Corporate Report Report from Parks, Recreation and Culture Services, Director Date of Report: January 4, 2016 Report Number: PRCS-023-2016 Date of Meeting: February 8, 2016 File: 35.60.20 Subject: Niagara Grape and Wine Festival Fee-For-Service Renewal Recommendation That Council direct staff to enter into an agreement with the Niagara Grape and Wine Festival for the provision of services associated with the annual Festival at a rate of $50,000 per annum plus in-kind fees as indicated in the Fee-for-Service Agreement to the maximum amount shown therein with the understanding that the Wine Festival is responsible for all City related costs over and above for a period covering the 2016, 2017 and 2018 Festivals; and That the PRCS be authorized to disburse $50,000 to the Niagara Grape and Wine Festival for the 2016 festival after the said agreement has been executed; and That current line of credit guarantee be maintained for a one year period ending May 1, 2017, and That the 2017 and 2018 disbursements, subject to Council review, be conditional upon satisfactory reports back to Council; and Further, that the City Solicitor be directed to prepare the necessary documents and bylaws. FORTHWITH Background Since 1998, City staff have negotiated and implemented a fee-for-service agreement between the Niagara Grape and Wine Festival (NGWF) and the Corporation of the City of St. Catharines. The current 3 year agreement expired on December 31, 2015. During last years festival funding approval, Council directed staff to work with the Niagara Grape and Wine Festival to come up with a timeline to remove the City as the line of credit guarantor. These agreements have sought to increase the overall economic impact of the NGWF by requiring festival organizers to pursue specific organizational, marketing and event goals in order to receive partnership funding from the City of St. Catharines. Each year, Report Page 1 of 6
the Corporation of the City of St. Catharines has provided $50,000 in support of the NGWF initiatives. This amount has been included in the 2016 budget prepared by the department. Report The mandate of the Niagara Grape and Wine Festival (NGWF) is to create and promote internationally unique and compelling wine experiences and to leverage opportunities for economic activity and tourism potential of the Niagara Peninsula as a grape growing, wine producing and culinary destination. The NGWF organizers present three popular wine festivals in St. Catharines and Niagara during the year. The Niagara Icewine Festival (Winter), the Niagara New Vintage Festival (Spring) and the Niagara Grape and Wine Festival (Fall), which is the largest of the festivals. Rooted in history and tradition, collectively these events have attracted hundreds of thousands of visitors to our community and region for more than half a century. The Niagara Wine Festival continues to be acknowledged as one of the most well-known and respected celebrations garnering several industry awards including a Top 100 Award from Festival and Events Ontario as well as a Top 100 Event in North America Award from the American Bus Association. The Festival celebrated 64 years of incredible harvest festivities in Niagara this past fall hosting more than 100 events over three weekends including VQA wine and culinary pairings, seminars and live entertainment in downtown St. Catharines and Niagara s largest annual homecoming in Montebello Park. In addition to the annual $50,000 contribution, the city also provides in-kind services recognizing these three events not only contribute to the quality and diversity of community life, but also provide significant opportunities for economic activity and tourism leading to increased employment, tourism visitation and spending, and infrastructure development. The Fall Festival typically has an associated cost that is charged back to the NGWF for use of Montebello Park and other Parks, Recreation and Culture (PRCS) Services including: In Kind Services by Department Parks, Recreation & Community Services Montebello Park Rental $2,500 Park Repairs $2,300 (inclusive of labour and materials) Showmobile Rental for Parade $1,500 Bleachers for Mayors Stomp $1,000 (as required) Total $7,300 The proposed renewal agreement specifies that the charges associated with PRC Services be borne by the Corporation of the City of St. Catharines as part of its Report Page 2 of 6
commitment to the NGWF agreement. It should be noted that the values provided are the maximum amount of in-kind contributions. Line of Credit A line of credit guarantee was approved by City Council at its meeting held on July 13, 2009. The issuance of a line of credit guarantee is considered to be a financial commitment of the City. However, there is no direct cost to the City for providing this guarantee unless the organization defaults on its obligation at which time the City could withhold an appropriate portion of any City community investment as outlined in the feefor-service agreement. Since it is necessary for the NGWF to incur upfront expenses in advance of receiving revenues from partner/corporate funding sources, it is being recommended that the City extend the current line of credit guarantee for a one-year period ending May 1, 2017 at which time festival staff will report back on feasibility of achieving financial independence. Fee-for-Service Agreement Obligations With respect to each programmed event, staff are requesting festival organizers to continue preparing an annual report to staff and Council detailing the following obligations as noted below: 1. To ensure minimum service quality standards the Wine Festival will guarantee that the Parade component receives a minimum of $25,000 funding support. 2. City logo/imagery/promotion to be included in all Marketing collateral (NGWF brochures, signage, web-site communications and links, media packages, press releases, etc.). 3. In the program the NGWF promotes and lists related events held within the City of St. Catharines. 4. The NGWF shall forward tourist requests for St. Catharines/Niagara Region accommodations/site seeing information directly to Tourism Services. The NGWF shall endeavor to respond to all requests about Festival programming and events. 5. The NGWF shall work closely with tour operators, attractions and other tourism businesses in St. Catharines to promote all events under the Wine Festival umbrella. This could include potential trade show participation/collateral in cooperation with Tourism Services and industry partners. 6. The NGWF shall extend invitations to the Mayor and/or members of council and/or staff to attend programmed events throughout the year. 7. The NGWF will continue to promote all 3 Festivals and specifically encourage visitor stays and patronage with local accommodation and tourism partners. Report Page 3 of 6
8. In all media opportunities the NGWF will mention the City and Region and detail activities taking place within the City of St. Catharines. 9. The NGWF shall advertise and promote its events throughout the City, the Niagara region in relevant markets. Wherever possible, opportunities for coordinated and cooperative advertising and marketing with the city departments and industry partners will be pursued. 10. The NGWF will be required to annually prepare and submit a year in review to city staff and present to Council on the festival and contractual obligations, while also outlining future festival plans. 11. The NGWF shall document the following visitor data collection components: visitor inquiries (postal code data), event patronage and registration (postal code data) via ticketing registration, and qualitative surveys. In addition to these general requirements, the fee-for-service agreement requires the NGWF to carry out a specific program or projects in each fiscal year. These initiatives are identified jointly by City staff and NGWF staff, in order to increase the overall economic or tourism impact of the festival. The existing fee-for-service agreement outlines the following specific obligations between 2016, 2017 and 2018. 2015 Festival Highlights Year in Review: 2015 served as another exciting year for the NGWF organizers. BizBash, the leading resource for the event industry, named the NGWF as one of the Top 100 Events in Canada. The Festival Discovery Pass was again a solid success with the program engaging both the 2015 New Vintage Festival attendees as well as the 2015 Icewine Festival attendees. The Discovery Pass allowed visitors to experience wine and culinary adventures at wineries across St. Catharines and Niagara over three weekends. The 2015 Meridian Grande Parade was themed to reflect the addition of Wine Country Ontario s famed Wine Route in downtown St. Catharines. The Harvest Street Party provided the community and visitors an opportunity to embrace one of the region s largest harvest celebration as well as Brock University and Niagara College s homecoming. In partnership with Meridian Credit Union the Grande Parade hosted a pre-show program in front of City Hall and on Ontario and St. Paul Street where Meridian staff and family provided face painting, balloons, popcorn and entertainment. The Meridian Centre also sponsored an appearance by Kurt Browning as the Grande Marshall. Community Cares Annual Harvest Drive along the parade route and the Stomp Out Poverty Grape Stomp generated more than 11,000 lbs. of food and life essentials for the St. Catharines and area community. The festival has again continued to successfully leverage numerous advertising opportunities with multiple stakeholders. The cooperative nature of the advertising efforts has provided joint marketing investments between the City of St. Catharines Tourism division, local accommodation partners and Twenty Valley Tourism. Report Page 4 of 6
Future of the Festival 2016-2108 In 2016 the NGWF will look for opportunities to work with the FirstOntario Performing Arts Centre to enhance cultural programming during the Festivals. Continued support of the FirstOntario Performing Art Centre will be achieved throughout the festivals by leveraging promotional opportunities including but not limited to on-site marketing and thru the Festival website. Festival staff will continue to work with City partners including the Downtown Association to grow wine and culinary programming aimed at driving increased traffic and patronage to the downtown core. Organizers will also seek the opportunity to work with the Meridian Centre staff management group to produce a new signature event in the Festival s programming in 2016 through 2018. The intention is that this will become a regular component of ongoing Niagara Wine Festivals. The Festival will again prior to the Grape Stomp, host the 2 nd Annual Niagara Mayor s Stomp Out Poverty in support of Community Care. The Niagara Grape and Wine Festival will undertake an Economic Impact study based on programming for the renewed three year term. Festival staff will engage and measure the significant economic impact it has on the region, enabling hospitality, retail, and tourism businesses to prosper annually. 2017 In 2017 the Niagara Wine Festival s theme will focus primarily on the Celebration of Canada s 150 th birthday. The Festival will continue to look for ways to partner and promote the FirstOntario Performing Arts Centre and Meridian Centre. The Scottie Tournament of Hearts will be held in St. Catharines in 2017. Festival organizers will promote the significance of that event during the 2017 Icewine Festival. Strategic Planning for 2018-2020 will begin this calendar year including partnership interviews and stakeholder roundtables. 2018 The Strategic Plan will be presented to and approved by the NGWF Board of Directors inclusive of the festivals founding partners. As in years past, festival staff will closely monitor its strategic plan execution and ensure that joint marketing efforts, including cross-promotions, co-branding, cooperative image enhancement, and other cooperative marketing ventures are consistent with the identified goals and objectives. Ideally, this process will result in extended visitation through experiential tourism opportunities tied to the three festivals. Such efforts will reinforce wine festival experience building on the community s brand as a destination. Financial Implications The NGWF disbursement of $50,000 as per a renewed Fee-For-Service Agreement has been included in the 2016 departmental budget submission. Report Page 5 of 6
Relationship to Strategic Plan The Niagara Grape and Wine Festival supports the social, environmental and economic sustainability goals through work with the local farmers to support the successful harvest, and regeneration of crops, creating three distinct festivals with events that draw the community together, encourages local engagement, employment and investment as well as attracting new visitors to the community to enjoy, support and grow our local economy. The recommendations of this report support the following Strategic Plan Goal s identified by Council; Economic Sustainability Develop partnerships to enhance the economic vitality of the community. Social Sustainability connects people, places and neighbourhoods Environmental Sustainability lead in the protection of our environment for future generations Cultural Sustainability Embrace our diversity, and celebrate our heritage and history. Conclusion The NGWF continues to have significant economic and tourism impact, offering significant value to residents in addition to serving as a key travel motivator for visitors to St. Catharines creating positive consumer perceptions of Niagara s Wine Country. Festival staff works closely with City staff ensuring that strategic goals are recognized and incorporated within the development and execution of the Festival's program of events and marketing initiatives. Having Canada s oldest and largest wine festival continue to call St. Catharines home helps solidify our community s reputation as cultural and entertainment hub. The City of St. Catharines remains committed to building a strong diverse local economy and this festival continually helps to move that mandate forward. Notification It is in order to advise Ms. Kimberly Hundertmark, Executive Director, Niagara Grape and Wine Festival, 8 Church Street, Suite 100, St. Catharines, Ontario, L2R 3B3 Prepared and Submitted by: Brian York, Manager of Economic Development, and Karen Doyle, Tourism Marketing Officer Approved by: David Oakes, Ec.D., MAES, Director Parks, Recreation and Culture Services Report Page 6 of 6