Syl Apps Community Centre Conversion from Ice Operation to Multi-Functional Facility Fall William St. Paris, ON. Current Business Description

Transcription

1 Syl Apps Community Centre Conversion from Ice Operation to Multi-Functional Facility Fall William St. Paris, ON Current Business Description Syl Apps Community Centre has functioned as an arena up until February 2011 when the Brant Sports Complex was opened and ice activities were re-located to the new facility. The facility is currently rented by user groups directly through the County of Brant. The facility will be used for the following activities from February August 2011: Arena - Main Floor (Sport Court Flooring Installed) Ball/Roller Hockey Indoor Training - Soccer Special Events - Firefighters Fish Fry Summer Camp Fencing Camp Roller Derby Practice Lobby Summer Parks and Programs Staff Paris Horticultural Club - Plant Sale Seniors Craft Show Commemorative Hall (2 nd Floor) Recreational Programs - Paris Fair Fun, Fencing Camp, Home Alone Workshop, Youth Training and Vitality, Tu Tu Tushies, Cardio Combo, Muscle Party, Cardio Combo 55+, Zumba Gold 55+, Date Night, Artisitic Impressions, Fitness Boxing, Paint and Play, Toddler Treasure Chest Private Rentals (Buck and Does) Optimist Youth Dances Weekly Paris Seniors Club meetings Offices/Meeting Room/Storage Recreational Program - Art Works Corporate Meetings, Rentals Parks Lead Hand Office 1

2 Summer Camp Coordinator s Office Storage for Parks Equipment Exterior Property Recreation Programs - Skateboarding Basics, Skate Boarding,Skateboarding Camp, Ultimate Camp Adventure Ball Diamond Rentals Canoe Parking and Washrooms Optimist Club Storage Barn for Parks and Facilities Program Impact If Syl Apps Community Centre was not available to the Program Division it would be extremely difficult to find a similar facility that meets all the program needs. The most challenging programs to re-locate would be summer camp and fitness programs. Summer Camp is centrally located with easy access into and out of the facility for parents. Campers are able to walk to many activities within Paris due to the centralized location. If the camp was moved extra bussing would be required to transport children around town to participate in activities. Program supplies are currently located in a large storage area in the Commemorative Hall and are easily accessible for staff and program participants. Fitness programs have specialized equipment that is heavy, awkward and not easily transported, therefore a storage area specific to the program is required. Most alternative spaces have limited storage space or no available storage space available. It is anticipated that some programs could be re-located, but others would need to be cancelled if Syl Apps were not available. Additional costs would be incurred through rental of facilities which would then be passed on to the program participant. Increasing program costs would have a detrimental affect as some participants would find programs unaffordable. Another possible impact is that programs would not run at all due to low registration. The program division utilizes Syl Apps annually for approximately 1,009 hours for camps, children and youth programming, training and fitness programs. It should be noted that if the Council approved rates were applied to hours booked by programs the value of the facility to the community from a programming perspective would be $32,342. Option 1 - Indoor Turf Facility 2

3 As of September 2011, pending funding approvals, the Syl Apps Community Centre will become home to the Paris Historical Society and Museum who will renovate a portion of the lower level to house their archives, provide interpretive programming and become a cultural asset close to the downtown core. The Museum will continue to operate on a full-time basis and be open to the public at least 5 days per week. The main floor of the arena will be converted to a year round turf facility. Many different activities will be able to be played on the turf including; * Indoor Soccer * Field Hockey * Disc Golf * Indoor Golf * Football * Softball * Baseball * Badminton * Lacrosse * Lawn Bowling/Bocce Ball * Rugby * Ultimate Frisbee * Fencing * Indoor Walking and Jogging * Futsal The County will operate the turf facility in a similar fashion as the arenas. Staff will request field users to submit their needs and then allocate the space based on the same principles of the ice allocation policy. An Indoor Field allocation policy will be developed over the summer for approval and implementation prior to operation. The second floor Commemorative Hall will remain in operation and be utilized by the Programs Division for fitness, recreational programs and camps. The Hall will also continue to be available to the public for rentals. If turf is installed the Paris Fire Fighter Fish Fry would have to be located to another facility. If the Brant Sports Complex was selected as the alternate site, the date would have to move into June to accommodate current ice use. Facility Services The snack bar area will be open for peak hours in the evening and on weekends. It is anticipated that approximately $5,138 will be generated on an annual basis from the snack bar operation. Vending machines will also be available at the facility to service patrons. Washroom facilities located at Syl Apps CC will continue to be available for canoeists and ball diamond users. The parking lot will be available for parks and facility users, museum patrons, canoe outfitters and the Optimist Club. 3

4 Market Analysis According to the Canadian Soccer Association s 2008 demographic report, soccer is the still the nation s number one participatory sport with over 873,000 registered players. The Twin Rivers League (Brant County and area) has approximately 2,400 players who play outdoor soccer. The Paris Soccer Club has completed a survey with its members and at least 500 players are interested in playing indoor soccer in Paris. No indoor soccer facilities are available in Brant County currently. Players are forced to use school gymnasiums which offer minimal availability for programs due to other sports well-suited for hard courts taking precedence. The nearest indoor soccer facilities are located in Woodstock, Ancaster and Cambridge. Parents have indicated that they prefer a local accessible facility. Many people do not have the means to spend extra time and money to travel outside the County to participate in these programs. Although a facility may be constructed in Brantford, this project would not be complete until 2014 at the earliest and is still in the initial planning stages with no funding source at present. Within any given community, the age characteristics of the resident population are an important aspect to consider when planning public recreation programs and facilities. According to statistics Canada there are approximately 7,230 children between the ages of 5 and 19 in Brant County. Based on the Ontario Soccer Association demographics, there are 314,340 youth playing soccer in Ontario, which represents approximately 13% of the population. Since 2,400 players are actually registered in the Brant County Twin Rivers League we know that we have approximately 16.6% of the youth population participating in soccer currently. It is a safe assumption that many children playing soccer outdoors may wish to play indoor soccer. This information has been corroborated with the survey done by the Paris Soccer Club which indicates that 500 children from the County are interested in pursuing this sport year-round. Economic considerations related to the financial capacity of a market areas occupants and their ability to purchase goods and services. Among the economic factors that can be considered in this type of analysis are median household income levels. Statistics Canada shows that the median income for Brant is at or above the provincial average, indicating that soccer is an affordable sport for most. Soccer is an affordable winter sport in relation to other sports such as hockey, making it an attractive sport to participate in. Management The Syl Apps Community centre will be operated by municipal employees. The recommended operating model will place a full-time supervisor in the facility along side a contract employee. Several other part-time employees will be required to assist with snack bar operations as well as cleaning of the banquet hall. 4

5 The supervisor assigned to oversee the Syl Apps Community Centre will be able to be responsible for other operational aspects of parks and facilities in the spring/summer that are currently under the jurisdiction of the Brant Sports Complex. These include: Paris Lawn Bowling Club, Paris Community Pool, Canoe Portage, Cobblestone Park, Paris Skate Park and Bean Park. 5

6 Risks Low Revenue projections are overestimated Expense projections are underestimated Hall rentals decline substantially Medium High Unheated facility limits turf rentals Unforeseen building repair New facilities built in area impact the rental revenue Extreme cold may impact turf conditions and limit the ability to effectively sanitize the turf None with a high probability Financial Plan The attached operating budget is a realistic representation of the first full year of operation. The facility proves to be financially sustainable given no unexpected expenses. Any surplus funds should be allocated to a reserve fund for future capital expenses. Operational Budget - Indoor Field House Revenue Budget Field Rentals ( Oct. 1 - Apr. 1) 162, hrs X 24 X $110 = $150,480 3 hrs X 26 X = $10,124 Daytime Rentals 25 X $80 = $2,000 Summer Field Rentals (Apr. 2 - Sept. 30) 32,420 8 hrs X 26 weeks X $71.50/hr 8 hrs X 26 X Hall Rentals 16,750 Buck and Does 20 X 565 = $11,300 Youth Dances 925, Dinners 5 X 410 = $2,050, Misc Hrly $2,475 Walking Club Membership $15 X 200 3,000 6

7 Drop-in Program Fees Home Schoolers 400, Toddler Time 400, Carpet Bowling 640 1,440 Advertising 5,000 Snack Bar (Net) 5,135 Museum Recovery Operating Expenses 7,149 Total Revenue 233,498 Expenses Full-time Staff 62,069 Contract and Part-time Staff 48,820 Seasonal Contract 6m $17,315, PT Maintenance $24,585, Snack Bar, 720 Facility Booking 720 Cleaning Supplies 4,000 Janitorial supplies and turf disinfection Office Supplies 600 Building Repairs, Equipment, General Supplies 6,200 Window, door repairs, locks, plumbing parts etc Telephone 3,000 Contracted Services (garbage, snow plowing, painting etc) 11,799 Snow plowing 3,500, Security 975, Garbage 3000, Elevator Maint Misc. plumbing electrical 2000 General Supplies (leased equipment, safety etc.) 2,000 AED, Fire Extinguishers, First Aid, Batteries Vehicle Maintenance and Fuel 1,500 Hydro/Water 20,000 Heating / Gas 20,417 Insurance 13,500 Debt Financing 32,000 Turf, Equipment, Heating over benches, Netting Total Expenses 226,625 Net 6,873 7

8 The initial capital expense will include the purchase and installation of turf, heating upgrades in the players benches, maintenance and sports equipment and netting. The total capital investment required is $150,000. The funds would be borrowed and repayment terms would be funded through the facility operations directly, thereby having no direct impact to the taxpayer. Option 2 - Sport Court Business Description The main floor of the arena will be converted to a year round active floor facility. Many different activities will be able to be played on sport court flooring including; * Roller Hockey * Disc Golf * Softball * Fencing * Volleyball * Camps * Ball Hockey * Lacrosse * Ultimate Frisbee * Tennis * Shows * Badminton * Indoor Walking and Jogging * Futsal * Basketball * Soccer * Dances The facility would be opened on a part-time basis, mainly in the early evening with some weekend hours. The year-round demand for the facility is unknown, but based on recent enquiries; it appears that it is not in high demand for any particular activity. Basketball nets would be purchased, allowing for a more diverse user base. The second floor Commemorative Hall will remain in operation and be utilized by the Programs Division for fitness, recreational programs and camps. The Hall will also continue to be available to the public for rentals and the Paris Seniors Club. Flooring Options New Sport Court Flooring costs approximately $3.25 per square foot and the total investment required for Syl Apps would be $44,300 to acquire this type of flooring. Another alternative would be to purchase used sport court flooring. The used price ranges from $ $1.50 per sq. ft. plus shipping. The purchase of a used sport court floor would be approximately $22,000. Four Season Sports is prepared to sell the floor currently installed at Syl Apps to the County at a cost of $12,500. Generally the floors have a lifespan of 15 years. The floor that 4 Season Sports is offering is 10 years old. Facility Services The snack bar area would be only opened when the facility had the type of activity to support sufficient sales. It is anticipated that $3,000 will be the net income from vending and snack bar services on an annual basis. 8

9 Washroom facilities located at Syl Apps CC will continue to be available for canoeists and ball diamond users. The parking lot will be available for parks and facility users, museum patrons, canoe outfitters and the Optimist Club. Market Analysis The sport of ball hockey is ranked 21 of 29 sports most practiced by children aged 5-15 in Canada. Approximately 1.9% of active children participate in ball hockey versus 44.1% who play soccer, which is ranked number one. Ball hockey and in-line hockey sport participation for ages 15+ is.8% of the population in relation to the number one activity of golf which has a 20.3% participation rate. (Source: Sport Participation in Canada, 2005) Ball Hockey International operates year-round outdoor ball hockey facilities in Brantford, Cambridge, London, Welland, St. Catharines and Orillia. BHI offers several divisions for all ages including Mens, Ladies, Co-ed and Youth. There have been no indications that other facilities are needed to accommodate the programming currently in place at the Brantford facility which serves the County as well. The Syl Apps Community Centre is currently scheduled for approximately 14 hours per week for 16 weeks for roller hockey and ball hockey. There have been a few other hours scheduled for baseball tryouts this spring and no other potential users have come forward to date. Although the in-line hockey program offered in Paris has grown and is a stable summer tenant, the County should not focus on this particular activity to generate new business. One of the most popular sports in Canada for all ages is basketball. The inclusion of a basketball court into the arena flooring would diversify the use of the facility and provide additional rental revenue possibilities. During the Fall and Spring the programs division would possibly utilize the open space for some of their programs which would allow for more diversification of programs. Management The County will staff and operate the facility on an as required seasonal basis with parttime employees. A manager would oversee the facility from one of our other major community centres and assign the necessary staff to open and close the facility as demand dictated. The seasonal variability of rentals would make it difficult to schedule staff for regularly set hours. Risks Low 9

10 Revenue projections are overestimated Expense projections are underestimated Hall rentals decline substantially Medium High Unheated facility limits floor rentals Unforeseen building repair Outdoor year-round ball hockey facility in Brantford limits market Floor investment is not recouped through revenue in first 5 years Financial Plan The attached operating budget is a realistic representation of the first full year of operation. An operating loss is projected due to the unpredictability of revenue. There are no strong indications that revenues will increase incrementally over time to become a sustainable facility. Operational Budget - Indoor Sport Court Floor Revenue Budget Floor Rentals ( Oct. 1 - Apr. 1) 58, hrs X 24 X $60.60 = $29, hrs X 24 X = $27,540 Daytime Rentals 36 X $42.42 = $1,527 Summer Floor Rentals (Apr. 2 - Sept. 30) 27,497 8 hrs X 24 weeks X $60.60/hr = 11,635 8 hrs X 24 X = 14,688 Daytime Rentals 10 hrs X $42.42 = 424 Main Floor Event Hall Rentals 17,590 Buck and Does 20 X 565 = $11,300 Youth Dances 925, Dinners 5 X 410 = $2,050, Misc Hrly $2,475 Seniors Club rentals $840 Walking Club Membership $15 X 200 3,000 Drop-in Program Fees 1,200 Home Schoolers 400, Toddler Time 400, Shuffleboard

11 Advertising 4,000 Snack Bar (Net) 3,000 Museum Recovery Operating Expenses 6,800 Total Revenue $121,242 Expenses Full-time Staff Wages and Benefits 6,115 General Maintenance 4 hrs X 52 wks X 29.40/hr Part-time Wages and Benefits 48,519 PT Operator 45 hrs X X 24 wks = $20,380 PT Maintenance 9 hrs X X 50 = $5,670 PT Operator 28 hrs X $18.87 X 24 = $12,680 Hall Rental Supervision and set-up/clean-up 10 hrs X X 35 = $6,604 Facility Booking 2 hrs X 50 X 21 = $2,100 Programs Assistant 3 hrs X X 30 = 1,085 Cleaning Supplies 3,500 Janitorial supplies Office Supplies 300 Building Repairs, Equipment, General Supplies 5,500 Window, door repairs, locks, plumbing parts etc Telephone 2,820 Contracted Services (garbage, snow plowing, painting etc) 11,299 Snow plowing 3,500, Security 975, Garbage 3000, Elevator Maint Misc. plumbing electrical 1500 General Supplies (leased equipment, safety etc.) 1,800 AED, Fire Extinguishers, First Aid, Batteries Vehicle Maintenance and Fuel 1,200 Hydro/Water 18,000 Heating / Gas 18,375 Insurance 13,500 Debt Financing of $72,900 15,918 New Flooring $44,300, Basketball Nets 5,000 (2), Soccer Nets 2,800, Misc. Equipment 2,500, Heating over benches 8,000, Netting 10,000 11

12 Total Expenses $146,846 Net -$26,354 Debt Financing of Used Flooring Option 50,300 10,983 Net -$21,116 Debt Financing of 4 Seasons Option $40,800 8,908 Net -$19,140 The initial capital expense for this option will include the purchase and installation of sport court flooring, heating upgrades in the player s benches, sports equipment and netting. The total capital investment required ranges from $40,500 - $72,900 depending on the flooring option chosen. The funds would be borrowed and repayment terms could be funded through the facility operations directly, therefore resulting in an additional $19,140 - $25,986 being funded from the tax base. Option 3 - Existing Floor Surface The main floor of the arena will be converted to a year round active floor facility. Many different activities will be able to be held on the concrete floor as it exists today; * Roller Hockey * Softball * Fencing * Ball Hockey * Lacrosse * Trade Shows * Indoor Walking and Jogging * Basketball * Special Events The facility would be opened on a part-time basis, as required. weekend hours. The yearround demand for the facility is unknown, but based on past practices; it appears that it has limited demand. Basketball nets could be purchased, allowing for a more diverse user base. A request for proposal could be issued to see if there is any interest from any community group, business or non-profit agency to use the facility for expanded or nontraditional arena use. No investment would be made to the existing facility unless a mutually beneficial proposition was determined to have long-term benefits. The second floor Commemorative Hall will remain in operation and be utilized by the Programs Division for fitness, recreational programs and camps. The Hall will also continue to be available to the public for rentals and the Paris Seniors Club. 12

13 Facility Services The snack bar area would be only opened when the facility had the type of activity to support sufficient sales. No annual revenue is forecasted for the facility in this proposal Washroom facilities located at Syl Apps CC will continue to be available for canoeists and ball diamond users. The parking lot will be available for parks and facility users, museum patrons, canoe outfitters and the Optimist Club. Market Analysis The Syl Apps Community Centre is currently scheduled for approximately 14 hours per week for 16 weeks for roller hockey and ball hockey. It is anticipated that this historic use would continue and possibly expand slightly. One of the most popular sports in Canada for all ages is basketball. The inclusion of a basketball court into the arena flooring would diversify the use of the facility and provide additional rental revenue possibilities. No other analysis is available from a business perspective at this time. Further information could be forthcoming from a Request for Proposal process. Management The County will staff and operate the facility on an as required seasonal basis with parttime employees. A manager would oversee the facility from one of our other major community centres and assign the necessary staff to open and close the facility as demand dictated. The seasonal variability of rentals would make it difficult to schedule staff for regularly set hours. Risks This option provides for minimal risks in all areas and allows for other operating options to be explored. Financial Plan The following budget represents an estimated budget for Syl Apps Community Centre to remain open as is, with a small capital investment. Operational Budget - Existing Floor Revenue Budget Floor Rentals ( Oct. 1 - Apr. 1) 25,632 13

14 10 hrs X 24 X $50.50 = $12,120 8 hrs X 24 X = $12,240 Daytime Rentals 30 X $42.42 = $1,272 Summer Floor Rentals (Apr. 2 - Sept. 30) 24,612 8 hrs X 24 weeks X $50.50/hr = 9,696 8 hrs X 24 X = 12,240 Daytime Rentals 10 hrs X $42.42 = 424 Main Floor Rentals 3 X = $2, Hall Rentals 17,590 Buck and Does 20 X 565 = $11,300 Youth Dances 925, Dinners 5 X 410 = $2,050, Misc Hrly $2,475 Seniors Club rentals $840 Walking Club Membership $15 X 100 1,500 Advertising 0 Snack Bar (Net) 0 Museum Recovery Operating Expenses 6,800 Total Revenue 76,134 Expenses Full-time Staff Wages and Benefits 6,115 General Maintenance 4 hrs X 52 wks X 29.40/hr Part-time Wages and Benefits 27,089 PT Maintenance 9 hrs X X 50 = $5,670 PT Operator 28 hrs X $18.87 X 24 = $12,680 Hall Rental Supervision and set-up/clean-up 10 hrs X X 35 = $6,604 Facility Booking 1 hrs X 50 X 21 = $1,050 Programs Assistant 3 hrs X X 30 = 1,085 Cleaning Supplies 3,000 Janitorial supplies Office Supplies 300 Building Repairs, Equipment, General Supplies 5,500 Window, door repairs, locks, plumbing parts etc Telephone 2,820 14

15 Contracted Services (garbage, snow plowing, painting etc) 11,299 Snow plowing 3,500, Security 975, Garbage 3000, Elevator Maint Misc. plumbing electrical 1500 General Supplies (leased equipment, safety etc.) 1,800 AED, Fire Extinguishers, First Aid, Batteries Vehicle Maintenance and Fuel 1,200 Hydro/Water 18,000 Heating / Gas 18,375 Insurance 13,500 Capital 5,500 Basketball Nets 5,000 (2), Misc. Equipment 500, Total Expenses 114,498 Net -38,364 15