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· Construct a facility that is multi-purpose and has the flexibility to meet the varying needs of the public and the tourism/economic development markets

· Create a facility that that will enhance the long term economic development and growth of a vibrant progressive municipality

· Operate a convention and civic centre that will operate at a breakeven basis within five years

To create a focal point in the community that elicits pride among Lacombe residents, gives recognition to the town from those that visit, and addresses social needs of the community. This will be accomplished through a multi-purpose facility that has the synergies and flexibility to meet the varying needs of the community and be attractive to private events. By placing complimentary venue options within close proximity, including public leisure, business and tourism zones, improved economics and affordable access will be provided. There will be a commitment to the high quality standards and customer service attitudes that are consistent expressions of the historic community of Lacombe.

1.3 Keys to Success

· Multi-use Facility - one that the public supports and views as important to meeting community needs in the present and in the future

· Location - one that is visible, accessible and has aesthetic potential

· Professional & Experienced Management - a marketer/promoter and a facilities manager

· Motivated Staff - friendly and attentive service from a well-trained staff

· Quality - both building construction and maintenance as well as excellent service quality

· Tight Cost Control

· Strategic Marketing Plan - balancing needs of market segments and attracting users on a regular basis by creating an operating mechanism that provides the foundation for self-sufficiency within five years and provides affordability to the community users and generates profit centres from the economic development/tourism markets.

2.0 Company Summary

The Town of Lacombe is a growing, vibrant community. It takes pride in being one of the oldest centres in Alberta with its unique Edwardian architecture prevalent in the community. Future planning in all aspects is the order of the day. Town officials have begun pre-planning service infrastructure for the anticipate growth over the next 10 - 15 years. Area structure plans are in place for the North Area, South East Area and West Area due to potential growth. Plans such as the Pavement Management System, Water Main and Sanitary Sewer Replacement Plan and Sidewalk Replacement Plan, to name a few, provide a systematic approach to expanding and maintaining the existing infrastructure.

Specifically, in recreation and parks facilities such as Michener Recreation Area and Kinsmen Ball Park have been developed and provide some of the best playing fields in Central Alberta, if not all of Alberta. Since the construction of the Kinsmen Aquatic Centre the arena and curling rink have been upgraded to complement the standard of the pool aesthetically and functionally. Operationally the Recreation Services Marketing Plan has been in place for over 2 years with some positive impacts in moving the department to a more entrepreneurial approach and achieving operating efficiencies.

The corporate culture of Lacombe is that of being in the lead with new approaches, a standard of quality and long term planning in all aspects of the Town's operations. This places the Town in a position of preparedness to embrace city status when in reaches the population threshold in the next 5 years.

The Lacombe Memorial Centre was constructed in the mid 1950's. A large community hall for a community of the then population of 2854 was an ambitious move in that day. The Lacombe Memorial Centre has served the community well for the last 50 years. Similarly the new facility shows a vision for a growing community with a variety of needs. The vision of this facility will break somewhat from the traditional mode of operation by enticing the small conference/convention clientele and provide value added service to weddings/banquets. It will generate profit centres which will give the local community a superior facility at an affordable cost. A community facility operated with an entrepreneurial approach such that it will be self-sustaining is consistent with the progressive and forward thinking nature of Lacombe -- creating a vision for the future for the long-term benefit of the community.

2.1 Facility Ownership

The Lacombe Civic Centre will be operated by the Town of Lacombe and fall into the area of recreational/cultural facilities. In a recent survey, the public expressed the preference to have the Centre operated by the Town of Lacombe.

Additional support for the building will be sought from corporate sponsorship, joint ventures and various community group contributions.

2.2 Start-up Summary

Start up expenses will encompass three primary categories:

1. Land acquisition, site preparation, facility construction, furnishings and equipment

2. Pre-opening costs including human resource functions and advanced marketing of the facility

3. Allocation of operating funds for the first year of operations

2.3 Civic Centre Location and Facilities

Location is one of the key success factors of the facility. The criteria used to determine a suitable location for the Civic Centre, includes a 20 acre site that is visible, accessible and has aesthetic potential. The conceptual design of the facility requires 10 acres for building footprint and adequate parking. The additional 10 acres would accommodate future additions to the facility which might include hotel, ice surface, field house or other recreation and/or tourism facility. To capture the economic/tourism market, visibility from Highway #2 and easy access are paramount.

Three sites have been identified as potential choices. The first site is located adjacent to the west side of the Lacombe Golf and Country Club; the second at the interchange of Highway #2 and #12 northeast of the clover leaf; and the third is within the southeast section of town. Of the three sites, the first site adjacent to the golf course has the most potential of meeting the criteria. The second site at the Highway #2 interchange best meets the needs of the visibility and accessibility criteria. The third site in the southeast quadrant of town best meets the community accessibility criteria but does not have the visibility needed to attract the economic development/tourism market.

Final site selection will be dependant on future decisions of council, further site analysis and the willingness of private landowners to sell the required land.

The building, based on conceptual drawings approved to date, will be approximately 85,000 square feet encompassing a large auditorium capable of holding 990 people in a banquet setting format or 1200 in performance seating format. The auditorium can be partitioned to hold as many as four events simultaneously. A formal theatre has a seating capacity of approximately 500. The field house accommodates a large 22,000 sq. foot display area capable of holding 1,700 people in banquet seating or 2,700 people in performance seating. The fitness center has a men's and ladies' changing rooms, aerobics area, weight room and whirl pool. The operation of the fitness centre would likely be handled through a tenant. Miscellaneous small meeting rooms capable of holding up to 150 people for smaller events provide additional space for conference breakout rooms or smaller social functions.

The total capacity of this facility, if all venues are fully utilized, is over 5,000 people. Food service for this facility will come from a fully functional commercial kitchen. It is hoped to have a catering operator use this kitchen on a fulltime basis, thereby improving the promotional package to potential users.

3.0 Services

The Lacombe Civic Centre will be created to provide an inviting atmosphere of high quality for both public functions and conferences/conventions. Efficiency standards would allow for an acceptable price range for public events and creates opportunity for revenue generation. A facility built with only the public needs addressed would be a standard facility and continue to be a drain on the taxpayer. The type of spaces in the Civic Centre and their flexibility creates synergy that generates revenues designed to subsidize the community events. This facility gives the community a superior facility that in the medium term will be self-supporting and not a burden to the taxpayer.

Our primary service will be offering space for rent for various private and public functions. We will be catering to groups as small as a few individuals requiring a small meeting room to as large as a small convention with several hundred delegates or a concert where over a thousand people may attend. The venue will cater to varied uses including weddings, staff parties, cultural events, trade shows to name a few possibilities. This requires a flexible approach to serve these users. Floor space, fixtures, and staffing must be flexible in response to the differing needs of each event or meeting.

3.1 Service Description

In a recent study of the residents of Lacombe and area, community organizations prioritized their additional space needs in the following order: social/banquet/meeting, fitness/wellness, and culture/arts/theatre spaces. "Affordable access" was a reoccurring theme of Lacombe user groups who have to date enjoyed relatively low user rates for the Lacombe Memorial Centre and are concerned about the ability to gain affordable access if new facilities are built. "Partnerships" will be necessary to achieve new facilities and maintain access at price levels that residents can afford. Also the multi-function aspect of the building creates opportunities for synergy of uses and a concentration of users that creates value added opportunities to improve revenue for the public and private sector alike.

Table 3.1 displays the market facility synergies of the various facility segments included in the proposed Civic Centre design.

Tables A1, A2 and A3 in Appendix A: Marketing Segmentation by Type of Activity provides an outline in detail of the market segment by type of activity and associated user groups.

These tables were developed based on the study conducted by Randall Conrad and Associates Ltd. as part of the community input portion of the Community Centre Feasibility Study provided by Bearden Engineering. This full study is represented under Appendix “D”: Lacombe Place – A Centennial Project.

Table 3.1

Market Facility Synergies

Market Facility Synergies
	PUBLIC				ECONOMIC DEVELOPMENT & TOURISM
Primary Users Facilties	General Public	Local Public Arts & Culture	Minor Sports Groups	Local Agencies & Service Organizations	Meetings & Seminar Market	Business Travellers	Vacation Tourists
Banquet/ Social Meeting
Culture & Arts
Multi-Use Theatre
Fitness Facilities
Multi-Use Arena Spaces
Food & Beverage

3.2 Competitive Comparison

The competition in the field of facility rental in Central Alberta is considerable. However, it should be noted that not all entities address that same target markets. While overlap occurs, most facilities address specific markets determined by a variety of factors including size of function and geographical convenience.

Competition with the proposed facility would be on two fronts: from other public facilities and from the private sector. Other public facilities that provide meeting rooms and small banquet space are considerable. Every community hall in the region, from those in the smaller urban municipalities to rural community halls, could be considered a potential competitor. Within the town boundaries halls such as the Legion and Kozy Korner would compete for the small banquet/meeting room clientele. School facilities potentially could provide competition for meeting, activity and performance space but the demand on school facilities is near capacity and the availability of school space has declined over the last few years. In terms of larger functions the Lacombe Memorial Centre is the only facility in the community that can accommodate over 200 people.

In the private sector local facilities such as the Greenway Inn and Lacombe Golf and Country Club would compete with the banquet and meeting room market but the size of the banquet room would cater to small to medium size functions. For larger banquets, meetings and the conference/conventions/trade show market, facilities in Red Deer would be the main competitors. It can be said with some degree of certainty that Red Deer has been able to service virtually all conventions held in Central Alberta because of the city's location and the fact that it has the physical facilities to hold such events. The two most notable facilities are the Westerner and the Capri Centre.

There is a niche market that Lacombe could pursue in this area that would target the smaller conventions and conferences that cater to delegates of less than 500 people. Lacombe offers a different venue than the larger centers which incorporates a small town atmosphere, yet close commuting distance to Red Deer. Being adjacent to Highway 2 creates easy access for those traveling from the north or the south. This will be the Lacombe advantage when promoting our location to potential convention and conference customers. The one potential drawback to Lacombe will be limited availability of hotel rooms. However, the presentation of this facility plan and architectural rendering will likely stimulate interest from the hotel industry.

3.3 Fulfillment

The Town of Lacombe will require a new Civic Centre capable of meeting the needs of its present and future residents. The existing facility is reaching 50 years of age and has limited physical space and practicality when required to hold events. The new facility will require flexibility, expandability, and a uniqueness which will encourage public use of the building. The challenge for the Town is to operate the facility in such a manner that additional taxation is not required. The challenge for the operators of the facility is to find the right blend of public users versus private sector. The obligations placed upon us as an organization to fulfill the commitments to our customers is to provide a facility which is properly setup, clean, and maintained for the duration of the event. This includes ongoing cleanup and support to event participants. After the event the facility will require turn around time in anticipation of the next user. The wide range of different events held in this facility will require adequate staffing, proper equipment and flexible work schedules which will very likely mean a midnight shift as usage increases. Since the promotions and operations of such a facility will likely fall outside the circle of knowledge of the present staff, it will become necessary to hire a manager trained in the entertainment and hospitality industry. A person that has worked for a convention/conference center would be a likely candidate.

3.4 Technology

The primary technology that will contribute to the success of this endeavor is proper building design features that will provide the operator with the best efficiency possible from the working systems such as mechanical and lighting.

Other considerations in the design should include wiring for video conferencing and providing the customer with the necessary equipment for electronically produced presentations.

The Town's presence on the internet will assist in the promotion of the facility and e-commerce such as internet bookings. Local computer software will be used for facility bookings, tracking usage, developing marketing databases and the accounting function.

3.5 Future Services

Future growth projections, and projected community organization growth indicates the need for a larger facility to be developed to keep pace with anticipated municipal growth. The long-term future of the facility will be enhanced by acquiring a 20 acre parcel of land to ensure the expandability for complementary uses in the years to come. The Lacombe Memorial Centre has served the community well for the last 50 years. The vision for the Civic Centre is that is would serve the community for the next 50 years by enhancing services presently provided by the Lacombe Memorial Centre and meet new untapped markets in the private sector that would be a benefit to the economic development and tourism sectors, making Lacombe a destination area.

The evolution of the use of the building from a community service based center to a conference and convention centre will be methodical. It would be hoped that in its first year of operation the centre would hold approximately 30 weddings, 7 conferences/conventions/trade shows, 10 major special events, and 50 miscellaneous uses of varying size. The miscellaneous events would likely be small and therefore revenue potential would be limited.

Four main areas projected to generate revenues to operate the Civic Centre are conferences and conventions; weddings, parties and dances; concerts, theatre and musical productions; and the accompanying revenue from the food services provided by the resident caterer.

The projected number of these events is outlined in Table 3.1.

Table 3.1

Projected Number of Events by Year

	Year 1	Year 2	Year 3	Year 4	Year 5
Conferences/Conventions	7	10	12	15	18
Weddings/Parties/Dances	30	40	40	50	60
Concert/theatre/Musical Productions	10	12	12	12	12

These projections anticipate the conference/conventions in the months of January to May and September to November would be approximately 1 event in each month in the first year and growing to 2 - 3 per month by the fifth year. Weddings/Parties/Dances would increase from the present rate at the Lacombe Memorial Centre of 30 per year to double that by the fifth year of operation. Concert/theatre/musical productions held would start at 10 per year to an average of one per month.

Revenue from other bookings would steadily increase over the 5-year period.

The Fitness facility would be leased to a private contractor.

The ability of the Town to reach these projections is enhanced by its presence on the Internet and its potential for attracting new customers.

Future facility success will be contingent on constant promotion and acting on any booking gaps quickly. All areas of the facility would be available for booking for events, parties, weddings, conferences, conventions, funerals etc. This includes the formal theatre, which could be booked for not only live theatre and musical performances but also seminars, parties, and weddings.

A balanced process for facility booking will need to be implemented. Care would need to be taken to book events such that the smaller events do not adversely affect the potential for the larger revenue generating events and the operation ability to provide a full package venue. Searching out new events and conferences will be an ongoing requirement and the sales manager of this facility will constantly be making contact with various organizations to secure commercial events directly or through prepared marketing materials. This will include concert promoters as well.

4.0 Market Analysis Summary

“There is clearly broad support for the development of a new facility to meet community demand in Lacombe. The most often used term was “multi-use”. There is consensus that the Lacombe Memorial Centre can no longer serve the existing needs of the Town and area. Future population and local organizational growth projections indicates the need for a larger facility to be developed to keep pace with anticipated municipal growth.

Community organizations, the Chamber of Commerce, and Economic Development all express strong support for the development of a new facility and are prepared to participate and/or conduct fundraising initiatives on its behalf.

Lacombe has made a calculated decision to accept growth and in doing so, carefully approves new residential subdivisions in balance with commercial and industrial subdivisions. In addition, the business community along with the economic development department have created an exciting vision for a major tourism and economic generator that builds upon the assets of the region and strengthens Lacombe as a unique destination in Alberta’s Heartland.” (Source: Lacombe Place – A Centennial Project by Randall Conrad & Associates, See Appendix “D”)

4.1 Market Segmentation

The Lacombe Civic Centre has been designed with the intent of meeting existing and future community needs as well as expanding on the potential users. Market segmentation will be based on the types of activities hosted in the facility and the various groups and organizations that might find the facility attractive for their events.

The Lacombe Civic Center is designed to provide a multi-use function that capitalizes on combined public and private sector access. These two primary segments each have individual target markets. The primary function of the Center is to provide services to the Public Sector which can be divided into four markets: The General Public; Public Arts & Culture; Sports Groups; and Local Agencies and Service Organizations. The second primary segment, Economic Development & Tourism, has three target markets: Meetings & Seminars; Business Travelers; and Vacation Tourists.

Table 4.1

MARKET SEGMENTATION
PUBLIC	ECONOMIC DEVELOPMENT & TOURISM
General Public	Meetings & Seminar Market
Public Arts and Culture	Business Travelers
Minor Sports Groups	Vacation Tourists
Local Agencies & Service Groups

4.2 Target Market Segment Strategy

The target markets were determined based on the recent survey conducted by Randall Conrad & Associates Ltd. The following two graphs highlight the findings. The first graph reflects responses from a pre-determined set of choices and the second reflects responses from an open-ended question.

Graph 4.1

Graph 4.2

"In Lacombe, residents have made it very clear that they support the "Lacombe Centre" project as long as it can be developed without a significant increase in tax dollars and as long as public use is affordable. Based upon both short and long term demands for large scale social / banquet facilities, quality fitness areas, performing arts spaces and arenas, this would become a challenge with the resources at hand. However, through a well planned strategy of staging development of traditional public program spaces along with the targeted economic infrastructure goals of agricultural interpretive facilities, convention services and hospitality / tourism resources; the project begins to appear most viable." (Source: Lacombe Place – A Centennial Project by Randall Conrad & Associates, See Appendix “D”)

4.2.1 Market Needs

The needs in the market place were determined from two sources including the assessment conducted by Conrad as well as feedback received by Lacombe Recreation Services.

A. PUBLIC SECTOR:

1. General Public:

Based on feedback Recreation Services receives from Lacombe Memorial Centre users as well as collaborative data from a recent needs assessment, indicators are that the Lacombe Memorial Centre no longer adequately meets the needs of the community. A log of facility requests, particularly on weekends, would indicate that if space were available more events could be booked. During the prime wedding months, May through September, the Lacombe Memorial Centre is usually booked a year or more in advance.

The Lacombe Memorial Centre is no longer large enough to host large events such as Remembrance Day Services and the Music Festival. The new Civic Centre would be able to accommodate these and larger events.

The needs assessment identified fitness facilities as a priority. The fitness facilities at Canadian University College have limitations due to the atmosphere created by a primarily young adult client and restricted operating hours.

2. Public Arts & Culture

A few cultural events occur in the community but due to size constraints, the auditorium in the high school is not capable of hosting events that require a larger audience to finance a major performing arts group. Both the theatre and main auditorium of the new facility will provide quality spaces for these cultural events. The growth of Lacombe and projected trends would indicate that interest in the cultural areas has the potential for growth.

3. Local Agencies & Service Organizations

A portion of Conrad's study was compiled from findings on a survey for input from community organizations that are current and continuing users of facilities. Twenty-three organizations representing over 3000 users completed surveys. This represents 35% of the population of Lacombe. These surveys, in combination with specific user group meetings, represent a significant portion of the public that is involved in activities supported by community facilities. The organizations responding to these series of questions indicated usage of over 5,500 hours. While all said that these facilities were adequate, each indicated that their growth in membership or program development was limited by either larger space needs, or more available program time. Eighty percent of the organizations responding indicated that their existing space was too small to accommodate program use at peak participation times. Requests from organizations regarding their ideal facility were similar in nature and can be accommodated in a multi-use environment.

B. ECONOMIC DEVELOPMENT

With the growth of Lacombe, the expanding petrochemical industry in Central Alberta and the economic upturn of the Alberta economy a niche has emerged for value added agriculture, tele-conferencing facilities, meeting facilities for the local oil and gas sector and a host venue for numerous local service clubs, businesses and agencies that are affiliates for larger province-wide and national organizations.

4.2.2 Market Trends

The following trends will have an impact on the success of the Civic Centre:

· Expanded interest and subscription to the arts as the baby boomers leisure time and disposable income increases

· A growing youth/young adult population (echo generation) will provide the audience for selective major entertainers

· There is a potential market for small conference/conventions

· Funding for major Alberta Centennial projects is anticipated from the Alberta Government at a time when the Provincial is realizing substantial surpluses

· The general promotion of fitness and healthy activities will continue to increase the demand for fitness facilities and space for sport/recreation activities

· Organizers of wedding and conference/conventions are willing to pay for the extra service that will save time in the organization of the event and provide a one stop for all services

· Trends for indoor ice facilities show continued participation

· Indoor soccer will emerge as a demand in Alberta's smaller urban centers as the growth in interest spills over from Red Deer, Edmonton and Calgary

See “Recommended Facility Program “in the Lacombe Place – A Centennial Project by Randall Conrad & Associates, in Appendix “D” (Section 6, page 14) for a table displaying the integration of facility type, current demands and future demands (trends/growth), and economic/tourism development goals/requirements.

4.2.3 Market Growth

Facilities that are built today will exist and support the activities of residents forty and fifty years from now. Lacombe has experienced steady growth over the last ten years of 2.3%. The high projection of close to 3.5% annual growth is a likely scenario for at least the next five year. The annual increase from 1999 to 2000 was 7% of which 4% was attributed to the newly annexed sections. It is likely Lacombe will reach 12,000 residents within the next ten-year period -- a 40% increase from the 1999 figure of 8,500.

The leisure market for Lacombe extends into the district and encompasses County of Lacombe residents and residents from adjacent towns of Blackfalds and Bentley. These areas represent 3,000 additional leisure facility users with a growth rate of 2.5%. This will provide a fringe market of 4,000 within the next ten years.

“Population growth will advance the leisure market for Lacombe facilities from its current level of approximately 11,500 to approximately 16,000 by the year 2005 and perhaps 20,000 by 2010.” (Source: Lacombe Place – A Centennial Project by Randall Conrad & Associates, See Appendix “D”)

These population projections suggest the current demand for space for larger functions and better quality space will continue to be ever present in the future. Married with a strategic marketing plan and an entrepreneurial operational approach the Lacombe Civic Centre will provide a excellent facility to meet the long term needs of the community.

4.3 Competition

Direct competition for public facility use within Lacombe is limited to the smaller meeting and banquet facility. These include halls such as the Legion and Kozy Korner and to some extent school facilities. None of these address the multiple space demands of a larger event. From a regional perspective, many communities have centres that accommodate up to 350 people.

Private sector competition within Lacombe is restricted to smaller facilities such as the Greenway Inn and the Lacombe Golf & Country Club. The Red Deer market presents numerous competitors in the smaller market, but only two emerge as competitors for the proposed Civic Centre. The Westener and the Capri Centre are attractive to their customers because of their capacity, flexibility of space allocation, food and beverage service, central location and ample parking. An examination of the strengths and weakness of each helps reveal the niche for the Lacombe Civic Centre.

The Westerner

Strengths

Large scale conferences/conventions/trade shows are their area of expertise
Longevity of years of operation and favorable reputation in market
Space houses large item venues as well as multiple meeting rooms
The Centrium provides multiple utilities and market exposure/recognition
Food/beverage services at an equitable quality to cost ratio are available
Ample parking
Proximity to major highway
Camper hook-ups
Reasonable proximity to hotel/motels and food establishments
Qualified, efficient, helpful staff

Weakness:

Pavillions and meeting rooms are aging and are not aesthetically pleasing
Facilities are spread out and internal layout is inconvenient
Best suited for large scale functions
No hotel/motel facilities or food establishments on site

Capri Centre

Strengths:

Conferences/conventions/weddings are their expertise
Longevity of operation and favorable reputation in market
Regular renovations and upgrades of facility have kept it current and aesthetically pleasing
Food and beverage services available as well as other in house food establishments
Hotel accommodations within same service area
Flexibility in pricing structure to attract events that would also use hotel facilities
Trade show area, auditorium with stage
Qualified staff
Central proximity within Red Deer

Weaknesses:

Lack of immediate access from major highway
Some reputation of fluctuating event charges, with high cost perceptions
General hotel clientele parking creates competition for convention parking
Narrow hall access for breakout meeting rooms creates foot traffic congestion
Construction materials between meeting rooms allows for sound bleeding

5.0 Strategy and Implementation Summary

This section will be expanded based on future research, analysis, and recommendations of the professional marketer/promoter.

5.1 Marketing Strategy

A. Public Sector:

1. General Public

There are presently a number of community events that occur on a year to year basis such as the Remembrance Day Service, Music Festival, Carol Festival, Children's Christmas Party and annual banquets of various community groups. These community events will be accommodated at the outset of each operating year and emphasis will be placed on filling the remaining space with weddings and conferences/conventions.

The financial success of the Lacombe Civic Centre will be contingent on offering a package of facilities and services that provide convenience to wedding groups and conference/convention hosts. A "one-stop shopping" approach will be implemented. For a set fee, wedding parties would be provided with a banquet hall, the option to use the theatre for the wedding ceremony, and a room for gift opening on the following day. Catering for the banquet would be provided by the resident caterer and beverages would be provided by the Centre at a per drink fee or corkage fee with the Centre providing the bartenders. The key to attracting weddings will be the convenience of providing the majority of the wedding parties needs with one vendor.

2. Public Arts and Culture

The auditorium and theatre provide a venue for cultural events of varying sizes. Attracting audiences to performances at the facility will be a challenge over the initial five years as marketing will need to cultivate a relationship with cultural organizations locally and in the region that could provide a series of performing arts events. Existing theatre companies would be approached to work with the Town to develop a theatre following at the Lacombe Civic Centre. A theatre company or companies may be approached to use the Civic Centre as their base. Creative cooperative approaches may be necessary including arranging a percentage of ticket sales with the company and including meals with performances to increase the Civic Centre revenue from the caterer. In the initial stages of operation, Recreation Services may need to be the sponsoring agency to initiate performing arts events as well as cultivate a theatre/performing arts event following and draw audiences from Central Alberta. Attracting a theatre company to base their operations in Lacombe may be possible and may be a mutually advantageous arrangement while the audiences build.

B. Economic Development and Tourism:

Similarly, for conference/convention customers, the Civic Centre can provide space of various sizes and types (meetings rooms or theatre) for large or small sessions, display space in the field house or auditorium, catering services and bar service as outline above for the weddings as well as drop in access to the fitness centre for conference participants. A key factor in promoting small conference/conventions to Lacombe will be to hire a professional promoter. As well, attracting a hotel to build in close proximity will be important. Value added services will be examined such as providing and setting up booths for trade show use.

Blending and allocating public and private sector space needs:

Weddings would primarily use weekend times in the months of May through early September. Conferences/conventions would be directed to early and mid week time slots in the months of September through May.

Once the major community events, weddings and conferences/conventions are accommodated the remaining space would be marketed to smaller groups and events during the open weekend and weekday time slots. Events such as meetings, small seminars, sport activities, business parties, would fill the remainder.

5.1.1 Pricing Strategy

A penetration price strategy will be used to address a competitive, mature market. A fine balance will need to be maintained to provide quality service for rates slightly less than industry averages. Once some market development has occurred, services and rates can be expanded.

Conferences/Conventions/Trade Fair

Conference rates for the entire faculty for an entire day would be $2,000/day which would include the entire facility. For trade fairs the Civic Centre would provide the space, equipment and set up of display booths at $100 per booth.

The industry standard for trade fair booths is $150/booth with the set up. Food costs in hotels range from $25.00 - $30.00 /plate. The pricing noted above would be competitive in the Central Alberta market and be compatible with the penetration pricing strategy.

Weddings/Parties/Dances

Weddings:

A wedding of 200 - 250 people would cost $700. The fee includes half the main hall, the option of using the theatre for the ceremony, catering, bar service and a room to leave presents for a gift opening session on the following day.

Other Functions:

The cost of the main hall would depend on the configuration selected -- 1/2, 1/3 or 1/4.

Meeting Rooms

$50/room per day for each meeting room

Bar service

The Civic Centre would have exclusive rights to serve liquor. Renters will not be permitted to acquire a liquor license. The customer would have the choice of one of the following options:

Host pays for drinks, Civic Centre provides bartender at $3.00/drink
No host bar, Civic Centre provides bartender at $3.50/drink
Host pays for drinks and the bartenders at a corkage fee of $5.00/person

Catering Service

The Caterer will have exclusive rights to providing food services. Renters will not be permitted to bring in food. A selection of menus would be provided to the customer in the $12.00 - $15.00 per plate range for dinner meals. Luncheon meals would be in the $8.00 - $10.00 range.

Fitness Centre

The Fitness area would be leased to a private organization for an annual fee of $80,000 per year.

5.1.2 Promotion Strategy

The promotion strategy for the facility would address both public and private sector marketing mechanisms. The promotional blend will create a unique image that both highlights the Centre’s capabilities and resources as well as draws community support and interest. The suggestions below represent initial suggestions that would be expanded and developed as the specifics of the Centre are determined.

Advertising:

Use cooperative advertisements incorporating the Centre within Town marketing pieces
Data base development of potential customers for direct mail
Web site for Town will include a link to a full Centre site and service profile
Target publications that address potential business/conference customers
Selective use of billboards, such as in the West Area
Full logo, slogan and image development to be produce on full slate of promotional materials and sales aids

Publicity:

Capitalize on word of mouth advertising by reaching area leaders in both public and private arenas
Sponsor events that have a regional or provincial appeal to place the Centre in the public eye

Sales Promotion:

Represent Centre at trade shows which are attended by economic development departments, typical trade show customers, etc.

Direct Selling:

Placement of a sales manager/professional promoter that specializes in direct contact with potential customers

5.2 Strategic Alliances

Recreation Services and Economic Development departments of the Town of Lacombe will continue to work together to promote the facility and develop new opportunities.

At the community level, strengthening relationships with various community groups will be advantageous. The Chamber of Commerce is a key group to continue to work with cooperatively. Involvement with the business community in promoting the Civic Centre for seminars, business socials and events is necessary.

Building partnerships with local cultural groups and regional performing visual arts groups will be important in developing the audiences for the various cultural events projected for the Civic Centre.

6.0 Management Summary

The initial management team of this facility will consist of management that is presently employed by the Town of Lacombe. As the opening date of the facility grows closer, it will become necessary to properly promote the facility with a dedicated manager who is trained in the hospitality and entertainment field. These individuals are experienced in dealing with multiple events on the same day and have contacts in the convention industry that could be used to entice people and organizations to the facility.

6.1 Organizational Structure

See Appendix “B” for the organizational chart of the operations of the facility.

6.2 Management Team

For the present moment the management team will consist of the following people.

Ken Kendall, Assistant Chief Administrative Officer

Christina Lust, Recreation Community Coordinator

Calvin Bennefield, Facilities Supervisor

The management team will also require a facility manager/sales person who is capable of working in the public domain and selling our facility to potential users for weddings, parties, conferences/conventions and meetings. This person will actively advertise and promote our facility and will be responsible for the smooth operation of the various functions held in the building.

6.3 Management Team Gaps

The weaknesses at this time are concentrated in the area of public service versus private enterprise. All three members of the management team are longtime public sector employees whose philosophical focus is public service. To change from a public service perspective to a free entreprise/profit motivated orientation may not be an easy transition. The three members of the team also do not have hospitality and entertainment training or experience. This means that the present staff knowledge base in the convention industry will have to be painstakingly developed through trial and error. The implications of this shortfall in expertise will have a direct effect on the operations of the facility. The expectations of operating at breakeven or a profit will take longer to achieve or in a worst case scenario may never be achieved.

The Town of Lacombe should weigh the pros and cons of retaining a professional marketer. The assets brought to the facility from such an individual could reduce turn around time for the building and bring about a breakeven or profit situation. The disadvantages of such an individual can be their profit-focused motivation. This could cause challenges because public service functions and smaller poorly funded user groups could suffer because of the allure of booking facilities to groups that can generate profits. If the profit motivation overpowers the public service requirement for the facility the building ceases to be considered a community centre or meeting place.

Generally, in the industry a hospitality manager is an individual with good sales skills and very good public relations skills. They are able to work with multiple groups ensuring that their particular function runs smoothly and that all of their needs are met. The cost of such an individual is generally based on a flat rate per month plus a percentage commission based on gross revenues to be received from each event. An expected flat rate salary for this particular position would be in the range of $1500/month and a commission in the 10% range. A properly recruited individual already has experience in the business and generally has a very good network of contacts from which to call upon to help book the facility.

6.4 Personnel Plan

In the initial years of operation it is proposed that the facility will need staffing levels including three fulltime employees and four part-time employees. The facility will require a hospitality manager who will be paid approximately $1500/month plus 10% commission. Expected total salary using combined flat rate and commission would be approximately $ 45,000 - $50,000 per annum. The advantage of commission fees is the motivational factor and only providing remuneration for business generated.

7.0 Financial Plan

Two alternative financial plans are presented, each reflecting the first five years of operation, but based on differing revenue bases.

Plan A:

Identifies the Town of Lacombe as an operating entity similar to that of a hotel. Rooms will continue to be rented and a lease agreement with a caterer will be obtained. The Town would also take on the additional responsibility of display booth set up and take down for convention display areas and hold a liquor license for the facility which will be a new revenue source for the building.

Plan B:

Revenue would be acquired from room charges and a lease agreement with a permanent caterer as the sole source of revenue. This would be a more familiar process that the Town has used in past operations with the LMC and the arena concession.

In Plan B, when dealing with a customer for a conference or a wedding, the primary task would be with booking the required rooms and indicating that their sole food source would be our on site caterer. In the Plan A when dealing with a conference organizer or a wedding party, management would be booking rooms, indicating the sole source of food will be the on site caterer, and controlling the liquor sales with the three following options:

1. Host pays for drinks, Civic Centre provides bartender at $3.00/drink

2. No host bar, Civic Centre provides bartender at $3.50/drink

3. Host pays for drinks and the bartenders at a corkage fee of $5.00/person

Conference organizers will be offered the display booth service which includes set up and take down of display booths. The charge would be $100 per booth for this service.

The profit potential in Plan A of the business plan would be considerable with the additional dollars coming in from local sales. The projected figures represented in the financial analysis (See Appendix “C”) show revenues which are much healthier than the traditional approach to operating.

7.1 Important Assumptions

The business plan is based on the following important assumptions:

Staffing costs will be as follows :

Hospitality Manager $50,000

Building Maintenance I position $30,000

Building Maintenance II position $25,000

Part time staff of 4 @$8/hr each $25,000

Total Personnel Costs $130,000

There will be a steady increase of events and bookings as outlined in Table 3.1

7.3 Key Financial Indicators

It is proposed that the key to success in the yearly operation of this particular facility would be the need to control all aspects of the functions that occur in the building. Aggressive sales by a person specifically hired to promote the building will be necessary in order to cover operating expenses. It should be realized that as facility usage begins to increase operating expenses will as well. However, the focus of the sales department will be on conferences and conventions, offering wedding services as a small profit centre. There will also be a requirement to provide not-for-profit events on specific days throughout the year for the community. The growth of business in the facility must increase initially by at least 20% per year for the first five years. If the reputation of the buildings and its staff is exceptional to those who use it then growth should increase by 10% per year for the second five-year term.

Business Plan

Table of Contents

1.0 Executive Summary

Table 3.1

Graph 4.1

The Westerner

Strengths

Weddings/Parties/Dances

Meeting Rooms

Bar service

Catering Service

Fitness Centre

Plan A:

Plan B: