May 4, 1999

To:Economic Development Committee

From: Joe Halstead, Commissioner Economic Development, Culture and Tourism

Subject:Use of Sponsorship Revenues from Molson's Sponsorship Agreement for the Construction of Water Park Facilities - Ward 19 High Park, Ward 25 Don River

Purpose:

The purpose of this report is to respond to the Economic Development Committee's request (November 16, 1998) for a report on the provision of funding for the construction of new Water parks in the City of Toronto.

Funding Sources, Financial Implications and Impact Statement:

The revenues obtained from this sponsorship agreement will partially offset the cost of two Water Park facilities.

Recommendations:

It is recommended that:

1. the costs for the design and construction of two Water Parks, located at Regent Park and at a new park site in the King Street and Dufferin Street area, be partially offset from revenues obtained from the 1999 Molson's Breweries Sponsorship Agreement for the sale of "Toronto's Own Beer"; and

2. appropriate City officials be authorized and directed to take and directed to take the necessary action to give effect thereto.

Comments:

At its meeting of November 16, 1998, the Economic Development Committee requested that the Commissioner of Economic Development, Culture and Tourism report on the feasibility of allocating revenues from the proposed sponsorship agreement between the City of Toronto and

Molson's Breweries for the sale of "Toronto's Own Beer" for the construction of new water park facilities in the City.

The proposed sponsorship agreement was approved by City Council at its meeting of February 2, 3 and 4 , 1999 and has been signed by both parties. Revenues from this agreement, in the amount of $150,000, are currently available to offset the design and construction of a water park facility in the Regent Park Housing Complex (in the Dundas Street and River Street area), which would involve retrofitting an existing wading pool to a water play facility.

The construction costs of another water park facility, in a new park site in South Parkdale (in the King Street and Dufferin Street area) would also be partially offset by these sponsorship funds. The remainder of the costs for this facility would be offset by donations obtained from local businesses in the area.

The use of these funds for the development of two water park facilities would be very beneficial to the local communities they would serve. The numerous requests for these types of facilities could not be met in the 1999 Capital Budget Program. Six of these facilities are funded in this year's budget, none of which will be located in the former City of Toronto. These two projects will serve two older neighbourhoods characterized by high densities and a high proportion of families with children.

These facilities could not be built otherwise and would have to be included in the list of projects to be considered in next year's Capital Budget. If approved, these projects would be expedited so they would be open in time for the 1999 summer season.

The five year sponsorship agreement with Molson does not stipulate how the revenues generated from the sale of "Toronto's Own Beer" must be spent, nor does it require any on-site recognition of Molson's Breweries as sponsor. The Department will report to this Committee on the best use of these funds on an annual basis for the duration of the agreement.

Conclusion:

It is recommended that the revenues obtained from the Molson's Sponsorship Agreement be allocated to two water park projects, one in Regent Park and the other in South Parkdale (in the new park located near King and Dufferin Streets). If approved, these projects, which are very beneficial to their communities, will be expedited so they are operational in time for the 1999 summer season.

Contact:

Frank Kershaw

392-8199

Joe Halstead, Commissioner

Economic Development, Culture & Tourism