I m also happy to take questions at the end of my presentation.

Transcription

1 Bonjour Mesdames et Messieurs, et merci Carol, de l invitation pour me joindre à vous aujourd hui et de présenter une mise à jour de ce projet aux membres de la Chambre de commerce du Grand Moncton, et à vos invités spéciaux. I was asked to speak to you about the economic development impacts of our proposed downtown multi purpose sports and entertainment centre and I want to frame my representation in the following way: First looking at the opportunity, then the experience and finally community support. I m also happy to take questions at the end of my presentation. 1

2 Before I talk about the economic impacts, let me highlight a key point from a presentation that the City s CFO, John Martin did last night at the public session of Council. Based on the scenario from which are working, our debt ratio actually falls from where it is today (15%) and where it will be in 2041 (10 %). Ainsi, selon le scénario présenté, le projet est abordable. 2

3 Let me start with the opportunity A new downtown centre is much, much more than a replacement for the aging Coliseum. It is really about developing our downtown and what a downtown centre would do for our downtown. While Moncton s reputation as the sports and entertainment hub of the Maritimes is solid, the stakes are even higher now. 3

4 As the Coliseum comes to the end of its 40 + years of faithful service, our community is presented with an opportunity to develop a mega project that will propel downtown growth and development Il va sans dire qu une occasion comme celle ci ne se présente pas tous les jours! 4

5 The argument for a downtown centre has more to do with making the City livable, sustainable and dynamic (Discuss the economic reasons, the use of the other 7 acres (11 4) Estimated $200 $250 million dollar development on the full 11 acre site. The potential for intense growth in the radius surrounding the proposed centre To bring downtown residential living and the retail that will follow In 2009, the City catalogued all the City owned parcels of land and identified which ones were underdeveloped and underutilized. The downtown core, totalling approximately 90 acres, was broken down into 18 blocks for the analysis. The square footage was calculated for each block. 5

6 Average assessment block per square foot in our downtown was $59 Parking lot near Lutes St. assessed at $28 dollars per square foot Blue Cross Block on Main St. assessed at $271 per square foot. We need more assessment blocks at $271 per square foot, and less at the lower levels. We also need to bring up our average assessment per square foot $59 average is too low. We need more development not more surface parking. Surface parking is underdeveloped and underutilized land. The parcels of land with ample supply of surface parking generally resulted in lower assessment value per square foot than average, while blocks with no or little surface parking, a parking garage or underground parking had more density and by default, a much higher assessment value per square foot than average. 5

7 A new downtown centre would kickstart and increase the demand for more shopping and entertainment downtown bars and restaurants as the demand for the enhanced experience increases. It s really all about creating a vibrant, dynamic downtown that is the heart and soul of our community/region. 6

8 Les succès connus ailleurs peuvent être réalisés ici aussi. Récemment, des représentants de London, Ontario, ont partagé leur histoire, couronnée de succès, dans le cadre du Symposium Imagine, organisé par DMCI. But the success built around a Downtown Multipurpose Centre was not just in London Oshawa, Sault Ste. Marie, and Evansville, Indiana are other great examples. 7

9 In their first 5 seasons at Oshawa s GM Centre, yearly attendance has averaged between 4,164 to 5,134. In their last full season at their previous facility (the Civic Auditorium), they averaged 3,014 fans. In 2006, when the GM Centre opened, commercial vacancy rate in downtown Oshawa was 21%. In 2012, it was 11%. Since the opening of the GM Centre in 2006, downtown Oshawa has welcomed many new businesses, including a Costco, a new courthouse, street level television studios and new trendy shops and cafés. 8

10 Essar Centre enabled Sault Ste. Marie to attract and host CAHRA World Hockey Cup deemed the Olympics of men s recreational hockey. 125 teams 2,000 participants from 15 countries used every hotel in the city for 7 full nights! The economic impact of this event alone was over $10 million! Sault Ste. Marie beat Toronto to win this event. A state of the art facility was key in allowing them to compete. 9

11 This image cannot currently be displayed. The Ford Center in Evansville, Indiana is a LEED Silver building. The first full calendar year included 145 sport and entertainment events bringing nearly a half million people through the doors. Operating revenues at $8.18 million were greater than expected, and the Operating profit was $1.58 million. The new arena created $39.1 million in direct spending. 10

12 This image cannot currently be displayed. The K Rock Centre is in Kingston, Ontario February 2013 was the facility s busiest month in its 5 year history (24 events over 28 days); attendance during this period was 95,445 people. In 2011, the City of Kingston commissioned an economic impact analysis for the K Rock Centre for 2009 and 2010 the first full 2 years of operation. The report concluded the total economic impact for 2009 and 2010 was between $15 million to $16.5 million. As well, audited reports show that the K Rock had positive net income before debt during 2009 and

13 This image cannot currently be displayed. As we heard in the London presentation our downtown needs to be about Density (lots of people), Diversity (lots of different things to do), and Intensity (lots of people doing all these different things downtown). Speaking of density, let me show you aerial images of Moncton s downtown circa 1956 to today (aerials from 1956 etc.,). Note how it s become less dense over time. Clearly, our downtown needs to get back to where it was in 1956 in terms of density. Nobody here wants to become denser with age, right? But downtowns should, and must. 12

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17 This image cannot currently be displayed. Quite a dramatic shift, when we think back to the image of 1956, right? Now let me show you some other Atlantic Canadian downtowns 16

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20 This image cannot currently be displayed. L expérience Qu obtienons nous en ayant autant de terrains de stationnement au centre ville? Comme je l ai expliqué, ce n est certainement pas du revenu pour la Ville. En revanche That big show at the Downtown Centre is also just as much about heading down Main Street to enjoy a great meal with friends before the concert, or celebrating the team s big win with your buddies after the match! These elements add energy, vibrancy and retail activity in our downtown. These positive side effects translate into a thriving neighbourhood, which showcases our community s spirit, and provide great economic opportunities for small and large businesses alike. At the same time, it will help keep office jobs in the downtown too. 19

21 This image cannot currently be displayed. The London, Ontario representatives referred to the enhanced experience that their Budweiser Gardens offers patrons. So, it s not just about going to the game but arguably more importantly it s about the things that people would do before and after a game or concert. The downtown centre is the hook to get people into our downtown core where they will add to their experience by doing other things before or after an event. Maybe people further away will come and stay in our hotels, turn the event at the downtown centre into a weekend getaway where they will eat and shop in our downtown. Park anywhere in our downtown and on your way to the event at the downtown centre, stop to shop or for something to eat or drink. Parking and walking or taking the shuttle is part of the enhanced experience. Yes, we will be exploring the feasibility of a Main Street Shuttle Service that would take people back and forth on Main Street. Highfield Square location is already a transit hub and would be even moreso with a 20

22 downtown centre 20

23 This image cannot currently be displayed. The Downtown Centre must also be a people place, used by the community. It must be a focal point for the community not just on game or concert nights. This community place/community space concept could incorporate a library or other things that would draw people to the facility every day Outside space is important too and citizens have already showed their interest in having great green space. All great cities have a great downtown. Moncton is a great city, but our downtown does not reflect our city s greatness. We need to focus on our downtown and make it great. It s the heart and soul of our community and we must make it better. 21

24 This image cannot currently be displayed. We need you to become informed, to get engaged and to speak up. The opportunity to participate in the project, should it be approved by Council, can be in many ways. The business community, and the community at large, consistently show confidence in the economic strength of Moncton. While this is a bold step, opportunities will be presented to help fundraise, purchase corporate boxes or naming rights (or both!), to become actively engaged to be sure Moncton lives up to its billing and Moncton s downtown, the heart of our community, is strengthened, becomes more effective and efficient like that of a marathoner. Overall, my sense is that the community supports this project, and we are following Council s lead. But we also hope to continue receiving your feedback and input this will be the largest project the City will have ever undertaken! 22

25 Conclusion Ce n est pas un fait accompli! Council driven process, due diligence, key steps to be taken before Council can award a contract Not at any cost Key milestones ahead 30 year financials just presented Economic Impact analysis coming soon (get date) Council exercise option RFQ recommendation and RFP development 23

26 So again, thank you for having me here today. I d be happy to answer a few questions at this time. FYI MORE INFO RE: OTHER CENTRES Seating Capacities Essar Centre (Sault Ste Marie): «Capacity for hockey games is 4808, while concerts and conventions range depending on the show set up.» ( ) General Motors Centre (Oshawa): 24

27 «The main ice pad in the General Motors Centre is flexible in seating capacity, and can host events which require seating from 1,500 to 7,600.» ( info/about us ) Budweiser Gardens (London): «Budweiser Gardens was opened in October of 2002 with a seating capacity of 9,090 for hockey events and ice events and over 10, 000 for concerts, family shows and other events. The facility has 1,100 premium club seats, 38 private luxury suites and 5 Group Sales Suites» ( info ) K Rock Centre (Kingston): «Now, an SMG facility has come to Kingston, Ontario as the K Rock Centre, a 6,700 seated entertainment complex.» ( ) Ford Centre (Evansville, Indiana): «Located in Evansville, Indiana, the Ford Center is a beautiful, exciting, multi purpose 11,000 seat arena and is the region s center for sports and entertainment.» ( 24