Report for Community Services Committee August 23, 1999 Meeting

Downtown Health, Fitness and Recreation Development (J. Taylor)

Report Summary

This report is in response to Councillor J. Taylor’s inquiry at the June 28, 1999 Community Services Committee meeting. The report provides an overview of the proposal by the Y.M.C.A. to develop a downtown health, fitness, and recreation facility. The report also addresses how the Y.M.C.A. proposal impacts the strategy to develop a new indoor-outdoor facility for the inner City. It presents a number of options as to how the City might proceed with this proposal.

Previous Council/Committee Action

At the June 28, 1999 meeting of Community Services Committee, Councillor J. Taylor made the following inquiry:

“The Y.M.C.A. has recently met with individual members of Council, with a proposal for a significant downtown health, fitness and recreation development to serve Edmontonians, and has indicated a desire for the City to assist in this becoming a reality.

In April, when City Council dealt with the “Outdoor Pool and Water Amenities Plan”, Council agreed:

‘That the Community Services Department be directed to prepare a conceptual design for an indoor-outdoor aquatic facility north of the City core, and pursue further partnership opportunities with Edmonton Northlands and 2001 Games.’

At that time the Community Services Department indicated that the Y.M.C.A. was proposing to expand its services in the City centre, and would likely be interested in a partnership with the City.

I would request the Community Services Department to:

• Provide an overview of the proposal by the Y.M.C.A. to the August 23, 1999 meeting of the Community Services Committee; and
• Provide an information report to the Committee at that meeting evaluating the proposal in the context of Council’s direction, addressing, among other things:
• How the proposal fits with or complements a new “indoor-outdoor aquatic facility” as presented in April; and
• Options as to how the City might proceed with this proposal.”

• At the April 6, 1999 City Council meeting, City Council gave the Administration direction regarding the “Outdoor Pool and Water Amenities Plan” as quoted in Attachment 1.

Report

• The Y.M.C.A. Edmonton is proposing to construct a new facility or renovate an existing structure, to provide a 60,000 square foothealth, fitness, and recreation centre in the downtown core. A more detailed overview of the Y.M.C.A. proposal is included in Attachment 2.
• The Community Services Department presented a strategy in April 1999 to pursue the development of a new recreation facility, which included both indoor and outdoor aquatic opportunities, to be located north of the City centre. An overview of the relationship of the Y.M.C.A. proposal to this strategy is enclosed in Attachment 3.
• In summary, the Y.M.C.A. proposal and the strategy’s indoor-outdoor facility are complementary in some respects, but different in others. The Y.M.C.A. is targeting the “at work, downtown” market, while the indoor-outdoor facility strategy targets the residential market north of the City centre. Therefore, for the Y.M.C.A. it is important that its proposal be located in the City centre, as opposed to the strategy’s indoor-outdoor facility which is intended, by City Council’s April 6, 1999 direction, to be located north of City centre to increase accessibility for residents. The further significant difference between the Y.M.C.A. proposal and the strategy’s indoor-outdoor facility is that the Y.M.C.A. does not include an outdoor aquatic component.
• Notwithstanding these differences, if the Administration is directed to pursue this partnership the City of Edmonton could participate with the Y.M.C.A. in this venture in a number of ways:

a)The City could contribute funds as requested for the indoor aquatic component of the facility (50% of cost, or $4.5 million for the current proposal). This contribution would be in place of pursuing the indoor component of the strategy’s indoor-outdoor facility. The financial contribution could take the form of a grant or a loan. Access by schools, and accessibility by economically disadvantaged patrons could be considered in exchange for the capital contribution.

b)The City indoor-outdoor facility would be estimated to cost in the order of $6 million, plus ongoing maintenance and operational costs. The Y.M.C.A. proposal includes a request for a financial contribution from the City of Edmonton in the order of $4.5 million. Since the Y.M.C.A. proposal does not include an outdoor aquatic component, the not- included outdoor component (i.e. allocation of the balance of $1.5 million) could be pursued in a number of ways, for example:

• create an outdoor water park in one of the existing outdoor pools. This would create an outdoor summer destination point for residents and visitors, which could include amenities such as water slides, water playground, picnic, and sand play areas;
• develop neighbourhood water parks or wading pools;
• develop a “natural” outdoor swimming opportunity; or
• create a year-round outdoor “hot-pool in one of the existing outdoor pools.”

None of these outdoor components has been costed.

Budget / Financial Implications

• A Capital Budget Profile for $6 million has already been submitted for consideration to the 2000-2003 Capital Priorities Plan for a new indoor-outdoor aquatic facility.
• The Y.M.C.A. proposal for the City’s financial contribution is 50% ($4.5 million for the current proposal).
• If the decision were made to provide the Y.M.C.A. with a financial contribution, then the Department should be instructed to include this for consideration within the 2000-2003 Capital Priorities Plan. This Y.M.C.A. proposal would then supersede a number of the existing capital budget projects.

Background Information Attached

1. Outdoor Pool and Water Amenities Plan; Council Motion of April 6, 1999
2. June 1999 Y.M.C.A. Health, Fitness ad Recreation Facility Proposal; An Overview

3.Evaluation of the June 1999 Y.M.C.A. Proposal in the Context of a “New Indoor-Outdoor Aquatic Facility” Strategy

(Page 1 of Error! Bookmark not defined.)

Attachment 1

Outdoor Pool and Water Amenities Plan; Council Motion of April 6, 1999

1. That Larrie Taylor Architect Ltd. Queen Elizabeth Pool Study (Introduction and Executive Summary) (Attachment 1 of the March 10, 1999 Community Services Department report) be received for information.

1. That, based on the results of the Queen Elizabeth Pool Study:

a)the Community Services Department spend up to $20,000 to address safety issues identified, (Source of Funds: Facility Conservation Budget – Operating Budget);

b)no further capital investment in outdoor pool and water amenities be made at the Queen Elizabeth Pool site;

c)the Queen Elizabeth Pool be operated with no further capital investment until the end of its useful life; and

d)in the event of and at the time of major system failure of/at the Queen Elizabeth Pool, the future of the facility be evaluated at that time within the context of the overall needs.

3.That the City remain open to consideration of any feasible proposal from the community or private operators for extension of the useful life of the Queen Elizabeth Pool.

1. That the operation of all 5 outdoor pools be awarded to Calido Recreation Management for a

period of 3 years (1999 to 2001 inclusive).

1. That the Community Services Department be directed to prepare a conceptual design for an

indoor-outdoor aquatic facility north of the City core, and pursue further partnership opportunities with Edmonton Northlands and 2001 Games.

1. That the Community Services Department report back, no later than the September 20, 1999

Community Services Committee meeting, on the outstanding recommendations of the A

Strategy for Edmonton’s Outdoor Pools and Water Amenities report (Attachment 3).

Attachment 1 - Page 1 of 1

Attachment 2

June 1999 Y.M.C.A. Health, Fitness and Recreation Facility Proposal; An Overview

Facility

The Y.M.C.A. is proposing to construct a new facility or redevelop an existing structure to develop a 60,000 square foot health, fitness, and recreation facility. The primary components of the facility include an indoor swimming pool, gymnasium, child care centre, work out centre, racquet courts, multi-purpose space, community office and meeting space, youth centre and support facilities ( e.g. locker rooms, etc.).

The facility is to be located in the City centre, which is critical for the Y.M.C.A.’s objective to serve the “downtown at work market.”

Service Area

The service area for this proposal is anticipated to be a three-mile radius of the City centre. The primary markets are projected to be the approximate 50,000 people who travel to the City centre for work and the 40,000 residents northeast and west of the City centre.

The Y.M.C.A. has conducted market testing and has confirmed significant interest in a new City centre Y.M.C.A. that includes free parking. The membership purchase projections for this proposal is higher than the service data collected for the other Y.M.C.A.William Lutsky or Castle Downs Community Centres. Based on the market data, approximately 8,600 members could be expected, generating over 600,000 uses per year.

Program Delivery Model

The Y.M.C.A. is proposing a service model which creates a strong network between the new centre, community agencies, the existing Y.M.C.A. Enterprise Centre, the existing residence, and the existing outreach satellite programs. A draft of the service model is attached (Attachment 2A).

The Y.M.C.A. has researched similar models, one of which is apparently working successfully in the city centre of Hamilton, Ontario.

Financial

The anticipated capital cost of the new downtown community centre is projected at $9 million. The Y.M.C.A. would be responsible for maintenance and operational costs.

The Y.M.C.A. has also had a study done to confirm community interest in the proposed facilities and respecting the Y.M.C.A.’s ability to raise capital funds. The results of this research have also been positive.

City Contribution

The Y.M.C.A. proposes the City of Edmonton contribute 50% ($4.5 million for this proposal) of capital funding towards this project.

Time Frame

The anticipated time frame is: fund-raising, planning and design to mid-2000; construction to mid-2001; and facility opening mid-2001.

City of Edmonton Historical Relationship with Y.M.C.A.

Jamie Platz Family Community Centre: 1990

The City of Edmonton provided land, a provincial recreation grant of $324,000, and a $1.8 million interest-free loan with a 20-year repayment. The total capital cost was $5.9 million.

William Lutsky Family Community Centre: 1997

The City of Edmonton provided land, $1.36 million grant from municipal funds and $3.2 million of capital funding from the Canada/Alberta Infrastructure Works Program. The total capital cost was $7.8 million.

Castle Downs Family Community Centre: 1998

The City of Edmonton provided land, and a $3.6 million grant from municipal funds. The total capital cost was $7.2 million.

Attachment 2 - Page 1 of 2

Attachment 3

Evaluation of the June 1999 Y.M.C.A. Proposal in the Context of a “New Indoor-Outdoor Aquatic Facility” Strategy

The strategy presented by the Community Services Department to City Council in April 1999 included the development of a new indoor-outdoor facility north of the City centre. Council directed the Department to prepare a conceptual design for the facility “north of the City core,” and to pursue further financial partnerships with Edmonton Northlands and 2001 Games. The current status of the conceptual design is that $6 million including the conceptual design, has been submitted for inclusion in the 2000 to 2003 Capital Priorities Plan. The 2001 Games opportunity is unlikely, as it would now seem that a communications centre/media centre might not be constructed on the Commonwealth Stadium site. Discussions with Northlands have not occurred due to staff changes at Northlands.

Facility

The strategy identified a recreation/fitness facility, which would include both an indoor and outdoor aquatic component. This would enable provision of an outdoor swimming opportunity, but part of a year-round infrastructure which would be more economically viable. This facility would also have the potential to replace one or more of the outdoor pools which are ageing and located in the City centre. It was anticipated that in addition to the aquatic components, the facility could contain a workout centre, child care facilities, and multi-purpose space.

In terms of facilities, the Y.M.C.A. proposal and the strategy’s indoor-outdoor facility are very compatible. The primary difference is that the Y.M.C.A. proposal does not include an outdoor aquatic component.

Since the Y.M.C.A. proposal does not include an outdoor aquatic component, the not-included outdoor component (allocation of the balance of $1.5 million) could be pursued in a number of ways, for example:

• create an outdoor water park in one of the existing outdoor pools; this would create an outdoor summer destination point for residents and visitors, which could include amenities such as water slides, water playground, picnic, and sand play areas;
• development of neighbourhood water parks or wading pools;
• development of a “natural” outdoor swimming opportunity; or
• create a year-round outdoor “hot-pool in one of the existing outdoor pools”.

None of these outdoor facilities has been costed.

Service Area/Location

The primary service area for the Y.M.C.A. proposal and the strategy’s indoor-outdoor facility are essentially the same: a three-mile radius of the City centre.

The major difference is in the proposed markets. The Y.M.C.A.’s primary target market is the approximate 50,000 people working in the City centre and the residents north of the City centre. Thus it is critical to the Y.M.C.A. for its facility to be located in the City centre. The primary market for the strategy’s facility is intended to be the 40,000 residents living north of the City centre; City Council’s direction specifically stated “north of the City core.” The indoor-outdoor facility is proposed north of the City centre to increase its accessibility to residents by limiting travel distance required. The April 1999 indoor-outdoor strategy, did not intend to target the “at work” population, as the Y.M.C.A., Kinsmen Sports Centre, Grant MacEwan Community College, and a number of private clubs currently serve this group.

The development of a new Y.M.C.A. facility, as proposed, may have a negative financial impact on the Kinsmen Sports Centre. If the City were to partner with the Y.M.C.A. in this proposal, the City should consider a revenue-sharing agreement with the Y.M.C.A. to address the potential impact on Kinsmen Sports Centre.

Program Delivery Models

The indoor-outdoor facility strategy proposed a partnership with Northlands or 2001 Games to maximize potential to leverage public funds. The program delivery model anticipated for this strategy was one closely integrated with community agencies and schools.

Both the Y.M.C.A. proposal and the indoor-outdoor facility strategy recognize that, in order to best service the needs of this geographic area, a unique approach to service delivery is required. This approach includes a close working relationship and referral system with community agencies, an extensive fee reduction/waiver program, and a significant outreach program which encourages and facilitates participation.

Cost

The indoor-outdoor strategy facility is proposed to cost $6 million, plus ongoing operational and maintenance costs. The estimated cost of the Y.M.C.A. proposal is $9 million, with a requested contribution of $4.5 million from the City of Edmonton.

Summary

In summary, the Y.M.C.A. proposal and the indoor-outdoor facility are complementary in terms of service area, amenities, and program delivery models. The two proposals are different in terms of primary market, location, and the outdoor aquatic component. Some of the differences can be accommodated, others may be more difficult to resolve.

Comparison of Y.M.C.A. Proposal and Indoor-Outdoor Facility Strategy

• Indoor pool, gymnasium, child care centre, work-out centre, racquet courts, multi-purpose space, community office and meeting space, youth centre

• Indoor and outdoor aquatic components, work-out centre, multi-purpose space, child care facilities

• Three mile radius of City centre

• Three mile radius of City centre

• Downtown “at work” market (50,000)
• Residents north of City centre

• Residents north of City centre

• Integrated network with other community agencies (strong outreach component)

• Integrated network with other community agencies

• $9 million total Capital
• $4.5 million City of Edmonton
• Y.M.C.A. responsible for maintenance operation

• $6 million total Capital
• Ongoing maintenance and operation costs

• Within downtown City core

• North of downtown core (adjacent to residential)

Attachment 3 - Page 1 of 3