Northlands Park 2005 Budget

Recommendation:
That the April 21, 2005, Corporate Services Department report 2005COF041 be received for information.

Report Summary

This is an information report regarding the City’s annual review of Edmonton Northland’s 2005 Capital Budget per Sections 10 and 11 of the Master Agreement between the City and Edmonton Northlands.

Report

·  Paragraph 10 of the Master Agreement requires Edmonton Northlands to submit each annual capital budget and any long term master plans to the City for its information.

·  Paragraph 11 of the Master Agreement allows City Council to veto new construction exceeding $250,000 in any single instance or alterations of existing facilities exceeding $750,000 in any single instance.

·  The 2005 Capital Budget for Northlands includes a $4.3 million project for the relocation of the racing paddock at the Spectrum facility. This project was originally approved in 2004 for $3.1 million and was funded from the Horse Racing Alberta 18 ⅓ percent operating grant. Due to scope changes and cost escalations, the project was delayed to 2005 and the costs revised. Funding for this project is now from a Horse Racing Alberta capital grant.

·  In 2005, the Horse Racing Alberta operating grant of 18 ⅓ percent was restructured with an allocation of 13 ⅓ percent for operating purposes and 5 percent for capital.

·  There are two other projects in the capital budget that exceed the threshold established in Paragraph 11 of the Master Agreement; $1.5 million for the renovation of concession stands located at Rexall Place and $7 million for the redevelopment of the east lands. The redevelopment project is consistent with the 1990 approved Northlands Area Redevelopment Plan. Both projects are funded from operating cashflows.

·  For the 2005 Budget, any project listed in the “2005 Stepout” column will proceed only if funding becomes available from greater than anticipated cashflows for the year. The one project in this column that is affected by the criteria in the master agreement is an additional $3 million for the redevelopment of the east lands. Any projects in the Stepout category that have not commenced in 2005 become part of the next year’s planning cycle.

·  An item that may be a consideration in 2005 is an additional $3 million dollar grant from the Province which will be applied to projects in Northland’s Facilities Master Plan. Before Northlands proceeds with anything in the master plan, they will arrange to meet with Council. Refer to Attachment 4 for background on the grant and its application.

Background Information Attached

  1. Copy of paragraphs 10 and 11 of the Master Agreement
  2. Letter from Mark Bamford, Chief Financial Officer, Northlands Park dated March 22, 2005
  3. Copy of Northlands Park Capital Requirements 2005-2009
  4. Memorandum from Ken Knowles, General Manager and Chief Operating Officer, Northlands Park dated April 13, 2005

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Attachment 4

Northlands Park Memorandum – Ken Knowles

MEMORANDUM

To: Northlands Park Staff

From: Ken Knowles

Date: April 13, 2005

Subject: Provincial Budget

The provincial government has just released its 2005/06 Budget and we are pleased to share with you that starting in 2005-06, Northlands Park will “receive an additional $3 million annually for capital redevelopment to upgrade facilities to support community and regional events.” This budget is subject to ratification by the Legislative Assembly.

As reported at the February 2005 Board of Directors Meeting, this exciting news allows us the opportunity to proceed with Phase Two of our Facility Master Plan, the construction of the proposed Expo Hall – a new facility which will provide additional trade show and event space as well as multi-purpose break-out space and centralized administration offices.

Phase One represents the East Lands Development project which is currently underway and will see the creation of additional parking on our site by the end of 2005.

For more information, please visit www.gov.ab.ca

Thank you,

Ken Knowles

General Manager and

Chief Operating Office

Attachment 4 - Page 1 of 1