Community and Protective Services Committee
Comité des services
communautaires et de protection
and Council / et au
Conseil
10 November 2011 / le 10 novembre 2011
Submitted by/Soumis par : Steve Kanellakos, Deputy City Manager/Directeur
municipal adjoint, City Operations/Opérations municipales
Contact Person/Personne ressource : Dan Chenier, General Manager
Parks, Recreation and Cultural
Services/Services des parcs, du loisir et de la culture
(613) 580-2424 x24295,
Dan.Chenier@Ottawa.ca
Ref N°: ACS2011-COS-PRC-0012 |
SUBJECT:
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OBJET :
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Complexe récréatif de Kanata Nord – droits
d’appellations liés aux commandites |
That the Community and Protective
Services Committee recommend that Council:
1. Approve the
offer from the Richcraft Group of Companies to acquire the naming rights for
the Kanata North Recreation Complex to be named the “Richcraft Recreation
Complex – Kanata” as outlined in this report.
2. Authorize
the General Manager of Parks, Recreation and Cultural Services to finalize and
execute a Naming Rights agreement with Richcraft Group of Companies.
Que
le Comité des services de protection et d’urgence recommande au Conseil :
1.
d’approuver l’offre
faite par le groupe Richcraft Group of Companies relative à l’acquisition des
droits d’appellation du Complexe récréatif de Kanata Nord qui s’appellera
« Complexe récréatif Richcraft – Kanata », comme l’indique ce
rapport;
2.
d’autoriser le
gestionnaire principal du Service des parcs, des loisirs et de la culture à
mettre au point et à conclure une entente portant sur les droits d’appellation
avec le groupe Richcraft Group of Companies.
On April 11, 2011, Council approved the construction of a new recreation complex located at 4101 Innovation Drive in Kanata. The new complex will be 95,000 square feet in size and will feature an 8 lane, 25M lap pool, a leisure pool, a community centre, 2 gymnasiums , a fitness centre, outdoor sports fields, courts, skate park and play areas. Construction will start in December 2011 and will be completed by September 2013.
In
a September 2010 report to Council on the design, construction, operation and
maintenance of the Complex, Council authorized the General Manager of Parks,
Recreation and Cultural Services to work with the KNRC Steering Committee, a group
comprised of local residents, to finance enhancements to the facility. Council also approved a community funding
plan prepared by the KNRC Steering Committee, which included the sale of naming
rights to the entire facility and individual components therein, with proceeds
to be directed towards the fund raising goals for facility enhancements.
The
September 2010 report to Council on the design, construstion, operation and
maintenance of the Complex identified a
community funding plan to finance enhancements to the facility including
$500,000 for naming rights to the Complex.
By way of a letter dated October 17, 2011, the President of Richcraft Group of Companies, Mr. Kris Singhal put forward a formal proposal to acquire the naming rights for the facility.
Richcraft
Group of Companies has proposed to pay the City $500,000 to acquire the naming
rights for the Kanata North Recreation Complex. The offer would provide the City with
$100,000 at the time of formalizing the contract and an additional $100,000 for
the next four years on each anniversary of the agreement. Richcraft would hold the naming right for 15
years until 2026, with the option to renew at that time.
Though negotiations of a Naming Rights agreement will
finalize details, it is anticipated that this arrangement will include exterior
and interior signage bearing the Richcraft name, use of the Richcraft name on
all Citywide and local publicity relating to the facility and its programs, and
promotional opportunities at the site.
In March 2011, Council approved a series of Corporate
opportunities and a marketing plan that includes the active pursual of the sale
of facility naming rights. Large
recreation complexes, like the Kanata North facility, were identified as prime
opportunities for naming rights.
Richcraft has been building in Kanata for over 25 years and is an active
supporter of community initiatives. As
a well respected company in our community, Richcraft would make an ideal
partner in this sponsorship venture.
Given the scale and unique nature of the sponsorhsip
opportunity, coupled with the strong profile and tradition of Richcraft within
the Kanata community, the naming rights proposal was pursued as a
non-competitive proposal that met the financial target outlined in the Design,
Construction, Operations and Maintenance report approved by Council at its
meeting of September 22, 2010.
A Community Steering Committee for the KNRC project
was formed under the direction of Councillors Marianne Wilkinson and Eli El-Chantiry
with a mandate to review and provide input to the development of the facility
program and design including development and execution of a fund raising plan
to support community-requested enhancements to the KNRC.
The
Fund Raising Plan developed by the Committee included a goal of achieving
$500,000 for the naming rights of the facility as outlined nt he September 2010
report.
The Community Steering Committee is aware of and supportive of the naming
proposal.
The
General Manager of Parks, Recreation and Cultural will ensure that the
finalized Naming Rights Agreement with Ritchcraft fully complies with the terms
of City’s Sponsorship and Advertising Policy such as proivisons of termination
by both parties and provisions respecting renewal.
The new Complex is being developed to serve the north west area of the City, including rural West Carleton-March Ward. The site of the Complex was in part selected for its accessibility to rural residents.
The Community Steering Committee is aware of and supportive of the naming
proposal. The Chief Procurement Officer
has confirmed that the recommended proposal is in keeping with the terms and
conditions of the City’s Sponsorship and Advertising Policy.
Councillor Wilkinson is supportive of the recommendations within this report.
On September 22nd,
2010, as part of its initial consideration of this project, Council decided
that the sale of the naming rights for this facility should occur in conformity
with the City’s Sponsorship and Advertisement Policy (the “Policy”). As a result, it is contemplated that the
Policy be followed in this matter. It is
noted that the proponent’s proposal for naming rights is a non-competitive
proposal, which are permitted to be considered under the City’s Policy under
certain circumstances. It is further
noted that the proposed naming rights in this case are for a 15-year term with
a further option to renew for an undetermined length of time. It is
recommended that, upon Council approval of this proposal, the naming rights
agreement to be concluded by staff with the proponent provide a termination
provision for the City as contemplated by the Policy, and further provide that
the City may at its discretion require additional payments from the proponent
for the naming rights in the renewal period if the option to renew is taken up.
There are no risk management implications associated with this report.
Strategic
Priority: Healthy and Caring Community
HC2 - Improve parks,
recreation, arts and heritage
Provide accessible,
inclusive and quality parks, recreation services and urban spaces for leisure,
arts and heritage that respond to demographic trends in population and
activity.
Current Actions: Design and construct the Complex, a major recreation facility that will include an indoor pool, full service community centre and outdoor sports fields.
There are no technical implications associated with this report.
There are no financial implications associated with this report.
ACCESSIBILITY IMPLICATIONS
The facility will be fully compliant with all current AODA standards and is the first recreation facility where as many of the 2025 AODA standards as possible are incorporated into the facility.
Document 1 - Proposal Letter from Richcraft Group of Companies.
Subject to approval of this report, the General Manager of the Parks, Recreation and Culture Department will finalize an agreement with Richcraft to the satisfaction of Corporate Legal Services.