Spruce Grove and District Agricultural Heritage Society:

Building Project Feasibility Study

FinalFebruary 2016

Spruce Grove and District Agricultural Heritage Society:

Building Project Feasibility Study

Executive Summary

The Spruce Grove and District Agricultural Heritage Society has a long standing legacy and history of success in the region which includes the preservation of the historic Grain Elevator; one the Spruce Grove’s signature landmarks. Because of the Society’s efforts the history of Spruce Grove continues to be preserved and celebrated.

Over the past two years, the Society has explored the possibility of enhancing the Grain Elevator site through the development of a new multi-purpose building. The building project would create a modern and suitable facility for the Societies existing components (museum, archives, community events, farmers market) while also providing new spaces that can help expand programming and foster increased use of the site by residents and community groups. A feasibility study was commissioned to further explore the need, viability and costs associated with the potential project.

The feasibility study document outlines a facility program (components and amenities) for the potential building. Key facility program elements include:

• Modern museum and archive space

• Expanded indoor market/multi-use space

• Social gathering/multi-use space (capacity of ~100)

• Two multi-purpose program rooms (capacity of ~20 for each space)

The capital cost of constructing the building is estimated at $6,171,750 including fees and contingencies. A preliminary operating budget has also been developed for the potential facility. The operating budget outlines a number of targets and assumptions that would need to be met in order for the facility to operate at a positive revenue position.

The feasibility and viability of the project will be based on the Societies ability to secure partnerships and collaborations for both the capital development and ongoing operations of the facility. The facility has the opportunity to significantly enhance the heritage and cultural asset base of the Spruce Grove area. Engagement conducted with stakeholders as part of the feasibility study process reflected and importance of ensuring that heritage and culture is preserved and valued in the community and region. Stakeholders also expressed that a need exists to further engage residents and visitors in the community’s culture and heritage.

The feasibility study ultimately provides the Society with the information required to make future decisions on the building project. As the project moves forward, it is likely that the following next steps will be required:

1. Develop/finalize the capital cost funding model

2. Secure funding commitments from all necessary partners and stakeholders (including internal fundraising)

3. Determine construction/project delivery model

4. Construct the facility

Table of Contents

1: Project Background and Context 1

About the Spruce Grove and District Agricultural Heritage Society 1

The Building Project 1

Feasibility Study Process and Purpose 2

2: Market Context 3

The Spruce Grove Region: Population and Demographics 3

Population 3

Population Projections 4

Agricultural and Heritage Opportunities in the Market Area 4

Community Program Spaces 5

Heritage Interpretive Sites 6

Farmers’ Markets 7

Previous Strategic Planning in the Region 8

3: Stakeholder Consultation 9

Interview Sessions: Key Themes 9

Community Group Survey: Key Findings 10

Table of Contents

4: Trends Analysis 11

Cultural and Heritage Tourism 11

Creating Opportunities for All Ages and Abilities 11

Volunteerism 12

Facility Trends 13

Multi-Use Spaces 13

Ensuring Accessibility 13

Revenue Generating Spaces 14

Incubator Spaces 14

Social Amenities 14

Promotions and Marketing 14

5: Facility Program and Concepts 15

Facility Program 15

Facility Concepts 16

6: Financial Implications 18

Capital Cost Estimates 18

Operating Cost Estimates 19

7: Summary and Next Steps 21

1 Project Background and Context

About the Spruce Grove and District Agricultural Heritage SocietyThe Spruce Grove and District Agricultural Heritage Society was established in 1972 to support agriculture, horticulture, and quality of life in the community. The Society’s goal is to ensure that they keep the history of the community alive for both the present and future generations. The organization played a vital role in the preservation of the Grain Elevator, which continues to be a popular and well visited regional tourist attraction. The 1958 Alberta Wheat Pool elevator is the last remaining wooden elevator to be seen traveling west on Highway 16A.

The Grain Elevator site, as it has become known, currently includes the Grain Elevator Museum, Archives, and Farmers’ Market. The site hosts a number of community events each year which include Flap Jacks at the Tracks, the Farm and Heritage Carnival and the Harvest Fair. The Society also hosts educational programs for schools, known as “Origins of our Community”.

The Building ProjectThe Spruce Grove and District Agricultural Heritage Society is exploring the development a new building on the Grain Elevator site. The intent of the building project is to develop a single, modern and suitable space to accommodate the current activities that take place on the site (e.g. farmers markets, museum and archives, community events) and provide additional space for future growth and expanded community usage.

While the Society has already explored a number of potential designs and options, it was deemed necessary to further assess broader community and regional need for such as facility, capital, and operational cost feasibility, and to identify future planning considerations.

Mission StatementThe Spruce Grove and District Agricultural Heritage Society, with volunteer commitment, provides opportunities for the preservation of our past to include the Historical Culture of the Community, the showcasing of our present and the preparation for our future through educational programs, tours, and sales of locally made/grown products while providing a gathering place for people.

Value Statements1. We believe in volunteers working together and

sharing ideas with respect and integrity.

2. We value community awareness of our organization.

3. We believe in preserving our past in order to teach the future.

4. We value community leadership.

Vision StatementThe Spruce Grove and District Agricultural Heritage Society is committed to:

• Presenting our agricultural and historical past, present and future to the public;

• Building an emporium to house a museum, archives, restaurant and farmers market;

• Maintaining the Grain Elevator as a working facility from the past; and

• Providing a place of destination to support our activities creating a unique attraction focusing on our past, present and future.

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ResearchMarket Overview

Trends

Stakeholder Engagement

Interviews andDiscussions

CommunityGroup Survey

Analysis FeasibilityStudy

Facility Program(Components and Amenities)

andFinancial Implications

Feasibility Study Process and PurposeThe graphic below illustrates the process that was used to develop the feasibility study.

As reflected in the chart, research and engagement with stakeholders was important to the development of the study and the identification of required components, amenities, and financial implications of undertaking development. The feasibility study will ultimately serve as a tool that the Spruce Grove and District Agricultural Heritage Society can use to inform future decisions on the potential project. The study can also assist in helping the Society undertake future discussions with potential partners and key project stakeholders.

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2 Market Context

The Spruce Grove Region: Population and DemographicsSpruce Grove is a growing community within a dynamic region of urban and rural lifestyles. With a rapidly increasing population, Spruce Grove’s most recent Municipal Census (2015) states that, “the City must continue to plan strategically for the impacts of this extraordinary growth in terms of providing sustainable infrastructure, services and programs for its residents”. This section provides a population and demographic analysis to deliver an understanding of the market that a new facility could potentially serve.

The following graphic illustrates the Spruce Grove Trade Area Profile. In total, Spruce Grove’s Primary Trade Area is estimated at over 80,000 residents and projected to exceed 90,000 within 5 years. This figure does not include the trade area to the west of Spruce Grove (Secondary Trade Area WEST) which extends into Edmonton. If this population was included, the trade area of Spruce Grove would exceed 120,000.1

1 http://www.sprucegrove.org/Assets/pdf/reports/trade_area_profile.pdf

PopulationWith its population reaching 32,036 in 2015, Spruce Grove has doubled in size since 2001. Not only has the growth been constant, this past year marked the City’s highest one-year population gain which was 8.5%. Adjacent to the west of Spruce Grove, the Town of Stony Plain has experienced growth as well and has a population of 16,127. The surrounding municipality of Parkland County has a population of 30,568 which provides a regional population of nearly 79,000 residents.

The following tables provide population data from available Municipal Census data.

Municipality 2015 2014 2013

Spruce Grove 32,036 29,526 27,875

Source: City of Spruce Grove Municipal Census

Municipality 2015 2010 2003

Stony Plain 16,127 14,177 10,544

Source: Town of Stony Plain Municipal Census

Municipality 2009 2005

Parkland County 30,089 29,679

Source: Parkland County Municipal Census

The following tables provides population data from previous Statistics Canada Census of the Population counts.

Municipality 2011 2006 2001 1996

Spruce Grove 26,171 19,541 15,983 14,271

Stony Plain 15,051 12,363 9,630 8,281

Parkland County 30,568 29,220 27,210 25,215

Total 71,790 61,124 52,823 47,767

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Population ProjectionsThe City of Spruce Grove has initiated a Growth Study that is scheduled for completion in mid-2016. Spruce Grove’s Municipal Development Plan (MDP) states that the City must “plan to accommodate 40,000 residents by 2044”. However since the MDP was finalized in 2010 the community’s population has already increased by 30%, with 8.5% growth occurring between 2014 and 2015 alone. If these aggressive rates of growth continue, the community will exceed 40,000 residents well before 2044. If previous growth rates were applied to the 2015 population of Spruce Grove, the following population scenarios could occur:

• Scenario 1: (7.5% annual growth) reflects the dramatic growth experienced from 2013 to 2015 and would result in a 2030 population of 94,791 residents.

• Scenario 2: (5.6% annual growth) reflects the population increase experienced from 2011 to 2015 which would result in 72,543 residents in 2030.

• Scenario 3: (2.8% annual growth) reflects the annual growth rate predicted by the Capital Region Population and Employment Projections (2013) and would result in a 2030 population of 48,447 residents.

Should the rates of growth identified in Scenarios 1 and 2 occur, there is likely to be a significantly increased need for community space to accommodate new and emerging program demands.

Agricultural and Heritage Opportunities in the Market AreaAn understanding of the spaces currently used for agriculture, heritage, and related social gatherings in the area is important in order to better understand the market context. The following section provides an overview of these spaces and current activities that take place in them.

Spruce Grove Population and Demographic HighlightsHighlighted as follows are key demographic characteristics of Spruce Grove as identified by the City’s 2015 Municipal Census and available Statistics Canada data.

• Single detached dwellings make up around two-thirds of the City’s housing; however this figure has dropped to 63.4% from 65.1% in 2014.

• The average number of people per dwelling in 2015 was 2.66 (provincial average: 2.4).

• The median age of Spruce Grove in 2011 was 33.7 (provincial average: 36.5).

• Spruce Grove’s three largest population age groups are the 30 to 34 year olds, 35 to 39 year olds, and children ages 0 to 9.

• 4.2% of Spruce Grove’s population identifies as a visible minority, with the highest proportion of these individuals identifying as Filipino.

• The three largest sectors of employment (by industry type) in 2010 were:

1. Construction

2. Health care and social assistance

3. Retail trade

• 53.1% of the population holds a post-secondary certificate, diploma, or degree.

• The unemployment rate in Spruce Grove was 4.9% in 2010.

• 3.6% of residents aged 15 and older use active transportation methods (walk, bicycle) to commute to work.

• The median value of residential dwellings in 2010 was $349,038.

• 71.6% of owner households are carrying a mortgage.

• The median family income in 2010 was $93,617.

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Community Program SpacesPresented as follows is an overview of community program and social gathering spaces in the immediate Spruce Grove and Stony Plain area. These include multi-purpose rooms and banquet type facilities. In addition to spaces located in the immediate area, there are an estimated 51 spaces located within the broader region that can accommodate banquets or social functions under 250 people, and 3 facilities that can accommodate banquets and social functions of over 250 people.1

1 Data from the Tri-Municipal Region Event Hosting Strategy.

Facility Amenities/Components Rental Rates

TransAlta Tri-Leisure Centre

2 Meeting Rooms Hour: $40 Full-day: $210

Field House Non-Prime (hour): $94 Prime (hour): $120

Arenas (can be converted into large social gathering space) Dry Floor (hour): $80

Spruce Grove Agrena Agra Room (capacity: 80) Hour: $41 Full-day: $246

Pioneer CentreMelcor Hall (capacity: 155) Full-day: $360

RPW Room (capacity: 50) Full-day: $150

Spruce Grove Sports and Recreation Facility3 Multi-purpose Rooms Facility is currently

under development.2 Meeting Rooms

Stony Plain Community Centre Hall Space (capacity: 250) Hour: $100 Full-day: $1000

Multicultural Heritage Centre (Stony Plain) Gymnasium Hour: $20

Heritage Park Pavilion (Stony Plain) Large Social Gathering and Performance Space Hour: $156.25 Full-day: $1,562.50

Stony Plain Golf Course Meeting and Banquet Space 3 hours or less: $5/person Over 3 hours: $5/person

Devonian Botanic GardensIndoor Pavilion (capacity: 20 to 60) Half-day: $325

Full-day: $500Outdoor Tent (capacity: 80)

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Heritage Interpretive SitesIdentified in the chart below are heritage interpretive sites in the greater Edmonton region.

Facility/Site Amenities/Components Programs and Opportunities Offered

Grain Elevator Site • Grain Elevator Museum

• Archives

• Water Tower

• Farmers Market agricultural artifacts.

• Community events

• School group educational programs

• Guided tours.

Stony Plain and Parkland Pioneer Museum • Historical buildings

• Tea House

• Agricultural land plot

• Agricultural and historical artifacts

• Community events

• School group educational programs

• Guided tours

Fort Edmonton Park (Edmonton) • Historical villages and buildings

• Midway rides

• Theatre

• Restaurants

• Artifacts

• Train ride

• Interactions with Park interpreters

• Dining

• Hotel

• School group educational programs

Musee Heritage Museum (St. Albert) • Exhibits

• Historical houses, school, and agricultural buildings

• Archives

• Featured exhibitions

• Historic walking tours

• School programs

• Family drop-in programs

Grain Elevator Train Station (St. Albert) • Historical buildings • Educational programs

• Tours

• Birthday parties

Fort Heritage Precinct (Fort Saskatchewan) • Historical village, houses, and train station

• Museum.

• Guided tours

• North West Mounted Police exhibit

• Educational programs

Strathcona County Museum and Archives • Building is Sherwood Park’s first fire hall

• Train station

• Grain elevator

• Blacksmith shop

• Historical exhibits

• Exhibits

• Interpretive education

• Self-guided and guided tours

• School programs

• Seniors tours,

• Lunch

Leduc West Antique Society • School

• Historical buildings and residences

• Edmonton Power Historical Museum

• Tractor pulls

• Expositions

• Tours

• Swap meets

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Fort Saskatchewan Market

Baseline Farmers’ Market

Edmonton French Quarter Sherwood Park Farmers’ Market

Sailsbury Farmers’ Market

City Market Downtown

Edmonton Highlands

St. Albert Outdoor Farmers’ Market

Morinville Farmers’ Market

Spruce Grove Farmers’ Market

Stony Plain Farmers’ Market

Alberta Beach Farmers’ MarketDarwell Farmers’ Market

Seba Beach Farmers’ and Crafters’ Market

Old Strathcona Farmers’ Market

Edmonton Millwoods

Edmonton Seniors CentreEdmonton Westmount

Edmonton University of Alberta

Southwest Edmonton

Edmonton Callingwood Farmers’ Market

Leduc Farmers’ Market

Farmers’ MarketsThe following map depicts the location on farmers markets that are currently operational in the greater Edmonton region.

Name Location Description Address

Spruce Grove Farmers’ Market Elevator Site 120 Railway Avenue, Spruce GroveStony Plain Farmers’ Market Stony Plain Community Centre 5008 51st Avenue, Stony PlainSt. Albert Outdoor Farmers’ Market St Albert Downtown St. Anne Street and St. Thomas StreetEdmonton Callingwood Farmers’ Market Callingwood Shopping Centre 66th Avenue and 178th Street, EdmontonAlberta Beach Farmers’ Market Agriplex 4811 47th Avenue, Alberta BeachDarwell Farmers’ Market Darwell Hall 54 225B, AB-765, DarwellSeba Beach Farmers’ and Crafters’ Market Seba Beach Heritage Pavilion 505 1st Avenue South, Seba BeachOld Strathcona Farmers’ Market Old Strathcona 10310 83rd Avenue NW, EdmontonCity Market Downtown Downtown Edmonton 104th Street and Jasper Avenue, EdmontonSherwood Park Farmers’ Market Sherwood Park Sherwood Park Community CentreBaseline Farmers’ market Sherwood Park 390 Baseline Road, Sherwood ParkSalisbury Farmers’ Market Strathcona County 52337 Range Road 232, Strathcona CountyLeduc Farmers’ Market Leduc 4821 50th Avenue, LeducFort Saskatchewan Market Fort Saskatchewan 10030 99th Avenue, Fort SaskatchewanEdmonton French Quarter La Cite Francophone 8627 91st Street, EdmontonEdmonton Highlands St Mary's Anglican Church 112 Avenue and 68 Street, EdmontonEdmonton Millwoods Millwods Recreation Centre 7208 28th Avenue, EdmontonEdmonton Seniors Centre General Hospital 11111 Jasper Avenue, EdmontonSouthwest Edmonton Terwillegar Community Recreation Centre 2051 Leger Road, EdmontonEdmonton University of Alberta Students' Union Building 8900 114th Street, EdmontonEdmonton Westmount St Andrews Centre 12720 111th Avenue, EdmontonMorinville Ray McDonald Sport Arena 9908 104th Street, Morinville

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Previous Strategic Planning in the RegionThe City and other regional municipalities have undertaken numerous planning projects and exercises in order to help optimize community services and plan for future needs. The Tri-Region Leisure Services Master Plan identifies a number of strategies which support the importance of ensuring that culture is preserved and fostered. Strategies with potential relevance to the Building project include:

• Stress Collaboration within the Community System (Strategy #3)

• Place Particular Emphasis on Program Affordability (Strategy #5)

• Develop a Cultural Strategy for the Region (Strategy #6)

• Develop a Community Education Strategy (Strategy #7)

• Formalize Special Event Planning (Strategy #10)

The Spruce Grove and District Agricultural Heritage Society currently helps the City and other regional municipalities meet these strategic objectives by providing highly affordable, education based programs and events and programs.

The City’s 2010 Your Bright Future: Municipal Development Plan also identifies key strategic factors (areas of service) that will be a priority for the City. These include:

• Affordability

• Community sustainability

• Culture and heritage

• Economic development

• Parks and recreation

The City of Spruce Grove is also currently in the process of developing a Cultural Master Plan, which will guide how the City supports organizations in the delivery pf arts, cultural, and heritage opportunities in the community. The Master Plan is being guided by 5 assumptions:1

1. Cultural Resources: Cultural Planning embraces a broad definition of cultural resources that includes creative cultural industries and occupations, cultural spaces and facilities, natural and cultural heritage resources, festivals and events, community cultural organizations, and intangible cultural resources such as community stories.

2. Cultural Mapping: Cultural Planning begins with cultural mapping, a systematic approach to identifying, recording, classifying and analyzing a community’s cultural resources.

3. Adopting a ‘Cultural Lens’: Cultural Planning involves establishing processes to integrate culture as a consideration across all facets of municipal planning and decision-making.

4. Cross-sectoral Strategies: Cultural Planning requires new partnership models or mechanisms to support ongoing collaboration between the municipality and its cultural, community and business partners.

5. Networks and Engagement: Cultural Planning involves strengthening networks across all facets of the cultural sector and strategies to support ongoing community engagement

1 http://www.sprucegrove.org/government/departments/community_services/ cultural_services/cultural_plan.htm

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3 Stakeholder Consultation

Stakeholder consultation was identified as an important component of the feasibility study in order to gather perspectives on the potential project. The following chart provides an overview of the community organizations that were engaged. In addition to the groups identified in the chart, 5 additional interviews were conducted with individuals that represented other community perspectives (e.g. City Alderman, business community members, previous City staff). In total, 10 interviews were convened.

Organization Interview Session

Community Group Survey

City of Spruce Grove Cultural Services a

Stony Plain and Parkland Pioneer Museum a

Spruce Grove Farmers Market a

Spruce Grove Chamber of Commerce a

Allied Arts Council a

Kinsmen Club of Stony Plain a

Parkland Village Community Centre a

Millgrove School a

Presented as follows are key findings from the consultation.

Interviews Sessions: Key ThemesThe heritage of Spruce Grove is important and should be preserved. Consistently mentioned by interviewees was the importance of the Grain Elevator site to the community and the need to preserve the communities and region history. A number of those interviewed suggested that perhaps heritage preservation had not received appropriate priority in the past and should be identified as a future priority.

Opportunities exist to expand the cultural capacity of the community. A number of those interviewed expressed that Spruce Grove has a strong reputation for sports, but that the cultural scene has not yet fully evolved. The importance of developing quality and appropriate cultural spaces was mentioned as a need by some of those interviewed. The Grain Elevator site was identified as a space that could be further maximized. However the broader need of aligning arts and cultural groups and program providers was identified as being needed in order to ensure that duplication doesn’t occur.

A new building on the Grain Elevator site needs to be of the right size and scale. Concerns were commonly expressed that the viability of the project could be at risk if the project becomes too grandiose and expands beyond the core needs of the site and Society. The risk of “overbuilding” was identified by a number of those interviewed, specifically as it pertains to long term operations and sustainability. However if the right size of building is developed, interviewees generally agreed that the facility could help address a number of community facility needs and provide organizations with valuable program, gathering and event spaces.

The Grain Elevator site has accessibility challenges that need to be resolved. Consistently identified by interviewees were issues with accessing the Grain Elevator site and the implications that this could have on future development. The railway line and Highway 16A were mentioned as both physical and perception barriers that many believe prevent some residents from visiting the site. In particular, the impact that these challenges have on the farmers market were cited. It was commonly suggested during the interviews that the Spruce Grove and District Agricultural Heritage Society needs to engage the City in a broader discussion around opportunities to improve actual and perceived access.

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Active and ongoing programming of the facility and site will be crucial to operations of a new building. Interviewees strongly suggested that the success of a new building will require an active staff and volunteer presence. This will help ensure that spaces are utilized to the fullest potential and that ultimately the facility can be sustainable. It was suggested by some of those interviewed that the Society should explore collaborations with user organizations that may require space and/or be able to assist with “animating” the program spaces. The need to continue developing cultural and heritage programs and events that are fun and dynamic was also mentioned as being important and a reason for ensuring that a new facility is properly resourced.

Strong appreciation exists for the Spruce Grove and District Agricultural Heritage Society. Stakeholders expressed positive sentiments towards the Society and its role in the community. The contributions of the Society in preserving the Grain Elevator and advocating for heritage were commonly mentioned. It was suggested that the potential building project may require an evolution in how the Society operates. The need to put in place strategies to attract and retain volunteers and shifting more responsibility towards paid staff were regularly mentioned.

Community Group Survey: Key Findings

• All 4 responding groups expect to grow in the coming years.

• 2 of the 4 responding groups indicated that current facilities “somewhat” meet the needs of their organization, while 2 groups indicated that current facilities “completely” meet the needs of their organization.

• 2 of the 4 responding groups indicated that they would potentially use social gathering space (up to 100 person capacity) should it be available in a new building. Meeting/Program rooms, Community Art/Exhibit Display Space, Indoor Market Space were each identified as potentially being used by 1 group.

• Responding groups expressed the importance of preserving and celebrating heritage and ensuring that suitable spaces are available for heritage, the arts, community events and social enterprise activities.

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4 Trends Analysis

A review of trends can help ensure that the potential building project adequately considers and aligns with best practices and the demand for programming and events. Highlighted as follows are a number of pertinent trends and leading practices that should be considered in the potential development of a building and future operations.

Cultural and Heritage TourismCultural tourism is an important and growing segment of the tourism industry. Its participants are increasingly young, well-educated, spend more money on their trips, and seek unique personal experiences. Although not a new phenomenon, cultural tourism has consistently been characterized by the points below.

• Frequent Short Trips: The cultural tourist, while small as a percentage of all tourists, makes numerous short trips to participate in cultural activities year-round.

• Travellers are Increasingly Conscious of their Destination of Choice: Cultural tourists are well-informed and well-prepared about the social histories of their destinations before embarking on their trips. Especially among young people, contextual research is just as important as logistical planning and is usually done online.

• A Personal Experience: Cultural tourists seek experiences that are meaningful to them and that will result in individual reminiscences and memories which refer more to the tourist’s personal history than to that of the site.

• High Quality and Authentic Experiences: Many tourists want to find out about the local culture and really immerse themselves in a unique and genuine experience. This includes ‘untouched’ landscapes, traditional foods, original crafts and to interact with locals and their customs.

• Cultural and Heritage Tourism Increasingly Includes Cultural Landscapes and Townscapes: For cultural tourists, landscapes are not necessarily valued for their inherent beauty as they are for their social and historical significance: that is, how the land formed, how it is/was used and what happened there. The built environment, including townscapes and streetscapes, is equally as important as natural landscapes.

School groups represent a significant portion of the museum attendance market, usually 15% to 25% of total on-site attendance. Ensuring that programming appeals and is relevant to the school market becomes very important to interpretive centres, museums and cultural institutions in general. Factors influencing school attendance include:

• Distance from schools

• Relationship between school curriculum and museum offerings

• Quality of experience

Creating Opportunities for All Ages and AbilitiesCritical to the success of any cultural or community facility is the ability to deliver meaningful programming that is valued and attractive to all ages and ability levels. Doing so will help ensure success by creating community destinations or “hubs” that families can enjoy.

Activity preferences are also evolving among many age groups. A paper published by the Ontario Parks Association notes that “boomers” are generally better educated, came of age in a more consumer driven society, and have a different perspective on aging than previous generations of seniors. As a result activity preferences of these younger “boomers” vary in a number of ways from previous generations of seniors, which include:

• A willingness to try more intense and adventurous pursuits;

• Greater demand for, and importance placed on, convenience and service levels;

• Desire to undertake activities that separate themselves from feeling “old”;

• Greater desire and willingness to integrate with children, youth and younger adults in recreational pursuits; and

• A greater interest to partake in recreation and leisure activities that are outdoors.

Cultural, heritage, and recreation facilities need to consider these factors in program design and be willing to adjust traditional activities and scheduling.

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VolunteerismThe nature of volunteerism is rapidly evolving and will continue to impact how community facilities operate and meet resident needs.

Identified as follows are a number of pertinent trends in volunteerism that may impact or have relevancy to the delivery of seniors programming or facility operations.

Findings from the 2010 Canada Survey of Giving, Volunteering and Participating—Alberta data tables:1

• Albertans volunteer at a higher rate (54.7%) than the national average (47.0%)

• The highest volunteer rate in Alberta is among adults aged 35 to 44 (63.4%) followed by youth and young adults aged 15 to 24 (56.7%) and adults aged 55 to 64 (51.3%).

• Although seniors had the lowest volunteer rate (49.6%), they had the highest average of annual volunteer hours (206 hours on average per year).

1 Data compiled by Statistics Canada. http://www.statcan.gc.ca/pub/89-649-x/ 2011001/tbl/tbl210-eng.htm

Current trends in volunteerism as identified by Volunteer Canada:2

• Much comes from the few. 47% of Canadians volunteer. Over one-third (34%) of all volunteer hours were contributed by 5% of total volunteers.

• The new volunteer. Young people volunteer to gain work related skills (Canadians aged 15 – 24 volunteer more than any other age group). New Canadians also volunteer to develop work experience and to practice language skills. Persons with disabilities may volunteer as a way to more fully participate in community life.

• Volunteer job design. Volunteer job design can be the best defense for changing demographics and fluctuations in funding.

• Mandatory volunteering. There are mandatory volunteer programs through Workfare, Community Service Order and school mandated community work.

• Volunteering by contract. The changing volunteer environment is redefining volunteer commitment as a negotiated and mutually beneficial arrangement rather than a one-way sacrifice of time by the volunteer.

• Risk management. Considered part of the process of job design for volunteers, risk management ensures the organization can place the right volunteer in the appropriate activity.

• Borrowing best practices. The voluntary sector has responded to the changing environment by adopting corporate and public sector management practices including: standards; codes of conduct; accountability and transparency measures around program administration; demand for evaluation; and outcome and import measurement.

• Professional volunteer management. Managers of volunteer resources are working toward establishing an equal footing with other professionals in the voluntary sector.

• Board governance. Volunteer boards must respond to the challenge of acting as both supervisors and strategic planners.

2 Alberta Heritage Community Foundation. http://www.abheritage.ca/volunteer/index.html

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Facility TrendsOver the last two decades, the ways in which community facilities are development has evolved significantly in order to meet increasing user demands and market competition. Presented as follows are a number of key infrastructure trends.

Multi-Use SpacesIncreasingly, facilities are being designed to accommodate multiple activities and to encompass a host of different components. The benefits of designing multi-use spaces include the opportunity to create operational efficiencies, attract a wide spectrum of users, and procure multiple sources of revenue. Providing the opportunity for all family members to take part in different opportunities simultaneously at the same location additionally increases convenience and satisfaction for residences.

Creating spaces within a facility that are easily adaptable and re-configured is another growing trend observed in many newer and retrofitted facilities. Many performing arts venues are being designed in such a manner that staging, seating, and wall configurations can be easily changed and configured as required. Similarly, visual arts spaces such as studios and galleries are being designed in a manner that allows them to be used for a multitude of different art creation and display purposes. Similarly, gymnasium spaces and field house facilities are being designed with temporary barriers, walls, bleachers and other amenities that can be easily adjusted or removed depending on the type of activity or event.

Ensuring AccessibilityMany current facilities are putting a significant focus on ensuring that user experiences are comfortable; including meeting accessibility requirements and incorporating designs that can accommodate various body types. Programming is made as accessible as possible via “layering” to provide the broadest appeal possible to intellectual preferences.

Meeting the needs of various user groups is also an important aspect of accessibility. Incorporating mobile technologies, rest spaces, child-friendly spaces, crafts areas, and educational multi-purpose rooms for classes and performances is an emerging trend. Accessibility guidelines set by governments, as well as an increased understanding of the needs of different types of visitors is fueling this trend. Technology is also being embraced as a modern communication tool useful for effectively sharing messages with younger, more technologically savvy audiences.

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Revenue Generating SpacesIncreasingly, community facilities are being required to find creative and innovative ways to generate the revenues needed to both sustain current operations and fund future expansion or renovation projects. By generating sustainable revenues outside of regular government contributions, many facilities are able to demonstrate increased financial sustainability and expand service levels.

Lease spaces provide one such opportunity. Many facilities are creating new spaces or redeveloping existing areas of their facility that can be leased to food and beverage providers and other retail businesses. Short term rental spaces are another major source of revenue for many facilities. Lobby areas, programs rooms, and event hosting spaces have the potential to be rented to the corporate sector for meetings, team building activities, Christmas parties and a host of other functions.

Incubator Spaces Many urban communities are experiencing a growing demand for commercial kitchen “incubator” space. This emerging trend reflects the growth of ‘niche’ food markets and a lack of suitable and affordable facilities that can accommodate upstart operations. The demand is also being driven by the increased value that many consumers are putting on locally sourced food. In fact, a 2012 ALMA (Alberta Livestock and Meat Agency) study found that 47.9% of respondents agreed with the statement that locally produced food is better. The same study found that two-thirds of people are willing to pay more for locally sourced food defined as “food grown in and around Alberta” and 79% said they would try a restaurant solely because it served food produced in the region. This consumer preference has started to result in increased opportunities for local food producers. However many upstart producers lack the means to develop their own facilities and are instead looking for opportunities to share space and knowledge. The development of incubator spaces has helped address these needs while also bringing about economic benefits to the local region.

Social AmenitiesThe inclusion of social amenities provides the opportunity for multi-purpose community recreation and cultural facilities to maximize the overall experience for users as well as to potentially attract non-traditional patrons to their facility. Examples of social amenities include attractive lobby areas, common spaces, restaurants and cafeterias, spectator viewing areas, meeting facilities and adjacent outdoor parks or green space. It is also becoming increasingly uncommon for new public facilities, especially in urban areas, to not be equipped with public wireless Internet.

Another significant benefit of equipping facilities with social amenities is the opportunity to increase usage and visitation to the facility during non-peak hours. Including spaces such as public cafeterias and open lobby spaces can result in local residents visiting the facility during non-event or non- program hours to meet friends or simply as part of their daily routine. Many municipalities and not for profit organizations have encouraged this non-peak hours use in order to ensure that the broader populace perceives that the facility is accessible and available to all members of the community.

Promotions and MarketingCritical to the success of any community facility is the ability to communicate activities, programs, and events to both the local and regional market. The nature in which communication occurs is quickly evolving and requires program and event providers to adjust accordingly. The emergence and power of social media is of particular importance. Putting in place a strong communications plan, which includes social media platforms, can help increase awareness and drive facility visitation. Other key elements of a strong promotions and marketing campaign include:

• Identification of target and secondary markets.

• Clear and concise messaging.

• Two-way dialogue (providing opportunities for patrons and potential users to communicate back needs and experiences).

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5 Facility Program and Concepts

Facility ProgramComponent/Amenity Space Required Benefits and Uses

Museum 3,000 ft2 Collection space for artifacts and displays.

Archives 1,500 ft2 Climate controlled space for archived artifacts.

Indoor Market/Multi-Use Space 3,000 ft2Public market space for farmers market and

other community uses (e.g. small trade shows, social functions, cultural programs).

Commercial Kitchen 1,500 ft2 To service events and functions.

Social Gathering/Multi-Use Space 3,000 ft2 (~100 person capacity)

For small events, social functions, cultural programs, and community programming.

Adjoining Multi-Purpose Program Rooms (2) 1,600 ft2 (~20 person capacity for each space)

Meeting and program space. To support other facility spaces or for dedicated use.

Storage Space 2,000 ft2 To support facility activities.

Office Administration Spaces 600 ft2 To support facility staff and operations.

Lobby and Entryway 2,300 ft2 To support pedestrian flow and program space.

Washrooms 2,000 ft2 To support facility capacity.

Exterior Patio 1,500 ft2 Adjacent outdoor space to accommodate expanded markets (summer) and social gatherings.

Total Space 22,000 ft2

The following chart outlines a facility program for a potential new building at the Grain Elevator Site. The facility program has been developed based on the research and engagement conducted and the current operations of the existing spaces on the Grain Elevator site.

The objective of the outlined facility program is to meet the current and long-term needs of the Society. The spaces outlined have been sided accordingly based on expected uses and overall market need.

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Facility Concepts

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6 Financial Implications

Capital cost estimates have been developed based on the facility program outlined in Section 5. The costs identified reflect current (2016) market conditions. It is important to note that further refinement of the capital budget will need to occur should the project proceed to detailed design. These preliminary capital costs are estimated to be ±20%.

Capital Cost EstimatesRevenues Ft2 Unit Cost Component Cost

Museum 3,000 $250 $750,000

Archives 1,500 $250 $375,000

Indoor Market/Multi-Use Space 3,000 $250 $750,000

Commercial Kitchen 1,500 $250 $375,000

Social Gathering/Multi-Use Space 3,000 $250 $750,000

Adjoining Multi-Purpose Program Rooms (2) 1,600 $250 $400,000

Storage space 2,000 $250 $500,000

Lobby and entryway 2,300 $250 $575,000

Washrooms 2,000 $250 $500,000

Office administration spaces 600 $250 $150,000

Exterior Patio 1,500 $100 $150,000

Sub Total 22,000 — $5,275,000

Capital Cost Summary $

Sub Total $5,275,000

FFE (@ 7%) $369,250

Contigency (@ 5%) $263,750

Professional Fees (@5 %) $263,750

Total Estimated Project Value $6,171,750

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Operating Budget: Key Assumptions

• Provincial and municipal contributions will remain consistent with historical amounts.

• The Society will procure an ongoing lease arrangement for weekday use of the social gathering/multi-purpose space at a rate of $12.50/ft2.

• The Society will place an increased focus on offering heritage and agricultural programs and achieve 300 program registrations at a net profit of $50 per registration. Achieving this target may require collaboration and/or a formalized partnership with an existing community program provider.

• The Society will be successful in achieving the key rental targets of:

» 26 weekend rentals of the social gathering/multi-use space

» Average 12 hours per week of rentals for multi-purpose program rooms

• Food services will be conducted internally or through a preferred vendor agreement which provides a net profit to the Society of $20 for a full meal, $10 for a light meal/snack.

• Sponsorship revenues are assumed to capital.

• Capital replacement allocations are not included in the operating budget.

Revenues Assumptions Year 1

Agricultural Societies Grant As per historical funding amounts. $25,000

Municipal Operating Contributions As per historical funding amounts. $25,000

Casino/Gaming Revenue Estimated. $35,000

Membership Fees Estimated. $1,000

Museum Revenue 800 paid visitors annually @ $5/person. $4,000

Indoor Market/Multi-Use Space: Famers Market Lease 36 weeks @ $200/day. $7,200

Indoor Market/Multi-Use Space: Rentals 12 rentals @ $500/day. $6,000

Social Gathering/Multi-Use Space: Weekday Community Organization Lease Assumes an ongoing lease arrangement for space @ $12.50/ft2 (3,000 ft2). $37,500

Social Gathering/Multi-Use Space: Weekend Event Rentals

26 weekend rentals @ $500/weekend (assumes 50% rental of available weekend capacity).

$13,000

Multi-Purpose Program Rooms: Community Rentals Average 8 hours per week @ $30/hour. $12,480

Multi-Purpose Program Rooms: Corporate Rentals Average 4 hours per week @ $50/hour. $10,400

Ag Society Programs 300 annual program participants @ $50 net profit per registration. $15,000

Operating Cost EstimatesA preliminary operating budget has been developed based on expected utilization, an understanding of market conditions, and current operations of the Grain Elevator site. It is important to note that these figures reflect a number of key assumptions that will be critical to sustainable operations of the facility. A number of these assumptions will require further exploration and refinement as the project evolves.

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Revenues Assumptions Year 1

Other Fundraising Initiatives (e.g. events) Estimated. $25,000

Commercial Kitchen Revenues: Meal Service 10 events with full meal service, average 75 people @ net profit of $20/per plate; 15 events with light meal/snack service, average 50 people @ net profit of $10/per plate.

$22,500

Commercial Kitchen Revenues: Kitchen Rentals (e.g. programs, food prep rentals, incubator rentals/lease)

Assumes 40 hours per month @ $25/hour. $12,000

Total Revenues $251,080

Expenses Assumptions Year 1

Facility Manager 1 FTE @ $50,000 plus 20%. $70,000

Program Staff & Expenses To be budgeted as per net profit per registration targets ($50 per registration) and available net $0 grants.

$0

Commercial Kitchen Staff and Supplies Expenses calculated as per net profit revenue targets of $20/per plate for full meal service and $10/per plate for light meal/snack service.

$0

Custodial Assumes contracted services. 20,500 ft2 @ $1.50/ft2 (excludes outdoor patio space). $30,750

Marketing Estimated. $5,000

Accounting and Bookkeeping Estimated. $9,000

Bank Charges Estimated. $2,500

Repairs and Maintenance Estimated. $7,500

Insurance and Fees Estimated. $15,000

General Supplies Estimated. $5,000

Waste Removal Estimated. $2,500

Office, Postage Estimated. $2,500

Utilities 20,500 ft2 @ $2.50/ft2 (excludes outdoor patio space). $51,250

Phones/Internet $200/month. $2,400

Site Maintenance Estimated. $13,000

Miscellaneous Estimated. $5,000

City of Spruce Grove Local Improvement Tax (Expires in 2025) As per historical expenses. $16,000

Total Expenses $237,400

Net Revenue $13,680

Five-Year ProformaYear 1

(—)Year 2 (15%)

Year 3 (10%)

Year 4 (8%)

Year 5 (5%)

Revenues $251,080 $288,742 $317,616 $343,025 $360,177

Expenses $237,400 $273,010 $300,311 $324,336 $340,553

Net $13,680 $15,732 $17,305 $18,690 $19,624

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7 Summary and Next Steps

The Spruce Grove and District Agricultural Heritage Society Building Project Feasibility Study was initiated to help inform future decisions regarding the potential project. Information contained herein can help assess if the project is viable for the Society and be used to facilitate future discussions with potential project partners and stakeholders.

Research and consultation was important to the project in order to better understand community and regional need and identify future considerations for the project. Summarized as follows are key findings from the research and consultation.

• Spruce Grove continues to be one of the fastest growing communities in Alberta.

• Stakeholder strongly suggested that heritage is important and should be valued.

• A new building at the Grain Elevator site can help showcase the heritage and culture of Spruce Grove and increase the community’s cultural capital.

• As the community continues to grow, so will demands for space to accommodate both existing and emerging programs, activities, and events.

• Stakeholders generally support the notion of a new building at the Grain Elevator site if the facility is properly scaled (not “overbuilt”) and the Society can demonstrate long-term sustainability.

• Trends, best practices and feedback from stakeholders support the need to ensure that components and amenities in a new building are “multi-purpose” and attractive.

• The overall supply of program and social gathering spaces in the region has changed due to the recent development of new facilities in Spruce Grove (Spruce Grove Sports and Recreation Facility) and Stony Plain (Heritage Park Pavilion).

Based on the research and consultation conducted, a facility program (list of potential components and amenities) was developed for a potential new building. This information was then used to identify a capital cost for the project, which is estimated at $6,171,750 (including fees).

Component/Amenity Space Required

Museum 3,000 ft2

Archives 1,500 ft2

Indoor Market/Multi-Use Space 3,000 ft2

Commercial Kitchen 1,500 ft2

Social Gathering/Multi-Use Space 3,000 ft2 (~100 person capacity)

Adjoining Multi-Purpose Program Rooms (2)

1,600 ft2 (~20 person capacity for each space)

Storage Space 2,000 ft2

Office Administration Spaces 600 ft2

Lobby and Entryway 2,300 ft2

Washrooms 2,000 ft2

Exterior Patio 1,500 ft2

Total Space 22,000 ft2

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As the project moves forward towards development, it is suggested that the Spruce Grove and District Agricultural Heritage Society undertake the following actions:

• Further engage the City in the discussions regarding:

» Opportunities to improve site access (physical and perceived).

» Anticipated strategic outcomes of the ongoing Cultural Services Master Plan.

» Opportunities to align the project with other identified needs of the City and region.

• Develop a sustainability plan, with a focus on volunteer recruitment and retention.

• Continue to engage with stakeholders to further refine program space needs.

As the project moves forward, the following steps should be pursued.

1. Develop/finalize the capital cost funding model

2. Secure funding commitments from all necessary partners and stakeholders (including internal fundraising)

3. Determine construction/project delivery model

4. Construct the facility

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