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Regional Municipality of Wood Buffalo
Sports and Entertainment Centres
November 19, 2013
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What is a Sports and Entertainment Centre
November 19, 2013
• Commencing in the early 1990’s, central and western Canada have experienced a “boom” in the construction of new, state-of-the-art multi-purpose spectator arenas and event centres
• These new facilities contain many of the same amenities and features that exist within much larger NHL buildings, including:
• luxury suites• club seat areas• restaurants• retail outlets• enhanced food and beverage / concession areas• larger concourses• wider seating• corporate hospitality areas• better advertising positions and opportunities
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What is a Sports and Entertainment Centre
November 19, 2013
• The main impact of these enhancements has been to:• enhance the in-game experience of fans and thereby increase
average attendance• provide greater revenue generating opportunities to both the
main tenant hockey club and the facility• broaden the range of other events, including concerts, family
shows, other sporting events, trade shows, corporate events, community events, etc. which can be booked into facility
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Sports and Entertainment Centre – Images
November 19, 2013
Interior Savings Centre, Kamloops BCSize: 5,500 seatsLocation: downtownDate opened: 1993Cost: $18.5 millionLead tenant: Kamloops Blazers
(WHL)
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CN Centre, Prince George BCSize: 6,000 seatsLocation: suburbanDate opened: 1995Cost: $20.0 millionLead tenant: Prince George
Cougars (WHL)
Sports and Entertainment Centre – Images
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Prospera Place, Kelowna BCSize: 6,200 seatsLocation: downtownDate opened: 1999Cost: $19.0 millionLead tenant: Kelowna Rockets
(WHL)
Sports and Entertainment Centre – Images
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November 19, 2013
Western Financial Place, Cranbrook BCSize: 4,300 seats (add-on
to a large community recreation complex)
Location: suburban locationDate opened: 2000Cost: $22.6 million (cost of
add-on 4,300 seat facility; total project was approximately $30.0 million)
Lead tenant: Kootney Ice (WHL)
Sports and Entertainment Centre – Images
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November 19, 2013
Save-on-Foods Memorial Centre, Victoria BCSize: 7,000 seatsLocation: downtownDate opened: 2003Cost: $32.0 millionLead tenant: Victoria Royals
(WHL)
Sports and Entertainment Centre – Images
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November 19, 2013
Prospera Place, Chilliwack BCSize: 5,000 seats plus
community ice padLocation: suburban (abutting
downtown)Date opened: 2004Cost: $20.3 millionLead tenant: Chilliwack Chiefs
(BCHL)
Sports and Entertainment Centre – Images
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November 19, 2013
Encana Events Centre, Dawson Creek BCSize: 4,500 seats (part of
larger agriplex)Location: suburbanDate opened: 2008Cost: $20.0 millionLead tenant: n/a (the facility has
been without a lead tenant since 2012 when the NAHL Dawson Creek Rage folded)
Sports and Entertainment Centre – Images
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November 19, 2013
Events Centre, Langley BCSize: 5,000 seats (facility
also includes a community centre, gymnastics centre and three gymnasiums)
Location: suburbanDate opened: 2008Cost: $57.0 millionLead tenant: Langley Chiefs
(BCHL)
Sports and Entertainment Centre – Images
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November 19, 2013
South Okanagan Events Centre, Penticton BCSize: 5,100 seatsLocation: suburban (abutting
downtown)Date opened: 2008Cost: $78.0 millionLead tenant: Penticton Vees
(BCHL)
Sports and Entertainment Centre – Images
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November 19, 2013
Entertainment & Sports Centre, Abbotsford BCSize: 7,000 seatsLocation: suburbanDate opened: 2009Cost: $80.0 millionLead tenant: Abbotsford Heat
(AHL)
Sports and Entertainment Centre – Images
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November 19, 2013
Enmax Centrium, Red Deer ABSize: 5,800 seats
(currently undergoing expansion to 7,000 seats)
Location: suburban (located in Westerner Park, a agricultural fair grounds complex)
Date opened: 1991Cost: n/aLead tenant: Red Deer Rebels
(WHL)
Sports and Entertainment Centre – Images
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November 19, 2013
New Sports and Entertainment Centre, Medicine Hat ABSize: 5,700 seatsLocation: suburbanDate opened: 2016Cost: $64.7 millionLead tenant: Medicine Hat Tigers
(WHL)
Sports and Entertainment Centre – Images
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November 19, 2013
Mosaic Place, Moose Jaw SKSize: 4,500 seatsLocation: downtownDate opened: 2011Cost: $61.2 millionLead tenant: Moose Jaw Warriors
(WHL)
Sports and Entertainment Centre – Images
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November 19, 2013
Molson Centre, Barrie ONSize: 4,200 seatsLocation: suburban (built on
land donated by Molson Breweries)
Date opened: 1995Cost: $13.0 millionLead tenant: Barrie Colts (OHL)
Sports and Entertainment Centre – Images
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November 19, 2013
RBC Centre, Sarnia ONSize: 5,000 seats (part of
multi-pad complex)Location: suburban (built on
lands provided by Lambton College)
Date opened: 1998Cost: $18.5 millionLead tenant: Sarnia Sting (OHL)
Sports and Entertainment Centre – Images
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November 19, 2013
Powerade Centre, Brampton ONSize: 5,000 seats (part of
multi-pad arena and sport field complex)
Location: suburbanDate opened: 1998Cost: $24.5 millionLead tenant: Brampton Beast
(CHL)
Sports and Entertainment Centre – Images
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November 19, 2013
Hershey Centre, Mississauga ONSize: 5,400 seats (part of
multi-pad arena and sport complex)
Location: suburbanDate opened: 1998Cost: $22.0 millionLead tenant: Mississauga
Steelheads (OHL)
Sports and Entertainment Centre – Images
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November 19, 2013
Sleeman Centre, Guelph ONSize: 4,800 seats (built
into a former Eatons department store-anchored downtown mall)
Location: downtownDate opened: 1998Cost: $21.5 millionLead tenant: Guelph Storm (OHL)
Sports and Entertainment Centre – Images
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November 19, 2013
Budweiser Gardens, London ONSize: 9,100 seatsLocation: downtownDate opened: 2002Cost: $47.0 millionLead tenant: London Knights
(OHL)
Sports and Entertainment Centre – Images
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November 19, 2013
Essar Centre, Sault Ste. Marie ONSize: 4,800 seatsLocation: downtownDate opened: 2005Cost: $25.0 millionLead tenant: Soo Greyhounds
(OHL)
Sports and Entertainment Centre – Images
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November 19, 2013
GM Centre, Oshawa ONSize: 5,400 seatsLocation: downtownDate opened: 2005Cost: $45.0 millionLead tenant: Oshawa Generals
(OHL)
Sports and Entertainment Centre – Images
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November 19, 2013
Rogers K-ROCK Centre, Kingston ONSize: 5,200 seatsLocation: downtownDate opened: 2005Cost: $46.5 millionLead tenant: Kingston Frontenacs
(OHL)
Sports and Entertainment Centre – Images
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November 19, 2013
WFCU Centre, Windsor ONSize: 6,500 seats (part of
multi-pad recreation complex)
Location: suburbanDate opened: 2008Cost: $71.7 millionLead tenant: Windsor Spitfires
(OHL)
Sports and Entertainment Centre – Images
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November 19, 2013
Meridian Centre, St. Catharines ONSize: 5,000 seatsLocation: downtownDate opened: 2014Cost: $45.0 millionLead tenant: Niagara Ice Dogs
(OHL)
Sports and Entertainment Centre – Images
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November 19, 2013
Proposed new Event Centre, Thunder Bay ONSize: 5,700 seats
(proposed to be developed along side a 50,000 square foot of conference centre)
Location: downtownDate opened: 2017Cost: $106.1 millionLead tenant: t.b.d.
Sports and Entertainment Centre – Images
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Sports and Entertainment Centre – Uses
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Hockey
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Other Sports
Sports and Entertainment Centre – Uses
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Concerts
Sports and Entertainment Centre – Uses
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Family Shows
Sports and Entertainment Centre – Uses
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Other Entertainment
Sports and Entertainment Centre – Uses
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Community Events
Sports and Entertainment Centre – Uses
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Sports and Entertainment Centres – Financing
November 19, 2013
• Project financing of sports and entertainments generally includes a combination of:
• municipal financing (including an up-front capital contribution and / or municipal debenture)
• federal / provincial government support (grants)• community fundraising• private equity (in the case of P3 arrangements)
• Once open, operational responsibility can take the form of:• the municipality assumes all operating and financial risk• the municipality transfers a portion of operating risk to a
third party management company, but still retains all financial risk
• the municipality annually contributes a fixed amount to the building, with a private partner taking on any additional financial risk
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November 19, 2013
• Examples:• Kelowna
• City contributed $6.0 million up front and guaranteed $11.0 million in project debt
• City makes fixed annual payment to private partner in return for 1,500 hours of community access per year
• Private partner operates facilities with no additional obligation to municipality
• Kingston• Project financed through a combination of municipal reserves,
debentures, provincial grant, community fundraising and donations from local businesses
• Facility operations contracted to third party operator, who has put their management fee “at risk” (i.e., if the facility does not generate the level of net operating income projected, the operator does not earn its base management fee; if net operating profits are exceeded, the operator is entitled to retain a percentage of those excess proceeds
Sports and Entertainment Centres – Financing
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November 19, 2013
• Examples:• London
• City contributed $32.5 million up front and guaranteed $7.0 million in project debt
• Private partner contributed $2.5 million and is obligated to repay project debt
• Private partner operates facilities with no obligation to municipality
• Brampton• City contributed $7.0 million up front and guaranteed $15.5 million
in project debt• Private partner contributed $2.0 million• Private partner operates facilities and repays debt from net
operating income• City covers first $0.5 million of any operating loss (after debt
service), private partner covers next $0.25 million of any operating loss. City and private partner equally share any additional operating loss over $0.75 million
Sports and Entertainment Centres – Financing
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November 19, 2013
• Impetus to construct new Sports and Entertainment Centres has generally arisen from three factors:
• need to replace an aged “arena” facility• desire to achieve broader economic development goals• desire to enhance quality of life factors
• Broader economic development goals include:• sports and entertainment event hosting (and attracting events
that would not previously have considered coming to the community because of its lack of a suitable venue)
• visitor attraction and increased spending by visitors attending events held at the facility; and
• incremental investment and economic development impacts resulting the siting of the facility and its ability to (a) support complementary developments in its environs and (b) support new investment by broadening the range of amenities available within the community
Sports and Entertainment Centres – Benefits
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November 19, 2013
• Positive benefits which have resulted from new Sports and Entertainment Centres constructed since the mid 1990’s include:
• In Prince George BC, the CN Centre has had an “enormous beneficial impact on the community”, with positive benefits resulting from “the flood of visitors that come to town for events”.
• Kelowna BC similarly has realized significant benefits – when the facility was completed, Prospera Place was “on the outskirts of the downtown core” and “since its completion, other businesses and city buildings have popped to make the downtown something to behold”…”this venue helped a thriving cultural district develop in the surrounding area”.
• In Oshawa ON, the GM Centre is credited for producing economic spin-offs in the downtown core, attracting non-residents to the city, and for driving the “night time economy”. Moreover, with the opening of the GM Centre, the downtown commercial vacancy rate decreased from 21% in 2006 to approximately 11% by early 2011; in addition 83% of all building permits, by value, issued in downtown Oshawa between 1994 and 2011 where issued after the GM Centre opened (roughly $540 million).
Sports and Entertainment Centres – Benefits
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November 19, 2013
• In Guelph ON, the City made a number of investments in its downtown “cultural infrastructure” (including the Sleeman Centre, River Run Theatre and Market Square development), projects which have proven to draw people to the district, generate higher property values, support enhanced retail economies and provide associated returns from an enhanced tax base.
• In the case of Kamloops and Victoria, their Event Centres have been noted to contribute financially to downtown businesses, providing an enhanced vitality of surrounding businesses, including restaurants, bars, specialty retail shops and have contributed to the liveability of their respective downtown cores.
Sports and Entertainment Centres – Benefits
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November 19, 2013
Sports and Entertainment Centre – Benefits to RMWB• In addition to the above identified social, development and economic
development benefits, a number of direct and indirect economic benefits can arise within Fort McMurray and across the Regional Municipality of Wood Buffalo as a result of the construction and on-going operation of the Sports and Entertainment Centre.
• The quantitative economic benefits include:• Spending Impacts: the impact resulting from the purchase of
goods and services• Employment Impacts: the increase in employment resulting
the purchase of goods and services• Income Impacts: the increase in personal income resulting
from increases in employment• Tax Impacts: the amount of personal income and sales taxes
(including HST, where such amounts are able to be estimated) and property tax which various levels of government could reasonably expect to receive as a result of a project’s development and operation