Association of Municipalities of OntarioAugust 18, 2009

Association of Municipalities of OntarioAugust 18, 2009

The case for municipal public The case for municipal public private partnershipsprivate partnerships

About ForumAbout Forum• Richard A. Abboud, President & Founder• Privately held• $500 million built/bought and sold since 2002• 4 P3’s closed - $300 million• 2 P3’s in negotiation - $350 million total• Real estate portfolio of net leased single tenant primarily office

buildings.

Forum’s P3 Track RecordForum’s P3 Track Record• 6 P3s launched and selected to date• Total commitments $300 million• Ontario Power Generation, Design/Build/Lease/Operate - $12 M• City of Ottawa, Design/Build/Finance/Operate/Transfer - $22M• City of Hamilton, Co-Investment Program - $40M Target• City of Ottawa, Design/Build/Operate/Finance/Transfer, Sale

leaseback, Mixed Use Development - $225M• Highway Service Centres - $300 million • Centre for Addiction and Mental Health - $50 million

Key Forum Team Participants/Suppliers

Key Forum Team Participants/Suppliers

Kilmer Van Nostrand Capital PartnerJohnson Controls/BLJC OperationsAecon Buildings Design BuilderLemay + Doyle Architects Architect YMCA/YWCA of Ottawa-Carleton Land swap/Options/

Services PartnershipCommunishare 10 Local not for profits

Public Sector BenefitsPublic Sector Benefits

• Execution accountability transfer• Risk transfer• Schedule certainty • Cost certainty• Private sector innovation• Capital/Operating/Lifecycle Cost optimization• Total investment of $225MM• Economic spin-off of $75.2 MM • Annual realty taxes $3.2MM• Development and Permit fees of $12.1MM

Risk TransferRisk Transfer• Driving Principle – acceptance of controllable risk• Completion risk (force majeure carve out)• Construction cost risk • Design risk• Unforeseen soils risk (except hazmat and antiquities)• Some operating risk

• Mixed Use Development Schedule Risk

Public Private Partnerships

A YMCA Perspective

YMCA of Hamilton / Burlington / Brantford

3 Examples of Municipal / YMCA Partnerships• Township of Flamborough• City of Hamilton• City of Brantford

Other YMCA / Municipal PartnershipsFactors Contributing to Successful Partnerships

Township of Flamborough

• In 1997, the community desired an indoor pool• Town of Waterdown had a population under 9,000, and

Township population was 30,000• Concerns about facility design and operations expertise,

capital construction costs and ongoing operating costs• Mayor had a vision beyond an “indoor pool”• Centre of the Community that would focus on children

and families, go beyond basic recreation and include

Vision – Centre of the Community

Programs and services would include• Variety of aquatic and wellness programs• Day camps• Youth drop in programs• Youth leadership development• Licensed child care• Adult fitness

Project Partners

YMCA and Township were key partnersAdditional benefits of project• Proximity to elementary and secondary schools• Proximity to green space• Future urban development in area• Centre of the community for Flamborough residents

Project Overview

Components of a new community YMCA• 45,000 sq ft on 4.7 acres of land• Adjacent to elementary and secondary schools• 8,000 sq ft aquatic centre with 2 pools & whirlpool• 3 “half gyms” in L shape (6,000 sq ft)• 8,000 sq ft of Health and Wellness space• 5 change rooms including Special Needs / Family• Licensed Child Care Centre

Some Benefits to the Township

YMCA expertise in design, build and operate• Staff and volunteer (Board & Committee) expertise

National programs in aquatics, fitness, wellness, leadershipMajor community capital fund raising campaign (local &

regional) resulting in lower cost to TownshipState of the art facility open 365 days each yearFacility that is open to all, regardless of ability to pay a feeOngoing annual campaign to provide financial assistanceNo ongoing operational costs and no ongoing capital costs

Flamborough YMCA

Project Costing

Facility opened 2001Project costs, all in, was $12M• Township provided $4M and land• Community Campaign (local and regional) $4M• YMCA contribution $4M

Hamilton Mountain YMCA

City of Hamilton’s population exceeds 500,000Hamilton Mountain (south part of city) is major growth areaUrgent need for a recreation centrePlans for a new Police Station and LibraryIn 2002, the newly amalgamated City experienced the

benefits of Municipal / YMCA partnershipsSuggestion to build the three facilities together and

experience possible synergies

Project Overview - Final Partners

Over a 2 year period, the final project includes• Mountain Police Station• 25,000 sq ft Library• 53,000 sq ft YMCA• Hamilton Health Sciences • Skateboard Park• City of Hamilton - 12 Ball Diamonds

Library / Police / Hospital / City Partnership

Benefits of community policing – community interactionResidents benefit from “one stop” community centreYMCA / Library / Skate park benefit from shared clientele Wider range of programs and services to all participantsHospital expertise and leadership in preventative medicine• Bone & joint, cardiac, cancer wellness, youth obesityEfficient capital construction and operations

City of Brantford Project – Planning Stages

Project Partners• City of Brantford• YMCA• Laurier University• Nipissing University• Mohawk College• First Nations• Private Developers

Project Vision

To assist with downtown revitalization, construct a new YMCA / Post Secondary recreation complex• YMCA facilities• University varsity athletic facilities• Shared instructional facilities – YMCA & Post

Secondary Institutions• University residences, support facilities• Private developer partnerships for commercial

investments

Why Consider Partnerships?

Currently over 40 YMCA / Municipal collaborations in Canada benefiting our communities, regardless of City size including

• Vancouver, Edmonton, Calgary, Montreal, Toronto, Hamilton, Niagara Falls, Innisfil Township, Wasaga Beach, Cobourg, Quinte West, Goderich

Every collaboration has been a success

Monetary Benefits of Partnerships

Philanthropic Revenues • Communities support effective & efficient partnershipsAccess to Provincial Funding• $2M from Province of Ontario for Hamilton Mountain• Provincial Recreation Infrastructure fundingAccess to Federal Government Funding• Recreation Infrastructure funding

Critical Success Factors

Project Champions• Mayor Ted McMeekin in Flamborough• Community Leaders – Mel Hawkrigg (McMaster)• YMCA – John Mayberry (Dofasco) Shared Vision and Values among all partners• Time to develop a common vision Big Picture Thinking• Keep your eye on the VisionTrust

YMCA Learnings

50 years ago, all new YMCAs were built once money from community campaign was in the bank

30 years ago, new YMCAs built with community campaigns, operational funding and financing

Past 10 years, new YMCAs built in partnership with Cities, community groups, schools, libraries and other organizations

Next 10 years, in building new facilities, the YMCA will need to consider working with all of the above partners and the private sector

Thank You

Jim Commerford

(905) 317-4919Jim_Commerford@ymca.ca

President & CEOYMCA of Hamilton / Burlington / Brantford