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WEST LINDFIELD SPORT & RECREATION CLUB BUSINESS PLAN

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					Ordinary Meeting of Council - 24 June 2008                                                         10 / 1

Item 10                                                                                           S02712
                                                                                             13 June 2008


        WEST LINDFIELD SPORT & RECREATION CLUB
                     BUSINESS PLAN



                                       EXECUTIVE SUMMARY


PURPOSE OF REPORT:                         To seek Council's in-principle support for the West Lindfield
                                           Sport and Recreation Club to lodge a development
                                           application for the construction of an all-weather synthetic
                                           court surface for multi-purpose sports use on the two
                                           disused bowling greens at the club.



BACKGROUND:                                West Lindfield Sport and Recreation Club currently has a 50
                                           year lease which is due to expire on 21 October 2009. The
                                           club is seeking a new 20 year lease, however the club has
                                           been informed by Council that a new lease will not be
                                           negotiated until Council has approved the business plan for
                                           the proposed redevelopment and development application
                                           approval has been received. Council has been working with
                                           the club during the preparation of the business plan for the
                                           last twelve months.



COMMENTS:                                  West Lindfield Sport and Recreation Club is proposing to
                                           fund a new all weather multi-purpose financially viable
                                           community facility by redeveloping the two disused bowling
                                           greens at the club and maintaining lawn bowls on the third
                                           green.



RECOMMENDATION:                            That Council give in-principle support for the proposed
                                           multi-purpose use of West Lindfield Sport and Recreation
                                           Club subject to approval of a development application for the
                                           proposal. That the community be consulted prior to the club
                                           lodging a development application. That Council seek to
                                           negotiate a new 20 year lease (initial term of 10 years plus an
                                           option for a second term of 10 years) with West Lindfield
                                           Sport and Recreation Club if development approval for the
                                           proposal is granted.


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Item 10                                                                                      S02712
                                                                                        13 June 2008

PURPOSE OF REPORT

To seek Council's in-principle support for the West Lindfield Sport and Recreation Club to lodge a
development application for the construction of an all-weather synthetic court surface for multi-
purpose sports use on the two disused bowling greens at the club.

BACKGROUND

West Lindfield Sport and Recreation Club (WLSRC) is located on Council-owned land (the site is
classified as Community Land and zoned 6a Recreation) at 76A Highfield Road Lindfield, and
includes the building, car park, bowling green and surrounds. The northern boundary of the site is
directly adjacent to Highfield Road. The western boundary is adjacent to Primula oval, whilst the
southern and eastern boundaries are surrounded by bushland.

In recent years the bowling club membership numbers has fallen. To maintain financial viability,
the club sold its gaming machine licenses and appointed a licensee who also serves as secretary
to the WLSRC and onsite supervisor and barman.

Since this appointment, the club’s financial position has significantly improved, however the
WLSRC board recognises the need for new sources of revenue that would enable the club to
expand its activities and make full use of this excellent community resource.

WLSRC was incorporated in 2000 and brought together Lindfield Football Club (LFC), West
Lindfield Bowling Club and Lindfield Rugby Club. The Lindfield Rugby Club has subsequently
withdrawn, preferring to devote their resources and energy to establishing additional facilities at
Tryon oval. WLSRC is now used for bowling, meetings, football training, social events and
equipment storage. Previously WLSRC was known as the West Lindfield Bowling Club
Incorporated, having commenced operations in 1958 and signed a 50 year lease with Council in
1959.

In 2006 discussions were held with Lindfield Bridge Club and Killara Croquet Club to investigate
the potential for either or both of these clubs to relocate their activities to WLSRC. By early 2007,
the relocation of each of these groups was no longer pursued and WLSRC commenced exploring
alternative uses for the two disused bowling greens at the club. In 2007 the club instigated
discussions with Council to begin planning for what it called the Lindfield Sports Centre. This
would form part of WLSRC and would include new facilities including Lindfield Futsal competitions
(Futsal is a five-a-side game of soccer played on a small field).

Council has previously advised WLSRC Board that one of the conditions of the lease extension
would be the appointment of two Council representatives on the Board. WLSRC Board has passed
a resolution to progress changes to the Constitution so that these appointments can be made.
Should the Lindfield Sports Centre proposal be accepted by Council, the development application
(DA) approved, and a new lease signed by Council, Council would need to give consideration as to
who and how it might nominate two representatives.




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Item 10                                                                                         S02712
                                                                                           13 June 2008


Lindfield Football Club (LFC)

In June 2008 the LFC submitted a business plan (Attachment 1) and Financial Model (Attachment
2). This has been endorsed by the WLSRC Board and the LFC Board, representing a membership of
1,950 players. LFC is a not-for-profit sporting club that provides amateur football to Lindfield and
surrounding areas. It was founded in 1957 and is the largest sporting club in Ku-ring-gai and one
of the largest football clubs in Australia in terms of playing members. Being such a large club LFC
has expertise in the management of successful football competitions, clubs and associations,
working with children and management of volunteers.

The business plan is based on information from potential users and groups incorporating expertise
in financing, legal, accounting, landscaping, surveying, engineering and construction management
backgrounds. All information in the business plan is in current dollars and has not been escalated
for inflation. The purpose of the business plan is to outline the economic viability of a new sports
facility at West Lindfield Sport and Recreation Club. It explains the financial, operational,
marketing and organisational plan for the proposal.

LFC is affiliated with Ku-ring-gai & District Soccer Association (KDSA) which is one of 33 Football
Associations affiliated with Football NSW.

COMMENTS

Commercial information – competitor

In accordance with the Local Government Act 1993 and the Local Government (General) Regulation
2005, in the opinion of the General Manager, Attachments 1 and 2 in the following business is of a
kind as referred to in section 10A(2)(d) of the Act, and should be dealt with in a part of the meeting
closed to the public.

Section 10A(2)(d) of the Act permits the meeting to be closed to the public for business relating to
commercial information of a confidential nature that would, if disclosed:

(i)       prejudice the commercial position of the person who supplied it, or
(ii)      confer a commercial advantage on a competitor of Council, or
(iii)     reveal a trade secret.

This matter is classified confidential under section 10A(2)(d)(ii) because it contains information of a
commercially sensitive nature to West Lindfield Sport and Recreation Club Ltd which could
potentially be used by a competing organisation.

It is not in the public interest to disclose the information in Attachments 1 & 2.

Proposed Development

The Lindfield Sports Centre will be the only facility of its kind in Ku-ring-gai to offer a multi-sport
and community centre providing a range of sporting, recreational and social activities. The
proposal seeks the conversion of the two unused bowling greens into a single new surface setup
(see Figure 1) which incorporates:
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Item 10                                                                                        S02712
                                                                                          13 June 2008


    •     In summary
          •     2 full international sized Futsal courts made of artificial grass;
          •     2 courts made up of multi-purpose synthetic grass which can accommodate such
                sports as basketball, netball, and European handball. This same area can be used
                as a third full size Futsal court;
          •     A fence to be 3.6m high with 4 pedestrian gates and one double 3m x 3m access
                gate; and
          •     6 lighting poles to enable evening play.

    •     Multi-purpose courts
          •      Futsal Competitions (winter, summer, corporate, school)
          •      Netball
          •      Basketball
          •      European Handball
          •      Football(soccer) training
          •      Fun Game
          •      Casual hire use to public
          •      Alternative wet weather football club training for all sports

   •                                Lawn bowls green
          •   Lawn bowling competition
          •   Bare-foot bowls functions

   •                                 Bar and indoor facilities
          •   Club meeting facilities
          •   Coaching Courses
          •   Post match social drinks (football and cricket)
          •   Live sporting events on the big screen
          •   Casual dining
          •   Corporate meetings and team building training
          •   Birthday parties, anniversary, wedding receptions
          •   A retreat for parents whilst waiting for children to complete games.

The key aims of the Lindfield Sports Centre are:
    •     to encourage participation in a popular and rapidly growing form of football;

    •     to ensure LFC’s continued expansion;

    •     to provide all weather competition and training opportunities for KDSA teams;

    •     to enable children, young people and adults to participate in sport and maintain fitness
          levels for life;

    •     to ensure the West Lindfield Sport and Recreation Club (WLSRC) is a well-used, community
          venue; and

    •     to provide an alternative venue from existing ovals.



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Item 10                                                                                         S02712
                                                                                           13 June 2008


Figure1. Proposed Facility Layout




It is proposed the Sports Centre will also be accessible to residents of Lindfield and the
surrounding communities.

Project Costs

Three quotes have been obtained to implement the project. While these are estimates based on a
concept plan, it is envisaged to cost approximately $450,000. However this figure is highly variable
because of unknown factors, including:

          •   condition of sub base has not been scientifically tested and this will determine the
              depth of soil to be removed before construction;

          •   final facility layout and extras, which are still to be finalised; and

          •   LFC may be able to use its membership base to outsource construction components at
              lower prices and reduce the overall cost.

In addition to the quotes of $450,000, LFC has allowed a further $70,000 ($10,000 for Development
Application, $45,000 for initial working capital and $15,000 for WLSRC club house renovations).
These allowances are conservative and the actual outlay prior to the facility being cash flow
positive, is likely to be less than $500,000.

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Item 10                                                                                           S02712
                                                                                             13 June 2008

Project Funding

Possible funding sources identified by the club include but are not limited to government grants,
community donations, commercial funding contributions from LFC and its members and club
fundraising activities. These alternatives are discussed in detail in the funding forecast section of
the business plan (Attachment 1). In summary, the following funding options are included in the
business plan:


   Funding Opportunities
   Government Grants                                                                       $200,000
   Contribution from LFC                                                                    $30,000
   Contribution from LFC Members                                                            $75,000
   Sponsorship/Funding Raising Activities/Other Related                                          $0
   Contribution from Ku-ring-gai Council                                                         $0
   Commercial Funding                                                                      $250,000
                                                                                           $555,000


The primary sources of funds are contingent on security of tenure over the site, as it is a criterion
for State and Federal government grants and any external borrowing.

Revenue

According to the business plan, over a ten year period the project would generate sufficient
cashflow to repay debt and fund major maintenance and future capital improvements in the order
of $400,000 to $500,000. In addition, cash flowing to WLSRC directly from the project is forecast be
at least $400,000 from LFC in Futsal fees (approximately $150,000 over 10 years) and canteen net
cash ($250,000 or $25,000 per annum) as shown in Table 1 below.


Table 1- Revenue Contributed to WLSRC

       CONTRIBUTION TO WLSRC                      Year 1    Year 2   Year 3   Year 4   Total 1-10
          Canteen Sales                           11,894    24,221   27,187   29,434      269,338
         Futsal Fees                               4,130     8,680    9,730   10,570       96,530
         LFC Fees                                  5,000     5,000    5,000    5,000       55,000
       Accumulated Cash Flow                      21,024    37,901   41,917   45,004      420,868


New Lease

The current lease expires in 2009 and in order for it to be renewed, Council has requested this
detailed business plan so that Council can be confident about the feasibility of the project and the
benefits it will bring to the community.



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Item 10                                                                                           S02712
                                                                                             13 June 2008

Given the high investment required to develop the land into all weather courts, the club is seeking
a 20 year lease (10 years + option for a further 10 years).

Development Application

As WLSRC is the lessee of the land the DA will need to be submitted by WLSRC on behalf of LFC.

The process of preparing a DA will require detailed plans and descriptions of proposed works and
the operation of the facility.

The club recently had a formal pre-DA meeting with Council staff to identify detailed requirements
for the DA, and has begun preparing the DA for submission pending in-principle support for the
proposal from Council. Key issues arising from this pre-DA meeting are discussed below.

Parking Requirements

When the car park has been full a total of 74 spaces have been counted. However the car park
surface is not marked and is not configured in such a way that the full area is maximized. If this
was done it would create more spaces due to parking efficiency.

A parking survey will be required as part of the DA and this will clarify any parking and traffic
issues. Based on a 74-space assumption there is sufficient parking for 3 courts for evening
competition as shown in Table 2 in the likely case scenario. The DA parking report will also use
traffic statistics from the St Ives Futsal competition.

Table 2 - Parking Assumptions

          PARKING UTILISATION                        Worst             Likely               Best
                                                     Case               Case                Case
                                                   Scenario *        Scenario **         Scenario***
              ASSUMPTIONS
Average Teams during one timeslot                        8                6                   6
Players per team                                         7                7                   7
Cars Per Player                                          1              0.66                 0.5
Parking spots required per timeslot                     56               28                  21
Average Overlap time 20mins                            112               56                  42
Officials + Referees                                    10               10                  10
Required parking spots per overlap time                122               66                  52
Available Parking Spots
WLSRC                                                   72                72                  72
Scouts Hall                                             15                15                  15
Available Parking Spots                                 87                 87                 87
Required Street Parking                                 35               (-21)               (-35)
                                                     *Every       **Every 2/3 player     ***Every 1/2
                                                      player        arrives by car     player arrives by
                                                    arrives by                                car
                                                       car


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Item 10                                                                                                          S02712
                                                                                                            13 June 2008

Futsal Competition

Futsal is a competitive and recreational form of football that can be played indoors or outdoors on
artificial surfaces. As the size of the court is reduced, more playing courts can be developed in
smaller areas. As the surface is artificial, it can be played on all year, regardless of weather and
supply of water. Based on football studies from Europe and South America the ideal player
development is having players being more exposed to the ball. Futsal plays a major role in the
development of good ball skills, creativity and is weather independent. There is currently no
international size court in the North Shore area. This proposal seeks to address this shortfall.

LFC proposes to develop a full competition for the same age groups as the KDSA competitions,
that being, ages 6 through to over 35 for both male and female. Further, the courts will be
available for use by external coaches on a seasonal basis and for hourly hire for schools and
organisations. The court setup will allow for 3 games to be run at any given time and the Futsal
competitions are proposed to run from 4.00pm – 9. 30pm on weeknights.

Usage for competition is set out in Table 3. This has assumed court usage as a percentage of
allocated time to be less than 50% in the first year, rising to 70% in the third year and thereafter
for the summer competition and less for the autumn and winter competitions.

Table 3 – Competition Assumptions


      Futsal Competition Assumptions                            Year 1          Year 2          Year 3            Year 4
      Junior Competitions (under 12)
       Start -End Time                                 4:30 - 6:00          4:30 - 6:00   4:30 – 6:00         4:30 - 6:00
       Courts                                                          4              4                 4               4
       Duration (incl changeover)                                     30             30                30              30
      Student/Adult (12 plus)
       Start -End Time                                      6:00 - 9:30     6:00 - 9:30   6:00 –9:30          6:00 - 9:30
       Courts                                                         3               3                 3               3
       Duration (incl changeover)                                    40              40                40              40
      Competitions
      Summer
       Duration (weeks)                                                14           14              14                14
       Nights                                                           5            5               5                 5
       Estimated Average Utilisation Per Night                       49%          58%             68%               68%
      Autumn
       Duration (weeks)                                                -            12              12                12
       Nights                                                          -             3               3                 3
       Estimated Average Utilisation Per Night                        0%          38%             40%               49%
      Winter
       Duration (weeks)                                                -            12              12                12
       Nights                                                          -             3               3                 3
       Estimated Average Utilisation Per Night                        0%          38%             40%               49%




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Item 10                                                                                        S02712
                                                                                          13 June 2008


School sport and other uses

There are 14 schools in walking distance/close proximity to the WLSRC with 6,643 children
attending these schools.

In particular, LFC has had strong interest from the following schools:

•         Killara High- could be fully booked for Thursday afternoon sport and has sent a letter of
          support to Council;
•         Holy Family- currently utilise Lofberg Oval (West Pymble) for their Wednesday sport and
          this would be a great location as it is within walking distance;
•         Lindfield Primary- very interested in exploring options, is also within walking distance and
          has sent a letter of support to Council; and
•         Killara Primary School- has sent a letter of support to Council
•         Beaumont Road - has sent a letter of support to Council.

School sport could be accommodated during the day. Lindfield professional coaches can work with
Physical Education teachers to design Futsal programs for schools students and local Futsal
tournaments could be easily organised for local schools.

Netball and basketball are other sports that could be played for school sport during the day.

Lindfield Football Club & KDSA clubs could you use the facilities as a training ground. Futsal,
basketball and netball tournaments could be held and private individuals or academies could hire
the courts. Football camps would be held in the school holidays and private or corporate functions
would give the Lindfield Sports Centre year-round utilization.

The Fun Game Activity Program has been a successful ‘low impact’ sport implemented at North
Ryde RSL and recently by Ku-ring-gai Council as part of the Active Ku-ring-gai program. A
member of the Fun Game organisation has approached WLSRC with an interest to be part of the
daytime activities at the proposed Lindfield Sports Centre.



CONSULTATION

No consultation has taken place at this point. It is recommended that Council undertake pre-DA
consultation with local residents to ascertain their willingness to accept the new facilities at
WLSRC.



FINANCIAL CONSIDERATIONS

The are no financial considerations in relation to the capital costs and ongoing operation,
maintenance and future capital replacement costs, as the proposal is to be fully funded by WLSRC.


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Item 10                                                                                         S02712
                                                                                           13 June 2008




CONSULTATION WITH OTHER COUNCIL DEPARTMENTS

Staff from Community and Development and Regulation have been consulted on this proposal and
specifically the Community and Recreation Property section in relation to the potential new lease.



SUMMARY

WLSRC is proposing to fund a new all weather multi-purpose financially viable community facility
by redeveloping the two disused bowling greens at the club and maintaining lawn bowls on the
third green.

The proposal gives Council the opportunity the help reinvigorate a not-for-profit community club
and bring a vital additional income stream to the club. The proposal also meets a need identified in
the 2006 Sport in Ku-ring-gai Strategy. Action 1.3 of the Strategy is to identify opportunities for
alternative open space areas to be developed for active recreation opportunities and to investigate
the re-use of existing and under-utilized assets (including tennis courts) for new and/or alternative
sporting and recreation facilities.

The proposed redevelopment will provide many benefits to the Ku-ring-gai community, including
social benefits such as providing a much needed recreational outlet for female and male youth,
providing increased opportunities for all members of the community to participate in sport,
effectively saving a 50 year old bowling club from extinction, and providing the opportunity for the
lawn bowling part of the club to revitalize itself.

This project would provide a much needed additional community facility, re-invigorate WLSRC and
is financially robust.

These benefits will need to be weighed up against the negative impacts the proposed facility will
have on surrounding residents, primarily as a result of increased traffic, parking requirements and
evening noise.

If the proposed facility does not proceed, Council will need to identify future uses for the facility,
which are likely to have significant capital cost not accounted for in Council’s long term financial
model.



RECOMMENDATION

          A.   That Council give in-principle support for the proposed multi-purpose use of WLSRC
               subject to approval of a Development Application for the proposal.

          B.   That the community be consulted prior to the club lodging a Development Application.
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Item 10                                                                                          S02712
                                                                                            13 June 2008


          C.   That Council seek to negotiate a new 20 year lease (initial term of 10 years plus an
               option for a second term of 10 years) with WLSRC if Development Application
               approval for the proposal is granted.




Roger Faulkner                                              Andrew Watson
Sport and Recreation Planner                                Director Strategy



Attachments:           1. Lindfield Football Club Business Proposal - Confidential
                       2. Proposed Lindfield Sports Centre Financial Model - Confidential




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