By Staff
July 4th, 2016
BURLINGTON, ON
If you want to put your name up in lights on a piece of city property – get ready to gulp when you see the cost. And gulp again when you see the deal a local law firm got on the naming rights for the Haber Recreation Centre.
Funds for the rebuild of the Nelson pool have yet to be found – sponsorship is being looked at seriously. Big bucks!
During a discussion on fund raising for the Nelson pool reference was made to the consultant’s analysis which estimated value for a Facility Naming Sponsor could range between $300,000 to $350,000. It is also recommended that the payment terms could be as follows:
• $30,000 – $35,000* annually for an agreement term of 8 to 10 years
• Incentive to pay upfront: 15% discount = $297,500 – $250,500
• Paid within 3 years: 10% discount = $315,000 – $270,000
Additional terms and incentives / interests would also naturally become a part of any negotiations and subsequent agreement.
Based on the staff direction provided to members of city council and the interests of the current project, staff is suggesting that the renaming of Nelson Outdoor Pool be considered as outlined in the Fundraising Plan. For businesses, organizations or individuals not wanting to consider a full naming sponsorship, a donations option may also be available to suit their specific interest and intent.
A potential renaming of Nelson Pool be considered for the following reasons:
• The estimated financial value for a naming sponsor of $300,000 to $350,000 is quite reasonable for a 10-week summer only operation.
• Supports Council interests in finding new revenue sources to support capital projects.
• Sponsorships are primarily about partnerships and how organizations and business can help support local interests. This project is another example that exists to create another partnership within the community.
• The pool is one component within a larger destination known as ‘Nelson Park’. As such, renaming the pool within the park has less impact to the overall name of ‘Nelson’ as it is known (e.g. “ABC Pool at Nelson Park”).
• Currently, all way-finding signage is referenced as Nelson Park. Neither Nelson Recreation Centre, Nelson Pool nor Nelson Arena is referenced within the City of Burlington way-finding program. In addition, there is no signage at the site location that references the pool name, so to change the name would not require a number of sign updates.
• The outdoor pool facility is relatively compact and could easily be marketed as a single asset from a naming perspective.
A corporate name at one of the busiest recreation centers in the city. The incorrect spelling of Welcome was part of the deal?
The consultant’s report noted that a potential naming sponsor would likely be from a local business or organization, similar to the outcome found for the Haber Recreation Centre.
The Haber deal was for $1.36 million for 20 years. Assuming that $1.36 million amounts to $1,360,000.00 – paid out over 20 years amounts to $68,000 a year.
Compare that to the $300,000 being suggested for the Nelson pool that is operational for 10 weeks – and WOW did Haber every get a deal
Organizations who are vested in the community are those who would typically like to support this type of local community interest. National organizations or businesses are more likely to support larger more profile opportunities that have broader national or regional exposure like a major stadium or arena in a large city.
While this particular location has many elements all with the name ‘Nelson’ referenced in some manner – Nelson Pool, Nelson Stadium, Nelson Recreation Centre / Arena, Nelson Park, Nelson Skateboard Park, and Nelson Youth Centre, staff is recommending that only Nelson Pool be considered for potential renaming. Moreover, staff is also not recommending that specific elements within the pool (e.g. amenities or features like a splash pad) be considered for potential naming as it could become quite confusing to the public as well as reduce the value of the overall naming opportunity.
Why have we not looked for a Facility Naming Sponsor to help cover costs for the Performing Arts Centre or The Pier? Perhaps Got Junk or Badger Waste Disposal could get a good deal and help relieve the stress on our wallets. Why is it taking sooo long for Nelson Pool to be back in operation? Closed for 2015,2016 and also 2017? This is ridiculous. The majority of our residents do not have a private pool and need Nelson Pool to be open each summer, plus all the city programs and students hired each summer to work at Nelson Pool.
In response to the Ariens comment:
Based on the consultant’s analysis the estimated value for a Facility Naming Sponsor could range between $300,000 to $350,000. It is also recommended that the payment terms could be as follows:
• $30,000 – $35,000* annually for an agreement term of 8 to 10 years
• Incentive to pay upfront: 15% discount = $297,500 – $250,500
• Paid within 3 years: 10% discount = $315,000 – $270,000
“Compare that to the $300,000 being suggested for the Nelson pool that is operational for 10 weeks – and WOW did Haber every get a deal”
Why would you do that? On an annualized basis, you would compare the $65K / year for Haber to the $30-$35K / year for Nelson Pool. Maybe Haber did get a good deal in comparison given the usage of the facility, but they did pay for 20 years up front, so it doesn’t seem out of line to me.