FOUR SEASON TOURISM & RESORT DEVELOPMENT PRELIMINARY BUSINESS CASE Town of Grande Cache
FEBRUARY 2008
Table of Contents 1 2
EXECUTIVE SUMMARY ...............................................................................................1 BACKGROUND .............................................................................................................2 2.1 PROBLEM AND OPPORTUNITY.....................................................................2 2.2 CURRENT SITUATION ....................................................................................2 3 PROJECT DESCRIPTION.............................................................................................3 3.1 DESCRIPTION ..................................................................................................3 3.2 OBJECTIVES....................................................................................................3 3.3 SCOPE ..............................................................................................................3 3.4 ANTICIPATED TIMEFRAME............................................................................4 3.5 STAKEHOLDERS.............................................................................................5 4 STRATEGIC ALIGNMENT ............................................................................................6 4.1 GOVERNMENT OF ALBERTA ........................................................................6 4.1.1 MUNICIPAL AFFAIRS AND HOUSING ...........................................................6 4.1.2 INFRASTRUCTURE AND TRANSPORTATION..............................................6 4.2 GOVERNMENT OF CANADA ..........................................................................7 4.2.1 CANADIAN HERITAGE....................................................................................7 4.2.2 PUBLIC HEALTH AGENCY .............................................................................7 4.3 TOWN OF GRANDE CACHE ...........................................................................7 4.4 LOCAL BUSINESSES IN GRANDE CACHE...................................................7 5 ENVIRONMENT ANALYSIS..........................................................................................8 5.1 TRENDS IN THE CANADIAN SKI INDUSTRY ................................................8 5.2 TRENDS IN THE ALPINE RESORT INDUSTRY .............................................9 5.3 TRENDS IN SIMILAR FACILITIES.................................................................10 5.3.1 REVELSTOKE MOUNTAIN RESORT ...........................................................10 5.3.2 WHISTLER-BLACKCOMB.............................................................................11 5.3.3 KICKING HORSE MOUNTAIN RESORT.......................................................11 6 ALTERNATIVES ..........................................................................................................12 6.1 POSSIBLE BUILDING AND SITE ALTERNATIVES .....................................12 6.2 EVALUATION OF ALTERNATIVES ..............................................................14 6.3 THE VIABLE ALTERNATIVE.........................................................................16 7 COST/BENEFIT ANALYSIS........................................................................................17 7.1 ECONOMIC IMPACT......................................................................................17 7.2 SOCIAL IMPACT ............................................................................................18 7.3 ENVIRONMENTAL IMPACT ..........................................................................18 8 CONCLUSIONS AND NEXT STEPS...........................................................................20 8.1 MAJOR CONCLUSIONS................................................................................20 8.2 NEXT STEPS ..................................................................................................21 8.3 ENVIRONMENTAL IMPACT ASSESSMENT ................................................22 REFERENCES ..........................................................................................................................23
FOUR SEASON TOURISM AND RESORT DEVELOPMENT TOWN OF GRANDE CACHE
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EXECUTIVE SUMMARY
The Town of Grande Cache (the Town) is exploring an opportunity to attract and encourage the development of a major four-season tourism resort that would be situated within proximity of the town site. Grande Cache is a small community with a local population of approximately 4,300 residents. It is situated in the Rocky Mountains about half way between Hinton and Grande Prairie and is about 4.5 hours from Edmonton. Grande Cache has long been considered a resource-based town. Determining the potential of their tourism market is intended to fulfill the town’s goal to diversify its economy. Grande Cache has excellent potential for outdoor recreation and tourism development. The peaks of 21 different mountains are visible from the centre of town. The scope of the project resort under consideration for development may contain elements such as first class ski hill and base facilities, condominium development, world-class 18 hole golf course, spa facilities, state of the art accommodations and restaurants, and four-season outdoor tourism theme. Trends in the Canadian ski market indicate a growing number of skiers and snowboarders over the next 15 ski seasons. Recent resort developments in Revelstoke, Whistler-Blackcomb, and Kicking Horse have provided a valuable template for development that Grande Cache may learn from. Four sites were selected for this analysis including Grande Mountain, Ambler Ridge, Mount Louie, and Mount Stearn. However, further studies are required to evaluate each of the opportunities identified, and the feasibility of the final site selected. Grande Mountain and Mount Stearn passed the initial screening criteria for a possible ski hill and resort development based on initial development requirements, and in absence of further site evaluations. The screening criteria include a high vertical altitude, at least 2,000 feet of vertical drop, and adequate space for facilities. The economic, social, and environmental impact of a resort development was examined and the pros and cons of each were discussed. The overall conclusion is that there is support for continuing with further business planning efforts, with a focus on site-specific financial feasibility. Based on the research and analysis performed in this study, two key themes emerged as key contributors to this finding. •
•
There seem to be viable sites available for further consideration of a four-season resort development within the town’s proximity. However, it is too early to eliminate any options identified in this study, as each site will have several unique attributes including associated financial costs, natural assets, and constraints that must be carefully considered. Although there is a slight decline projected in the ski industry in the short-term, overall visitation to Canadian resorts is projected to increase by about 18% over the next fifteen seasons, with domestic visits estimated to increase 25% by 2021. This implies that there is significant room for expansion and that resort operators can expect opportunities for excellent growth in a healthy Canadian skiing industry in the coming years.
Finally, a series of next steps was determined that would assist with the development of a four season tourism and resort development.
FOUR SEASON TOURISM AND RESORT DEVELOPMENT TOWN OF GRANDE CACHE
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2
BACKGROUND
2.1
Problem and Opportunity
Grande Cache is situated at the northern border of Alberta’s Rockies and is a gateway to the Willmore Wilderness Park. The area surrounding Grande Cache has a wealth of natural resources such as coal, timber, oil, and gas. Historically, Grande Cache’s boom-bust economy has been closely tied to coal mining and forestry. The town encourages additional industries to enhance diversification and control fluctuations in the economy. The town has maintained control of their vision and is looking to the future to maintain a balance between economic goals and preserving the beauty of the natural environment. The beauty of the Canadian Rockies and pristine wilderness surrounding Grande Cache is promoted as the perfect environment for a variety of outdoor activities. Although tourism has been a part of Grande Cache’s economy, it appears that much of the town’s market potential for tourism development is untapped. Grande Cache is exploring an opportunity to attract and encourage the development of a major fourseason tourism resort that would be situated within proximity of the town site. If the project proceeds, Grande Cache is positioned to attract significant investment and economic growth to the area.
2.2
Current Situation
Since the early 1990s, Grande Cache has been investigating the possible development of a four-season tourism resort in the area. A report was commissioned to evaluate three mountain site locations, and the potential to host a proposed four-season resort. The report findings indicated that out of the three alternatives, Grande Mountain was the most attractive site for this kind of development. A second report thereafter defined the business requirements for resort facilities on Grande Mountain. Today, this site may no longer be suitable for tourism development since there are potential plans to mine on Grande Mountain and develop the area at the base of the mountain into an industrial park. Adding to the complexity, a potential developer has come into the picture and is considering Mount Stearn as a possible resort development site. If the current situation is maintained, the town’s destiny will remain tied to a boom-bust, resource-based economy. Furthermore, if another developer chooses to develop the area, Grande Cache will be locked out of the opportunity and will become a community managed purely by change, instead of managing the change through prepared and planned growth.
FOUR SEASON TOURISM AND RESORT DEVELOPMENT TOWN OF GRANDE CACHE
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3
PROJECT DESCRIPTION
3.1
Description
Although Grande Cache appears to contain many of the natural assets and elements needed for a desirable tourism destination, it will still need a land acquisition strategy to manage the growth and impact of the development on the community. It will be important for the town to expand its boundaries through acquisition of land from the Province of Alberta before further development of the area renders the cost of land prohibitive to the community or a developer. It is critical to the future of small communities to retain ownership of land, thereby controlling development in the manner they see fit.
3.2
Objectives
The purpose of the project is to assist the Town with meeting the objectives of their 20/20 Vision of the Future. The following objectives can be used in a post-implementation review to evaluate and assess the success of the project. •
Maintain the balance between economic goals and preserving the beauty of the natural environment.
•
Create an environment in which local businesses can expand and prosper.
•
Diversify the economy through structured economic development.
•
Attract investment to Grande Cache.
•
Put the Town on-the-map through tourism development.
3.3
Scope
The scope of the new four-season tourism resort that is under consideration for development may contain the elements below. However, further studies are required to evaluate each of the opportunities identified, and the feasibility of the final site selected. The opportunities being considered are: •
First class ski hill and base facilities including a day lodge, maintenance shop, and restaurants.
•
Condominium development that supports and enhances the resort experience.
•
Integration of existing outdoor adventure operators to promote outdoor activities.
•
New and existing trail development for mountain biking, summer hiking, eco-tourism opportunities, and winter activities.
•
World-class accommodations and restaurants catering to a high end clientele.
•
World-class 18 hole golf course.
•
Spa facilities that offer several resort services for a wide variety of clientele.
•
Small business development including pro-shops, gift shops, sporting goods, and rentals.
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3.4
Anticipated Timeframe
The following high-level outline is a very preliminary approximation of the proposed project’s key milestones and estimated target dates. Milestone Related to Outcome/Deliverable
Duration
Step 1: EIA Process: Environmental Biophysical Inventory and Assessments Step 2: Preliminary Engineering Evaluation of Carrying Capacities Site Selection and Business Case
1.5 years
Submission to Authority
Issue RFP for Design
2008 - 2011 2008 – 2009 2009
Step 3: Design Planning and Project Approvals Step 4: Engineering and Support Services Step 5: Geomatics/Survey Funding Approval
Date
2009 - 2012 0.5 years 1 year
Issue Design Contract
2010 2010 - 2011 2011
Design and Contract Documents
0.5 years
2012
Tender Period
0.5 years
2012
Award Construction Contract
2012
Step 6: Public Engagement and Communication Plan Step 7: Sustainable Initiatives Construction
2008 - 2011 2.5 years
Construction Completed Commissioning Grand Opening
FOUR SEASON TOURISM AND RESORT DEVELOPMENT TOWN OF GRANDE CACHE
2013 - 2015 2015
0.5 years
2016 2016
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3.5
Stakeholders
A wide range of public and private sector stakeholders will benefit from the project as the following chart shows. Stakeholders are categorized as I (internal), a party within the control of Grande Cache or E (external) party outside of the control of Grande Cache; and P (primary), directly impacted and involved in the project or S (secondary) impacted but not directly involved in the project. For each party, an overview of their business requirements of the project is provided. Stakeholder lists will be expanded for the Environmental Impact Assessment (EIA) and will involve specific Aboriginal consultation. #
Stakeholder
I/E
P/S
1
Government of Alberta, Municipal Affairs and Housing
2
Government of Alberta, Infrastructure and Transportation
3
E
S
Foster community development in Alberta.
E
P
Improve urban and rural municipal infrastructure in Alberta through enhancement of the environment and improvement of community infrastructure.
Government of Canada, Canadian Heritage
E
S
Enhance opportunities for Canadians to participate and excel in sport.
4
Government of Canada, Public Health Agency
I
S
Improve Canadian lifestyle by improving longevity and health challenges (i.e. obesity).
5
The Town
I
P
Increase diversity of economy. Increase tourism.
6
Local Businesses in Grande Cache
I
P
Improve economic development in the community.
FOUR SEASON TOURISM AND RESORT DEVELOPMENT TOWN OF GRANDE CACHE
Business Requirements
5
4
STRATEGIC ALIGNMENT
The next part of this section analyzes how the project is strategically aligned to each of the business plans of all primary stakeholders and identifies the major goals that the project will help achieve.
4.1
Government of Alberta
4.1.1 Municipal Affairs and Housing #
Goal
How Facility Supports Goal
Impact
1
Alberta will have strong and effective municipalities and selfreliant communities.
Ensures long-term sustainability of the municipality through capacity-building initiatives and economic diversification
2
Albertans will be healthy.
Recreational initiatives will promote the health, well-being and quality of life of the public.
Medium to High
3
Albertans will have the opportunity to enjoy the province’s natural, historical, and cultural resources.
Development and promotion of the area will increase access to the province’s natural, historical and cultural resources.
Medium to High
High
4.1.2 Infrastructure and Transportation #
Goal
How Facility Supports Goal
1
Improve urban and rural municipal infrastructure in Alberta through enhancement of the environment.
As more demand is placed on the existing infrastructure, there will be a need to improve water and wastewater management systems, solid waste management systems, and promote efficient energy use.
High
2
Improve urban and rural municipal infrastructure in Alberta through improvement of community infrastructure.
Construction and upgrade of transportation infrastructure to increase access to recreational facilities/resort area.
High
3
Support long-term economic growth.
Increasing access to the new economy through improved telecommunications and economic opportunities in the community.
Medium
FOUR SEASON TOURISM AND RESORT DEVELOPMENT TOWN OF GRANDE CACHE
Impact
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4.2
Government of Canada
4.2.1 Canadian Heritage #
Goal
How Facility Supports Goal
1
Increase the number of Canadians participating in sport.
Enhances opportunities for sport participation through improved accessibility and promotion of recreational sports.
Impact Medium to High
4.2.2 Public Health Agency #
Goal
How Facility Supports Goal
1
Meeting major public health challenges such as obesity.
Promotes public health and well-being through participation in sport.
4.3
Impact Medium
Town of Grande Cache
#
Goal
How Facility Supports Goal
1
Create a healthy and sustainable community.
Tourism development and promotion will promote economic diversification and will smooth fluctuations and reliance on a resource-based economy.
High
2
Improve quality of life for residents.
Increased tax base will be spent on improving: local infrastructure, town image and beautification initiatives, education and municipal services.
Medium to High
3
Become an international tourism destination.
Will encourage visitors by attracting local, regional and international recreational enthusiasts.
High
4.4
Impact
Local Businesses in Grande Cache
#
Goal
How Facility Supports Goal
1
Develop businesses through economic growth and sustainability.
Tourist spending will benefit a wide range of small business development such as pro-shops, gift stores, sporting goods and other retailers, lodging, restaurants, and transportation services.
FOUR SEASON TOURISM AND RESORT DEVELOPMENT TOWN OF GRANDE CACHE
Impact High
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5
ENVIRONMENT ANALYSIS
5.1
Trends in the Canadian Ski Industry
The Canadian skiing and snowboarding market is a $5 billion dollar industry, with a participation rate of 4 million alpine skiers and snowboarders.1 Alpine skiers are relatively affluent and well educated in comparison to other tourists. The development of the ski industry has been fostered by the introduction of new and improved high tech sports equipment. During the 2006/07 ski season, Canadian ski equipment sales were over $60 million, with a $10 million increase in the sale of alpine ski equipment over the previous year. In Alberta, ski equipment sales increased 59% over the previous year, compared with a 25% increase in sales in the overall Canadian market. Alberta showed a strong 15% increase in the number of skiers and snowboarders in the 2005/06 ski season. Despite a relatively subtle decline in the number of active skiers and snowboards overall, there was an increase in the average number of days participants ski and snowboard per season, netting out the number of skier/snowboarder visits. The following table shows the outlook in the domestic market to 2020/21. This forecast assumes a continued pattern of gain in the retention and conversion rates of skiers and snowboarders, small increases in trial rates, irregular participation due to international visitation, and limited growth of visits due to increases in the average number of days skied or boarded per season. Over the next few years, no growth is forecasted, as participation will drop due to the loss of a large number of pre-boomers and baby boomers, which make up a major component of the ski market. In this scenario, there is not enough growth in other demographics to compensate for this relatively short-term loss. The overall total visitation in Canada is projected to increase about 18 percent over the next fifteen seasons, with domestic visits projected to increase by 25%. Percentage Change of Visits in the Domestic Ski Market 30.0%
25.3% 21.3%
25.0%
18.0%
20.0%
14.7% 12.0%
15.0%
8.7%
10.0%
6.0% 5.0%
0.0% 0.0%
0.0% 1.3%
2.7% 4.0%
-0.7%-0.7% -0.7%-0.7%
-5.0% 17 16 15 14 13 12 21 20 19 18 /11 /10 /09 /08 /07 /06 05 006 007 008 009 010 1/20 2/20 3/20 4/20 5/20 6/20 7/20 8/20 9/20 0/20 1 1 1 1 1 1 1 2 2 2 2 2 2 1 1 20 20 20 20 20 20 20 20 20 20 20
1
Canadian Ski Council.
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5.2
Trends in the Alpine Resort Industry
In 2006/07, there were 283 ski resorts in Canada, 24 of which reside in Alberta. This translates to approximately 18 million visits overall in Canada, with Alberta experiencing about 2.5 million of these visits. During this season, there was a 6% decrease in visits, due to a shorter ski season in British Columbia and unfavourable weather conditions in Eastern Canada. Ski facilities and ancillary services such as lodging, food, beverages, and entertainment have become important components of the ski experience. Visitors that stay overnight are critical to ski resorts, as this group provides a huge demand for lodging, food, and beverage. Overall, 49% of skiers and snowboarders are overnight visitors, 21% day visitors, and 30% local residents. This makes customer satisfaction, which translates to loyalty, especially important. High performing resorts have extremely high employee service ratings that build on the overall customer experience. The following graph examines customer satisfaction at Canadian resorts, based on key performance metrics from the Canadian Ski Council’s 2006/07 research program. Customer Satisfaction Scorecard at Canadian Ski Resorts 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%
44% 34%
15% 7%
Excellent
Good
Mediocre
Poor
As indicated, almost 60% of Canadian ski resorts fall in the mediocre and poor categories. Given these lackluster scores, there is room for improvement at every level of service performance at Canadian resorts. High levels of customer service and the ability to provide the best facilities and services are all the more important to remain competitive, as the ski industry is seeing a great deal of resort consolidation. Intrawest Corp and other large operators have purchased several North American ski resorts and have put a significant amount of competitive pressure on smaller mountain operators. Some of the major Canadian ski resorts, such as Whistler and Tremblant, are making large investments in their facilities to create world class resorts. Development at these locations includes new lifts, hill accommodations, and enhancements to their villages to satisfy the needs of skiers. These resorts have the ability to move forward with development opportunities unlike ski resorts such as Marmot that exist within the national parks, which are severely limited in on-hill development. Government policies on federal and provincial crown lands have increasingly restricted their growth potential in this increasingly competitive market. For ski resorts specifically, there are typically caps on skier numbers and restrictions on future development. Finally, climate change is a real threat to the ski industry. However, the impacts of climate change in Canada are less due to the high level of artificial snowmaking. Even under climate change conditions and current snowmaking technology, the average ski season is expected to decline by 7% to 32% by 2050. Without snowmaking this decline is estimated to be closer to 37-57%.
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5.3
Trends in Similar Facilities
5.3.1 Revelstoke Mountain Resort More than twenty years in the making, the $1 Billion Revelstoke Mountain Resort (RMR) opened on December 22, 2007. Acclaimed for its powder and steep cliffs, the ski hill will eventually boast 100 runs and over 20 lift systems. With the hope of becoming one of British Columbia’s premier resorts, the fourseason village is scheduled for development in phases over the next 15 years, and will include 1,500 resort condominiums; 2,000 hotel suites; 850 townhouses; and 550 single family lots. The development will also include a golf course and 500,000 square feet of commercial and retail space. To date, the resort has sold over 1,400 season passes, approximately 85% of which were purchased by Revelstoke residents, suggesting the importance of having a local base of supporters, translating into a guaranteed revenue stream. RMR estimates attracting 50,000 skier visits in its first year of operation, but will be far from breaking even. RMR predicts that it will take about ten years before the operation of the mountain realizes a profit. The Revelstoke townsite has a permanent resident population of approximately 8,500 and is located five kilometers from the ski village. Over the past 30 years, the town has been dependent on the economic conditions of the forestry industry and was been considered a “sunset community” up until about 2001. One important feature of the project is the intensity of support the development has received from the community, particularly during the planning phases. “The community has been consistent over the years. We came out in droves to every public meeting, we showed our support and completed every survey known to man, and we told every council in no uncertain terms we wanted…out of the ski hill business and wanted it developed.”2 Revelstoke Mayor Mark McKee considers the resort as being key to the city’s economic future. The town has issued more than $81 million in building permits for 2007, compared to an average of $14 million in the previous two years. Although the resort is doing much of the building, there has also been growth in non-resort development due to the economic activity attracted by the resort. However, it is critical that the city control the pace of development. Revelstoke is already experiencing social changes as a result of economic development. There is no question that the value of real estate has mushroomed due to the arrival of the resort and is pricing the middle class out of the market. This further exacerbates the difficulties of attracting employees and will discourage young families to move to the area, as the average price of property ranges upwards of $500,000 and affordable housing becomes a growing problem. As for environmental issues, Revelstoke is facing a sensitive caribou issue that has yet to be resolved, but is creating one of the best water-treatment facilities in BC, in anticipation of higher demands placed on their system.
2
Revelstoke Mountain Resort open. January 10, 2008.
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5.3.2 Whistler-Blackcomb Whistler-Blackcomb, an Olympic-branded resort that will host a number of events for the 2010 Winter Olympic Games, has earned a reputation for being a skier’s paradise and a quality destination. At 8,171 acres, Whistler and Blackcomb form the largest single ski area and highest vertical drop in North America, at 5,133 feet, with 21 lift systems. The Mountain is said to offer some of the most varied ski terrain of any North American resort, making it one of the world’s favorite international ski spots. Whistler is considered a destination resort with a local population of about 10,000 residents. The resort is comprised of five villages built in a European style, with ancillary services considered second to none. It has over 120 restaurants and bars, more than 200 shops, plus more than 5,400 units of condo’s, bed and breakfasts, lodges and hotels. Whistler is labeled as party central, with its packed nightclubs and youthcentered scene. The British Columbia provincial government is spending $600 million to upgrade the sea to sky highway that leads to Whistler. The upgraded highway will accommodate greater traffic loads, will be widened, and will have an added concrete divider. However, this section of the highway has a sketchy history. Built on a steep cliff, it was originally a two-lane undivided highway with no outside barrier. Many motorists have lost their lives on it due to inclement weather, poor visibility, and drunk driving. Nevertheless, this has not deterred outdoor enthusiasts over the years. Although Whistler is a phenomenal success story, it should be examined as an isolated case. For one, it draws captive guests heavily from Vancouver. Furthermore, the resort is connected directly with the international spotlight – it has produced well-known Olympic champions and has hosted sporting events on an international scale. Moreover, Whistler became known as a world-class resort destination as early as the 1980’s – it has received many industry awards and is recognized by ski magazines as being number one in North America for its outstanding skiing and ancillary services. This kind of publicity the resort receives is difficult to replicate.
5.3.3 Kicking Horse Mountain Resort Kicking Horse Mountain Resort was originally Whitetooth Ski Area, a smaller ski hill owned by the town of Golden, but was bought out in 1999 and expanded by a developer. Covering 2,750 acres of skiing and snowboarding terrain, the vertical drop is the second highest in Canada at 4,133 feet. This four-season alpine resort is renowned for its deep powder and its steep terrain. Only 15% of the mountain is skiable for beginners and 15% are difficult intermediate runs. The remaining 70% is advanced and expert terrain. Considered by some as “heli-skiing off a lift”, one of the challenges Kicking Horse has as a resort is the perception of being a difficult mountain to ski. Although there has been considerable investment made to date in improvements, Kicking Horse is realizing the importance of the “guest experience” and plans to soften some of the mountain’s steepest runs, and invest more by adding additional hotel rooms, restaurants, and family-oriented improvements. Golden, with a population of 4,498 residents, has much to offer in terms of outdoor adventure: hiking, river rafting, horseback riding, hang gliding and ice climbing. Only minutes away from the resort area, 94% of residents have voted in favour of supporting the resort’s development. Interestingly, Golden is a community reliant on logging and the railway and has not been developing at the same rate as the ski hill. Older motels and hotels and lack-luster restaurants characterize much of the town’s ancillary services. It is clear that a balance in services is required in Golden’s journey to becoming a world-class international destination.
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6
ALTERNATIVES
6.1
Possible Building and Site Alternatives
A preliminary study was initiated by the Town to assess the potential of the local area to support the development of a ski resort. Three areas were evaluated, specifically Grande Mountain, Ambler Ridge, and Mount Louie. These sites were considered to have the most potential, based on accessibility, adequate snow conditions, and terrain. The map below identifies the proximity of each mountain to the Town.
3 1
4
2
Other mountains that received initial consideration included Mount Russel, Col Ridge, Mason Creek Ridge, and Mount Stearn. Although the evaluation of these additional mountains did not go further, Mount Stearn is once again being considered as a possible site by a new developer. Due to the renewed interest in Mount Stearn, this option has been considered in the analysis.
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Outlined below are all possible, reasonable solutions that may meet this development opportunity, along with the status quo option. Please note that building new facilities in the area is considered the only viable option, as all of the sites have yet to be developed to host an alpine resort. Alternative
Description
Why Eliminate
1. Ambler Mountain
1,500 ft vertical (6,200 ft top – 4,700 ft base). Located northwest of the Town.
See Section 6.2 for further analysis.
2. Mount Louie
1,800 ft vertical (6,200 ft top – 4,400 ft base) very dissected ski terrain. Located east of the Town.
See Section 6.2 for further analysis.
3. Grande Mountain
2,320 ft vertical with top at 6,529 ft and base at 4,200 ft. Located directly north of the Town.
See Section 6.2 for further analysis.
4. Mount Stearn
Approximately 4,000 ft vertical with top at 8,100 ft and base at 4,200 ft. Located west of the Town.
See Section 6.2 for further analysis.
5. Mount Russel
Terrain not suitable for skiing or resort development.
6. Col Ridge
Terrain not suitable for skiing or resort development.
7. Mason Creek Ridge
Terrain not suitable for skiing or resort development.
4. Status Quo
Do nothing.
FOUR SEASON TOURISM AND RESORT DEVELOPMENT TOWN OF GRANDE CACHE
See Section 6.2 for further analysis.
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6.2
Evaluation of Alternatives
Alternative
Considerations/Findings/Conclusions
Ambler Mountain
Key Considerations •
Limited area for base development.
•
High percentage of expert terrain.
•
Low percentage of beginner to intermediate terrain.
•
Snow conditions are reported to be good.
•
Potential wind problem in upper elevations.
• Limited expansion potential. Findings •
Mount Louie
The terrain distribution (beginner, intermediate, expert) is not sufficient to meet market requirements. Construction costs will be high, with limited area for base development.
Key Considerations •
High percentage of expert terrain.
•
Low percentage of intermediate/beginner terrain.
•
High construction costs (grading - lifts).
•
Very scenic, with the town visible.
•
Expansion potential is high.
• Snow conditions are reported to be good. Findings • Grande Mountain
The terrain distribution (beginner, intermediate, expert) is not sufficient to meet market conditions. Construction costs will be high.
Key Considerations •
2,320 ft vertical (comparable to Marmot Basin) with top at 6,529 ft and base at 4,200 ft.
•
Existing road to top of mountain.
•
Good base area resulting in low construction costs.
•
Small amount of expert terrain and outstanding consistent intermediate terrain.
•
Adjacent areas attractive for Nordic skiing.
•
Scenery attractive, although not as desirable as Mount Louie.
• Snow reportedly stays until spring above 4,100 ft. Findings •
Strong physical development potential in close proximity to the town site.
•
Limited potential due to industrial growth within Town limits.
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Mount Stearn
Key Considerations •
4,000 ft vertical (comparable to Kicking Horse) with top at 8,100 ft and base at 4,200 ft.
•
Good base area and collector area at Malcolm Creek.
•
Physical characteristics are appropriate for ski area and resort development.
•
Adjacent areas attractive for cross country skiing.
•
Golf course development possible at the 3,200 ft level.
•
Scenery attractive, townsite is viewable.
• Northeast facing for best snow retention. Findings • Do Nothing/Status Quo
Strong physical development potential in close proximity to the town site.
This is not considered a viable option. The purpose of the project is to meet the major goals outlined in Section 3. These goals are critical to the future vitality of Grand Cache in the coming years, and there is no other project that we are aware of that would provide the same scale of opportunity as the project proposed.
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6.3
The Viable Alternative
Grande Mountain and Mount Stearn are viable options for a possible ski hill and resort development, based on initial development requirements, and in absence of further site evaluations. The following key features meet the development objectives of the project: •
High vertical (one that is comparable to Marmot) favours good snow conditions and ensures a 130 day ski season on both Grande Mountain and Mount Stearn.
•
North-east exposure is ideal on Grande Mountain and Mount Stearn. Receiving lower amounts of direct sunlight, this exposure is best suited for snow retention, minimizing snow lost due to melting and subsequently, the need for snowmaking.
•
Accessibility of Grande Mountain. There is an existing road direct from the town to the top of the mountain on Grande Mountain. The access road from the highway is very straight forward and climbs gently around the shoulder of the mountain. There are no apparent problems for road development on Grande Mountain. Mount Stearn may have accessibility issues.
•
Sufficient area for a base on Mount Stearn. The required base appears to be large enough to support a parking area, base lodge, congregation area, maintenance area, golf course, and lifts. The base of Grande Mountain is becoming constrained by industrial development with the Town.
•
Sufficient terrain distribution to meet market requirements for Grand Mountain. Further study of Stearn Mountain is required.
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Attractive scenery and within close proximity to Grande Cache for both Grande Mountain and Mount Stearn.
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Extensive tree cover for both Grande Mountain and Mount Stearn.
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Concave basin for lift systems for both Grande Mountain and Mount Stearn.
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7
COST/BENEFIT ANALYSIS
7.1
Economic Impact
Tourism can be an important way to preserve alpine communities and bring revenue and jobs to communities increasingly unable to survive on a particular dominant industry, and where out-migration during cyclical downturns threatens the existence of these communities. There are no studies available that have measured with accuracy the economic benefits of ski resorts to individual communities. However, it is clear that had it not been for the development of the skiing industry, many communities around the world would either no longer exist, or would not realize a reasonable standard of living. In alpine communities, skiing and other snow sports industries have been coined the “white gold” of the economy, due to the significant value and source of income provided to the community and the region. As Grande Cache moves forward to diversify into an enhanced tourism destination, there are a number of dimensions to the economic impact of an all-season resort on the local economy. •
Attractions – The development of a ski resort; 18-hole golf course, four-season spa; tennis courts, racquetball, other recreational facilities; nearby campsites; cultural centers and conference space; and other proposed and existing attractions in the Grande Cache area will generate a significant number of employment opportunities.
•
Accommodations – Numerous hotels, motels, and bed and breakfasts in the area, as well as proposed condo developments and hostels will supply a large number of jobs and increased tax revenues for the local economy.
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Other businesses – Tourist spending benefits a wide range of small business development such as pro-shops, gift stores, sporting goods and other retailers, restaurants, and transportation services (taxis and buses).
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Tax base – An increased tax base spent on improving the local infrastructure, image, and other tourism related services.
It is worthy to note that when a dollar is spent in an economy, it re-circulates within the economy, causing an additional chain of spending, thereby multiplying the effects of the initial expenditure. As a dollar is produced in the local economy, some expenditure must be made outside the local economy on goods and services produced outside of the area. Therefore, a dollar spent locally has the potential to multiply not only in its local economy, but also in provincial and national economies. Although it is difficult to estimate the potential of economic impact on local communities, there are some indicators that are relevant when illustrating the benefits a ski hill could have to the province and federal government, which imply large benefits to local economies. PricewaterhouseCoopers conducted a study that measured the economic impact of skiing at Alberta’s ski resorts on Canada’s respective economies. The study concluded that out of the $954 million spent in Alberta’s parks year round in 1999, $329 million was directly attributed to downhill skiing and sustained 10,400 person years of province wide employment. Additionally, this supported the rest of the country since it was responsible for the importation of $64 million worth of goods from other parts of Canada. Furthermore, the winter season then enabled park businesses to employ people year round and thus employment was stabilized.
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7.2
Social Impact
There are a number of potential social impacts of the ski industry and subsequent development on local communities. The potential for loss of community identity is large, particularly when developers and outside corporations have control over a large section of ancillary and key services. It is therefore important for local communities to have control and involvement over their fate by retaining some element of ownership over future development. There is also the risk of local culture being lost during the season, as guests typically outnumber residents in large proportions. Après ski has become an important part of the experience for party-hard vacationers and it can present a negative image for both the local communities and the resorts, causing subsequent losses in revenue as families stay away. However, guests also look for local cultural experience, especially in local music and food. Arguably, many traditions are being maintained in resorts to provide to guests the full local experience and differentiate the experience from other alpine resort vacations through this type of branding. It is important to maintain a varied employment base to sustain local communities. It may be the case that the entire community is dependent on tourism, which makes the community susceptible to the social challenges that go along with transient employment that some alpine resorts realize. Many of these jobs are low paying and it is important for the local community to vary its employment base as much as possible to sustain a reasonable quality of life. As mentioned, there are important economic benefits to be realized from the ski industry. Often, the impact of development on local housing prices has the most significant social implications. Commonly, local residents sell land to developers and second homeowners to realize a profit. Housing and land prices are escalated to the point where locals can no longer afford to buy property and eventually leave the community.
7.3
Environmental Impact
There has been much environmental controversy surrounding skiing and area development, which has created an unquestionably large footprint on the ecology of the area. The impacts of ski resorts on the environment are described as being two fold. One, the implications caused by the development of the ski and resort area and two, the impact caused by ongoing maintenance required to sustain the ski resort. Development of the ski hill is especially invasive to the environment and arguably causes the most damage as natural forests are cleared to develop runs, build chair lifts, and lodges. These changes to the landscape have significant implications to the environment, causing erosion and loss of habitat. Wildlife species relying on forests for cover are displaced from their natural habitat or at best, have their movements restricted. Further modifications made to the terrain and the movement of soil to create adequate slopes cause further negative impacts on vegetation. Machine grading of slopes, causing severe and permanent impact to the ecosystem, deems re-vegetation efforts ineffective. Artificial snow making has further been criticized by environmentalists as impacting the plant species composition. Additives used to enhance ice crystal formation may be non-beneficial to the natural vegetation. This argument, however, is undetermined. Although pollution issues are not necessarily unique to ski resorts, ski resorts have more complex infrastructure projects, and often times the infrastructure does not keep up with commercial development. For example, Banff town site, with a population of approximately 6,700 permanent residents per the 2006 Canada Census, has a capacity of 10,000 beds per night plus over 100 restaurants and 200 shops.
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Needing to support 30,000 people, the sewage systems became overloaded and contaminated the Bow River when a very high demand was placed on the water and waste management system. Subsequently, Banff required tremendous upgrades to its systems. This scenario is also applicable to mountaintop developments that have restaurants and lift building facilities that require power and water and also create waste. Carbon emissions associated with the significant amount of electricity required to operate lifts on the ski hill is the cause of further pollution, along with emissions caused by traffic and parking at the ski resort. Over the last twenty years, ski hills are taking more systematic approaches to managing ski areas to promote sustainability. Whistler Blackcomb won the title "Best in a Mountain Environment" for its wise management of natural resources. Many European resorts have obtained ISO 14001 certification for environmental management of their facilities, leading in the use of renewable energy, waste management, and recycling. Lastly, the EIA process is in place to ensure that environmental issues are raised when a project or plan is first discussed and that all concerns are addressed as a project gains momentum through to implementation. Recommendations made by the EIA may necessitate the redesign of some project components, require further studies, and suggest changes that promote environmental sustainability, while still considering the economic viability of the project.
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8
CONCLUSIONS AND NEXT STEPS
8.1
Major Conclusions
Stantec examined the preliminary issues that would impact a four-season destination resort development within close proximity to Grande Cache. This analysis is considered preliminary, as it examined the operating environment of the proposed project in the absence of financial information. To this end, this study concludes that there is support for continuing with further business planning efforts, with a focus on site-specific financial and environmental feasibility. Based on the research and analysis performed in this study, several themes emerged as key contributors to this finding. •
There seem to be viable sites available for further consideration of a four-season resort development within the Town’s proximity. However, it is too early to eliminate any options identified in this study, as each site will have several unique attributes including associated financial costs, natural assets, and constraints that must be carefully considered.
•
Although there is a slight decline projected in the ski industry in the short-term as baby boomers retire their skis, overall visitation to Canadian resorts is projected to increase by about 18% over the next fifteen seasons, with domestic visits estimated to increase 25% by 2021. This implies that there is significant room for expansion and that resort operators can expect opportunities for excellent growth in a healthy Canadian skiing industry in the coming years.
•
As indicated in the relevant analysis of economic impacts presented in PricewaterhouseCoopers’s report, the ski industry is extremely important to the Alberta economy, providing significant economic benefits, employment opportunities, and tax revenue. The continued growth of the skiing industry is vital to regional, provincial, and community interests.
•
A critical next step will be to develop the terms of reference for an EIA, which will provide a systematic, reproducible, and interdisciplinary evaluation of the potential physical, biological, cultural, and socioeconomic effects of a proposed action and its practical alternatives.
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8.2
Next Steps
The following program outlines the next steps required in moving ahead with the planning and design for a four-season resort. The work program includes a series of studies and processes that are normally required to meet regulatory requirements, and that will guide the planning work through to construction.
STEP 1: Environmental Impact Assessment • Renewable Energy / Power Strategy • Environmental
STEP 7: Sustainable Initiatives (Optional)
STEP 6: Public Engagement and Communication Plan • Work Program
STEP 2: Preliminary Engineering Evaluation of Carrying Capacities
Four Season Tourism and Resort Development
STEP 5: Geomatics / Survey • Boundary Survey • Topographic Survey
• Initiate EIA process with appropriate federal officials via: • Biophysical Inventory; • Vegetation, Wildlife and Aquatic components; • Archaeological Overview Assessment; • Environmental Site Assessment; • Biophysical Evaluation; • Terrain Modeling; and • Preparation of GIS data base and base plan
STEP 4: Engineering and Supporting Services • Stormwater Management Plan • Engineering In Support Of Concept Plans And Land Use Applications • Traffic Impact Assessment Support for Concept Plan • Solid Waste Management Review
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STEP 3: Design Planning and Project Approvals • Opportunities and Constraints Plan / Site Analysis • Thematic Development, Vision Articulation and Community Design / Architecture • Development of Conceptual Plan • Visual Impact Assessment • Preparation Of Land Use Redesignation Application & Supporting Concept Plan • Coordination of Approvals Processing
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8.3
Environmental Impact Assessment
An EIA is a federal initiative referring to both a decision making process and a document that provides a systematic, reproducible, and interdisciplinary evaluation of the potential physical, biological, cultural, and socioeconomic effects of a proposed action and its practical alternatives. Proposed actions may include projects, programs, policies, or plans. As a decision making process, EIA provides a means for decision makers to better integrate environmental, social, and economic concerns. It provides the opportunity for all stakeholders in a proposed action including the public to participate in the identification of issues of concern, practical alternatives, and to identify opportunities to avoid or mitigate adverse impacts. The EIA is in place to ensure that environmental issues are raised when a project or plan is first discussed, and that all concerns are addressed as a project gains momentum through to implementation. Recommendations made by the EIA may necessitate the redesign of some project components, require further studies, and suggest changes that alter the economic viability of the project or cause a delay in project implementation. To be of most benefit it is essential that an EIA is carried out to determine significant impacts early in the project cycle so that recommendations can be built into the design and cost-benefit analysis without causing major delays or increased design costs. To be effective once implementation has commenced, the EIA should lead to a mechanism whereby adequate monitoring is undertaken to realize environmental management. An important output from the EIA process should be the delineation of enabling mechanisms for such effective management. A project of this magnitude will require an EIA, a variety of key environmental overviews, inventories, and assessments to identify the parallel environmental studies required, as well as highlight the potential for adverse impacts within the EIA process. This will illustrate probable studies; however, one of the initial steps of an EIA is to meet with Alberta Environment to determine the scope and the terms of reference.
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REFERENCES 2006-2007 Canadian Skier and Snowboarder Facts and Stats. Canadian Ski Council. September 2007. 20/20 Vision of the Future Town of Grande Cache Strategic Sustainability Plan. Retrieved from The Town Official Government Web Site. Accessed January 24, 2008. A spotlight on Whistler Blackcomb, British Columbia, Canada. Skisnowboard.com. Accessed on January 29, 2008 from source: http://www.skisnowboard.com/whistler/index.html Government of Alberta Strategic Business Plan 2007-10. Accessed January 28, 2008 from source: http://www.finance.gov.ab.ca/publications/budget/budget2007/govbp.html Grande Cache A Natural High. Tourism Investment Symposium. 2007 Accessed on January 20, 2007 from source: www.grandecache.ca Grande Cache Ski Area Analysis. Grande Cache. Planning now for Revelstoke's future. Revelstoke Times Review [serial online]. March 7, 2007. Available from: ProQuest Information and Learning, Ann Arbor, Mi. Accessed January 26, 2008. Revelstoke Mountain Resort opens. Arrow Lakes News [serial online]. January 10, 2008:A16. Available from: ProQuest Information and Learning, Ann Arbor, Mi. Accessed January 26, 2008. Sport Canada Strategic Plan 2004 – 2008. Sport Canada. Accessed January 28, 2008 from source: http://www.pch.gc.ca/progs/sc/pubs/strat_plan/plan-04-08_e.pdf Alberta Economic Development. The Economic Impact of Downhill Skiing at Alberta’s Rocky Mountain Ski Resorts. Prepared by PricewaterhouseCoopers. February 2000. Canadian Newsstand Core. ProQuest. Accessed January 28, 2008 from source: <http://www.proquest.com.ezproxy.lib.ucalgary.ca/> Edwards, Trent. Mountain resort bucks back to life; Huge snowfall, planned infrastructure golden for Kicking Horse :[Final Edition]. Calgary Herald [Calgary, Alta.] 29 Mar. 2007,F8. Canadian Newsstand Core. ProQuest. Accessed on January 29, 2008 from source <http://www.proquest.com.ezproxy.lib.ucalgary.ca/> Fristoe, Nate. Drivers of Growth. Canadian Ski Council. May 2006. Fristoe, Nate. The Canadian Model For Growth. Are you hot or not? A Quick Guide to the Performance Metrics that Matter. Canadian Ski Council. August 2007. Fristoe, Nate. The Canadian Model For Growth. Canadian Ski Council. August 2007. Fristoe, Nate. The Canadian Model For Growth. Progress and Challenges. 2005/06 Results From the National Model For Growth. Canadian Ski Council. February 2007. Fristoe, Nate. The Regional Models For Growth. Canadian Ski Council. March 2006. Good, Marcie. Ski resort's raison d'être: Not just skiing. The Globe and Mail. 18 December 2007 B.10. Ogilvy, John and Buckingham, Jim. A Plan for a Ski Area at Grande Cache, Alberta. Grande Cache. May 1991.
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Penner, Derrick. Resort Stokes Revelstoke; Some Residents Fear Mini-economic Boom Could Create ‘another Banff’. Calgary Herald. January 13, 2008, pg. C1. Rooney, David. No hidden agenda: candidate Dave Raven. Revelstoke Times Review [Revelstoke, B.C.] 28 Mar. 2007,4. Canadian Newsstand Black Press. ProQuest. Accessed January 29, 2008 from source: <http://www.proquest.com.ezproxy.lib.ucalgary.ca/> Van Manen, Mark. Dare to tame Kicking Horse :[Final Edition]. Leader Post [Regina, Sask.] 9 Mar. 2007,F1 Front. Canadian Newsstand Core. ProQuest. Accessed January 29, 2008 from source: <http://www.proquest.com.ezproxy.lib.ucalgary.ca/> Youds, Mike. Province’s pre-eminent winter resort grew from wild roots. Kamloops Daily News. Kamloops, BC.: Jan 12, 2008. pg C1.FR
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