COMMITTEE OF THE WHOLE AGENDA Thursday, May 21, 2015 At … Documents/2015... · 5/21/2015 · committee of the whole agenda thursday, may 21, 2015 at 4:00 p.m. in the classroom

COMMITTEE OF THE WHOLE

AGENDA

Thursday, May 21, 2015 At 4:00 p.m. in the Classroom

1. CALL TO ORDER

2. DISCLOSURE OF PECUNIARY INTEREST

3. DEPUTATIONS, PRESENTATIONS, PETITIONS AND PUBLIC MEETINGS

a) Mr. Scott Emslie will be in attendance to provide an update on the Center of

Gravity Sports and Music Festival

4. UNFINISHED BUSINESS a) 2015 Grant Requests b) Discussion on Future Plans for Beach Area 1

5. NEW BUSINESS

a) Review of Beachfront Retail Leases

Recommendation: That Committee of the Whole receive the report on current Beachfront Food and Retail Leases; and, Further That Committee of the Whole recommends that Council approve the template commercial lease for use by the Town for the 2015 season, subject to minor amendments that may be authorized by the Chief Administrative Officer during the negotiations of the leases; and, Further That Committee of the Whole recommends that Council authorize the Mayor and Clerk to sign the negotiated leases as recommended by the Chief Administrative Officer.

COWOC – May 21, 2015 Page 2 of 2

b) Direction on RFP for Dardenella Recommendation: That Committee of the Whole receive the Chief Administrative Officer’s report advising that negotiations for the operation of the Dardenella Licensed Establishment for the 2015 have reached an impasse with the Smarkenka Group and have been terminated; That Committee of the Whole authorize the Chief Administrative Officer to re-issue the Request for Proposals for the lease of the Dardenella Licensed Establishments for the 2015 season based on the previous Request for Proposals; and, Further That Committee authorize the Chief Administrative Officer to include a minimum lease rate of $75,000 for the season as part of the Request for Proposals. 6. ADJOURNMENT

CENTER OF GRAVITY Prepared for: Town of Wasaga Beach Prepared by: Scott Emslie, Wet Ape Productions Date: May 14th, 2015

COG 2016 Overview www.centerofgravity.ca page 2

Table of Contents Background 3 Mandate 3 Venue 3 Proposed Dates 3 Proposed Event Details 3 Operations Director 3 Professional Sports 4 Entertainment 4 The Village 4 Admission 4 Demographics 5 Accommodations 5 Transportation 5 After Parties 5 Waste Management 5 Economic Impact 6 Media Campaign 6 Projected Completion Dates for Detailed Event Plans 6 About Wet Ape Productions 7 About Union Events 7 Letter of Reference 8


Background Center of Gravity is a multi-sport and entertainment festival, which began in Kelowna, BC, in 2008. Since it’s inauguration, Center of Gravity has become the largest sport and entertainment festival in BC. The festival brings in approximately 10,000 people/day and over $6,000,000 into the local community each year. On top of the economic impact the festival also strengthens sport development, culture, and community spirit. Center of Gravity is a unique experience that brings people together in a celebration of music, art, and sport. The festival is promoted and produced by Wet Ape Productions and Unions Events (refer to page 7 for company bios). Mandate To showcase international entertainment and sport in a fun interactive festival environment that can be enjoyed by all ages. Venues

• Festival Square – Main Stage • Nottawasaga River (beside Nancy Island) – Water Zone • Sections of Beach Area 1 and 2 (Town Owned) – Urban Zone and Beach Stage • A section of the main beach – Beach Volleyball • Note: site walks with the appropriate departments are still required to

determined the sites that will work best for the Town and Center of Gravity Proposed Dates Option 1: Aug 19 – 21, 2016 Option 2: Aug 12 – 14, 2016

Operations Director We will employ a local Operations Director to be available for all in town meetings with the Town of Wasaga, Parks Department, the Liquor Control Board, OPP, MNR, and other departments.

Proposed Event Details Setup Days 3 Day (Tues. – Thurs.) Teardown Days 1.5 Days (Mon. – Noon Tues.) Event Times 9am – 11pm�� (Fri./Sat./Sun.) Sports Times 9am – 8pm (Fri./Sat./Sun.) Beach Stage Times 1pm – 7pm (Sat./Sun.) Main Stage Times 5pm – 11pm (Fri./Sat./Sun.) Day Beverage Gardens 1 – 7pm, 4,000 persons (Fri./Sat./Sun.) Evening Beverage Gardens 6 – 11pm, 4,000 persons (Fri./Sat./Sun.) Max. Capacity 10,000 attendees + event staff Insurance Policy $5,000,000 liability


Professional Sports • Beach Volleyball • Wakeboarding • BMX • Skateboarding • Basketball (TBD) • Motocross (TBD) • Freestyle Mountain Biking (TBD) • Note: we may include a recreational volleyball tournament if space permits

Entertainment

• Main Stage: o Concerts from 5pm – 11pm each evening (Friday, Saturday, and Sunday) o The Main Stage will be located at Festival Square o Headliners will take stage at approximately 9:30pm and finish at 11pm o Past performers include Calvin Harris, Tiesto, J Cole, Lupe Fiasco,

Kaskade, Chromeo, Adventure Club, Capital Cities, Nero, Tegan and Sara, Lights, Miami Horror, Matt & Kim, Morgan Page, Knife Party, Dragonette, Zeds Dead, Naughty by Nature, and Steve Aoki

• Beach Stage: o DJ’s performing from 1pm – 7pm on Saturday and Sunday o Past performers include Chris Lake, Borgeous, Clockwork, Lucky Date,

Torro Torro, Botnek, Bad Boy Bill, and many more o The location of this stage requires further discussion with the Parks

Department and MNR The Village

• Retail Vendors • Food Vendors • Interactive Games • Exhibitors Area • Note: local businesses will be given priority for vendor positions

Admission

• The event sites will be ticketed with the exception of the majority of the beach volleyball courts on the main beach

• There will be a Sport, GA, and VIP pass • The Sport pass includes all of sports and the Village • The GA and VIP passes include all sports, the Village, and Beach and Main Stage • There will be 3 day and single day passes


Demographics Gender 48% female, 52% male Age 25% under 18, 66% 18 – 29, and 9% over 29 Estimated Attendance 8,000 – 10,000 guests per day Website 307,000 page views/month (peak time) Youtube / Vimeo 250,000 views for promotional videos Facebook 28,000 fans (facebook.com/centerofgravity) Instagram 4,000 followers (instagram.com/cogfestival/) Twitter 6,000 followers (twitter.com/COGFestival) Accommodations The Operations Director will be in charge of coordinating the accommodation needs of the athletes, artists, and festival guests. We will set up blocks of rooms at hotels in Wasaga Beach, Barrie, Collingwood, and Blue Mountain for the general festival crowd. Sunshine Park looks like it is a great option for guests interested in camping in Wasaga Beach and we will look into setting up a shuttle at peaks times to and from the beach and campsite. Transportation We plan to setup shuttles (i.e. school buses) during peak times from the venue to key locations. We are looking into a shuttle running to and from the campsite and another to and from the out of town locations (i.e. Barrie, Collingwood, and Blue Mountain). The out of town shuttle will depend on the demand (we will have this as an option during the ticket purchase process). We expect the peak times to be noon, 6pm, and 11pm. After Parties We plan to have at least 2 official after parties for the festival crowd after we flush Festival Square at 11pm. We plan to have at least one after party in Wasaga Beach and another after party out of town in Collingwood or Blue Mountain. Shuttles will be ready outside the Festival Square to take guests to the after parties that are not within walking distance. Waste Management We will have crews cleaning up all garbage and recycling throughout the event sites and around our perimeter on all event days and after completion of the event. We’ll be out of the park will have everything back to it’s original state by noon on Tuesday.


Economic Impact There will be an estimated 5,000 – 7,000 out of town spectators per day during the 3-day festival. As well there will be over 350 professional athletes, coaches, and talent. They will all be staying to local hotels/camping/rental units and spending money at local retail shops, restaurants, and bars. An estimated $3,000,000 will be spent in Wasaga Beach on the 2016 Center of Gravity weekend. This is a conservative estimate and does not include the money that will be spent on production, promotions, and operation by our organization. The overall economic impact of the Town of Wasaga Beach and the surrounding areas will be approximately $4,000,000. On top of the economic impact the festival also promotes the development of sport, art, and culture. Media Campaign Wasaga Beach will gain national visibility through the media exposure from the festival including TV, radio, magazine, website, online videos, social media, newsprint, PR, and street promotions. The COG 2016 media campaign will be valued at over $400,000 with our media partners, sponsor campaigns, and promotional partners. Projected Completion Dates for Detailed Event Plans December 2015:

• Management Team • Overall Site Map

February 2016:

• Security Plan • Emergency Access Plan • Risk Assessment Plan • Communications Plan • Accommodations Program • Transportation Plan

May 2016:

• Sanitation Plan • Food Services Plan • Responsible Alcohol Service Plan • Production Schedule • Schedule of Events • Logistical Maps (for each site)


About Wet Ape Productions Wet Ape was established in 2007 for the purpose of creating and developing unique sport, music, and cultural events across Western Canada. Best known for founding the outdoor festivals Center of Gravity, the Keloha Music and Arts Festival, and Harvest Haus, Wet Ape creates people’s favourite moments by producing innovative event experiences. The company has branched out to producing large-scale arena shows with some of the biggest names in electronic dance music, including Deadmau5, Calvin Harris, Hardwell, Skrillex, and Tiesto. Wet Ape is also a part owner of The Imperial, a mid-sized special events venue in Vancouver, BC. Visit www.wetape.com for more information.

About Union Events Founded in 2000, Union Events (The Union Ltd) has rapidly grown to become one of Canada’s leaders in live entertainment, producing over 700 shows annually across North America. Innovative, nimble, and fiercely independent, Union Events develop relations with fans and artist alike, ensuring a 'fan first' experience at each show. These core principles have secured long-term relationships with artists, venues, and fans, forming lasting bonds across every genre. With offices in Toronto, Vancouver, Calgary, and Edmonton, Union Events offers the most comprehensive regional expertise within the Canadian concert industry. Under its UnionElectronic brand, Union Events has been an integral part of EDM’s growth in Canada over the past decade, producing the best of established and emerging talent in electronic dance music (EDM). Union Events is also Canada's leading festival producer, featuring signature event brands SONiC Boom (Edmonton), X-Fest (Calgary), Chasing Summer (Calgary), and Riot Fest (Toronto). Union Events is also the exclusive talent buyer for Concorde Entertainment Group, which owns and operates numerous venues in Calgary, including Flames Central and the Republik. Visit www.unionevents.com for more information.


Letter of Reference

STAFF REPORT

TO: Committee of the Whole FROM: George Vadeboncoeur, CAO SUBJECT: Leasing of the Dardenella Licensed Establishment DATE: May 21, 2015 RECOMMENDATION That Committee of the Whole receive the Chief Administrative Officer’s report advising that negotiations for the operation of the Dardenella Licensed Establishment for the 2015 have reached an impasse with the Smardenka Group and have been terminated; That Committee of the Whole authorize the Chief Administrative Officer to re-issue the Request for Proposals for the lease of the Dardenella Licensed Establishment for the 2015 season based on the previous Request for Proposals; Further, that Committee authorize the Chief Administrative Officer to include a minimum lease rate of $75,000 for the season as part of the Request for Proposals. BACKGROUND Committee authorized the issuance of a Request for Proposals (RFP) for the operation of the three beachfront licensed establishments – Dardenella, Bananas and Copa Cabana in late April. On Monday May 11th Council awarded the RFP for the operation of Bananas and the Copa Cabana to Enzo Grossi, subject to negotiating a lease and improving the lease rate. Committee also awarded the RFP for the Dardenella to the Smardenka Group under the same terms. Negotiations on the lease rates for Bananas and the Copa Cabana were successfully concluded on May 11th with both the Town and Mr. Grossi agreeing on lease rates satisfactory to both parties. Negotiations for the Dardenella started on May 11th and concluded on May 13th. Unfortunately, the undersigned and representatives of the Smardenka Group were unable to come to an agreement on an appropriate lease rate. As a result, it was agreed by both parties that negotiations would conclude without an agreement. DISCUSSION There still appears to be interest in leasing the Dardenella for the 2015 season. The writer and other staff have been approached informally by a few interested parties. If Committee is interested in leasing the Dardenella, it has several options as follows:

1. Issue a new RFP using essentially the same criteria as the previously version. The return time would be extended to two weeks after the date of issuance.

2. Place an advertisement in the local papers and on the Town’s web site advertising the availability of the Dardenella for the 2015 season on an “as is where is” basis with a pre-specified lease rate outlined in the advertisement.

3. Approach Mr. Grossi to see if he would be interested in operating the Dardenella in addition to Bananas and the Copa Cabana.

4. Approach the others that have informally expressed interest in the operation of the Dardenella and ask them to submit a proposal.

In looking at the four options, the writer is recommending that Committee proceed with Option 1. It is the fairest of the options and ensures that each proposal meets basic criteria. Any of the interested parties would have the option of submitting a proposal for consideration. During the last RFP process, one of the comments that was received was that the Town should have specified a minimum lease rate. The Town left it open the last time and the proposed lease rates were surprisingly low. Since the RFP closed, the Town has received informal proposals to the lease the Dardenella, with one individual proposing $50,000 for the season. The writer considered the options of either including or not including a minimum lease rate and is recommending that a minimum lease rate be included. The main reason is that prospective proponents will then have an idea of what Council is seeking in terms of rent and can make a business decision if they wish to submit a proposal to operate the Dardenella on a “as is where is basis”. A tour would be organized so that proponents can go through the establishment prior to submitting their proposal. It is felt that $75,000 is reasonable starting point. It is proposed that the same Evaluation Team be used consisting of the CAO, Special Projects and Communications Officer, and the Manager of Parks and Facilities using the same process as the earlier RFP process. The RFP would remain essentially the same, taking into account some of the lessons learned from the earlier process. CONCLUSION Staff are hopeful, given the interest already shown, that by providing two weeks to submit a response to the RFP the Town will received some quality proposals. It would be nice if the Dardenella was open for the 2015 season to complement the other three licensed establishments along the Beach Area One strip. The goal would be to have the Dardenella open by mid to the later part of June. Respectively Submitted, George Vadeboncoeur Chief Administrative Officer

Form: WB-SR2010

STAFF REPORT TO: Committee of the Whole

FROM: George Vadeboncoeur, CAO SUBJECT: Beachfront Food and Retail Leases and Lease Template DATE: May 21, 2015 RECOMMENDATION That Committee of the Whole receive the report on current Beachfront Food and Retail Leases; Further that Committee of the Whole recommends that Council approve the template commercial lease for use by the Town for the 2015 season, subject to minor amendments that may be authorized by the Chief Administrative Officer during the negotiations of the leases; Further that Committee of the Whole recommends that Council authorize the Mayor and Clerk to sign the negotiated leases as recommended by the Chief Administrative Officer. BACKGROUND On May 15th the purchase of seven properties along Beach Drive including eight buildings, 28 rental units, including three bars closed. The previous owners were actively trying to lease the food and retail units at Beachfront and at closing had 13 signed leases and one tentative lease. The current leases were assigned to Town as part of the transaction. The Town has received lots of inquiries about leasing the remaining 11 locations and is close to signing a lease with a well-known coffee shop. This would leave 10 locations that the Town is going to actively lease. It has placed an advertisement in the local newspaper and is offering a 2.5% commission of the lease rate to real estate professionals that suggest tenants that the Town is able to lease to. In the coming days the storefronts will be cleaned up and signs will go up indicating the locations that are available for lease. In conversation with some of the current tenants they have indicated that they are pleased that the Town has purchased the properties at beachfront. They have also indicated that they would like to see their rent reduced. Staff have advised the tenants that their current leases stand for this season and in the fall terms and conditions will be reviewed. No commitments have been made past this season. Over the last five years the Beachfront properties have been controlled or owned by companies located outside of Town. Even though a property management firm was deployed to address day to day matters, some of the tenants have indicated in the short

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time the Town has been involved that it was quite challenging to have issues addressed. It appears that there was a reluctance to spend money on maintenance items unless absolutely required. In response, and as part of the assignment of the leases to the Town, the previous owner’s representative advised the writer that under the current leases that the properties were leased on “as is, where is” basis and the responsibility to address maintenance items within the stores rests with the tenants. Even though the leases put the onus on the tenants, the tenants still approached the owners to have work done. The previous owners reviewed each request and dealt with matters that they felt was outside of the tenant’s control. Most items that were requested pertained to issues within a store were put back to the tenant. It is thought that now that the Town owns the properties the tenants may try to press their demands to staff and failing getting satisfaction may approach individual members of Council. To address this possibility, staff felt it important to explain what it is in the current leases and review the template commercial lease the Town will use going forward. If members of Council are approached, it is recommended that they refer the inquiries or requests to staff, to be dealt with accordingly. DISCUSSION Attached for the information of Committee is a sample current lease used for a food vendor and one that is used for a retail store. They are very similar. Details about the individual stores have been deleted to protect the confidentially of the vendors. These are commercial leases and they are different from residential leases. As mentioned repairs are the responsibility of the tenant (paragraph 3) and they agree to take the premises “as is, where is” (paragraph 16). If staff receive requests to address matters within the buildings, it will be addressing them on an individual basis and will be citing these clauses if required and encourages members of Council do to likewise. The Town’s new template commercial lease is very similar to the existing lease. As the Town Solicitor indicated, the current lease is a simple commercial lease for a one year (season) term that works. He has made some minor changes to tighten up the language in certain areas, but it is essentially the same lease. It is proposed that Committee recommend to Council that this standard template be approved for use for the remaining 11 locations, subject to minor changes that the may be negotiated by the writer during the negotiation process. Once a lease has been negotiated it will be presented to the Mayor and Clerk for signature. It is recommended that Council authorize them to sign the lease on behalf of the Town provided it is generally in keeping with the standard template and approved lease rates. Respectively Submitted, George Vadeboncoeur Chief Administrative Officer Enclosure