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11.
Community concert
hall CAPITAL project projet D’IMMOBILISATION de
la salle de concert communautaire |
Committee Recommendation
That Council approve that the $5.475M
Capital Project for the Community Concert Hall remain open until further
options for the development of a mid-sized Concert Hall or other city arts
facility, as identified as a priority within the Ottawa 20/20 Arts and Heritage
Plan, can be assessed.
Recommandation du comité
Que le
Conseil municipal approuve que les 5,475M$ réservés au projet
d’immobilisations relatif à la salle de concert communautaire demeurent
accessibles jusqu’à ce que d’autres options visant la construction d’une salle
de concert de taille moyenne ou d’installations municipales consacrées aux
arts, tel que définie comme étant une priorité dans le contexte du Plan pour
les arts et le patrimoine d’Ottawa 20/20, puisse être évaluée.
Documentation
1. DCM’s report (Community and Protective
Services) dated 10 March 2008 (ACS2008-CPS-CSF-0003).
2.
Extract
of Draft Minute, 18 March 2008.
Corporate
Services and Economic Development Committee
Comité des services organisationnels
et du développement économique
and Council / et au Conseil
10 March 2008 / le 10 mars 2008
Submitted
by/Soumis par : Steve Kanellakos,
Deputy City Manager/Directeur municipal adjoint,
Community and Protective
Services/Services communautaires et de protection
Contact Person/Personne ressource : Colleen
Hendrick, Director
Cultural Services and Community Funding/Services
culturels et financement communautaire
(613) 580-2424 x 24366,
colleen.hendrick@ottawa.ca
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SUBJECT: |
community concert hall CAPITAL
project |
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OBJET : |
projet D’IMMOBILISATION de la salle de concert communautaire |
REPORT
RECOMMENDATION
That the Corporate Services and Economic
Development Committee recommend to Council that the $5.475M Capital
Project for the Community Concert Hall remain open until further options for
the development of a mid-sized Concert Hall or other city arts facility, as
identified as a priority within the Ottawa 20/20 Arts and Heritage Plan, can be
assessed.
RECOMMANDATION DU
RAPPORT
Que le Comité des services organisationnels et
du développement économique recommande au Conseil municipal que
les 5,475M$ réservés au projet d’immobilisations relatif à la salle de
concert communautaire demeurent accessibles jusqu’à ce que d’autres options
visant la construction d’une salle de concert de taille moyenne ou
d’installations municipales consacrées aux arts, tel que définie comme étant
une priorité dans le contexte du Plan pour les arts et le patrimoine d’Ottawa
20/20, puisse être évaluée.
On November 28,
2007, City Council granted the Ottawa Chamber Music Society an extension to
February 28, 2008 to raise funds for the Community Concert Hall. The Ottawa
Chamber Music Society has advised the City of Ottawa that it will not be
continuing to champion the current Community Concert Hall initiative at this
time, since it was not able to secure the necessary private sector funding to
meet the City of Ottawa deadline.
The City's
unilateral rights to repurchase the 150 Elgin property expired on February 28,
2008. The City still has a first option to lease or purchase the Concert Hall
Space, based on the provisions of Section 12(c) of the Development Agreement
between Morguard and the City, for use as a visual or performing arts facility
identified as a priority in the City of Ottawa 20/20 Arts and Heritage Plan as
adopted by City Council on April 23, 2003.
The following
report outlines potential next steps for the Ottawa Community Concert Hall
project.
Le 28 novembre 2007, le Conseil municipal a accordé à la
Société de musique de chambre d’Ottawa une prolongation (jusqu’au 28 février 2008)
pour lui permettre de recueillir des fonds pour la salle de concert
communautaire. La Société de musique de chambre d’Ottawa a avisé la Ville
d’Ottawa qu’elle ne continuera pas de diriger l’initiative visant la salle de
concert communautaire pour le moment, étant donné qu’elle n’a pu recueillir,
auprès du secteur privé, le financement nécessaire avant la date limite fixée
par la Ville.
Le droit unilatéral de la Ville de racheter la
propriété située au 150, rue Elgin a expiré le 28 février 2008.
La Ville dispose toujours de la première option, soit louer ou acheter l’espace
prévu pour la salle de concert, en vertu des dispositions du
paragraphe 12(c) de l’entente d’aménagement conclue entre Morguard et la
Ville, en vue d’y établir des installations consacrées aux arts visuels ou aux
arts de la scène, à titre de priorité dans le contexte du Plan pour les arts et
le patrimoine d’Ottawa 20/20, tel qu’adopté par le Conseil municipal
le 23 avril 2003.
Le rapport qui suit fait ressortir les prochaines
étapes potentielles du projet de salle de concert communautaire d’Ottawa.
In May 2004, as part of a combined residential/office/retail development, the Ottawa Chamber Music Society (OCMS) and Morguard Elgin began to partner on a design and construction plan for a 925-seat Community Concert Hall at 150 Elgin Street. Over 700 anticipated uses by over 30 music organizations, festivals, broadcasters and recording players were identified for the planned 51,528 square foot concert hall, Ottawa’s first purpose-built, mid-sized concert venue.
In October 2004, City Council approved the 150 Elgin Street Concert Hall Business Plan Evaluation Report (ACS2004-DEV-BUS-0007), committed $5.47M in municipal capital funding to the project, and approved the waiving of permit fees and development charges in the amount of $925K.
In March 2006, provincial funding in the amount of $6.5M was announced for the Community Concert Hall and was transferred to the City. At the request of the Ottawa Chamber Music Society, City Council approved the transfer of $500,000 from the $6.5M provincial funding to OCMS on May 24, 2006 to offset project management costs and to finalize the design and building program for the facility.
On February 14, 2007, City Council approved the extension of the City’s endorsement and funding deadline from September 30, 2006 to November 30, 2007 (ACS 2007-CPS-CSF-0003) in order for the OCMS to continue its work aimed at realizing federal government and private sector funding for the Community Concert Hall.
On November 28, 2007, City Council granted the Ottawa Chamber Music Society an extension to February 28, 2008 to raise funds for the Community Concert Hall (Recommendation 1 from Motion No. 25/6 as amended by Motion No. 25/7).
Recommendation 2 from this amended Motion, “Be it further resolved that if the federal government does not make a firm financial commitment within this extension period the City of Ottawa may withdraw its funding commitment as well as its endorsement of the Provincial funding for the project, upon receipt of a report from staff indicating the status of the Federal Government’s final funding commitment” lost on a division of 11 yeas to 13 nays.
At this same November 2007 City
Council meeting, a letter addressed to Mayor O’Brien from the Honourable Josée
Verner, Minister of Canadian Heritage, Status of Women and Official Languages
was received, read and added to Council minutes. This letter indicated that the federal government had
conditionally earmarked up to $8M for the Ottawa Community Concert Hall, a
contribution that would be the largest to date through the Cultural Spaces
Canada program.
The letter also advised that the deadline for
consideration of the federal Community Concert Hall funding file would be
extended until February 28, 2008, to allow the OCMS to complete its
negotiations with a major sponsor and to ensure that the builder was able to
begin construction as planned. Further
consideration of the OCMS Concert Hall file would occur if a significant
portion of the private sector support were in place by February 28, 2008.
The OCMS fundraising strategy, developed in 2004 with the assistance of professional fundraising advisors at Ketchum Canada Inc., had been firstly to secure funding commitments from all three levels of government, secondly to obtain a private sector naming sponsor, and finally to launch a high-profile, championed public fundraising campaign in order to secure major sponsors, leading gifts, and individual philanthropic donations.
In February 2007, federal officials informed the OCMS that confirmation of significant progress in securing private sector funds was required before federal funding recommendations could be made. OCMS representatives revised their fundraising plan and began to increase private funding efforts, as a pre-condition to a federal funding decision.
When the deadline extension from November 30, 2007 to February 28, 2008 was approved, the OCMS had raised 68% of the total $38M Concert Hall budget, which included a $5M endowment to fund concert hall operations. This total revenue was achieved through the following contributions, pledges and conditional commitments:
Municipal government funding $5,470,000
Federal government (CSC funding) up to $8,000,000
Morguard (private sector) $3,800,000
Philanthropic pledges over $1,000,000
DISCUSSION
Following Council approval of the funding deadline extension to February 28, 2008, the OCMS continued the effort to obtain a naming sponsor from the corporate sector. The progress that the organization had made with one large institution prior to the November 28th deadline did not materialize. OCMS proceeded with two strategies in an attempt to sell Community Concert Hall naming rights. The first strategy continued to aim at the corporate sector, while the second strategy aimed to secure major philanthropic gifts from individuals and families.
The OCMS approached two professional fundraising firms in early January 2008 and both felt that the timeframe was insufficient for success. The period from November 28, 2007 to February 28, 2008 actually resulted in a 6-week time period from mid-January to the end of February, due to the Christmas break. Corporate sponsorships and major gift campaigns generally take 12 to 18 months to conduct.
The Friends of the Concert Hall Committee (a coalition of community stakeholders) worked actively to identify prospects, to assign responsibilities for follow up and to pursue private opportunities. On the corporate side, expressions of interest were received from four banks, various corporations were actively solicited, and many corporate requests were pursued simultaneously.
On the philanthropic side, a senior representative from an expert philanthropic management consulting firm helped to facilitate major gift cultivation, focusing on larger gifts from individuals who aim to give for purely philanthropic reasons. This individual shared with the Committee his experience in annual, major and planned giving in the United States and Canada.
The Committee generated 110 possible contacts, and followed up with the 42 that were strong possibilities. Regrettably, none of these turned into commitments or pledges.
In official communication dated March 4, 2008 (Document 1), the Ottawa Chamber Music Society has advised the City of Ottawa that it will not be continuing to champion the current Community Concert Hall initiative at this time. The organization indicated that it had not been able to secure the necessary private sector funding in order to meet the City of Ottawa requirement to have in place all of the construction costs.
OCMS stated that it would be willing to continue to pursue options in collaboration with the City and other community stakeholders; however, the timelines were beyond its control. The OCMS thanked the Mayor and members of Council for their support and indicated that it would now turn all of its energy towards the upcoming festival and related organizational development.
$500,000
Advance of Provincial Funding to OCMS
At its meeting of May 24, 2006, Council approved the transfer of $500,000 of the $6.5M provincial grant to the OCMS to offset project management costs and to finalize the design and building program for the facility. The monies were released to OCMS without a requirement to repay the advance should the project not proceed.
According to the OCMS, the full amount of $500,000 has been expended in project management, design, legal, and fundraising costs. OCMS has indicated that its auditors will be conducting an annual audit in March 2008, and will verify that the total expenses attributed to the project amount to $589,000. Audited statements will be forwarded to the City at the earliest possible time.
The City's unilateral rights to repurchase the 150
Elgin property expired on February 28, 2008.
The City still has a first option to lease or purchase the Concert Hall
Space, based on the provisions of Section 12(c) of the Development
Agreement between Morguard and the City, for use as a visual or performing
arts facility identified as a priority in the City of Ottawa 20/20 Arts and
Heritage Plan as adopted by City Council on April 23, 2003.
The City's ability to exercise
this option will be triggered when Morguard advises the City that the OCMS
Concert Hall is no longer part of the proposed development and formally
requests the City to advise as to whether or not the City is going to exercise
its option.
Impacts of OCMS Inability to Meet Deadline
The OCMS failure to meet the February 28, 2008 deadline results in the following impacts:
1. The City has an opportunity to consider other
mid-sized concert hall or arts facility options, as identified as priorities
within the Ottawa 20/20 Arts and Heritage Plan, for allocation of the $5.47M
capital commitment that was made to the Ottawa Chamber Music Society for the
development of a Concert Hall.
2. The Department of Canadian Heritage will determine if it proceeds to
reallocate the $8M earmarked for the Concert Hall to other Cultural Spaces
Canada (CSC) applicants. The program
authority for CSC expires in March 2010, and the remaining program resources
have been largely expended. Confirmation
of program renewal has not been received at this point in time.
3. The City must obtain the Province of Ontario’s
concurrence to reallocate the remaining $6M contribution it had made for an
Ottawa Community Concert Hall in March 2006 to another mid-sized concert hall
or other Ottawa 20/20 Arts and Heritage Plan arts facility option.
4. Once officially advised by Morguard that the OCMS Concert Hall is no
longer a part of the 150 Elgin proposed development, the City of Ottawa will
need to confirm to Morguard Elgin
in writing whether or not it will be exercising its first option right to lease
or purchase the Concert Hall space, and whether or not the Development
Agreement provisions for alternate use by Morguard Elgin should proceed.
The Community and Protective Services Department has consulted with the Ottawa Chamber Music Society, the Department of Canadian Heritage, Legal Services, Financial Services and Real Property Asset Management on this report.
The City of Ottawa Arts, Heritage and Culture Advisory Committee passed a motion related to the Concert Hall at its February 28th meeting (Document 2).
FINANCIAL IMPLICATIONS
Currently there is $11.47M available for the Community Concert Hall project. $5.47 million was approved in the 2005 Capital Budget and $6.5 million was received from the Provincial Government in June 2006 of which $.5 million was advanced to the Ottawa Chamber Music Society as approved by Council in May 2006.
CITY
STRATEGIC DIRECTIONS
This report has an
impact on the City Strategic priority Sustainable, Healthy and Active City,
Objective 8: to operationalize the Ottawa 20/20 Arts and Heritage Plan and the recently approved Museum Sustainability Plan.
Document 1 – Official Communication from Ottawa Chamber
Music Society; March 4, 2008
Document 2 – Motion Passed by the City of Ottawa Arts,
Heritage and Culture Advisory Committee; February 28, 2008
Community and Protective Services, RPAM and Financial Services will implement any directions approved by Council.
Arts, Heritage and Culture Advisory
Committee (AHCAC)
Motion on the Elgin Street Concert Hall
Lands and Existing Financial Support
(February 28, 2008)
WHEREAS, the Ottawa 20/20 Plan’s Arts and Heritage pillar recognized the economic and social benefits of strong local cultural groups and facilities,
WHEREAS, the Ottawa 20/20 Plan’s Arts and Heritage pillar also recognized the severe shortage of local cultural facilities,
WHEREAS, the Morguard/Elgin Street Concert Hall plan was an innovative public private partnership that would address the need for a medium-size concert hall in our city,
WHEREAS, the Elgin and Laurier St. land remains the last major development property in the City Hall precinct,
WHEREAS, all three levels of government recognized the social and economic value of such a cultural facility in the heart of downtown Ottawa and collectively pledged over $24 million toward its construction,
Though the Concert Hall has attracted much public attention and public support, the OCMS Concert Hall Committee was not successful at attracting a naming sponsor,
BE IT RESOLVED THAT, the City of Ottawa Council communicate in writing to Morguard Corporation its gratitude for its support for the Concert Hall project and express its support for a future public private partnership on the said Elgin/Laurier lands,
BE IT FURTHER RESOLVED THAT, the City of Ottawa Council set aside and allocate its $6.395 million ($5.47M capital funding plus $925K waiving of development charges/permits) in financial support to the Concert Hall or, if not possible, towards a future city arts facility,
BE IT FURTHER RESOLVED THAT, the City of Ottawa Council communicate in writing to the provincial government that the City intends to set aside and allocate the provincial financial support for the Concert Hall already in its possession toward a concert hall or a city arts facility in the future,
BE IT FURTHER RESOLVED THAT, the City of Ottawa Council communicate in writing to the federal government its strong desire for the federal government to maintain its financial pledge toward such a future city arts facility.
Community concert hall CAPITAL
project
projet
D’IMMOBILISATION de la salle de concert communautaire
ACS2008-CPS-CSF-0003 city-wide / À l’Échelle de la ville
Ms. C. Hendrick,
Director of Cultural Services and Community Funding, provided an overview of
the staff report.
Responding to
questions from Councillor El-Chantiry with respect to the motion from the Arts,
Heritage and Culture Advisory Committee, which was incorporated in the staff
report, Ms. Hendrick confirmed that she was aware of the motion and Mr. C.
Thomson, Manager of Corporate Development and Environmental Law, indicated he
was unsure whether or not the motion related specifically to the Advisory
Committee’s workplan. However, he
submitted that, as with any matter from an Advisory Committee, it was for
advice purposes only and was not binding on the Standing Committee or Council.
In response to
questions from Councillor Holmes, Mr. Kanellakos, Deputy City Manager of
Community and Protective Services, clarified the report recommendation and
explained its purpose. He advised that
since the Ottawa Chamber Music Society’s announcement as to the status of the
Concert Hall project and the publicity surrounding this, staff had been
approached by several proponents with respect to the funding and opportunities
for putting forward a proposal to resurrect the project, either with Morguard or
in some other fashion. He noted these
discussions were still very much information.
He remarked that the money had been connected to a cultural heritage
priority project and he indicated staff’s view was that if the money remained
available, there would be the ability, in the next couple of months, to assess
the aforementioned opportunities.
Therefore, knowing that the space may be available, staff should be in a
position to also understand what other opportunities existed from other
proponents and what kind of partnerships could be developed. However, he maintained that the funding
envelope would be a fundamental piece of any such discussions.
In answer to a
follow-up question from the Councillor, he confirmed that effectively, staff
was asking for time in order to investigate possibilities with other potential
interested parties.
Responding to a
question from Councillor Deans with respect to the interest received and the
potential of a successful outcome, Mr. K. Kirkpatrick, City Manager, expressed
his support for the recommendation before Committee. He indicated there had been three (3) expressions of interest;
one from the private sector and two from significant public institutions and he
believed these warranted discussions beyond the first-blush discussions staff
had already had with these proponents, which he felt should happen in a short
period of time. Furthermore, he
highlighted the fact that, although the funding was provided to the City on an
unconditional basis from the Province, the intent was clearly for the money to
be used for a significant arts and culture project in this community. Therefore, he recommended Council have
regard for that in terms of how the funding would ultimately be used. He noted that the terms of the agreement with
Morguard provided for such an option; that the City would have the opportunity
to consider whether the space could be used for one of Council’s other priority
projects, identified in the Arts and Culture Master Plan. He believed there was the potential for
something to be developed that would represent an alternative, which Council
would wish to have the opportunity to consider. On this basis, and with regard to the intent of the Provincial
funding, he strongly recommended that Committee consider this report’s
recommendation.
Mayor O’Brien noted
that a number of delegations had registered to speak in support of this
item. He wondered if they would take
“yes” for an answer. In response, the
Mayor received confirmation from the gallery that no one wished to speak in
opposition and that they would take “yes” for an answer.
The following
individuals had registered to speak in support of this item:
·
Nick
Masciantonio, Chair of the Arts, Heritage and Culture Advisory Committee;
·
Stuart Conger;
·
Nadia Ridout;
·
Sandy Bason,
Ottawa Chorale Society;
·
Julia Armour;
·
Maria Somjen;
·
Madeleine
Terrien; and
·
Alan Bowker.
At this juncture,
Committee proceeded to a vote.
That the Corporate Services and Economic
Development Committee recommend to Council that the $5.475M Capital Project for
the Community Concert Hall remain open until further options for the
development of a mid-sized Concert Hall or other city arts facility, as
identified as a priority within the Ottawa 20/20 Arts and Heritage Plan, can be
assessed.
CARRIED
YEAS (5): R. Bloess, D. Deans, M. McRae, M.
Wilkinson, Mayor O’Brien
NAYS (4): G.
Brooks, E. El-Chantiry, R. Jellett, S. Desroches