Niagara Convention

1
Niagara Convention Civic CentreProgress
ReportPresentation to the Niagara Falls
Chamber of Commerce
2
Presentation Overview

• Historical Perspective
• Need for a Convention Centre
• Research Feasibility Analysis
• Site Selection Process
• Business Model
• Corporate Governance
• Construction Timeline
• Project Update
• Economic Benefits For Stakeholders

3
Historical Overview

• Convention Centre Discussed for 30 years
• Unable to Assemble Necessary Ingredients
• Convention Centre may NOT have been Viable 20
  30 years ago
• Recent Efforts to Develop the Facility
• Gateway Project
• Casino RFP
• Mayor Thomsons Committee

4
Need for a Convention Centre in Niagara Falls

• Improve Hotel Occupancy 2007 56
• Create New Jobs / Year Round Employment
• Major Destination Primary Gateway to Canada
• Tourism Growing But Intensification of Global
  Competition
• Long Term Impediments to Growth of Transient
  Tourist Market in Niagara Falls

5
Why Invest in a Convention Centre?

• Strengthen Core Growth Industry (Tourism)
• Diversification of Niagaras Visitor Mix
• Lucrative Segments Corporate Institutional
  Clients
• Compliments Existing Infrastructure Efficient
  Use of Resources
• Good Yield Management Creation of Incremental
  Off-Season Business
• Opportunity to Showcase Niagara to Potential
  Investors (Delegates at Conventions)
• Conventions Meetings Growing Market in Canada

6
Six Core Principles of Project

• 1. Conduct Appropriate Research
• 2. Obtain Broad Stakeholder Support
• 3. Apply Industry Best Practices in Business
  Model, Design and Operation
• 4. Conduct a Fair Open Procurement Process
• 5. Leverage Local Private Sector Investment with
  Provincial Federal Funding
• 6. No Cost to Citizens of Niagara / City of NFO

7
Research

• Consultation with Key Stakeholders Community
  Leaders
• Convention Centre Feasibility Analyses
• 1995 Touristics
• 1997 - KPMG
• 1999 - Touristics
• 2000 PKF Consulting
• 2004 PKF Consulting
• 2006 PKF Consulting
• All Supported Viability of the Project
• Competitive Supply/Demand Analysis
• Trends Analysis
• Benchmark Projects
• Focus Groups
• Discussions with Practitioners and Industry
  Experts

8
Criteria Necessary for a Successful Convention
Centre

• Minimal Number of Upscale Hotel Rooms in City
• Close Proximity to Major Hotel Brands
• Critical Mass of Entertainment Options
• Geographic Proximity to Large Population Centres
• Good Transportation Infrastructure
• Nearby Access to Major Airport
• Recognizable Destination Name Helps
• Minimal Debt on Convention Centre Complex
• Functional Building
• Strong Sales Management Team

9

• Meeting Planner Focus Groups
• Niagara Is A Desirable Convention Destination
• Niagara Has Great Attractions, Hotels
  Entertainment
• The Convention Centre Should Be A Green
  Building
• NCCC Should Have State-of-the-Art Technology
• Branded Onsite F B Facilities Are Desirable
• Onsite Information Convenience Services Are
  Needed
• Service Will Be A Critical Factor For The
  Facility
• Transportation To Niagara Around Town Is
  Important
• Niagara Needs To Do A Better Job Marketing Entire
  Destination (Wine Country, History, Culture, Golf
  etc.)

10
Site Selection Land RFP

• 2001 - Preliminary Site Evaluation by PKF
  (Niagara Falls)
• 13 Potential Sites Analyzed -3 Preferred Sites
  Identified Ranked.
• 2005 - Site Selection Process and Formal RFP
  Conducted
• Independent Site Selection Committee Formed
• Dr. Dan Patterson President, Niagara College
• Arlene White Ministry of Tourism
• Donald Ziraldo Founder, VinCor
• Julia Kamula Sr. VP, Osprey Newspapers
• Patrick Gedge CEO, Niagara Economic Tourism
  Corporation
• RFP Public Process, Solicited Proposals from
  All Landowners in Tourism Core
• RFP Received Three (3) Proposals
• Committee PKF Made Extensive Analysis of All
  Proposals Submitted
• Committee Unanimously Selected Stanley Avenue
  Site as Preferred Location

11
Fallsview Casino
Embassy Suites
Minolta Tower
Marriott Fallsview
Radisson Fallsview
Sheraton Fallsview Hotel and Conference Center
Development Site
Parking
Loretto Complex
Lands Owned by Region of Niagara
Carmelite Lands
Mount Carmel Spiritual Centre
12
Locational Attributes

• Opportunity to Create New Development Node
• Fallsview to Marineland
• Consistent with Citys Tourism Master Plan
• NCCC Catalyst for Private Sector Investment
• Empty Land Likely New Developments
• Desired Outcome
• Incremental Property Taxes for City Region
• New Jobs Created
• New Critical Mass of Tourist Attractions /
  Accommodations
• Close Proximity to Proposed People Mover Route

13
World Class Location
14
Business Model

• City of Niagara Falls Will Own the Convention
  Centre (Municipal Capital Facility)
• City of Niagara Falls Will be Responsible for the
  Construction of the Complex
• NCCC to Lease Convention Centre From City of
  Niagara Falls for One Dollar ( 1.00) per year
  for 50 years
• Convention Centre Will Not Have Any Debt
• Improved Viability for Project
• Reduces Risk to City
• NCCC Responsible for All Operating Expenses

15
Capital Funding Model
16
Operating Structure

• Niagara Convention Civic Centre Inc. (NCCC)
• Single Purpose Corporation
• Will Operate the Convention Centre as a
  Non-Profit Entity
• NCCC Responsibilities
• Directly Oversee the Operations of the Complex
• No Management Company
• No Outside Catering Company
• Cover All Operating Expenses
• Pro Forma 7 million Income EBITDA of 300K
• NCCC Future Fund 15 million
• For Capital Improvements, Marketing and
  Operations
• Fallsview BIA 13.0 Million
• Victoria Centre BIA 1.5 Million
• NPC NF Bridge Commission 0.5 Million

17
NCCC Inc. Corporate Governance

• City of Niagara Falls
• Region of Niagara
• Fallsview BIA
• Victoria Centre BIA
• Niagara Parks Commission
• FMC / OLG
• Niagara Falls Tourism
• NFBC /Others
• President General Manager (K. Painter)

18
Proposed Facility Program
19
Preliminary Rendering of Niagara Convention
Civic Centre
20
Development Process

• Procurement Format Design-Build
• Consultation with Provincial Federal Govt.
• Consortia Teams Created (Contractors, Architects,
  Engineers, etc.)
• Guaranteed Price Stipulated at Start of Project
• Performance Bond to Guarantee On Time Completion
• NCCC to Provide Operational Specifications
• Construction Management Firm
• City has Hired MHPM (largest project management
  firm in Canada)
• Recruiting Compliance Team
• RFP Issued Summer 2009
• Anticipated Completion Date Spring 2011

21
Project Update

• Acquired Land
• Funds Secured from All Major Donors
• Marketing Plan Completed Case Booth
• Advertising Agency Hired Cundari SFP
• Brand Launch May 2008
• Website Operational Fallsconventions.com
• President/GM Hired Ms. Kerry Painter, CFE
• Sales Staff Recruiting Summer 2008
• Temporary Offices at Fallsview Casino - June
• Booked FCM Convention 2014

22
Economic Impact of Convention Centre Development

• 93 million per year in direct new visitor
  expenditures (before multiplier) in the Region
• 75 outside the accommodation sector
• 100 million in new private sector projects
  around Region
• 867 person years of direct employment
  (construction)
• 26 million in regional expenditures during
  construction (materials)
• 514,000 new visitors per year
• 1,000 person-years of employment (convention
  centre operations)

23
Investor Benefits

• Tourism Sector Impacts
• Hotel Sector
• 173,000 new room nights per year
• 70 of this new demand Off Season
• Niagara Casinos
• 65 million over NCCCs first five years of
  operation
• Provincial Impacts
• 45 million dollars over NCCCs first five years
  of operation.
• Federal Impacts
• 75 million over NCCCs first five years of
  operation

24
Project Summary

• Broad Economic Benefits to All Stakeholders
• 500,000 convention delegates per year
• 93 million in new annual delegate expenditures
• 100 million in additional private sector
  developments
• 172,000 new room-nights per year (mostly in
  off-season)
• 2,500 person-years of year-round employment
• High Return on Investment / Short Payback
• Leverages Local Private Sector Investment with
  Federal Provincial Funding
• No Debt on Facility- Improves Economic Viability
• Strategic Location of Complex Maximize Long
  Term Economic Opportunities
• No Cost to Citizens of Niagara

25
NCCC Evolution of Niagara as a World Class
Destination

• Illustrates Niagaras Increased Competency
• To Structure a Viable Business Plan
• To Orchestrate a Complex Public-Private Funding
  Model
• To Develop a State-of-the-Art LEED (green)
  Building
• To Apply Industry Best Practices in the Operation
  of the Facility
• To Recruit Top Professional Talent from Across
  North America
• Ability to Attract and Service Complicated Trade
  Shows Conventions
• Reached Critical Mass in Infrastructure
  Accommodations, Attractions, Dining,
  Transportation
• Hospitality Culture Ability to Sustain Growth