Tag: northlands

Northlands’ Vision 2020 is not going to happen

The City of Edmonton released its analysis of Northlands’ Vision 2020 proposal today. Introducing the report, City Manager Linda Cochrane said, “we acknowledge that Vision 2020 is an option for what could be done with the 160 acres.” It’s clear from reading the report however that the City doesn’t support the plan.

“Northlands has proposed an ambitious plan and there are elements that are worthy of future exploration,” Mayor Iveson said. But there’s a but. “Council’s job must be to make decisions that are in the best interest of the city, not just one organization.” Suggesting that there’s more work to be done, he said “it’s critical that we aren’t rushed and that we make the right decision for our city.”

Northlands Park

Vision 2020 proposes a transformation of both Northlands as an organization and the 160 acres of land that it leases from the City and operates, which includes Rexall Place, the Edmonton EXPO Centre, Northlands Park Racetrack and Casino, and all of the parking. The plan would see Rexall Place repurposed as a recreation facility, a retrofit for Hall D in the EXPO Centre, a new agriculture strategy, the end of horse racing and a redevelopment of Northlands Park into an urban festival site, and a redevelopment plan consisting of commercial, retail, and residential uses. The key to making the plan work is debt forgiveness on the $48 million outstanding debt that Northlands owes on the Edmonton EXPO Centre, to say nothing of the capital expenditures required to build everything outlined in the plan.

Debt Forgiveness

On the debt forgiveness, Mayor Iveson was clear that is not likely to happen. “I don’t believe Edmontonians would support forgiving a debt this large.” Perhaps more importantly, there’s no upside to the City by forgiving the debt.

Northlands owes $47.4 million as of June 30, 2016 and the City has a corresponding debt obligation with the Alberta Capital Finance Authority for the same amount. Every year Northlands pays the City $4.05 million which the City in turn pays to ACFA, so there’s zero impact to the City. If the loan were forgiven, the City would have to find a way to pay the $4.05 million each year for the loan from ACFA, which expires in 2034 and does not have an option for early termination. “Funding this loan from the tax levy would require a 0.3% tax levy increase in 2017 at a total cost of $72.8 million for the remaining duration of the loan.”

Northlands is projecting negative cash flows of $7.7 million per year which means it may be at risk of defaulting on its loan payments as early as next year. If that were to happen, the City would have the ability to terminate the lease and take back possession of the EXPO Centre which provides the City with “a tangible capital asset that will limit the impact of a default on the City’s financial position.” In theory the City could use income generated from the EXPO Centre to fund the ACFA loan.

“The business case for the expansion of the Expo Centre was overly ambitious in retrospect,” Mayor Iveson said today. But we are where we are, there’s no going back now.

Debt forgiveness or not, the City is on the hook for the money. But by allowing Northlands to default on its loan, the City gains complete control of the Northlands site and EXPO Centre as well.

Repurposing Rexall Place

“There is no immediate demand for six new ice sheets in Edmonton,” the report states, “however opportunity does exist to leverage the Rexall repurpose concept in the context of closing or repurposing four single-sheet ice facilities in north and northeast Edmonton.” The Mayor sounded somewhat optimistic about the idea, and mentioned that he had even spoken with Hockey Canada recently to explore the idea of a hockey academy in the facility. Northlands estimates the cost of repurposing the facility at $85 million. While the City says it “is technically feasible” they disagree on the cost, suggesting “an estimate of $102 million within -10% to +20% would be more appropriate.”

Farewell Rexall Place
Farewell Rexall Place, photo by Jeff Wallace

The wrinkle with this part of the plan is that the City is restricted by the Master Agreement with the Edmonton Arena Corporation (EAC) on the kind of investments it can make to Rexall Place. “The City cannot not make additional capital expenditures that exceed those required to maintain Rexall Place in a safe condition and in compliance with applicable laws.” Furthermore, as soon as Rogers Place opens the City has to stop providing any financial support to Rexall Place, directly or indirectly, except as required to comply with the law and maintain public safety.

The biggest issue however is that “the City must not financially support or advocate in favour of any plan to rebuild or renovate Rexall Place, unless it is to convert the facility to something other than a sports or entertainment facility.” If the plan to repurpose Rexall Place is going to go ahead, the EAC would need to formally waive that restriction.

Hall D

The Hall D retrofit would increase seating capacity to 5,000 but “appears difficult to justify based on the anticipated market demand” for events it might serve. Vision 2020 assumes the facility could attract 50 concerts and events annually, but the consultants research indicates that “a maximum of 20 to 24 concerts annually appear to be the upper boundary for this type of building.” Last year, Hall D hosted 6 concerts.

Electrical and mechanical upgrades as well as a roof replacement would all be required for Hall D in the next 2-4 years. “Without a long term tenant (e.g. minor sports franchise), enhancements to Hall D cannot be justified in the immediate term.” Again the report suggests a higher cost estimate than Northlands did, at “$38.7 million within -10% to +30%.”

Urban Festival site

Recognizing that the site “may provide a unique opportunity to the region” the report raises major concerns about the feasibility of the idea. Industry data suggests there may be market demand in the long-term, but “it is unclear if there is sufficient market demand to achieve the necessary revenue to make the site profitable.” Interviews conducted with local festival organizers suggest “there is not significant interest in relocating to the Northlands site at this time.”

K-Days

In general, the report highlights a lack of detail supporting the idea and says that further investigation would be required. “The updated cost estimate provided by Northlands of $83.6 million cannot be verified as accurate with any certainty,” the report says.

Residential Opportunities

Vision 2020 proposes 3,195 residential units in a mix of concrete high-rise buildings, wood frame low/mid-rise buildings, and townhomes. It anticipates absorption of 540 units per year, a figure the report says is unrealistic. The consultants estimated that Northlands “could reasonably capture at most 15-20% of apartment demand in the city’s mature neighbourhoods” which would mean demand for, “at most, 100-150 multi-family apartment units per year on average from 2015 to 2035.” There does appear to be “market demand for 400 beds to serve Concordia University” but the report notes that in addition to a lack of funding, “the economics of a concrete high-rise for student housing that assumes market rates for land is difficult to achieve.”

The Future of Northlands

When Vision 2020 was released earlier this year, Northlands suggested it would cost $165 million. The City puts the estimated cost at more than $230 million. Northlands deserves some credit for thinking big and putting something on the table, but Vision 2020 just isn’t realistic and will not happen. The future of Northlands will be something different.

Asked if the decision to build the new arena is the root of all of Northlands’ problems, the mayor said that was an oversimplification of a complex situation. “This has hastened a conversation that I think would have happened anyway,” he said.

mayor don iveson

Mayor Iveson indicated he will propose a merger of the EXPO Centre and Shaw Conference Centre next week when Council discusses the report. “This report provides a wake up call that the time for integration is now,” he said. “I believe that if we look at bringing the two conference centres together under a shared events authority, we will get better tourism and economic development results for our city.” He wouldn’t speculate on whether Northlands, EEDC, or a new organization should become that shared events authority.

This is an idea that is long overdue. It regularly comes up in discussions about the various facilities and organizations, and came up again earlier this month when Chris LaBossiere suggested a merger could be a way forward for Northlands. To his credit, Northlands CEO Tim Reid is open to the idea. “One of the things that has never made sense to me in our city is why we have two very large conference, convention and trade facilities that are run under different entities,” he told Metro.

Council will discuss the report at a Special City Council Meeting on August 31. You can dig into the full analysis here.

Summer fun at K-Days 2016

No summer in Edmonton is complete without a trip to K-Days to eat greasy food, take in the sights and sounds of the midway, enjoy some entertainment, and to stay up late for the fireworks. It’s something Sharon and I do every year, and this year we were fortunate to have our gate admission, food, and tickets to the TD Comfort Zone covered by Northlands. We visited on Saturday, and couldn’t have asked for better weather.

K-Days
Swing of the Century on the midway

This being the year of the Pokémon Go craze, the game was everywhere. From the Pikachu and other plush characters being won at the midway games to the five PokéStops on site, good luck ignoring Pokémon if you attend K-Days this year.

Food

It turns out the first new food item we ate this year was the best! The Meatball Sub on a Stick from Pizza Casa actually won 1st Place in the New Food Contest and we can see why. It took a few minutes to make, but it had great flavor, wasn’t messy to eat, and actually didn’t feel all that unhealthy! I really liked that the meatballs were wrapped in dough, rather that in a bun that was awkardly skewered which is what I had imagined.

K-Days
Meatball Sub on a Stick

The Teriyaki Chicken Perogies from International Perogies were on our list of new food items to try, but once we got there we were swayed by the Poutine Perogies. The $12 price seemed a bit steep, but the portion size was actually pretty generous. Have a bottle of water on hand when you eat this dish, because it was a bit salty, but it was very tasty.

K-Days
Poutine Perogies

There are two things I always eat at K-Days: a corn dog and mini donuts. This year I tried the Bacon BBQ Corn Dog, which was pretty good and not much different than a plain corn dog with BBQ dipping sauce actually. I also tried the new Big Pickle Dog from Chicky’s Chicken. I really wanted to like it, but it was awful. The pickle was way too big and much too difficult to bite into. And in trying to bite into it, hot pickle juice flew everywhere. Worse, the hot dog itself was soggy and slid right out of the centre of the pickle. Just avoid it.

K-Days
Big Pickle Dog

Also on the avoid list was the Mac N’ Cheese Stuffed Burger from Gourmet Hand Made Stuffed Burgers. Aside from the highly questionable food safety practices of the vendor (even for K-Days) the dish just lacked flavor. Like the pickle dog, two things I love combined should have been amazing, but instead it was pretty disappointing.

Games & Attractions

I wouldn’t say that we’re big midway gamers, but Sharon does love Bowler Roller (the 25 cent version). Though we spent a few dollars there, she actually won on her very first roll! Aside from Pokémon characters, emoji seemed to be the other hot prize this year. She won two of them.

K-Days
Sharon won an emoji

There was also fun to be had inside! We spent some time inside at TechLife where lots of people were playing video and board games. I’m tempted to go back on the weekend for the Canadian Drone Racing Championships! One of the more interactive features was the Jenga Giant games, which Felicia and Sharon played. They attracted a small crowd at one point because of the height they got to before it call came crashing down.

K-Days
Jenga!

Back outside we visited the K-Days Pow Wow, produced in partnership with the Alexis Nakota Sioux Nation. The pavilion features a different theme each day of the festival and “will host members from First Nation communities within Treaty Six and across Canada.” Every day between 3:30pm and 8:00pm you can experience a variety of traditional songs and dances.

K-Days
Pow Wow Grand Entry

If I’m being honest it felt a little like it was tacked on, but to be fair we didn’t spend a lot of time at the Pow Wow. I do think it’s important to recognize that K-Days takes place on Treaty Six land and I hope this aspect of the festival can be built upon in future years.

Entertainment

In past years we have enjoyed the Super Dogs show inside the Expo Centre. This year, we watched the Peking Acrobats then went outside to take in The Canine Stars.

K-Days
The Canine Stars

I mean, who doesn’t love dogs doing amazing stunts? They caught frisbees, jumped over incredibly high hurdles, and dove into a giant pool, splashing everyone around it. It’s the kind of event the crowd really gets into!

K-Days
The Canine Stars

Entertainment, and specifically music, has been a focus for K-Days this year with great line-ups at both the North Stage and the South Stage. Shawn Hook, Rachel Platten, and Victoria Duffield are some of the artists you can hear at the North Stage, while major names like X Ambassadors, Moist, Tom Cochrane, Simple Plan, and Finger Eleven can be heard at the South Stage. On Saturday when we attended, I was thrilled that Matthew Good was performing!

For the first time, the South Stage was moved from the concrete jungle alongside the rides to the track infield at Northlands Park. With a capacity of more than 12,000, the fully-licensed, grassy infield gave the stage much more of a music festival vibe. Just to the left of the stage was the TD Comfort Zone, a VIP area “designed for those superfans who truly want a night to remember.” It’s a large, covered, raised structure with appetizers, a cash bar, and a great view of both the stage and the crowds. Compared to the 5,000 or so people out in the infield, the VIP area was pretty empty, and we think most in attendance were invited by Northlands. Still, it did make for a comfortable way to take in the show if beach balls and mosh pits aren’t your thing.

K-Days
Matthew Good performs at the South Stage

The other great thing about the new South Stage is that it offers an amazing view of the fireworks! We’ve always made our way over toward the casino for fireworks in the past, but this year we were able to get closer and could see the lights of the midway in the background. I definitely recommend checking it out, even if you aren’t particularly interested in the musical act that night.

Attendance

So far K-Days has had pretty good weather and with strong pre-sales thanks to the music line-up (I’ve heard twice as many pre-sales as last year), I think this could be an incredibly strong year for the festival. K-Days attendance peaked at 810,503 back in 2005. The festival was re-branded Capital EX the following year, and attendance plummeted to 688,369.

k-days attendance

What’s most interesting is that the average attendance for the seven Capital EX years was 731,992. That’s only slightly below the average of 753,933 for the preceding seven years. But the branding damage was done, and the switch back to K-Days in 2013 was widely celebrated.

K-Days

So that was our experience this year! There’s a lot more to K-Days than we were able to take in, like rides, but we had lots of fun. Thanks to Northlands for the opportunity. You’ve got until Sunday to visit K-Days for yourself! You can see more photos from our 2016 experience here. You can read about our 2014 experience here. Be sure to check out Linda & Mike’s experience this year too!

The Edmonton Oilers bid farewell to Rexall Place

Tonight the Edmonton Oilers played their final game in the building they have called home since 1974. Though its future remains uncertain, Rexall Place has been an important part of Edmonton for more than 40 years.

Farewell Rexall Place

The subject of its own, drawn out arena debate, Rexall Place was eventually built in the early 1970s. It opened on November 10, 1974 and the Oilers played their first game in the building that night. They won that game over the Cleveland Crusaders by a score of 4-1. For more on the history of Rexall Place, check out this great deep dive from David Staples.

Farewell Rexall Place

In addition to tonight’s celebrations at the building itself, the Oilers and the City held a rally in Churchill Square today. All former Oilers were invited to attend, and more than 100 did. The event was hosted by City Manager Linda Cochrane and was a nice opportunity for fans to join with the Oilers to say thanks to Rexall Place.

Farewell Rexall Place

Mayor Don Iveson, Jason Strudwick, Ryan Smyth, and Mark Messier all shared a few memories and tributes to Rexall Place.

Mark Messier

I thought it was very fitting that the crowd did the wave today at the rally given that Rexall Place is the venue in which the wave was perfected.

The Oilers have been preparing for this all season long, of course. Here’s what they had to say about leaving the building earlier today:

“Hours before opening faceoff, media members and arena workers flooded the halls, snapping photos of the old barn. The current players laughed at the fond memories of their home building, while lamenting missed opportunities in recent seasons. The alumni shared stories with the media and with each other, some serious and others hilarious tellings of locker room happenings. The mood at Rexall Place’s final pre-game morning was more joyful and reminiscent than sad, but it is sure to be an emotional evening of goodbyes for all those with ties to a historic venue.”

You can see the pre-game, in-game, and post-game videos and other media here.

Farewell Rexall Place

Northlands itself also had some positive things to say about the building today:

“On behalf of our board, staff and volunteers we want to thank the Edmonton Oilers for an amazing partnership,” said Tim Reid, Northlands President and CEO.

They also pointed out that while the Oilers won’t be playing at Rexall Place anymore, there are still other events on the schedule including the 2017 Ford World Men’s Curling Championships next April which is the final qualifying event for the 2018 Winter Olympics in South Korea. But for pro hockey at least, tonight was the end.

Oilers Superfan

For the current team, next season and the brand new Rogers Place can’t come soon enough. It hasn’t been a great season, but at least they ended on a high note tonight with a 6-2 victory over the Vancouver Canucks.

You can see more photos from the lunch time rally here.

Northlands Arena Strategy Committee Final Report Released

Today the Northlands Arena Strategy Committee released its final report which includes recommendations on the future of Rexall Place for the consideration of the Northlands Board of Directors. This brings our six month process to an end and I think provides the Board with some actionable, useful insight and analysis regarding what to do with Rexall Place. This is not the end of the road, but I think it is a major step toward resolving this important challenge for our city.

Rexall Place

You can download the full report in PDF here (warning: it’s large). You can also download the more reasonably sized report highlights in PDF here.

We are making two recommendations. Our primary recommendation is as follows:

“The NASC has highlighted that the current scenario surrounding a conflict oriented and competitive model specific to major sports and entertainment venues within the City of Edmonton has stalled progress; there is a need for a new approach. It is recommended that the Northlands Board of Directors consider a collaborative solution for the Northlands arena (Rexall Place) and define this possibility as two party or three party potential outcomes.”

Basically, if there’s a way to find a collaborative model that works, do so. The two party outcome would be a way for Northlands and the Oilers to work together to use Rexall Place in a way that is complementary to Rogers Place. The three party outcome would be an agreement between Northlands, the City of Edmonton, and the Oilers to find an alternative use for the building.

Fortunately, I think significant progress has been made on building the relationships necessary for a collaborative model to work. Here’s what Committee Chair Andrew Ross wrote in his summary (which you’ll find in the report):

“The NASC worked collaboratively and while we did not always agree we respectfully debated to find the right solutions; this final report has achieved consensus of the group. An unintended outcome developed throughout this process is the significant progress made to repair previously strained relationships between members of the Northlands Board of Directors and key stakeholders at the City of Edmonton and the Oilers Entertainment Group (OEG). Special thanks goes to Tim Reid, President and Chief Executive Officer of Northlands; Bob Nicholson, Vice Chairman of the OEG; Simon Farbrother, City Manager; and Mayor Don Iveson who have been willing to take a forward looking approach in the best interest of our city and the sustainability of the Northlands organization.”

If that collaborative approach does not work out, then we feel that the worst thing we could do is nothing. And so our secondary recommendation is vigorous redevelopment:

“If a redevelopment strategy is implemented the Northlands arena (Rexall Place) should be demolished and the land repurposed in a way that would complement the surrounding neighbourhood, act as a catalyst to stimulate development growth, and support the sustainability of Northlands.”

Though we did look at other models, it became clear to us that most of them are not desirable. Nobody wins in a competitive model, going dark would be highly detrimental to the community, and as mentioned, kicking the can down the road is possibly the worst decision that could be made.

The next step now is for the Northlands Board to decide which direction they want to go. I expect they’ll need some time to digest the report and its findings, and with the AGM and election coming up at the end of the month, it’ll likely be the new board that deals with the decision. Northlands has already been undergoing some strategic review and planning and I expect that work to continue into the fall.

I have really enjoyed my time on the Committee. The timelime we were working with was aggressive, but I think that brought an appropriate level of urgency to the process. I certainly learned a lot over the last six months, and I hope that I have made a meaningful contribution. I have quite a bit to say about Rexall Place and this whole challenge which I will share in the weeks ahead. For now, check out the report and let me know what you think!

What will happen to Rexall Place?

With a new downtown arena, what will happen to Rexall Place?

It’s a question that has been asked many times over the last few years, and one which remains unanswered. But that could finally change next spring.

On Halloween, Northlands publicly announced the formation of its Arena Strategy Committee. Comprised of 17 members of the community, the committee is tasked with delivering a recommendation on the future of Rexall Place to the Northlands board by April 15, 2015. Here’s what Northlands’ new President & CEO Tim Reid had to say about the news:

“The opening of Rogers Place will change the competitive market place for Rexall Place. We need a short and long-term plan that meets Northlands’ objectives while identifying and assessing viable opportunities for the future use of Rexall Place and its site.”

That’s a very different message than the one delivered in March 2008 when then-Northlands-board-chair Jerry Bouma ruled out the possibility of keeping Rexall Place open if a new arena was built. “We can’t have two competing large-scale facilities,” he said at the time. A few years later, City Manager Simon Farbrother also suggested that Edmonton cannot sustain two arenas. Most people I have talked to feel the same way.

We have seen a similar scenario play out before. Eight years after Northlands Coliseum opened in 1974, the Edmonton Gardens was demolished. The situation is different today, of course – Rexall Place is one of the busiest arenas in the world whereas the Gardens was condemned at one point – but you can’t help but wonder, is that the fate of Rexall Place too?

Northlands, it seems, isn’t as sure as it once was. And it has struck this committee to help remove that uncertainty.

Rexall Place Planet
Rexall Place Planet by Kurt Bauschardt

Here are the committee members, with the “area of expertise” they represent in brackets (copied from the press release for posterity):

  • Mrs. Laura Gadowsky, Chair, Northlands Board of Directors (who is an ex officio member of all committees)
  • Mr. Harold Kingston, First Vice Chair, Northlands Board of Directors
  • Mr. Burke Perry, Second Vice Chair, Northlands Board of Directors
  • Mr. Andrew Ross, Arena Strategy Committee Chair, Northlands Board of Directors
  • Mr. Gerry Yuen, Northlands Board of Governors
  • Mayor Don Iveson, City of Edmonton
  • Mr. Dave Quest, MLA, Government of Alberta
  • Mr. Tom Ruth, President & CEO, Edmonton Airports (Industry and Commerce)
  • Mr. Dave Mowat, President & CEO, ATB Financial (Audit and Finance)
  • Mr. Brad Ferguson, President & CEO, Edmonton Economic Development Corporation (Economic Development)
  • Ms. Jerri Cairns, Vice Chair, Edmonton Chamber of Commerce Board of Directors (Industry and Commerce)
  • Mr. Ashif Mawji, Founder & CEO, NPO Zero (Audit and Finance)
  • Mr. Len Rhodes, President & CEO, Edmonton Eskimos Football Club (Sports and Entertainment)
  • Mr. Stephen Petasky, President & Founder, Luxus Group (Industry and Commerce)
  • Mr. Ray Block, Vice President of Administration and CFO, Northern Alberta Institute of Technology (Arts, Culture and Education)
  • Mr. Mack D. Male, Blogger of MasterMaq’s Blog and software developer/entrepreneur (Youth and Community Groups)
  • Ms. Geraldine Bidulock, Private Business Owner (Rural)

When I offered my help to Tim in his new role as President & CEO of Northlands, I had no idea that I would hear from him so soon. I am honored to have been asked to work with such a diverse and impressive group of community leaders. I know this is a big commitment, and I’m looking forward to making a big contribution.

The committee will further split into at least two subcommittees: one focused on examining other buildings in other cities, and one focused on public engagement. I will be very active on the public engagement side of things. We’ll be working with RC Strategies on that. Our committee will work to gather information and to encourage dialogue.

I am approaching this challenge with an open mind. As a committee, we don’t have an outcome in mind. Instead, we want to understand the range of possible outcomes, evaluate the pros and cons of each, gather input from the public on them, and ultimately try to come to some sort of decision about which is the best one for Edmonton.

So what happens when we’ve come to a decision? Our committee will deliver a recommendation to the Northlands board of directors in early April. The plan is for that recommendation to be made public on April 15. What happens next? We’re not sure. The board could adopt the recommendation, they could reject it, or they could let it sit. Northlands will hold its AGM at the end of April, so potentially one third of the board membership could be changing. The current board may simply decide to let the new board deal with our recommendation. We’ll have to see.

Stay tuned for details on the public consultation opportunities we’ll be facilitating. There will be opportunities to share your thoughts on the future of Rexall Place both in person and online. Of course, I want to hear from you directly and as soon as possible – feel free to leave a comment below or to get in touch. I’ll do my best to blog updates here as appropriate. It’s going to be an interesting few months.

Can new President & CEO Tim Reid help Northlands find its way?

Northlands announced today that Tim Reid will step into the role of President and CEO effective September 15, 2014. He takes over from CFO and VP of Corporate Services Sharilee Fossum, who stepped into the role in January when Richard Andersen resigned. Tim is coming off a successful stint in Fort McMurray and inherits an organization facing great uncertainty about its future.

Tim Reid

It was just over a year ago that Tim became CEO of the Regional Recreation Corporation of Wood Buffalo (RRC), the organization responsible designing, building, stewarding, and operating “several state-of-the-art community recreation, sport and event facilities and venues” in the Regional Municipality of Wood Buffalo. Prior to that, he was COO of MacDonald Island Park Corporation, precursor to the RRC. Tim will ease into his new role, remaining with the RRC in a supporting capacity for the next six months. The RRC had five projects in the design or construction phase as of January 2014, with a total budget of more than $360 million, including the $127 million Shell Place, slated to open in January 2015.

Tim takes over at a difficult time for Northlands. The organization seems as uncertain as ever about its future, especially in the face of major changes to its core businesses. Will it be an organization focused on agriculture, one focused on meetings & conventions, or one focused on sports & entertainment? Will it find the courage to narrow its focus, or will Northlands continue to straddle three very different industries?

These questions are all the more pertinent now that momentum is firmly behind Rogers Place, the new downtown arena. Despite repeated statements from Northlands officials over the years suggesting they’ll continue operating Rexall Place as-is, the fact is that losing the Edmonton Oilers will have a significant effect on the financial health of the organization. And no one knows if Edmonton can support two large concert venues.

There’s no question that Tim has had a positive impact on Fort McMurray, but can he find similar success here in Edmonton? Granted he doesn’t start for another month, but Tim’s first interviews with the media don’t provide much confidence.

Tim told Metro today that he understands the need to figure out a future for Rexall Place. “We’re trying to put together the data as we speak, so we know exactly what happens when the Oilers and their properties move to another arena,” he said. However, he went on to say that Northlands needs to “find out what opportunities there are for growth on the agriculture side, on the convention and hosting side.”

The downtown arena wasn’t decided yesterday of course – things have been in motion for quite some time now. Are we really to believe that Northlands is only now running the numbers on Rexall Place without the Oilers? I fully appreciate that Tim hasn’t even started yet, so he probably hasn’t seen all the data. He should have just said so. He told reporters that Northlands need to work with the City, Oilers, and Katz Group, but gave no details.

Edmonton Rexall Place

His second comment about finding other opportunities is potentially more concerning, especially coupled with his stated vision for Northlands:

“We want to be the heart of Edmonton and the place where the community goes to celebrate together.”

As a vision it is certainly concise and inspirational, but it’s also vague and generic. It doesn’t say anything about what Northlands is or does. The organization’s 2013 Annual Report lists agriculture, entertainment, trade shows, concerts, horse racing, casino, and conferences as the businesses that Northlands operates in. Its “looking forward” statement is just as confusing:

“As Northlands moves into 2014, we will continue to provide Edmonton and the Capital Region with the best in events and entertainment. We will capitalize on our role as an urban agricultural society by partnering with like-minded organizations to enhance our already robust local food market. As Edmonton’s destination of choice for entertainment, we will continue to bring some of the world’s best performers to our arena. We will build our visitor base for all of our venues by showcasing Northlands as the destination for entertainment, events and the community.”

Founded as an agricultural society 135 years ago, Northlands has never been willing to fully commit to entertainment, even after bringing in Richard Anderson from San Diego where he was GM of PETCO Park and Executive Vice President of the San Diego Padres. Over the years, members of the board have differed greatly on how much importance Northlands should give to its agricultural initiatives. The organization’s roots might be in agriculture, but it’s sporting that defines Northlands today, at least financially.

Without the $21 million that Northlands received in grant revenue in 2013, it would have run a $19.7 million deficit. Its four main businesses – Northlands Park, Rexall Place, Agriculture and Signature Events, and EXPO Centre – accounted for $136 million in revenue. Of that, Northlands Park (horse racing and casino) accounted for 43% and Rexall Place accounted for 28%.

With declining horse racing revenues and the likely loss of business due to competition with Rogers Place, it’s clear that Northlands needs to make a move. But talk of reinvention is easier said than done. With 19 members on its volunteer board of directors and an 18-person board of governors, Northlands currently has a lot of cooks in the kitchen. Tim certainly has his work cut out for him!

I think it’s great that Northlands was able to find someone relatively close to home to be its new leader. Tim has been in Alberta for years and is already familiar with the political climate here. For all its faults, Northlands remains extremely connected to the community. Last year alone, more than 1,100 volunteers donated more than 21,000 hours of their time and Northlands supported more than 80 charitable organizations, investing “more than $1.25 million in cash and value into the community.” I hope he does find success at Northlands and is able to have a positive impact on our city.

Tim, welcome to Edmonton, good luck, and in true Make Something Edmonton fashion, how can I help?

UPDATE: Here’s a post from McMurray Musings’ Theresa Wells on Tim and his leadership abilities.

Brad Ferguson is ‘all in’ as EEDC’s new President & CEO

One month into his new role as President & CEO of Edmonton Economic Development Corporation (EEDC), Brad Ferguson is still trying to get a handle on an organization that many would say is in need of change. Starting a new job is tough enough, but Brad’s new position comes with its own unique mix of history, politics, and public scrutiny. Despite that, Brad insists he is ready to tackle the challenges and bring about significant, positive changes. “I have never been so on for something in my life, since maybe when I was starting my own company,” he told me as our coffee interview got underway last week. “I’m fired up, I really am!”

Brad Ferguson

Though he has lived in a number of different places, Edmonton has always been Brad’s home. He earned a B.A. in Economics and B.Comm in Finance from the University of Alberta. A job at Proctor & Gamble took him away from the city in the mid-nineties, but he soon returned to start a family and “really setup shop.” After P&G, Brad spent time at KPMG and TkMC (Sierra Systems) before starting his own management consultancy Strategy Summit Ltd. in 2002. He has made a career out of advising organizations on how to become more competitive to facilitate growth.

He was not thinking about the EEDC job at first, but a series of conversations in recent months changed Brad’s mind. A number of individuals encouraged him to throw his hat into the ring, so he did. After going through the headhunting and formal interview process, Brad started to feel as though he might be selected. “I became downright competitive about it!” He had come to realize that the opportunity was too important to pass up, and he wanted the job.

At just 43 years of age, Brad will bring a perspective to EEDC that the organization has not had in fifteen years. His two most recent predecessors, Ron Gilbertson and Allan Scott, were both 55 when they took the job. Before them, Jim Edwards was 61 when he took over from Rick LeLacheur, the organization’s first president and CEO who was about six months older when he started than Brad is today. EEDC is often criticized as an “old boys club”, so the board’s decision to move ahead with Brad as the new leader reflects a willingness to change.

Established in 1993, EEDC is wholly owned by the City of Edmonton. The organization’s mandate includes the promotion of economic development and tourism, as well as the management and development of the Shaw Conference Centre and Edmonton Research Park. Or as Brad put it, the organization is made up of four very different business units. “We have a major facility and caterer, real estate, tourism, and economic development.” With 130 full-time employees, 650 part-time employees, and a $36 million annual budget, EEDC is a major force in our city yet many Edmontonians wonder what the organization does. Brad wants to change that.

“It’s about being externally focused,” he said. “It’s about demonstrating value to the community.” He acknowledges that structural changes are necessary, not only to change EEDC’s image, but to enable it to deliver on its mandate. “The structure has to mesh with strategy and be aligned to organizational outcomes.” He admits to feeling some public pressure to make changes as well.

That process will take time, but it starts this fall when Brad will take a series of directional statements to the board in an effort to get authorization to further explore the options. He hopes to present a set of recommendations by the end of the year. “I have three phases,” he explained. “Focusing the organization, building leadership capacity, and bringing about a cultural shift.” He’s not sure exactly what that change will look like, but he knows where he wants the organization to end up. “Our structure needs to build confidence and clarity in the marketplace.”

One of the first people Brad called after starting work was Richard Andersen, President and CEO at Northlands. “I want to bring resolution and clarity to the question of Shaw versus Expo,” Brad told me. Competition between the Shaw Conference Centre and Edmonton Expo Centre can sometimes be unhealthy, as each focuses on winning the client instead of ensuring the client comes to Edmonton and has the best experience possible. Like EEDC, Northlands has also struggled in recent years to defend its existence, a problem that only got worse when they were left out of discussions on the downtown arena. Under Andersen’s leadership however, there are signs that things are beginning to change for the better, and Brad certainly holds his counterpart in high esteem. “Richard is an incredible operator and leader in this community.”

The open approach to collaboration will be important as Brad charts a new course for EEDC. “No one organization is responsible for economic development,” he told me. “It’s a system, and it’s important to be supportive of other organizations.” While the amalgamation of the various economic entities in the nineties helped to bring clarity and efficiency to Edmonton’s economic development efforts, perhaps the time has come to reassess that structure. Perhaps EEDC doesn’t need to be in four different businesses.

Even if a breakup is not in the cards for EEDC, there is certainly room for greater coordination with other organizations. Just days after Edmonton Tourism’s joint initiative with Travel Alberta to bring former Bachelorette star Ashley Hebert and her fiance J.P. to Edmonton made headlines, Brad admitted that he learned a lot from the experience. “I have learned who they are,” he quipped. Then, becoming more serious, “I have made it known internally that I want to understand the ROI on this.” Brad was quick to support his staff however, explaining that experimentation and creativity are needed and should be cultivated. As for the collaboration with Travel Alberta, Brad was happy the two organizations were able to work together on a project. Still, he recognizes there is work to do. “There should be a joint context, a joint set of priorities.”

…

One of Brad’s earliest memories of Edmonton was a walk through the river valley when he was about eight years old. “I remember the green and gold of the leaves,” he recalled. “It felt like a new phase for me.” That same spot, near the Royal Glenora, had an impact on him later too when a conversation about the negative economic situation in Edmonton weighed heavily. In the latest phase of his career, Brad finds himself in a much healthier city, faced with the opportunity to have a major impact.

There are many Edmontonians that have shaped the leader Brad is today, and many that he admires greatly, but two stand out. “Sandy Mactaggart recognized there was opportunity here,” Brad said. “He was a city builder and is still a great philanthropist.” The other is Rod Fraser, perhaps best known as the former President of the University of Alberta. “He is one of the great communicators,” Brad said. “He talked about the university being indisputably recognized internationally as one of a handful of the best organizations.”

EEDC has been vocal about its vision to make Edmonton one of the world’s top five mid-sized cities by 2030, but Brad is not sold on that. “Visions are never achievable,” he told me. “They have to be long-lasting.” The implication is that being a top five mid-sized city is completely reasonable and achievable. “Let’s declare ourselves there, up the bar, and figure out what’s next.” He would rather see us really stretch. After all, as the saying goes, no one gives you power, you just take it.

So what would a stronger vision sound like? “The vision should be to consistently outperform every economic jurisdiction in North America for the next twenty years.” An audacious and yet very measurable statement. “That means when the price of oil fluctuates, we still need to outperform, so that’s resiliency.” The focus on North America rather than simply the world is important, because Brad says the “continental approach is where we want to perform.”

Whenever Edmonton’s aspirations are discussed, two words seem to get thrown around more than any other: world class. “I don’t subscribe to those words a lot,” Brad declared. When pushed for a definition, he said the first thing is we need to be proud of whatever we’re calling world class. And secondly, “it has to be relevant and respected by people outside of our borders.” He did have praise for the downtown arena, perhaps the project most often associated with the term. “I think the arena is a bold, dynamic project, that has the ability to spark the creativity and interest of whole lot of other developers,” he said. “I want to compliment the City for having the courage to really entertain this and to be involved as a partner.”

One word that Brad has been using very consistently and deliberately since taking over as CEO is “complacency.” To him, it perfectly captures one of Edmonton’s biggest challenges. “It’s our number one enemy,” he said. “Right now the economy feels strong, but there are some dark clouds looming.” It’s clear that Brad has thought a lot about the subject, and has strong feelings about how to avoid becoming complacent. “We need to change to a culture of competitiveness,” he told me. “We need to have a hunger to compete.” Despite his cautions about complacency, Brad does feel that Edmonton is more resilient and diversified today than ever before. And he notes that significant opportunities lay ahead for the city. “A number of the things Edmonton has – education, food, water – are things the world wants,” Brad said.

Ensuring we can articulate Edmonton’s story to the world is going to be an important piece in making the most of those opportunities. “There’s a real need to tell our city’s story better,” Brad declared. “I compliment the mayor for his leadership on this.” Noting that everyone has an opinion on the topic, he doesn’t think any one group can fully articulate what Edmonton’s story is. “I think a common language will emerge,” he said. “Something to do with the opportunity to contribute.” Whatever the story is, Brad hopes it has an impact on the way Edmontonians feel about Edmonton. “We have to build a little more pride in how we talk about our city,” he said.

Capital Ideas Edmonton Mixer

While Brad will absolutely need to lead the way as a retooled EEDC works to make Edmonton the economic jurisdiction to beat, he recognizes that he won’t be alone in that quest. “There are so many great people that want to help build this city,” he said. “Part of my job is to help them make something happen.” He stresses that his door is open, and that he’ll be both accessible and proactive. “Everyone can expect my call!”

Despite the economic turmoil taking place around the globe, Edmonton’s economy has remained strong and healthy growth is forecasted for the years ahead. Of course EEDC has a role to play in that, but it’s an indirect one that requires clear direction and strong collaboration. Ensuring EEDC has the right people, strategies, and relationships to play a significant role in that growth is absolutely something Brad must tackle. He’s ready to do just that.

“I want to fundamentally up the value of the organization to the community and to the City of Edmonton.”

I just hope they keep the corn dogs

If you haven’t made it down to Capital EX yet, you’d better hurry – Sunday is the final day for this year’s edition of the ex! Sharon and I made our annual visit last weekend, and ate way too much, enabled by a media package that gave us free food. It was fun, with some hits and some misses, but for the most part I found the experience similar to previous years.

Capital EX 2012

One of the new features this year was Ribfest. Its location was a little odd, but the ribs and pulled pork were both delicious. I’d like to see the competition aspect expanded in future years, especially as the vendors themselves seemed to enjoy showcasing their many trophies from around North America!

Capital EX 2012

Capital EX 2012

While walking the midway we happened upon the Canadian Beef Bacon wagon from Calgary. We decided to order the sliders, which gave us a nice sampler. To me it tasted a little like breakfast, with the beef bacon, an egg, and maple syrup-flavored bun. I really enjoyed it!

Capital EX 2012

Of course, no trip to Capital EX is complete without a corn dog and Those Little Donuts! Both were delicious.

Capital EX 2012
Forgive the picture, it’s all I’ve got!

Tomorrow is also the last day to Name Your Fair. Northlands is looking to rename the event next year, and after crowdsourcing suggestions from the public, narrowed the list of options down to six (with the help of partners Global Edmonton and the Edmonton Journal):

  • EdFest
  • The Edmonton Exhibition
  • Edmonton Summer Exhibition
  • K-Days
  • River City Festival
  • River City Summer Fair

Amazingly, that uninspired list is what they came up with after considering the following criteria:

  1. Relevance to the 21st century ahead.
  2. Consideration of the incredible historic growth and continued diversification of Edmonton’s multi-cultural fabric.
  3. Defining of the community spirit and outwardly fun characteristics that make Edmontonians who they are.
  4. Embracing of all demographics from new 21st century babies through to our shining senior citizens.
  5. Creative platforms enabling commercial partners to activate and deliver diverse and intriguing experiences.
  6. Agility that will allow a fresh and exciting new theme to be incorporated every year.

K-Days barely has any relevance to our past let alone our future. River City, while often used in Edmonton, could describe most cities in the world. And while the event is an exhibition, that’s not exactly the most exciting name.

Capital EX 2012

Why rename the event? Probably because attendance peaked in 2005, right before Klondike Days was renamed Capital EX. Maybe this is a case of garbage-in, garbage-out, but I find it hard to believe that those six names were the best suggestions the committee received. I don’t think crowdsourcing was the way to go this year. I think that no matter what the next name is, Edmontonians will like it better than Capital EX, simply because it will not have been the unlucky name to replace the beloved Klondike Days. For that reason, I think hiring an agency to do a complete rebrand would have been a better decision.

According to a news release sent out this morning, more than 40,000 votes have been cast in the Name Your Fair contest. It’ll be very interesting to see how many of them are for K-Days. You have until 6pm tomorrow evening to vote.

If those six names are the only options, I don’t really care which one wins. I just hope they still have corn dogs!

You can see more photos from our visit to Capital EX here.

Expanding the Shaw Conference Centre (again)

The Shaw Conference Centre is once again in the news. City Council’s Executive Committee will receive a report tomorrow that suggests the facility needs to be expanded. That recommendation should not be a surprise. On July 22, 2009, City Council passed this motion:

That Edmonton Economic Development Corporation prepare for Council’s approval a long-term (30 – 40 year) development plan to address the needs of the convention market in Edmonton.

If you ask EEDC what should happen with the convention market, of course they’re going to focus on the facility that they operate.

Shaw Conference Centre

The Edmonton Journal’s editorial board published a piece on the issue today. Here’s the key paragraph, in my opinion:

But there are plenty of reasons for caution. Taxpayers have just spent $150 million to expand Northlands’ rival convention and trade show facility, the new Expo Centre. Is there really an economic case to be made for two competing super-facilities, each publicly funded, run by two competing civic agencies?

Competition is a generally a good thing, but increasingly I find myself wondering why we have both Northlands and EEDC. Two organizations, both largely funded by taxpayers. If they weren’t competing, would things have turned out differently? Would the above recommendation have been different? Would we still have gone ahead with the Edmonton Expo Centre when we did? The success of that facility, which is still being paid off, has been questioned by many. Though as the City’s Chief Economist told me, that skepticism might be a little unfair. “It was developed and then we ran into a sour economy. You need to give them a full business cycle.”

Here’s what the current breakdown of rentable convention space looks like in Edmonton, according to the report:

There’s no denying that the amount of space at the Shaw Conference Centre (SCC) is significantly less than at the Expo Centre. But that alone is not reason enough to expand the facility. Here are the most up-to-date statistics on SCC usage, provided to me by EEDC:

  • In an average year, SCC receives 330,230 visitors (based on the last five years). A visitor is a person who has attended a function at SCC.
  • The split in visitors is roughly 70% regional versus 30% non-regional.
  • There are 20 to 25 days per year where SCC has no or the least number of bookings.
  • Using 2006 as a typical year and defining 75% occupancy as full, SCC was fully booked 115 days out of the year.

Compared to a few other Canadian conference venues, SCC’s visitor stats stack up quite nicely:

I’m not sure exactly which facilities they were comparing with, but clearly SCC is being used. EEDC says that over the last two and half years, it has turned away approximately 40 conventions and trade shows for future years. And apparently none of those have decided to go with the Expo Centre instead, which should have had the necessary space, presumably because they wanted to be downtown.

If we’re going to add more convention space, I think downtown is the place to do it. But I agree with the Journal’s position, “it’s also important that we not simply assume that if we build it, they will come.” So I guess I am left with a few key questions:

  • Why was the Hall D expansion so limited? If we got the forecasting wrong then, are we going to get it right this time? Are we really looking ahead 30 years?
  • Is expanding SCC really the best way to add more convention space downtown?
  • Despite the lip service paid to cooperation in the report, can Northlands and EEDC really work together to grow Edmonton’s convention market?

The next steps outlined in the report include finalizing the business case for the expansion. According to EEDC’s own backgrounder, the earliest an expansion would be completed is at least seven years from now.

Aside #1: Think back to 2004 and consider all of the technology that didn’t exist. Will large conventions as we think of them today still happen in 2018?

Aside #2: The report contains what might just be my least favorite phrase ever: “Festival City in a Box”.

Aside #3: It turns out I have an Edmonton Journal article on my desk from September 12, 1963 (I’ll explain later). Apparently we held just 42 conventions in 1962, far behind Toronto’s 657, Calgary’s 172, or even Regina’s 57. Even Moncton had more conventions than we did at 48. Our conventions in 1962 attracted 17,932 visitors who spent a total of $1,869,000, or $104 per person.