The case for municipal public private partnerships discussed with the Association of Municipalities of Ontario

1. Association of Municipalities of Ontario
August 18, 2009
Association of Municipalities of Ontario
August 18, 2009
The case for municipal publicThe case for municipal public
private partnershipsprivate partnerships

2. 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.

3. 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

7. Key Forum Team
Participants/Suppliers
Key Forum Team
Participants/Suppliers
Kilmer Van Nostrand Capital Partner
Johnson Controls/BLJC Operations
Aecon Buildings Design Builder
Lemay + Doyle Architects Architect
YMCA/YWCA of Ottawa-Carleton Land swap/Options/
Services Partnership
Communishare 10 Local not for profits

8. 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

9. 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

10. Public Private
Partnerships
A YMCA Perspective

11. YMCA of Hamilton / Burlington / Brantford
3 Examples of Municipal / YMCA Partnerships
• Township of Flamborough
• City of Hamilton
• City of Brantford
Other YMCA / Municipal Partnerships
Factors Contributing to Successful Partnerships

12. 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

13. 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

14. Project Partners
YMCA and Township were key partners
Additional 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

15. 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

16. Some Benefits to the Township
YMCA expertise in design, build and operate
• Staff and volunteer (Board & Committee) expertise
National programs in aquatics, fitness, wellness, leadership
Major community capital fund raising campaign (local &
regional) resulting in lower cost to Township
State of the art facility open 365 days each year
Facility that is open to all, regardless of ability to pay a fee
Ongoing annual campaign to provide financial assistance
No ongoing operational costs and no ongoing capital costs

17. Flamborough YMCA

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

19. Hamilton Mountain YMCA
City of Hamilton’s population exceeds 500,000
Hamilton Mountain (south part of city) is major growth area
Urgent need for a recreation centre
Plans for a new Police Station and Library
In 2002, the newly amalgamated City experienced the
benefits of Municipal / YMCA partnerships
Suggestion to build the three facilities together and
experience possible synergies

20. 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

21. Library / Police / Hospital / City
Partnership
Benefits of community policing – community interaction
Residents benefit from “one stop” community centre
YMCA / Library / Skate park benefit from shared clientele
Wider range of programs and services to all participants
Hospital expertise and leadership in preventative medicine
• Bone & joint, cardiac, cancer wellness, youth obesity
Efficient capital construction and operations

22. City of Brantford Project – Planning
Stages
Project Partners
• City of Brantford
• YMCA
• Laurier University
• Nipissing University
• Mohawk College
• First Nations
• Private Developers

23. 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

24. 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

25. Monetary Benefits of Partnerships
Philanthropic Revenues
• Communities support effective & efficient partnerships
Access to Provincial Funding
• $2M from Province of Ontario for Hamilton Mountain
• Provincial Recreation Infrastructure funding
Access to Federal Government Funding
• Recreation Infrastructure funding

26. 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 Vision
Trust

27. 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

28. Thank You
Jim Commerford
(905) 317-4919
Jim_Commerford@ymca.ca
President & CEO
YMCA of Hamilton / Burlington /
Brantford