Community Services Department Capital Budget Adjustment Request (Selkirk Hotel).
Recommendations:- That City Council approve the Selkirk Hotel Project (Fort Edmonton Park) as outlined in Attachment 1, subject to completion of all approval processes to the satisfaction of the General Managers of Community Services, Corporate Services and Planning and Development Departments.
- That the Community Services Department 2002 - 2003 Capital Budget be increased by $1,285,000 (source of funds to be Fort Edmonton Historical Foundation and the Enterprise Portfolio Reserve Fund) to fund the Selkirk Hotel Project (Project Profile 02-21-5355).
Report Summary
- The Fort Edmonton Historical Foundation (the Foundation) is preparing to build a replica of the Selkirk Hotel at Fort Edmonton Park.
- The Foundation desires to start construction in July 2002. Delays will add an estimated $110,000 to the construction cost and could disrupt Fort Edmonton Park operations in the 2003 season.
- The Project Approval and Capital Budget Adjustment will allow for construction to proceed as soon as other approvals have been completed.
- The Foundation is in the process of documenting the funding raised to construct the Selkirk Hotel.
Previous Council/Committee Action
At the City Council Public Hearing on September 5, 2001, the following bylaws were given Second and Third Readings:
“Bylaw 12835 – To Amend the Text of the Zoning Bylaw, Bylaw 12800, As Amended, by Adding a New Section, Section 541 - (AN) River Valley Activity Node Zone.
Bylaw 12836 – To Amend the Zoning Bylaw from (A) Metropolitan Recreation Zone to (AN) River Valley Activity Node Zone, Located North of Brander Drive and 66 Avenue and West of Whitemud Drive, River Valley Whitemud.
Bylaw 12837 – To Amend the Zoning Bylaw from (A) Metropolitan Recreation Zone to (AN) River Valley Activity Node Zone, Located South of 98 Avenue and West of 96A Street, Cloverdale.”
At the July 17, 2001, City Council meeting, the following motion was passed:
“That the 2001 Fort Edmonton Park Land Use Master Plan Update be approved as per Attachment 1 (of the June 4, 2001, Community Services Department report), subject to City Council approval of the Associated AN Zoning Bylaws 12835, 12836 and 12837.”
Report
- The Selkirk Hotel is referenced in the Fort Edmonton Park Master Plan (1987), approved by City Council in 1988.
- As a major Edmonton landmark in the first decades of the 20th century, the Selkirk Hotel represents a significant aspect of Edmonton’s history.
- The proposed structure will enable Fort Edmonton Park to address the interpretative themes of commercial, sports, technological and social change in the early post-war period, as outlined in the Fort Edmonton Park Master Plan.
- The Foundation has chosen Selkirk Hotel as its next priority for development within the park. This project is in accordance with the legal agreement between the City of Edmonton and the Fort Edmonton Historical Foundation, effective January 1, 2002, to December 31, 2006, (renewal in progress).
- The financial impact to the Foundation’s construction budget is an estimated increase of $110,000 if construction is not started by August.
- If construction starts by August, the Foundation expects to complete the Hotel before the Park opens to the public in May 2003.
- Certain administrative details, reviews and approvals cannot be completed in advance of submitting this report to the Community Services Committee and City Council. The Community Services Department and the Foundation continue to work on all the necessary processes, e.g., verification of funding, approval of site plans, completion of all required elements of the Development Permit application.
- A preliminary financial pro forma prepared by the Foundation and the Community Services Department shows that this project has a positive net income and will contribute to the long-range financial viability and growth of Fort Edmonton Park.
- Corporate Services Finance Branch, is conducting a final, independent assessment of the degree of financial risk.
- The Community Services Department is working with the Foundation to provide satisfactory documentation of funding availability, for review by Corporate Services Finance Branch. Approval by the General Manager of Corporate Services on funding verification will be required.
- Design drawings have been done, and the construction budget provided by the Foundation’s contractor.
- The Planning and Development Department is in the process of reviewing the Environmental Impact Assessment and expects to approve it subject to specific conditions, including those identified to date (sign-off of a drainage site plan, and a satisfactory method of addressing the migratory birds issue).
- The Foundation will ensure that all applicable Development and Building Permits are obtained.
Budget/Financial Implications
- The total estimated cost (including utility connections) for this project is $3,100,000. All capital funds required (with the exception of utility costs) will be provided by the Fort Edmonton Historical Foundation. The Foundation will contribute $2,900,000.
- The cost of site servicing to the building will be funded from the Enterprise Portfolio Reserve Fund (in accordance with C479 - Fiscal Policy for the Enterprise Portfolio, Community Services). The cost will be determined as engineering studies are completed, but are expected to be of the magnitude of $130,000 to $200,000.
- There is no budgeted impact on the tax levy; additional revenues are planned to offset any increase in expenditures.
Justification of Recommendation
- Approving this project supports the contractual relationship between the Fort Edmonton Historical Foundation and the City of Edmonton.
The approvals of the General Managers of Community Services and of Corporate Services Departments will ensure that due diligence is exercised on all required reviews, processes and issues before construction begins.
- The Capital Budget Adjustment is required to allow the project to proceed.
Fort Edmonton Park is a significant destination for Edmontonians and tourists; the addition of this unique structure will enhance its overall appeal. This project will not require any additional capital funding from the City.
Background Information Attached
- Selkirk Hotel Project Description
- Budget Adjustment Request - Project Profile 02-21-5355.
Background Information Available on Request
- Environmental Impact Assessment, Selkirk Hotel, Fort Edmonton Park
Others Approving this Report
- Randy Garvey, General Manager, Corporate Services Department
- Larry Benowski, General Manager, Planning and Development Department
(Page 1 of 3)
Attachment 1
Selkirk Hotel Project Description
PROGRAM STATEMENT
The reconstruction of the Selkirk Hotel will include the development of a three-story hotel. The site selected for the hotel is the intersection of 1920 Street and 1905 Street west of the Blatchford Field Air Hanger. The first, second and third storeys of the hotel, will occupy a development area of approximately 18,750 square feet. Although this development area is slightly larger than the original hotel building area, a marginal increase in size has been proposed to accommodate current life safety code requirements and to allow for more comfortable hotel rooms offering greater amenities to be constructed and to facilitate all of the program requirements.
The replication of the Selkirk Hotel will include the development of 30 hotel units on the two upper level floors. The hotel will be fully operational from Victoria Day long weekend to Labour Day weekend, in conjunction with the operation of Fort Edmonton Park. The development schedule also includes a café/bar (Johnson’s Café) to be developed on the main level. The café will have 60 to 80 seats and will feature a 75-foot long bar accommodating an additional 30 to 35 seats.
The hotel may also house Jack’s Taxi-Cab Service. This taxi service may be functional at certain times throughout the operating season to transport visitors between the main Fort Edmonton Park entrance and the hotel. A nominal fee will be charged for this service. Hotel patrons will also be able to gain access to the hotel via the on-site railway, wagon or street-car. No direct access to the hotel will be permitted, except for handicapped transportation.
The Selkirk Hotel is an important addition to Fort Edmonton Park because:
It is a signature piece for 1920 Street and its intersection location makes a demonstrable transition from 1905 Street
It exemplifies the enterprise business model adopted for Fort Edmonton Park where new additions must be financially self-sustaining
It was a historically significant structure occupying a central location (Jasper and 101 Street) for over 60 years in Edmonton’s past
BUILDING PLANS, SITE, ACCESS AND PARKING
Building plans are being prepared by Hip Architects. The building will be a replica of the original located on the southwest corner of Jasper Avenue and 101 Street. The building has no basement. The main floor features a lobby, dining room, kitchen and bar. The street around the building has yet to be detailed but the intent is to change the rural–style road with ditches to a more conventional urban street with gutters and concrete sidewalks. The original hotel featured the first street with modern concrete walks and paved roads.
The building is the first of a series of buildings contemplated for the north side of 1920 Street. A replica of the Capitol Theatre is currently intended to be an adjoining structure. Further north of 1920 Street is the Blatchford Field Air Hanger, which was just recently developed on site. A special events tent and a temporary parking area are currently located west of the hangar. The special events tent and the accessory parking lot are to be removed, as the hotel will be located in the existing parking area. The parking area is currently used during special events that are held at the air hangar and the tent area. This parking will no longer be provided and guests of special events will be required to park in the main parking areas and gain access via train, wagon, or streetcar. (The booking of off-hours special events also requires the booking of some form of transportation for the guests within the site.)
The building is adjacent to the riverside boundary of the park, where an access road exists to serve various parts of the park. Some trees of a buffer beside the road will have to be removed to make way for the building construction process.
Hotel parking will be a designated area within the overflow parking area. Only a portion of the hotel patrons will be coming to site with their own transportation. Because the hotel will only be open during the normal operation season of the park (May to October), shuttle service from the parking area will by supplied by various historical modes of transportation including old taxis, the train and streetcar. Hotel bookings outside of the normal park season will observe the same park and shuttle arrangement.
The hotel will cater to handicapped (at least one handicapped accessible hotel room) and therefore one handicapped stall will be provided behind the hotel and out of sight.
CONSTRUCTION PROGRAM
After the completion of working drawings by HIP Architects and after development and building permits have been obtained from Edmonton Planning and Development, Stuart Olsen Construction is set to begin construction this summer.
A great deal of care is being taken to minimize the impact of construction activities on park patrons and operations and the surrounding community including:
Historically themed solid hoarding around the project
Access restrictions for crew and material deliveries
No construction during the four major weekend Park events
(Page 1 of 3)
Attachment 2
Budget Adjustment Request – Project Profile 02-21-5355.
Community Services(thousands of dollars)
PROGRAM: Recreation and Cultural Facilities
PROJECT NAME: 2002 Major Attractions Enterprise Model / 02-21-5355
Group-Criteria: C-24 Economic Development & Promotion / Project Manager: Cochrane L.
BUDGET / Prior Year / 2002 / 2003 / 2004 / 2005 / 2006 / Total
Budget as Approved / 1,815 / - / 1,815
Change / 245 / 1,040 / 1,285
Revised Budget / 2,060 / 1,040 / 3,100
Plan
Existing Plan Expenditures
Change
Revised Plan
TOTAL BUDGET & PLAN / 2,060 / 1,040 / 3,100
Budget
Financing / Request / Prior Year / 2002 / 2003 / 2004 / 2005 / 2006 / Total
Developer Financing / 1,085 / 1,860 / 1,040 / 2,900
Enterprise Reserve / 200 / 200 / - / 200
Total Financing / 1,285 / 2,060 / 1,040 / 3,100
Description
This project will provide funding for improvements and new development to Community Services major attractions.
Project included is the Selkirk Hotel 2002 - 2003.
Justification
On June 24, 1997 Council approved the establishment of the Enterprise Model as a business approach for management of
the Kinsmen Sports Centre, Fort Edmonton Park, Valley Zoo/John Janzen Nature Centre, Muttart Conservatory, Municipal
Golf Courses, Municipal Cemeteries and Commonwealth Stadium.
The Enterprise Model is intended to offer more flexibility to the facilities in actively seeking new revenue and other business
opportunities. The concept sees operational savings from increased efficiency and/or revenue surpluses reinvested into a
reserve fund, which is used to develop capital projects and improvements, develop business opportunities described in
each facility's business plan, and to establish an operational reserve for cyclical downturns. Corporate Business Plan
Intiatives: Infrastructure and Physical Environment; Implement the Infrastructure Strategy. Department Business Plan
Initiatives: Develop a long-range facility plan for the Community Services Department.
Source of Estimates: Detailed Design: +/- 10%
Proposed Adjustment: This adjustment reflects the total costs and financing required for the construction of the
Selkirk Hotel. This project will provide funding for the construction of a replica of the Selkirk Hotel 2002 - 2003, as per the
Fort Edmonton Master Plan. The Fort Edmonton Historical Foundation will be responsible for funding all capital costs
except for site servicing costs ($200,000), which will be funded from the Enterprise Reserve. The Foundation will also
manage construction of the project. Costs of $1,025,000 (for the Selkirk Hotel) were previously identified in 2003 in Project
XX-21-5355. These will be removed during update of the 2003-2007 Capital Priorities Plan.
Project Cost Breakdown
Construction / $ / 3,100
Expenditures to Date:
Last Updated: 6-JUN-2002 / (as at 12/31/01) / $ / 3,100
Attachment 2 - Page 1 of 1