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HomeMy WebLinkAboutADM-001-03 CJiJ!iJ1gtOO REPORT ADMINISlRA liON Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Report #: ADM01-03 File#: fj /q 6(JfI-61Y--03 /,1 By-law #:p dJ:J- ,~O Date: January 29, 2003 subject: Accommodation and Conference Centre Study for Clarington RECOMMENDATIONS: 1. THAT Report ADM01-03 be received; 2. THAT The Municipality undertake a Feasibility Study for a Hotel Accommodation and Conference Centre; 3. THAT the Chief Administrative Officer be authorized to enter into an agreement with INAC Services Limited for the purpose of securing Provincial matching dollar funding to finance the completion of the Accommodation and Conference Study for the Municipality of Clarington and its partners; 4. THAT the Municipality's 16.67% share of the study's cost be drawn from the Industrial & Economic Development Reserve Account; and, 5. THAT the attached draft Request for Proposal be finalized by staff for circulation with the award of the proposal being conditional upon receipt of Provincial funding. ~'- () C~ ~-(A.-)~ Submitted by: Franklin Wu, Chief Administrative Officer FW*jla Attachment: RFP _ Consulting Services with respect to a Feasibility Study for Hotel Accommodation and Conference Centre CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOW MANVILLE, ONTARIO L 1C 3A6 T 905-623-3379 F 905-623-5717 . 1401 REPORT NO.: ADM01-o3 PAGE 2 1.0 BACKGROUND On December 9, 2002, the Communications & Tourism Division was contacted by Ms. Charlene Gordon an associate of INAC Services Limited. Ms. Gordon's purpose was to interview the Manager of Communications & Tourism regarding the Municipality's potential participation in a marketing study being investigated by Mosport International Speedway - a significant Clarington tourism attraction. Ms. Gordon and INAC Services Limited have been retained by Mosport for the purpose of securing Provincial funds to finance the implementation of a detailed marketing study to assist Mosport (and Bridgestone/Firestone Racing Academy) increase their share of the American motor sport market. During the telephone conversation, a question was raised regarding barriers to attracting American visitors to the Clarington community. The Municipality's concern regarding the lack of adequate accommodation and conference space is quite well known. Ms. Gordon stated that the funding being investigated would provide funding for a study of this nature and that, if the Municipality was interested, this study could be incorporated into the overall funding application identifying Mosport International Raceway and the Municipality of Clarington as partners. This partnership would enhance the overall attractiveness of the application as it demonstrates a broad basis of community support. 2.0 PROPOSAL The Province of Ontario operates on an April 1st to March 31st fiscal year. This means that there is opportunity to submit a proposal for funding prior to the completion of the Province's 2002 financial year. With this in mind, a "Project Registration Form" has been prepared for the Ontario Ministry of Agriculture, Food and Rural Affairs for consideration under the Rural Economic Development (RED) program. The objective of the Accommodation and Conference Centre Study is defined as follows: . 1402 REPORT NO.: ADM01-o3 PAGE 3 '7he proposed accommodation and conference facilities review will assess both the types and the amount of visitor accommodation and conference services currently available in the Municipality of Clarington as well as identifying gaps. Such a review is particularly critical not only in terms of accommodating the large crowds attending events at Mosport International Speedway, but also in view of Clarington's success in being considered as the potential site for the International Thermonuclear Experimental Reactor (ITER). Future visitor traffic to the area could increase dramatically. High quality accommodation with a wide range of amenities will be expected. The results of the review will enable the private sector in the Municipality of Clarington to develop appropriate action plans. " As the Province is only interested in receiving one application, and on the advice of the funding consultant, the Municipality's Accommodation and Conference Centre Study has been incorporated into the application being submitted on behalf of Mosport International Speedway, BridgestonelFirestone Racing Academy; and the Clarington Board of Trade. The funding consultant, I NAC Services, is paid a percentage based on the total amount of funding that is secured on the behalf of the partnership. Also, given that there is more than one partner and more than one study being carried out, the funding consultant will be responsible for collecting all documentation from each partner and producing a single financial report to be submitted to the Province in agreement with the requirements of the funding process. 3.0 CLARINGTON'S INVOLVEMENT The Municipality's involvement with this project is as the lead organization for the purpose of the Accommodation and Conference Centre Study only. In this capacity, the Municipality will co-ordinate the process of retaining and liaising with the consultant selected to organize and implement the study. , 1403 REPORT NO.: ADM01-o3 PAGE 4 A study of this scope generally costs in the neighbourhood of about $ 20,000 - $ 40,000 but with the anticipated Provincial matching funding (50% of total expenses), the cost of the study becomes significantly reduced. The Municipality has a vested interest in the completion of this study especially with the prospect of the ITER project being awarded late summer or early fall. Existing business conditions enable the Municipality to seize this opportunity and to get this study completed quickly and efficiently. At this time there are two separate stakeholders who already own property adjacent to Highway 401 and have expressed an interest in attracting hotel investment. They have also confirmed their interest in participating (financially) in this project - the Municipality and the two development interests would each contribute 16.67% of the study costs. By equalizing the cost of the study, each partner would be responsible to contribute approximately $ 5,000 to the completion of the study. This makes the whole process and end result extremely cost effective. A Steering Committee for the study would comprise of the Chief Administrative Officer, the Director of Development Services, the Manager of Communications & Tourism and the Business Development Manager of the Clarington Board of Trade. 4.0 CONCLUSION The lack of adequate accommodation space in the Municipality of Clarington is a fact and is a major impediment to our economic development efforts. Unfortunately, from an investment attraction perspective, it is unsubstantiated as there is no documentation to support or refute it. The availability of potential Provincial funding to cover 50% of the total study cost plus the availability of a private partnership to cover the balance of the project, supports the concept that now is the time to complete the Accommodation and Conference Centre Study. By doing this, the Municipality positions itself to step-up its efforts to attract new hotel investment. Should the ITER bid be confirmed to the Clarington location, the need for this study will be heightened immensely. Even without ITER, the increase in quality accommodation space will have a sizeable impact on the local economy in the form of jobs (seasonal and full-time) and new investment opportunities for interested stakeholders. '1404 REPORT NO.: ADM01-o3 PAGE 5 Council is being asked to authorize the Chief Administrative Officer to proceed with the arrangements with the funding consultant, Ms. Charlene Gordon, and INAC Services. Council is further being asked to approve, forthwith, the attached draft Request for Proposal so that it can be finalized and forwarded to Corporate Services - Purchasing Division for circulation. The RFP is necessary to enable the Municipality to find a qualified consultant to organize and implement the Accommodation and Conference Centre Feasibility Study. Again, if the funding application is not approved, the Request for Proposal will not be awarded unless an alternate source of funding can be located and confirmed. . 1405 ATTACHMENT REQUEST FOR PROPOSALS Consulting Services to the Municipality of Clarington with respect to a Feasibility Study for Hotel Accommodation and Conference Centre Backl!round To match description in report Purpose of Stud v To review the 10 new hotel acco cting Obiectives The following should be considered as a general outline, and not in any way limit the study to only those objectives listed. Furthennore the order does not infer any priority or ranking of the objectives. a) Hotel The consultant shall undertake an assessment of the local and regional market to detennine the existing supply and demand for hotel accommodations. Of note, Mosport International Speedway has identified the lack of accommodation in the area as a major impediment to expanding into market competitiveness. The assessment shall, among other things, identify existing supply by facility quality and amenities offered with the accommodation. The study shall also identify, the historical occupancy and room rate trends and market segmentation, as well as occupancy patterns of the market utlilizing existing facilities. Using the data collected on existing facilities, the consultant shall prepare a forecast of hotel accommodation demand. The forecast should identify the viability, size and quality of new hotel accommodations, with and without ITER, locating in Clarington. In addition, the forecast should consider future competition in the local and regional market. The study should also identify the impacts of constructing a conference centre/banquet facility in conjunction with new hotel accommodations. The consultant will be responsible for analyzing the financial viability of new accommodations in Clarington, detailing the return on investment including a timeline. . 1406 In addition, the financial analysis should include a detailed revenue and expense analysis. Lastly, the study should identify the impact on existing hotel accommodation facilities in Clarington. b) Conference Centre The consultant shall undertake an assessment of the local and regional market to determine the existing supply and demand for conference! and banquet facilities. The consultant shall prepare a demand forecast for conference banquet facilities. The forecast should identify the floor area that can be supported for such a facility and should consider any future competition in the local and regional market. The forecast should identify the viability of a conference centre development with and without ITER locating in Clarington. The study should identify location factors that may impact the viability of a conference and banquet centre. The consultant will be responsible for analyzing the financial viability of a conference and banquet centre in Clarington, detailing the return on investment for a minimum five (5) year timeframe. The financial analysis should include a detailed revenue and expense analysis. In addition, the study should identify the impact on existing facilities in Clarington. Meetinl!s Two (2) meeting with the Accommodations and Conference Centre Feasibility Steering Committee. One start up meeting and one to review the draft final report DeJiverables . Preparation and submission of ten (10) bound copies of a draft written report. . Preparation and submission of ten (10) bound copies of the final written report. . Electronic version of fmal written report in MS Word. . Twenty (20) copies of final report on CD Rom in PDF format (Adobe Acrobat). . 1407 Work Prol!ram The consultant shall identifY a work program and outline their approach to meeting the Study objectives. The Study is to be completed no later than , 2003. Fundinl! The award of this contract is dependent upon receipt of funding from various sources, including a Rural and Economic Development grant Oualifications and Per Diem Rates The consultant is requested to identifY a team with personnel that will be assigned to specific aspects of the stud and their relevant experience an education. The er diem rates for each of the identi pe el m e provid RFP Tender Date: RFP Closing Date: Evaluation: Interviews if required Award February 17, 2003 March 7, 2003 March 10 to 14,2003 March 17 to 21, 2003 March 24, 2003 subject to funding . 1408