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RFD- 3301 Business Items   Item #   10. a.    
Regular Council Meeting Agenda
Meeting Date: 05/14/2018  
Title:    Event Centre/Arena Complex Business Case Study - Walker
Department: Economic & Business Development  
Strategic Vision Element: This topic relates to all three of the City’s strategic vision elements contained in Council’s Strategic Plan Related Goal: High quality leisure, recreational, commercial and social infrastructure and amenities that meet the interests and needs of the greater community are in place and conveniently accessible.

Information
Request for Decision Summary
Council approval is requested to proceed with a business case analysis of options for developing an Event Centre/Arena Complex based on the Terms of Reference as presented. 

Proposed Motion
That the Terms of Reference for the Event Centre/Arena Complex Business Case Study be approved as presented.
Background/Analysis
The City recently received a $255,000 grant from the Alberta Government as an approved application under the Coal Community Transition Fund.  The application was to review the feasibility of constructing and operating a mid-sized regional Event Centre in Spruce Grove.  The proposed event centre would create a regional destination facility intended to retain and attract events that we could not otherwise host in Spruce Grove or the Parkland region.  This also addresses a gap in the Edmonton region for a mid-sized event facility to accommodate concerts, trade shows, conferences, tournaments, and other entertainment and competitive events. 
 
The City has already budgeted $56.1 million in our 2018-2020 Corporate Plan for the construction of a new twin arena complex.  This Event Centre concept is based on developing one of the twin pads into a facility that has the capability and flexibility to host mid-sized events.  We estimate this would add approximately $23 million to the capital budget. 
 
However, we also need to take a look at the business case for undertaking this additional expenditure.  The City has already done substantial work on the market, conceptual design and financial feasibility of an Event Centre; however, given the fiscal magnitude of the project, the results warrant further investigation prior to a decision by City Council on whether to proceed or whether changes in the project are warranted. The business case analysis would consider scope and market feasibility, project definition, financial sustainability and economic benefits.  It would also look at whether there are additional facilities and amenities that could be incorporated in the conceptual design that address a wider range of community needs.  

This review would be based on considering three options that vary in scope and functional design and have different price points.  All three options are variations on a twin pad arena with different functional elements included.  As such, they represent different configurations of community needs and economic benefits.  The three options are outlined in the Terms of Reference.  
Options/Alternatives
The business case analysis is intended to provide information for Council to make a decision on whether to proceed with some version of the Event Centre/Arena Complex and how it would be funded.  Three options will be considered with regard to the scope, project definition,financial sustainability and economic benefits.   
Consultation/Engagement
Once this report has been completed, it will be used as the basis to inform a public engagement process.  The information generated will provide a common basis for discussion and feedback from residents.  It will also provide information in response to the questions raised about the project since its initial presentation to the public in April 2017.  An engagement strategy will be developed and brought to Council for approval. 
Implementation/Communication
Expected timeframe for completion of the business case review is 6 months from Council approval of the Terms of Reference. 
Impacts
The business case study will be completed within the funding total of $255,000 approved by the Alberta government under the Coal Community Transition Fund. This includes funding for the public engagement process.  Any remaining funds from the grant can be used for geotechnical and site-related engineering work.  

Attachments
Event Centre Business Case

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