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Yellowknife Climbing Club’s Proposalto the City of Yellowknife

for Building a Climbing Wall in the Fieldhouse

May 24, 2016

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Definitions ..................................................................................................................................... 3

Concept ......................................................................................................................................... 4

Yellowknife Climbing Club ............................................................................................................ 5

Description of current YKCC services ....................................................................................... 6

Current YKCC Public Bouldering Gym Usage (Drop-Ins) ......................................................... 7

2015-16 YKCC Board of Directors ............................................................................................ 8

Other contributors to this proposal ............................................................................................ 9

Business Model ........................................................................................................................... 10

Jurisdictional precedent ........................................................................................................... 10

Description of proposed services ............................................................................................ 11

Location & facilities .................................................................................................................. 11

Proposed specifications .......................................................................................................... 11

Proposed operating hours ....................................................................................................... 13

Proposed operational roles ..................................................................................................... 14

Benefits to the City of Yellowknife ........................................................................................... 15

Safety, Risks, and Assumptions .............................................................................................. 16

Pricing strategies ..................................................................................................................... 18

Project Development ................................................................................................................... 19

Proposed project schedule ...................................................................................................... 19

Estimated project cost ............................................................................................................. 20

Construction process and technical specifications .................................................................. 20

Funding ................................................................................................................................... 22

Market Analysis ....................................................................................................................... 23

Market Demand ................................................................................................................... 23

Consumer behaviour ........................................................................................................... 23

Target market ...................................................................................................................... 23

Financial Statements and projections ......................................................................................... 24

Proposed actions ........................................................................................................................ 25

Appendix 1: Sub-Committee Terms of Reference ...................................................................... 26

Appendix 2: WallTopia Quote ..................................................................................................... 27

Appendix 3: Financial Statements and projections ..................................................................... 28

Appendix 4: Other proposed alternatives .................................................................................... 29

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Definitions Belaying: Belaying refers to a variety of techniques climbers use to exert tension on a climbing rope so that a falling climber does not fall to the ground when they lose their grip on a wall. Bouldering: Bouldering is a form of rock climbing that is performed without the use of ropes or harnesses. While it can be done without any equipment whatsoever, most climbers use climbing shoes to help secure footholds, chalk to keep their hands dry, and bouldering mats to prevent injuries from falls. Bouldering problems can range from 2 -5 metres in height. The height limit is based on the quality and depth of protective padding. Top roping: Top rope climbing (or top roping) is a style in climbing in which a rope, used for the climber's safety, runs from a belayer at the foot of a route through one or more carabiners connected to an anchor system at the top of the route and back down to the climber, usually attaching to the climber by means of a harness. Top rope belay anchor: Located just above the top of the wall, this anchor system consists of two fixed ring type anchors or a welded bar mounted to a plate extending 4 to 6 inches out from the face of the climbing surface. Climbing rope is secured by running through both rings or around the bar one and a half times.

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Concept The Yellowknife Climbing Club (YKCC) has approached the City of Yellowknife with a proposal to initiate building a full sized climbing wall in Yellowknife. The YKCC proposes a high quality climbing wall to be located in the lobby of the Yellowknife Fieldhouse. It would offer top roping and bouldering and have supporting programs open to all the residents of Yellowknife. The climbing wall would be designed by the Yellowknife Climbing Club and the City of Yellowknife. It would be administered and staffed by the City of Yellowknife. The YKCC would help maintain the wall and would train staff and volunteers. The climbing wall would be open to the public for use at regular hours at a drop in rate comparable to other climbing walls in Canada. It could offer specialised programs to schools, youth, students, and other groups. From May - August 2015, the YKCC canvassed its members through a survey and informal interviews. The survey fielded 24 results. Aspects of the survey, the interviews, and the Board’s corporate knowledge were used to piece together this proposal. This draft proposal was discussed by the YKCC Board and was brought forward to 16 members at our 2015 AGM and Special Meeting, has been reviewed by a number of specialists, and was presented to 51 YKCC members in May 2016. In addition the YKCC has been working with the City of Yellowknife since December 2015 on a proposed path forward. Demand to support an indoor climbing facility in Yellowknife exists:

The YKCC is an organization that has on average 70-100 members each year; The YKCC has successfully operated volunteer-run bouldering gym in Yellowknife since

2012; The current bouldering gym operates beyond capacity, with a heavy demand for

programing and private rentals (birthday parties); Over 1,500 Yellowknifers have used the bouldering gym at least once (based on signed

waivers); Climatic conditions in Yellowknife are not conducive to year round outdoor climbing and

an indoor climbing wall would be popular during the winter; An indoor climbing wall would fall under Action 18 of the City of Yellowknife’s Action and

Role of Communications and Economic Development (attracting new residents to Yellowknife);

Indoor climbing is an established sport1,2 and has been shortlisted for the 2020 Tokyo Olympics3;

Climbing is an activity that people of all ages and physical abilities can take part in; and Climbing promotes flexibility, rapidly creates strength4, increases endurance and cardio5,

and improves problem solving and decision-making skills6.

1 http://www.climbingbusinessjournal.com/2014-climbing-gyms-trends/ 2 http://www.nytimes.com/2015/07/26/opinion/sunday/the-rise-of-climbing.html?_r=0 3 http://www.olympic.org/Documents/Commissions_PDFfiles/Programme_commission/2020_Shortlisted_IF_Report.pdf 4 Baláš, Jir , et al. "Changes in upper body strength and body composition after 8 weeks indoor climbing in youth." Isokinetics and Exercise Science 17.3 (2009). 5 Mermier, Christine M., et al. "Energy expenditure and physiological responses during indoor rock climbing." British journal of sports medicine 31.3 (1997): 224-228. 6 Mazzoni, Erin R., et al. "Effect of indoor wall climbing on self-efficacy and self-perceptions of children with special needs." Adapted Physical Activity Quarterly 26.3 (2009): 259-273.

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Yellowknife Climbing Club The YKCC is a registered not-for profit organization operating in good standing. The club incorporated in January 2010. Our mission is to advocate, promote, and support rock climbing in the Yellowknife area. We focus on access and development of outdoor rock climbing areas; education and instruction of skills, safety, and environmental respect; and social support and connections for rock climbers. To achieve aspects of our mission, previous initiatives have led to the construction and operation of a public indoor bouldering gym. Our current initiative is to promote rock climbing by constructing a full sized indoor climbing wall in partnership with the City of Yellowknife. This would act as a social hub for the Yellowknife rock climbing community, it would promote rock climbing as a sport, it would promote healthy active lifestyles, and it would promote an activity that can be enjoyed for a lifetime. Since 2012 the club has had increasing membership: 7

YKCC volunteer appreciation night

7 The YKCC membership runs on a calendar year (January 1 to December 31).

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2012 2013 2014 2015 2016

Members (2012 present)

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Description of current YKCC services Public Bouldering Gym: The YKCC manages a public bouldering gym. It is open 5 days a week. It is staffed by YKCC volunteers. The YKCC runs private rentals and generally hosts 1-2 private rentals every week that are managed by volunteers. The bouldering gym is administered by the YKCC Board (book keeping and accounting, upkeep, volunteer training and scheduling, etc.). Training: The YKCC has hosted one-off training events, such as route setting. We are organizing an outdoor training sessions for summer 2016. In addition, we had a youth climbing training program in the fall of 2015 that ran weekly for 3 months. Events: Every year the club hosts a climbing competition. It consistently has 60-80 competitors for the one-day event. It is generally comprised of 25% youth (under 18). In addition, the club focuses on other events, such as Halloween night (over 41 youth attended) and ladies night (ladies climb for free). The club will be hosting its 2016 competition in September.

Youth climbing competition

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Current YKCC Public Bouldering Gym Usage (Drop-Ins)

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2015-16 YKCC Board of Directors The 2015-16 board of the YKCC consists of the following individuals: President - Eric Binion Vice President - Marrissa White Treasurer - Jinal Shah Secretary - Sara Wong

Director - Susan Saunders Director - Karen Dunlop Director - Chris Oland

2015 YKCC AGM and Special Meeting

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Other contributors to this proposal The YKCC reached out to a variety of specialists outside of the Board who reviewed and provided input to this proposal. Eric Frenette - Former YKCC Board President and Treasurer; Certified General Accountant Norm Binion - Financial Advisor and Chartered Investment Manager; University instructor for business planning and financial risk management Jeremy Binion - Financial Advisor; former climbing wall manager in Vancouver Dave Mahon - YKCC member; Gym Improvement Sub Committee. Angus Smith - Former YKCC Board Director Shin Shiga - YKCC member; Gym Improvement Sub Committee Yasen Nikolov - Distributor for WallTopia In addition, the proposal was presented at the 2014-15 YKCC AGM (Dec 2015) to 16 YKCC members and at the Crazy Like A Fox event (May 2016) to 51 YKCC members.

May 2016 Crazy Like a Fox event

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Business Model Clubs partnering with municipalities is common. We have compiled a number of examples that demonstrate the range of partnerships that have been used with building and maintaining climbing walls in municipal/public facilities.

Jurisdictional precedent Cube (Nelson, BC): Kootenay Climbing Association decided to open a non-profit climbing facility after the closure of the commercial climbing gym three years ago. Finding a facility to build the gym took the better part of a year. The group was able to lease a section of the gym in the City-owned Mary Hall in 2013.Powered by a core group of 20 and a board of six, a fundraiser push in the summer of 2013 saw $137,000 raised in four months and construction began. The total cost of the project was $140,000.The Climbing Association runs all the programming and administration and leases the property from the City of Nelson for $1 a year. Boulders (Saanich, BC): The Boulders Climbing Gym is a not-for-profit society in Saanich, with the mandate of making climbing accessible for everyone, regardless of ability or ability to pay. The gym is located in a community facility in a public secondary school and is a unique social enterprise. The gym started off small but expanded with federal funding. It now has over 13,000 square feet (1,208 square metres) of climbing space, making it the largest gym in western Canada. It provides adaptive recreation and rehabilitation programs, youth recreational and competitive programs, as well as facilitating a climbing academy at Stellys Secondary School. Parkgate Community Centre (North Vancouver, BC): The indoor climbing gym at Parkgate is a 30 by 24 ft modular wall that includes 400 different holds and 12 different routes. The community centre does not offer drop-ins, but focuses on programming, day camps, and special events, such as birthday parties. Community centre staff have been trained to belay climbers. Southland Leisure Centre (Calgary, AB): The City of Calgary has a 25 by 60 ft climbing wall with an additional 12 by 24 ft bouldering wall. The wall was designed for all levels and encompass a wide range of challenges. The City charges the same rates it does for all of its other admissions. Elevation Place (Canmore, AB): The Town of Canmore has an 11,000 square foot gym with 15 m heights and over 40 routes. It uses seven automatic belay systems that require minimal training or experience and has extensive bouldering. The town charges the same as its admission for other admissions.

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Description of proposed services The proposed climbing wall would offer the following services:

A climbing wall for top roping for people who have demonstrated the ability to safely engage in these activities and supervised by the YKCC;

Bouldering gym for drop-in and private rentals; Instruction in safe indoor climbing techniques for people new to climbing; Programs targeted to youth, schools, and cross training for other sports; A venue for indoor events, such as birthday parties and other social activities; A venue that local organizations can use for training (e.g., Search and Rescue,

Canadian Armed Forces); and Training for outdoor climbing.

The climbing wall would include a bouldering area and a section that would be used for top roping. Bouldering, for adults, can be up to 6 metres. Youth will be kept to 2 metres/ 8 ft and below. Climbers who have demonstrated their knowledge of the will be able to top rope and belay during certain YKCC supervised times.

Location & facilities The YKCC proposes locating the climbing wall at the Fieldhouse owned by the City of Yellowknife. The Fieldhouse has several advantages to the YKCC in the construction and operation of a climbing gym, including:

Pre-existing infrastructure for recreation, including administrative and maintenance services, parking, cafeteria, washrooms and showers

Long hours of operation Relatively low overhead as the facility is used already and the inclusion of the climbing

gym would result in a negligible increase in operating costs Exposure to a wider range of clientele Relatively low cost for renovation / construction of a climbing wall

Proposed specifications Top rope wall (north side) Width of wall: 46 ft Height of wall: 32 ft Bouldering wall (south side) Width of wall: 46 ft Height of wall: 13 ft Floor area: 860 ft square

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Draft design for a climbing wall in the Fieldhouse lobby

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Proposed operating hours The indoor climbing gym would be open during normal facility hours for the Fieldhouse. The City could run pre-determined hours for special events (e.g., weekdays 3-5 and/or weekends 1-3) that would be used for birthday party or special event revenue generation. The rest of the time would be public access. The following table is an example based on the current Fieldhouse winter hours.

Sunday Monday Tuesday Wednesday Thursday Friday Saturday

Publicbouldering

9a-12p 6p-9p

9a-5p 9a-9p 9a-5p 9a-9p 9a-6p 9a-12p 6p-9p

YKCC top-rope (club hours)

6p-9p 6p-9p 6p-9p

Private rentals

12p-6p 12p-6p

Lessons 5p-6p 5p-6p

SpecialEvents

12p-9p 12p-9p

Public bouldering: Open to everyone. All individuals under 18 years of age must be accompanied by an adult who is at the gym. An adult may supervise up to 4 children who are 6 years and under. There will be no rope climbing. Individuals can only climb up to a certain height. Fieldhouse administration will be responsible for supervision. YKCC top-rope: Only open to YKCC members who have passed the belay certification test. All members under 18 years of age must be accompanied by an adult who is at the gym. An adult may supervise up to 4 children members who are 6 years and under. YKCC volunteers will be responsible for supervision. Private rentals: Can be scheduled in 1.5 hour blocks. All individuals under 18 years of age must be accompanied by an adult who is at the gym. An adult may supervise up to 4 children who are 6 years and under. There will be no rope climbing. Individuals can only climb up to a certain height. Fieldhouse administration will be responsible for supervision. Lessons: YKCC volunteers will run training and programming. YKCC volunteers will be responsible for supervision. Special Events: The YKCC can reserve times for special events, such as bouldering or top-rope climbing competitions. YKCC volunteers will be responsible for supervision.

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Proposed operational roles The YKCC proposes the following roles:

Role City of Yellowknife YKCC

Administration X

Wall and mat maintenance & inspections

Structural Ropes, routes, anchors,

Supervision X - bouldering X - top rope belaying

Training & programming X - administration X

Purchasing capital (ropes, harnesses, shoes, mats)

X X

Fundraising X

Special events X

Administration: The City will:

Hold the insurance coverage necessary. Take care of all payment and accounting for the indoor climbing gym. Provide access to a digital waiver kiosk (computer or tablet). For public bouldering, the

digital waiver will have an orientation video new users must watch in order to sign off on the waiver (more detail below regarding digital waivers).

Book, administer, and supervise (if necessary) private rentals for public bouldering (i.e., birthdays)

Wall maintenance and inspections: The City will:

Undertake annual structural inspections of the climbing wall. Provide funding for any structural repairs to the wall and the mats.

The YKCC will:

Undertake inspection for ropes, routes, anchors. Set routes.

Supervision: The City will:

Provide the supervision necessary during public bouldering hours. The YKCC will:

Provide certification and supervision for top rope belaying during club hours.

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Training & Programming: The City will:

Provide administration for training and programming. Pay the YKCC to undertake the training and programming.

The YKCC will:

Provide training and programming when possible. Provide volunteers for training and programming.

Purchasing capital: The YKCC and the City will work together if there needs to be additional capital purchased. Fundraising: The YKCC will

Fundraise for programming, purchasing additional capital, training, and hosting events. The YKCC would continue to operate as a not-profit with a board of directors. The directors would continue to coordinate and train volunteers and make sure that the YKCC was adhering to its established roles. The YKCC would close its current climbing wall and would shift focus from administering and maintaining a climbing wall to running programming, hosting climbing events, and organizing training opportunities.

Benefits to the City of Yellowknife The indoor climbing wall would assumingly increase overall usage of the Fieldhouse. Usage could increase during the summer, as it would allow parents and family (children off school for the summer break), to engage in an additional activity. For further information see the Market Analysis below.

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Safety, Risks, and Assumptions Liability Risk This would include liability issues associated with accidents occurring during use of operation of facility. Climbing is viewed as a risky sport, and while this perception does not accurately reflect the reality of climbing in a controlled indoor environment, liability issues could potentially arise due to misuse of equipment. Volker Schoffl, a physician and climbing injury expert, conducted research on the rate of injuries at an indoor climbing wall in Germany. He reported that 0.02 injuries occurred per 1000 hours of climbing time. Out of 515,337 participants registered in the study he reported 30 injuries in total over a five year period. None were fatalities. This figure is similar to previous studies on indoor climbing and is low in comparison to other sports. Competitive surfing, for example, experiences 13 injuries per 1000 hours and rugby experiences 91 injuries per 1000 player hours. We believe it is likewise reasonable to assume that other indoor activities such as hockey, soccer, basketball, football and ultimate frisbee would post higher injury rates per 1000 hours than indoor climbing. Three basic elements need to be addressed. First, an effective warm-up before climbing reduces the risk of injury. Second, it is important that staff and climbers know their knots and equipment. Third you need competent belaying, which requires practice. Inattentive belaying is the cause of many climbing accidents. Many of these injuries are preventable through proper safety instruction, equipment instruction, and belay and knot instruction. Digital waivers and orientation video The City of Yellowknife will require every person using the facility to demonstrate that they have the required skills to safely boulder during public hours. In order to do so, the YKCC suggests setting up a digital waiver kiosk. At the kiosk there will be a computer or tablet. New users to the gym will be required to watch a 2-3 minute orientation video that describes the rules and safety of the gym. People would then sign the digital waiver. The program would collect and compile all the waivers automatically. If popularity of the wall renders a single kiosk insufficient, the City can always set up more kiosks.

Revenue Risk This would include income generated by the gym is not sufficient to cover the initial capital purchase or operational expenses. The YKCC has identified several strategies to mitigate this risk:

The YKCC will encourage the purchases of membership and the purchase of flexi passes. Membership funds can funnel into YKCC training programs. Flexi passes will provide certainty to the City of Yellowknife with respect to revenue generation.

An example of a digital waiver kiosk used down south.

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The YKCC has provided a cash flow analysis. The figures demonstrate that a City-run gym would be feasible.

Control Risk This would include making sure people who use the gym have paid, or have been certified, etc. The YKCC has identified several strategies to mitigate this risk based on best practices at other climbing walls:

Once trained to climb safely on the top rope areas of the wall, climbers will have a card that is attached to their harness (bright yellow/pink). The high visibility of these cards will allow staff at the desk to glance over and quickly determine if the person using the device has been trained.

The climbing wall will need to have a low wall or glass divide around it to keep people from climbing who are not supposed to be in there. The door can be similar to the one for the running track (i.e., opened by a pass card or opened by City staff once paid/waivers fills, etc.)

Lifespan of project The lifespan of the proposed wall is based on heavier usage in southern cities, so it can be assumed that the climbing wall would get a few more extra years than the numbers provided below.

Companies, such as Walltopia, provide 1 year guarantees (warranty) for the steel construction and panels of their climbing walls.

Wall structure has a suggested lifespan of 15 years. Panels would need to be repainted every 5-7 years. Flooring may need to be replaced every 5 years. The wall is transferable and could be moved to a new location (e.g., new city facility).

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Pricing strategies The YKCC proposes two admission options. Option 1: Current City Admission Fees The City, for sake of standardization, could use its existing Admission Fees that it uses for the Fieldhouse. This would include single admissions, punch passes, and flexi passes. Option 2: Custom Admission Fees When the YKCC completed its 2015 survey, it asked members how much they would be willing to pay to climb in a larger facility. The results showed that Adults (18-59) were willing to pay $14 - $16 for a single admission. These proposed prices are comparable with indoor climbing gyms elsewhere in Canada. Members also noted that they would pay $61+ a month for a pass. With a custom admission fee, the City would be able to have more certainty with revenue generation. The YKCC would request that YKCC members be offered a discount (10%) and that YKCC Board and volunteers receive a discount (35% in exchange for sweat equity). In addition, the current gym rents its space for birthday parties and private rentals. We charge $150 for 2 hours. We generally have 6-10 private rentals a month.

Adult Youth, seniors, armed forces

Drop-in Day Pass $15 $10

10 visit punch card $120 $80

One month pass $75 $50

Three month pass $180 $120

Annual pass $450 $300

Shoe rental $3 $1

Harness rental $3 $1

Late night / power hour (last hour of operation)

$7 $5

Birthday/special event (1.5 hour rental, inc. use of shoes & harness)

$150 per group $150 per group

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Project Development For capital costs, the YKCC has pulled estimates from other climbing wall developments in the south. The business plans catered to non-profit organizations, such as the YKCC, building within existing city facilities.

Proposed project schedule

Phase Key result Actions

1 Concept Interest from City of Yellowknife

Conceptual idea (demonstrate viability and benefits)

2 Approval in principle (Current stage: May 2016)

Agreement with City of Yellowknife

Mutual acceptance of the business plan & fundraising

3 Project preliminary design Conceptual model of climbing wall

Undertake structural review

Project decision point

4 Detailed design Construction plans Contract wall construction company

5 Construction Completion of climbing wall Adequate capital & business operation plan in place

6 Operation Climb on! Completed

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Estimated project cost The estimated total cost for this project is $185,050. This cost includes:

1. Climbing wall and flooring (inc. shipping and installation): $140,050 2. Structural modifications to Fieldhouse: $5,000 3. Northern construction contingency (~16%): $30,000 4. Additional equipment (ropes, shoes, harnesses, etc.): $5,000

Please see Appendix 2: Complex Offer from Walltopia for a complete breakdown of line item 1 (climbing wall and flooring, inc. shipping and installation). In the event of moving forward, the City of Yellowknife and the YKCC would need to get a new quote with more accurate specifications.

Construction process and technical specifications Most climbing walls start with a custom steel superstructure to support the climbing walls. The structure is then covered with panels that become the climbing surface; these panels come in a variety of materials, colors and finishes. Each panel has a grid of t-nuts (threaded nuts) that allow you to bolt modular climbing holds to the wall.

Access behind wall A minimum of 12 could be left behind all climbing surfaces to serve as the maintenance and inspection area for the ongoing maintenance of the climbing wall and modular hold attachment hardware (T-nuts). If the design permits, this area may also be used as storage area. It is not to be intended to be used by the general public and will not be built as such. Access into this area will be provided by the inclusion of doors or hatches (as appropriate) which will be finished with the same texture as the climbing walls and which will not detract from the visual or functional aspects of the climbing walls.

PrefabricatedThe steel superstructure will be prefabricated in the facility and shipped to the job-site upon completion. Large base plates welded to vertical posts begin the structure. Horizontal and diagonal welded steel braces are added as per blueprints. All work will be completed by the road-crew, who are experienced in field installations using our own welding equipment. Once the superstructure is complete, the steel panels that make up the wall itself are installed. These panels are welded together every two feet, and welded back to the superstructure every six feet or less. Next comes the plywood, which is attached to the steel panels using power actuated tools. Finally the lathe and texture are applied and painted. Belay anchors and other climbing wall hardware components are installed after the wall surface is completed. Installation of the modular hand and foot holds are the last to install. Steel framing The entire climbing wall framework and surface paneling will be manufactured using welded steel. Surface panels will be prefabricated using 2” angle material. The structural framework of the climbing wall will consist of welded Hollow Structural Section.

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InstallationThe steel superstructure will be prefabricated in the facility and shipped to the job-site upon completion. Erection of the steel will occur once the footings have cured. This process involves epoxy anchors into the footings. Large base plates welded to vertical posts begin the structure. Horizontal and diagonal welded steel braces are added as per engineering drawings. All work will be completed by the road-crew personnel who are experienced in field installations using our own welding equipment (crew are all covered by WSIB and have their WHIMIS and Fall Arrest certificates). Rented equipment will include scissor lifts, boom lifts and articulating boom forklifts. Once the steel structure is completed the surface is attached. The polymer fiberglass panels will be attached to steel plates and welded back to the superstructure with a series of bracing.

International standards The Climbing Wall Association has published Design and Engineering Specifications for indoor climbing walls in America. There are also standards from the European Committee for Standardization: Artificial climbing structures – Part 1: Safety requirements and test methods for climbing walls with protection points (EN 12572-1:2007) and Artificial climbing structures – Part 2: Safety requirements and test methods for bouldering walls (EN 12572-2:2008)

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Funding The YKCC would ask the City of Yellowknife to add the proposed project as a budget line item for the 2017 Yellowknife City Budget (Capital Funding for Capital Projects). The YKCC has approximately $30,000 in capital and liquid assets available to contribute. The YKCC would also apply for grants from the Federal Government, the GNWT, the Yellowknife Community Fund, the City of Yellowknife Community Service Grant, and would fundraise from members, the public, and corporate sponsors. The YKCC would put up a Donors’ List at the future wall for donations (less than $250, $251-1000, $1001-2500, $2501+ ). The YKCC is confident it could raise money to contribute to this project and this amount could be discussed with the City during the creation of a more formalized agreement.

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Market Analysis

Market Demand Across the country, indoor climbing gyms have become a popular location for adults and children to exercise and socialize. For many people, climbing gyms have become the next urban sports craze and the new cross-fit form of exercise. Climbing has gone from something done by only a select few to an activity enjoyed by tens of thousands across the country. Climbing walls are finding their way into public schools and universities, parks, and even on cruise ships. Advertisements featuring climbers have become more and more prevalent. All of this has led to climbing becoming more of a mainstream activity. Another of the key attributes of a climbing gym is that a person does not need to have previous climbing experience in order to be a customer. This allows climbing gyms to draw customers from nearly every demographic. WallTopia, one of the leading manufacturers of climbing walls, reported a three hundred percent increase in business during the four years from 2010-2013. By creating a unique experience and catering to the specific local needs of the community a positive community environment is built. Greg Thomsen, Managing Director of Adidas Outdoor, projected climbing gyms would double in the next few years. His research estimates that globally over one thousand new people a day are starting to sports climb.

Consumer behaviour People typically climb for two to three hours at a time, with studies estimating the average climbing time to be two hours and forty-seven minutes.

Target market Demographic data from studies estimates around 63.6% of climbers are male and 36.4% female. The age range is between 8 and 80, with a median of 34 years old. The largest age segment is 20 to 45 years old and middle to upper middle class, based upon affordability. Users are typically within a 20 minute driving distance.

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Financial Statements and projections YKCC considered existing experience at its current climbing wall and then estimated future growth based on marketing and promotion by the City of Yellowknife and the YKCC. The climbing walls quoted by WallTopia are higher than originally projected, so based on the cash flow estimates from operations and the capital costs that would be incurred by the City of Yellowknife the break even on recovery of the capital costs of the City of Yellowknife is about 4.5 years based on conservative assumptions. Please see Appendix 3 for a more detailed breakdown.

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Proposed actions The YKCC recommends that Council:

1. Add as a budget line time; 2. Direct Administration to work with the YKCC on finalizing an agreement. This

agreement would include City/YKCC roles, a legal review, a structural study, a feasibility study, funding arrangements, and a proposed project schedule for 2017; and

3. Direct Administration to have an assessment finalized by Q3 in order to add the proposed project as a budget line item for the 2017 Yellowknife City Budget (Capital Funding for Capital Projects).

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Appendix 1: Sub-Committee Terms of Reference

Gym Improvement Sub-Committee Authority & Chairing The YKCC Board of Directors will establish the Gym Improvement Sub-Committee. The YKCC President will chair the committee. The committee is responsible to the YKCC Board of Directors and can be composed of active YKCC members-at-large. Mandate & Goals The primary mandate of the committee will be presenting options to YKCC members for the improvement of a Yellowknife climbing facility. Specifically, the committee will:

Provide advice and options on all aspects of climbing wall provision, location, design, and management;

Gather and collate information on existing climbing walls; Provide advice and technical recommendations to YKCC members based on

meetings with the City of Yellowknife staff; Establish a funding target and initiate a fundraising campaign; Provide YKCC members a series of options to vote on; and Pursue the decided option.

Frequency The committee will meet on an as needed basis. Record of meetings The minutes will be recorded by the committee. Reporting The committee will report back to the Board via the President. The committee will present to the YKCC members. Term The committee will operate until the 2016 YKCC AGM (1 year).

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Appendix 2: WallTopia Quote

excludes appl. taxes

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Appendix 3: Financial Statements and projections The following assumptions were made: Sales projections were based on current usage. We averaged out the current usage to 4 drop-ins per day (Feb 2015 – May 2015). We factored in current demographic usage: 75% adults; 25% youth and used Option 2 pricing: $15 adult; $25 youth. We assumed 25% of users would need to rent shoes or harness.

Adjustment due to extended hours and days (30%): New wall would be open 7 days a week, 12+ hours a day.

Adjustment due to a better location (20%): Current location is difficult to get to without a

car and would be closer to town/services.

Adjustment due to a better facility (20%): We know more people will drop-in more often if there are better services.

Days per week new wall will be open: 7 Base number/week: 7 x 4 = 28 Adjustments (based on above): (0.3 + 0.2+-0.2) = 0.7 Projected numbers: 28 x (1 + 0.7) = 48 Monthly: 4 weeks x 48 = 192 drop-ins Annual: 52 weeks x 48 = 2,496 drop-ins Annual private rentals: 53 53 x (1+0.7) = 90 projected @ $150/ rental

YKCC/City

ofYKClim

bingWall

SALESPRO

JECTIONS

SALESPRO

JECTIONS

1stmonth

2ndmonth

34

56

78

910

1112

TotalsYear1

`Drop

InDay

Pass2640

26402640

26402640

26402640

26402640

26402640

264031680

TenVisitPunch

Card0

00

00

00

00

00

00

One

Month

Pass0

00

00

00

00

00

00

ThreeMonth

Pass0

00

00

00

00

00

00

AnnualPass0

00

00

00

00

00

00

BirthdayPartiesand

PrivateRentals

11251125

11251125

11251125

11251125

11251125

11251125

13500Shoe

andHarnessRental

240240

240240

240240

240240

240240

240240

2880GrossSales

40054005

40054005

40054005

40054005

40054005

40054005

48060Less:

Returns&Allow

ances0

NetSales

40054005

40054005

40054005

40054005

40054005

40054005

48060OtherCash

In(interest,royaltiesetc.)

0

TotalIncome

40054005

40054005

40054005

40054005

40054005

40054005

48060CreditM

anagement

Sales(cash)1802

18021802

18021802

18021802

18021802

18021802

180221627

Sales(credit)1802

18021802

18021802

18021802

18021802

18021802

180221627

Receivedon

Account401

401401

401401

401401

401401

401401

4014806

BadDebtExpense

00

00

00

00

00

00

0

YKCC/City

ofYKClim

bingWall

BASICCASH

FLOW

STATEMEN

T

Year1Start

up1stm

onth2nd

month

34

56

78

910

1112

Totals

CASHIN

Sales (cash)3605

36053605

36053605

36053605

36053605

36053605

360543254

Received on A

ccount401

401401

401401

401401

401401

401401

4014806

Total C

ash In-

40054005

40054005

40054005

40054005

40054005

40054005

48060T

otal Cash A

vailable4005

51208634

1214915663

1917822693

2620729722

3323636751

4026540265

FixedAssets

Climbing

Wall(City

ofYellowknife/YKCC)

185,050.00185,0500000

TotalFixedAssets

185,050.000

00

00

00

00

00

0185,050

TotalCashand

Assets185,050

4,0054,005

4,0054,005

4,0054,005

4,0054,005

4,0054,005

4,0054,005

233,110

Operating E

xpensesRent

00

00

00

00

00

00

00

Repairs&Maintenance

0100

100100

100100

100100

100100

100100

1001,200

Utilities

00

00

00

00

00

00

00

Telephone0

00

00

00

00

00

00

0Interest&

BankCharges

00

00

00

00

00

00

00

Insurance0

2,5000

00

00

00

00

00

2,500Licenses&

Fees0

00

00

00

00

00

00

0Office

Expense(Supplies/postage)

040

4040

4040

4040

4040

4040

40481

Dues&Subscriptions

00

00

00

00

00

00

00

ProfessionalFees0

00

00

00

00

00

00

0Website

&Netw

orkSupport

050

5050

5050

5050

5050

5050

50600

Advertising0

0100

100100

100100

100100

100100

100100

1,101Marketing

&Prom

otion0

200200

200200

200200

200200

200200

200200

2,403PayrollExpenses

00

00

00

00

00

00

00

Salaries&Wages

00

00

00

00

00

00

00

PayrollTaxes0

00

00

00

00

00

00

0Benefits

00

00

00

00

00

00

00

Training&Developm

ent0

00

00

00

00

00

00

0Other

00

00

00

00

00

00

00

Non-operating C

osts C

apital Purchases0

00

00

00

00

00

00

Other C

ash Out

00

00

00

00

00

00

0T

otal Cash O

ut0

2,890490

490490

490490

490490

490490

490490

8,285

Monthly C

ash Flow (cash in - cash out)

01,115

4,6298,144

11,65815,173

18,68822,202

25,71729,231

32,74636,260

39,77539,775

Beginning C

ash Balance

00

1,1154,629

8,14411,658

15,17318,688

22,20225,717

29,23132,746

36,2600

Ending C

ash Balance

01,115

4,6298,144

11,65815,173

18,68822,202

25,71729,231

32,74636,260

39,77539,775

29

Appendix 4: Other proposed alternatives The Gym Improvement Sub-Committee did a structured decision making process to determine other proposed alternatives for the YKCC. Ultimately it was decided that working with the City of Yellowknife would be the most feasible proposal.

Definitions

Cost: Overall estimated cost Time to implement: What is the time frame needed to implement? Projected usage: Scale of increase/decrease Feasibility: Is this feasible for the YKCC based on current funding and operations Mandate: Does this alternative work to accomplish the YKCC mandate (To develop the sport of climbing in Yellowknife and area for people of all ages and experience levels)?

Goals: Does this alternative accomplish the YKCC objectives for this project (provide a venue for climbers that includes a larger climbing space and top roping; provide a safe and supportive environment to attract new climbers; provide more exposure to the sport)? Challenges: Does this alternative ameliorate the YKCC challenges (decreases YKCC board and volunteer administration and time commitments; increases YKCC board's ability to focus on other aspects, such as training and programming)?