1.          SponSORSHIP NAMING RIGHTS – KANATA NORTH RECREATION COMPLEX

 

Complexe récréatif de Kanata Nord – droits d’appellations liés aux commandites

 

 

COMMITTEE RECOMMENDATIONS

 

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.

 

 

RecommandationS DU Comité

 

Que le Conseil :

 

1.      approuve 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.      autorise 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.

 

 

 

 

Documentation

 

1.                  Deputy City Manager, City Operations report dated 10 November 2011 (ACS2011-COS-PRC-0012).

 

 

Report to/Rapport au :

 

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

 

Kanata North (4)

Ref N°: ACS2011-COS-PRC-0012

 

 

SUBJECT:

SPONSORSHIP NAMING RIGHTS - KANATA NORTH RECREATION COMPLEX

 

 

OBJET :

Complexe récréatif de Kanata Nord – droits d’appellations liés aux commandites

 

 

REPORT RECOMMENDATIONS

 

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.

 

 

RECOMMANDATIONS DU RAPPORT

 

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.

 

BACKGROUND

 

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.

 

DISCUSSION

 

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.

 

RURAL IMPLICATIONS

 

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.

 

CONSULTATION

 

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.

 

COMMENTS BY THE WARD COUNCILLOR(S)

 

Councillor Wilkinson is supportive of the recommendations within this report.

 

LEGAL IMPLICATIONS

 

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.  

 

RISK MANAGEMENT IMPLICATIONS

 

There are no risk management implications associated with this report.

 

CITY STRATEGIC PLAN

 

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.

 

TECHNICAL IMPLICATIONS

 

There are no technical implications associated with this report.

 

FINANCIAL IMPLICATIONS

 

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.

 

SUPPORTING DOCUMENTATION

 

Document 1 - Proposal Letter from Richcraft Group of Companies.

 

DISPOSITION

 

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.