Edmonton Soccer Association
12720 Victoria Trail
Edmonton, AB, T5A 5G4

General Inquiries:
780-413-4125 Ext. 1

Fax: 780-406-4976

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Executive Summary

This business case has been updated after the schematics phase for the expansion of the existing South Indoor Soccer Centre, owned by the City but operated by Edmonton Soccer Association (“ESA”), by adding a new adjacent facility on the existing site containing two additional fields for completion in first quarter 2020 or ate 2019.Construction would start in first or second quarter 2019., depending on the date City Council approves the City’s Capital budget contributions as part of the 2019-23 Capital budget process..

Both Conceptual Design and Schematics phases have been completed by BR2 Architecture. Site plans, floor plans, and exterior renderings are attached. An updated construction cost estimate has been provided at $15.9 million plus contingencies, design fees, City fees, boards, tempered glass and furniture, fixtures and some equipment for a total project cost of $21.8m. This will be updated.as design development and detailed design progresses. The Concept phase and Schematics were funded by ESA. Current updated costs for the concept phase and schematics are $150,000.

ESA is a not for profit association incorporated in Alberta. Its Members are Edmonton Minor Soccer Association (“EMSA”) and Edmonton District Soccer Association (“EDSA”). ESA operates three existing Indoor Soccer Centres built and owned by the City as well as the outdoor Bill Gilhespy Soccer complex at Henry Singer Park.

Soccer is the largest participation sport in Edmonton, and one of the largest winter participation sports. Currently over 23,700 hours are utilized annually in the three Indoor Centres. In addition indoor soccer is a popular spectator sport with over $550,000 revenue collected annually, currently at $4/ day or $29/ season pass. That translates to 138,000 visitors per year.

The need has arisen primarily due to the recent and projected growth in youth teams’ soccer registrations and the popularity of a ball hockey winter program that started in 2013 using field 6 in the East Indoor Soccer Centre. By October 2019, at the latest, the Indoor Soccer Centres may have to end the use of Field 6 and convert back to soccer use at a time when Ball Hockey and other concrete sports groups would instead wish to double their winter programs. There is also unmet demand for more hours for use by senior teams for practices, coaching and referee clinics for the youth, and tryouts by each EMSA Zone. Additionally, our public outreach process has confirmed significant demand for our facilities from other sports groups such as Lacrosse, Inline hockey, Indoor Tennis for kids and Pickleball. If available these groups along with Ball hockey could have used 100% of prime time hours on 3 additional fields not just the one we are proposing.

The final project is currently estimated to cost approximately $21,800,000, although it is hoped contingencies will not be fully required and significant savings generated from competitive bidding in the weak economy. The City has already approved capital budget funding of $2m to fund the design development and detailed design through preparation of construction ready drawings.

The current project budget will require an additional Capital Budget contribution of $ 9,035,000 plus an initial capital financing contribution from the City of $9,500,000 in the form of a 20 year repayable debt repaid with interest at the current prevailing cost of funds rate, assumed to be 3% but likely lower due to low interest rates, in monthly lease instalments by ESA, which operates all the existing Indoor Soccer Centres under long term lease and operating agreements. This proposed financial model is consistent with the existing partner model used for all 3 existing Indoor Soccer Centres. $1,250,000 will be funded by Provincial grants, and contributions from ESA and Ball Hockey.

The Project’s viability takes advantage of the significant rent reductions on all three Indoor Centres starting with the East in February 2020, West in December 2023 and South in November 2024. These rent reductions provide the means to finance the construction of the new facility with a $9,500,000 debt whose debt service will be significantly covered by the increased operating cash flow arising from these reductions, which total $982,298 / year after November 2024.

Projected net additional annual operating revenues from the new facility are $323,000 before the additional rent to the City of $632,000. The shortfall will be offset by the rent reductions for the East from February 2020.

The new facility will continue to be aligned with the City of Edmonton Recreation Facility Master Plan and other strategic policies and will be a multi sport facility with public access, designed to meet the requirements of all applicable City policies such as Leed Silver Certification and % for Art.

After its completion the City and ESA will be asked to amend the existing lease and operating agreement for the South Indoor Soccer Centre to reflect the new facility and increase its annual funded Capital Reserve Contribution by $181,000 / year, based on 1.5% of Building costs (not Total project costs). By August 31, 2024 ESA projects a balance on Accumulated Capital Reserve Fund of approximately $3,700,000.

Alternatives have been evaluated in the Business Case but at this time the South expansion appears to be the best and most viable option.

Extensive public consultation was carried out including 3 Open Houses, presentation to City Sports Field Users Allocation Committee, full disclosure on ESA website, Conceptual drawings permanently displayed at all 3 existing Centres, meetings with all potential stakeholder groups including Ball Hockey Edmonton, Edmonton Minor Ball Hockey, Greater Edmonton Lacrosse, Vimy Lacrosse Academy and Tennis for Kids. Invitations also sent to Edmonton Inline and Field Hockey organizations.

Critical success factors at this design phase, include receiving funding support from City Council no later than October, 2018 , approval by the Province of $1,000,000 CFEP-major grant and the financial commitment of various stakeholders including Ball Hockey and Lacrosse organizations for their minimum capital contribution of $100,000. (preliminary financial commitments have been obtained). ESA financial contribution of $150,000 has already been spent through the schematics phase.

In conclusion, this project should be approved by City Council and Province of Alberta.

The project will allow Soccer to grow, add coaching and referee clinics, expand the number of tryouts, and offer significantly expanded practice hours for teams. The project will also provide increased prime time on the new turf field for non soccer groups such as Lacrosse Academies and tennis for kids and pickleball.

The project will allow Ball Hockey to operate a winter program from early 2020 using two concrete fields instead of one, which will significantly increase their winter program and increase availability for other groups like Lacrosse and Edmonton Sports and Social Club. If not approved, the Ball Hockey winter program will likely be cancelled in 2019 in order to accommodate the needs of Soccer. This will put at risk the continued support of Ball Hockey to use our facilities for their summer programs which contribute over $400,000 / year in revenue.

All these objectives will be met without creating significant financial burden to ESA’s continued operation of all the Indoor Soccer Centres.