GVVA Special General Meeting - Monday June 22 at 7:30pm
Michael Cooper
Call for a GVVA Special General Meeting
The GVVA executive wishes to call a Special General Meeting on Monday June 22 at 7:30pm – location TBA to discuss the following proposal.
Save the Velodrome Proposal
Over the past 6 months the GVVA executive has met with WSPR administration and attended WSPR board meetings to attempt to regain access to the cycling track. In March, we put forward a proposal for access as part of a lease arrangement that would ensure the long-term survival of the track. We thought we had approval from the Facility Users Committee for this, however, the WSPR board chair refused to discuss this agenda item at the April board meeting. Instead, he directed the Facility Users Committee to come up with another proposal for the May board meeting. This proposal is attached as a pdf file. The May WSPR proposal contains unrealistic time lines and a requirement for a $50,000 non-refundable “deposit” that is outrageous. The GVVA executive put forward one more proposal for access to the cycling track arguing that the GVVA should not be required to replace the infield turf as a condition of access. We met with the administration of WSPR on June 4. We were advised that this proposal had already been considered and rejected by the Facility User Committee, and unless we had something to bring to the table there was no point in going forward. Furthermore, there was no likelihood that the WSPR Board would have approved such a proposal since they have already indicated at previous meetings that the majority would oppose access without commitment to replacing the infield.
The tone of discussion with the WSPR administration was cordial and productive in a number of areas. It is clear that the best option for the infield is a turf infield (rather than inline skating, roller hockey, skateboard park, etc). The demand for an artificial turf field is increasing despite the number of other all-weather fields that are being built in Greater Victoria. This makes for a solid business case that an artificial turf infield can generate $35,000 per year in net revenue. The other issue that is clear is that unless there is a major change of politics on the West Shore, the GVVA will not get access to the cycling track until we have put forward a proposal that is close to the committee’s proposal, and that the proposal includes some upfront money.
Here is a vision for securing the future of the cycling track for the next 12 to 20 years that will give us the best chance of building our sport:
1. Members of the GVVA subscribe to a $300,000 - $400,000 bond. This would require quite a few people to share the risk. We would negotiate with a bank to arrange for a self-sustaining loan for each of us to pay for the bond. The debt would be serviced by revenue from the infield rental. In fact, WSPR is so sure of this revenue stream, they would be willing to agree to a $35,000 payment per year. Depending on the terms negotiated by the bank, a $400,000 loan over 12 years could be serviced by $35,000 in revenues. In fact, both the principal and interest would be returned over the 12 years thus eliminating the need for an “exit” strategy for bond holders. The details of this arrangement will need to be worked out very carefully, and a business plan developed.
At the June 4 meeting, WSPR administration indicated that under this arrangement, WSPR would undertake all of the maintenance of the turf field and look after the bookings. They saw potential cost sharing options around maintenance of the artificial turf by partnering with City Centre Field. Basically this means that the GVVA would not have to manage the facility. We would only have to look after the cycling track, and presumably be responsible for all of the relevant maintenance issues. The understanding that we would have is that the entire $35,000 is available to service the bond, i.e. operating and maintenance costs are not deducted from this. The GVVA would still need to generate revenue from membership and events to cover maintenance costs related to the cycling track, much as we always have done.
Terms for renewal of the agreement with WSPR after 12 years would have to be agreed upon, as well as a discussion around the issue of turf replacement in 15-20 years. The above scheme does not provide a contingency for such replacement nor would we propose that this agreement do so, i.e. WSPR and the West Shore community need to undertake this responsibility.
Based on the initial feedback for this proposal, the key issue will be working out the details of a binding legal agreement that would provide the necessary security. Many important issues with regard to the business plan have to be developed. Some of these issues include negotiating with a bank to secure a rate that would allow for $35,000 in revenue stream to pay down a loan of $400,000. The bank would need to have collateral behind the load. Since the lending group does not own the asset, then presumably the collateral is that which each individual lender is willing to risk. We would need to have approval for this bond or loan before proceeding with the application for a Government grant. Obviously, the loan would not be issued until the government grant was available, and construction could proceed in order to generate the revenue stream. At the end of the day, perhaps the key issue is how solid the agreement with WSPR is with regard to providing annual payments (presumably on a monthly basis). A significant question is whether it is possible to craft a legal agreement that could provide sufficient security to allow the bond/load subscribers to feel confident.
If there is sufficient interest in considering this option, then the GVVA executive can enter into negotiations and start working out the details.
2. Partner with Field Lacrosse and Soccer. They are not interested themselves in promoting the preservation of the velodrome facility, but given the reality that the infield is not going to be converted to a full-size field, if we approached them with our guaranteed $400,000 then they might be willing to support our plan. We would then form a consortium of all of the velodrome user groups, with terms that specify the ongoing existence of the cycling track, and reasonable terms for access during the cycling season. Another appeal for the field groups is that a replacement infield turf would be much better quality than the carpet ever was. The replacement turf would also eliminate the drainage problem that currently exists at one end of the infield.
3. The Velodrome User Consortium would then be in a position to apply for government grants. The best option is the Gaming Commission. We would apply for a Major Capital Project Grant for $100,000. Applications are accepted between Oct 1 and Nov 30. Final notification is March 31, 2010. We can also apply for a Direct Access Grant in the same year of which up to $20,000 may be used for minor capital projects. Applications are from Feb 1 to May 31, with final notification on Aug 31, 2010. The Major Capital Project Grant can be accumulated over 3 years with prior approval, however such approval is not a guarantee for future capital project grants (i.e. we should only be thinking of trying for 1 grant)
4. With Lacrosse and Soccer on board, there will be improved fund-raising potential for an additional $100,000 to meet the full budget requirement. This could be done through other government grants, corporate fundraising, holding fundraising events, municipal budget, etc.
5. There is a chance of gaining access to the track in 2009 if we can convince the WSPR that we have some of these steps in place, especially securing the $400,000 and having a partnership with lacrosse and soccer in place. As described above, the loan would not be issued until after grant approval in March.
6. With a secure long-term future, the GVVA would then be in a position to promote the sport of track cycling. Bleachers and an announcer’s stand could be set up along the finishing straight that would create spectator excitement, for example with “Friday night racing under the lights”, etc. The GVVA would have control over bookings for the cycling track. Other cycling user groups such as triathlon and cyclists from other cycling clubs would need to become GVVA members. This would increase our membership base and enhance our credibility and fund raising potential. We also need to build community based programs such as the school league, and learn-to-race programs. Weekly motor-pace sessions might appeal to an additional segment of road riders looking to advance their training.
This plan would guarantee us 12 years of access to the velodrome, and hopefully longer. The life of modern turf could be as long as 16 to 20 years. For those of us invested in the bond, we would most likely have our investment paid off in 12 years.
The other option is to continue to battle WSPR. There may be some tactics we can employ in the battle, but we are running low. Also, we could win the battle, but it would only take a change of government and we have to start all over again. In fact, without such a lease arrangement, the cycling track is perpetually one vote away from destruction every month. I think we can be sure that if we continue an adversarial approach, WSPR will do its utmost to find ways of working around whatever agreement might exist between the board and the municipalities. Rather than focus our energies on building our sport and our programs, we would be in a never-ending battle with the WSPR.
The proposal to forge an agreement with the West Shore is a bold vision that means taking a measured risk to ensure the long term gain for our sport.
Thanks very much.
Chris Anstey
President, Greater Victoria Velodrome Association
Appendix 1 – Last Proposal Rejected by WSPR
The Greater Victoria Velodrome Association has researched a number of funding proposals to meet the criteria of the Facility Users Committee report of April 30, 2009. The GVVA is not able to meet the deadlines imposed by WSPR for important grant programs. We have also learned that the proponent of the grant must be the organization that is offering the program. Clearly, when it comes to capital grant requests for replacement of the infield turf, the GVVA is unable to meet this criterion. Also, the GVVA is a non-profit society with the mission of promoting track cycling for the community. Taking on the management of the entire facility is beyond our mandate, and our members are not in support of doing so. We also note that there has been a significant increase in the number of year-round, artificial turf fields in Greater Victoria (e.g. Cordova Bay, City Centre Park, plans for the Peninsula, etc). This makes the business plan for a replacement turf at the velodrome less certain.
It is our opinion that having a perfectly usable recreation facility lying unused behind locked gates is not in the best interests of either the WSPR or the GVVA. The following proposal would allow for reasonable use for cycling and for the generation of rental revenue for the WSPR. The GVVA has been a consistent and responsible revenue-generating organization for WSPR since 1996. Over the years, the GVVA has taken responsible for most of the upkeep and maintenance of the cycling track. The GVVA has consistently offered programs for the general public in addition to racing events, and Provincial and Canadian Championships. We have been proud to assist in the training of some of Canada’s top Olympic and Paralympic athletes.
The GVVA requests immediate access to the cycling track on a rental basis. The infield and the cycling track would remain behind a locked fence. The GVVA will comply with the insurance and indemnification issues previously identified by the WSPR:
1. Appropriate insurance is provided with the Society named as an additional insured
2. A letter signed by the GVVA’s insurance broker confirming the receipt and understanding of the Velodrome Risk Control Report
3. An agreement is signed by the GVVA indemnifying the Society against any legal action in regards to the use and /or condition of the Velodrome
4. An agreement is signed by the individual users indemnifying the Society against any legal action in regards to the use and/or condition of the Velodrome
5. An agreement is signed by the GVVA agreeing to reimburse legal costs arising from the defence of the indemnity agreement
The GVVA will, at our cost, maintain the cycling track
including repair of the board railings to an acceptable standard for
international cycling tracks. We are prepared to enter into negotiations with
regard to the following issues:
- repair the infield turf to eliminate “trip and fall” risk
- installation of a 4-5’ chain link fence (with an enclosed area for
bleachers and an announcers booth)
The GVVA respectfully submits that a strategic plan for the future of this facility needs to be developed with broad input from user groups and from the general public. There are many creative options that could be considered for this facility, all of which are completely compatible with maintaining the cycling track and respecting the intent of the legacy from the Commonwealth Games. We see great potential for the future development of cycling at the WSPR site. If given the opportunity, our organization would work with WSPR to develop more cycling programs and events that would provide excellent recreation opportunities for West Shore residents and for athletes from around Vancouver Island.