (ACS2008-PTE-ECO-0007).
2.
Extract
of Draft Minutes, 8 January 2008.
Report to/Rapport au :
Planning and Environment Committee
Comité de l’urbanisme et de l’environnement
Council / Conseil
04 January 2008 / le 04 janvier 2008
Submitted by/Soumis par : Nancy Schepers, Deputy City Manager/
Directrice municipale adjointe,
Planning, Transit and the
Environment/
Urbanisme, Transport en commun et
Environnement
Contact Person/Personne ressource : Rob Mackay, Acting Director/Directeur
par intérim,
Economic
and Environmental Sustainability/Direction de la viabilité économique
et de la
durabilité de l’environnement
(613)
580-2424 x, 22632 Rob.Mackay@ottawa.ca
SUBJECT:
|
|
|
|
|
OBJET :
|
REPORT
RECOMMENDATION
That Council:
1. Request that the Mayor send a letter to the Federal Government and local Members of Parliament indicating the following:
a. That the National Capital Region (NCR), in accordance with its role as Canada’s Capital, remain as the national and international showcase of Canada and, therefore the host to, and the steward of, Canada’s key National Institutions, such as the Portrait Gallery of Ottawa.
b. That the Portrait Gallery of Canada be retained in a new building in Ottawa in accordance with Canada’s Capital Core Area Sector Plan and in accordance with its contribution to Ottawa’s standing as a treasury of the nation’s heritage and a meeting place for all Canadians.
c. That Federally owned downtown Ottawa sites and buildings be eligible to compete under the Terms of Reference for a new Portrait Gallery of Canada in the context of a public private partnership.
d. That the Federal Government extend its Request for Proposal (RFP) deadline to May 31, 2008 to allow a full range of competitive public private partnership proposals to be submitted including those that involve federally owned sites and buildings.
2. Support Developers in their bid proposals for retaining the Portrait Gallery of Canada in a new building in Ottawa by exempting the payment of municipal development charges specific to the gross floor area of the National Portrait Gallery of Canada, to an upset limit of $431,200, in accordance with Section 7, Clause (U) of the City’s Development Charge By-law.
3. Direct Communication and Marketing Services of the Corporate Services Department to prepare a public service announcement concerning the Portrait Gallery of Canada and to urge citizens to contact their Member of Parliament and demonstrate support for local proposals that would keep this valued national institution in Ottawa.
4. Delegate authority to the Corporate Services and Economic Development Committee and/or the Planning and Environment Committee to approve other feasible measures of City support, should they arise prior to the February 13, 2008 submission deadline, to ensure a competitive bid for the Portrait Gallery of Canada.
RECOMMANDATION DU RAPPORT
Que le Comité de l’urbanisme et de
l’environnement recommande que le Conseil :
1.
Demande
au maire d’envoyer une lettre au gouvernement fédéral et aux députés locaux
indiquant ce qui suit :
a.
Que la région de la capitale nationale (RCN), conformément à son rôle de capitale
du Canada, continue de présenter le Canada sur la scène nationale et
internationale et d’être le centre d’accueil et d’intendance des principaux
établissements nationaux du Canada.
b.
Que le
Musée du portrait du Canada soit maintenu à Ottawa, conformément au Plan de
secteur du cœur de la capitale du Canada et à sa contribution à la position
d’Ottawa, trésor du patrimoine du pays et lieu de réunion de tous les
Canadiens.
c.
Que
les sites et les édifices qui appartiennent au gouvernement fédéral au
centre-ville d’Ottawa puissent faire concurrence selon le mandat du nouveau
Musée du portrait du Canada dans le contexte d’un partenariat public et privé.
d.
Que le
gouvernement fédéral reporte la date limite de sa demande de propositions (DP)
au 31 mai 2008 pour permettre la présentation d’un éventail complet
de propositions concurrentielles de partenariat public et privé, y compris celles
qui engagent les sites et édifices du gouvernement fédéral.
2.
Soutienne
les promoteurs qui présentent des soumissions pour maintenir le Musée national
du portrait du Canada à Ottawa en exemptant le paiement des redevances
d’aménagement municipales particulières à la superficie brute du Musée national
du portrait du Canada jusqu’à un montant maximal de 431 200 $,
conformément à l’article 7, paragraphe (U) du règlement de redevances
d’aménagement de la Ville.
3.
Demande
au Service de marketing et des communications des Services généraux de formuler
une annonce d’intérêt public sur le Musée du portrait du Canada et d’insister
pour que les citoyens communiquent avec leur député et soutiennent les
propositions locales qui maintiendraient cet établissement national apprécié à
Ottawa.
4.
Donne
au Comité des services organisationnels et du développement économique ou au
Comité de l’urbanisme et de l’environnement le pouvoir de considérer d’autres
mesures réalistes de soutien de la Ville si elles sont manifestes avant la date
de limite de présentation le 13 février 2008, afin de garantir des
soumissions concurrentielles pour le Musée du portrait du Canada.
BACKGROUND
On November 6,
2007, Public Works and Government Services Canada (PWGSC), on behalf of Library
and Archives Canada (LAC), released a request for proposals (RFP) inviting
prospective developers from 9 Canadian cities, including Ottawa, to submit
proposals for the development of a new exhibition and public programming
facility for the Portrait Gallery of Canada that would open in the spring of
2012.
At the November 13, 2007 meeting of the Planning and Environment Committee, a written inquiry was submitted in response to the RFP requesting that:
- Staff provide the requirements for the competitive process that will be used to locate Canada’s National Portrait Gallery.
- Staff report on whether the City has any land or buildings that would meet the Federal requirements and allow the City to partner with the Private Sector and compete for the new National Portrait Gallery.
Library and Archives Canada is responsible for the administration of the National Portrait Collection comprising works assembled since the 1880s. The Gallery features historical personalities important to Canada's development. Part history museum, part art gallery, the National Portrait Gallery's active program of traveling exhibitions, educational initiatives and community partnerships brings a unique collection of more than four million paintings, prints, drawings, sculptures, photographs, films and caricatures to all Canadians. In the lead-up to 2012, the Portrait Gallery of Canada anticipates expanding its activities, acquisitions, and commissioning programs and continuing to build community, national, and international partnerships to support a vibrant relationship with Canada and the world.
Currently housed out of public view in an Ottawa area building, a new Portrait Gallery of Canada was to be developed in Ottawa at the former U.S. embassy at 100 Wellington Street for an estimated cost of $22 million with doors to open in 2005. The Federal Government invested $11 million before terminating the project in 2006 due to escalating costs.
It is understood from newspaper reports that the Federal
Government considered an offer from EnCana Corporation to utilize ground floor
space of approximately 43,000 square feet for the Portrait Gallery in its new
headquarters office building in Calgary but this bid for the gallery apparently
failed to materialize The same reports indicate concerns were expressed by the
Department of Canadian Heritage (National Archives and Library) that not only
was the floor space available in the EnCana project less than required by the
Portrait Gallery but also that shipping artifacts outside the National
Capital Region would result in extra risk for the collection and would cost,
reportedly, an extra $2.5million in annual operating costs for the National
Archives and Library.
DISCUSSION
A National Portrait Gallery is not only a prestigious asset for a community with opportunities for learning Canada’s history and heritage but it raises the profile of Ottawa as a cultural centre and attraction for all Canadians.
The PWGSC request for proposals (RFP) presents developers, the private sector and communities in nine Canadian cities an opportunity to host the Portrait Gallery of Canada (PGC). The PGC is a prestigious national institution that will attract local, national and international audiences. Prospective developers are expected to lead the submission and procurement process and seek out private sector and community resources to support a project that incorporates the PGC into an existing building or a new development.
The Milestone Dates for the Portrait
Gallery of Canada as set out in the RFP are as follows:
a)
RFP Issued November 6, 2007
b)
Last Day for
Submission Date Extensions December
18, 2007
c)
Last Day for
Questions January 30, 2008
d)
Submission
Deadline
February 13, 2008 (2:00 pm)
e)
Contract Award
Mid-2008
The
components and size requirements set out in the RFP are as follows:
§
Total space requirements: 4351 m2 (46, 835 sq. ft).
§
Spaces in the facility are within five primary
groupings: Visitor Services – 1036 m2 (11,152 sq. ft); Exhibitions - 1358m2
(14,618 sq. ft.); Programs and Activities – 696 m2 (7492 sq. ft); Collection
Management - 790 m2 (8504 sq. ft); Administration and Operations – 471 m2 (5070 sq. ft.)
§
Exterior open air exhibit space 286 m2 (3078 sq. ft.)
All compliant proposals will be evaluated against selection criteria outlined in the RFP including the extent of community and private sector engagement support. The evaluation criteria are:
- Developer qualifications and financial capability- (20/100 evaluation weighting)
- Proposed Site - prominence, suitability accessibility (30/100 evaluation weighting)
- Community Engagement - stakeholder capital contributions including contributions in the form of reduced land costs or development fees (25/100 evaluation weighting)
- Financial terms - site cost, developer fees, property mgmt fees (25/100)
The key elements for each of the evaluation criteria are set out in the Annex A (Document 2) attached to this report.
The site for the development of the PGC must be owned or controlled by the developer. The successful proponent will enter into a development agreement with the Government of Canada to design, develop, construct and complete the project. The developer will provide the project site, design the building, obtain all approvals and construct the building.
The completed project will either be leased on a long-term 25-year basis to the Federal Government or purchased by the Federal Government upon completion. In either case, the developer will be required to manage the facility.
Value to the Community and Canada
The Government of Canada has for many years taken steps to decentralize federal departments and agencies as a means of promoting economic support to regions across Canada. Recent relocations of departments and agencies from Ottawa include: Veterans Affairs (Charlottetown, PEI); Canadian Space Agency (Longueil, Quebec); Canadian Tourism Commission (Vancouver, B.C.) and Farm Credit Canada (Regina, Sask.). In addition, the Canadian Museum for Human Rights is now planned for Winnipeg. The latter being a potential new trend to not only decentralize departments and agencies but museums and cultural facilities traditionally located in Ottawa.
Previously, the planning for the
Federal Governments museums and cultural facilities were influenced by National
Capital development policies and more recently the Federal Government’s Core
Area Sector Plan to establish a more vibrant core on both sides of the river.
The Core Area Sector Plan of the National Capital Commission (NCC), adopted in 2004, is intended to guide the decision-making process for development initiatives that promote, animate and commemorate the Capital through public art, interpretation and programming. Such plans are not unique to Ottawa as capitals across the world, including Washington and London England, are planned so that citizens and visitors can gather to experience the full range of national cultural and historic institutions and celebrate their attachment to their country.
Aside from the mandate of the NCC to prepare the Core Area Sector Plan for a coherent National Capital experience through the National Capital Act, Ottawa has a distinct locational advantage over other cities.
Keeping the National Portrait Gallery in Ottawa would eliminate the stated $2.5 million annual operating costs to ship artifacts outside the National Capital Region, as reported by Library and Archives Canada in the media. It is noted that the capitalized value (@ 5 per cent) of the reported annual additional operational costs of $2.5 million, over 25 years, would be $50 million and this amount alone would seem to far outweigh any potential capital contribution that might be offered by a developer in another City.
Ottawa’s Competitive Advantage
The National Capital Region offers a significant competitive and locational advantage that would ensure the achievement of the PGC new program objectives. Due to the concentration or cluster of national institutions that already exist in the Region, there are economies of scale that would be of benefit to a new Portrait Gallery. As part of a family of museums, it would benefit from destination marketing campaigns, programming synergies with federal and local cultural facilities as well as an extensive small business network available in the community that supports the museum sector such as artefact restoration services, translation services and historians. The centralization of our national museums allows the establishment of a viable and competitive local support industry that is an important component of Ottawa’s small business community but also an important component of the museum’s future success.
Site Opportunities in Ottawa
Public Sector Sites
Due to the location criteria stipulated in the RFP, sites considered for the Portrait Gallery that have the best chance of winning need to be accessible to visitors and in a prominent location befitting a national institution. For Ottawa, this means the core downtown area adjacent, or in close proximity to Confederation Boulevard or a National Capital Entry Route such as Metcalfe Street.
In terms of public sector sites, the City has no site in its ownership or of appropriate size that could meet the desired prominence and accessibility to tourists. For example, Lansdowne Park is too far away from the major hotels attractions and retail areas to qualify whereas the Arts Court site on Daly Avenue at Nicholas Street is not yet ready in its planning process to submit a bid proposal and the location at the edge of the core downtown area is not a close fit with the evaluation criteria established in the RFP.
The property at 150 Elgin Street, which was sold to Morguard, would be an appropriate location for the Portrait Gallery but Morguard and the City are currently committed to the OCMS concert hall project until at least February 28, 2008. Morguard was also contacted by City staff on December 14, 2007 to determine their level of interest. They replied that it would not be appropriate to respond to the RFP at this time
In contrast, the Federal Government is a significant land owner in Ottawa’s downtown area. In fact, some of the best sites in Ottawa for the Portrait Gallery, as identified by City Staff, are federally owned.
These sites include:
§ Former American Embassy on Wellington that has been excluded;
§ Lorne Building (Former Federal Art Gallery) situated at 90 Elgin Street and;
§ Government Conference Centre at 2 Rideau Street (previously proposed Sports Hall of Fame).
All of these federally owned sites, if developed as public private partnerships, would be excellent contenders to compete nationally for the Portrait Gallery under the terms of the RFP. In the absence of these federally owned sites, Ottawa is limited in its range of suitable sites and at a disadvantage to other competing cities where a larger selection of suitable sites in their core areas are in private sector ownership.
As a result of the ownership situation in Ottawa’s downtown, federally owned sites should be eligible under the provisions of the RFP to be developed within the context of a public- private partnership (P3). The federal government has recently provided $25 million over five years to set up a federal P3 Office within Industry Canada as a centre of knowledge and expertise on P3 issues. The Industry Canada P3 Office will evaluate individual projects and assess whether a P3 is the best avenue to pursue. Given this mandate, federal government sites should be reviewed and allowed to be considered as a P3 to accommodate the development of the Portrait Gallery of Canada.
Private Sector
City staff have met with three local developers who have shown interest in submitting a proposal for a National Portrait Gallery as part of a mixed-use development on their respective sites. A letter was also prepared and sent to the development community from the Deputy City Manager of Planning, Transit and the Environment advising of the Request for Proposals. As a result of the letter, a fourth prospective proposal is being investigated concerning a prime site in Ottawa’s core area.
Staff is not specifically recommending support for any particular proposal at this time. Proposals from these developers and others would benefit from waiving development charges and be more favourably reviewed under the community engagement criteria of the RFP.
City staff have investigated means of supporting a privately led development proposal for the PGC and can exempt Development Charges under Section 7, clause U of the Development Charges By-law No. 2004-2981 through a resolution of Council. In this case, a National Portrait Gallery is deemed to qualify as a public facility. It is estimated that the municipal portion of the development charges at $7.84 per square foot would be worth approximately $431,200 given the gross floor area specifications for the Portrait Gallery in the RFP. It is intended that all competitive bids for retaining the PGC in Ottawa should be eligible for this Development Charge exemption. This is comparable to the $500,000 approved by Calgary City Council to support any of its local bids.
Other Incentives
The Development Charge exemption has been determined to be one of the most effective means of providing support to Ottawa bids for the Portrait Gallery of Canada. Nevertheless, there may be methods of community support that are suggested prior to the February 13, 2008 RFP deadline that the City may wish to consider to ensure Ottawa based bids are competitive with those in other jurisdictions. Due to the limited number of Council meetings in this time period, staff is requesting that Council delegate its authority to the Corporate Services and Economic Development Committee and/or Planning and Environment Committee which have scheduled meetings up until February 13, 2008.
CONSULTATION
Staff of the Economic Development Division held meetings with several developers who have demonstrated an interest in submitting a proposal in response to the Request for Proposals. The purpose of the meetings was to discuss their proposal plans and to indicate the City’s intent to prepare a report to Committee and Council concerning City support. A letter (Document 2) was also prepared and sent to the development community from the Deputy City Manager of Planning, Transit and the Environment advising of the Request for Proposals and that City staff would be investigating a means of supporting Ottawa based proposals.
FINANCIAL IMPLICATIONS
In accordance with the exemption provisions within the City’s Development Charges By-law, Section 7, Clause U, a national museum or cultural facility such as a portrait gallery meets the relevant criteria and is eligible for exemption from municipal development charges payable. The exemption amount would be approximately $431, 200.
SUPPORTING DOCUMENTATION
Document 1 - Annex A – Evaluation
Criteria
Document 2 - City of Ottawa Letter
to Developers
DISPOSITION
Communications and Marketing Services to be advised to work with the City’s Economic Development Division in preparing a public service announcement as per Recommendation 3 of this report.
ANNEX A – EVALUATION CRITERIA DOCUMENT
1
ANNEX “A”
Evaluation Criteria
A) Developer
Qualifications (20/100)
- Experience with projects of
similar nature
- Financial capability
- Development team
- Development approach – budget,
stakeholders, community
- Previous performance –
timelines workmanship
B) Site (30/100)
- Prominence – proximity to
city centre or cultural/tourist node
- Neighbourhood – adjacent
uses, restaurants and hotels
- Accessibility – public
transit, drop-off areas
- Development Premiums for the
Project – clean-up etc.
C) Community Engagement
Opportunities (25/100)
- Capital Contributions –
(donations foundations)
- Ongoing PGC activities –
(collaboration with other levels of government, cultural institutions,
corporations foundations)
D) Financial Terms and Adjustments
(25/100)
- Site cost at the date of
submission
- Developers Fees (% of
allowable development costs)
- Rental Factor (rental factor
used to determine rent in the lease purchase option)
- Developer’s Profit – (% of
development costs)
- Property Management Fees (as
a percentage to be applied to allowable operating expenses)
- Development Interest (% of
allowable development costs)
- Adjustment to Agreements
CITY OF OTTAWA LETTER TO DEVELOPERS DOCUMENT 2
Dear :
Re: Request for Proposals -
Portrait Gallery of Canada
On
behalf of the City of Ottawa and in the interest of a strong local economy, I
would like to bring to your attention the Federal Government’s Request for
Proposals (RFP) for the Portrait Gallery of Canada. This is a unique
procurement process for the Federal Government where prospective developers are
expected to lead in the submission of a proposal for the development of a new
exhibition and public programming facility. Developers are also expected to
seek out private sector and community resources to support the project.
The
RFP is currently posted on MERX by Public Works and Government Services Canada
for Library and Archives Canada with a submission deadline of February 13,
2007. Ottawa is one of nine cities across Canada where prospective developers
are eligible to submit a proposal.
As
the Capital of Canada, the City of Ottawa acknowledges the importance of the
Federal Government’s institutions, museums and cultural facilities and their
combined synergistic contribution to the tourism industry and overall impact on
the local economy.
In
recognition of the economic impact and value of such a facility for Ottawa, the
City is investigating a means of public support that would accompany all
competitive proposals for locating the Portrait Gallery of Canada in Ottawa’s
downtown. If there is interest in the RFP, we would encourage you or your
client to prepare and submit a proposal.
If
you have any questions or comments in regard to the City’s involvement in this
initiative, please contact Ian Duff, Manager of Economic Development at the
City of Ottawa at 613-580-2424 x22339.
Yours
truly,
Nancy Schepers
Deputy City Manager
Planning, Transit and the Environment
City of Ottawa