Agenda - Town of Canmore

Transcription

TOWN OF CANMORE
AGENDA
Regular Meeting of Council
Council Chamber at the Canmore Civic Centre, 902 – 7 Avenue
Tuesday, January 5, 2016 at 5:00 p.m.
Times are estimates only.
PUBLIC QUESTION PERIOD
A. CALL TO ORDER AND APPROVAL OF AGENDA
1. Agenda for the January 5, 2016 Regular Meeting of Council
5:00 – 5:15
5:15 – 6:15
B. DELEGATIONS
1. David Evans – Lamphouse Project update – verbal report
2. Andrew Nickerson, Canmore Business and Tourism: Conference Centre
C. MINUTES
1. Minutes of the December 15, 2015 Special Meeting of Council
2. Minutes of the December 15, 2015 Regular Meeting of Council
D. BUSINESS ARISING FROM THE MINUTES
None
E. UNFINISHED BUSINESS
None
F. BYLAW APPROVAL
None
6:15 – 7:00
7:00 – 7:30
G. NEW BUSINESS
1. Reviewing Visitor Accommodation Zoning
Recommendation: That Administration be directed to explore and report back
to Council with an evaluation of options to address the problems associated
with visitor accommodation zoning of condominium apartments that have
resulted in limited ability to finance units, significantly reduced property values
and removal of units from use as visitor accommodation.
2. Fee waiver request for potential rental apartment
Recommendation: That Council direct administration to waive application fees
for a rezoning, potential area redevelopment plan amendment, and subdivision
application for a potential residential apartment at 511 Old Canmore Road.
H. CORRESPONDENCE/INFORMATION
None
I. REPORTS FROM ADMINISTRATION
None
J. NOTICES OF MOTION
None
Agenda prepared by: Cheryl Hyde, Municipal Clerk
Page 1 of 2
January 6, 2016 Regular Business Meeting 5 p.m.
Page 1 of 159
K. IN CAMERA
None
L. ADJOURNMENT
Agenda prepared by: Cheryl Hyde, Municipal Clerk
Page 2 of 2
Page 2 of 159
B-2
Conference(Centre(Model(Research(Summary(
December'2015'
(
(
Dublin'Convention'Centre'
'
(
'
Prepared'for'Canmore'Business'and'Tourism'by:''
(
Contact:
Wanda%Bogdane
403.609.7127
(((
[email protected]
Page 3 of 159
Table&of&Contents&
I.' Executive(Summary(..........................................................................................................(3'
II.' Aspire(Strategic’s(Conference(Centre(Model(Research(Summary(...................(4'
Project(rationale(and(background(...............................................................................................(4'
Project(description(...........................................................................................................................(4'
Options(considered(...........................................................................................................................(4'
Research(findings(..............................................................................................................................(5'
Ownership'..........................................................................................................................................................'5'
Vision'....................................................................................................................................................................'5'
The'advantage'of'multitasking'..................................................................................................................'6'
Seasonality'..........................................................................................................................................................'6'
Be'the'best'..........................................................................................................................................................'7'
Close'a'gap'..........................................................................................................................................................'7'
Conference'centre'model'research'conclusions'.................................................................................'8'
III.' PKF(Consulting(Inc.’s(“Proposed(Canmore(Conference(Centre(Market(and(
Financial(Assessment”(Summary(.......................................................................................(8'
Market'assessment'findings'.......................................................................................................................'8'
Proposed'Canmore'Conference'Centre'..................................................................................................'9'
Site'analysis'........................................................................................................................................................'9'
Financial'assessment'.....................................................................................................................................'9'
Economic'impact'.............................................................................................................................................'9'
Conclusions'........................................................................................................................................................'9'
IV.' Recommendations(regarding(local(strategic(guideposts(...............................(10'
V.' Appendices(.....................................................................................................................(11'
'
'
'
'
Domestic(Traditional(Scenarios(–(Detailed(Findings(.........................................................(11'
South'Okanagan'Events'Centre'&'Penticton'Trade'and'Convention'Centre'.......................'11'
Kimberley'Conference'&'Athlete'Training'Centre'.........................................................................'12'
Domestic(Traditional(Scenarios(–(NonSDetailed(Findings(................................................(14'
Whistler'Conference'Centre'.....................................................................................................................'14'
Vancouver'Island'Convention'Centre'..................................................................................................'14'
Victoria'Conference'Centre'......................................................................................................................'15'
International(Traditional(Scenarios(–(Detailed(Findings(.................................................(15'
Cleveland'Convention'Centre'..................................................................................................................'15'
The'Convention'Centre'Dublin'...............................................................................................................'17'
Domestic(NonSTraditional(Scenario(–(Detailed(Findings(..................................................(19'
National'Music'Centre'(Calgary,'Canada)'..........................................................................................'19'
International(NonSTraditional(Scenario(–(Detailed(Findings(..........................................(21'
National'Cycling'Centre'(Manchester,'UK)'........................................................................................'21'
&
2'
Page 4 of 159
I.
Executive&Summary&
Canmore'Business'and'Tourism’s'(CBT)'2015Z2020'Strategic'Plan'identifies'a'conference'
centre'as'a'major'innovation.'Though'CBT'will'not'be'the'organization'to'build'the'facility,'
the'organization'will'position'Canmore'Kananaskis'as'a'conference'destination'and'assist'in'
creating'the'ground'work'to'develop'the'RIGHT'conference'facility'in'Canmore.
To'launch'their'commitment,'CBT'invested'in'research'in'2015,'by'engaging:'
•
•
PKF'Consulting'in'association'with'Deloitte'LLP'to'conduct'a'“Market'and'Financial'
Assessment”'for'a'proposed'conference'centre'in'Canmore'
Aspire'Strategic'to'conduct'an'additional'examination'of'successful'convention'
centre'funding'and'operational'models''
CBT’s'Strategic'Plan'states'“The'RIGHT'conference'facility'is'one'that'best'impacts'all'
businesses,'that'attracts'Canmore’s'target'brandZaligned'visitor,'that'is'financially'
sustainable,'that'is'scalable'for'growth,'that'adds'benefits'to'life'in'the'community,'and'that'
is'relevant'for'at'last'the'next'25'years.”'
Aspire'Strategic’s'Conference'Centre'Model'Research'Conclusions'(page'7)'indicate'that'
there'are'a'variety'of'funding'and'operational'models'that'could'be'considered'for'creating'
a'sound'model'that'authentically'fits'the'area’s'strategic'guideposts'and'benefits'the'
economy'as'a'whole.''
PKF’s'Market'and'Financial'Assessment'shows'market'demand'for'a'conference'centre'in'
Canmore,'while'outlining'estimated'financials'that'present'an'optimistic'economic'impact.'
Potential'barriers'Z'such'as'operational'deficits'Z'are'reasonable'when'considered'in'context'
with'other'destinations’'convention'centres.'Per'the'notion'of'investing(to(gain,'the'
assessment'provides'context'for'how'a'conference'centre'is'a'tool'that'advances'a'
community’s'economy.'It'shares'a'picture'around'the'collective'advantage'that'a'shorterZ
term'investment'can'have'in'realizing'a'larger'scale'and'longZterm'community'benefit.''
Author’s'note:'in'the'sections'to'come,'the'words'“conference”'and'“convention”'should'be'
seen'as'interchangeable.''
'
'
&
3'
Page 5 of 159
II.
Aspire&Strategic’s&Conference&Centre&Model&Research&
Summary&
Project&rationale&and&background&
'
'
PKF'Consulting'in'association'with'Deloitte'LLP'was'hired'by'Canmore'Business'and'
Tourism'to'conduct'a'Market'and'Financial'Assessment'for'a'Proposed'Canmore'Conference'
Centre.'They'presented'their'findings'in'March'2015.''
Where'it'was'acknowledged'that'the'Elevation'Place'funding'and'operational'model'
suggested'in'this'assessment'would'not'practically'work,'Canmore'Business'and'Tourism'
commissioned'Aspire'Strategic'to'conduct'an'additional'examination'of'successful'
conference'centre'funding'and'operational'models'to'build'on'the'assessment’s'findings.''
Project&description&
(
•
'
•
Review'of'successful'operational'and'funding'models'for'traditional'centres:'
o In'Canada'
o Internationally''
Review'of'successful'operational'and'funding'models'for'nonZtraditional'centres'
'
South'Okanagan'Events'Centre'&'Penticton'Trade'and'Convention'Centre'
Options&considered&
(
!
'
•
•
•
•
•
•
•
•
•
•
•
•
! South'Okanagan'Events'Centre'&'Penticton'Trade'and'Convention'Centre'
! Kimberley'Conference'&'Athlete'Training'Centre'
! National'Music'Centre'(Canada)'
! Cleveland'Convention'Centre'
! National'Cycling'Centre'(UK)'
! Dublin'Convention'Centre'
Whistler'Conference'Centre'
Vancouver'Island'Convention'Centre'
Victoria'Conference'Centre'
Colorado'Convention'Centre'
Orange'County'Convention'Center,'Orlando'
Camp'Woodward'
='selected'for'research'summary'due'to'high'level'of'success(
(
4'
Page 6 of 159
Research&findings&
(
In'reviewing'a'variety'of'funding'strategies'and'tactics,'the'aspects'common'across'the'most'
successfully'run'centres'studied'include:'
Ownership&
'
•
Municipality'led'ownership'works'
'
a. Varieties'included'explicit'municipal'ownership'(Penticton),'public'Z'public'
partnerships'(Cleveland'Convention'Centre),'public'Z'private'partnerships'
and'P3'partnerships'[public'Z'public'Z'private]'(National'Music'Centre)'
b. In'all'cases'the'municipality'was'the'primary'owner,'often'in'partnership'
with'their'Economic'Development'Office'
c. Benefits'to'the'municipally'owned'model'included:'
i. The'ability'to'apply'for'provincial'and'federal'grants'
ii. The'ability'to'integrate'corporate'sponsorship'''
iii. The'assurance'that'the'facility'aligned'to'community'values'
Vision&
'
•
'
Communities'that'invested'in'a'distinct'and'bold'vision'for'their'centres'drew'
support'during'the'financial'development'phase'and'attained'a'return'on'their'
investment''
'
a. Creating'a'leading,'one'of'a'kind'or'national'scale'vision'assisted'in'raising'
funds'for'large'capital'projects''
b. Investing'in'a'solid'vision'upfront'paid'off'by'realizing'longZterm'community'
impact'as'a'year'round'economic'stimulator'
c. Creating'convention'centres'was'an'investment'for'the'future'and'benefited'
the'community'as'a'whole'
'
National'Music'Centre'Canada'
(
'
(
5'
Page 7 of 159
The&advantage&of&multitasking&&
'
•
Centres'with'a'complementary'and'diverse'mix'of'facilities'saw'high'use'throughout'
the'year'and'unique'differentiation'
'
a. Creating'an'authentic,'and'progressive'vision'contributed'to'the'value'
proposition'and'attracted'the'meeting'and'convention'sector'
b. The'Cleveland'Convention'Centre'hosts'the'Global'Center'for'Health'
Innovation,'which'is'the'only'facility'in'the'world'that'displays'the'future'of'
health'and'healthcare'(presented'on'four'themed'floors).''
'
The'Global'Center,'which'only'opened'in'2013,'was'nearly'80'percent'leased'
with'exhibitors'within'a'year,'roughly'reaching'the'target'for'2014.'The'
Global'Center'serves'health'and'healthcare'innovation,'technology,'
education'and'commerce'through'stateZofZtheZart'spaces,'programs'and'
virtual'offerings.'
'
The'Global'Center'for'Health'Innovation'and'Cleveland'Convention'Center'
'
Seasonality&&
'
•
Convention'and'conference'centres'were'economic'engines'in'the'offseason'by'
increasing'visitation'numbers,'benefiting'businesses'throughout'the'destination''
'
a. “The'fall'through'the'spring'is'high'season'for'corporate,'trade,'and'other'
largeZscale'events.'Meetings'and'conventions'are'quiet'in'the'summer.”''
'
~'Grant'Sharam'General'Manager'Kimberley'Conference'&'Athlete'Training'
Centre'
''
Kimberley'Conference'&'Athlete'Training'Centre'
(
'
(
6'
Page 8 of 159
Be&the&best&
'
•
High'standards'and'excellence'when'activating'a'centre’s'vision'resulted'in'
accolades,'success'and'economic'stimulus'for'a'community''
'
a. Having'won'31'awards'and'hosted'more'than'1,000'events'since'2010,'the'
Dublin'Convention'Centre'positioned'itself'to'deliver'worldZclass'events'and'
be'the'first'carbon'neutral'international'convention'centre.'This'resulted'in'
great'success'demonstrated'by'organizations'like'Google'using'it'to'host'
trend'setting'conventions.''
'
'
'
Dublin'Convention'Centre'
Close&a&gap&
'
•
Leveraging'opportunities'by'identifying'and'capitalizing'on'gaps'in'the'marketplace'
was'an'effective'business'strategy'for'convention'centres'
'
a. The'National'Cycling'Centre'in'the'UK'integrated'meeting'rooms'and'other'
convention'centre'offerings'into'their'high'performance'cycling'facility'as'a'
means'of'celebrating'this'unique'culture.'This'contributed'to'the'high'
demand.''
'
National'Cycling'Centre'–'UK'
'
'
7'
Page 9 of 159
Conference&centre&model&research&conclusions&
'
•
•
•
•
•
III.
Overall'the'research'finds'that'there'are'a'number'of'existing'models'that'Canmore'
Convention'Centre'can'benchmark'with'likely'success.'
The'research'suggests'that'with'a'combination'of'municipally'led'ownership,'a'bold,'
strategic'and'even'national'scale'vision'that'positions'the'centre'to'be'the'best'in'its'
given'niche'(and'likely'closes'a'gap'in'the'marketplace)'will'act'as'a'strong'
foundation'both'for'strategies'toward'capital'funding'and'overall'operations.'
The'research'found'that'integrating'a'variety'of'complementary'facilities'is'a'recipe'
to'create'a'bustling'centre'with'year'round'activity.''
The'examples'of'conference'centres'in'Western'Canada'show'that'whether'a'
traditional'or'nonZtraditional'model'is'used,'there'is'significant'benefit'to'a'
community’s'economy'from'having'a'local'convention'centre.'
a. It'should'be'noted'that'there'seems'to'be'even'more'opportunity'in'a'
communityZcentric'nonZtraditional'model.'
The'examples'of'conference'centres'from'international'destinations'show'that'being'
a'leader,'or'the'best'in'a'specific'area'provides'unique'models'that'can'be'leveraged'
for'capital'funding'and'operational'purposes.''
PKF&Consulting&Inc.’s&“Proposed&Canmore&Conference&Centre&
Market&and&Financial&Assessment”&Summary&
'
'
'
To'ensure'integration'of'the'findings'from'PKF’s'research'from'March'2015,'here'is'a'high'
level'brief'of'their'assessment.'Please'note'this'summary'does'not'include'the'aspects'of'
their'assessment'that'would'not'practically'work'for'the'convention'centre'(capital'funding,'
etc.).''Refer'to'the'assessment'itself'for'detailed'information.''
Market&assessment&findings&
•
•
•
'
Canmore'is'currently'restricted'to'events'of'less'than'200'delegates'in'size''
The'meetings/conference/group'segment'accounted'for'13.5%'of'all'room'nights'in'
the'Canmore'market'in'2013'
Corporate/commercial'and'meeting/conference/group'bookings'are'highly'under'
8'
Page 10 of 159
•
•
•
represented'according'to'Canmore’s'accommodation'sector'sales'(77%'leisure'
stays)'
Canmore'falls'under'the'regionalZcomparable'meeting/conference/group'%'
demand'of'31%'with'13.5%'
172'people'represented'the'general'group'size'interested'in'visiting'Canmore'that'
resulted'in'6,200'room'nights'of'lost'business''
The'number'of'rentable'facilities'in'Western'Canada'has'not'experienced'any'
growth,'however,'Travel'Alberta'noted'that'despite'241'event'leads,'that'95'events'
were'lost'
Proposed&Canmore&Conference&Centre&&
•
PKF'Consultants'estimated'that'the'number'of'delegates/attendees'and'room'nights'
generated'would'double'by'year'3'from'having'a'conference'centre'in'Canmore'
Site&analysis&&
•
There'are'a'number'of'sites'in'Canmore'that'can'be'considered'for'hosting'a'
conference'centre'
Financial&assessment&&
•
•
•
•
•
•
Estimated'cost'range'totals'$31Z40'million'and'includes'centre'and'parking'
Based'on'the'Operating'Projections,'the'proposed'Centre'is'aniticpated'to'operate'at'
an'average'annual'net'loss'of'$151k'in'its'first'5'years'
The'proposed'Centre'is'expected'to'play'a'significant'role'in'the'creation'of'
additional'room'nights'for'Canmore'hoteliers'''
The'Town'may'consider'an'additional'surcharge'on'hotel'rooms'either'through'
increasing'existing'charges'or'potentially'a'new'fee'to'fund'the'operating'gap'
The'Alberta'Hotel'Levy'is'not'controlled'by'the'Town'and'cannot'be'increased'
Although'the'town'collects'the'DMF,'its'proceeds'are'unlikely'to'be'applicable'for'
other'purposes'
Economic&impact&
•
•
Annual'delegate'spending'is'anticipated'to'grow'to'(and'hold'at)'$10'million'per'
year'
Consistent'with'other'conference'centres'researched,'a'conference'centre'in'
Canmore'would'have'significant'economic'impact'across'the'community''
Conclusions&
•
•
'
Overall,'PKF’s'Conference'Centre'Report'shows'there'is'ample'demand'in'the'
meetings'and'conference'travel'market.'There'has'been'no'growth'in'facilities'in'
Western'Canada,'however,'and'nearly'100'events'were'lost'in'Alberta'in'2014.''
o This'indicates'that'there'is'tremendous'opportunity'for'Canmore'to'leverage'
the'lucrative'meetings'and'convention'centre'market'if'the'right'facility'is'
created'
There'would'be'economic'value'for'Canmore'if'it'invests'in'building'a'conference'
centre,'and'despite'a'forecasted'operational'deficit:'
o The'estimated'deficit'does'not'appear'to'be'an'unmanageable'(or'
unreasonable)'amount'
o The'benefits'and'impact'to'the'community'outweigh'the'challenge'of'the'of'
deficit'
o There'are'numerous'ways'that'the'deficit'can'be'offset'or'recovered''
9'
Page 11 of 159
IV.
'
Recommendations&regarding&local&strategic&guideposts&
1. Ensure'the'centre’s'philosophy'resonates'with'the'Town'of'Canmore’s'foundational'
values:'
a. Diversity'
b. Sustainability''
c. Connectedness''
2. Ensure'the'centre’s'philosophy'resonates'with'the'five'Components'of'the'Vision'for'
Canmore''
a. Identity'
b. Economic'sustainability''
c. Social'fabric'
d. Environmental'stewardship'
e. Civic'engagement'and'leadership''
3. Align'the'conference'centre'operations'to'Canmore'Business'and'Tourism’s'2015Z
2020'Strategic'Plan,'particularly:'
a. Its'three'pillars'of'innovation''
b. The'vision'for'innovation'resulting'from'the'Future'Vision'for'Canmore'
Tourism'study'from'2014'
c. The'plan’s'outcome:'“Development'of'the'‘right’'conference'facility'that'is'
relevant'20'years'in'the'future”'
4. Leverage'CBT’s'five'market'segments'as'drivers'for'selecting'multiZdimensional'
centre'offerings'that'include,'but'go'beyond'meetings'and'conventions.'These'five'
segments'are:'
a. Food'tourist'
b. Wellness'tourist'
c. Mountain'sports'tourist'
d. Cultural'tourist'
e. Retail'tourist'
'
'
&
10'
Page 12 of 159
V.
Appendices&&
Domestic&Traditional&Scenarios&–&Detailed&Findings&
South&Okanagan&Events&Centre&&&Penticton&Trade&and&Convention&Centre&
Overview'
•
•
•
•
•
•
•
Link:'http://www.pentictonconventioncentre.com''
Owner:'City'of'Penticton''
Manager:'Global'Spectrum'Facility'Management'(the'subsidiary'of'Comcast'
Spectacor)'
Affiliates:''
o Located'adjacent'to'the'Community'Centre,'which'also'houses'the'Cleland'
Theatre.'The'Penticton'Trade'and'Convention'Centre'expands'by'including'
the'following'facilities:'
" South'Okanagan'Events'Centre'
" BC'Hockey'Hall'of'Fame'
" Memorial'Arena'
" OHS'Training'Centre'
o Current'partners'include:'
" City'of'Penticton'(Economic'Development'Office)'
" Penticton'&'Wine'Country'Chamber'of'Commerce'
" Downtown'Penticton'
" Tourism'Penticton''
" Thomson'Okanagan'Tourism'Association''
" Destination'British'Columbia'
Purpose:'to'create'a'space'for'conventions,'weddings,'special'events,'trade'and'
consumer'shows,'banquets'and'meetings.'It’s'the'Okanagan's'only'fullZservice'
convention'centre'and'was'Canada’s'first'freestanding'convention'centre.'
Open'for'business:'1965'
Successful?'Yes,'seen'as'a'business'driver'within'the'community.'It'currently'drives'
34,000'to'50,000'room'nights'and'is'ideally'suited'for'conventions'up'to'850'
attendees.'
Model''
•
•
•
Started'off'as'a'community'hall'and'then'grew'
The'two'different'facilities'are'operated'by'the'same'manager,'but'are'seen'as'two'
different'subZteams.'Both'are'owned'by'the'City'of'Penticton.''
Looking'for'investors'still'for'a'high'end'hotel''
Funding'strategies'
• Create'an'multi'facility'complex'so'it'brings'in'an'extra'client'base'
o Conventions'are'seasonal'but'the'facility'still'gets'used'for'trade'shows,'
banquets,'meetings'and'XZmas'Christmas'parties'when'it’s'a'slower'time'for'
conventions(
• City'owned'privately'managed'so'capital'costs'only'go'to'upgrades'(the'facility'
pretty'well'pays'for'itself'and'isn’t'a'tax'burden'on'citizens)(
• Having'a'small'team'helps'keep'operational'costs'down.'They'only'have'4'full'time'
staff'&'then'part'time/on'call'staff'come'in'for'large'events.(
'
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Page 13 of 159
Funding'tactics'
1. Development'
• The'massive'project'was'a'bold'vision,'led'by'Penticton’s'then'mayor'M.'P.'Finnerty.'
The'Peach'Bowl'cost'$385,000'to'build,'with'Kenyon'and'Company'winning'the'
contract'in'1962'and'PentictonZbased'architect'Roy'Meiklejohn'designing'the'venue.''
'
2. Operations'
• Spectra'Venue'Management'manages'the'Penticton'Trade'and'Convention'Centre,'
South'Okanagan'Events'Centre,'OHS'Training'Centre'and'Memorial'Arena.'The'
subsidiary'of'Comcast'Spectacor,'Global'Spectrum'is'the'largest'public'assembly'
facility'management'company'in'Canada.'
'
3. Expansion'
• Two'expansions'since'its'original'build'
o 1988'got'the'south'half'of'the'building'–'ballroom,'south'atrium'
o 2004'upgraded'façade''
Differentiation'
• Only'convention'centre'in'Okanagan''
• Has'six'air'walls'and'60,000'sq'feet'of'flexible'space'
Results'
• Celebrating'50'years'in'operation'this'year'
Challenges'(real'and'perceived)'
• Discussion'around'attracting'a'highZend'hotel'raised'issues'because'if'the'city'allows'
rezoning'for'it,'local'hoteliers'feel'this'is'an'unfair'advantage'for'the'new'hotel.'Local'
hoteliers'also'noted'the'new'hotel'will'likely'impact'investors’'interest'in'their'
businesses.'
• Currently'considering'adding'an'onsite'highZend'hotel'as'this'is'one'of'the'only'
missing'aspects.'This'idea'was'in'discussions'with'developers'this'spring.''
Kimberley&Conference&&&Athlete&Training&Centre&
Overview''
•
•
•
•
•
•
•
'
'
Link:'http://www.meetkimberley.ca''
Owner:'City'of'Kimberley'(Economic'Development'Office)''
Manager:'Kimberley'Community'Development'Society''
Affiliates:'RCR,'nothing'else'contractual'but'the'whole'community'benefits'
Purpose:'to'fill'the'midZweek'business'gap'and'as'an'economic'driver'for'Kimberley''
Open'for'business:'November'2010'
Successful?'Depends'who'looks'at'it'–'yes'to'those'who'experience'the'economic'
spill'over,'but'no'to'those'who'feel'they'are'footing'the'tax'bill'and'don’t'see'the'
economic'benefit'
o Seasonal,'timing'based'findings:'
" Spring'and'fall'busiest'
" Summer'and'Christmas'quietest''
'
12'
Page 14 of 159
Model'
•
Create'a'centre'with'multiple'facilities'to'help'diversity'the'project’s'operational'
opportunities''
Funding'strategies'
• Integrate'a'recreational'facility'into'the'conference'centre'site'and'locate'the'facility'
at'the'ski'hill'as'a'way'to'create'a'unique'sense'of'place'(and'fill'a'niche)'
• Source'nearly'all'resources'to'build'the'facility'locally'as'a'way'to'get'community'
buy'in'&'build'with'a'community'approach'
Funding'tactics'
1. Development''
o $7'million'investment:'
" Columbia'Basin'Trust'provided'$300,000'
" $2Zmillion'in'federal'and'provincial'infrastructure'grants'
" $2.5Zmillion'in'additional'provincial'grants''
" Resorts'of'the'Canadian'Rockies'contributed'$300,000'and'donated'
the'land'for'the'project'valued'at'$450,000'
2. Operations'
o Stand'alone,'the'conference'centre'runs'an'ongoing'deficit,'supported'by'the'
taxpayer.'The'deficit'is'seen'by'most'as'an'investment'into'the'economy'for'
the'benefit'of'residents.''
o You'can’t'charge'enough'to'cover'the'operational'costs'of'the'centre,'so'the'
municipality'needs'to'have'a'big'budget'on'an'ongoing'basis'to'sustain'it'
without'incurring'debt'(must'factor'in'the'repayments'of'the'capital'costs'
for'the'next'10'years)'or'must'prepare'taxpayers'for'covering'the'deficit'
until'the'capital'costs'are'fully'paid'off.'
o Remember'that'the'busier'you'are,'the'higher'the'expenses'will'be'(linens,'
cleaning,'etc.'all'rise'with'increased'number'of'events)'
3. Expansion''
o Only'5'years'old'so'no'expansion'to'date'
Differentiation''
• Largest'facility'of'its'kind'in'Eastern'BC''
• Located'in'the'heart'of'Kimberley'Alpine'Resort'
• Integrated'with'a'high'performance'Paralympic'training'centre,'which'complements'
other'Paralympic'facilities'in'the'city''
• Intended'to'be'an'apex'of'innovation,'recreation'and'sustainability'in'a'region'
committed'to'healthy'lifestyles'
• The'Centre'exceeds'the'Model'National'Energy'Code'by'more'than'30'per'cent,'and'
offers'meeting'packages'designed'to'lower'its'carbon'footprint'
• The'project'focused'on'using'95%'of'local'labour'and'materials'from'BC’s'workforce'
• Constructed'entirely'of'locally'harvested'BC'timber'
Challenges'(real'and'perceived)'
• Difficult'to'operate,'athlete'training'center'is'popular'&'well'supported'in'principal'
but'para'groups'often'have'no'money'so'despite'the'interest,'given'their'financial'
limitations,'it'can'be'a'difficult'funding'model'
• Great'generator'for'the'community'but'it'does'come'at'a'cost'to'the'taxpayer'
• With'councils'changing,'the'facility'can'be'variable'in'popularity'due'of'the'long'
term'nature'required'with'paying'off'the'capital'costs'
'
13'
Page 15 of 159
Domestic&Traditional&Scenarios&–&NonPDetailed&
Findings&
In'the'“nonZdetailed”'examples'below,'partial'information'is'outlined'as'compared'to'the'
comprehensive'summaries'for'the'“detailed'findings”.'This'was'to'ensure'that'the'
contractor’s'time'was'best'used'to'thoroughly'analyze'the'most'relevant'scenarios.''
Whistler&Conference&Centre&
Overview'
Created'in'1999'and'renovated'in'2003.'Telus'signed'10Zyear'contract'for'naming'rights'in'
2003.'
'
In'June'of'2015,'group'and'conference'business'accounted'for'one'in'every'threeZroom'
nights,'adding'to'61'per'cent'average'occupancy'for'the'month,'a'time'traditionally'at'the'
tail'end'of'the'sluggish'shoulder'season.'
'
One'of'the'key'factors'at'play'for'the'June'room'night'numbers'was'the'conference'and'
group'business'in'the'resort.'It'doubled'over'last'June.'There'were'five'big'conferences'at'
the'Whistler'Conference'Centre'in'June'including:'the'49th'Canadian'Meteorological'&'
Oceanographic'Society'Congress,'the'Canadian'Healthcare'Engineering'Society'of'BC'2017'
conference'and'trade'show,'and'the'Mozilla'AllZHands'Work'Week.'
'
"Not'only'is'(June)'up'over'last'year,'it'outperformed'the'10Zyear'average,"'said'Tourism'
Whistler's'manager'of'communications'Patricia'Westerholm,'adding'that'there'was'
consistent'growth'out'of'the'regional'and'destination'markets.'The'last'two'Fridays'on'the'
month'recorded'occupancy'at'around'87'per'cent'and'there'was'"consistent'and'significant'
growth'in'occupancy'during'midZweek'periods'throughout'the'month."'
Differentiation'
The'TELUS'Conference'Centre'is'aiming'for'Leadership'in'Energy'and'Environmental'Design'
Building'Rating'System'(LEED)'certification,'which'would'make'it'one'of'only'a'handful'of'
LEED'designated'conference'centres'in'the'world.'
'
Tourism'Whistler'forecasts'that'the'TELUS'Conference'Centre'will'generate'an'economic'
impact'of'more'than'$28.5'million'in'2004,'up'more'than'50'per'cent'from'$18.5'million'in'
2001.'
Vancouver&Island&Convention&Centre&
Overview'
9,700'delegate'days'in'its'first'year'of'operation,'generating'about'$2.7Zmillion'in'economic'
benefit'
'
Challenges'with'a'development'company'called'Millennium'in'terms'of'getting'an'
accompanying'hotel'built.'This'left'taxpayers'in'the'hole'&'was'highly'criticized'by'council'
and'members'of'the'public.'
'
'
&
14'
Page 16 of 159
Victoria&Conference&Centre&
Overview''
Run'by'City,'marketing'provided'by'tourism'in'2013'but'not'sure'of'current'status.''
'
In'2008'the'centre'received'a'$2'million'upgrade'through'the'CanadaZB.C.'Municipal'Rural'
Infrastructure'Fund,'making'it'the'second'largest'conference'centre'in'British'Columbia.'
International&Traditional&Scenarios&–&Detailed&
Findings&
Cleveland&Convention&Centre&
Overview''
•
•
•
•
•
•
•
Link:'http://www.clevelandconventions.com''
Owner:'the'City'of'Cleveland'and'Cuyahoga'county'
Manager:'SMG'
Affiliates:''
o The'Hilton''
o Global'Center'for'Health'Innovation'
Purpose:'wanted'to'accommodate'large'shows'and'intended'to'attract'overnight'
visitors'
Successful?'Will'be'assessed'in'future'years'–too'early'to'tell'
Model'
•
•
PublicZPublic'partnership'between'the'City'of'Cleveland'and'the'county'of'Cuyahoga'
Originally'managed'by'MMPI;'now'managed'by'SMC,'the'nation’s'largest'and'most'
experienced'convention'center'and'facility'management'firm.'They'assumed'
management'operations'for'the'Global'Center'for'Health'Innovation'and'the'
Cleveland'Convention'Center'in'December'2013.'
Funding'strategies'
•
•
•
•
•
•
Integrate'a'global'center'for'health'and'healthcare'innovation,'technology,'education'
and'commerce''
Leverage'PublicZPublic'partnership'(county'gave'land'and'played'role'of'developer)'
Utilize'county’s'sales'tax'and'tax'benefits'to'extend'budget''
Leverage'revenue'from'sales'tax'to'finance'additional'monies'for'other'projects'
Source'land'from'public'partner''
U.S.'Department'of'Transportation'grant'
Funding'tactics'
1. Development''
o $465'million'project,'financed'by'¼'cent'increase'in'county'sales'tax'
o The'hotel'cost'approx'$260'million'
o The'county'had'a'windfall'due'to'lower'construction'costs'and'higher'than'
expected'sales'tax'and'hotel'bed'tax'revenue'
o Leveraged'$93'million'from'the'sales'tax'—'over'and'above'the'money'
needed'for'construction'—'to'finance'up'to'$350'million'in'additional'
projects'(included'a'new'650Zroom'convention'center'hotel'and'a'walkway'
'
15'
Page 17 of 159
to'connect'the'convention'center'to'lakefront'attractions'at'North'Coast'
Harbor)'
o The'county'generated'$150'million'for'the'project'through'bonds'based'on'
anticipated'new'bed'taxes'from'the'hotel,'a'portion'of'the'new'propertyZtax'
revenues'and'part'of'the'hotel's'operating'revenues'
o Other'funding'sources'included:'
" SalesZtax'exemption'on'construction'materials,'worth'$9'million'
" The'county's'contribution'of'the'admin'building'site'
" Collectively,'the'city'contributed'$8'million,'and'the'county'
contributed'$83'million'from'its'savings'on'the'convention'center'
o Additional'funding'sources:'
" $30'to'$35'million:'local'foundations,'corporate'sponsors,'nonprofit'
groups'and'investment'funds'
" In'Oct'2015'FirstMerit'entered'into'a'20Zyear'agreement,'paying'
$400,000'annually'with'a'slight'adjustment'for'inflation'of'2.6'
percent'each'year,'totaling'more'than'$10'million'
" U.S.'Department'of'Transportation'grant:'rejected'twice.'In'the'3rd'
and'successful'application,'the'city'filed'with'support'from'the'
county'and'the'ClevelandZCuyahoga'County'Port'Authority.'They'
proved'they'had'skin'in'the'game'by'the'city'and'county'each'
pledging'to'spend'$10'million'on'the'development.'Another'$10'
million'came'from'issuing'bonds'based'on'anticipated'revenues'from'
the'garage.'
2. Operations'
o The'Convention'Center'estimates'that'current'total'convention'bookings'
through'the'end'of'2019'will'have'an'economic'impact'of'$577'million'in'
Cuyahoga'County.'
o SMG'estimates'the'economic'impact'of'all'228'events'at'about'$111'million.'
(That'compares'to'$330'million'in'economic'impact'promised'back'in'2009,'
when'county'officials'were'pitching'the'convention'centerZmedical'mart'
complex'to'the'public;'it's'not'clear,'however,'when'that'estimate'was'
expected'to'be'achieved'Z'certainly'not'in'the'first'year'of'the'center's'
operations.)'
3. Expansion'
o None'
Differentiation''
•
Convention'center'and'medically'focused'exhibit'hall'(called'the'Global'Center'for'
Health'Innovation,'which'is'the'only'facility'in'the'world'that'displays'the'future'of'
health'and'healthcare'presented'on'four'themed'floors.'The'Global'Center'will'serve'
health'and'healthcare'innovation,'technology,'education'and'commerce'through'
stateZofZtheZart'spaces,'programs'and'virtual'offerings.)'
Results'
• Because'the'city'and'county'shared'in'the'funding,'there'were'no'new'taxes'
Convention'Center'
• Convention'bookings'through'the'end'of'2014'produced'economic'impact'of'$194'
million'in'Cuyahoga'County,'based'on'the'industry'standard'multiplier'of'$1,200'in'
spending'per'convention'visitor'
• In'2014,'the'convention'center'hosted'228'events,'which'far'exceeded'the'goal'of'
130'events'outlined'in'the'operating'contract'between'management'company'SMG'
and'Cuyahoga'County.'Those'228'events'attracted'177,000'people.''
'
16'
Page 18 of 159
Of'those'228'events,'only'20'were'soZcalled'"exhibit'hall'events"'Z'multiZday'
gatherings'that'brought'outZofZtown'visitors'to'Cleveland.'The'goal'was'to'
have'30'bigger'longer'events'in'2014.'
• The'convention'center'operated'at'a'$4.1'million'loss'in'2014,'not'surprising'
because'most'centers'don't'initially'break'even.'The'general'goal'Z'for'Cleveland's'
facility'and'others'Z'is'to'generate'economic'activity'for'the'community'and'
overtime'the'deficit'gets'paid'off'(invest'into'the'centre'and'it'gives'back'to'the'
community).'
• Currently,'for'2015,'CCC'has'37'exhibit'hall'events'and'74'total'events'scheduled.'
Those'events'are'expected'to'bring'167,697'attendees'who'will'book'69,209'hotel'
rooms.''
Global'Center'
• The'Global'Center'is'nearly'80'percent'leased'with'exhibitors,'roughly'reaching'the'
county's'target'for'2014.'By'the'end'of'this'year,'the'center'is'expected'to'be'nearly'
85'percent'leased,'meeting'the'county's'target'for'the'coming'year.'
o
Challenges'(real'and'perceived)''
•
•
•
•
•
The'PublicZPublic'partnership'can'be'seen'as'not'fair'to'private'hotel'developers'
who'want'to'build'projects''
Perception'that'the'tax'money'should'have'been'used'to'lower'taxes'and'given'back'
to'the'public'(even'though'it’s'a'reinvestment'strategy'for'the'community)''
Public'funding'needs'legislative'approval'
PublicZPrivate'partnerships'can'be'said'to'have'a'history'of'cronyism'and'at'times'
corruption'according'to'the'public'
Some'members'of'the'public'were'not'convinced'the'city/county'should'have'been'
leading'the'project'
The&Convention&Centre&Dublin&
Overview'
•
•
•
•
'
Link:'http://www.theccd.ie/aboutZus''
Owner:'Office'of'Public'Works'
Manager:'as'of'2015,'operated'by'the'Irish'Infrastructure'Fund'
Affiliates:'
o Full'members'include:'
" Abbey'Conference'&'Corporate'
" Advantage'ICO'
" Conference'Partners'
" Green'Light'Events'
" MCI'Dublin'
" Odyssey'Convention'Ireland'
" Keynote'PCO'
o Associate'members'include:'
" Conference'Organisers'Ltd.'
" Dublin'Convention'Bureau'
" Visit'Dublin,'the'Regional'Tourism'Authority'
" Fáilte'Ireland'(provides'strategic'and'practical'support'to'develop'
and'sustain'Ireland'as'a'highZquality'and'competitive'tourist'
destination).''
" The'NEC'Group'(owns'and'operates'The'ICC'in'Birmingham'and'is'
the'management'consultant'for'The'Convention'Centre'Dublin).''
" The'Irish'Hotels'Federation''
17'
Page 19 of 159
"
"
"
"
"
•
•
•
Tourism'Ireland''
Dublin'Airport'Authority''
Guinness'Storehouse'
Aer'Lingus''
The'Association'of'Irish'Professional'Conference'Organisers'''
Purpose:''
o Ireland’s'firstZpurposed'built'international'conference'centre'
o To'deliver'worldZclass'events'
o To'increase'business'tourism'for'Ireland'
o To'build'an'iconic'public'building'that'has'a'high'impact''
o To'be'the'world’s'favourite'place'for'leaders,'innovators'and'dreamers'to'
share,'create'and'celebrate'ideas'that'change'lives'
Successful?'Yes,'has'won'31'awards'and'hosted'more'than'1,000'events'since'
opening'
Model'
•
•
Developed'and'operated'as'a'PublicZPrivate'partnership'between'Treasury'Holdings'
and'The'Office'of'Public'Works'
The'CCD'is'the'first'stateZowned,'publicZaccess'building'to'be'constructed'since'the'
foundation'of'the'Irish'State'
Funding'strategies'
• Leveraged'national'convention'centre'status'
• High'number'of'partners/members''
• Managed'project'development'timelines'by'facilitating'the'EU’s'incentive'to'
developer'(encouraging'them'to'meet'their'targets'with'meaningful'incentives'–'see'
more'below'in'funding'tactics;'development)'
Funding'tactics'
1. Development'
o Developed'as'a'PublicZPrivate'partnership'between'Spencer'Dock'
Development'Company'Ltd'and'the'Office'of'Public'Works'
o Cost:'€380'million''
o 40'months'for'development'and'construction'period'
o The'European'Union'provided'a'grant'of'£25'million'towards'the'project'
(conditional'on'the'project'completion'by'the'year'2000)'
2. Operations'
o Operated'by'the'Irish'Infrastructure'Fund'
o In'2012'began'the'sale'of'the'operating'businesses,'which'was'intended'to'
help'secure'the'facility’s'longZterm'future'
3. Expansion'
o None'
Differentiation'
•
'
First'carbon'neutral'international'convention'centre''
o Triple'accreditation'from'Certification'Europe'by'attaining'Quality'Standard'
ISO'9001,'Environmental'Standard'ISO'14001,'and'British'Security'Standard'
BS7499''
" Wind'and'Wave'energy'from'ESB'Independent'Energy''
" Purchase'Carbon'Credits''
'
18'
Page 20 of 159
•
•
•
•
Functional'design'
o Vertical'vs.'sprawling'design''
o Site'Size:'490’'x'250’='122,500'SF'
o Building'details:'494,300SF,'capacity:'8,000'guests'
Buildings''
o Performance'hall'(2,000'seats)''
o Banqueting'facilities'(capacity'for'3,000)''
o Multiple'meeting'rooms''
Flexibility'of'spaces'
Durability''
o 100Zyear'design'life'of'structure'
o Replaceable'features'
o Cladding'designed'for'40Zyear'life''
Results'
•
The'ICC'stages'more'than'350'conferences'and'related'meetings'and'events'each'
year.'As'one'of'the'UK's'leading'conference'venues,'it'has'earned'an'enviable'
reputation'for'quality'and'excellence.'
•
A'legal'dispute'arose'between'its'promoters,'Spencer'Dock'International,'the'Dublin'
Docklands'Development'Authority'and'Dublin'City'Council,'which'partly'delayed'the'
project.'
Useful'quote'
•
"The'opening'of'the'Convention'Centre'Dublin'marks'the'beginning'of'a'new'era'for'
convention'and'business'tourism'in'Ireland.'Tourism'is'a'vital'export'industry'for'
Ireland'and'is'an'essential'part'of'the'Government's'strategy'for'economic'recovery'
and'job'creation,"'said'An'Taoiseach,'Mr.'Brian'Cowan,'T.D.'"One'area'of'opportunity'
for'us'is'business'tourism'and'this'Centre'will'help'Ireland'win'a'greater'share'of'
this'lucrative'market,'which,'despite'the'international'downturn,'continues'to'
provide'highZvalue'visitors.”''
Domestic&NonPTraditional&Scenario&–&Detailed&
Findings&
National&Music&Centre&(Calgary,&Canada)&
Overview'
•
•
•
•
•
•
•
'
Link: https://nmc.ca''
Owner:'NMC'Board'of'Directors'
Manager:'NMC'staff'
Affiliates:''
o Bell,'ATB,'CIBC,'RBC'Foundation,'Calgary'Foundation,'Calgary'Sun,'St.'
Joseph’s'Media'
o Government'of'Canada,'Canadian'Heritage,'Alberta'Culture,'City'of'Calgary'
Purpose:'to'amplify'the'love,'sharing,'and'understanding'of'music.'
Open'for'business:'not'yet'open,'opening'schedule'for'summer'of'2016'
Successful?'Not'open'yet'
19'
Page 21 of 159
Model!
•
2012'the'Cantos'Music'Museum'because'the'National'Music'Centre'
Funding'strategies'
1. Development'
o Leveraged'milestones'to'align'with'provincial'or'national'government'
funding'programs'
o Leveraged'“National”'status'as'a'granting'strategy''
o Leveraged'educational'opportunities'as'a'granting'strategy''
o Leveraged'culture'and'heritage'as'a'funding'strategy'(cultural'
celebration'for'Canada)'
o Integrated'local'and'national'history'with'progressive'vision'
2. Development'
o Rental'and'performance'spaces'available'to'book/rent'seven'days'a'
week,'which'will'assist'in'offsetting'operating'costs,'in'addition'to'
revenue'from'admission'fees'and'fees'brought'in'through'various'NMC'
programs.'
Funding'tactics'
1. Development'
o Capital'Campaign'of'$168'million'(originally'estimated'at'$150'million:'
$135'million'for'the'building'project'and'$15'million'for'related'
development'and'programming'costs)'
o Led'by'a'National'Advisory'Committee'
o Calgary'Foundation'&'St.'Joseph’s'Media'partnership'for'$170,000'new'
online'presence'
o Advertorial'Partnership'with'Calgary'Sun'
o Major'Donations:'60+'individual'and'organizational'donors'
o $688,000'in'various'grants'
o Government'partnerships'
" Government'of'Canada:'Building'Canada'Fund'—'Major'
Infrastructure'Component:'committed'up'to'$25'million''
" Canadian'Heritage'
" Alberta'Culture:'committed'up'to'$25'million'
" City'of'Calgary:'committed'up'to'$25'million'
2. Operations''
o Integrated'funding'methods''
" 180+'individual'and'organizational'Annual'Donors'
" LongZterm'operational'sponsors'
" Out'Loud'Gala'
" Exhibition'Space'
" Museum''
" Employee'&'volunteer'supported'operations''
" Partnership'with'SAIT'to'run'specific'programs'for'postZ
secondary'education''
" Professional'development'opportunities'and'Artist'in'Residence'
Programs'
o Corporate'sponsorships'
" Bell'$12'million'over'10'years'for'Studio'Bell'
" ATB'Oral'History'Project'
" CIBC'Showtime'Performance'Series'
" RBC'Foundation''
'
20'
Page 22 of 159
'
3. Expansion'
o
None'
Differentiation!
•
•
Calgary’s'first'national'centre''
The'stateZofZtheZart'facility,'where'humidity'and'temperature'control'are'
paramount,'will'feature'both'exhibition'and'performance'spaces,'as'well'as'the'
Canadian'Music'Hall'of'Fame'and'the'Canadian'Country'Music'Hall'of'Fame.'
Results!
•
None'yet'
•
None'yet'
International&NonPTraditional&Scenario&–&Detailed&
Findings&
National&Cycling&Centre&(Manchester,&UK)&
Overview'
•
•
•
•
•
•
•
Link:'http://www.nationalcyclingcentre.com'
Owner:'info'not'available'(N/A)'
Manager:'N/A'
Affiliates:'N/A'
Purpose: one'of'Manchester's'most'soughtZafter'venues'for'small'to'medium'
conferences,'training'sessions,'trade'exhibitions'/product'launches,'and'corporate'
events.'
Successful?'The'track'is'in'constant'use'seven'days'a'week'thanks'to'the'
comprehensive'programme'of'activities'for'all'levels'of'ability.'The'track'is'the'
busiest'in'the'world.'
Model!
•
A'multipurpose'cycling'venue'in'Sportcity,'Manchester,'Great'Britain'that'includes'
an'indoor'velodrome'and'a'BMX'arena'and'outdoor'mountain'bike'trails.'It'also'has'
offices'for'British'Cycling,'the'governing'body'for'cycling'in'Britain'and'venue'space'
for'conferences.''
Funding'strategies'
• Leverage'“National”'status'as'a'granting'strategy''
• Create'the'best'cycling'facility''
Funding'tactics'
1. Development'
o Cost'£24m'(cost'of'the'building'was'£19m,'with'£5m'spent'on'improving'
the'surrounding'area)'
o Funded'by'Manchester'City'Council,'Sport'England'and'the'European'
Regional'Development'Fund'(initiated'by'a'huge'influx'of'lottery'cash)'
'
'
'
21'
Page 23 of 159
2. Operations'
o
Ongoing'support'from:'
" Manchester'City'Council'
" Lottery'funding'via'Sport'England'
" British'Cycling'
" New'East'Manchester'
" Northwest'Regional'Development'Agency'
3. Expansion'
o
One'expansion'in'2011'(Manchester'City'Council'granted'£8.55m'
towards'the'cost'of'the'project'and'Sport'England'pledged'£3m)'
Differentiation!
•
•
Olympian'hopefuls'training'ground''
Headquarters'of'British'Cycling'
Results!
•
•
The'track'is'in'constant'use'seven'days'a'week'and,'thanks'to'the'comprehensive'
programme'of'activities'for'all'levels'of'ability.'It'is'the'busiest'track'in'the'
world.'
More'than'200'jobs'are'based'at'the'site,'making'British'Cycling'one'of'the'
biggest'employers'in'the'area'
•
'
None'identified'
22'
Page 24 of 159
B-2
March 10, 2015
Mr. Andrew Nickerson
President & CEO
Canmore Business & Tourism
907 7 Avenue
Canmore, Alberta
Via email: [email protected]
RE: PROPOSED CANMORE CONFERENCE CENTRE MARKET AND FINANCIAL ASSESSMENT PROJECT – Phases 1a and 1b
DRAFT FINAL REPORT
Dear Mr. Nickerson:
In accordance with the terms of our engagement, Deloitte in association with PKF Consulting, is pleased to submit our Draft Final Report
Market and Financial Assessment findings in conjunction with a proposed Canmore Conference Centre.
Projected topline operating results herein are based on an evaluation of the present economy of the area, but do not take into account or
make provision for the effect of any sharp rise or decline in local, provincial, or national economic conditions.
As in all studies of this type, the projected results are based on competent and efficient management and presume no significant change in
the competitive position of the Canadian Convention Centre industry except as set forth in this report. The estimates are subject to
Page 25 of 159
uncertainty and variation and we do not represent them as results that will be achieved. They have, however, been conscientiously
prepared on the basis of available information and our experience in the industry.
This report has been prepared solely for the internal planning use of Canmore Business & Tourism and the Town of Canmore in assessing
the market and financial feasibility of a proposed Conference Centre and it may not be used for any other purpose. In connection with the
permitted use, this report may not be disassembled or rearranged in any manner that would allow for presentation of only a portion of the
report.
Yours very truly,
DRAFT FOR DISCUSSION PURPOSES ONLY
DELOITTE
PKF CONSULTING INC.
Market and Financial Assessment for a Proposed Conference Centre
PKF Consulting Inc. in association with Deloitte
March 2015
Canmore, AB
Prepared for: Canmore Business & Tourism
Page 26 of 159
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Canada
TABLE OF CONTENTS
1.0
1.1
1.2
1.3
2.0
2.1
2.2
2.3
2.4
2.5
2.6
2.7
2.8
3.0
3.1
3.2
3.3
3.4
4.0
4.1
4.2
4.3
4.4
4.5
INTRODUCTION----------------------------------------------------------------------------------------------------------------------------------------------------------1
Study Background -------------------------------------------------------------------------------------------------------------------------------------------------------------- 1
Phase 1a Study Tasks -------------------------------------------------------------------------------------------------------------------------------------------------------- 1
Phase 1b Study Tasks -------------------------------------------------------------------------------------------------------------------------------------------------------- 3
CURRENT SITUATIONAL ANALYSIS ------------------------------------------------------------------------------------------------------------------------------5
Introduction ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- 5
Town of Canmore Economic Profile --------------------------------------------------------------------------------------------------------------------------------------- 5
Canmore Business and Tourism (CBT) ---------------------------------------------------------------------------------------------------------------------------------- 6
Canmore’s Meeting and Convention Venues --------------------------------------------------------------------------------------------------------------------------- 8
Canmore’s Historic Accommodation Demand ------------------------------------------------------------------------------------------------------------------------ 11
Canmore’s Meeting & Conference Demand -------------------------------------------------------------------------------------------------------------------------- 13
Canmore’s Lost Events Business ---------------------------------------------------------------------------------------------------------------------------------------- 14
Summary ----------------------------------------------------------------------------------------------------------------------------------------------------------------------- 14
COMPETITIVE M&C SUPPLY ANALYSIS ----------------------------------------------------------------------------------------------------------------------- 15
Introduction --------------------------------------------------------------------------------------------------------------------------------------------------------------------Alberta Rockies and Red Deer Convention Hotels -----------------------------------------------------------------------------------------------------------------Convention/Conference Centres ----------------------------------------------------------------------------------------------------------------------------------------Summary -----------------------------------------------------------------------------------------------------------------------------------------------------------------------
15
15
17
18
COMPETITIVE ALBERTA HOTEL/RESORT M&C DEMAND ANALYSIS ------------------------------------------------------------------------------- 19
Introduction --------------------------------------------------------------------------------------------------------------------------------------------------------------------Competitive Alberta Hotel/Resort Market Performance -----------------------------------------------------------------------------------------------------------Competitive Alberta Hotel/Resort Market Segmentation ----------------------------------------------------------------------------------------------------------Alberta Hotels / Resorts M&C Demand--------------------------------------------------------------------------------------------------------------------------------Summary -----------------------------------------------------------------------------------------------------------------------------------------------------------------------
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19
21
21
23
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5.0
5.1
5.2
5.3
5.4
5.5
5.6
5.7
5.8
5.9
6.0
6.1
6.2
6.3
6.4
6.5
7.0
7.1
7.2
7.3
7.4
7.5
8.0
8.1
8.2
8.3
8.4
8.5
8.6
COMPETITIVE CONVENTION CENTRE DEMAND ANALYSIS ------------------------------------------------------------------------------------------- 24
Introduction --------------------------------------------------------------------------------------------------------------------------------------------------------------------Competitive Convention Centre Market Segmentation ------------------------------------------------------------------------------------------------------------Conventions-------------------------------------------------------------------------------------------------------------------------------------------------------------------Trade and Consumer Shows ---------------------------------------------------------------------------------------------------------------------------------------------Meetings and Conferences -----------------------------------------------------------------------------------------------------------------------------------------------Food & Beverage / Social Events ---------------------------------------------------------------------------------------------------------------------------------------Other Events ------------------------------------------------------------------------------------------------------------------------------------------------------------------Alberta’s MC&IT Booking Pace -----------------------------------------------------------------------------------------------------------------------------------------Summary -----------------------------------------------------------------------------------------------------------------------------------------------------------------------
24
24
24
27
27
28
29
29
30
MEETINGS PROFESSIONAL SURVEY RESULTS ----------------------------------------------------------------------------------------------------------- 31
Introduction --------------------------------------------------------------------------------------------------------------------------------------------------------------------Respondent Event Information-------------------------------------------------------------------------------------------------------------------------------------------Evaluation of Canmore as a Meetings Destination -----------------------------------------------------------------------------------------------------------------Facility Input for Proposed Canmore Conference Centre ---------------------------------------------------------------------------------------------------------Other Meeting Professional Suggestions and Feedback ----------------------------------------------------------------------------------------------------------
31
32
37
39
41
FACILITY ALTERNATIVES FOR A NEW CANMORE CONFERENCE CENTRE ---------------------------------------------------------------------- 44
Introduction --------------------------------------------------------------------------------------------------------------------------------------------------------------------Stand Alone Conference Centre-----------------------------------------------------------------------------------------------------------------------------------------Hotel with Conference Centre --------------------------------------------------------------------------------------------------------------------------------------------Mixed Use Development --------------------------------------------------------------------------------------------------------------------------------------------------Summary -----------------------------------------------------------------------------------------------------------------------------------------------------------------------
44
44
46
47
47
MARKET DEMAND POTENTIAL FOR A CANMORE CONFERENCE CENTRE ---------------------------------------------------------------------- 48
Introduction --------------------------------------------------------------------------------------------------------------------------------------------------------------------Market Projections ----------------------------------------------------------------------------------------------------------------------------------------------------------Proposed Canmore Conference Centre Utilization Projections -------------------------------------------------------------------------------------------------Summary of Canmore Conference Centre Demand Projections -----------------------------------------------------------------------------------------------Projected Delegates and Room Nights --------------------------------------------------------------------------------------------------------------------------------Market Assessment and Comparison with Other Destinations ---------------------------------------------------------------------------------------------------
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48
52
57
57
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9.0
9.1
9.2
10.0
10.1
10.2
10.3
10.4
10.5
10.6
11.0
11.1
11.2
11.3
11.4
11.5
11.6
12.0
12.1
12.2
12.3
12.4
12.5
12.6
RECOMMENDED FACILITY PROGRAM ------------------------------------------------------------------------------------------------------------------------ 63
Introduction --------------------------------------------------------------------------------------------------------------------------------------------------------------------- 63
Meeting Room and Ballroom Breakdown ------------------------------------------------------------------------------------------------------------------------------ 63
SITE ANALYSIS -------------------------------------------------------------------------------------------------------------------------------------------------------- 65
Introduction --------------------------------------------------------------------------------------------------------------------------------------------------------------------Evaluation Methodology ---------------------------------------------------------------------------------------------------------------------------------------------------List of Potential Publicly-owned Sites ----------------------------------------------------------------------------------------------------------------------------------Evaluation Framework -----------------------------------------------------------------------------------------------------------------------------------------------------Site Selection Analysis -----------------------------------------------------------------------------------------------------------------------------------------------------Evaluation Summary --------------------------------------------------------------------------------------------------------------------------------------------------------
65
65
65
67
68
72
INDICATIVE CAPITAL COSTS ------------------------------------------------------------------------------------------------------------------------------------- 74
Introduction --------------------------------------------------------------------------------------------------------------------------------------------------------------------Capital Cost Benchmark Methodology---------------------------------------------------------------------------------------------------------------------------------Indicative Capital Cost Estimates – Proposed Conference Centre---------------------------------------------------------------------------------------------2014 Altus Cost Guide – Industry Benchmark -----------------------------------------------------------------------------------------------------------------------Indicative Capital Cost Estimates – Parking Facility ---------------------------------------------------------------------------------------------------------------Summary of Indicative Capital Cost Estimates -----------------------------------------------------------------------------------------------------------------------
74
74
75
76
76
76
OPERATING PROJECTIONS --------------------------------------------------------------------------------------------------------------------------------------- 77
Introduction --------------------------------------------------------------------------------------------------------------------------------------------------------------------Utilization Projections-------------------------------------------------------------------------------------------------------------------------------------------------------Departmental Revenues and Expenses -------------------------------------------------------------------------------------------------------------------------------Undistributed Expenses ---------------------------------------------------------------------------------------------------------------------------------------------------Staffing -------------------------------------------------------------------------------------------------------------------------------------------------------------------------Operating Forecasts ---------------------------------------------------------------------------------------------------------------------------------------------------------
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78
78
81
82
83
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13.0
13.1
13.2
13.3
13.4
13.5
14.0
14.1
14.2
14.3
14.4
14.5
15.0
15.1
15.2
15.3
15.4
15.5
FINANCIAL ANALYSIS------------------------------------------------------------------------------------------------------------------------------------------------ 85
Introduction --------------------------------------------------------------------------------------------------------------------------------------------------------------------Deal Structure ----------------------------------------------------------------------------------------------------------------------------------------------------------------Capital Funding --------------------------------------------------------------------------------------------------------------------------------------------------------------Operating Gap Funding ----------------------------------------------------------------------------------------------------------------------------------------------------Summary -----------------------------------------------------------------------------------------------------------------------------------------------------------------------
85
85
86
86
89
ECONOMIC IMPACT -------------------------------------------------------------------------------------------------------------------------------------------------- 90
Introduction --------------------------------------------------------------------------------------------------------------------------------------------------------------------Economic Impact of Proposed Canmore Conference Centre ---------------------------------------------------------------------------------------------------Delegate Per Spend Assumptions --------------------------------------------------------------------------------------------------------------------------------------Delegate Spending Impacts by Type of Event -----------------------------------------------------------------------------------------------------------------------Benefits to the Accommodation Sector ---------------------------------------------------------------------------------------------------------------------------------
90
92
93
94
95
APPENDIX A – MAPS ------------------------------------------------------------------------------------------------------------------------------------------------- 96
Travel Alberta Information Centre Site ---------------------------------------------------------------------------------------------------------------------------------Palliser Lands North and South Site------------------------------------------------------------------------------------------------------------------------------------Downtown Parking Lot – East and West Site ------------------------------------------------------------------------------------------------------------------------Industrial Lands behind Heliport -----------------------------------------------------------------------------------------------------------------------------------------Elevation Place----------------------------------------------------------------------------------------------------------------------------------------------------------------
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EXECUTIVE SUMMARY
Study Mandate
In February 2014, Canmore Business and Tourism (CBT) retained
Deloitte to evaluate the potential opportunity of developing a
Conference Centre in Canmore, Alberta. Stakeholder consultation
findings showed that there was broad agreement on the potential
benefits of a Conference Centre, which contributed to the strong
support for assessing the feasibility of the Centre further. In
September 2014, Deloitte was retained in association with PKF
Consulting to complete a Market Assessment (Phase 1a) and
Financial Assessment (Phase 1b) for the proposed Canmore
Conference Centre.
Current Situational Analysis
Canmore’s current accommodation inventory includes 18 hotel
properties offering 1,661 rooms. The largest meeting venue is the
Coast Hotel & Conference Centre with 9,000 square feet of
function space. A further 6 hotels provide from 2,000 to 4,500
square feet of meeting space, with the remainder offering minimal
meeting space. As such the Town is largely restricted to hosting
groups of less than 200 delegates/attendees in size. In 2013, the
Town hosted an estimated 585 events attracting over 27,000
delegates/attendees. Of these events, only 10 attracted more
than 250 delegates, with the majority being less than 50
delegates in size.
Canmore’s event demand generated an
estimated 38,800 occupied room nights for the Town’s
accommodation sector, equating to 13.5% of overall room night
demand.
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Canmore’s accommodation market has challenges in attracting
National and Regional Association conferences, largely due to the
larger size of these events and the functional capacity restrictions
in the market for self-contained meetings.
In 2013, Canmore hoteliers estimate that they received 18
Meeting & Conference (M&C) related inquiries which they were
not able to accommodate because of insufficient meeting space,
which equates to 6,200 lost room nights.
Competitive Meetings & Convention Supply Analysis
The proposed Canmore Conference Centre’s primary competitive
supply would be comprised of 40 venues, including existing
Canmore hotels, resorts and other venues, 9 hotels and resorts in
the Alberta Rockies and Red Deer, as well as 9 Tier 2 and 3
Convention/Conference Centres in Alberta and B.C. Canmore’s
competitive meetings & convention supply offers just under 1
million square feet of rentable space.
Table 1
Canmore's Total Competitive Meetings & Convention Supply
#
Rentable Square
Market
Venues
Feet
Canmore Hotels/Resorts
18
34,675
Canmore Other Unique Venues
4
12,273
Alberta Resorts/Hotels
9
266,277
Alberta and B.C. Convention Centres
9
666,816
Total
40
980,041
Source: PKF Consulting
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Competitive Alberta Hotel/Resort Meetings and
Convention Demand Analysis
Inclusive of Canmore’s accommodation sector, the 27 competitive
Alberta Resorts and Hotels offer 5,255 guest rooms and provide
301,000 square feet of meeting space. In 2013, the Meetings and
Convention segment generated 328,000 room nights, representing
31% of overall demand.
This level of overnight demand
translates to an estimated 2,100 events attracting over 221,600
delegates/attendees. Of these events, 227 attracted more than
250 delegates (11%), with 1,870 events (89%) being less than
250 delegates in size.
Competitive Convention Centre Demand Analysis
The proposed Canmore Conference Centre will compete against
other Tier 2 and 3 Conventions Centres in Western Canada for
Convention demand at the national and international level, with
the majority of Meetings and Food & Beverage demand derived
from the local and regional hotel and resort market.
There are 9 Tier 2 and 3 competitive Convention Centres in
Western Canada. These competitive facilities hosted close to
3,100 events in 2012 and 2013. Each Centre attracted an average
of 28 Conventions, 7 Trade Shows, 6 Consumer Shows, 182
corporate meetings/conferences, 81 banquets and 31 other
events, for a total of 335 events per Centre in 2013.
Table 2
Number of M&C Events and Delegates/Attendees by Type and Size
Alberta Hotel/Resort Competitive Market - 2013
Corporate
SMERF
Incentive/
Groups
Gov't
Event Size
Conventions Meetings
Total
Less than 250
235
672
941
23
1,871
251-500
142
50
192
501 - 1,000
11
24
35
Total M&C Events
388
672
1,015
23
2,098
Total Delegates/Attendees
82,720
34,876
102,021
1,975
221,593
Avg Event Size
213
52
101
88
106
Source: PKF Consulting Research
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Table 3
TIER 2 & 3 COMPETITIVE WESTERN CANADA CONVENTION CENTRES
MARKET DEMAND BY EVENT TYPE
TOTAL EVENTS
2012
2013
Conventions
248
254
Trade Shows
60
60
Consumer Shows
59
57
Corporate Meetings/Conferences
1,683
1,638
Food & Beverage/ Social
735
732
Other Events
296
278
TOTAL EVENTS
3,081
3,019
TOTAL GROWTH
-2.0%
SUPPLY
Convention Centres
% Change
RENTABLE SQUARE FEET
% Change
AVG EVENTS PER CENTRE
Conventions
Trade Shows
Consumer Shows
Other Events
TOTAL
2012
9
2013
9
0.0%
664,316
0.0%
2012
28
7
7
187
82
33
342
0.0%
664,316
Based on 3 Tier 2 and 6 Tier 3 Convention Centres in Alberta and B.C.
0.0%
2013
28
7
6
182
81
31
335
Meetings Professional Survey Results
PKF prepared an online survey to obtain stakeholder input into the
development of a proposed Conference Centre in Canmore. The
survey questions focused primarily on quantifying the need for
and possible dimensions of the Centre itself, from the perspective
of both existing and potential users of meeting/conference
facilities in the Town. The survey also focused on the competitive
strengths and weaknesses of Canmore as a meeting and
conference destination.
A total of 360 meeting professionals were contacted via email and
58 completed surveys were received, representing a response rate
of 16%. Survey responses were categorized based on the
following 3 Group profiles:
1. All Respondents – all meeting professionals who
completed the survey;
2. Existing Users of Canmore – have hosted a meeting or
event at any venue in Canmore in the past; and
3. Potential Users of Canmore - have not hosted a
meeting or event at any venue in Canmore in the past.
Respondents who had previously not hosted an event in Canmore
were asked to indicate why they had decided not to consider the
Town. The top 3 reasons provided were lack of familiarity with
Canmore’s meeting facilities, availability of meeting space and
logistics of transportation to Canmore (i.e. ground shuttle from
Calgary Airport).
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As a proportion of total events identified, Calgary Hotels remain
the most prominently utilized by both existing and potential User
groups. When looking at top venues used by type of event,
Existing Users make use of Canmore / Kananaskis Hotels &
Resorts more actively than Canadian Convention Centres and Red
Deer properties.
With respect to Largest Event Size for those who have hosted or
might consider hosting events in Canmore, Existing Users
identified a size range of 10 to 5,000 delegates, and an average
event size of 595 delegates. In comparison, Potential Users
identified a range from 10 to 1,700 delegates, and an average of
253 delegates for the largest event that they might potentially
host in Canmore.
The general response with respect to Meeting Space was that a
large ballroom in the range of 6,500 to 10,000 square feet would
be sufficient, with adequate breakout space for 400-650 people.
Almost one-third of Existing Users indicated that they would not
make use of exhibition space. For those who would, the range
varied from a small area enough for 10 booths to 50,000 sq.ft.,
for an average of 12,400 sq.ft.
For those who are NOT currently hosting events in Canmore, 76%
agreed that additional meeting and accommodation facilities
would assist in their decision to bring new events to Canmore.
14% of respondents identified no requirements for connectivity
between meeting space and rooms.
Facility Alternatives for a New Canmore Conference
Centre
We have explored 3 facility development alternatives for a
proposed Conference Centre in Canmore, which include a standalone
conference
centre,
a
full-service
hotel
with
meeting/conference space; and a mixed use venue.
Based on our preliminary analysis, we recommend consideration
be given to the development of a stand-alone Conference Centre
with up to 18,000 square feet of rentable space. This option
requires a site in the range of 3.5 acres. Ideally, a site in the
range of 5 acres could accommodate the proposed Conference
Centre, with an adjacent allowance of 2 acres for future hotel
development.
As currently configured, the “comfort capacity” of the facility for
one convention is the range of 165 delegates, who would require
3,000 square feet of primary meeting space in one room, 3,000
square feet of “dining” space in a second room, and at least 3,000
square feet of tradeshow space in a third room.
Finally, respondents’ organizations and/or their clients require
Meeting Space & Exhibition Space to be under one roof or
physically connected, specifically when hosting large conventions
or other events. Approximately 61% of All Respondents are given
a mandate to host large conventions & conferences in a venue
that is physically attached to guest room accommodations. Only
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Table 4
CANMORE CONFERENCE CENTRE
RECOMMENDED FACILITY PROGRAM
Meeting Space
Unit
Seats
Largest Divisible Room / Ballroom
1
667
Meeting Space
1
533
Public Areas
1
Gross up @ 50%
Total
3
1,200
Functional Event Capacity
525
Parking
Parking Structure/Lot
Total
Other
Land
Site Preparation & Servicing
FF&E
Total
TOTAL PROGRAM
Land
Construction
FF&E
TOTAL CONFERENCE CENTRE
TOTAL PARKING
TOTAL PROJECT
Market Demand Potential for a Canmore Conference
Centre
Sq.ft.
10,000
8,000
2,700
20,700
41,400
persons
Stalls Sq.ft./Stal Sq.ft.
427
400
171,000
427
400
171,000
Sq.ft.
158,417
158,417
20,700
41,400
3.6 acres
Acres
Sq.ft.
Sq.ft.
3.6
-
-
158,417
41,400
158,000
20,700
41,400
171,000
212,400
Canmore, Alberta
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For the purposes of this analysis, we have assumed that the
proposed Canmore Conference Centre will enter the competitive
market by 2018, increasing the number of Convention Centres in
the competitive market to 10. We have also accounted for an
expansion to one of the Convention Centres in Calgary as well as
an expansion of the Whistler Conference Centre by the same year
- 2018. This will translate into a 20% increase in supply with over
800,000 square feet of new rentable space coming into the
competitive market over the next 5 years.
In 2013, Canmore hosted an estimated 103 National and Regional
Association conferences, the majority of which were less than 150
delegates in size. On average, the Town attracts 2 Conventions
each with approximately 400 delegates per year. Overall the
average Convention to Canmore is currently less than 60
delegates.
With the opening of the subject 18,000 square foot Canmore
Conference Centre in 2018, Canmore is expected to attract 17
Conventions each with an average of 200 delegates, plus 2
Conventions of 350 delegates.
Given the Town’s current
accommodation supply, the Town will not be in a position to
effectively compete for larger conventions of 500+ delegates. In
its first year of operation, the proposed Conference Centre is
projected to achieve 61% of its fair market share amongst its
competitive Convention Centre market.
Going forward, the
Canmore Conference Centre is projected to gradually improve its
market penetration to close to 80% in the Convention market.
The market will continue to attain less than its fair market share
of Conventions until such time as an additional branded hotel of
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150 to 200 rooms enters the market, and is strategically located in
close proximity to the Conference Centre. However, it should be
noted that at a projected utilization rate of 17 to 23 Conventions,
the Canmore Conference Centre will achieve well above its fair
market share in comparison to its Alberta hotels and resorts
market. On average, the competitive hotel and resort market
attracts 13 self-contained conventions per year.
While the preliminary facility program for the Canmore Conference
Centre does not provide space dedicated to exhibitions, the Centre
is expected to attract 1 Trade Show in its first year of operation,
increasing to 2 Trade Shows by its 3rd year of operation, reflecting
a market penetration of 30% of its fair market share.
We have projected that a new Conference Centre in Canmore will
capture 70 corporate meetings/conferences in Year 1, increasing
to 100 meetings by Year 3. This represents a penetration rate of
over 300% of its fair market share amongst Alberta’s hotel and
resort competitive market, increasing to over 430% by Year 3.
With the opening of the Canmore Conference Centre in 2018, we
have forecast the Centre will achieve more than its fair market
share of SMERF events, weddings and other social events (126%
penetration rate), growing from 42 events to 54 events by Year 3
(159% penetration rate).
In terms of Trade Shows, the new Canmore Conference Centre is
projected to attract 440 delegates and exhibitors and 660 room
nights during its first year of operation, increasing to 880
attendees/exhibitors and 1,320 room nights by Year 3.
The number of delegates attending corporate meetings at the new
Conference Centre has been estimated at 5,250 in Year 1
increasing to 10,000 by Year 3. This demand segment will
generate the majority of accommodation demand for the Town at
10,500 room nights in Year 1, increasing to 15,000 room nights by
Year 3.
By its 3rd year of operation, the Canmore Conference Centre is
expected to host close to 10,000 guests stemming from Social
Events, generating 8,400 room nights for the Town.
With the addition of a new Conference Centre offering 18,000
square feet of rentable space, the Centre is forecast to host
close to 180 events and 22,300 delegates/attendees to
the Town by its 3rd year of operation, which in turn will
generate 29,400 room nights.
While the Centre is projected to achieve less than its fair market
share of event business amongst its competitive Convention
Centre market (40 to 55%), it is projected to achieve 200% to
300% of its fair market share amongst its competitive Alberta
resorts and hotels that attract self-contained meetings and event
functions.
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Incremental New M&C Demand to Canmore
An estimated 2-in-every-3 room nights generated by the Centre
will be incremental new M&C demand for the Town, equating to
an estimated 58,000 M&C room nights. Assuming that there is no
displacement of existing demand and no further hotels enter the
market, the addition of a Conference Centre will contribute to a
59% occupancy for the Town – a 5% point increase over 2014
levels. Based on the forecasted utilization levels for the Centre,
M&C demand is projected to comprise 17% of overall demand to
the Town by its stabilized year of operation.
Table 5
Total Projected Delegates/Attendees and Room Nights Generated
Canmore Conference Centre
Type of Event
Year 1
Year 2
Year 3
Conventions
17
20
23
Trade Shows
1
1
2
Corporate Meetings
70
90
100
F&B Social/Other
42
48
54
Total Events
130
159
179
Delegates
Conventions
2,850
3,450
4,050
Trade Shows
440
440
880
Corporate Meetings
5,250
6,750
7,500
F&B Social/Other
7,550
8,700
9,850
Total Delegates
16,090
19,340
22,280
Event Days
Conventions
34
40
46
Trade Shows
2
2
4
Corporate Meetings
105
135
150
F&B Social/Other
42
48
54
Total Event Days
183
225
254
Delegate Days
Conventions
5,700
6,900
8,100
Trade Shows
880
880
2,080
Corporate Meetings
7,875
10,125
11,250
F&B Social/Other
7,550
8,700
9,850
Total Delegate Days
22,005
26,605
31,280
Room Nights
Conventions
4,560
5,520
6,480
Trade Shows
660
660
1,320
Corporate Meetings
9,188
11,813
13,125
F&B Social/Other
6,392
7,414
8,436
Total Room Nights
20,799
25,406
29,361
2013 M&C Room Nights in Canmore
38,779
Incremental New M&C Room Nights to Canmore
19,400
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Site Analysis
For the potential location of the proposed Conference Centre,
five publicly owned sites were identified by CBT for initial
consideration. Additional sites may be considered for the
potential Conference Centre, however, for the purpose of this
report, only publicly-owned sites have been considered.
The following five (5) publicly owned sites are being considered
for the proposed Conference Centre:
•
Travel Alberta Information Centre Site
•
Palliser Lands North and South Site
•
Downtown Parking Lot – East and West Site (802 6th
Avenue and 907 7th Avenue, Canmore)
•
Industrial Lands behind Heliport
•
Elevation Place
Evaluation factors and weightings were developed based on
input and confirmation from CBT. Land acquisition or access
arrangements have not been assessed in the analysis and will
need to be considered based on the potential short-list of sites.
Each publicly owned site was assessed against each of the five
evaluation factors and scored accordingly. Each site is given a
score out of 10 for each evaluation criterion. In collating all the
scores, based on the weighting of each evaluation factor, a
weighted score is calculated for each factor, per site. The
weighted scores are then summed to produce the overall score
for each site, which is used to rank the sites in order of
preference.
Table 6
Site Analysis Evaluation Factors and Weightings
Evaluation Factor
Weighting
1
Relative proximity to critical
mass of hotels
40%
2
Proximity to the downtown
core and/or availability of
transportation access
3
4
5
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Impact of land
characteristics on potential
cost of development
Land availability for potential
future expansion
Site visibility
25%
20%
10%
5%
Description
Depending on if the Town decides to pursue a standalone conference centre, it is very important for the site
to be close to a critical mass of hotels, as noted by the
majority of meeting planners surveyed who identified this
as a significant factor driving conference location
selection. In Canmore, the concentration of hotels is
outside the downtown core, largely along Bow Valley
Trail with proximity to the Trans-Canada Highway.
A site located close to the downtown core (i.e., short
walk or accessible by convenient public transit or shuttle)
can provide an opportunity for delegates to easily visit
places downtown for restaurant and retail activities which
is expected to be a key economic driver of the conference
centre.
The key drivers of incremental cost of development may
include site-specific characteristics that may lead to
higher construction-related costs (e.g. environmental
conditions, land constraints etc.).
The land parcel size will be a factor in assessing the
conference centre facility's potential for future expansion.
The preferred conference option based on the market
assessment, which is a stand-alone venue with a 2 level
parking structure, may require approximately 3.6 acres.
Expansion for a potential hotel build out may require an
additional 1.7 acres, assuming the hotel is built on 5
floors, and the existing 2 level parking structure is not
expanded. A larger parcel of land will provide more
flexibility for future expansion.
The site’s ability to provide a visible location for the
conference centre will enhance its profile within the
Town. Visibility from the highway is an important
consideration which will aim to advertise the proposed
Conference Centre to the highway users.
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As per the evaluation summary, among the publicly owned sites,
Elevation Place and the Downtown Parking Lot scored the highest
in the analysis, largely driven by their proximity to the majority of
hotels in the Town as well to the downtown core. However,
additional review will be required to further assess the feasibility
of both sites based on the requirements of the potential
Conference Centre. As an initial step, the extent of available land
on both sites needs to be reviewed in more detail to make a
determination if this is sufficient for a proposed Conference Centre
and associated parking requirements.
Indicative Capital Costs
High level capital cost estimates have been estimated for the
preferred stand-alone facility option size of 41,400 square feet,
based on benchmarked capital costs from comparable precedent
conference centres and industry estimates.
Two convention centres, Hendersonville Conference Centre and
Fredericton Conference Centre were selected as potential
comparables because they are new build projects with similar
gross facility sizes as the proposed Centre.
Using the precedent examples as the basis to develop a
reasonable applicable cost range, the estimated total capital cost
(construction costs and soft costs) for the proposed Conference
Centre is $15 -$20 Million.
The unit construction cost estimate for the recommended parking
facility (an above greade two level parking structure with 427
spaces) was sourced from the Altus Cost Guide. Based on an
estimated square footage of 170,667, the estimated total cost
range for the proposed parking facility is $16 - $20 Million.
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The estimated total capital cost range for the proposed conference
centre and parking facility is $31 - $40 Million, which excludes
land costs.
Operating Projections
Operating forecasts for the first five years of operation have been
based on 18,000 square feet of rentable space, with the proposed
Canmore Conference Centre hosting 179 events and 254 event
days by its stabilized year of operation (Year 5).
Revenues will be derived through space rentals, food and
beverage and AV/Event Services. For the purposes of our
analysis, we have assumed that both the Food and Beverage and
Av/Event Services will be internalized at the proposed Centre,
rather than outsourced to third party operators.
Staffing requirements for the Centre have been estimated at 24
full-time equivalent positions, for a total payroll of $1.3 Million.
The subject Canmore Conference Centre is projected to operate at
a net loss of $394,000 in Year 1, decreasing to a net loss of
$126,000 by Year 5.
There may be an opportunity for Canmore Business and Tourism
(CBT) to lease space at the subject Conference Centre at an
estimated $50,000 in Year 1, increasing at 2.5% inflation over the
projection period. This lease income would allow the Canmore
Conference Centre to reduce its net loss to $344,000 in Year 1,
decreasing to a net operating loss in Year 5 of $72,000.
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Table 7
OPERATING PROJECTIONS
OPERATING FORECASTS
Year 2
Year 1
Facility Profile
Multi-function space (rentable sq. ft.)
Meeting Rooms (rentable sq. ft.)
Total Facility
Utilization
Events
Event Days
Revenues
Space Rentals
F&B Revenues
Other Event Services
Total Revenue
Direct Operating Expenses
Direct Event Expenses
Direct F&B Expenses
Direct Other Event Expenses
Total Direct Expenses
Departmental Income
Indirect Operating Expenses
Administration
Marketing & Sales
Building Operations & Maintenance
Utilities
Insurance
Property Taxes
Total Indirect Operating Expenses
Reserve for Asset Replacement
Net Operating Income
Potential Lease Income from CBT
NOI After CBT Lease
10,000
8,000
18,000
55.6%
44.4%
100.0%
10,000
8,000
18,000
55.6%
44.4%
100.0%
Year 3
10,000
8,000
18,000
Year 4
56%
44%
100%
10,000
8,000
18,000
130
183
159
225
179
254
179
254
$305,000
$1,591,000
$259,000
$2,155,000
14.2%
$372,000
73.8%
$1,972,000
12.0%
$327,000
100.0% $2,671,000
13.9%
$440,000
73.8%
$2,342,000
12.2%
$379,000
100.0% $3,161,000
13.9%
$451,000
74.1% $2,400,000
12.0%
$388,000
100.0% $3,239,000
Year 5
56%
44%
100%
10,000
8,000
18,000
56%
44%
100%
179
254
13.9%
$463,000
13.9%
74.1%
$2,460,000
74.1%
12.0%
$398,000
12.0%
100.0% $3,321,000 100.0%
$196,000
$1,161,000
$158,000
$1,515,000
$640,000
64.3%
73.0%
61.0%
70.3%
29.7%
$220,000
$1,440,000
$178,000
$1,838,000
$833,000
59.1%
73.0%
54.4%
68.8%
31.2%
$246,000
$1,710,000
$193,000
$2,149,000
$1,012,000
55.9%
$251,000
73.0% $1,752,000
50.9%
$198,000
68.0% $2,201,000
32.0% $1,038,000
55.7%
$258,000
73.0%
$1,796,000
51.0%
$203,000
68.0% $2,257,000
32.0% $1,064,000
55.7%
73.0%
51.0%
68.0%
32.0%
$289,000
$231,000
$227,000
$104,000
$75,000
$0
$926,000
$108,000
($394,000)
$50,000
($344,000)
13.4%
10.7%
10.5%
4.8%
3.5%
0.0%
43.0%
5.0%
-18.3%
$296,000
$237,000
$233,000
$107,000
$77,000
$0
$950,000
$134,000
($251,000)
$51,000
($200,000)
11.1%
8.9%
8.7%
4.0%
2.9%
0.0%
35.6%
5.0%
-9.4%
$303,000
$243,000
$239,000
$110,000
$79,000
$0
$974,000
$158,000
($120,000)
$52,000
($68,000)
9.6%
$311,000
7.7%
$249,000
7.6%
$245,000
3.5%
$113,000
2.5%
$81,000
0.0%
$0
30.8%
$999,000
5.0%
$162,000
-3.8% ($123,000)
$53,000
-2.2% ($70,000)
9.6%
$319,000
7.7%
$255,000
7.6%
$251,000
3.5%
$116,000
2.5%
$83,000
0.0%
$0
30.8% $1,024,000
5.0%
$166,000
-3.8% ($126,000)
$54,000
-2.2%
($72,000)
9.6%
7.7%
7.6%
3.5%
2.5%
0.0%
30.8%
5.0%
-3.8%
-16.0%
Canmore, Alberta
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-7.5%
-2.2%
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Funding Analysis
Capital and operating funding options were assessed for the
proposed Conference Centre facility based on the indicative capital
cost estimates and operating projections.
Given the Town’s recent experience in funding the Elevation Place
(a 77,000 square foot recreational facility that includes a library
and multipurpose community spaces), and its potential debt
capacity and reserves, the Town may consider a similar capital
funding model for the proposed Canmore Conference Centre,
while leveraging maximum available Provincial and Federal
government funding opportunities.
As the proposed Centre is expected to play a significant role in the
creation of additional room nights for Canmore hoteliers, the
Town may consider an additional surcharge on hotel rooms in
order to fund the projected operating gap, either through
increasing existing charges or potentially a new fee.
The potential magnitude of this surcharge was assessed based on
the operating projections, as $91 per hotel room annually. This
amount translates to 46 cents per occupied room night (0.3% of
the average daily rate). It is suggested that the Town consider
exploring the potential for the introduction of a new mandatory
hotel levy if adjustments to existing mechanisms are not feasible.
Downside scenario analysis was conducted to assess the impact
on the suggested hotel levy if there is a 10%, 25% and 50%
reduction in the projected operating revenue. Based on the
downside scenario analysis, the levy ranges from $266 - $967 per
hotel room annually.
Economic Impact – New Spending to Canmore
Based on the overnight demand assumptions, the opening of the
subject Canmore Conference Centre is projected to generate a
total of 20,800 room nights in Year 1, increasing to 29,400 by
Year 3. Approximately two-thirds of all room nights generated by
the Conference Centre will be incremental new demand to
Canmore. As such, the incremental new M&C activity to the Town
of Canmore is estimated at 13,700 room nights in Year 1,
increasing to 19,400 room nights by Year 3.
The average delegate to the Town of Canmore is estimated to
spend $350.48 per day. The subject Conference Centre is
Table 8
Operating Gap Funding Scenario Analysis
Scenario
Base Case
Scenario 1
Scenario 2
Scenario 3
5 - Year Average Revenue
$ 2.9 Milion
$ 2.6 Million
$ 2.2 Million
$ 1.5 Million
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Annual Hotel Levy
per hotel room
$91
$266
$529
$967
$ / Occupied Room Night
$
0.46
$
1.34
$
2.65
$
4.85
Percentage of
Average Hotel daily
rate
0.30%
0.90%
1.90%
3.40%
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projected to host 17 major conventions in Year 1, with 2,850
delegates, increasing to 23 events and 4,050 delegates by its
stabilized year of operation. Total delegate spending is projected
to reach $2.9 Million by the Centre’s 5th year of operation, of
which $2.6 Million (90%) will be incremental new spending to the
Town of Canmore.
Based on the preceding analysis, the proposed Canmore
Conference Centre is projected to generate $10.6 Million
in total delegate spending to Canmore by its 5th year of
operation, of which 68% of this spending will be new
incremental revenues to the Town, equating to $7.2
Million in new spending per year.
The direct benefits to the accommodation sector in the Town will
be strong:
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The Conference Centre is projected to generate 19,400
incremental room nights and $3.6 Million in room revenue
by Year 5;
Approximately 2-out-of-every 3 room nights generated will
be incremental new demand to Canmore, accounting for
$2.3 Million in new room revenue annually.
By the stabilized year of operation, meetings and
convention related demand generated by the Town of
Canmore is projected to generate an estimated 59,600
room nights for the City – 54% above the City’s existing
M&C demand levels of 38,800 room nights recorded in
2013.
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Table 9
Total and Incremental Delegate Spending (In $Millions)
TOTAL DELEGATE SPENDING
Year 1
Year 2
Year 3
Accommodation
$2.27
$2.84
$3.40
F&B
$0.93
$1.17
$1.41
F&B at CC
$1.59
$1.97
$2.34
Space Rentals and Other Services at CC
$0.56
$0.70
$0.82
Retail
$0.94
$1.17
$1.42
Local Transportation
$0.29
$0.36
$0.43
Recreation & Entertainment
$0.18
$0.23
$0.27
$6.76
$8.44
$10.09
TOTAL INCREMENTAL DELEGATE SPEND
Accommodation
$1.45
$1.80
$2.20
F&B
$0.61
$0.75
$0.93
F&B at CC
$1.02
$1.26
$1.52
$0.56
$0.70
$0.82
Retail
$0.61
$0.75
$0.93
$0.18
$0.23
$0.28
$0.12
$0.15
$0.18
TOTAL INCREMENTAL DELEGATE SPE
$4.54
$5.64
$6.87
% of Tot al Delegat e Spend
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67%
67%
68%
Year 4
$3.48
$1.45
$2.40
$0.84
$1.45
$0.44
$0.28
$10.34
Year 5
$3.57
$1.48
$2.46
$0.86
$1.49
$0.45
$0.29
$10.60
$2.26
$0.96
$1.55
$0.84
$0.95
$0.29
$0.18
$7.04
$2.32
$0.98
$1.59
$0.86
$0.98
$0.30
$0.19
$7.22
68%
68%
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1.0 INTRODUCTION
1.1
Study Background
Deloitte was initially retained by Canmore Business and Tourism
(“CBT”) in February 2014 to consult with Town representatives,
developers, hoteliers and market specialists in assessing the
potential opportunity to develop a Conference Centre in Canmore,
Alberta.
Based on the stakeholder consultation findings, there was broad
agreement on the potential benefits of a Conference Centre
primarily in boosting hotel occupancies in Town and increasing
economic activity in the downtown core. In addition, there was
strong support in exploring the feasibility of the Project further,
including in particular, a market assessment to study the potential
opportunity for the Town in more detail. 1
Deloitte in association with PKF Consulting was then retained in
September 2014 to undertake a preliminary feasibility study
comprising of:
1. Phase 1a: A market assessment focused on identifying the
potential type of facility that may be supported in Canmore
given the projected conference market environment; and
1
Canmore Conference Centre – Stakeholder Consultation Final Report,
Deloitte LLP.
Canmore, Alberta
2. Phase 1b: A financial assessment assessing the high-level
feasibility of a potential Conference Centre facility with
respect to expected costs, funding and potential deal
structure options.
1.2
Phase 1a Study Tasks
In meeting the study objectives, the consulting team undertook the
following tasks:
1. Held a conference call with CBT on September 19 2014 to:
Establish direct lines of communication;
Discuss goals, objectives and key deliverables of the
study;
Identify appropriate contacts and resources
necessary to ensure complete examination of issues
and specific relevant data; and
Obtain all relevant background materials.
2. Undertook a field trip of Canmore from October 6 to 8,
2014, including a tour of potential sites for conference
centre development and held one-on-one interviews with
key CBT management staff:
Mr. Andrew Nickerson, President and CEO;
Mr. Larry Gales, VP Business Development; and
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Ms. Rachel
Associate.
Ludwig,
Business
Development
Michael Roycroft, Area Manager, Canmore Nordic
Centre Provincial Park
Brian Slot, Travel Alberta
3. Held one on one meetings and /or telephone interviews
with Canmore hotel partners including:
5. Examined Canmore’s tourism infrastructure, with emphasis
on the current and future supply demand dynamics of the
accommodation sector.
Ms. Sarah Henshaw, GM, Coast Hotel and
Conference Centre
Ms. Marie-Eve Jackson, Director of Sales and
Marketing, Coast Hotel and Conference Centre
Mr. Jim Muir, President, Clique Hotels and Resorts
Mr. Edward Keenan, VP – Resorts, Clique Hotels and
Resorts
Mr. Ian Thorley, Director of Sales and Marketing,
Bellstar Hotels & Resorts
Mr. Darryll Hunter, Area GM, Bellstar Hotels &
Resorts
Ms Teresa Pacheco, GM, Holiday Inn Canmore
Ms Barbara Scott, Area GM, Mystic Springs Chalets &
Hot Pools, Silver Creek Lodge, The Georgetown Inn
Mr. Glenn Iles, Director of Sales and Marketing,
Delta Lodge at Kananaskis
6. Reviewed Meeting & Conference (“M&C”) leads for the
Canmore area.
7. Undertook primary research and analysis of the competitive
environment including purpose-built Convention Centre
supply in Western Canada with the focus on Tier 2 venues
in Alberta and Tier 3 competitive venues 2 in British
Columbia and full service competitive hotels in Kananaskis,
Banff, Lake Louise, Jasper and Red Deer.
8. Analyzed the accommodation demand and supply
performance of Canmore hotels and the competitive market
from 2009-2013, including the number of room nights and
events by type generated by M&C in 2013.
9. Distributed an on-line survey to 360 national and provincial
meeting planners, with a 16% response rate of 58
completed surveys.
4. Held one on one meetings and / or telephone interviews
with other stakeholders including:
Mr. Jim Younker, Facilities Manager, Town of
Canmore
Mr. Frank Kernick, Local Developer, Spring Creek
Mr Vijay Domingo, VP Spring Creek
Ms. Joanne Richardson, Sales Manager, Cornerstone
Theatre & Restaurant
Canmore, Alberta
2
Tier 1 Convention Centres are defined as those with greater than
250,000 square feet of rentable space; Tier 2 Conventions Centres
offer between 50,000 to 250,000 square feet of meeting space; and Tier
3 Centres offer less than 50,000 square feet of meeting space.
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10. Identified three potential development options for a
proposed Conference Centre in Canmore including: a
purpose-built
Conference
Centre;
a
hotel
with
meeting/conference facilities; and a Multi-Use Development.
11. Recommended and assessed the preferred development
option for the proposed Canmore Conference Centre.
12. Prepared utilization projections for a proposed Conference
Centre for Conventions; Trade Shows; Consumer Shows;
Meetings; Food and Beverage; and Other events over the
first 3 years of operation.
13. Documented Phase 1a study research, findings and
conclusions.
1.3
assessment and utilizations projections over the facility’s
first 5 years of operation;
4. Conducted a financial analysis for the proposed Conference
Centre, based on the 5-year operating projections,
including: funding requirements and potential options;
5. Preparation of economic impact estimates for the proposed
Conference Centre resulting from construction, on-going
income and employment associated with operations and
visitor expenditures; and
6. Documented Phase 1a and Phase 1b study findings in the
subject report.
Phase 1b Study Tasks
The following tasks were undertaken to assess the financial and
market feasibility of the proposed Canmore Conference Centre:
1. Identified and evaluated potential site alternatives for a
proposed Conference Centre in Canmore;
2. Developed preliminary order of magnitude capital costs for
the proposed Canmore Conference Centre based on the
preferred development program and comparable conference
centre market benchmark estimates;
3. Prepared operating projections for the proposed Canmore
Conference Centre based on the Phase 1a market
Canmore, Alberta
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PHASE 1A:
MARKET ASSESSMENT
Canmore, Alberta
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2.0 CURRENT SITUATIONAL ANALYSIS
2.1
Introduction
The following section provides an overview of the Town of
Canmore and its strategic goals related to becoming a meetings
and convention destination. A description of Canmore’s current
inventory of meeting facilities and related M&C demand has also
been provided.
2.2
Town of Canmore Economic Profile
The Town of Canmore is located in the Province of Alberta, and is
situated in the Canadian Rocky Mountains sitting at over 1,300
metres above sea level.
The Town is approximately 100
kilometres west of Calgary’s City Centre directly on the Trans
Canada Highway. Originally founded as a mining town, Canmore
has grown considerably since the 1988 Winter Olympics in
Calgary.
The Town has experienced rapid population growth over the past
several years. The 2011 Canmore Census indicates that there are
12,317 permanent residents in the Town, a 0.7% increase from the
previous year. According to the Canmore Economic Development
Authority, population growth in recent years has been driven by a
number of factors including: the approval and development of a
number of large residential subdivisions; the constraints placed on
growth within the nearby Town of Banff; and a broad and high
level of interest in establishing residences in Canmore. Restrictions
Canmore, Alberta
on residential development within the Canadian Rocky National
Parks have benefited Canmore, however the Town has recently
imposed its own development restrictions to maintain the small
town atmosphere and prevent “Whistler-like” sprawl. As shown in
Table 2-1, Canmore has been experiencing modest permanent
population growth since 2005 while the non-permanent population
has been increasing significantly each year.
Table 2-1
Town of Canmore Population
2006 to 2011
2006
2008
2009
Permanent
11,599
12,205
12,226
Non-Permanent
4,818
5,567
5,744
Total
16,417
17,772
17,970
Note: Non Census in 2007 or 2010
2011
12,317
5,982
18,299
Source: Town of Canmore
Historically, mining was Canmore’s primary industry, however in
recent years the basis of the economy has shifted, placing tourism
in the spotlight. The emphasis on tourism grew from international
recognition gained during the aforementioned 1988 Olympic Winter
Games, when the Nordic Skiing events were held within the
Township of Canmore. Canmore has been considered to be the
“growth” community in tourism for Alberta. Currently, the tourism
sector in Canmore is the Town’s primary economic driver,
employing approximately 20% of the population. The Town of
Banff also plays a significant role within Canmore, with
approximately 38% of Canmore’s permanent population labour
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force employed in other communities, including 11% employed in
Banff.
Building permit values within the Town of Canmore jumped sharply
in 2011, reaching more than $57 Million, largely due to the
construction of the community recreation facility -- Elevation Place,
and then dropped to a low of $27 million in 2012. In 2013, there
was a rebound in building permits related to the largest amount of
residential construction since 2008, reaching a total of $73 Million.
An extended period of economic growth in Alberta, and demand for
mountain recreational properties fuelled rising real estate values in
Canmore over the past ten years. Toward the end of 2008, the
global economic downturn suddenly cooled real estate markets,
resulting in a slowdown of sales volumes in Canmore and some
moderation in prices. Prices for vacation ownership properties prior
to 2008 were upwards of $700 per square foot, which can now be
purchased from between $250 to $400 per square foot.
The $39 million Canmore Multiplex known as Elevation Place
opened in 2013. The 77,000 square foot facility includes an
aquatics centre, a rock climbing centre, a library and multipurpose
community spaces. The Town of Canmore has also established
redevelopment plans for the Bow Valley Trail area to create a more
urban street where there is more interaction between the buildings
and people. The plan will also address land uses, pedestrian and
vehicular movement, parking and recreational, educational and
community facilities, among other issues.
Table 2-2
Town of Canmore Construction Value of Building Permits
2008 to 2013
2008
2009
2010
2011
2012
Residential
$85,411
$25,859
$28,357
$21,882
$25,311
Commercial
$14,118
$2,153
$9,342
$2,911
$1,271
Insitutional/Gov't
$902
$2,251
$578
$31,248
$451
Industrial
$850
$3,029
$20
$1,930
$300
Total
$101,281
$33,292
$38,297
$57,971
$27,333
-67%
15%
51%
-53%
% Change
2013
$59,987
$9,078
$4,481
$134
$73,680
170%
Source: Town of Canmore
2.3
Canmore Business and Tourism (CBT)
In mid 2011, the Canmore Economic Development Authority
integrated operations with Touism Canmore Kananaskis to form
Canmore Business and Tourism (CBT).
CBT’s Vision is the lead organization in securing a vibrant
economic future for Canmore Kananaskis. Its Mission is to
promote Canmore Kananaskis as a place to live, work, and play
through recognition, development and delivery of business and
tourism opportunities that are in alignment with the established
community branding. Tourism Canmore Kananaskis is the
operating name used to market the Canmore Kananaskis brand to
Alberta, Canada and the globe as an authentic and personal
mountain lifestyle experience.
As part of its Strategic Plan 2013-2015, CBT has identified the
following Strategic Goals with respect to increasing meetings and
group events:
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CBT Strategic M&C Goals
Canmore Kananaskis is Canada’s
mountain destination for meetings
and group events
Economically viable development
projects aligning with brand are
realized.
2013 Target
14,000 potential room nights
generated by MCIT leads
distributed by CBT to membership
Development Plan for a self-funding
self-sustaining Convention Centre
approved by CBT board and
presented to Town Council.
Table 2-3 provides a summary of M&C leads generated by Tourism
Canmore Kananaskis (TCK) in 2013 and year-to-date November
2014 in terms of total room nights. As shown, total room nights
generated through TCK have increased by 17% in 2014. As of
November 2014, TCK remains about 5,000 room nights short of its
2014 Goal.
Source: CBT Strategic Plan 2013-2015
The Town and CBT’s vision calls for the development of an
integrated, multi-use conference centre, either located in downtown
Canmore or the peripheries of the Town, which could potentially
become a world-class facility and an iconic landmark bringing
significant value to the community, residents, businesses and
visitors. A key consideration is to ensure the “right” model for the
Conference Centre is developed such that it fits within the longterm vision of the Town’s broader economic development
initiatives. 3
To this end, the more cohesive organization has already expanded
its team, including new staff to focus on developing new business
for meetings and conferences; and undertaking the subject market
assessment for a new Conference Centre. Of CBT’s $1.5 Million
annual budget, approximately $100,000 is currently dedicated to
MC&IT, inclusive of payroll and marketing initiatives.
TCK
accommodation partners provide an estimated $1 Million towards
CBT’s annual budget through a 3% destination marketing fee.
Table 2-3
2013-2014 Leads Generated by TCK By
Month (Room Nights)
Month
Room Nights
Pace
2014
2013
January
February
March
April
May
June
July
August
September
October
November
December
1,586
3,955
2,743
1,600
1,372
2,477
711
120
3,715
1,460
20
7,098
2,460
50
629
440
580
0
1,079
1,260
587
678
2,067
-78%
61%
5386%
154%
212%
327%
100%
-89%
195%
149%
-97%
Total YTD
19,759
16,928
17%
Goal 2014
25,000
Source: Tourism Canmore Kananaskis
Canmore Conference Centre – Stakeholder Consultation Final Report,
Deloitte LLP and affiliated entities, April 2014
3
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2013
Room
Total
Nights
Events
Association Conference
Corporate Meeting
Incentive Event
Social Event (F&B)
Sporting Event
Tour & Travel Event
Trade Show
Wedding
TOTAL
3
11
0
0
2
0
0
4
20
1,059
909
0
0
600
0
0
455
3,023
Table 2-4
Total Room Nights Generated by TCK by Event Type - 2013-2018
2014
2015
2016
2017
Total
Total
Room
Total
Room
Total
Room
Room
Events
Events
Nights
Events
Nights
Events
Nights
Nights
16
9
2
1
4
3
1
4
40
9,860
1,866
79
20
1,212
2,420
200
180
15,837
4
5
1
2
1
2
1
16
32
2,335
370
36
105
1,600
530
200
971
6,147
8
2
0
0
1
0
0
0
11
7,671
390
0
0
1,600
0
0
0
9,661
1
0
0
1
0
0
0
0
2
732
0
0
80
0
0
0
0
812
2018
Total
Room
Events
Nights
2
0
0
0
0
0
0
0
2
1,437
0
0
0
0
0
0
0
1,437
Total - 2013-18
Total
Room
Events
Nights
34
27
3
4
8
5
2
24
107
23,094
3,535
115
205
5,012
2,950
400
1,606
36,917
Source: Tourism Business & Tourism (leads generated in 2013 and 2014)
Table 2-4 summarizes the frequency of M&C leads generated
through TCK in 2013 and year-to-date November 2014 by type of
event, according to the year that the event is expected to take
place. As shown, an estimated 107 events and 37,000 room
nights have been generated for the 6 year period. Of these, 40
events and 15,840 room nights were sourced for 2014.
Association Conferences and Conventions yielded the highest
number of room nights at 23,100 over the 6 years, and 34 events.
While TCK forwards each of the leads generated to its hotel
partners, currently there is no mechanism in place to track
whether or not the hotels are able to secure any of these events.
Based on conversations with several of Canmore’s hotel partners,
they estimate that 80% of their meeting and conference business
is generated internally, with 20% provided through TCK generated
leads.
Canmore, Alberta
2.4
Canmore’s Meeting and Convention Venues
2.4.1 Hotel Inventory
As summarized in Table 2-5, the Canmore accommodation market
currently consists of 18 properties offering an estimated 1,628
rooms. It should be noted that the number of rooms identified for
the vacation ownership properties in the market is based on the
number of units in the rental pool and not on the total number of
units at the property.
The Coast Hotel & Conference Centre provides the largest meeting
venue in the market at just under 9,000 square feet of function
space. A further 6 hotels provide from 2,000 to 4,500 square feet
of meeting space, while 9 hotels offer less than 1,000 square feet
of meeting space and 2 hotels do not offer any meeting space.
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Canmore hotels which offer in excess of 2,000 square feet of
meeting space will compete with the proposed Conference Centre
for social and corporate events such as banquets, holiday parties,
and corporate meetings and training sessions from within the
region. They will also compete for small to mid-sized corporate,
association, and convention business at the local, provincial and
national level.
Table 2-5
Canmore Competitive Hotel Facilities
Number of
Hotel
Total Rentable
Ballroom
rooms
Space (Sq.Ft.)
Space
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Coast Hotel & Conference Centre
Quality Resort Chateau Canmore
Blackstone Mountain Lodge
Ramada Inn & suites
Holiday Inn
Mystic Springs Chalets & Hot Pools
Falcon Crest Lodge
Windtower Lodge & Suites
Best Western Pocatara
Lodges at Canmore Crossing
Fire Mountain Lodge
Econolodge
Copperstone Resort
Silver Creek Lodge
Grand Rockies Resort
Stone Ridges Resort
Solara Resort & Space
Georgetown inn
Total
164
93
124
189
99
44
72
102
82
64
18
60
59
55
140
87
156
20
1,628
8,789
3,133
950
3,325
3,675
670
730
1,000
1,913
775
150
300
2,625
1,100
4,530
810
34,475
5,989
2,800
Meeting
Space
2,800
3,133
950
525
3,875
670
730
1,000
1,913
775
150
300
2,625
1,100
4,530
810
Number of
Meeting Functional
Rooms
Capacity
10
5
1
4
4
1
2
1
3
1
1
1
3
1
4
2
44
400
172
60
200
140
40
40
70
110
82
12
18
120
55
200
40
Source: PKF Consulting Inc. Research
Canmore, Alberta
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2.4.2 Other Unique Venues
As identified in Table 2-6, Canmore also offers a number of other
venues that provide meeting and event space which will compete
with the proposed Conference Centre for smaller group business.
These venues are attractive to local groups hosting social or
business-related meetings and events and weddings/social
functions.
The Cornerstone Theatre and Silvertip Golf Course can
accommodate banquet and meeting functions of up to 250 to 280
guests, while the Nordic Centre offers 9 meeting rooms, and can
handle up to 130 guests for a banquet/social event. Elevation
Place offers one meeting room for up to 53 persons.
Table 2-6
Other Unique Meeting Venues, Canmore, Alberta
Maximum
Total Rentable
Largest Room Banquet
Space ( Sq.
Capacity
Ft.)
Nordic Centre
2,165
2,165
130
Silvertip Golf Course
3,344
3,344
250
Cornerstone Theatre
6,000
6,000
280
Elevation Place
764
764
53
Given Canmore’s current hotel room inventory and meeting space
capacity, the Town is largely restricted to hosting groups of less
than 200 delegates/attendees in size from a functional capacity
perspective.
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2.5
The most recent additions to the market include the Copperstone
Resort, Stone Ridges Resort, Grand Rockies Resort and Solara
Resort & Spa, all of which opened in Canmore over the 2009 to
2011 period.
Canmore’s Historic Accommodation Demand
2.5.1 Historic Supply and Demand
As shown in Table 2-7, accommodation demand in Canmore has
increased by approximately 141,000 occupied room nights over
the past 6 years (2009 to 2014). Furthermore, Canmore’s market
occupancy has ranged from 39% in 2009 to a high of 54% in
2014. In 2010, supply increased by approximately 17% and was
absorbed with a 16% increase in occupied room nights. In 2011,
supply increased by a further 11%, while demand increased by
25%, contributing to the higher occupancy rates.
Demand levels continued to improve by over 8% in 2012, before
witnessing a -1% decline in 2013, when the Alberta floods
negatively impacted tourism demand at the beginning of the
summer season. Year-end 2014 results indicate a strong rebound
of 13% in occupied room nights over the same period in 2013,
alongside a 2% increase in available room nights.
Table 2-7
Canmore, Alberta
HISTORIC MARKET PERFORMANCE
TOTAL COMPETITIVE MARKET
Rooms
Annual Occupancy
Average Daily Rate
RevPar
Available Room Nights
Occupied Room Nights
Room Revenue
MARKET GROWTH
2009
2010
2011
2012
2013
2014
1,296
39.0%
$118.27
$46.09
473,040
184,360
$21,803,760
1,519
38.6%
$113.35
$43.70
554,435
213,755
$24,229,423
1,686
43.5%
$118.45
$51.58
615,248
267,905
$31,732,288
1,661
47.8%
$129.03
$61.73
606,265
290,018
$37,421,984
1,628
48.4%
$134.01
$64.91
594,220
287,801
$38,569,289
1,661
53.7%
$143.61
$77.10
606,167
325,435
$46,736,149
2009
2010
2011
2012
2013
2014
na
na
na
na
17.2%
15.9%
-4.2%
-5.2%
11.0%
25.3%
4.5%
18.0%
-1.5%
8.3%
8.9%
19.7%
-2.0%
-0.8%
3.9%
5.2%
2.0%
13.1%
7.2%
18.8%
Available Rooms
Average Daily Rate
RevPAR
Source: PKF Consulting Inc.
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Table 2-8
Market Segmentation
Canmore Accommodation Market - 2013
2.5.2 Seasonality of Demand
Figure 2-1 provides a summary of monthly occupancy levels
achieved in the Canmore market in 2013. While the overall
market achieved an annual occupancy of 48% in 2013, occupancy
levels range from a low of 29% in January to a peak of 82% in
August. For 8 months of the year, Canmore’s room inventory
achieved less than 60% occupancy in 2013. Demand levels peak
during the summer months and on weekends, leaving capacity to
compete for meetings and conference demand during the offseason months and mid-week periods.
2.5.3 Market Segmentation
The market segmentation for Canmore’s accommodation market
in 2013 is presented in Table 2-8.
Room Nights
Occupied
Market Segment
Corporate/Commercial
Meeting/Conference/Group
Leisure
Gov't/Other
Total Market
% Demand
16,958
5.9%
38,779
221,344
10,721
287,801
13.5%
76.9%
3.7%
100.0%
The meeting/conference/group segment accounted for 13.5% of
all room nights generated in the Canmore market in 2013. This
segment includes rooms demand generated for the purposes of
attending meetings/seminars/conferences internally within area
Figure 2-1
CANMORE MONTHLY OCCUPANCY % - 2013
100.0%
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
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hotels, with much of the demand from self-contained meetings at
hotels offering greater than 2,000 square feet of meeting space.
Group demand also includes SMERF-related business (Social,
Military, Educational, Religious and Fraternal event-based
banquets), such as weddings.
Canmore’s accommodation market currently attracts 1 room night
of M&C demand (38,800 room nights) for every square foot of
meeting space provided in Canmore’s hotel inventory (34,675
square feet).
2.6
Canmore’s Meeting & Conference Demand
2.6.1 M&C Room Nights by Event Type
Of the estimated 38,800 M&C room nights generated by
Canmore’s accommodation market in 2013, approximately 43% of
demand was generated by smaller Corporate groups of less than
100 delegates, with a further 37% generated by SMERF events,
and 20% by National and Regional Associations (Table 2-9).
National and Regional Association demand, due to the larger size
of these events and the functional capacity restrictions in the
market for self-contained meetings.
2.6.2 Number of M&C Events by Type
Based on interviews with hotel management, PKF has estimated
the number of M&C events hosted by Canmore accommodation
properties in 2013. Factors include M&C room night demand by
type, average guests per room, average length of the event and
the average size of the event. As summarized in Table 2-10, the
Canmore accommodation market hosted an estimated 585 events,
including 286 SMERF-related events; 195 corporate groups and
over 100 national and regional association meetings/conferences.
Table 2-10
Number of M&C Events by Type
Number of
Events
Type of Demand
% Demand
Corporate Groups
195
33%
Table 2-9
Meeting/Convention/Group Demand by Type
Occupied
Room
Nights
Type of Demand
% Demand
Corporate Groups
16,489
43%
National & Regional Ass'n
7,908
20%
2.6.3 Number of Events by Size and Delegates
SMERF Groups
Total M&C Room Nights
The estimated 585 events hosted by Canmore’s accommodation
properties in 2013, attracted approximately 27,340 delegates and
14,382
38,779
37%
100%
SMERF Groups
Total M&C Events
103
286
585
18%
49%
100%
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attendees to the Town. Only 10 events attracted more than 250
delegates, with the average size of events less than 50 delegates.
Table 2-11
National &
Regional
Corporate
SMERF
Assn's
Groups
Groups
Total
Event Size
Less than 250
251-500
501+
Total M&C Events
Avg Event Size
191
4
0
195
8,164
42
101
2
0
103
5,984
58
282
4
0
286
13,195
46
574
10
0
585
27,343
47
2.7
Canmore’s Lost Events Business
In 2013, Canmore hoteliers estimate that they received 18 M&C
related inquiries which they were not able to accommodate,
primarily due to limitations in their function space capacity. This
lost demand equates to an estimated 3,100 delegates/attendees
and 6,200 lost room nights (based on an average 2 night stay).
Table 2-12
Lost Event Business
# Inquiries Per Year
18
Average Event Size
172
Estimated Delegates/Attendees
3,100
Estimated Lost Room Nights
6,200
2.8
Summary
Of the Town’s current accommodation inventory of 18 properties
offering 1,628 rooms, the Coast Hotel & Conference Centre
provides the largest meeting venue in the market at just under
9,000 square feet of function space. A further 6 hotels provide
from 2,000 to 4,500 square feet of meeting space, with the
remainder offering minimal meeting space. As such the Town is
largely restricted to hosting groups of less than 200
delegates/attendees in size. In 2013, the Town hosted an
estimated 585 events attracting over 27,000 delegates/attendees.
Of these events, only 10 attracted more than 250 delegates, with
the majority being less than 50 delegates in size. Canmore’s
event demand generated an estimated 38,800 occupied room
nights for the Town’s accommodation sector, equating to 13.5%
of overall demand.
National and Regional Association conferences, largely due to the
larger size of these events and the functional capacity restrictions
in the market for self-contained meetings.
In 2013, Canmore hoteliers estimate that they received 18 M&C
related inquiries which they were not able to accommodate
because of insufficient meeting space, which equates to 6,200 lost
room nights.
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3.0 COMPETITIVE M&C SUPPLY
ANALYSIS
3.1
Introduction
A new Canmore Conference Centre would compete for association
and corporate meetings/conventions with other hotels in the
Alberta Rockies and Red Deer as well as locally with Canmore full
service hotels, and unique venues such as the Nordic Centre,
Silvertip Golf Course and Cornerstone Theatre. This section also
examines the competitive Convention Centre supply within Alberta
and B.C. for which the proposed Canmore Conference Centre will
largely compete for Convention and Trade Show demand.
Combined, the 9 competitive resorts and hotels in Alberta offer a
total of 266,000 square feet of meeting space, ranging in size
from 10,000 square feet at the Red Deer Lodge to 58,000 square
feet at Fairmont Banff Springs.
Tables 3-1 and 3-2 provide a summary of the meeting, ballroom
and exhibition space provided within the competitive hotel market.
With the exception of the Sheraton Red Deer which provides
26,000 square feet of exhibition space, the competitive hotels and
resorts typically provide only meeting and ballroom space.
The identification of the key components of these facilities and
destinations will allow comparisons to be drawn between a
proposed Conference venue for Canmore and its primary
competitors.
3.2 Alberta Rockies and Red Deer Convention
Hotels
The proposed Canmore Conference Centre will compete for
convention and meetings demand with resorts located in the
Alberta Rockies and the 2 full service hotels in Red Deer. Given
Red Deer’s location at the centre of the province and recent
renovations and branding of the Sheraton hotel, Red Deer has
been successful in attracting provincial meetings demand.
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Table 3-1
Alberta Rockies Convention Hotel / Resort Facilities
Number of
Total Rentable Ex hibition
Hotel Rooms Space ( Sq. Ft.)
Space
Fairmont Banff Springs
Fairmont Chateau Lake Lou
Rimrock Resort Hotel
Banff Park Lodge
Banff Centre
Jasper Park Lodge
Total
768
554
334
211
412
433
441
3,153
57,875
27,232
12,668
20,421
19,985
49,957
26,194
214,332
-
Ballroom
Space
M eeting
Space
20,008
14,856
6,136
5,994
8,716
18,452
74,162
37,867
12,376
6,532
14,427
11,269
49,957
7,742
140,170
Number of
Meeting
Rooms
23
17
13
12
15
55
13
148
Functional
Capacity
980
850
600
550
500
350
600
Number of
Meeting
Rooms
14
11
25
Functional
Capacity
400
120
Table 3-2
Red Deer Convention Hotel Facilities
Number of
Total Rentable Ex hibition
Hotel Rooms Space ( Sq. Ft.)
Space
Sheraton Red Deer
Red Deer Lodge
Total
241
233
474
42,450
9,495
51,945
Canmore, Alberta
25,669
-
Ballroom
Space
M eeting
Space
0
16,781
9,495
26,276
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3.3
Convention/Conference Centres
3.3.1 Existing Tier 2 & 3 Western Canada Competitive
Supply
Table 3-3 provides a summary of the meeting, ballroom and
exhibition space provided within the Western Canada competitive
landscape. Of the 9 Convention Centres in Alberta and B.C., 75%
of the rentable function space is provided within 3 Tier 2 Centres
located in Calgary and Edmonton, with the remaining 25%
provided within 6 Tier 3 Convention Centres in British Columbia.
The size of the Convention/Conference Centres range from 8,400
square feet provided at Kimberley Conference Centre, which is
approximately the same size as that provided by the Coast Hotel
and Conference Centre, up to 270,000 square feet provided by the
BMO Centre at Calgary Stampede.
Calgary is proposing an expansion to the Telus Convention
Centre, which calls for an estimated 260,000 square feet.
BMO Centre at Calgary Stampede is also proposing an
expansion in order to provide from 375,000 to 500,000
square feet of total rentable square feet.
Whistler Conference Centre is currently undertaking a
market feasibility study to assess a possible expansion of
its ballroom facilities.
Although there have been no formal announcements to date, for
the purposes of this study, we have projected that only one
facility in Calgary will expand (375,000 square feet) and Whistler
will increase its ballroom space by 15,000 square feet.
3.3.2 Proposed Expansions to Tier 2 & 3 Competitive
Supply
A number of cities/destinations are planning expansions of their
existing facilities including:
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Table 3-3
COMPETITIVE TIER 2 AND 3 CONVENTION CENTRES - WESTERN CANADA
Location
BMO Calgary Stampede
Calgary Telus Centre
Shaw Convention Centre
Victoria Convention Centre
Vancouver Island Convention Centre
Penticton Conference Centre
Kimberley Conference Centre
Whistler Convention Centre
Prince George Convention Centre
Total
3.4
Calgary, Alta
Calgary, Alta
Edmonton, Alta
Victoria, BC
Nanimo, BC
Penticton, BC
Kimberly, BC
Whistler, BC
Prince George, BC
Total Rentable
Space ( Sq. Ft.)
Ballroom
Space
Meeting
Space
Number of
Meeting Rooms
268,954
98,371
133,401
49,618
22,255
36,665
8,372
26,380
22,800
666,816
-19,234
-25,000
13,697
28,731
5,580
16,500
-108,742
18,954
32,091
37,652
9,929
8,558
7,934
2,792
9,880
4,800
132,590
7
30
27
15
20
14
8
15
8
144
Summary
A proposed Canmore Conference Centre’s primary competitive
supply would be comprised of 40 venues, including existing
Canmore hotels, resorts and other venues, as well as 9 hotels and
resorts in the Alberta Rockies and Red Deer hotel and 9 Tier 2 and
3 Convention/Conference Centres in Alberta and B.C.
Canmore, Alberta
Januaryfor:
6, 2016
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Maximum
Banquet
Capacity
5,000
2,100
1,800
1,250
685
684
279
825
1,000
Table 3-4
Canmore's Total Competitive Meetings & Convention Supply
Rentable
Market
# Venues Square Feet
Canmore Hotels/Resorts
18
34,675
Canmore Other Unique Venues
4
12,273
Alberta Resorts/Hotels
9
266,277
Alberta and B.C. Convention Centres
9
666,816
Total
40
980,041
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4.0 COMPETITIVE ALBERTA
HOTEL/RESORT M&C DEMAND
ANALYSIS
4.1 Introduction
PKF collected historic performance data from the competitive hotel
and resort market in Alberta from 2009-2013, and event data for
2013. Event data was assembled through a number of sources
including: PKF’s internal Trends in the Hotel Industry database,
interviews with General Managers and Sales & Marketing Directors
at competitive hotels and resorts, and PKF internal and secondary
research.
4.2 Competitive Alberta Hotel/Resort Market
Performance
A summary of the 27 competitive hotel properties is provided in
Table 4-1, while the historic performance of these 9 primary and
18 secondary competitive hotel/resort properties has been
provided in Table 4-2.
As shown, the competitive Alberta hotel and resort market offered
a total of 5,255 guest rooms as of year-end 2013.
The
competitive market has operated in the low to mid 50%
occupancy range, with occupancy levels improving over the past 2
years largely due to improved economic conditions. Based on the
estimated year-end 2014 performance, the market enjoyed a 6%
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increase in demand levels over 2013, which at 1% supply growth,
equates to a 3 percentage point increase in occupancy levels
(58%). The competitive market has also maintained a strong
Average Daily Rate (ADR), ranging from $202 in 2009 to an
estimated $226 in 2014, an increase of 5% over 2013 results.
Table 4-1
Competitive Alberta Hotel/Resort Market Supply, 2013
Convention Hotels & Resorts
Rooms
Location
412 Kananaskis
Fairmont Banff Springs
768 Banff
Rimrock Resort Hotel
334 Banff
Banff Park Lodge
211 Banff
Banff Centre
433 Banff
Fairmont Chateau Lake Louise
554 Lake Louise
Jasper Park Lodge
441 Jasper
Sheraton Red Deer
241 Red Deer
Red Deer Lodge
233 Red Deer
Subtotal
3,627
Canmore Hotels with Limited
Meeting Space
Rooms
Location
Coast Hotel & Conference Centre
164 Canmore
Quality Resort Chateau Canmore
93 Canmore
Blackstone Mountain Lodge
124 Canmore
Ramada Inn and Suites
189 Canmore
Holiday Inn
99 Canmore
Mystic Springs Chalets and Hot Pools
44 Canmore
Falcon Crest Lodge
72 Canmore
Windtower Lodge & Suites
102 Canmore
Lodges at Canmore
64 Canmore
Fire Mountain Lodge
17 Canmore
Best Western Pocatara
83 Canmore
Econolodge
60 Canmore
Copperstone Resort
59 Canmore
Silver Creek Lodge
55 Canmore
Grand Rockies Rsort
140 Canmore
Stone Ridges Resort
87 Canmore
Solara Resort & Spa
156 Canmore
Georgetown Inn
20 Canmore
Subtotal
1,628
TOTAL
5,255
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TOTAL COMPETITIVE MARKET
Rooms
Annual Occupancy
Average Daily Rate
RevPar
Available Room Nights
Room Revenue
MARKET GROWTH
Available Rooms
Average Daily Rate
RevPAR
Table 4-2
CANMORE, KANANASKIS, BANFF, JASPER, RED DEER, ALBERTA
HISTORIC ACCOMMODATION MARKET PERFORMANCE
2009
2010
2011
2012
2013
2014
4,923
50.4%
$202.52
$102.12
1,796,895
906,104
$183,503,301
5,146
49.4%
$200.91
$99.26
1,878,290
927,985
$186,437,722
5,313
51.7%
$198.36
$102.64
1,939,103
1,003,422
$199,037,799
5,288
54.3%
$207.68
$112.70
1,930,120
1,047,381
$217,524,451
5,255
55.2%
$214.99
$118.73
1,918,075
1,059,269
$227,729,047
5,288
58.1%
$226.02
$131.37
1,930,022
1,121,763
$253,539,216
2009
2010
2011
2012
2013
2014
na
na
na
na
4.5%
2.4%
-0.8%
-2.8%
3.2%
8.1%
-1.3%
3.4%
-0.5%
4.4%
4.7%
9.8%
-0.6%
1.1%
3.5%
5.3%
0.6%
5.9%
5.1%
10.6%
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4.3 Competitive Alberta Hotel/Resort Market
Segmentation
The 2013 market segmentation for the competitive Alberta
hotel/resort market inclusive of Canmore is presented in Table 43.
Table 4-3
Market Segmentation
Market Segment
Corporate/Commercial
%
Demand
33,674
3.2%
Meeting/Conference/Group
328,168
31.0%
Leisure
672,685
63.5%
24,741
2.3%
1,059,268
100.0%
Gov't/Other
Total Market
Table 4-4
Ratio of M&C Demand to Rentable Sq.Ft. of Meeting Space
Rentable M&C Demand
Sq.Ft.
(ORN)
Ratio
Market
Canmore
34,675
38,778
1.1
Alberta Resorts/Red Deer 266,277
289,390
1.1
Total Market
300,952
328,168
1.1
Competitive Alberta Hotel/Resort Market - 2013
Room
Nights
Occupied
square foot of meeting space provided in the overall inventory
(301,000 square feet).
As shown, the Meeting/Convention/Group demand segment
accounted for an estimated 31% of the competitive market
demand in 2013, or approximately, 328,000 occupied room nights.
This segment accounts for rooms demand generated for the
purpose of attending meetings, conventions and social group
functions internally within hotels and resorts that offer public
assembly facilities.
4.4
Alberta Hotels / Resorts M&C Demand
4.4.1 M&C Room Nights by Event Type
Of the estimated 328,000 M&C room nights generated by Alberta’s
hotel and resort competitive market in 2013, approximately 39%
of demand was generated by smaller Corporate groups of less
than 100 delegates, with a further 32% generated by SMERF
events, 28% by International, National and Regional Associations
and less than 2% by Incentive groups and Government meetings
(Table 4-5).
Similar to Canmore’s accommodation market, the overall Alberta
Resort/Hotel competitive market currently attracts slightly over 1
room night of M&C demand (328,000 room nights) for every
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Table 4-5
Meeting/Convention/Group Demand by Type
Occupied
Room
Nights
Type of Demand
% Demand
Corporate Groups
126,841
39%
91,873
28%
SMERF Groups
Incentive / Gov't
103,814
5,641
328,168
32%
2%
100%
Table 4-6
Number of M&C Events by Type
Number of
Events
Type of Demand
% Demand
Corporate Groups
763
36%
SMERF Groups
Incentive / Gov't
298
1,015
23
2,098
14%
48%
1%
100%
4.4.2 Number of M&C Events by Type
4.4.3 Number of Events by Size and Delegates
Based on interviews with hotel and resort management, PKF has
estimated the number of M&C events hosted by the competitive
Alberta hotels and resorts in 2013. Factors include M&C room
night demand by type, average guests per room, average length
of the event and the average size of the event. As summarized in
Table 4-6, the competitive market inclusive of Canmore hosted an
estimated 2,100 events, including 1,015 SMERF-related events;
763 corporate groups, an estimated 298 international, national
and regional association meetings/conferences and 23 incentive
groups and government-related meetings.
The estimated 2,100 events hosted by hotels and resorts in the
competitive market in 2013, attracted approximately 221,600
delegates and attendees to Kananaskis, Canmore, Banff, Lake
Louise, Jasper and Red Deer (Table 4-7). An estimated 9-in-10 of
the events held in the market attracted less than 250 delegates,
with 1-in-every 10 events attracting events of up to 500
delegates. Less than 2% of the market is derived from incentive
and government groups.
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Table 4-7
Corporate
SMERF
Incentive/
Meetings
Groups
Gov't
Conventions
Event Size
Less than 250
235
672
941
23
251-500
142
0
50
0
501 - 1,000
11
0
24
0
Total M&C Events
388
672
1,015
23
82,720
34,876
102,021
1,975
Avg Event Size
213
52
101
88
Total
1,871
192
35
2,098
221,593
106
4.5
Summary
Inclusive of Canmore’s accommodation sector, the competitive
Alberta Resorts and Hotels offer 5,255 guest rooms and provide
301,000 square feet of meeting space. In 2013, the Meetings and
Convention segment generated 328,000 room nights, representing
31% of overall demand.
This level of overnight demand
translates to an estimated 2,100 events attracting over 221,600
delegates/attendees. Of these events, 227 attracted more than
250 delegates (11%), with 1,870 events (89%) being less than
250 delegates in size.
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5.0 COMPETITIVE CONVENTION
CENTRE DEMAND ANALYSIS
5.1
Introduction
PKF also collected 2012 and 2013 historic event data from the
competitive Tier 2 and 3 Convention Centres in Alberta and British
Columbia. Event data was assembled through a number of
sources including: interviews with Convention Centre operators,
Convention Centre and DMO Annual Reports, and PKF internal and
secondary research.
5.2 Competitive Convention Centre Market
Segmentation
The proposed Canmore Conference Centre will compete against
other Tier 2 and 3 Conventions Centres in Western Canada for
Convention demand at the national and international level, with
the majority of Meetings and Food & Beverage demand derived
from the local and regional hotel and resort market.
For the purposes of the subject Market Assessment, the various
types of Convention Centre demand has been stratified into 7
segments as summarized in Table 5-1, with PKF’s market analysis
undertaken at both the national and local level.
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Table 5-1
Competitive Convention Centre Demand Analysis
Convention Centre Demand
PKF Competitive
Segmentation
Analysis
1.
Conventions
Provincial/Regional
Provincial/Regional
National Level:
Tier 2 and 3
National
Convention Centres in
US/International
Alberta and B.C.
2.
Trade Shows
3.
Consumer Shows
4.
Meetings & Conferences
Local/Regional Level:
Canmore, Alberta
5.
Food & Beverage – Social Events
Rockies, Red Deer
6.
Other Events
Market
5.3
Conventions
5.3.1 Types of Convention Demand
Convention demand includes:
Canadian and provincial
associations, international associations, US associations; corporate
planners, and the incentive groups and 3rd party planners which
include site selection agencies such as Helms Briscoe, Experient,
Meetings Direct, etc. Association hosted events provide the largest
share of business for Convention Centres.
Canadian
associations
comprise
the
majority
of
Convention/Conference demand amongst the Tier 2 and 3
competitive supply. These associations tend to rotate their
conventions across the country in an east, central, west pattern,
with a requirement for large exhibition space and a number of
breakout rooms. This market tends to book two to four years
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ahead and looks for competitive rates for both hotels and meeting
venues.
Provincial associations tend to be smaller and even more
budget conscious and rotate within the province. Depending on
their charter, these associations may be limited to where they can
meet – for example, only in Calgary.
The international association segment is seen as a long term
investment, with the larger Tier 1 cities attracting the majority of
international demand to Canada (Toronto, Montreal and
Vancouver).
Although international associations are moving
towards internal professional management, the majority of these
associations still work under a volunteer basis or are managed by
3rd party association management firms. Booking windows of
three to six years are typical and competition for this segment is
much greater as these associations must rotate meetings around
the globe to member countries. Furthermore, these organizations
tend to consider destinations which will help increase their profile
and/or cause. International associations look to destinations
willing to not only act as host but help offset the costs associated
with the convention.
Successful international association
destination hosts require local champions or ambassadors to
agree to chair or lobby on behalf of the destination. Canadian
sister association approval must generally be solicited before
moving to an international invitation to host.
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The US association market already tends to do meetings and
conventions in Canada (72% of international Meetings &
Convention demand to Canada in 2012 was generated by the
U.S.). This market is aware of Canada’s Tier 1 cities, but may not
be as familiar with Tier 2 and 3 destinations. The larger
association conventions prefer to work with the local city DMO to
secure this type of business.
In terms of the corporate segment, most large corporations have
a dedicated meetings manager and/or meetings department.
These organizations tend to look for destinations offering mid to
upscale hotel room blocks, state of the art meeting facilities and a
culturally diverse offering. With the global distribution of offices,
these large corporations tend to move their meetings around the
country and/or the world. These meetings tend to have shorter
booking windows of 1 to 2 years and tend to ask for fewer
financial concessions of host cities, in comparison to the
association meetings market.
Within the Convention segment, the subject Canmore
Conference Centre will largely compete for Provincial and
National Association demand and provincial corporate
meetings demand.
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5.3.2 Convention Demand – Competitive Tier 1 and 2
Market Performance 2011-2012
In 2012, the 9 competitive Tier 2 and 3 Convention Centres in
Alberta and B.C. hosted an estimated 248 Conventions, for an
average of 28 Conventions per Centre. In 2013, Convention
demand increased to an estimated 254 conventions,
representing a 2.5% improvement. In 2013, the number of
Conventions at competitive Centres ranged from a low of 10 to
a high of over 50 Conventions.
Table 5-2 provides a summary of Convention demand in the
competitive market by size of event, while Table 5-3
summarizes the origin of delegate demand.
Of the 254 Conventions hosted in the competitive market in
2013, approximately one-third of demand was comprised of
conventions of less than 250 delegates, with just under 40%
being conventions of 251-500 delegates in size; with 16% being
conventions of 501-1,000 delegates and 13% being events of
over 1,000 delegates.
The majority of delegates hosted by the competitive Tier 2 and
3 Canadian Convention Centres in 2012 and 2013 (49 to 63%)
originated from within Alberta and B.C., with 25 to 29%
stemming from the rest of Canada and 12 to 21% from U.S. and
International sources.
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Table 5-2
Competitve Convention Centres
Historic Convention Demand by Size 2012-2013
CONVENTIONS BY SIZE
2012
<250 Delegates
67
251-500 Delegates
92
501-1,000 Delegates
52
1,000+ Delegates
37
TOTAL CONVENTIONS
248
# OF Tier 2 and 3 Competitive Convention Centres
9
Average Per Centre
<250 Delegates
7
251-500 Delegates
10
501-1,000 Delegates
6
1,000+ Delegates
4
AVERAGE CONVENTIONS per Centre
28
2013
81
99
41
33
254
9
9
11
5
4
28
Table 5-3
Historic Convention Demand by Delegate Origin % 2012-2013
CONVENTIONS BY Delgate Origin
2012
2013
Local/Provincial
63%
49%
National
25%
29%
US/International
12%
21%
TOTAL CONVENTIONS
100%
100%
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5.4
Trade and Consumer Shows
5.4.1 Types of Exhibition Demand
The number of Consumer Shows within the competitive market
averaged just slightly fewer than 60. Each Convention Centre
attracted an average of 6 Consumer Shows in 2013, with the
number per Centre ranging from 0 to 25.
Trade Shows are business related events which can be standalone exhibitions or associated with major Conventions. Trade
Table 5-4
Shows form an important component of many association
Competitve
Convention Centres
conferences by providing a revenue source for the event.
Historic
Exhibition
Demand
by Size 2012-2013
Tradeshows require column free exhibition space, meeting
EXHIBITIONS
2012
rooms, AV capabilities and are increasingly incorporating more
Trade Shows
60
digital technology to track trading at the event.
Consumer Shows are public events, where exhibitors display
and sell services and goods to consumers, and typically charge
an admission fee. Attendees come to shop and learn. Standalone exhibitions are often developed and owned by
entrepreneurial exhibition organizers, with a number of the
larger exhibitions hosted in major cities across Canada.
Trade and Consumer Shows can also be combined events, open to
attendees and then open to the public. Trade and Consumer
Shows tend to be held in Tier 1 and 2 Centres, as these facilities
offer dedicated exhibition space and are located in major urban
centres. Demand for Consumer Shows is largely derived from the
local resident population.
5.4.2 Exhibition Demand – Competitive Tier 2 and 3
Market Performance 2012-2013
Between 2012 and 2013, the competitive Convention Centre
market hosted an estimated 160 Trade Shows, for an average of 7
Trade Shows per Centre. The number of Trade Shows ranged
from 0 to a high of 13.
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Consumer Shows
TOTAL EXHIBITIONS
Average Per Centre
Trade Shows
Consumer Shows
AVERAGE EXHBITIONS per Centre
5.5
59
119
9
2013
60
57
117
9
7
7
13
7
6
13
Meetings and Conferences
The competitive Tier 2 and 3 Convention Centres in Alberta and
British Columbia hosted an estimated 1,638 meetings and
conferences in 2013, of which approximately 43% were local
meetings of one day in duration and not requiring overnight
accommodation, and 57% were non-local meetings and
conferences. On average, each Convention Centre attracted 182
to 187 meetings annually over the past 2 years, with the number
of meetings per Centre ranging from a low of 75 to a high of 500
meetings.
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Table 5-5
Historic Meetings & Conference Demand 2012-2013
MEETINGS & CONFERENCES
2012
1,683
TOTAL MEETINGS & CONFERENCES
1,683
9
Average Per Centre
Local
27%
Non Local
73%
AVERAGE MEETINGS per Centre
187
5.6
2013
1,638
1,638
9
Table 5-6
Historic Food & Beverage / Social Demand 2012-2013
FOOD & BEVERAGE
2012
Banquets / Social Events
735
9
Average Per Centre
AVERAGE F&B Functions per Centre
82
43%
57%
182
Food & Beverage / Social Events
Food & Beverage demand at Convention Centres is derived from
banquet functions associated with conventions, conferences and
meetings as well as locally based social events, including
Christmas parties, weddings, galas, fundraising events, etc.
The competitive Tier 2 and 3 Convention Centre market in Alberta
and B.C. catered to an estimated 80 banquets per year, ranging
from 12 to a high of 240 food and beverage events per Centre.
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732
9
81
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5.7
October, international leads were tracking at 23 events, with
6,700 room nights, of which 10 events with close to 3,000 room
nights were booked. Other trends cited by Travel Alberta’s
MC&IT department point to a reduction in the size of Canadian
Association business, with 60% of events in the 250 to 300
delegate. The event length has also been compressed from 2
nights and 3 days, to 2 full days and 1.5 to 2 nights. The US
market and to some degree, the Canadian meeting planner is
also very brand focused in their accommodation and meeting
preferences. With branded properties, the meeting planner
knows the product expectations without having to undertake a
site visit.
Other Events
Other types of demand within the competitive Tier 2 and 3
Convention Centre market include all other events not specifically
described within the former demand segments, including but not
necessarily limited to: concerts, dances, sports-related and other
special events. Based on the competitive market analysis, Tier 2
and 3 Conventions Centres in Alberta and B.C. attracted 278 other
events in 2013, for an average of 31 events per Centre.
Table 5-7
Historic Other Demand 2012-2013
OTHER EVENTS
Other Events
Average Per Centre
AVERAGE Other Events per Centre
5.8
2012
296
9
2013
27
9
33
31
Alberta’s MC&IT Booking Pace
Table 5-8 provides a summary of the lead volume generated
by the MC&IT sector for the province of Alberta as of
October 2014. According to Travel Alberta representatives,
leads from Canada are steady at 40 events representing
24,000 room nights, of which 33 events have been booked
with 12,600 room nights. Leads from the U.S. market are
tracking ahead of recent years, at 178 inquiries, representing
133,000 room nights, of which 70 events with 38,500 room
nights have been booked in the province. As of the end of
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MC&IT
Demand
CANADA
USA
INT'L
Total
Event
Leads
40
178
23
241
Table 5-8
Travel Alberta MC&IT Leads
As at October 27, 2014
Room
Booked
Room
Nights
Events
Nights
23,773
132,767
6,686
163,226
33
70
10
113
12,605
38,467
2,957
54,029
Lost
Events
20
64
11
95
Room
Nights
15,927
36,539
8,377
60,843
Source: Travel Alberta, October 2014
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5.9
Summary
In summary, the 9 Convention Centres in Western Canada hosted
close to 3,100 events in 2012 and 2013. Each Centre attracted an
average of 28 Conventions, 7 Trade Shows, 6 Consumer Shows,
182 corporate meetings/conferences, 81 banquets and 31 other
events, for a total of 335 events per Centre in 2013.
Table 5-9
TOTAL EVENTS
2012
2013
Conventions
248
254
Trade Shows
60
60
Consumer Shows
59
57
1,683
1,638
735
732
Other Events
296
278
TOTAL EVENTS
3,081
3,019
TOTAL GROWTH
-2.0%
SUPPLY
Convention Centres
% Change
% Change
Conventions
Trade Shows
Consumer Shows
Other Events
TOTAL
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2012
9
0.0%
664,316
0.0%
2012
28
7
7
187
82
33
342
2013
9
0.0%
664,316
0.0%
2013
28
7
6
182
81
31
335
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6.0 MEETINGS PROFESSIONAL SURVEY
RESULTS
6.1
Introduction
In order to obtain stakeholder input into the development of a
proposed Conference Centre in Canmore, PKF Consulting prepared
an online survey with questions focused primarily on quantifying
the need for and possible dimensions of the Centre itself, from the
perspective of both existing and potential users of
meeting/conference facilities in the Town. The survey also focused
on the competitive strengths and weaknesses of Canmore as a
meeting and conference destination.
The questionnaire was distributed to a sample of meetings
professionals based predominantly in Western Canada. The
sample included: meeting professionals and associations that have
previously held events in Canmore or have been in contact with
Canmore Business & Tourism in regards to meetings; and
representatives of the Greater Calgary, Greater Edmonton, and
British Columbia chapters of Meetings Professionals International
(MPI). The survey was made available via weblink on October 21,
2014 and closed on November 7, 2014. A total of 360 meeting
professionals were contacted via email and 58 completed surveys
were received, representing a response rate of 16%.
The following section represents a summary of information
received from the survey process. The views expressed in this
section of the report do not reflect the views and opinions of the
consulting team. The names of the individual participants are
excluded to respect the privacy of the individuals and their
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opinions. The intent of this section is to present a summary of
the views expressed through the online survey.
Once the data was collected, group profiles were prepared from
the responses, as follows:
4. All Respondents – all meeting professionals who
completed the survey;
5. Existing Users of Canmore – have hosted a meeting or
event at any venue in Canmore in the past; and
6. Potential Users of Canmore - have not hosted a
meeting or event at any venue in Canmore in the past.
The sample of Non-Users of Canmore (i.e. those who have not
hosted meetings in Canmore, and would not consider hosting in
future) was too small to be considered representative, and has
therefore not been included in this analysis.
The specific responses from these groups have been compared to
the results from All Respondents in the following sections. In
analyzing the survey, we have focused on the following areas:
Respondent Event Information
Evaluation of Canmore as a Meeting & Convention
Destination
Facility Input for the Proposed Canmore Conference Centre
Other Meeting Professional Suggestions and Feedback
The information obtained from these consultations has been used,
together with other research, to help develop recommended
facilities and utilization potential for the proposed Conference
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Centre in Canmore.
PKF Consulting is not responsible for
comments provided to us and reproduced in this document.
Further, we do not warrant the accuracy of any information
provided to us during the consultation.
6.2
Respondent Event Information
The majority of participants (All Respondents profile) represented
organizations that are international in scope (36%), followed by
those with national (29%) and provincial (26%) mandates.
Figure 6-2
Types of Events Hosted
(All Respondents, n=58)
Corporate Meetings/Seminars
Association Conferences/Conventions
Social Events (with Food & Beverage)
Trade Shows/Exhibitions
Incentive Events
Figure 6-1
Scope of Participant Organizations
5% 4%
36%
26%
29%
International
National
Provincial
Local
Consumer Shows
0% 10% 20% 30% 40% 50% 60% 70% 80%
Table 6-1 shows both the range and average group size by
number of delegates by type of event, as described by the full All
Respondents group. With respect to the top 3 types of events
hosted by survey respondents (see Figure 6-2), the average group
size for Corporate Meetings was 94 delegates, as compared to 433
delegates at Association Conferences, and 259 at Social Events.
Regional
The most common types of events hosted by All Respondents
were Corporate Meetings and Seminars (76%), followed by
Association Conferences and Conventions (64%) and Social
Events with Food & Beverage (55%).
Large-scale Trade
Shows/Exhibitions and Consumer Shows, as well as Incentive
Events, were less frequently hosted by the full group of
respondents.
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Table 6-1
Range and Average Size of Events by Type in Number of Delegates
Averag
All Respondents (n=58)
Minimum Maximum
e
40
3,000
433
15
500
94
Consumer Shows
0
61,000
n/a
Social Events (with Food & Beverage)
15
1,500
259
Incentive Events
10
1,200
163
20
2,500
750
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Table 6-2 shows the breakdown of typical event size by group
profile. As shown, the average size of Association Conferences and
Corporate Meetings was very similar for both Existing and
Potential Users, with much larger discrepancies between the
typical Social Event, Incentive Event and Trade Show group size.
Only three respondents identified hosting Consumer Shows. As
such, an average size for this segment has not been provided.
Table 6-2
Average Size of Events by Type by Profile
All
Existing
Respondents
Users
(n=58)
(n=17)
433
384
94
85
Consumer Shows
n/a
n/a
Social Events (with F&B)
259
417
Incentive Events
163
119
750
865
Potential
Users
(n=33)
406
79
n/a
144
258
525
Table 6-3 shows the variance in size of the largest recurring
event hosted by various group profile. As shown, the Existing
Users participant group typically hosted larger recurring
events on average at 791 delegates, as compared to Potential
Users at 560 delegates. For 77% of All Respondents who host
recurring events, the largest repeated event they host occurs
annually, as compared to every 2 years for 15% of respondents.
Table 6-3
Average Size of Largest Recurring Event
743
Existing Users (n=14)
791
Potential Users (n=33)
560
Trends in Function Space Rental Fees at Purpose Built
Meeting Facilities and Non-Accommodation based Venues:
At conference centres and other related non-hotel venues,
the majority of respondents identified the most common
trend as expectation of free or heavily discounted
space, if meals are included at the event. Some
respondents cautioned that this trend does not include
exhibition space, and others found that free F&B only
applied to the room where the main meal was being held
(i.e. not the breakout session rooms).
Negotiated rates by event are also very common, and
there is usually a sliding scale applied to rates with F&B.
Some venues offer first time user discounts, others have
rates negotiated by loyalty, and many venues are now
offering last minute deals.
Many respondents added that free Wi-Fi in all meeting
rooms is now a common ask in all negotiations, as well as
including flexibility for use of preferred suppliers.
It was noted that in general, a group would prefer not to
pay for space, so if they can fit into a hotel they will go
this route. For facilities not attached to hotels,
arrangements could be made that a percentage of the
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guest room rate could be applied to the conference
space fee.
Other trends and suggestions regarding rental fees at nonaccommodation based meeting venues include:
o
o
o
o
o
o
o
o
o
o
Venues should have flexibility regarding exclusive
partners – many meeting planners stay away from
properties that don't allow them to use their own
preferred suppliers or charge ridiculous fees to use
them.
Resort fees and meeting room fee are waived if
meals are included (over a certain dollar value).
Tighter restrictions on what the client is allowed to
bring in in terms of drinks, etc.
Free space if meals included, but only for a catered
event, i.e. for a social event or conference, expect
the room for breakfast/lunch/dinner to be free, but
would pay for session rooms.
The trend is by industry segment.
If a group is too large for the specific facility, rental
rates apply, but the venue should provide value
when charging rental rates.
From a facility standpoint, larger casual meeting
spaces.
Healthier food choices.
Multi-year promo decline; mostly last minute deals
are much better than earlier bookings.
If venue is not attached to a hotel, arrangements
could be made that a % of the guest room rate can
be applied to the conference space fee. (Edmonton
used to do this - it was called the Alberta
Advantage).
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o
o
o
o
o
o
o
o
o
o
o
o
o
Rental fees differ - depending on how long you
require space (full day rates, half day rates), and if
F&B is included, rates may be discounted or even
waived if minimums are met.
Free WI-FI, Free press room, A/V fee reduction.
Reducing technology costs, furniture inclusions or
credit towards rentals.
City or provincial grants to the convention space
based on ancillary hotel pickup.
Rebates offered by DMO.
Reduced rental rates based on percentage of overall
venue meeting/event space booked.
Generally high fees for equipment, pipe and drape.
Difficult to book for daytime events (such as
luncheon speakers) more than a couple of months in
advance.
Complimentary accommodations for the organizer.
Admin room added at no additional cost.
Rates negotiated on loyalty (how many events do
we bring in a year) and their revenue.
Complimentary
hospitality
desk
throughout
conference.
Standard rent price once an event is established;
and introductory rates for first year or event
expansion.
Trends in Function Space Rental Fees at Hotels & Resorts
The most common trend for meetings and events hosted at
Hotels & Resorts is to waive rental space fees, provided
a room block is booked and meals are included. This
is normally done after the event is complete and is based on
reaching set minimums with room block and meal spends.
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o
As with the stand alone venues, sliding scales are often
applied based on F&B total spend, but also on room block
use (i.e. comped for room blocks over 200). Many hotels
will also comp guest rooms for speakers and special guests.
o
In general, hotel rental rates are higher than standalone facilities when F&B is not included in a package.
o
Similar to stand-alone venues, trends include: more last
minute promos, room block incentive partnerships,
restrictions on outside caterers, and negotiated rates based
on loyalty.
AV and Wi-Fi are expected to be included in all meeting
packages – with Wi-Fi access in all meeting rooms and
guest rooms.
Other trends and suggestions regarding rental fees at hotels
and resorts include:
o
o
o
o
o
o
Hotel fees continue to increase with competition often better off at the convention centre, where you
don’t have to commit to the block of rooms.
Free plenaries ($80/small group breakout rooms).
Free meeting space with the meeting package; AV
included in the package; having the meeting space
available 24 hours/day during our stay.
Some planners tack a $5-10 increase on the
bedroom rate to help offset the room rental when
doing a big conference and tradeshow.
The trend is that nothing is "free" any longer.
More complete meeting package options.
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o
o
o
o
o
o
Free Wi-Fi in meeting rooms and delegate rooms,
large casual meeting spaces, reduced dollars for
food, healthier food choices, concierge service for
participants
If holding a larger event, hotels sometimes comp
rooms for special guests, and may include free
parking.
Usually a sliding scale - guest rooms occupied
applies to the space rental fee.
Rental fee reduced based on relationship with Sales
Manager.
Wi-Fi connectivity is often extra and quite expensive
– this should be included in all meeting packages.
Challenges with mandate for no outside catering.
Combination of space/rooms/meals that do not
apply to all types of events being offered.
Rates negotiated on loyalty (how many events do
we bring in a year).
Flexible cancellation policies and attrition and flexible
booking parameters.
Respondents were asked to consider the importance of various
services and amenities to best host their upcoming meetings and
events. Figure 6-3 shows the varying range in importance of
meeting-related services and amenities to All Respondents.
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Figure 6-3
Importance of Meeting Services & Amenities
Variety and quality of foodservice
Provision of an on-site hotel and availability of 3+ star branded
hotels were also very important to 61% and 56% of Potential
Users respectively. In comparison, Existing Users identified food
and beverage related offerings as holding the most importance
overall, as shown in Table 6-4.
Food and beverage concessions
Provision of an on-site hotel
Table 6-4
Importance of Meeting Services & Amenities
Availability of 3+ star branded hotels
Amount of available parking
Existing
Users (n=17)
Potential
Users (n=33)
Food and beverage concessions
Variety and quality of foodservice
Event planning/production
services
Provision of an on-site hotel
Amount of available parking
76%
75%
56%
76%
53%
81%
53%
47%
61%
45%
Availability of 3+ star branded hotels
41%
56%
Event planning/production services
Proximity to other local hotels
Close to downtown restaurants & retail
Provision of activities pre and post-meeting
Locally sourced food/menu items
Direct access to public transit
Direct access to indoor parking facilities
"Green" meeting/event services
Custom decor/event design services
"Western" hospitality experience
0% 10% 20% 30% 40% 50% 60% 70% 80%
Very Important
Not Important
As shown, variety and quality of foodservice was considered very
important to 73% of respondents, followed by food & beverage
concessions at 62%. Provision of an on-site hotel was
considered very important to 60% of all respondents, with
only 8% indicating that this service was unimportant. Of least
importance to All Respondents were custom decor/event design
services, direct access to public transport, provision of a
“Western” hospitality experience, and direct access to parking.
Other services and amenities of great importance to the
respondents included:
Complimentary Wi-Fi in meeting rooms;
Outstanding customer service;
Airport commute under 45 minutes;
Availability of suppliers - rental companies, food providers,
audiovisual services; and
Shuttle services.
Over 80% of Potential Users of Canmore M&C facilities indicated
that event planning and production services were very
important to best host their upcoming and future events.
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6.3 Evaluation of Canmore as a Meetings
Destination
Once information had been gleaned about the respondents’ event
profiles, the survey focused on the level of experience or
perceptions that each group held with regard to the Town of
Canmore.
About 87% of All Respondents had been to Canmore at
some point in the past, and 85% of those had been there
within the last 2 years. Within the sample of Potential Users, 82%
have been to the Town, and 78% of those respondents had done
so within the last 2 years.
About 53% of All Respondents had inquired about bringing
a group to host an event in Canmore, as compared to only 42%
of Potential Users. Further, 96% of All Respondents who
inquired about bringing groups indicated that their leads were
followed up on in a timely manner. With respect to the
quality of follow up on event leads, 100% of Potential Users
who had made an inquiry were happy with the level of followup provided, as compared to only 78% of Existing users.
For those who felt the follow-up on group leads by Canmore
representatives did not meet their level of expectation, the
following reasons were provided:
Timeliness of follow-up at certain hotel/resort properties
was lacking.
Costs can be too high for government groups.
Canmore does not have a large enough facility for some
group needs.
Follow-up was great, unfortunately the largest centre
couldn't meet specific meeting needs.
Respondents who had previously not hosted an event in Canmore
were asked to indicate why they had decided not to consider the
Town. As shown in the following chart, lack of familiarity with
Canmore’s meeting facilities, availability of meeting space
and logistics of transportation to Canmore (i.e. ground
shuttle from Calgary Airport) were the top 3 reasons provided.
Table 6-5
Follow-up by Canmore Venues Met Level
of Expectation
91%
78%
100%
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Figure 6-4
Reasons for Not Hosting Events in Canmore
primarily used to host Trade Shows/Exhibitions. With respect to
Canmore properties specifically, Existing Users utilize
Canmore / Kananaskis Hotels & Resorts most frequently
for Corporate Meetings and Social Events with F&B.
Not familiar with Canmore as M&C destination
Table 6-6
Top Venues Used by Type of Event (All Respondents, n=46)
Banff / Lake
Canmore /
Louise
Kananaskis
CDN
Other
Convention Hotels & Canmore Hotels &
Calgary
Resorts
Resorts
Centres
Venues
Hotels
Availability of meeting space
Logistics of transportation from Calgary Airport
Canmore not part of geographic rotation
Inability to host large convention under 1 roof
Association
Conferences/Conventions
Corporate Meetings
Consumer Shows
Social Events (with F&B)
Incentive Events
Missing exhibition space as a destination
Missing convention facilities as a destination
Availability of hotel rooms
Availability of 3+ star branded properties
Inability to host event for 500+ delegates
Shortage of larger room blocks near venue
Price of the overall destination
Overall service levels as a destination
0%
5%
10% 15% 20% 25% 30% 35% 40%
One respondent further questioned whether the population of
Canmore could sustain bringing in large consumer shows, where
success is based on the attendance of local consumers.
53%
19%
25%
17%
0%
77%
16%
31%
0%
33%
17%
8%
9%
16%
0%
13%
0%
8%
56%
56%
0%
46%
83%
38%
78%
88%
100%
92%
50%
46%
Edmonton Red Deer
Hotels
Hotels
63%
63%
50%
50%
33%
46%
Figure 6-4 further demonstrates the utilization frequency of
Canmore venues in comparison to other top venues over the past
5 years by group profile. As a proportion of total events identified,
Calgary Hotels remain the most prominently utilized by both User
groups. Existing Users make use of Canmore / Kananaskis
Hotels & Resorts more actively than Canadian Convention
Centres and Red Deer properties.
The survey also asked respondents to identify other venues that
they have used in addition to Canmore venues over the past 5
years. As shown in Table 6-6, Calgary Hotels have been the
most frequently used for meetings and events, including:
Association Conferences & Conventions, Corporate Meetings,
Consumer Shows and Social Events. Banff and Lake Louise Hotels
and Resorts are most frequently used by All Respondents for
Incentive Events, and other Canadian Convention Centres were
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28%
19%
25%
13%
0%
23%
PKF Consulting
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respect to size spanned from 10 to 1,000 delegates for All
Respondents. Potential Users identified an average group
size at 160 delegates, as compared to 128 for Existing Users.
Figure 6-5
Top Venues Used by Group Profile
45
40
Figure 6-6
Typical Group Size for Canmore Events
35
30
Potential Users
160
25
20
All Respondents
157
15
10
Existing Users
128
5
0
0
CDN
Canmore /
Other
Convention Kan Hotels Canmore
Centres & Resorts
Venues
Banff / LL
Hotels &
Resorts
Existing Users
Calgary
Hotels
Edmonton
Hotels
Red Deer
Hotels
Potential Users
6.4 Facility Input for Proposed Canmore
Conference Centre
50
100
150
200
With respect to Largest Event Size for those who have hosted
or might consider hosting events in Canmore, Existing Users
identified a size range of 10 to 5,000 delegates, and an average
event size of 595 delegates. In comparison, Potential Users
identified a range from 10 to 1,700 delegates, and an average of
253 delegates for the largest event that they might potentially
host in Canmore.
PKF’s survey further prompted participants to provide details
about the types of facilities and meeting/event utilization patterns
that might impact the development of a Conference Centre in
Canmore.
Table 6-7
Dimensions of Largest Event in Canmore by Profile
Group Profile
Minimum Maximum Average
10
5,000
364
15
5,000
595
10
1,700
253
Respondents who had hosted or might consider hosting an event
in Canmore were asked to identify the Typical Event Size in
terms of number of delegates. The range of typical events with
61% of Existing Users identified that additional meeting space
would assist them to better host current events in Canmore.
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Figure 6-7
More Meeting Space Needed to
host Current Events in Canmore?
No
39%
Yes
61%
Existing Users further identified the following range of additional
space requirements for Meeting Rooms and Exhibition Space.
Table 6-8 provides a range and average requirements in terms of
square footage.
Table 6-8
Requirements for Additional Space to Host Current Events
(Square Feet)
Existing Users (n=15) Minimum Maximum
Average
Meeting Space
900
50,000
12,400
Exhibition Space
0
50,000
14,200
The general response with respect to Meeting Space was that a
large ballroom in the range of 6,500 to 10,000 square feet
would be sufficient, with adequate breakout space for 400-650
people.
Almost one-third of Existing Users indicated that they
would not make use of exhibition space. For those who
would, the range varied from a small area enough for 10 booths
to 50,000 sq.ft., for an average of 12,400 sq.ft.
Canmore, Alberta
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For those who are NOT currently hosting events in Canmore,
76% agreed that additional meeting and accommodation
facilities would assist in their decision to bring new events to
Canmore.
Figure 6-8
Would More Meeting Space
and Guest Rooms Bring you to
Canmore?
(Potential/Non-Users, n=46)
No
24%
Yes
76%
Potential Users of Canmore’s meeting facilities, as in those who
have not hosted meetings and events in the Town, were asked
how much additional space and guest rooms would be required to
convince them to bring new events to the Town. Table 6-9 shows
that on average, Potential Users require 15,000 sq.ft. of
meeting space, 24,000 sq.ft. of exhibition space and 275300 additional guest rooms.
Table 6-9
Requirements for Additional Space/Guest Rooms to Bring
New Events
Minimum Maximum Average
Meeting Space (sq.ft.)
525
100,000
14,650
Exhibition Space (sq.ft.)
0
100,000
23,575
Hotel Rooms (rooms)
2
2,000
286
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Finally, respondents whether their organization and/or clients
require Meeting Space & Exhibition Space to be under one roof
or physically connected, specifically when hosting large
conventions or other events. Figure 6-9 shows that 61% of All
Respondents are given a mandate to host large conventions &
conferences in a venue that is physically attached to guest room
accommodations.
Only 14% of respondents identified no
requirements for connectivity between meeting space and rooms.
Figure 6-9
Meeting Space & Accommodation Requirements for
Large Conventions
70%
60%
50%
40%
30%
20%
10%
0%
61%
The following is a list of specific comments regarding the
Canmore’s potential as a meeting/conference destination:
31%
20%
Numerous respondents indicated that the lack of venues with a
large ballroom and multiple breakout rooms, as well as available
room blocks for 250+ delegates , were the main deterrents. The
general perception of the Town is positive, but as one respondent
indicated, “it feels like a pre/post show” destination, as opposed
to the host of a major conference. A major concern is the
proximity to the nearest airport in comparison to Calgary meeting
venues, and requirement for ground transportation from Calgary.
Balanced pricing was suggested to make up for the added time
and expense, or flexible and inexpensive shuttle service. Others
mentioned challenges with geographic rotation or unfamiliarity
with Canmore from an association and corporate perspective, and
the need to improve the perception of Canmore as an
international destination (differentiated from Banff).
14%
Yes - they must be No - but they must Yes - they must be
No - no
physically
be within walking
physically
requirements for
integrated into one distance to major connected to an
connectivity
facility
hotel blocks and/or existing facility
meeting space
6.5 Other Meeting Professional Suggestions and
Feedback
Having considered the current perceptions and experiences of
meeting professionals regarding Canmore and its facilities,
respondents were given the opportunity to answer a few openended questions.
Canmore, Alberta
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6, 2016
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Canmore
Business
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Destination
Needs more higher-end hotels and large meeting space;
Increase venue capacity, hotels with 3+ stars, and
transportation options for large scale events;
Canmore feels like a pre/post show place to go and not for
hosting big meetings;
I believe Canmore is not on association and corporate radar
at this time;
Association clients prefer major cities but will consider board
meetings;
Give me an overview of everything that is available in
Canmore that will fill my needs in terms of planning an
event there. Sell me on the space, the amenities, the food,
the extras;
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Business in the community willing to be included;
Competitive on pricing and service, amenities, ease of
access;
More entertaining evening activities;
Improve international recognition factor - around the world,
people have heard of Banff, and not necessarily Canmore.
The clients feel that holding their conference in Banff is
potentially more of a draw attendance-wise than if they had
it in Canmore;
Challenge is with the perception that Canmore is a growing
bedroom town that has grown “because it isn't Banff”;
sprawling growth over the last 10 years; and
Need to sell location - closer to Calgary; smaller, more
intimate; tell me why it's better than Banff; what are the
perks to hosting a meeting in Canmore? What's the benefit?
What is the unique opportunity/selling feature that will
make me want to come to Canmore.
Venue
Could not fit my event in one building;
Most venues with a large ballroom and multiple breakout
rooms;
Offer an attractive package - competitive hotel rates, and
reduce costs on the event space costs dependent on the
guest room pickup;
Adequate space for 300 people in a plenary session, with
break out rooms, ideally 6 to 8;
Cost of food decreased or discounts on the food provided;
Exciting opportunities for team building; and
Be competitive
Canmore, Alberta
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Hotel Accommodations
Hotels that are capable of blocking a large amount of guest
rooms (approximately 250 – 350);
More high quality hotels with meeting spaces built in,
transportation from Calgary;
Offer high-quality affordable accommodation with amenities
such as fitness area/swimming pool;
Larger properties - it would be nice to have a 500+ room
hotel with 20,000 sf in space; and
Rate of hotels are too high.
Transportation
Flexible, free (inexpensive) shuttle from airport for
delegates;
Easy access to transportation for those travelling to Calgary,
Banff or Lake Louise;
Create some affordable transportation or tour options for
delegates to go to Banff when they are not in their
conference sessions;
Reduce commute time from nearest major airport (YYC) or
comprehensively balance pricing accordingly;
It would difficult due to the distance from the airport in
Calgary;
Create more options for easier access from Calgary airport;
and
Better transit or taxi services.
With respect to the proposed Conference Centre itself, many
respondents suggested that the Centre must be representative of
Canmore. Several suggested linking outdoor recreation, culinary
experiences, or arts & culture to the new facility.
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Many respondents tend to use hotels for their size (particularly in
Calgary); however, many were interested in hosting future events
at proposed Conference Centre facility if it were adjacent to a
hotel. Those in favour suggested that a new conference centre
would help expand their typical rotation of Calgary, Jasper and
Banff.
If not a 4+ Star hotel on site, then close proximity to
equivalent hotels and or transportation provided between
local hotels and the event space;
Have a facility that has one large meeting space of at least
7,000 square feet pillar free room, with additional rooms for
meals, and hotel rooms.
The following is a list of specific comments regarding the
proposed facility:
Great prices and links to outdoor recreation activities, Banff
Centre, etc.;
Something different, green, artsy. High quality;
Ensure price is comparable to other venues;
A first class meeting facility that makes my job easy - one
stop shopping in terms of facility and catering - I don't want
to have to deal with 2 separate entities;
Being close to local businesses would be good;
Having a facility that represents the local area and looks like
it fits right into the look of the area;
Have a large enough conference & tradeshow space for our
largest annual event;
People like to have a view, a place to walk/hike, something
to do - night life or food experience;
Have a dedicated person to work with me from beginning to
end. Do not transfer my file between multiple staff. Event
planners value relationships;
Build a convention centre that can host up to 1100
delegates and 150 exhibitors;
Definitely larger, beautiful meeting space. Windows, high
ceilings make a difference, especially in the mountain
setting;
Canmore, Alberta
Januaryfor:
6, 2016
Regular
Business&Meeting
5 p.m.
Prepared
Canmore
Business
Tourism
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7.0 FACILITY ALTERNATIVES FOR A
NEW CANMORE CONFERENCE
CENTRE
7.1
Introduction
Based on the results of the meeting planner surveys, together
with the competitive market analysis, we have explored 3 facility
development alternatives for a proposed Conference Centre in
Canmore:
A Stand-Alone Conference Centre;
A full-service hotel with meeting/conference space; and
A Mixed Use Venue.
7.2
Stand Alone Conference Centre
As a stand-alone Conference Centre, consideration has been given
to 3 development options:
Option 1A:
Option 1B:
Option 1C:
Building for Today
Building to Reach the Town’s Potential
Building for the Long Term
In Option 1A: Building for Today, consideration has been
given to developing a Conference Centre which will attract M&C
groups to be accommodated by the Town’s existing
accommodation product.
Canmore, Alberta
Januaryfor:
6, 2016
Regular
Business&Meeting
5 p.m.
Prepared
Canmore
Business
Tourism
Given the Town’s current accommodation profile of:
18 hotels/resorts offering an estimated 1,628 rooms;
With the 3 largest properties in the market offering between
150 to 190 rooms; and
Few 4 star+ branded hotels
a Conference Centre with 13,500 square feet of rentable
space has been profile in Table 7-1A. A Conference Centre of
this size could effectively attract Convention and Meeting groups
of up to 400 persons in size.
As a 2nd scenario, consideration has been given to developing a
Conference Centre offering 18,000 square feet of rentable
space. While a Conference Centre of this size will not be able to
reach its full potential in the short term due to the limitations in
the size and make-up of Canmore’s current accommodation
market, it will be able to maximize its potential should a future 4
star branded hotel of 150-200 rooms be developed adjacent to
the facility. The facility program for Option 1B: Building to
Reach the Town’s Potential is provided in Table 7-1B. A
Conference Centre of 18,000 square feet could effectively
compete for Convention and Meeting groups of up to an estimated
525 persons in size.
The 3rd option for a Stand Alone Conference Centre in Canmore
calls for Building for the Long Term, at 21,600 square feet
of rentable space (Table 7-1C). At this size, the Conference
Centre could compete for group business of up to 640 persons.
However, in order to accommodate groups of this size, the Town
would need to add a further 300+ rooms to the market.
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Table 7-1A
STAND ALONE VENUE - OPTION A - Building for Today
Meeting Space
Unit
Seats
Sq.ft.
Exhibition Space
1
0
0
1
500
7,500
Meeting Space
1
400
6,000
Public Areas
1
1,500
Gross up @ 50%
15,000
Total
4
900
30,000
400
persons
Parking
Stalls
Sq.ft./Stall
Sq.ft.
320
400
128,000
Total
320
400
128,000
Other
Sq.ft.
Land
117,500
117,500
FF&E
15,000
Total
30,000
TOTAL PROGRAM
Acres
Sq.ft.
Sq.ft.
Land
2.7
117,500
Construction
30,000
117,500
FF&E
15,000
30,000
TOTAL PARKING
128,000
TOTAL PROJECT
158,000
Table 7-1B
STAND ALONE VENUE - OPTION B - Building to Reach Its Potential
Meeting Space
Unit
Seats
Sq.ft.
Exhibition Space
0
0
0
1
667
10,000
Meeting Space
1
533
8,000
Public Areas
1
2,700
Gross up @ 50%
20,700
Total
3
1,200
41,400
525
persons
Parking
Stalls
Sq.ft./Stall
Sq.ft.
427
400
170,667
Total
427
400
170,667
Other
Sq.ft.
Land
158,417
158,417
FF&E
20,700
Total
41,400
TOTAL PROGRAM
Acres
Sq.ft.
Sq.ft.
Land
3.6
158,417
Construction
41,400
158,417
FF&E
20,700
41,400
TOTAL PARKING
170,667
TOTAL PROJECT
212,067
Table 7-1C
STAND ALONE VENUE - OPTION C - Building for the Long Term
Meeting Space
Unit
Seats
Sq.ft.
Exhibition Space
0
0
0
Largest Room / Ballroom
1
800
12,000
Meeting Space
1
640
9,600
Public Areas
1
3,400
Gross up @ 50%
25,000
Total
3
1,440
50,000
640
persons
Parking
Stalls
Sq.ft./Stall
Sq.ft.
512
400
204,800
Total
512
400
204,800
Other
Sq.ft.
Land
190,500
190,500
FF&E
25,000
Total
50,000
TOTAL PROGRAM
Acres
Sq.ft.
Sq.ft.
Land
4.4
190,500
Construction
50,000
190,500
FF&E
25,000
50,000
TOTAL PARKING
204,800
TOTAL PROJECT
254,800
Of the 3 stand-alone options, we recommend Option B –
Building a Conference Centre of 18,000 square feet of
rentable space in order for Canmore to compete in today’s
market and reach its potential in the mid-term with the addition of
future hotel supply. Inclusive of public areas and front and back
of house support space, the full Conference Centre program calls
for a building of 41,400 square feet, with 427 parking spaces.
Assuming the building and parking facility were to be developed
on 2 levels, a site of 3.6 acres would be required for the
recommended stand-alone Conference Centre.
Canmore, Alberta
Januaryfor:
6, 2016
Regular
Business&Meeting
5 p.m.
Prepared
Canmore
Business
Tourism
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7.3
Hotel with Conference Centre
As a hotel with conference space, this
option will also require a similar size
Conference Centre rental space as
that recommended for a stand-alone
venue.
Table 7-2 provides a preliminary
facility program for a 200-room hotel
offering 18,000 square feet of rentable
space. This option would require a
total
building
program
of
approximately 67,000 square feet,
with parking for over 400 spaces.
Assuming the hotel with conference
space were to be developed on 5
stories, building, with a 2 level
parking facility, a site of about 3.2
acres would be required.
However, based on Canmore’s current
accommodation market occupancy of
50 to 55% in 2013 and 2014, we do
not believe the market dynamics are
strong enough to attract further hotel
development at this time.
Table 7-2
HOTEL AND CONFERENCE FACILITY PROGRAM
Guestrooms
Rooms
Sq.Ft./Rm
Standard King
58
275
Standard Queen / Queen
88
325
King Suite
37
380
Queen / Queen Suite
17
475
TOTAL GUESTROOMS
200
333
Food & Beverage
Rooms
Sq.Ft./Rm
80 Seat Restaurant
1
10
30 Seat Outdoor Patio (Seasonal)
1
8
Total Food & Beverage
2
18
Meeting/Event Faciities
Rooms
Sq.Ft./Rm
1
50
Meeting Space
40
Public Areas
14
Total Meeting/Event Facilities
1
104
Recreational/Other Activities
Rooms
Sq.Ft./Rm
Fitness Room
1
5
Indoor Pool
1
8
Lobby/Public Areas/Back of House
Lobby/Public Areas/Back of House/Mechanical/Kitchen
150
TOTAL BUILDING SIZE
200
618
Parking
Parking
Total Site Requirements
Canmore, Alberta
Januaryfor:
6, 2016
Regular
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5 p.m.
Prepared
Canmore
Business
Tourism
Spaces
427
3.2 acres
Sq.Ft./Rm
400
1,471
Sq.Ft.
15,950
28,600
14,060
8,075
66,685
Sq.Ft.
2,000
1,600
3,600
Sq.Ft.
10,000
8,000
2,700
20,700
Sq.Ft.
1,000
1,600
30,000
123,585
Sq.Ft.
170,667
294,252
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7.4
Mixed Use Development
Table 7-3 offers a mixed use facility program providing an 18,000
square foot Conference Centre with a 10,000 square foot sports
venue. It may be possible to convert the sports venue to
Exhibition space for large conventions with trade shows and/or
trade show events.
This option would require a total building program of
approximately 55,000 square feet, with parking for close to 500
spaces.
on 2 levels, a site of 3.5 acres would be required for the overall
development.
7.5
Summary
Based on our preliminary analysis, we recommend consideration
be given to the development of a stand-alone Conference Centre
with up to 18,000 square feet of rentable space.
This option
requires a site in the range of 3.5 acres. Ideally, a site in the
range of 5 acres could accommodate the proposed Conference
Centre, with an adjacent allowance of 3 acres for future hotel
development.
Table 7-3
MIXED USE VENUE
Convention Centre
Exhibition Space
Meeting Space
Public Areas
Gross up @ 50%
Total
Mixed Use Development
Sports Venue
Gross up @ 30%
Total
Units
Seats
0
667
533
1,200
667
Sq.ft./Unit
Sq.ft.
0
10,000
8,000
2,700
20,700
41,400
persons
Sq.ft.
10,000
3,000
13,000
Parking
Sports Venue Parking
Conference Centre Parking
Total
Stalls
50
427
477
Sq.ft./Stall
400
400
400
Sq.ft.
20,000
170,667
190,667
Other
Land
FF&E
Total
-
TOTAL MIXED USE PROGRAM
Land
Construction
FF&E
TOTAL MIXED USE DEVELOPMENT
TOTAL PARKING
TOTAL PROJECT
Canmore, Alberta
Januaryfor:
6, 2016
Regular
Business&Meeting
5 p.m.
Prepared
Canmore
Business
Tourism
Unit
0
1
1
1
3
Sq.ft.
153,167
153,167
30,700
54,400
Acres
3.5
-
Sq.ft.
-
Sq.ft.
153,167
245,067
153,167
30,700
54,400
190,667
245,067
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8.0 MARKET DEMAND POTENTIAL FOR
A CANMORE CONFERENCE CENTRE
Over the next 5 years, the number of events per venue has been
projected to increase from an average of 68 in 2013 to 70 in
2017.
8.1
With the proposed Canmore Conference Centre entering the
market in 2018, the average number of events per competitive
venue has been projected to decrease modestly to 69 events,
before climbing back to 70 events per venue by 2020.
Introduction
Market projections for the competitive Alberta hotels and resorts
and Convention Centre market have been prepared together with
3-year utilization forecast for a new 18,000 square foot Canmore
Conference Centre, with an opening date of 2018. Projections for
the subject facility include the number of events by type, as well
as delegates / attendees and room nights generated for the Town
of Canmore.
8.2
Market Projections
8.2.1 Alberta Hotels and Resorts Projected Market Event
Performance
Based on historic demand levels, competitive supply factors and
economic forecasts, 5 year market projections have been
prepared for the Alberta Hotels and Resorts competitive market
(including the subject Canmore market) in terms of Conventions,
Corporate Meetings, Incentive / Gov’t, SMERF demand as well as
Canmore Weddings and Social/Other Event demand (Table 8-1).
Conservative growth rates of 1.0% per annum have been forecast
for each of the meetings demand segments over the next 7 years
(2014 to 2020).
Canmore, Alberta
Januaryfor:
6, 2016
Regular
Business&Meeting
5 p.m.
Prepared
Canmore
Business
Tourism
8.2.2 Competitive Tier 2 and 3 Convention Centre Event
Performance
For comparison purposes, market projections have also been
prepared for the competitive Convention Centre market (Table 82).
Utilizing a conservative growth rate of 1.0% per annum for each
of the meetings demand segments, the number of events per
Convention Centre has been projected to increase from an
average of 335 per Centre in 2013 to 349 by 2017.
Global trends indicate that there has been substantial growth in
the meetings and conference segment, with almost every specialty
organization/interest group having an association that holds one
or more meetings. While the convention industry is sensitive to
the cyclical nature of national and global economies, attendance
numbers fall and conference budgets decrease during
recessionary periods.
Conversely, attendance and budgets
recover during upturns in the economy. The industry is resilient,
as events which tend to be booked several years in advance, still
go ahead during recessions, albeit with reduced budgets and
attendance.
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For the purposes of this analysis, we have assumed that the
proposed Canmore Conference Centre will enter the competitive
market by 2018, increasing the number of Convention Centres in
the competitive market to 10. We have also accounted for an
expansion to one of the Convention Centres in Calgary as well as
an expansion of the Whistler Conference Centre by the same year
- 2018. This will translate into a 20% increase in supply with over
800,000 square feet of new rentable space coming into the
competitive market over the next 5 years.
Over the next 7 years, the number of Conventions within the
competitive market has been projected to increase by 35 events,
from 254 in 2013 to 289 by 2020.
With increased competition entering the market over the next 5
years, the average Convention Centre is projected to decline from
an average of 335 events per Centre in 2013, to 318 events per
Centre in 2018 when the proposed Canmore Conference Centre
opens, before increasing to 325 events by 2020.
Canmore, Alberta
Januaryfor:
6, 2016
Regular
Business&Meeting
5 p.m.
Prepared
Canmore
Business
Tourism
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TOTAL EVENTS
Conventions
Trade Shows
Consumer Shows
Corporate Meetings
Incentive / Gov't Groups
SMERF Groups
Canmore Weddings
Canmore Other Social
TOTAL EVENTS
TOTAL GROWTH
SUPPLY
Hotels/Resorts/Other
% Change
% Change
AVG EVENTS PER VENUE
Conventions
Trade Shows
Consumer Shows
Corporate Meetings
Incentive / Gov't Groups
SMERF Groups
Canmore Weddings
Canmore Other Social
TOTAL
2013
388
672
23
815
170
30
2,098
2013
31
313,225
2013
13
0
0
22
1
26
5
1
68
Table 8-1
COMPETITIVE ALBERTA HOTELS & RESORTS
MARKET PROJECTIONS BY EVENT TYPE
2014
2015
2016
2017
392
396
400
404
679
686
692
699
23
23
23
23
823
831
840
848
172
173
175
177
30
31
31
31
2,119
2,140
2,162
2,183
1.0%
2014
31
0.0%
313,225
0.0%
2014
13
0
0
22
1
27
6
1
68
1.0%
2015
31
0.0%
313,225
0.0%
2015
13
0
0
22
1
27
6
1
69
Based on 31 Competitive Venues in Canmore, Kananaskis, Alberta Rockies and Red Deer
Canmore, Alberta
Januaryfor:
6, 2016
Regular
Business&Meeting
5 p.m.
Prepared
Canmore
Business
Tourism
1.0%
2016
31
0.0%
313,225
0.0%
2016
13
0
0
22
1
27
6
1
70
1.0%
2017
31
0.0%
313,225
0.0%
2017
13
0
0
23
1
27
6
1
70
2018
408
706
24
857
179
32
2,205
2019
412
713
24
865
180
32
2,227
2020
416
721
24
874
182
32
2,249
2018
32
2019
32
2020
32
1.0%
3.2%
331,225
5.7%
2018
13
0
0
22
1
27
6
1
69
1.0%
0.0%
331,225
0.0%
2019
13
0
0
22
1
27
6
1
70
1.0%
0.0%
331,225
0.0%
2020
13
0
0
23
1
27
6
1
70
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Conventions
Trade Shows
Consumer Shows
Other Events
TOTAL EVENTS
TOTAL GROWTH
SUPPLY
Convention Centres
% Change
% Change
Conventions
Trade Shows
Consumer Shows
Other Events
TOTAL
Table 8-2
TOTAL EVENTS
2012
2013
2014
2015
2016
248
254
257
259
262
60
60
61
62
62
59
57
58
58
59
1,683
1,638
1,654
1,671
1,688
735
732
739
747
754
296
278
281
284
286
3,081
3,019
3,050
3,080
3,111
-2.0%
2012
9
0.0%
664,316
0.0%
2012
28
7
7
187
82
33
342
Based on 3 Tier 2 and 6 Tier 3 Convention Centres in Alberta and B.C.
Canmore, Alberta
Januaryfor:
6, 2016
Regular
Business&Meeting
5 p.m.
Prepared
Canmore
Business
Tourism
2013
9
0.0%
664,316
0.0%
2013
28
7
6
182
81
31
335
1.0%
2014
9
0.0%
664,316
0.0%
2014
29
7
6
184
82
31
339
1.0%
2015
9
0.0%
664,316
0.0%
2015
29
7
6
186
83
32
342
1.0%
2016
9
0.0%
664,316
0.0%
2016
29
7
7
188
84
32
346
2017
264
63
59
1,705
762
289
3,142
2018
277
63
60
1,722
769
292
3,184
2019
284
64
61
1,739
777
295
3,220
2020
289
65
61
1,756
785
298
3,254
2017
9
2018
10
2019
10
2020
10
1.0%
1.3%
0.0%
11.1%
664,316
803,362
0.0%
2017
29
7
7
189
85
32
349
20.9%
2018
28
6
6
172
77
29
318
1.1%
1.1%
0.0%
803,362
0.0%
0.0%
803,362
2019
28
6
6
174
78
30
322
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0.0%
2020
29
6
6
176
78
30
325
PKF Consulting
Canada
8.3 Proposed Canmore Conference Centre
Utilization Projections
The market potential for M&C events at the proposed Canmore
Conference Centre has been based on the following factors:
Economic influences;
Competitive supply factors;
Results of the Meeting Planner survey; and
Canmore’s current situation and potential as a meetings
destination.
In projecting utilization rates for the proposed Canmore
Conference Centre during its first 3 years of operation, the
concept of “fair market share” has been utilized. This concept
states that a facility or destination will attract event demand in the
same proportion as its share of function space and its destination.
The basis assumption is that all things are equal, however:
different hotels/resorts, Convention Centres and destinations
achieve different levels of market penetration based on various
competitive
factors
including
location,
access,
venue,
accommodation supply, delegate/consumer preferences, pricing,
incentives and marketing and sales strategies. Market penetration
levels in excess of 100% (fair market share) indicate that a
Convention/Conference Centre and/or Destination Host City
possess competitive advantages relative to the market as a whole;
while competitive weaknesses are reflected in penetrations of less
than 100%. Fair market share is a universally accepted analytical
tool used to measure the market position of hospitality assets
relative to its completion.
Canmore, Alberta
Januaryfor:
6, 2016
Regular
Business&Meeting
5 p.m.
Prepared
Canmore
Business
Tourism
For the purposes of the subject analysis, we will project
Convention, Trade Show and Consumer Show demand levels for
the proposed Canmore Conference Centre against the competitive
Convention Centre market; and Meetings, Food & Beverage Social
events and Other Events against the competitive Alberta Resorts
and Hotels market.
Table 8-3
Subject Canmore Conference Centre Utilization Projections
Convention Centre Demand
PKF Competitive
Segmentation
Analysis
1.
Conventions
Provincial/Regional
Provincial/Regional
National Level:
National
Tier 2 and 3
Convention Centres in
US/International
Alberta and B.C.
2.
Trade Shows
3.
Consumer Shows
4.
Local/Regional Level:
Canmore, Alberta
5.
Food & Beverage – Social Events
Rockies, Red Deer
6.
Other Events
Market
8.3.1 Convention Demand Projections
Table 8-4 details the projections for the subject Canmore
Conference Centre in the Convention segment by event size over
the 2018 to 2020 forecast period.
In 2013, Canmore hosted an estimated 103 National and Regional
Association conferences, the majority of which were less than 150
delegates in size. On average, the Town attracts 2 Conventions
each with approximately 400 delegates per year. Overall the
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average Convention to Canmore is currently less than 60
delegates.
Conventions of 350 delegates.
Given the Town’s current
accommodation supply, the Town will not be in a position to
effectively compete for larger conventions of 500+ delegates. In
its first year of operation, the proposed Conference Centre is
projected to achieve 61% of its fair market share amongst its
competitive Convention Centre market.
Going forward, the
With the opening of the subject 18,000 square foot Canmore
Conference Centre in 2018, Canmore is expected to attract 17
Conventions each with an average of 200 delegates, plus 2
TIER 2 & 3 MARKET
<250
251-500
Table 8-4
CANMORE CONFERENCE CENTRE MARKET PROJECTIONS
CONVENTION SEGMENT - RECOMMENDED EXPANSION PROGRAM @ 18,000 SQ.FT.
2013
2014
2015
2016
2017
2018
81
81
82
83
84
86
99
100
101
102
103
109
501-1,000
1,000+
TOTAL CONVENTIONS
CANMORE CONFERENCE CENTRE Fair Mkt Share
<250
251-500
501-1,000
1,000+
AVERAGE PER CENTRE
MARKET PENETRATION
<250
251-500
501-1,000
1,000+
CANMORE MARKET SHARE
<250
251-500
501-1,000
1,000+
TOTAL CONVENTIONS
2019
88
111
2020
89
113
41
42
42
43
43
46
48
50
33
254
2013
9
11
5
4
28
2013
34
257
2014
9
11
5
4
29
2014
34
259
2015
9
11
5
4
29
2015
34
262
2016
9
11
5
4
29
2016
35
264
2017
9
11
5
4
29
2017
2013
2014
2015
2016
2017
37
277
2018
9
11
5
4
28
2018
175%
18%
0%
0%
61%
2018
15
2
0
0
17
38
284
2019
9
11
5
4
28
2019
194%
27%
0%
0%
70%
2019
17
3
0
0
20
38
289
2020
9
11
5
4
29
2020
214%
35%
0%
0%
79%
2020
19
4
0
0
23
Canmore, Alberta
Januaryfor:
6, 2016
Regular
Business&Meeting
5 p.m.
Prepared
Canmore
Business
Tourism
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Canmore Conference Centre is projected to gradually improve its
market penetration to close to 80% in the Convention market.
and demographics.
As such, we have not projected any
Consumer Show demand for the Canmore Conference Centre.
The market will continue to attain less than its fair market share
of Conventions until such time as an additional branded hotel of
150 to 200 rooms enters the market, and is strategically located in
close proximity to the Conference Centre.
8.3.3 Meetings and Conference Demand Projections
However, it should be noted that at a projected utilization rate of
17 to 23 Conventions, the Canmore Conference Centre will
achieve well above its fair market share in comparison to its
Alberta hotels and resorts market. On average, the competitive
hotel and resort market attracts 13 self-contained conventions per
year.
8.3.2 Trade and Consumer Show Demand Projections
Canmore recently hosted the Canada West Marketplace in October
2014, utilizing the Coast Hotel and Conference Centre and an
adjacent 6,000 square foot tent. The 3 day event attracted 350 to
450 sellers and 200 buyers over a 4 night stay. This event rotates
between B.C. and Alberta and was looking for a new destination in
selecting Canmore to host this year’s Trade Show.
While the preliminary facility program for the Canmore Conference
Centre does not provide space dedicated to exhibitions, the Centre
is expected to attract 1 Trade Show in its first year of operation,
increasing to 2 Trade Shows by its 3rd year of operation, reflecting
a market penetration of 30% of its fair market share.
Table 8-5 summarizes the projections for the subject Canmore
Conference Centre in the Meetings and Conference event
segment, through the lens of the competitive Alberta hotel and
resort market.
In 2013, Canmore’s accommodation market hosted 195 corporate
meetings, the majority of which attracted less than 50 delegates.
A further 20+ corporate events were larger at an average of 100
delegates.
We have projected that a new Conference Centre in Canmore will
capture 70 corporate meetings/conferences in Year 1, increasing
to 100 meetings by Year 3. This represents a penetration rate of
over 300% of its fair market share amongst Alberta’s hotel and
resort competitive market, increasing to over 430% by Year 3.
Amongst its Tier 2 and 3 Western Canada Convention Centre
market, 70 to 100 meetings represents less than its fair market
share at penetration rates of 40 to 70%. On average, the
competitive Convention Centre market attracts 170 corporate
meetings / conferences per year.
Consumer shows tend to occur in metropolitan markets, like
Calgary, Edmonton and Vancouver due to large population draw
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Table 8-5
MEETINGS & CONFERENCE SEGMENT - RECOMMENDED EXPANSION PROGRAM @ 18,000 SQ.FT.
ALBERTA RESORTS/HOTELS/OTHER COMP VENUES
2013
2014
2015
2016
2017
2018
Corporate Meetings
672
679
686
692
699
706
Incentive/ Gov't Group
23
23
23
23
23
24
TOTAL MEETINGS
695
702
709
716
723
730
AVERAGE PER CENTRE
2013
2014
2015
2016
2017
2018
Corporate Meetings
22
22
22
22
23
22
1
1
1
1
1
1
TOTAL AVERAGE PER HOTEL
22
23
23
23
23
23
MARKET PENETRATION
2013
2014
2015
2016
2017
2018
Corporate Meetings
317%
0%
CANMORE MARKET SHARE
307%
2013
2014
2015
2016
2017
2018
Corporate Meetings
70
0
TOTAL MEETINGS
70
2019
713
24
737
2019
22
1
23
2019
404%
0%
391%
2019
90
0
90
2020
721
24
745
2020
23
1
23
2020
444%
0%
430%
2020
100
0
100
8.3.4 Special Events and Other Event Projections
Table 8-6 summarizes Special /Other Event demand projections
for the Canmore Conference Centre over the next 7 years. The
competitive Alberta resort and hotel market has been projected to
hold an average of 26 to 27 SMERF food and beverage events per
venue per year. In addition, Canmore hosted 170 weddings and
30 other social events in 2013 for an average of 6 to 7 events per
venue.
Canmore, Alberta
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With the opening of the Canmore Conference Centre in 2018, we
have forecast the Centre will achieve more than its fair market
share of SMERF events, weddings and other social events (126%
penetration rate), growing from 42 events to 54 events by Year 3
(159% penetration rate).
This level of event demand represents a market penetration rate
of 40 to 50% of its fair market share amongst the Centre’s
competitive Tier 2 and 3 Western Canada Convention Centre
market.
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Table 8-6
SPECIAL EVENTS AND OTHER EVENTS - RECOMMENDED EXPANSION PROGRAM @ 18,000 SQ.FT.
ALBERTA RESORTS/HOTELS/OTHER COMP VENUES
SMERF F&B
Canmore Weddings
Other Canmore Social Events
TOTAL EVENTS
CANMORE CONFERENCE CENTRE Fair Mkt Share
Avg SMERF F&B per Venue
Avg Canmore Wedding Per Venue
Avg Canmore Other Social Event Per Venue
AVERAGE PER VENUE
MARKET PENETRATION
SMERF F&B
Canmore Weddings
TOTAL PENETRATION
SMERF F&B
Canmore Weddings
TOTAL SPECIAL / OTHER EVENTS
2013
2014
2015
2016
2017
2018
2019
2020
815
823
831
840
848
857
865
874
170
30
1,015
2013
26
5
1
172
30
1,025
2014
27
6
1
173
31
1,035
2015
27
6
1
175
31
1,046
2016
27
6
1
177
31
1,056
2017
27
6
1
33
33
33
34
34
2013
2014
2015
2016
2017
2013
2014
2015
2016
2017
179
32
1,067
2018
27
6
1
33
2018
112%
125%
507%
126%
2018
30
7
5
42
180
32
1,078
2019
27
6
1
34
182
32
1,088
2020
27
6
1
34
2019
129%
142%
502%
143%
2019
35
8
5
48
2020
146%
158%
497%
159%
2020
40
9
5
54
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8.4 Summary of Canmore Conference Centre
Demand Projections
Tables 8-7 and 8-8 provide a summary of PKF’s demand
projections for the proposed Canmore Conference Centre from all
event types, relative to its competitive Tier 2 and 3 Convention
Centre market and its competitive Alberta hotels and resorts
market. Overall a new Conference Centre in Canmore is projected
to attract 130 events in its first year of operation, increasing to
179 events by Year 3.
While the Centre is projected to achieve less than its fair market
share of event business amongst its competitive Convention
Centre market (40 to 55%), it is projected to achieve 200% to
300% of its fair market share amongst its competitive Alberta
resorts and hotels that attract self-contained meetings and event
functions.
8.5
Projected Delegates and Room Nights
In estimating the number of delegates to be hosted by a new
Canmore Conference Centre and associated room nights
generated, the following assumptions have been utilized for each
type of event:
8.5.1 Conventions
Conventions of less than 250 delegates will average 150
persons, with larger Conventions attracting an average of
300 delegates.
The average Convention will be 2 days in duration.
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Table 8-7
TOTAL EVENTS - RECOMMENDED EXPANSION PROGRAM @ 18,000 SQ.FT.
2018
2019
2020
Conventions
17
20
23
Trade Shows
1
1
2
Consumer Shows
Non-Local Meetings
50
65
75
Local Meetings
20
25
25
Food & Beverage
30
35
40
Other Events
12
13
14
TOTAL EVENTS
130
159
179
TIER 2 & 3 MARKET PENETRATION
Conventions
Trade Shows
Consumer Shows
Non-Local Meetings
Local Meetings
Food & Beverage
Other Events
TOTAL PENETRATION
FAIR MARKET SHARE-TIER 2 & 3
TIER 2 & 3 COMPETITIVE SUPPLY
TOTAL CENTRES
% Share
TOTAL CENTRES
% Share
2018
61%
16%
0%
51%
27%
39%
41%
41%
318
2019
70%
16%
0%
66%
33%
45%
44%
49%
322
2020
79%
31%
0%
75%
33%
51%
47%
55%
325
2018
1
10
10.0%
18,000
803,362
2.2%
2019
1
10
10.0%
18,000
803,362
2.2%
2020
1
10
10.0%
18,000
803,362
2.2%
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Table 8-8
TOTAL EVENTS - RECOMMENDED EXPANSION PROGRAM @ 18,000 SQ.FT.
2018
2019
2020
Conventions
17
20
23
Trade Shows
1
1
2
Consumer Shows
Corporate Meetings
70
90
100
Incentive / Gov't Group
SMERF F&B
30
35
40
Canmore Weddings
7
8
9
Canmore Other Social Events
5
5
5
TOTAL EVENTS
130
159
179
COMPETITIVE MARKET PENETRATION
2018
2019
2020
Conventions
133%
155%
177%
Trade Shows
0%
0%
0%
Consumer Shows
0%
0%
0%
Corporate Meetings
317%
404%
444%
Incentive / Gov't Group
0%
0%
0%
SMERF F&B
112%
129%
146%
Canmore Weddings
125%
142%
158%
Canmore Other Social Events
507%
502%
497%
TOTAL PENETRATION
205%
249%
277%
FAIR MARKET SHARE- VENUES
63
64
65
COMPETITIVE HOTEL M&C SUPPLY
2018
2019
2020
1
1
1
TOTAL VENUES
32
32
32
% Share
3.1%
3.1%
3.1%
18,000
18,000
18,000
TOTAL VENUES
331,225
331,225
331,225
% Share
5.4%
5.4%
5.4%
All delegates will stay an average of 2 nights, with a
multiple occupancy factor of 1.25 guests per room.
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Based on these assumptions, a new Canmore Conference
Centre is projected to attract 2,850 delegates and an
estimated 4,560 room nights from its 17 Conventions in Year
1, increasing to 4,050 delegates and 6,480 room nights by
Year 3.
8.5.2 Trade Shows
Trade Shows will average 400 attendees with 40
exhibitors.
The average Trade Show will be 2 days, with 75% of
attendees staying overnight for 2 nights, based on single
occupancy.
The new Canmore Conference Centre is projected to attract 440
delegates and exhibitors and 660 room nights during its first year
of operation, increasing to 880 attendees/exhibitors and 1,320
room nights by Year 3.
8.5.3 Corporate Meetings and Conferences
The typical corporate meeting will be 1.5 days in duration
at an average size of 75 delegates.
Guests will stay on average 1.75 nights, based on single
occupancy.
The number of delegates attending corporate meetings at the
new Conference Centre has been estimated at 5,250 in Year 1
increasing to 10,000 by Year 3. This demand segment will
generate the majority of accommodation demand for the Town at
10,500 room nights in Year 1, increasing to 15,000 room nights
by Year 3.
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8.5.4 Social F&B / Other Events
SMERF-related Food and Beverage events are
expected to be 1 day events with an average of 200
persons.
These types of events will attract larger guest parties,
average 2.25 guests per room, staying 2 nights.
Canmore Weddings are expected to attract an average
of 150 guests, staying for 2 nights, with an average party
size of 2.25.
Other Canmore Social Events have been projected to
attract 100 guests per function, staying 1.5 nights with
an average party size of 2 persons staying 1 night.
By its 3rd year of operation, the Canmore Conference Centre
is expected to host close to 10,000 guests stemming from
Social Events, generating 8,400 room nights for the Town.
8.5.5 Total Delegates and Room Nights
Table 8-9 provides a summary of the total delegates and room
nights generated by the proposed Canmore Conference Centre
over its 1st 3 years of operation.
Based on the preceding analysis, the Conference Centre is
forecast to host close to 180 events, attracting 22,300
delegates/attendees, which in turn will generate 29,400 room
nights by its 3rd year of operation. An estimated 2-in-every 3
room nights generated by functions held at the Canmore
Conference Centre will be incremental new demand for the
Town, equating to an estimated 19,400 additional room nights.
Table 8-9
Total Projected Delegates/Attendees and Room Nights Generated
Type of Event
Year 1
Year 2
Year 3
Conventions
17
20
23
Trade Shows
1
1
2
Corporate Meetings
70
90
100
F&B Social/Other
42
48
54
Total Events
130
159
179
Delegates
Conventions
2,850
3,450
4,050
Trade Shows
440
440
880
Corporate Meetings
5,250
6,750
7,500
F&B Social/Other
7,550
8,700
9,850
Total Delegates
16,090
19,340
22,280
Event Days
Conventions
34
40
46
Trade Shows
2
2
4
Corporate Meetings
105
135
150
F&B Social/Other
42
48
54
Total Event Days
183
225
254
Delegate Days
Conventions
5,700
6,900
8,100
Trade Shows
880
880
2,080
Corporate Meetings
7,875
10,125
11,250
F&B Social/Other
7,550
8,700
9,850
Total Delegate Days
22,005
26,605
31,280
Room Nights
Conventions
4,560
5,520
6,480
Trade Shows
660
660
1,320
Corporate Meetings
9,188
11,813
13,125
F&B Social/Other
6,392
7,414
8,436
Total Room Nights
20,799
25,406
29,361
2013 M&C Room Nights in Canmore
38,779
Incremental New M&C Room Nights to Canmore
19,400
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8.6 Market Assessment and Comparison with
Other Destinations
The Town of Canmore currently has 18 hotels offering 1,630
rooms and 34,675 square feet of meeting space. While the
overall accommodation market achieved an annual occupancy of
48% in 2013, demand levels peak during the summer months and
on weekends, leaving capacity to complete for meetings and
convention demand during the off season months and mid-week
periods.
In 2013, Canmore’s event demand generated an
estimated 38,800 occupied room nights for the Town’s
accommodation sector, equating to 13.5% of overall demand.
With the addition of a new Conference Centre offering 18,000
square feet of rentable space, the Centre is forecast to host close
to 180 events and 22,300 delegates/attendees to the Town by its
3rd year of operation, which in turn will generate 29,400 room
nights. An estimated 2-in-every-3 room nights generated by the
Centre will be incremental new M&C demand for the Town,
equating to an estimated 58,000 M&C room nights. Assuming
that there is no displacement of existing demand and no further
hotels enter the market, the addition of a Conference Centre will
contribute to a 59% occupancy for the Town – a 5% point
increase over 2014 levels. Based on the forecasted utilization
levels for the Centre, M&C demand is projected to comprise 17%
of overall demand to the Town by its stabilized year of operation.
The Whistler market offers over 5,400 rooms within its primary
hotel market and 105,000 square feet of meeting space. With
leading hotel brands, including Fairmont, Hilton, Westin, Four
Seasons and Pan Pacific, represented in the market and a 26,400
square foot Whistler Conference Centre, the market attracts an
estimated 130,000 room nights of M&C demand.
The Mont Tremblant market offers 2,000 rooms, including major
brands of Marriott, Westin, Hilton Homewood and Fairmont, and
48,000 square feet of meeting space, and attracts an estimated
63,000 M&C room nights. At 10,500 square feet of meeting space
provided in its Conference Centre, this market is underserviced in
terms of meeting space.
The Town of Blue Mountains offers a similar hotel inventory to
Canmore, at 1,550 rooms. This resort market includes hotel
brands such as Westin, Days Inn and Holiday Inn Express, and
offers 72,000 square feet of meeting space, including a 48,000
square foot Conference Centre. In 2013, Blue Mountain attracted
85,000 room nights of M&C demand, representing 1-in-every-3
room nights booked.
Table 8-10 below provides a comparison of Canmore’s current
situation and future position with the addition of a Conference
Centre to the comparable resort destinations of Whistler, Mont
Tremblant and Blue Mountain.
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Table 8-10
Pre and Post Canmore Conference Centre
and Comparable Destinations
Indicies
Destination
Canmore Current Situation
Canmore Conference
Centre (2020)
Comparable Destinations
Conference
Centre
(Rentable
Sq.Ft.)
0
18,000
Largest
Room
Hotel
Mtg
Space
Total
Meeting Total Room
Space Inventory
0
34,675
34,675
1,628
52,675
1,630
10,000
34,675
Whistler
26,380
16,500
78,380
104,760
Mont Tremblant
10,519
5,015
37,300
47,819
48,377
85,276
8,524
23,770
139,450
72,147
224,726
Blue Mountain
Total
Hotel Brands
Coast, Holiday Inn,
Ramada, Quality
Hilton, Westin, Four
Seasons, Pan Pacific,
Fairmont
5,400
Marriott Residence Inn,
Westin, Hilton
2,000 Homewood, Fairmont
Westin, Days Inn,
1,550 Holiday Inn Express
8,950
2013
Occupancy
2013 ADR
48%
$134
287,800
38,780
13%
24
21
1.12
320,720
58,000
18%
36
32
1.10
59% (Proj 2020)
M&C
Demand
M&C
% M&C Demand
Demand Per Rm
M &C M&C Rm
Sq.Ft.
Nights
per
Per
Room
Sq.Ft.
Total
Occupied
Rooms
58%
$205
1,133,300
130,000
11%
24
19
1.24
45%
$200
328,500
63,000
19%
32
24
1.32
46%
53%
$166
$198
257,400
1,719,200
85,000
278,000
33%
16%
55
31
47
25
1.18
1.24
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PHASE 1B:
FINANCIAL & FEASIBILITY
ASSESSMENT
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9.0 RECOMMENDED FACILITY
PROGRAM
9.1
Introduction
Based on the Phase 1A results, the following section details the
recommended development program for the proposed Canmore
Conference Centre as a stand-alone venue offering 18,000 square
feet of rentable space, which could effectively compete for
Convention and Meeting groups of up to 525 persons, and
accommodate the projected utilization levels described in Section
8.0 of this report. This option requires a site in the range of 3.5
acres. Ideally, a site in the range of 5 acres could accommodate
the proposed Conference Centre, with an adjacent allowance of 3
acres for future hotel development.
9.2
Meeting Room and Ballroom Breakdown
As discussed, we recommend that the Town consider building a
Conference Centre of 18,000 square feet of rentable
space, in order for Canmore to compete in today’s market and
reach its potential in the mid-term with the addition of future hotel
supply. Inclusive of public areas and front and back of house
support space, the full Conference Centre program calls for a
building of 41,400 square feet, with 427 parking spaces.
on 2 levels, a site of 3.6 acres would be required for the
recommended stand-alone Conference Centre.
However, as
indicated in Section 7.0, ideally the Town should consider a
site in the range of 5 acres in order to reach the full
potential of the proposed Conference Centre with future
hotel development.
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Table 9-1 shows the recommended breakdown of meeting rooms
and ballroom space. Capacities for each room are based on 16-20
square feet per delegate. The entire building is estimated to
cover approximately 41,400 gross square feet.
Table 9-1
PRELIMINARY MEETING ROOM PROGRAM
Square Feet
Capacity
MEETING ROOMS
Meeting Room A/B
2,100
120
Meeting Room C/D
2,400
130
Meeting Room E
240
12
Meeting Room F
240
12
Meeting Room G
245
15
Meeting Room H
245
15
Meeting Room I
930
50
Meeting Room J/K
1,600
90
Subtotal
8,000
533
BALLROOM
Ballroom B,C,D
7,000
400
Ballroom A,B
6,000
330
Ballroom C,D
4,000
225
Ballroom A
3,000
165
Ballroom B
3,000
165
Ballroom C
2,000
110
Ballroom D
2,000
110
Subtotal
10,000
667
TOTAL RENTABLE SPACE
18,000
1,200
As shown in Table 9-1 and Table 9-2, the facility program at the
proposed Canmore Conference Centre includes 8 meeting rooms,
with the potential to breakout to 11 rooms. Meeting Room
configurations range from 240 square feet to 2,400 square feet.
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Meetings Rooms E and F have been allocated 240 square feet
respectively, at a capacity of 12, while Rooms G and H both offer
245 square feet, at a capacity of 15. Meeting Room I could host
50 people within 930 square feet. The three largest rooms are
each divisible by 2: Meeting Room A/B covers 2,100 sq.ft. with a
capacity of 120, Room C/D covers 2,400 sq.ft. with a capacity of
130, and Room J/K covers 1,600 sq.ft. with a capacity of 90.
The Grand Ballroom is expected to cover 10,000 square feet,
divisible by 4, with a reception capacity of 667 guests and could
be combined to make either one large space or up to 3 alternative
combinations. These configurations would be appropriate for
exhibition, banquet and tradeshow functions, as well as larger
convention groups.
As noted, we believe that the overall size of the facility, the total
square footage allotted to the ballroom (10,000 square feet), and
the overall meeting space (8,000 square feet), has all been
appropriately allocated. As currently configured, the “comfort
capacity” of the facility for one convention is the range of 165
delegates, who would require 3,000 square feet of primary
meeting space in one room, 3,000 square feet of “dining” space in
a second room, and at least 3,000 square feet of tradeshow space
in a third room. By dividing the ballroom into 3, a convention of
165 would be able to meet in Ballroom A, eat in Ballroom B, and
attend a tradeshow in the combined Ballroom C,D.
If dividing into 3 groups of 55 for breakout sessions, they would
require three additional rooms with a minimum of 1,000 square
feet each. This could be accomplished with one group attending a
breakout session downstairs in Meeting Room A/B, another in
Meeting Room C/D, and the last in Meeting Room J/K.
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Table 9-2
CANMORE CONFERENCE CENTRE WITH PARKING STRUCTURE
RECOMMENDED DEVELOPMENT PROGRAM
Meeting Space
Meeting Space
Public Areas
Gross up @ 50%
Total
Parking
Total
Other
Land (3.6 acres)
Pre Opening Marketing & Sales
FF&E
Soft Costs @ 10%
Total
TOTAL PROGRAM
Land
Construction
FF&E
Pre Opening Marketing & Sales
Soft Costs @ 10%
TOTAL PARKING STRUCTURE
TOTAL PROJECT
Unit
1
1
1
3
Seats
667
533
1,200
Sq.ft.
10,000
8,000
2,700
20,700
41,400
Stalls Sq.ft./Stal Sq.ft.
427
400
170,667
427
400
170,667
Sq.ft.
158,417
3.6
-
158,417
20,700
41,400
Acres
Sq.ft.
Sq.ft.
3.6
-
-
158,417
41,400
158,417
20,700
-
41,400
170,667
212,067
It should be noted, that while the ideal “comfort capacity” for a
convention is in the range of 165 persons, the proposed facility
program could handle larger conventions of up to a maximum of
400 to 500 delegates.
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10.0 SITE ANALYSIS
Identify a list of potential sites for the location of a conference centre
10.1 Introduction
In relation to the potential location of the proposed Conference
Centre in Canmore, five publicly owned sites were identified by
CBT for initial consideration. This section contains analysis of the
various sites in order to rank them based on a number of
preliminary evaluation criteria confirmed by CBT and to assess the
potential of each site as a location for the proposed Conference
Centre.
Additional sites may be considered for the potential Conference
Centre, however, for the purpose of this report, only publiclyowned sites have been considered.
10.2 Evaluation Methodology
The evaluation methodology enables the systematic and objective
evaluation of a list of sites against various criteria to determine
the sites with higher potential. The figure below summarizes the
methodology.
The figure below summarizes the evaluation methodology.
10.3 List of Potential Publicly-owned Sites
A list of potential sites identified through previous analysis by CBT
was provided for the purpose of this site assessment. The
ownership status of these sites include Municipal and Provincial
lands. It is important to note that this analysis does not preclude
the consideration of other sites that may be identified for future
analysis. For the purpose of this report, only the publicly owned
sites have been assessed.
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Develop list of
evaluation factors
Allocate weightings to
each evaluation factor
Conduct site-specific
analysis against factors
Identify list of evaluation factors that reflect
key considerations underpinning the optimal
location of a conference centre
Apply weighting to each evaluation factor
based on Canmore objectives and priorities
Analyze each site’s specific characteristics
against the factors identified in the evaluation
framework
Rank the list of potential sites based on scored evaluations
The following five (5) publicly owned sites are being considered
for the proposed Conference Centre:
Travel Alberta Information Centre Site
Palliser Lands North and South Site
Downtown Parking Lot – East and West Site
Industrial Lands behind Heliport
Elevation Place
The table below summarizes information about the five (5)
publicly owned identified sites. Refer to Appendix A for the maps
of the sites.
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Table 10-1
CA NMORE CONFERENCE CENTRE
Potential Site Information - Publicly Owned Sites
Map
Number
Location
Ownership
Land Parcel Size
Zoning
Provincial
4.62 Acres
• Visitor
Information Centre
District
Travel Alberta
Information Centre Site
1
2801 Bow Valley Trail,
Canmore
2& 3
Palliser Lands North and
South
Provincial
• North: 5.78 Acres
• No Zoning
• South: 5.56 Acres
Site Characteristics
• Fair distance to downtown core
• May require some form of
connection to the downtown core
• The Province is looking to
create a ‘landmark’ building on
this site thus could be a multi-use
visitor centre
• Highway access
• Parking availability
• May consider some form of
connection to the downtown core
• May accommodate other
potential uses to be combined
with the conference centre
Constraints/Challenges
• Storm water Pond
• 1A Highway
• Lands are susceptible to
flooding and underground
utilities must be re-located
Palliser lane, Canmore
Downtown Parking Lot –
East and West
4& 5
East: 802 6th Avenue ,
Canmore
West: 907 7th Avenue,
Canmore
Municipality
• Town Centre
• West: 0.62 Acres
District
• East: 1.36 Acres
• DC District
Industrial Lands behind
Heliport 6
Municipality
10.85 Acres
In the area near 91 Bow
Valley Trail, Canmore
Elevation Place
7
700 Railway Ave.,
Canmore
Municipality
• Size of Elevation
place: 77,000 sq ft
• Land parcel size:
5.14 Acres
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• Located in the downtown core
• Potential space constraints
• May consider conference centre
• Potential traffic congestion
located above a two-level parking
impacts
facility
• Proximity to hotels
• Southern Business
• Fairly long walk to downtown
District
• Site is slightly hidden in the
Town
• Site is between the railroad and
Railway Avenue
• 1 block from Bow Valley Trail
• Direct control
• Less than 1 km to the
multiplex district
TransCanada Highway
• There are 320 parking spaces
available to the Elevation place
• Heliport located close by
• Potential parking concerns
• The recent development of
Elevation Place, had some
difficulties with contamination
due to previous use of this site
for the railway
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10.4 Evaluation Framework
Table 10-2
Site Analysis Evaluation Factors and Weightings
The following evaluation factors and weightings were developed
based on input and confirmation from CBT. The weightings
indicate the level of importance of the factors to the stakeholders.
Note: For the purpose of the site analysis at this stage, the
evaluation factors have been structured on the assumption that
the Town will lead the development of the proposed Conference
Centre (rather than the private sector) and will in turn be
responsible for the selection of the optimal site. Land acquisition
or access arrangements have not been assessed in this analysis,
however, will need to be considered based on the potential shortlist of sites.
Evaluation Factor
Weighting
1
Relative proximity to critical
mass of hotels
40%
2
Proximity to the downtown
core and/or availability of
transportation access
3
4
5
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Impact of land
characteristics on potential
cost of development
Land availability for potential
future expansion
Site visibility
25%
20%
10%
5%
Description
Depending on if the Town decides to pursue a standalone conference centre, it is very important for the site
to be close to a critical mass of hotels, as noted by the
majority of meeting planners surveyed who identified this
as a significant factor driving conference location
selection. In Canmore, the concentration of hotels is
outside the downtown core, largely along Bow Valley
Trail with proximity to the Trans-Canada Highway.
A site located close to the downtown core (i.e., short
walk or accessible by convenient public transit or shuttle)
can provide an opportunity for delegates to easily visit
places downtown for restaurant and retail activities which
is expected to be a key economic driver of the conference
centre.
The key drivers of incremental cost of development may
include site-specific characteristics that may lead to
higher construction-related costs (e.g. environmental
conditions, land constraints etc.).
The land parcel size will be a factor in assessing the
conference centre facility's potential for future expansion.
The preferred conference option based on the market
assessment, which is a stand-alone venue with a 2 level
parking structure, may require approximately 3.6 acres.
Expansion for a potential hotel build out may require an
additional 1.7 acres, assuming the hotel is built on 5
floors, and the existing 2 level parking structure is not
expanded. A larger parcel of land will provide more
flexibility for future expansion.
The site’s ability to provide a visible location for the
conference centre will enhance its profile within the
Town. Visibility from the highway is an important
consideration which will aim to advertise the proposed
Conference Centre to the highway users.
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10.5 Site Selection Analysis
Each site is assessed against each of the five evaluation factors,
and scored accordingly. Each site is given a score out of 10 for
each evaluation criterion. In collating all the scores, based on the
weighting of each evaluation factor, a weighted score is calculated
for each factor, per site. The weighted scores are then summed to
produce the overall score for each site, which is used to rank the
sites in order of preference.
10.5.1 Evaluation Factor 1 - Relative proximity to critical
mass of hotels
As previously noted, the relative proximity to
hotels is a key factor driving the location
Conference Centre. A majority of the hotels
along the Bow Valley trail, with proximity to
highway.
Table 10-3
Evaluation Factor 1 - Scoring Methodology
Driving Distance Range
Evaluation Score
Less than 1 km
10
1.01 km – 1.5 km
8
1.51 km – 2.0 km
6
2.01 km – 2.5 km
4
Greater than 2.51 km
2
a critical mass of
of the proposed
are concentrated
the Trans-Canada
In order to objectively score the identified locations in relation to
this evaluation factor, the various hotels were mapped. Best
Western Plus Pocaterra Inn and StoneRidge Mountain Resort
Canmore were assumed to be the boundaries of the hotel
concentration area. Econo Lodge Canmore was assumed to be the
most central hotel. The approximate driving distance from the
identified sites to the Econo Lodge were mapped, and the sites
scored accordingly based on respective distances.
For this evaluation factor, the sites were scored according to Table
10-3 below. Table 10-4 provides the driving distance from the
potential sites to Econo Lodge Canmore in kilometres.
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10.5.2 Evaluation Factor 2 - Proximity to the downtown
core and/or availability of transportation access
10.5.3 Evaluation Factor 3: Impact of land characteristics
on potential incremental cost of development
Canmore has a vibrant downtown core and offers a number of
restaurants and points of interest. In order to evaluate the sites
against this factor, the Tourism Canmore Kananaskis Visitor
Information Centre was estimated to be central in assessing
proximity of the various sites to the downtown core. The shortest
walking time between the identified sites and the Tourism
Canmore Kananaskis Visitor Information Centre was researched.
The same address assumptions used for Evaluation factor 1 apply
here.
The land characteristics which may negatively impact the cost of
the development of the proposed Conference Centre are
considered in this section. As noted earlier, the land ownership
status has not been assessed in this analysis.
For this evaluation factor, the sites were scored according to the
table below. Table 10-6 provides the walking time from the sites
to Tourism Canmore Kananaskis Visitor Information Centre.
Table 10-5
Length of Walk
Evaluation Score
Less than 10 minutes
10
11 – 20 minutes
8
21 – 30 minutes
4
Greater than 30 minutes
2
Table 10-6
Evaluation Factor 2 - Site Analysis
Walking time to Tourism
Canmore Kananaskis Visitor
Site
Information Centre
Travel Alberta
25 Minutes
Palliser Lands
32 Minutes
Downtown Parking Lot
2 Minutes
Industrial Lands
32 Minutes
Elevation Place
9 Minutes
Score
(Out of 10)
4
2
10
2
10
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Any land condition that will for example require additional cost of
design and/or construction (or other development cost) to address
issues related to utilities relocation, flooding, erosion, rocky lands,
etc., will be scored lower in comparison to the other
characteristics in the analysis. [Note: Site conditions and potential
impacts on a development need to be assessed in more detail by
the Town]
The sites were scored as follows:
Table 10-7
Land characteristics impact on
cost of development
Land characteristics that are likely
to materially increase the cost of
the development
Characteristics that may affect the
cost of the development
No applicable land characteristics
that will result in incremental
development cost
Evaluation Score
3
6
10
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Table 10-8
Impact of land
characteristics on
Site
potential incremental
Travel Alberta
Palliser Lands
Industrial Lands
Score
(Out of 10)
Land Characteristics:
Storm water pond
6
Land Characteristics: The
lands are susceptible to
flooding and underground
utilities have to be relocated
3
No incremental cost of
development expected
10
Heliport located close by.
2
Potential impact of proximity
Elevation Place
No incremental cost of
development expected
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10.5.4 Evaluation Factor 4: Land availability for potential
future expansion
For this evaluation factor, the size of the site is critical. As noted
earlier, the preferred facility option, based on the market
assessment is a 3.6 acres stand-alone conference facility. Note
that the site analysis is based on the assumption that the potential
sites are sufficient for the minimum requirement of the proposed
Conference Centre (which will need to be confirmed based on the
expected size and design of the proposed facility).
To allow for potential future expansion, an additional 1.7 acres
may be required to build a 5 floor hotel with additional conference
space (if required). Therefore, an ideal site will be at least 5.3
acres. The expansion estimate of 1.7 acres assumes that no
additional parking will be built.
The sizes of the identified sites were compared to the potential
land requirement for future expansion. The sites were scored as
follows:
Table 10-9
Evaluation
Site Size
Score
Greater than 5.3 acres
10
Less than 5.3 acres
2-5
Table 10-10
Land availability for
potential future
Site
expansion
4.62 Acres
Travel Alberta
5
North: 5.78 Acres
South: 5.56 Acres
Palliser Lands
The site is sufficient for a
potential future hotel
expansion
10
West: 0.62 Acres
East: 1.36 Acres
The site is not sufficient for
a hotel expansion
2
10.85 acres
Industrial Lands
Elevation Place
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a hotel expansion
Score
(Out of 10)
The site is sufficient for a
potential future hotel
expansion
5.14 acres (Land Parcel
size)
a hotel expansion
10
5
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10.5.5 Evaluation Factor 5 – Site visibility
10.6 Evaluation Summary
This evaluation factor considers the relative visibility of the site
from the Trans-Canada Highway. It is assumed that any site in
close proximity to the highway has high visibility to drivers
travelling through Canmore. The sites were mapped to assess
proximity of each site to the highway.
As per the evaluation summary, among the publicly owned sites,
Elevation Place and the Downtown Parking Lot scored the highest
in the analysis, largely driven by their proximity to the majority of
hotels in the Town as well as to the downtown core. However,
additional review will be required to further assess the feasibility
of both sites based on the requirements of the potential
Conference Centre. As an initial step, the extent of available land
on both sites needs to be reviewed in more detail to make a
determination if this is sufficient for a proposed Conference Centre
and associated parking requirements.
Any site close enough that it would be seen from the highway
scored ten (10) points, and two (2) points if otherwise.
For this evaluation factor, the sites were scored as follows:
Table 10-11
Site
Site Visibility
Score
(Out of 10)
Travel Alberta
Close to highway;
High site visibility
10
Palliser Lands
Close to highway;
10
Downtown Parking Lot Low site visibility
2
Industrial Lands
Close to highway;
10
Elevation Place
Low site visibility
2
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Site
Table 10-12
EVALUATION SUMMARY
Proximity to
Impact of land
downtown core
characteristics on
Relative proximity and/or availability of
potential
to critical mass of
transportation
incremental cost of
hotels
access
development
(40%)
(25%)
(20%)
Land availability for
potential future
expansion
(10%)
Site visibility
(5%)
Total Score
(100%)
Travel Alberta
32
10
12
5
5
64
Palliser Lands
8
5
6
10
5
34
24
25
20
2
1
72
Industrial Lands
8
5
12
10
5
40
Elevation Place
32
25
20
5
1
83
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Table 11-1 provides publicly available data for 8 North American
facilities sourced from feasibility studies conducted between 2005
and 2010. Two types of costs are identified in Table 11-1. These
are:
11.0 INDICATIVE CAPITAL COSTS
11.1 Introduction
Indicative capital cost estimates for the proposed Conference
Centre have been prepared based on the preferred stand-alone
facility option size of 41,400 square feet. Deloitte developed high
level cost estimates based on benchmarked capital costs from
comparable precedent conference centres and industry estimates.
11.2 Capital Cost Benchmark Methodology
A high level jurisdictional scan of North American
Conference/Convention centre projects was conducted to obtain
information such as the size and the average cost per square foot
for each centre. Note that the centres researched were either new
builds or expansion projects.
Construction Costs – These are the direct costs of a
construction project such as labor, materials, basic building
services, shell features, basic mechanical systems etc.
Soft Costs – These are additional project capital costs that
are associated with the physical construction of a facility.
Soft costs typically include development costs (such as
design costs, engineering fees, permits, administrative
costs etc.), Furniture, Fixtures and Equipment (FF&E) and
contingency.
Table 11-1
JURISDICTIONAL SCAN OF CONFERENCE/CONVENTION CENTRE CAPITAL COST ESTIMATES
Source Year
Currency
Capital Cost Estimate
Gross Size (Sq. Ft)
Conference / Convention Centre
Country
Halifax Convention Centre
Canada
2010
CAD
$ 140 million
346,000
$
404
Fox Cities, Wisconsin
Hendersonville, North Carolina
Fredericton Convention Centre
Prince Edward Island Convention Centre
(Expansion)
USA
USA
Canada
2008
2010
2010
USD
USD
CAD
$ 40 million
$ 8 million - $ 14 million
$ 24.2 million
114,000
28,050 - 42,000
70,000
$
351
$275 to $325
345
Canada
2010
CAD
$ 17.5 million
36,000
$
486 Construction costs and Soft Costs
Shaw Centre (formerly Ottawa Convention Centre)
Canada
2010
CAD
$ 170 million
192,000
$
St. John’s Convention Centre (Expansion)
RBC Convention Centre Winnipeg expansion
(formerly Winnipeg Convention Centre)
Canada
2009
CAD
$ 11.2 million
32,000
$
Canada
2005
$ 119.5 million
478,000 $
885 Construction costs and Soft Costs
Newly built space ($7.8 million)
356 Existing space fit up ($3.4 million)
Construction Cost ($104.7 million)
250 Soft Costs ($14.8 million)
CAD
Cost / Sq. Ft
$
Items included in the cost
Construction Costs ($119 million)
*Soft Costs ($21 million)
Construction costs ($31 million)
Soft costs ($9 million)
Construction costs only
Construction costs and Soft Costs
*Soft costs include development costs (e.g. design costs, architectural and engineering fees, administrative feesetc.), contingencies and furniture, fixtures and equipment
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Table 11-2
SELECTED BENCHMARK CAPITAL COST ESTIMATES (2015 dollars)
Country
Cost (CAD/Sq. Ft.)
Cost Type
USA
$
357
Construction Costs
Canada
$
399 Construction Costs and Soft Costs
11.3 Indicative Capital Cost Estimates – Proposed
Conference Centre
Two of the convention centres in the table were selected as
potential comparables because the gross facility sizes are in the
same order of magnitude as the proposed Canmore Conference
Centre. In addition, these facilities are new builds and not
expansion projects. The selected benchmark facilities are shown in
Table 11-2 above, adjusted to 2015 Canadian dollars, derived
using the assumptions outlined in Table 11-3. Note that the cost
for Hendersonville is the average of range of costs from Table 111.
Table 11-4
SOFT COSTS ASSUMPTIONS
Soft Costs
Assumption
Development Costs
5% - 15% of Construction Costs
Contingency
Furniture, Fixtures and Equipment
Total Soft Costs
Table 11-3
OTHER ASSUMPTIONS
Other Assumptions
Assumption
2010 USD Exchange Rate (Bank of Canada)
1.03 CAD
Yearly construction escalation index
3%
Table 11-5 presents the total estimated cost per square foot for
each of the comparable facilities. Based on this information, the
average total estimated cost is $423 per square foot.
A 15% range was applied to this cost to obtain a low and high
total cost estimate of $359 - $486 per square foot.
Source
Bank of Canada
Industry Experience
As noted from Table 11-1, the Hendersonville Conference Centre
costs are solely Construction costs, while the Fredericton
Convention Centre costs include both Construction and Soft Costs.
To allow for the appropriate comparison of construction costs
across all three facilities, Deloitte has applied a factor of 15-35%
(25% average) to estimate the total cost for the Hendersonville
facility. Table 11-4 outlines the cost assumptions for the
components of the soft costs.
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Average Total Cost Estimate
Table 11-5
SELECTED BENCHMARK TOTAL COST ESTIMATES (2015 dollars)
Country
Cost (CAD/Sq. Ft.)
USA
$
446
Canada
$
399
$
423
Cost Type
Construction Costs and Soft Costs
Construction Costs and Soft Costs
Therefore, using the precedent examples as the basis to develop a
reasonable range that may be applicable to the proposed
Canmore Conference Centre, the estimated total capital cost
range for the proposed facility is $15 - $20 Million.
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Based on the cost range, and applying the estimated 25% factor
for soft costs, the estimated construction cost range is $319 $357 per square foot, which implies an estimated hard
construction cost range of $13 - 15 Million for the proposed
Conference Centre.
11.4 2014 Altus Cost Guide – Industry
Benchmark
In order to assess the construction cost estimates noted above
relative to broader industry cost data, the 2014 Altus Cost Guide
has been reviewed to provide additional context. The 2014 Altus
Cost Guide provides average construction cost estimates for
various building types in selected Canadian cities including Calgary
(which is the nearest major centre to Canmore).
Parking garage, the Construction Cost range is $75-$90 per
square feet. Based on the estimated square footage of 170,667,
and unit costs updated to 2015 dollars, the estimated total cost
range for the proposed parking facility is $16 - $20 Million.
11.6 Summary of Indicative Capital Cost
Estimates
In summary, the estimated total capital cost range for the
proposed Conference Centre and parking facility is $31 - $40
Million. Note that this estimate does not include land costs which
will vary depending on the selected site.
The building type selected from the 2014 Altus Cost Guide is a
Four Star full service hotel which includes dining and conference
facilities, considered to be most comparable to a stand-alone
conference centre. Based on the Guide, the Construction Cost
range for a similar facility from the 2014 Altus Cost Guide is $215
-$280 per square foot. This estimate is lower than the conference
centre market benchmarks used in the development of the capital
cost estimate for the proposed Canmore facility (construction cost
estimate of $319 - $357 per square foot), suggesting that
conference centre costs may be higher than typical hotel facilities.
11.5 Indicative Capital Cost Estimates – Parking
Facility
Based on the PFK assessment, the recommended parking facility
is an above grade two level parking structure with 427 parking
spaces. The unit construction cost estimate for the parking facility
was sourced from the Altus Cost Guide. For a Free standing
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12.0 OPERATING PROJECTIONS
12.1 Introduction
Operating Projections have been prepared for the proposed
Canmore Conference Centre over a five-year projection period. In
preparing these projections, we have compared the operating
performance of other Tier 2 and 3 Canadian Convention Centres
and Canmore area hotels & resorts with meeting space, in order
to project the subject Conference Centre’s results based on a
number of variables, including, but not limited to: the size of the
building, occupied space, the number of events/event days, the
number of delegates/delegate days and inflation. It should be
noted that financial operating projections for the Centre are net of
any property taxes.
Table 12-1
PROJECTED UTILIZATION BY MEETINGS/CONVENTIONS & BANQUETS/SOCIAL EVENTS
Year 1
Year 2
Year 3
Year 4
FACILITY PROFILE
Largest Divisible Room/Ballroom (sq.ft.)
Back of House/Other
Total Facility
UTILIZATION SUMMARY
TOTAL MEETINGS/CONVENTIONS/TRADE SHOWS
Events
Event Days
Delegates
Delegate Days
TOTAL BANQUETS/SOCIAL
Events
Event Days
Attendees
Attendee Days
TOTAL EVENTS
Events
Event Days
Delegates/Attendees
Delegate Days
Year 5
10,000
8,000
23,400
41,400
24.2%
19.3%
56.5%
100.0%
10,000
8,000
23,400
41,400
24.2%
19.3%
56.5%
100.0%
10,000
8,000
23,400
41,400
24.2%
19.3%
56.5%
100.0%
10,000
8,000
23,400
41,400
24.2%
19.3%
56.5%
100.0%
10,000
8,000
23,400
41,400
24.2%
19.3%
56.5%
100.0%
88
141
8,540
14,455
67.7%
77.0%
53.1%
65.7%
111
177
10,640
17,905
69.8%
78.7%
55.0%
67.3%
125
200
12,430
21,270
69.8%
78.7%
55.8%
68.3%
125
200
12,430
21,270
69.8%
78.7%
55.8%
68.3%
125
200
12,430
21,270
69.8%
78.7%
55.8%
68.3%
42
42
7,550
7,550
32.3%
23.0%
46.9%
34.3%
48
48
8,700
8,700
30.2%
21.3%
45.0%
32.7%
54
54
9,850
9,850
30.2%
21.3%
44.2%
31.7%
54
54
9,850
9,850
30.2%
21.3%
44.2%
31.7%
54
54
9,850
9,850
30.2%
21.3%
44.2%
31.7%
130
183
16,090
22,005
100.0%
100.0%
100.0%
100.0%
159
225
19,340
26,605
100.0%
100.0%
100.0%
100.0%
179
254
22,280
31,120
100.0%
100.0%
100.0%
100.0%
179
254
22,280
31,120
100.0%
100.0%
100.0%
100.0%
179
254
22,280
31,120
100.0%
100.0%
100.0%
100.0%
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12.2 Utilization Projections
Table 12-1 provides a summary of the utilization projections for
the proposed Canmore Conference Centre over its first 5 years of
operation, with consideration given to the total number of
Meetings, Conventions and Trade Shows, in comparison to the
total number of Banquets and other Social Events.
As shown, by the Centre’s 3rd year of operation,
Meetings/Conventions/Trade Shows are expected to comprise
70% of the total event activity, representing approximately 80%
of the event days; 68% of the delegate days, and 56% of
delegates. The balance of event activity is expected to be
comprised of half or full-day food & beverage related social events
and banquets.
12.3 Departmental Revenues and Expenses
12.3.1 Space Rental Analysis
Revenues
Space rental rates for Conference Centres tend to be negotiated
according to a number of factors, including: the size and duration
of the event; ancillary revenues generated from food and
beverage activities; exhibition requirements; and the number of
room nights required from the hotel sector. Generally speaking,
rental rates are highest for conventions, multi-day large meetings
and conferences, and lowest for local meetings and other events.
Table 12-2 provides an overview of Year 1 rental rates for the
proposed Canmore Conference Centre, based on rates achieved at
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comparable Tier 2 and 3 Convention Centres. Rates have been
inflated by 2.5% on an annual basis for the balance of the project
period, to increase with inflation. Table 12-3 details the projected
rental revenues for the Conference Centre over its first five years
of operation. The model reflects an effective rental income at 90%
of the total for each year, after discounting. Space discounting
would be required to negotiate for major events that
generate multiple room nights in the community. The
Convention Centre should not provide discounts for small
social events and local meetings.
Table 12-2
YEAR 1 RENTAL RATES BY MEETING ROOM (As Advertised)
Square Feet Capacity Rental Rate
MEETING ROOMS
Meeting Room A/B
2,100
120
$945
Meeting Room C/D
2,400
130
$1,080
Meeting Room E
240
12
$108
Meeting Room F
240
12
$108
Meeting Room G
245
15
$110
Meeting Room H
245
15
$110
Meeting Room I
930
50
$419
Meeting Room J/K
1,600
90
$720
Subtotal
8,000
533
BALLROOM
Ballroom B,C,D
7,000
400
$3,150
Ballroom A,B
6,000
330
$2,700
Ballroom C,D
4,000
225
$1,800
Ballroom A
3,000
165
$1,350
Ballroom B
3,000
165
$1,350
Ballroom C
2,000
110
$900
Ballroom D
2,000
110
$900
Subtotal
10,000
667
$5,000
TOTAL RENTABLE SPACE
18,000
1,200
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Direct Expenses
Space rental expenses include payroll and benefits associated with
set up and tear down of events, operating supplies, cleaning and
general housekeeping of the facility. For the purposes of this
analysis, we have assumed meeting room events will require 6
persons for set up and take down purposes, as compared to 20
hours for Ballroom events, at an hourly wage of $16.50 in Year 1.
Year 1
Event Days
Half-Day Events
Full-Day Events
Total Event Days
Revenues
Space Rentals
Effective Rental Income @ 90% after Disco
Net Revenue
Management Payroll
Director of Event Facility Services
Benefits @ 25%
Event Set/Up Takedown Payroll
Meeting Room Event Person Hours (6 hrs p
Ballroom Event Person Hours (20 hrs per e
Hourly Wage
Payroll
Benefits @ 25%
Total Payroll & Benefits
Cost per event day
Total Direct Operating Expenses
Net Operating Departmental Income
42
141
183
Other direct operating expenses have been estimated at 20% of
space rental revenue, and increased based on a 2.5% inflationary
factor.
In the proposed Conference Centre’s 1st year of operation, direct
expenses are projected at an estimated $196,000, or 64% of total
event revenues after discounting, as shown in Table 12-3.
Table 12-3
EVENT OPERATIONS
OPERATING FORECASTS
Year 2
Year 3
23.0%
77.0%
100.0%
48
177
225
100.0%
$413,000
$371,700
$371,700
$489,000
$440,100
100.0% $440,100
$75,000
$19,000
$77,000
$19,000
718
1,266
$16.50
$33,000
$8,300
$135,300
$0
$61,000
$196,300
$108,800
$339,000
$305,100
$305,100
54
200
254
21.3%
78.7%
100.0%
54
200
254
Year 5
54
200
254
21.3%
78.7%
100.0%
$501,000
$450,900
100.0% $450,900
$514,000
$462,600
100.0% $462,600
100.0%
$79,000
$20,000
$81,000
$20,000
$83,000
$21,000
10.8%
2.7%
44.3%
911
1,464
$16.91
$40,000
$10,000
$146,000
1,013
1,702
$17.34
10.8%
$47,000
2.7%
$11,800
39.3% $157,800
1,013
1,702
$17.77
10.7%
$48,000
2.7%
$12,000
35.9% $161,000
1,013
1,702
$18.21
10.6%
$49,000
2.7%
$12,300
35.7% $165,300
10.6%
2.7%
35.7%
20.0%
64.3%
35.7%
$0
$74,000
$220,000
$151,700
$0
20.0%
$88,000
59.2% $245,800
40.8% $194,300
$0
20.0%
$90,000
55.9% $251,000
44.1% $199,900
$0
20.0%
$93,000
55.7% $258,300
44.3% $204,300
20.0%
55.8%
44.2%
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21.3%
78.7%
100.0%
Year 4
21.3%
78.7%
100.0%
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12.3.2 Food and Beverage Analysis
Expenses
For the purposes of our analysis, we have assumed that both
Food and Beverage and AV/Event Services will be internalized at
the proposed Canmore Conference Centre, rather than outsourced
to third party operators.
Revenues
Food and beverage revenues have been projected on a delegate
day basis, according to following per capita assumptions by event
type, growing with inflation (2.5%) over the 5-year period:
Event Type
Conventions
Trade Shows
Corporate Meetings
SMERF F&B
Canmore Weddings
F&B
Expenditure
Per Delegate
Day
$93
$40
$63
$65
$100
$70
Overall food and beverage revenues have been projected at
$72.30 per delegate day in the first operating year. Over the 5
year projection period, F&B revenues for the proposed Conference
Centre have been estimated at a per delegate spend of between
$72 and $79. At these levels, the proposed Conference Centre is
expected to generate $1.6 Million in revenues for Year 1,
increasing to approximately $2.5 Million by Year 5.
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Food and beverage expenses include: payroll for the Director of
Food & Beverage at $75,000 plus benefits, as well as kitchen and
wait staff, food costs at 30% of revenues, and other related
equipment and supply expenses. Based on the industry trends for
comparable type, size and style of operation, food and beverage
departmental expenses have been projected at 73% of Food &
Beverage Revenues, reaching $1.2 Million in Year 1 and increasing
to $1.8 Million in Year 5.
12.3.3 Other Event Services Analysis
Revenues
Other revenue sources include income from customer services for
exhibit set-up for third parties, A/V and equipment rental,
promotions and other minor sources of income. A/V and other
operating revenues have been estimated at $1,500 per Meeting /
Convention / Trade Show event day, and $1,125 per Banquet /
Social event day, which at 183 event days equates to total
revenues of $259,000 in Year 1, increasing to $398,000 by Year 5
of operation.
Expenses
Other Event Services payroll and benefits include an Event
Services Coordinator and contract AV staff at a combined total of
$75,000 plus benefits, and direct operating expenses, which have
been projected at 25% of other event revenues. Total expenses
approximate $158,000 or 61% of Other Event Services revenues
in Year 1, decreasing to an estimated 51% of revenues by Year 5.
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12.4 Undistributed Expenses
12.4.1 Administration and General
This category includes the salary and wages of administrative
staff, credit card commissions, cash overages and shortages, bad
debt expense, data processing, executive office expenses, general
insurance, professional fees, security and travel. The following 4
administrative staff positions and payroll allocations have been
included in Year 1:
Administrative Positions
General Manager
Salary (Year 1)
$100,000
Controller
$75,000
Executive Assistant
$40,000
Benefits
$53,750
Total Payroll Plus Benefits
$268,750
Other
Administrative
expenses,
including
professional
fees/services, finance charges and other direct costs have been
estimated at approximately $20,000 in Year 1, increasing to an
estimated $24,000 by Year 5. As such, total administrative and
general expenses have been estimated at $289,000 in Year 1, or
13.4% of total revenues.
Marketing & Sales Positions
Salary (Year 1)
Director of Sales and Marketing
$75,000
Catering & Sales Manager
$50,000
Benefits
$31,250
$156,250
It has also been forecast that the department will budget $75,000
towards sales and promotion. Total marketing and sales expenses
are expected to reach $231,000 in Year 1, or 10.7% of gross
revenues.
12.4.3 Property Operation and Maintenance
This expense category consists of salaries, wages and employee
benefits for maintenance personnel, normal building maintenance,
electrical and mechanical equipment, grounds maintenance,
operating supplies, maintenance contracts, furniture cleaning and
repair, waste removal and uniforms. For the purposes of these
projections, we have included a Building Manager and one
maintenance staff, for a total payroll and benefit allocation of
$144,000 in Year 1, increasing to $159,000 by Year 5.
Property Operations Positions
Salary (Year 1)
Building Manager
$65,000
12.4.2 Marketing
Maintenance
$50,000
A Director and Catering & Sales Manager will oversee the Sales
and Marketing Department. The total payroll and benefits for the
department have been estimated at $156,000 in Year 1,
increasing with inflation to an estimated $172,000 by Year 5.
Benefits
$28,750
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$143,750
Other operating expenses have been estimated at $83,000 for
materials and supplies, contracts/services, and other related
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expenses. As such, total property operations and maintenance
expenses have been estimated at $227,000 in Year 1,
representing 10.5% of total revenues.
12.4.4 Energy
Energy expenses, related to the heat, light and power of the
Conference Centre, have been projected at $2.50 per square foot,
equating to $104,000 in Year 1 for a total building of 41,400
square feet, increasing to over $116,000 by Year 5.
12.4.5 Insurance
Insurance expenses have been estimated at $75,000 in Year 1,
increasing by inflation for the remainder of the projection period.
12.4.6 Provision for Capital Replacement
A reserve for asset replacement has been included to account for
the replacement of furnishings and fixtures as required to
maintain the quality of product offered by the Conference Centre.
As a percentage of gross revenues, these expenditures have been
projected at 5.0% per year. This will amount to approximately
$728,000 over the five-year projection period.
12.5 Staffing
The total Year 1 staffing requirements for the proposed Canmore
Conference Centre have been presented in Table 12-4. As shown,
an estimated 24 full-time equivalent positions are recommended,
which based on industry standards and comparable facilities,
equates to $1.3 Million in payroll and benefits in Year 1.
1
1
1
1
1
1.5
1
1
1
1
Table 12-4
STAFFING & PAYROLL SCHEDULE
Position
General Manager
Controller
Admin Support
Director of Food & Beverage
Director of Event Facility Services
Event Services Coordinator & AV Staff
Director of Sales & Marketing
Catering & Sales Manager
Building Manager
Maintenance Staff
Plus Benefits @ 25%
Hourly Positions (incl Benefits)
Event Set Up & Takedown
F&B Payroll
TOTAL PAYROLL & BENEFITS
Positions (FTE)
Hourly Positions (FTE)
TOTAL FTE Positions
$100,000
$75,000
$40,000
$75,000
$75,000
$75,000
$75,000
$50,000
$65,000
$50,000
$680,000
$170,000
$850,000
$41,300
$383,550
$424,850
$1,274,850
11
13
24
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12.6 Operating Forecasts
days by its stabilized year of operation (Year 5).
Operating forecasts for the first five years of operation have been
based on 18,000 square feet of rentable space, with the proposed
Canmore Conference Centre hosting 179 events and 254 event
As shown in Table 12-5, the subject Canmore Conference Centre
is projected to operate at a net loss of $394,000 in Year 1,
decreasing to a net loss of $126,000 by Year 5.
Table 12-5
OPERATING PROJECTIONS
OPERATING FORECASTS
Year 1
Facility Profile
Multi-function space (rentable sq. ft.
Total Facility
Utilization
Events
Event Days
Revenues
Space Rentals
F&B Revenues
Other Event Services
Total Revenue
Direct Event Expenses
Direct F&B Expenses
Direct Other Event Expenses
Total Direct Expenses
Departmental Income
Indirect Operating Expenses
Administration
Marketing & Sales
Building Operations & Maintenance
Utilities
Insurance
Total Indirect Operating Expens
Reserve for Asset Replacement
Net Operating Income
Potential Lease Income from CBT
NOI After CBT Lease
10,000
8,000
18,000
Year 2
55.6%
44.4%
100.0%
10,000
8,000
18,000
130
183
Year 3
55.6%
44.4%
100.0%
159
225
10,000
8,000
18,000
14.2%
73.8%
12.0%
100.0%
$372,000
$1,972,000
$327,000
$2,671,000
13.9%
73.8%
12.2%
100.0%
$196,000
$1,161,000
$158,000
$1,515,000
$640,000
64.3%
73.0%
61.0%
70.3%
29.7%
$220,000
$1,440,000
$178,000
$1,838,000
$833,000
59.1%
73.0%
54.4%
68.8%
31.2%
$246,000
$1,710,000
$193,000
$2,149,000
$1,012,000
$289,000
$231,000
$227,000
$104,000
$75,000
$926,000
$108,000
($394,000)
$50,000
($344,000)
13.4%
10.7%
10.5%
4.8%
3.5%
43.0%
5.0%
-18.3%
$296,000
$237,000
$233,000
$107,000
$77,000
$950,000
$134,000
($251,000)
$51,000
($200,000)
11.1%
8.9%
8.7%
4.0%
2.9%
35.6%
5.0%
-9.4%
$303,000
$243,000
$239,000
$110,000
$79,000
$974,000
$158,000
($120,000)
$52,000
($68,000)
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56%
44%
100%
179
254
$305,000
$1,591,000
$259,000
$2,155,000
-16.0%
Year 4
-7.5%
10,000
8,000
18,000
Year 5
56%
44%
100%
179
254
$440,000
13.9%
$2,342,000
74.1%
$379,000
12.0%
$3,161,000 100.0%
10,000
8,000
18,000
56%
44%
100%
179
254
$451,000
$2,400,000
$388,000
$3,239,000
13.9%
74.1%
12.0%
100.0%
$463,000
$2,460,000
$398,000
$3,321,000
13.9%
74.1%
12.0%
100.0%
55.9%
73.0%
50.9%
68.0%
32.0%
$251,000
$1,752,000
$198,000
$2,201,000
$1,038,000
55.7%
73.0%
51.0%
68.0%
32.0%
$258,000
$1,796,000
$203,000
$2,257,000
$1,064,000
55.7%
73.0%
51.0%
68.0%
32.0%
9.6%
7.7%
7.6%
3.5%
2.5%
30.8%
5.0%
-3.8%
$311,000
$249,000
$245,000
$113,000
$81,000
$999,000
$162,000
($123,000)
$53,000
($70,000)
9.6%
7.7%
7.6%
3.5%
2.5%
30.8%
5.0%
-3.8%
$319,000
$255,000
$251,000
$116,000
$83,000
$1,024,000
$166,000
($126,000)
$54,000
($72,000)
9.6%
7.7%
7.6%
3.5%
2.5%
30.8%
5.0%
-3.8%
-2.2%
-2.2%
-2.2%
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There may be an opportunity for CBT to lease space at the subject
Conference Centre at an estimated $50,000 in Year 1, increasing
at 2.5% inflation over the projection period. This lease income
would allow the Canmore Conference Centre to reduce its net loss
to $344,000 in Year 1, decreasing to a net operating loss in Year 5
of $72,000.
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internally operating the food and beverage and AV functions
and/or due to other sources of income such as parking revenues.
13.0 FUNDING ANALYSIS
13.1 Introduction
The main objective of the analysis presented in this section is to
assess capital and operating funding options for the proposed
Conference Centre facility.
13.2 Deal Structure
In general, deal structures for development projects such as a
conference centre as considered in this Study broadly fall into the
following three categories:
Option 1: Town-led development
Option 2: Town-led land lease
Option 3: Private development
Table 13-1 summarizes the characteristics of each deal structure
based on Land ownership, Capital Funding and Operations.
Stand-alone convention centres are however well positioned to
attract economic impact generating events. Table 13-2 provides a
list of some publicly owned and operated Canadian
convention/conference centres.
Table 13-2
Publicly owned/operated Canadian Convention Centres
Convention/
Conference Centre
Owned/Controlled by
Metro Toronto Convention Centre
Province
Winnipeg Convention Centre
Municipality
Quebec City Convention Centre
Province
Shaw Conference Centre (Edmonton)
Municipality
Calgary Telus Convention Centre
Municipality
Hamilton Convention Centre
Municipality
Victoria Conference Centre
Municipality
Whistler Conference Centre
Municipality
Table 13-1
Deal Structure Options
Land Ownership
Capital Funding
Operations
Option 1
Town-Led Development
Town owns lands
Town funds the Project
Town Operates the Project
Option 2
Town-Led Land Lease
Town leases land to Developer
Developer funds the Project
Developer operates the Project
Option 3
Private Development
Developer owns lands
Developer funds the Project
Developer operates the Project
A majority of stand-alone convention centres in North America are
publicly led and owned especially because of their high
construction costs and operating deficits. Based on general market
experience, very few convention centres generate operating
surpluses, and in such cases, these are mainly attributable to
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As shown in the Operating Projections section, based
on the demand, revenue and costing assumptions, the
proposed Canmore Conference Centre is projected to
operate at a net loss of $344,000 in Year 1, decreasing
to a net loss of $72,000 by Year 5.
Given the expected operating loss from the Conference
Centre, a private development option is not feasible. Therefore,
only the Town-led development option is being considered for the
proposed centre at this stage.
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13.3 Capital Funding
As estimated in section 11 of this report, the indicative cost
estimate for the proposed Conference Centre and parking facility
is $31-$40 Million, excluding the cost of land. Under a Town-led
model, the Town of Canmore would be responsible for the
development of the Project and raising required capital funding.
The Town of Canmore has very recent experience in funding a
significant capital project (Elevation Place, a 77,000 square foot
recreational facility that also includes a library and multipurpose
community spaces), which had a similar cost magnitude as the
estimated Canmore Conference Centre. The total capital budget
for Elevation Place was $39.1 Million, which was funded as
follows:
Provincial Grant - $31 Million
Developers Voluntary Levy - $1.5 Million
Town Reserves – $2.1 Million
Debt - $4.5 Million
As noted above, the Province was the primary funder of the
project, accounting for approximately 80% of the capital funding
requirements. Given the comparable size of the proposed
Conference Centre and its potential role as an economic
contributor to the Province, a similar funding arrangement may be
explored by the Town with the Provincial government.
In assessing the Town’s potential funding share of capital costs, a
review of its debt capacity may be considered. According to the
2013 Canmore financial statements, the Town was at 52% of its
total debt limit, and 61% of its debt servicing limit. In addition,
the 2015 Budget and Business plan indicates that the Elevation
Place bridge financing will be satisfied in June 2015. This suggests
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that the Town has available debt capacity, which may be
considered for this Project, within the broader context of its
growth objectives and capital budget commitments. The 2013
Financial statements indicate that the Town has general capital
reserves of $8.4 Million, and the 2015 approved capital budget for
the Town totals $8.8 Million with a proposed five year total of
$122 Million.
Given the Town’s experience with the Elevation Place capital
funding and its potential debt capacity and reserves, it may
consider a similar capital funding model for the proposed Canmore
Conference Centre leveraging maximum available Provincial funds
with a limited contribution from the Town. Federal government
funding opportunities may also be considered through various
active infrastructure-related funds, subject to meeting eligibility
conditions.
13.4 Operating Gap Funding
As discussed earlier, based on the assumptions outlined in the
Operating Projections section, the proposed Canmore Conference
Centre is projected to operate at an annual net loss over the
forecast horizon. The objective of this section is to assess options
for funding the projected operating gap for the proposed Canmore
Conference Centre without relying on the Town’s existing revenue
base as the sole source to fund the deficit.
A potential funding option identified for further consideration is a
fee applied to local hotel rooms that may be dedicated to covering
the operating funding gap associated with the proposed Canmore
Conference Centre.
According to the market assessment conducted by PKF, Canmore
hoteliers estimated that in 2013, they were unable to
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accommodate 18 meetings/conventions related inquiries because
of insufficient meeting space, which equates to 6,200 lost room
nights. The proposed Conference Centre is expected to play a
significant role in the creation of additional room nights for
Canmore hoteliers. As a result, it is expected that the Town
hoteliers will be the primary beneficiaries of the proposed facility.
In light of this positive impact of the proposed centre on Canmore
hoteliers, the Town may consider an additional surcharge on hotel
rooms in order to fund the projected operating gap, either
through increasing existing charges or potentially a new fee.
13.4.1 Current Canmore Hotel Fees
Excluding the 5% Alberta GST, the following are additional fees
currently paid by Canmore hoteliers:
Alberta Hotel Levy: This is a mandatory fee collected by
the Province from all hotels. The levy is 4% of the hotel
room rate and is paid by the hotel customers.
Destination Marketing Fee (DMF): The fee is an
entirely voluntary fee received by the Town with 65%
participation from Canmore hoteliers. The proceeds are
used to fund various Town tourism mandates. This fee is
3% of the hotel room rate.
Business License Fees: Hotels currently pay
approximately $600 in business license fees on a fixed
basis to the Town. The Town currently receives a total of
$12,000 annually through this fee.
13.4.2 High level Financial Model
A financial model was developed to assess the potential
magnitude of the surcharge on hotel rooms that would be
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required to fund the projected operating gap. The base case
scenario in the model is based on the following assumptions:
The Operating Projections developed by PKF are achieved
(Table 12-5);
CBT leases space at the subject Conference Centre at an
estimated $50,000 in Year 1, increasing at 2.5% inflation
over the 5 year projection period;
The operating gap to be funded is the 5 year average net
operating loss, which is approximately $151k per annum;
The number of hotel rooms in Canmore is 1,661 and
constant over the projection period (PKF Analysis for
December 2014);
The annual occupancy rate for hotel rooms in the Town is
53.7% and constant over the projection period (PKF
Analysis for December 2014); and
The average daily rate for Canmore hotel rooms is $143.61
(PKF Analysis for December 2014).
Based on these assumptions, the Town will need to receive $91
per hotel room annually, to cover the proposed Conference Centre
operating gap. This amount translates to 46 cents per occupied
room night (0.3% of the average daily rate) or 25 cents per
available room night.
13.4.3 High Level Financial Analysis
The suggested surcharge on hotel rooms can either be an
additional levy to the current Canmore hotel fees (if possible) or a
new Canmore hotel levy, subject to meeting legislative
requirements and stakeholder acceptance. An increase in the
current hotel fees listed earlier may be challenging for the
following reasons:
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The Alberta Hotel Levy is charged by the Province and
therefore is not controlled by the Town.
The DMF is a voluntary fee, which if increased can reduce
the participation of the hoteliers. In addition, the Town
uses the revenue of this fee specifically for tourism
mandates and it is likely not applicable for other purposes.
Based on an assumed total number of rooms of 1,660, the
business license fee is currently approximately $7 per room
annually. An increase of $91 per room in annual business
license fees would be a very significant increase and may
be challenging for the Town to implement.
It is therefore suggested that the Town consider exploring the
potential for the introduction of a new mandatory hotel levy if
adjustments to existing mechanisms are not feasible.
Based on the high level financial analysis using base case
projections, a hotel levy of 46 cents per occupied room night
(0.3% of the average daily rate) to be paid to the Town by
the hoteliers would be required in order to fund the operating gap
projected for the proposed Canmore Conference Centre. As noted,
the amount of this levy is contingent on the achievement of the
operating projections outlined in section 12. Note however that
the legislative requirements and wider implications of this type of
levy will need to be further investigated by the Town.
With this new Canmore hotel levy, the hoteliers pay based on the
annual occupancy of their hotel, while benefitting from the
increased room nights the proposed Conference Centre is
positioned to provide. It also gives the Town an opportunity to run
the proposed Conference Centre independently of the Town’s
current revenues and tax base.
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13.4.4 Downside Scenario Analysis
Downside scenario analysis was conducted to assess the impact
on the recommended hotel levy if key underlying revenue
assumptions change, resulting in a higher operating funding gap.
The scenarios reviewed include:
Scenario 1: An annual 10% reduction in the base case total
revenue
revenue
revenue
An annual 10% reduction in the base case total revenue increases
the average operating funding gap to $442k per annum; and in
turn, increases the required hotel levy to $266 per hotel room,
which translates to $1.36 per occupied room night (0.9% of the
average daily rate).
the average operating funding gap to $878k per annum, and in
turn, increases the required hotel levy to $529 per hotel room,
the average operating funding gap to $1.6 Million per annum, and
in turn, increases the required hotel levy to $967 per hotel room,
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Table 13-3
Operating Gap Funding Scenario Analysis
Scenario
Base Case
Scenario 1
Scenario 2
Scenario 3
5 - Year Average Revenue
$ 2.9 Milion
$ 2.6 Million
$ 2.2 Million
$ 1.5 Million
Annual Hotel Levy
per hotel room
$91
$266
$529
$967
Table 13-3 provides a summary of the scenario analysis results.
13.4.5 Secondary Funding Options
There are other potential methods of funding the projected
operating deficit for the proposed Conference Centre that may
also be considered. One such option may be a property tax based
assessment that could be applied to hotels and other businesses.
Additional options include Provincial operating subsidies and as a
fallback position, potential allocation of Town revenues, or a
combination of the above. A majority of publicly owned
convention/conference centres in Canada receive government
support to subsidize operating losses.
$ / Occupied Room Night
$
0.46
$
1.36
$
2.70
$
4.93
Percentage of
Average Hotel daily
rate
0.30%
0.90%
1.90%
3.40%
In addition, to fund the operating gap for the facility, the potential
introduction of a new mandatory hotel levy to be paid to the Town
by the hoteliers should be assessed for potential feasibility (note
that the legislative implication of enacting a new levy has not
been investigated for the purpose of this report).
13.5 Summary
In summary, to meet the capital funding requirements of the
proposed Canmore Conference Centre, in light of the Town’s
recent experience and success with the Elevation Place
development, a similar capital funding structure for the proposed
facility is recommended leveraging Provincial capital contributions.
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14.0ECONOMIC IMPACT
14.1 Introduction
The 2012 study built on the original study for the base year 2006,
and is based on in-depth survey response from meeting
organizers, venue managers, exhibitors, speakers and delegates. 4
Following is a summary of the key 2012 study findings:
While most Conference Centres are viewed by municipal
ownership as “loss” leaders, it is recognized that they also
contribute essential economic activity that drives new tax
revenues, economic benefit and employment from other services
and establishments like hotels, restaurants and retail stores. It is
largely because of this benefit that community’s “accept” annual
losses from facility operations because the Conference Centre is
the sole or primary source of new business activity in the central
business district.
In 2012, 2,200 venues hosted 585,000 business
meetings across Canada.
44 million people attended meetings in Canada in
2012, including 37.8 million delegates, 3.3 million
exhibitors, and 2.0 million professional speakers or other
paid attendees.
The overall average meeting size was 74 persons, and
most meetings lasted three days or less.
Based on our utilization projections, the following section provides
an analysis of delegate spending and room nights generated by
type of event, for the first five years following the opening of the
proposed Canmore Conference Centre. Recognizing that not all of
the Meeting & Convention related revenue generated as a result
of the new Conference Centre will be new to the Town of
Canmore, we have also provided an analysis of the estimated
portion of delegate spending and room nights generated which
will be incremental to the Canmore post the new Conference
Centre’s development.
63% of the meetings activity took place in hotels with
meeting space, 18% were held at resorts, 12% were held
in meeting facilities without lodging; 5% were held in
purpose-built venues (i.e. Convention and Conference
Centres); and 3% were held in universities and colleges.
Nearly 62% of all gatherings in Canada were considered
as “corporate and business meetings” (364,000), with
20% being conferences, conventions, and congresses
(116,000); 3% incentive events (20,000); 3% being trade
shows and business exhibitions (15,300); and 12% other
meetings.
Economic Impact of Meetings Activity in Canada, 2012
On behalf of Meeting Professionals International Foundation
Canada (MPIFC), Maritz Research Canada, in association with the
Conference Board of Canada, Greenfield Services Inc. and the
Canadian Tourism Human Resource Council (CTHRC), completed a
study on the economic activity surrounding meetings in Canada.
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4
Canadian Economic Impact Study 3.0 (CEIS 3.0), 2012 Base Year –
Meetings Activity Profile Reporrt, Maritz Research, the Conference Board
of Canada, Greenfield Services Inc., CTHRC, MPI Foundation, 2014.
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Across all meeting types, a total of 23.4 million meeting
participants attended activities in hotels and resorts,
followed by 6 Million or 17% of the total delegates
and exhibitors who attended meetings in purposebuilt venues such as the proposed Canmore Conference
Centre. Purpose-built venues drew the lion’s share of the
traffic for trade and consumer shows.
The highest share of attendees (38%) went to meetings in
Ontario; followed by Alberta (15%); Quebec, BC and
Atlantic Canada at 13% respectively; and Saskatchewan /
Manitoba at 8% combined.
The 6 major cities in Canada hosted 41% of the total
585,000 business events in Canada in 2012 and $5.2
Billion in spending, which was highest in Toronto, as
shown in Table 14-1. In relation to Canmore, Calgary
received 2.4 million attendees to an estimated
33,000 events in 2012, and generated $2.2 Billion
in participant spending.
Table 14-1
Comparison of Business Event Demand Across Canada, 2014
Vancouver Calgary
Edmonton Toronto Ottawa Montreal
# of Business Events
38,845
33,026
28,610
71,461
26,269
42,790
Share of Events
6.6%
5.6%
4.9%
12.2%
4.5%
7.3%
# of Attendees (millions)
3.3
2.5
1.8
5.8
1.7
2.3
Share of Attendees
9.2%
7.0%
5.0%
16.3%
4.9%
6.6%
Total Participant Spending
($Billions)
$3.0
$2.2
$1.7
$4.5
$1.2
$1.4
Source: Economic Contribution of Business Events in Canadian Cities, 2012 (Maritz Research et all)
Total Business meetings in Canada generated $29.1
Billion in spending in 2012 (including $20.8 Billion by
meeting participants).
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Table 14-2
Spending by Meeting Participants by Event Type
Conferences/Conventions
Trade Shows
Incentive Events
Corporate/Business Meetings
Other Meetings
Total
Participant
Expenditures
($Billions)
$
6.5
$
3.1
$
0.8
$
7.8
$
2.6
$
20.8
%
31%
15%
4%
38%
13%
100%
Source: Meetings Activity Profile Report, CEIS 3.0,
2012 (Maritz Research et all)
Most (31%) meeting participant spending was attributed
to conferences and conventions, as shown in Table 14-2.
The largest average spend at Canadian meetings was by
international attendees ($3,134), followed by domestic/nonlocal attendees ($952), and local attendees, who spent
$194 on average.
Overall in Canada, business events supported $55 Billion in
economic activities, including $12.5 Billion in direct GDP,
341,000 jobs (of which 201,000 were directly related to
business events), and $17 Billion in wages (of which $9.2
Billion was business event related).
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Western Canada is estimated to have hosted 191,000
meetings, of which 45% were held in Alberta (equates
to 15% of Canadian meetings). Within Alberta, business
event activity supported 59,000 full-year jobs, or 2.8% of all
employment. As a comparison, one full-year job is
supported for every $102,500 in direct spending on
business events in Alberta. The level of wages and salaries
supported as a result of business events activity in Alberta
was estimated at $3.3 Billion, of which $1.8 Billion (55%)
was paid to workers who directly benefited from business
events activity (tourism-related).The average wage paid
was $56,300 in Alberta. Business events activity also
delivered over $5.5 Billion to Alberta’s GDP, and contributed
nearly $1.5 Billion to all levels of government. Of that,
federal taxes accounted for $897 Million, provincial taxes
$461 Million and municipal taxes $158 Million.
Table 14-3
Economic Contribution of Meetings Events in Alberta - 2012
Wages
GDP
Taxes
Employment ($Billions) ($Billions) ($Billions)
Direct Impact
34,572
$1.8
$2.6
$1.5
Indirect Impact
15,784
$1.0
$1.8
Induced Impact
8,773
$0.5
$1.1
TOTAL - Alberta
59,129
$3.3
$5.5
$1.5
Source: National and Regional Impact Report – CEIS 3.0, 2012 (Maritz Research et all)
14.2 Economic Impact of Proposed Canmore
Conference Centre
14.2.1 Meeting and Convention Room Nights Generated
As summarized in Section 2.6 of the report, an estimated 38,800
occupied room nights were generated by the Meeting &
Conference sector of Canmore’s accommodation industry in 2013,
with approximately 43% of the room nights generated by
Corporate Meetings, National & Regional Association Conferences
/ Conventions at 20%, and SMERF F&B and Other Social Events at
37%. With the introduction of the subject Canmore Conference
Centre, Meeting & Conference room nights are expected to
increase to 54,000.
PKF has used the following assumptions to determine overnight
demand generated by future events generated at the proposed
Canmore Conference Centre:
Convention delegates are expected to stay an average of 2
nights in Canmore at a double occupancy factor of 1.25;
75% of Trade Show attendees will stay an average of 2
nights at a double occupancy factor of 1;
Corporate meeting delegates will stay an average of 1.75
nights at a double occupancy rate of 1;
SMERF F&B and Wedding attendees will stay an average of
2 nights, with 2.3 persons per room; and
50% of Other Social Event attendees stay an average of 1
night, with 2 persons per room.
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Based on the overnight demand assumptions, the opening of the
subject Canmore Conference Centre is projected to generate a
total of 20,800 room nights in Year 1, increasing to 29,400 by
Year 3. Approximately two-thirds of all room nights generated
by the Conference Centre will be incremental new demand to
Canmore. As such, the incremental new M&C activity to the
Town of Canmore is estimated at 13,700 room nights in Year
1, increasing to 19,400 room nights by Year 3.
Table 14-4
INCREMENTAL ROOM NIGHTS GENERATED
Year 1
Year 2
TOTAL DELEGATES/EXHIBITORS
16,100
19,300
TOTAL DELEGATES/EXHIBITORS DAYS
22,000
26,600
ROOM NIGHTS GENERATED
20,800
25,400
Net Incremental Room Nights with Conference Centre
13,700
16,800
Year 3
22,300
31,100
29,400
19,400
Table 14-5
DELEGATE SPENDING PER DAY
DELEGATE SPENDS
Year 4
22,280
31,120
29,400
Year 5
22,280
31,120
29,400
19,400
19,400
Year 1
Per Delegate Spend Assumptions (Per Visitor Per Day)
Accommodation Spend (ADR)
$123.72
Food and Beverage Spend
$51.75
F&B at Conference Centre Spend
$72.30
Space Rental/Other Services at CC Spend
$25.62
Retail Spend
$51.43
$15.69
Recreation & Entertainment Spend
$9.95
Total Per Delegate Spend
$350.48
Source: Conference Board of Canada, Canadian Economic Impact Study (CEIS 3.0),
2012 - Alberta data and PKF Consulting Canmore Conference Centre Operating
Projections
14.3 Delegate Per Spend Assumptions
Table 14-5 provides delegate spending assumptions based on
visitor spending statistics provided in the Canadian Economic
Impact Study 3.0 Alberta results (2012); the 2018 Average Daily
Rate for the Canmore accommodation market and a double
occupancy factor of 1.25; with 2013 spending inflated to 2018$.
The average delegate to the Town of Canmore is estimated to
spend $350.48 per day. The expenditure categories exclude
transportation costs to and from Canmore, but include local
transportation costs for fuel, taxis or local transit while in the
destination.
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14.4 Delegate Spending Impacts by Type of
Event
14.4.1 Convention Delegate Spending
The subject Conference Centre is projected to host 17 major
conventions in Year 1, with 2,850 delegates, increasing to 23
events and 4,050 delegates by its stabilized year of operation.
Based on the overnight delegate spending profile outlined in Table
14-6, total delegate spending is projected to reach $3.1 Million by
the Centre’s 5th year of operation, of which $2.8 Million (90%) will
be incremental new spending to the Town of Canmore.
Table 14-6
Convention Delegate Assumptions
Year 1
Year 2
Year 3
Year 4
Year 5
Convention Delegates
2,850
3,450
4,050
4,050
4,050
Convention Delegate Days
5,700
6,900
8,100
8,100
8,100
TOTAL CONVENTION DELEGATE SPE
$1.97
$2.44
$2.94
$3.01
$3.09
Incremental Convention Delegate S
$1.77
$2.20
$2.64
$2.71
$2.78
% of Total Convention Delegate Spe
90%
90%
90%
90%
90%
14.4.2 Trade Show Spending
Projected spending by Trade Show delegates and exhibitors has
been estimated at $0.5 Million by the Centre’s 5th year of
operation, of which 100% is expected to be incremental new
spending to the Town of Canmore.
Table 14-7
Trade Show Delegate & Exhibitor Assumptions
Year 1
Year 2
Year 3
Year 4
Year 5
Trade Show Delegates & Exhibitors
440
440
880
880
880
Trade Show Delegate & Exhibitor Days
880
880
1,920
1,920
1,920
TOTAL TRADE SHOW ATTENDEE SPEND ($M)
$0.23
$0.24
$0.53
$0.54
$0.55
Incremental Trade Show Attendee Spend ($M)
$0.23
$0.24
$0.53
$0.54
$0.55
% of Total Trade Show Attendee Spend
100%
100%
100%
100%
100%
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14.4.3 Corporate Meeting Spending
A primary source of business for the subject Conference Centre
will be Corporate Meetings, which represent 43% of the events in
2013 in Canmore, and 33% of the projected delegates to the
Centre in Year 1. Based on the overnight delegate spending
profile, total delegate spending is projected to exceed $2.4 Million
in the Centre’s 1st year of operation, increasing to $3.9 Million by
Year 5. Approximately 50% of this spending is projected to be
incremental new spending to the Town, equating to almost $2.0
Million by Year 5.
Table 14-8
Corporate Meeting Delegate Assumptions
Year 1
Year 2
Year 3
Year 4
Year 5
Corporate Meeting Delegates
5,250
6,750
7,500
7,500
7,500
Corporate Meeting Delegate Days
7,875
10,125
11,250
11,250
11,250
TOTAL CORPORATE MEETING DELEGATE SPEND ($M)
$2.49
$3.28
$3.73
$3.83
$3.92
Incremental Corporate Meeting Del Spend ($M)
$1.24
$1.64
$1.87
$1.91
$1.96
% of Total Corporate Meeting Delegate Spend
50%
50%
50%
50%
50%
14.4.4 SMERF F&B and Wedding Spending
An estimated 6,000 persons have been projected to attend SMERF
group banqueting functions, along with 1,050 wedding attendees
at the proposed Canmore Conference Centre during its first year
of operation, increasing to an estimated 9,350 total attendees by
Year 5. At a double occupancy rate of 2.3 for these events, and
50% of typical F&B and Retail costs outside the Conference
Centre, total banquet spending is projected to account for over
$1.4 Million in revenues during the Centre’s first year of operation,
increasing to an estimated $2.1 Million by Year 5. Approximately
50% of this spending is projected to be incremental new spending
to the Town, equating to approximately $1.0 Million by Year 5.
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Table 14-9
SMERF F&B and Wedding Attendee Assumptions
Year 1
Year 2
Year 3
Year 4
Year 5
SMERF F&B/Wedding Attendees
7,050
8,200
9,350
9,350
9,350
SMERF F&B/Wedding Attendee Days
7,050
8,200
9,350
9,350
9,350
TOTAL SMERF F&B/WEDDING SPEND ($M)
$1.42
$1.70
$1.98
$2.03
$2.08
Incremental SMERF F&B/Wedding Spend ($M)
$0.71
$0.85
$0.99
$1.02
$1.04
% of Total SMERF F&B/Wedding Spend
50%
50%
50%
50%
50%
14.4.5 Other Social Event Spending
The Conference Centre is projected to attract a further 500
persons for various other social events. Assuming 50% of these
attendees stay overnight in Canmore, and spend 50% of typical
F&B and Retail costs outside the Conference Centre, delegate
spending is projected to surpass $81,000 in Year 1, increasing to
$90,000 by Year 5. Approximately 25% of this spending is
projected to be incremental new spending to the City, equating to
approximately $22,000 by Year 5.
Table 14-10
Other Social Event Attendee Assumptions
Year 1
Year 2
Year 3
Year 4
Year 5
Other Social Event Attendees
500
500
500
500
500
Other Social Event Attendee Days
500
500
500
500
500
TOTAL OTHER SOCIAL EVENT SPEND ($M)
$0.09
$0.09
$0.09
$0.09
$0.09
Incremental Other Social Event Spend ($M)
$0.02
$0.02
$0.02
$0.02
$0.02
% of Total Other Social Event Spend
25%
25%
25%
25%
25%
14.4.6 Total Delegate Spending
Based on the preceding analysis, the proposed Canmore
Conference Centre is projected to generate $10.6 Million in total
delegate spending to Canmore by its 5th year of operation, of
which 68% of this spending will be new incremental revenues to
the Town, equating to $7.2 Million in new spending per year.
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Table 14-11
Total and Incremental Delegate Spending (In $Millions)
Year 1
Year 2
Year 3
Accommodation
$2.27
$2.84
$3.40
F&B
$0.93
$1.17
$1.41
F&B at CC
$1.59
$1.97
$2.34
$0.56
$0.70
$0.82
Retail
$0.94
$1.17
$1.42
$0.29
$0.36
$0.43
$0.18
$0.23
$0.27
$6.76
$8.44
$10.09
Accommodation
$1.45
$1.80
$2.20
F&B
$0.61
$0.75
$0.93
F&B at CC
$1.02
$1.26
$1.52
$0.56
$0.70
$0.82
Retail
$0.61
$0.75
$0.93
$0.18
$0.23
$0.28
$0.12
$0.15
$0.18
$4.54
$5.64
$6.87
% of Total Delegate Spend
67%
67%
68%
Year 4
$3.48
$1.45
$2.40
$0.84
$1.45
$0.44
$0.28
$10.34
Year 5
$3.57
$1.48
$2.46
$0.86
$1.49
$0.45
$0.29
$10.60
$2.26
$0.96
$1.55
$0.84
$0.95
$0.29
$0.18
$7.04
$2.32
$0.98
$1.59
$0.86
$0.98
$0.30
$0.19
$7.22
68%
14.5 Benefits to the Accommodation Sector
The direct benefits to the accommodation sector in the Town will
be strong:
The Conference Centre is projected to generate 19,400
room nights and $3.6 Million in room revenue by Year 5;
Approximately 2-out-of-every 3 room nights generated will
be incremental new demand to Canmore, accounting for
$2.3 Million in new room revenue annually.
By the stabilized year of operation, meetings and
convention related demand generated by the Town of
Canmore is projected to generate an estimated 59,600
room nights for the City – 54% above the City’s existing
M&C demand levels of 38,800 room nights recorded in
2013.
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15.0 Appendix A – Maps
15.2 Palliser Lands North and South Site
15.1 Travel Alberta Information Centre Site
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15.3 Downtown Parking Lot – East and West Site
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15.5 Elevation Place
12
8
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Unapproved
C-1
TOWN OF CANMORE
MINUTES
Special Meeting of Council
Tuesday, December 15, 2015 at 1:00 p.m.
COUNCIL MEMBERS PRESENT
John Borrowman
Mayor
Sean Krausert
Deputy Mayor
Councillor
Rob Seeley
Esmé Comfort
Councillor
Vi Sandford
Councillor
Joanna McCallum
Councillor
COUNCIL MEMBERS ABSENT
Ed Russell
Councillor
ADMINISTRATION PRESENT
Lisa de Soto
Chief Administrative Officer
Lorrie O’Brien
General Manager of Municipal Services
Michael Fark
General Manager of Infrastructure Services
Alaric Fish
Manager of Planning and Development
Tracey Woitenko
Development Planner
Cheryl Hyde
Municipal Clerk (Recorder)
Mayor Borrowman called the December 15, 2015 special meeting to order at 1:00 p.m.
314-2015
1. Agenda for the December 15, 2015 Special Meeting of Council
Moved by Mayor Borrowman that Council approve the agenda for the December 15,
2015 special meeting as presented.
CARRIED UNANIMOUSLY
B. NEW BUSINESS
1. Municipal Development Plan
Council reviewed a consolidation of public input on the draft MDP and, by motion,
directed administration to make amendments to the Municipal Development Plan
prior to first reading of the MDP bylaw.
315-2015
Moved by Councillor Krausert that council direct administration to delete Municipal
Development Plan section 1.5 Principles of Change.
CARRIED UNANIMOUSLY
316-2015
Moved by Mayor Borrowman that council direct administration to seek editorial
assistance on the Municipal Development Plan document from outside the planning
department.
Minutes approved by: _______ _______
Page 142 of 159
Town of Canmore Special Council Meeting
December 15, 2015
Page 2 of 4
Unapproved
CARRIED UNANIMOUSLY
317-2015
Moved by Mayor Borrowman that council direct administration to modify the
language in the Municipal Development Plan to provide better context to sections
referring to growth and change.
CARRIED UNANIMOUSLY
318-2015
Moved by Mayor Borrowman that council direct administration to review Municipal
Development Plan sections 2.3.2 and 6.19, both of which refer to balanced growth,
for consistency and cross-referencing.
CARRIED UNANIMOUSLY
319-2015
Moved by Councillor Krausert that council direct administration to amend Municipal
Development Plan section 3.5 – Steep Creeks by creating exceptions for currently
vacant, subdivided lots to allow for building despite being in a study area or
development hold zone.
CARRIED UNANIMOUSLY
320-2015
Moved by Councillor Krausert that council direct administration to amend Municipal
Development Plan section 3.4 – Flood Risk Areas to the effect that the Town will
work with, and advocate to, the Province regarding flood mitigation for the Bow
River.
CARRIED UNANIMOUSLY
321-2015
Moved by Mayor Borrowman that council direct administration to add a definition of
“adjacency” to the Municipal Development Plan.
CARRIED UNANIMOUSLY
322-2015
Moved by Councillor Krausert that council direct administration to amend the
Municipal Development Plan so that the third party review of the Environmental
Impact Statement is required except in certain stated circumstances which shall be
proposed by administration in the next draft of the MDP.
CARRIED UNANIMOUSLY
323-2015
Moved by Councillor Krausert that council direct administration to review the
wording in the Municipal Development Plan about when an Environmental Impact
Statement is required, and move it more towards being mandatory, especially with
respect to new and adjacent uses.
CARRIED UNANIMOUSLY
324-2015
Municipal Development Plan by increasing reference in the Municipal Development
Plan regarding the importance of the functionality of wildlife corridors and their
connectedness to the greater ecosystem.
CARRIED UNANIMOUSLY
325-2015
Municipal Development Plan by amending section 4.4 – Environmental Practices to
include a policy statement whereby the Town aligns with, or surpasses, the provincial
environmental plan, especially with respect to GHG reductions and green energy
Page 143 of 159
December 15, 2015
Page 3 of 4
generation.
Unapproved
CARRIED
In favour: Seeley, Comfort, Borrowman, McCallum, Krausert, Russell
Opposed: Sandford
326-2015
Moved by Councillor McCallum that council direct administration to amend the
Municipal Development Plan by replacing the word “discourage” with the word
“prohibit” in section 4.5.2.b.
CARRIED
In favour: Seeley, Sandford, Borrowman, McCallum, Krausert, Russell
Opposed: Comfort
327-2015
Moved by Councillor Sandford that council direct administration to amend Municipal
Development Plan section 5.1.5 by adding “as well as adjacent municipal partners
Banff and the MD of Bighorn.
CARRIED UNANIMOUSLY
328-2015
Moved by Mayor Borrowman that council direct administration to amend the
Municipal Development Plan by placing a reasonable cap on maximum housing size.
CARRIED
In favour: Comfort, Sandford, Borrowman, McCallum, Russell
Opposed: Seeley and Krausert
329-2015
Moved by Mayor Borrowman that council direct administration to amend the
Municipal Development Plan section 6.1 by exploring ways in the revised draft MDP
to:
 Prioritize and identify where growth could occur, such as close to downtown,
walking distance to services or transit;
 Approach growth and change, such as the natural evolution of
neighbourhoods over time, and when infill redevelopment & intensification is
beneficial or acceptable;
 Better identify the public consultation or planning process that would be
undertaken when change is being proposed;
 Prepare Area Redevelopment Plans when Council deems necessary, and also
identify criteria in the MDP.
CARRIED UNANIMOUSLY
330-2015
Moved by Mayor Borrowman that council direct administration to amend Municipal
Development Plan section 7.2 by being more specific that Municipal Reserve will only
be disposed for development when definitive direction from Council is given and
there is a clear community benefit.
CARRIED UNANIMOUSLY
331-2015
Development Plan section 9.1 by adding consideration of enhance policies speaking to
mitigating the impact of growth.
CARRIED UNANIMOUSLY
332-2015
Municipal Development Plan, including maps, so as to not be subject to the Smith
Page 144 of 159
December 15, 2015
Page 4 of 4
Creek ASP process.
Unapproved
CARRIED UNANIMOUSLY
333-2015
Development Plan section 6.2.5 adding more context to the topic of short term
rentals.
CARRIED UNANIMOUSLY
334-2015
Moved by Councillor McCallum that council direct administration to amend
Municipal Development Plan by providing or revising definitions for terms such as
affordable housing, perpetually affordable housing, social housing, social fabric,
community character, neighbourhood fabric, neighbourhood character.
CARRIED UNANIMOUSLY
335-2015
Development Plan section section 19.4.1.c be amended to include Environmental,
Social, and Economic Impact Statements.
CARRIED UNANIMOUSLY
336-2015
C. ADJOURNMENT
Moved by Mayor Borrowman that council adjourn the December 15, 2015 special
meeting at 4:18 p.m.
CARRIED UNANIMOUSLY
_________________________
John Borrowman, Mayor
__________________________
Cheryl Hyde, Municipal Clerk
Page 145 of 159
Unapproved
C-2
TOWN OF CANMORE
MINUTES
Regular Meeting of Council
Tuesday, December 15, 2015 at 5:00 p.m.
COUNCIL MEMBERS PRESENT
John Borrowman
Mayor
Sean Krausert
Deputy Mayor
Councillor
Rob Seeley
Esmé Comfort
Councillor
Ed Russell
Councillor
Vi Sandford
Councillor
Joanna McCallum
Councillor
COUNCIL MEMBERS ABSENT
None
ADMINISTRATION PRESENT
Lisa de Soto
Lorrie O’Brien
General Manager of Municipal Services
Michael Fark
General Manager of Infrastructure Services
Andreas Comeau
Manager of Public Works
Greg Burt
Manager of Protective Services
Tara Gilchrest
Family and Community Support Services Supervisor
Todd Sikorsky
Fire Chief
Katherine Van Keimpema
Manager of Finance
Ric Irwin
Senior Finance Officer
Cheryl Hyde
Municipal Clerk (Recorder)
Mayor Borrowman called the December 15, 2015 regular meeting to order at 5:00 p.m
337-2015
1. Agenda for the December 15, 2015 Regular Meeting of Council
Moved by Mayor Borrowman that Council approve the agenda for the December 15,
2015 regular meeting as presented.
CARRIED UNANIMOUSLY
B. DELEGATIONS
1. Andrew Nickerson, Canmore Business and Tourism: Canmore Uncorked
Announcement
Andrew Nickerson, president and CEO of Canmore Business and Tourism,
announced that Canmore Uncorked won a national tourism award for Event of the
Year.
Page 146 of 159
Town of Canmore Regular Council Meeting
December 15, 2015
Page 2 of 5
338-2015
339-2015
Unapproved
C. MINUTES
1. Minutes of the November 24, 2015 Public Hearing for Bylaw 2015-19
Moved by Mayor Borrowman that Council approve the minutes of the November 24,
2015 public hearing for Bylaw 2015-19 as presented.
CARRIED UNANIMOUSLY
2. Minutes of the December 1, 2015 Regular Meeting of Council
Moved by Mayor Borrowman than Council approve the minutes of the December 1,
2015 regular meeting as presented, with a correction to the numbering of the motions.
CARRIED UNANIMOUSLY
D. BUSINESS ARISING FROM THE MINUTES
None
E. UNFINISHED BUSINESS
None
340-2015
F. BYLAW APPROVAL
1. 2016 Utility Rate Amendments
Moved by Mayor Borrowman that Council give first reading to Water Rate Amending
Bylaw 2015-27.
CARRIED UNANIMOUSLY
341-2015
Moved by Mayor Borrowman that Council give second reading to Water Rate
Amending Bylaw 2015-27.
CARRIED UNANIMOUSLY
342-2015
Moved by Mayor Borrowman that Council go to third reading of Water Rate
CARRIED UNANIMOUSLY
343-2015
Moved by Mayor Borrowman that Council give third reading to Water Rate
CARRIED UNANIMOUSLY
344-2015
Moved by Mayor Borrowman that Council give first reading to Sewer Rate Amending
Bylaw 2015-28.
CARRIED UNANIMOUSLY
345-2015
Moved by Mayor Borrowman that Council give second reading to Sewer Rate
CARRIED UNANIMOUSLY
346-2015
Moved by Mayor Borrowman that Council go to third reading of Sewer Rate
CARRIED UNANIMOUSLY
347-2015
Moved by Mayor Borrowman that Council give third reading to Sewer Rate Amending
Bylaw 2015-28.
CARRIED UNANIMOUSLY
Page 147 of 159
December 15, 2015
Page 3 of 5
348-2015
Unapproved
2. Waste Control Bylaw 2016 Fees and Penalties Amending Bylaw 2015-26
Moved by Mayor Borrowman that Council give first reading to Waste Control Fees
and Penalties Amending Bylaw 2015-26.
CARRIED UNANIMOUSLY
349-2015
Moved by Mayor Borrowman that Council give second reading to Waste Control Fees
CARRIED UNANIMOUSLY
350-2015
Moved by Mayor Borrowman that Council go to third reading of Waste Control Fees
CARRIED UNANIMOUSLY
351-2015
Moved by Mayor Borrowman that Council give third reading to Waste Control Fees
CARRIED UNANIMOUSLY
352-2015
3. Police Committee Bylaw
Moved by Mayor Borrowman that Council give first reading to Bylaw 2015-24, the
Policing Committee Bylaw.
CARRIED UNANIMOUSLY
353-2015
Moved by Mayor Borrowman that Council give second reading to Bylaw 2015-24, the
CARRIED UNANIMOUSLY
354-2015
Moved by Mayor Borrowman that Council go to third reading of Bylaw 2015-24, the
CARRIED UNANIMOUSLY
355-2015
Moved by Mayor Borrowman that Council give third reading to Bylaw 2015-24, the
CARRIED UNANIMOUSLY
356-2015
357-2015
G. NEW BUSINESS
1. Council’s consideration for the purchase of equipment for two community
programs: a) Cycling Without Age b) The Neighbourhood Connector
Program
Moved by Mayor Borrowman that Council approve the use of $4,000, the municipal
portion of the projected FCSS surplus in the 2015 budget, for the purchase of
equipment for two community programs: a) Cycling Without Age and b) The
Neighbourhood Connector Program.
CARRIED UNANIMOUSLY
2. 2015 Fire Smart Grant Assignment:
Moved by Mayor Borrowman that Council create 2 capital projects for 2015 Fire
Smart thinning in the amount of $245,000 and $210,000, these projects to be funded
by the Forest Resource Improvement Association of Alberta (FRIAA) grant.
CARRIED UNANIMOUSLY
Page 148 of 159
December 15, 2015
Page 4 of 5
358-2015
359-2015
360-2015
Unapproved
3. Request to amend capital budget #1508 – Pumper 32 Life Cycle
Moved by Mayor Borrowman that Council authorize administration to place an order
for a new fire pumper truck to replace Pumper 32 for the bid price of $440,712 USD
with delivery, brokerage fees and equipment costs not to exceed $40,000 CDN in
additional funds.
CARRIED UNANIMOUSLY
4. Budget Approval
Moved by Mayor Borrowman that Council adopt the 2016-2018 Strategic Plan.
CARRIED UNANIMOUSLY
Moved by Mayor Borrowman that Council approve the 2016 operating budget as
presented.
360A-2015
Moved by Councillor Russell that council amend motion 360-2015 by adding:
restore $8,000 for enhanced bylaw summer enforcement.
CARRIED UNANIMOUSLY
360B-2015
Moved by Councillor Russell that council amend motion 360-2015 by adding:
reduce salary, wages, and benefits budget by $50,000 (merit/performance pay) as
originally suggested by senior administration to the Budget Committee.
DEFEATED
In favour: Russell
Opposed: McCallum, Krausert, Seeley, Borrowman, Sandford, Comfort
360-2015
VOTE
The vote followed on motion 360-2015: that Council approve the 2016 operating
budget as presented, with one amendment: restore $8,000 for enhanced bylaw
summer enforcement.
CARRIED UNANIMOUSLY
361-2015
Moved by Mayor Borrowman that Council change $3,500,000 of the source of
funding for Canmore’s portion of Capital project #1562 Cougar Creek Long-Term
Hazard Mitigation, from general capital reserves to debt.
CARRIED UNANIMOUSLY
362-2015
Moved by Mayor Borrowman that Council approve the 2016 Capital Budget as
presented, including a requirement that the Parking Strategy Implementation project
undergo public consultation and subsequently receive Council approval with regards
to parking restriction initiatives.
CARRIED UNANIMOUSLY
363-2015
Moved by Mayor Borrowman that Council accept the 2016-2020 Capital Planning
Summary as presented for planning purposes.
CARRIED UNANIMOUSLY
364-2015
5. Property Tax Policy
Moved by Mayor Borrowman that Council approve the Property Tax Policy as
presented.
CARRIED UNANIMOUSLY
Page 149 of 159
December 15, 2015
Page 5 of 5
Unapproved
H. CORRESPONDENCE/INFORMATION
None
I. REPORTS FROM ADMINISTRATION
None
J. NOTICES OF MOTION
None
K. IN CAMERA
None
365-2015
L. ADJOURNMENT
Moved by Mayor Borrowman that council adjourn the December 15, 2015 regular
meeting at 7:40 p.m.
CARRIED UNANIMOUSLY
_________________________
John Borrowman, Mayor
__________________________
Cheryl Hyde, Municipal Clerk
Page 150 of 159
G-1
Request for Decision
DATE OF MEETING:
January 5, 2016
TO:
Council
SUBJECT:
Reviewing Visitor Accommodation Zoning
SUBMITTED BY:
Councillor Sean D. Krausert
RECOMMENDATION:
That Administration be directed to explore and report back to Council with an
evaluation of options to address the problems associated with visitor
accommodation zoning of condominium apartments that have resulted in limited
ability to finance units, significantly reduced property values and removal of units
from use as visitor accommodation.
And, if the above motion is approved:
That Administration is directed to come back to Council by March 31, 2016 with
options regarding costs and timing to implement the previous motion.
EXECUTIVE SUMMARY
Visitor accommodation is being lost because of Visitor Accommodation zoning.
This ironic result was not foreseen, nor did it originally materialize, when the zoning was first put in place.
However, since the world economic crisis of 2007-2008, tighter financing rules have discriminated against
Visitor Accommodation zoned units and had a devastating impact on their value; and, consequently, have
adversely impacted their uses with respect to tourism. Of course, lower unit valuations also equates to
lower municipal tax revenue from these units.
A municipal bylaw provision is the cause of these units not being financed, the resulting loss of value and
removal of units from the visitor accommodation stock; therefore, it is incumbent upon Council to review
the municipal bylaw provision in question. There are a number of options that could be considered
moving forward, but moving away from Visitor Accommodation zoning as it currently exists towards
something that a purchaser can finance would seem to be a minimum requirement.
1
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STATUTE and PREVIOUS COUNCIL DIRECTION, BYLAW OR POLICY RE VISITOR ACCOMMODATION
ZONING
1)
Municipal Government Act
“s. 153 Councillors have the following duties:
(a) to consider the welfare and interests of the municipality as a whole and to bring to council’s
attention anything that would promote the welfare or interests of the municipality;”
2)
Town of Canmore Land Use Bylaw 22-2010 (Adopted January 3, 2012)
Section 2: LAND USE DISTRICTS
“Visitor accommodation” and “visitor accommodation, small scale” zoning is found as either permitted or
discretionary uses in a number of land use districts. However, all of these are located in districts:
o
o
o
o
o
o
along Bow Valley Trail;
in the Town Centre;
in Spring Creek;
at various locations in the Three Sisters area;
on Benchlands Trail (Inns district); and
SilverTip (Trail and Village districts).
Note: Not all visitor accommodation units are condominium style apartments (which is the subject of this
Request for Decision) as many are traditional hotel rooms.
Section 16: DEFINITIONS
“visitor accommodation means a building or group of buildings not intended for residential use where
sleeping facilities are provided for persons for periods of up to 30 days and which may also contain
recreational facilities, commercial uses and additional facilities including but not limited to eating
establishments, drinking establishments, room service, meeting rooms, public convention rooms, and
laundry service.
Where the majority of visitor accommodation units within the visitor accommodation contain suites of
more than 1 room, two or more of the following services shall be provided: eating establishment, drinking
establishment, room service, public convention room, or laundry service.
Visitor accommodation approved after January 3, 2012 shall also include the following:
a. a central management, a reservation service, and key disbursement
b. a single address for mail (not for individual units)
c. not serve as a residential address for utility billing or electoral enumeration purposes
2
Page 152 of 159
d. signage designating the development as a “hotel” or similar visitor accommodation use; and may
include a supervised front desk with attendant and be served by a single utility meter.
The Development Authority may allow alternatives to the above list where the intent is maintained to
provide short-term visitor accommodation. [05(Z)2012]
visitor accommodation, small scale means a development that contains a maximum of twelve visitor
accommodation units without cooking facilities and one residential dwelling unit with private cooking
facilities for the on-site management and operation, and a common kitchen and a dining facility for the
provision of meals to guests visitors.”
3)
Council Motion 77-2013 (April 16, 2013)
“Moved by Mayor Borrowman that Council accept the report, A Property Tax Policy Framework for the
Town of Canmore: Analysis and Recommendations, for planning purposes and direct administration to
craft a tax policy based on this report.”
CARRIED UNANIMOUSLY
A Property Tax Policy Framework for the Town of Canmore: Analysis and Recommendations
(March 2013)
Prepared for the Town of Canmore Property Tax Taskforce by Ben Brunnen, Policy, Research and
Stakeholder Engagement Consultant
Page 34: “Hotel classed properties, on the other hand, are subject to a bylaw limitation that prevents
owners from staying in the properties for longer than 30 days at a time. While the intent of the policy is to
ensure sufficient accommodation capacity exists in the Town, the effect could very well be depreciation in
the assessed values of hotel properties as a result of their inability to respond to market dynamics and
compete with tourist homes to meet demand for vacation properties. Municipal policies and regulations in
this regard should be reviewed, and inequities addressed ensure the accommodation and tourist home
industries in Canmore are competitive.
The taskforce agrees that these issues are complex and require further study in terms of their market
dynamics in order to determine the ideal tax policies and regulations for these properties.”
4)
Council Motion 79-2013 (April 16, 2013)
“Moved by Councillor Krausert that Council direct Administration to conduct a review of classification,
assessment use, market dynamics and tax policies relating to the tourist home residential subclass, visitor
accommodation, and hotel non-residential sector; and recommend municipal property tax and assessment
policies and regulations for these properties prior to setting tax rates for 2014.”
CARRIED UNANIMOUSLY
3
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5)
Bylaw 2014-07 & Council Motion 192-2014 (both approved August 19, 2014)
Amongst other things, the Bow Valley Trail Area Redevelopment Plan (“BVT ARP”) allowed for the
conversion of Visitor Accommodation zoned units to be converted to meet housing needs of employees in
the community. Bylaw 2014-07 enacted changes to the Land Use Bylaw to implement the matters
contemplated by the BVT ARP. Changes to the Land Use Bylaw included the following:
•
Adding the following definition:
“Temporary Staff Housing means the temporary conversion of a visitor accommodation unit to
provide housing for employees.”
•
Adding the following clauses to various sections of the Land Use Bylaw pertaining to different Bow
Valley Trail districts, i.e. sections 2.33, 2.34 and 2.35 of the Land Use Bylaw:
“The conversion of a visitor accommodation unit to Temporary Staff Housing may be allowed, at
the discretion of the development authority, where the unit is registered in a qualified staff housing
program or where a set of eligibility criteria are established and appropriate restrictions are
imposed on the unit.”
and
“Temporary Staff Housing is not required to be separate from visitor accommodation units, other
commercial uses or residential uses.”
However, before these new elements of the Land Use Bylaw could be put into practice, s. 5.2.2 of the BVT
ARP requires that an annual limit for the temporary conversion of visitor accommodation units to be
established prior to allowing any conversions to occur. Accordingly, Administration provided a draft policy
to Council to consider re Temporary Conversion of Visitor Accommodation Units. After some discussion in
Council, Administration requested the draft policy not be passed so that some revisions could be made. As
a result, Council passed the following:
“Council Motion 192-2014 – That Council postpone consideration of the Bow Valley Trail Annual Limits for
the Temporary Conversion of Visitor Accommodation Units Policy until administration returns with a
revised policy.”
For a variety of factors, this item remains in abeyance.
6)
Council Motion 161-2015 (May 26, 2015)
“Moved by Councillor Krausert that Council direct Administration to, upon completion of directions given
through motions 157-2015 through 160-2015, explore and report back to council with an evaluation of
options to address the problems associated with visitor accommodation zoning of condominium
apartments that have resulted in limited ability to finance units, significantly reduced property values and
removal of units from use as visitor accommodation.”
4
Page 154 of 159
DEFEATED
In favour: McCallum and Krausert
Opposed: Seeley, Sandford, Comfort, Borrowman, Russell
Note: In speaking to the motion, three dissenting members of Council acknowledged a problem with
visitor accommodation zoning but wanted to wait until after Administration returns with
recommendations on tourist homes. Recommendations were received by Council on tourist homes at the
Committee of the Whole meeting in September 2015, and then the status quo was recommended for the
time being at the Regular Meeting of Council on December 15, 2015.
DISCUSSION
Visitor Accommodation zoning was put in place in order to ensure that certain accommodation units
would not become residential, and to encourage use of them by tourists. While there may have been
some concerns from individual developers from time to time, until 2007 – 2008 the zoning was working
well and property values of the Visitor Accommodation units continued to hold their original value or rise.
In 2007, the world financial sector felt the hit from the sub-prime meltdown in the United States. This led
to a tightening of financing parameters by major financial institutions. Then, with the world economic
crisis of 2008, and even further restrictions on financing of real estate purchases, the availability of
financing for the purchase of Visitor Accommodation zoned units in Canmore practically dried up as banks
declined to finance commercial units with limited stay.
For the rare financing that a buyer is able to achieve to purchase one of these units, it is very much based
on the buyer’s personal net worth and there are some restrictions on the financing. For example,
purchasers have been required to sign an affidavit promising that they will not place their Visitor
Accommodation unit into the rental pool. Consequently, through the sale of these units, financiers are
essentially reducing the number of units that will actually be used for Visitor Accommodation.
To summarize the impact of the new world financial reality on owners of Visitor Accommodation zoned
units in Canmore, the results are alarming:
•
A significant decrease in value of Visitor Accommodation zoned units due to the market for these
units being limited to cash buyers. With less demand due to a smaller market (i.e. only cash buyers), the
value decreases. Values over the past six years have dropped from an average price of $450 psf for a fully
furnished unit down to the range of $250 - $300 psf, which is less than the prices being obtained for
similar unfurnished residential suites (i.e. $300 - $375 psf).
•
With lower values, there is a loss of economic rationale to maintain units to the high quality at
which they were built, which results in poor visitor experiences and counteracts tourist rental activities
over the longer term.
5
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•
Loss of value and the resulting difficulty in selling combined with the need of some owners to get
income from their unit can create a desperation causing some owners to disregard the limited stay
provision and enter into long-term rentals of their unit as a residence.
•
Despite a significant upward trend in the number of room nights occupied in Canmore over the
last couple of years, there is a downward trend in the number of Visitor Accommodation zoned units
placed in rental pools. For example, one particular Visitor Accommodation zoned development saw a 7%
decrease in the number of units in the rental pool in 2014 compared to the previous year despite having
nearly a 5% increase in the number of room nights occupied over the same period.
Impacts on the Town of Canmore
From a Town of Canmore perspective, there are four major impacts:
1.
Loss of the number of Visitor Accommodation zoned units actually being used for tourist
accommodation because:
o
o
o
people, who are fortunate enough to find a lender willing to finance a purchase, are agreeing to
their bank’s requirement to keep their units out of the rental market; and, therefore, less units are
available for visitors to use;
cash buyers are less likely to need rental income and are more likely to use the units for their own
personal vacation use, and therefore do not make there Visitor Accommodation zoned units
available for tourists to use; and
some units are being used for long-term residential rentals.
2.
Loss in value of the Visitor Accommodation zoned units will, over time, result in deterioration or
decrease in level of quality of the current Visitor Accommodation zoned units, which in turn has negative
impact on tourism.
3.
Significant drop in tax revenue for the municipality since the assessed value of the properties
reflect the decline in market value.
4.
It is possible that there will be few, if any, Visitor Accommodation zoned units built unless and
until purchasers of these units can get financing.
Of course, A Property Tax Policy Framework for the Town of Canmore: Analysis and Recommendations
(March 2013), recommended that the limited stay provisions be reviewed as such could lead to
devaluation of properties and their inability to compete in the visitor accommodation market. (see quote
on p. 3 above)
What is the Solution?
There may be many viable solutions. Of course, the purpose of this motion is NOT to propose a particular
solution but rather to direct Administration to seek solutions and report back to Council.
6
Page 156 of 159
Maybe the solution is advocating to the financial industry to better understand the Visitor Accommodation
product? Maybe the solution is changing the zoning to be tourist home type of zoning (i.e. allowing short
term stays but residential as well) as such provides the flexibility to allow the market to dictate the best
use of the property? Maybe the solution is dealing with each affected building on a building by building
basis? Maybe the solution is a combination of these items or something entirely different?
There is no doubt that this issue is potentially quite complex, but the complexity of the issue should not
prevent Council from asking the question or needing an answer.
To reiterate, if the fear of losing accommodation for tourists led to the creation of Visitor
Accommodation zoning; then, ironically, unless changes are made those fears will come to pass since
accommodation for tourists is being lost because of Visitor Accommodation zoning.
ALTERNATIVES ANALYSIS
The alternative is the status quo, which is not recommended given the concerns raised herein.
FINANCIAL IMPACTS
Resolution of the concerns currently associated with Visitor Accommodation zoning should have a positive
impact on assessed values of these properties, which will result in increased tax revenue for the
municipality. Of course, there may be expenditures associated with Administration carrying out the
direction of this motion.
STAKEHOLDER ENGAGEMENT
A number of individuals as well as a few condominium boards have written letters in support of this
motion. As of the date of submitting writing this report (December 29, 2015), 28 such letters have been
received (representing 48 individuals PLUS three condominium boards). All of these letters have been
forwarded to Council.
STRATEGIC ALIGNMENT
This motion relates to the following strategic goals:
Goal #5 - Canmore has a diverse economy that is resilient to change.
Goal #6 - Canmore is a viable community for people of diverse socio-economic backgrounds.
7
Page 157 of 159
Request for Decision
DATE OF MEETING:
January 2, 2015
Agenda #: G-2
TO:
Council
SUBJECT:
Fee waiver request for potential rental apartment.
SUBMITTED BY:
Alaric Fish, Manager of Planning and Development.
RECOMMENDATION:
That Council direct administration to waive application fees for a rezoning,
potential area redevelopment plan amendment, and subdivision application
for a potential residential apartment at 511 Old Canmore Road.
EXECUTIVE SUMMARY
The landowner at 511 Old Canmore Road has approached the Town with a concept to build a residential
rental apartment building on a vacant portion of the site. To help facilitate the provision of needed housing
the applicant has requested that the Town waive the fees associated with processing the application. The fees
for the necessary rezoning, a potential area redevelopment plan amendment and a subdivision application
amount to approximately $12,000.
PREVIOUS COUNCIL DIRECTION OR POLICY
The 2011 Comprehensive Housing Action Plan includes the following Priority Action item:
5. Affordable Market Rental Program
The Town should work collaboratively with developers and builders that seek to create new market
rental units, provided there is some reassurance that there would be some security of tenure. The
provision of any financial incentives would trigger the need to consider occupancy restrictions of
some sort.
DISCUSSION
The owner of the Coast Hotel has proposed to develop a rental apartment building on a vacant portion of
their site at 511 Old Canmore Road. The Hector development at Palliser has been the only large scale
purpose built rental development in Canmore in over 10 years (and perhaps more than 25 years). Rental
housing is frequently stated as one of the greatest housing needs in the community. In order to remove
obstacles to the creation of this type of private sector housing initiative a waiver of the municipal fees
associated with the required rezoning, any potential area redevelopment plan amendment, and subdivision is
recommended.
The estimated fees are as follows:
Rezoning to direct control district
Area Redevelopment Plan amendment
Subdivision
$4,100.00
$3,800.00
$4,055.00
Page 158 of 159
Fee waiver request for potential rental apartment
Page 2 of 2
This project has the potential to create approximately 90 units of market rental housing. There will be no
direct cost to the Town as processing these applications will be done with existing resources; although there is
a lost opportunity cost for time not spent on other initiatives.
There is some concern about fairness to other landowners that might also propose market solutions to
improve housing options. In this case we have an applicant that is proposing rental housing and that makes
this application the only such private sector initiative in recent years. At this point, Administration is
recommending proceeding with the fee waiver incentives requested because of the potential to facilitate a
needed form of housing. This is consistent with the approach proposed in the CHAP document, but further
details will need to be provided later to confirm that the rental nature of the proposal can be achieved.
If Council or the applicant becomes uncomfortable with the process at a later stage, there is no obligation to
continue. Later stages of development may result in further incentives being requested and Council can
consider those as further details are provided.
ALTERNATIVES ANALYSIS
Council could deny the request to waive the application fees. This is not recommended as there are no other
current proposals to develop rental housing on private land.
FINANCIAL IMPACTS
None.
STAKEHOLDER ENGAGEMENT
There has been no stakeholder engagement to date on this application, but this is appropriate given the stage
of the proposal at this time. When the rezoning proceeds there will be a Public Hearing, but there will be no
ability for the community to comment on the fee request.
STRATEGIC ALIGNMENT
This proposal is consistent with the #1 strategic priority of the 2016-18 Strategic Plan: Increase affordable
housing stock.
ATTACHMENTS
None.
AUTHORIZATION
Submitted by:
Alaric Fish
Manger of Planning and Development
Date:
December 30, 2015
Approved by:
Katherine Van Keimpema
Manager of Financial Services
Date:
n/a
Approved by:
Michael Fark
General manager of Municipal
Infrastructure
Date:
December 31, 2015
Lisa de Soto, P.Eng.
Date:
December 31, 2015
Approved by:
Page 159 of 159

Agenda - Town of Canmore

Transcription

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