Kicking Horse Mountain Resort British Columbia

Kicking Horse Mountain Resort

British Columbia

Commercial Planning Study (CPS™)

November 2007

Prepared for

Conducted by

Table of Contents

Executive Summary.........................................................................................1

Strategic Recommendations .........................................................................13

1. Introduction ............................................................................................21

2. Methodology ...........................................................................................23

3. KHMR Strengths, Weaknesses, Opportunities and Threats Analysis ......27

4. Stakeholder and Community Feedback ...................................................31

4.1. Kicking Horse Mountain Resort ...............................................31

4.2. Existing Business Owners and Operators at KHMR .................32

4.3. Town of Golden .......................................................................38

5. Golden Area History and Culture.............................................................43

5.1. History of Golden.....................................................................43

5.2. The Great Outdoors .................................................................44

5.3. Arts and Culture .......................................................................46

5.4. Conclusions for KHMR .............................................................48

6. Economic and Demographic Trends Influencing KHMR..........................51

6.1. Economic Forecast ...................................................................51

6.2. Demographics ..........................................................................54

6.3. Global Tourism.........................................................................56

7. Commercial Vision and Goals ..................................................................59

7.1. Commercial Goals ....................................................................59

7.2. Commercial Vision ...................................................................60

7.3. Resort Personality Concept Map..............................................68

8. Target Market Analysis ...........................................................................69

8.1. Primary Draw Area: Kicking Horse Mountain Resort ...............69

8.1.1. Seasonal “Cold Bed” Residents.....................................69

8.1.2. Overnight “Warm Bed” Visitors....................................72

8.1.3. Employees.....................................................................74

8.2. Secondary Draw Area: Golden Area .........................................76

8.2.1. Golden and Surrounding Area Permanent Residents ...76

8.2.2. KHMR Visitors Staying Overnight Off-Mountain ..........78

8.3. Regional Draw Area: Day Visitors ............................................80

8.3.1. Destination Day Visitors ...............................................80

8.3.2. Trans-Canada Passersby................................................82

9. Competitive Commercial Market.............................................................85

9.1. Kicking Horse Mountain Resort ...............................................85

9.2. Golden......................................................................................88

9.3. Regional Mountain Resorts/Towns/Developments ..................88

9.3.1. Fernie............................................................................88

9.3.2. Panorama Mountain Village..........................................90

9.3.3. Banff..............................................................................92

9.3.4. Canmore .......................................................................93

9.3.5. Revelstoke Mountain Resort.........................................94

9.3.6. Resort Communities Average Rents and Sale

Performance..................................................................95

9.3.7. Strategic Conclusions for KHMR...................................95

10. Commercial Economic Study (CES™).......................................................97

11. Preliminary Commercial and Public Space Program ..............................103

11.1. Planning the Village ...............................................................103

11.2. Planning the Commercial Uses...............................................103

11.3. Preliminary Anchor Uses and Experiences.............................106

11.4. Preliminary Sizes and Back-of-House Functions ....................108

11.5. Placemaking Strategies ..........................................................109

12. Mixed-Use Commercial Design Guidelines ............................................111

12.1. Top 10 Strategies for Planning the Commercial Village From a

Physical Perspective ...............................................................111

12.2. Flow and Integration..............................................................114

12.3. What Should Be Developed in Public Spaces.........................115

13. Assumptions and Limitations ................................................................119

Kicking Horse Mountain Resort Commercial Planning Study (CPS™)

1

EXECUTIVE SUMMARY

Objective

There is a strong desire to develop a fully integrated, mixed-use,

destination mountain village at Kicking Horse Mountain Resort

(KHMR). The objective is for this village to be the social and

experiential heart of KHMR, creating quality of life for homeowners

and generating additional visitation and commercial spending at the

resort. The village should define the personality and essence of

KHMR. In light of these objectives, Live Work Learn Play LLP (LWLP)

analyzed the existing commercial market conditions at KHMR and the

surrounding region in order to develop an overall strategy for the

planning and execution of a village that will fulfill this potential.

Methodology

The Commercial Planning Study (CPS™) is a demand-based

analysis of the target market customers’ propensities to spend time

and money on commercial goods and services. It outlines

opportunities and strategies to maximize commercial visitor traffic

and spending at the development.


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Stakeholder and Community Feedback (Section 4)

KHMR stakeholders expressed a genuine desire to develop the

commercial village as a critical differentiator that will diversify the

mountain’s experience up to 12 months a year. KHMR wants to be

more than just a great ski hill.

Feedback was also obtained through a focus group with existing

commercial operators at KHMR, as well as through meetings and

interviews with stakeholders in the Town of Golden. Several salient

themes emerged from the discussions.

While all acknowledge the continued potential of KHMR, these

external stakeholders expressed a sense of frustration at the apparent

stagnation of development and maintained that the resort has failed

to exceed initial development expectations. They also expressed that

the lack of formal communication channels leaves them out of the

loop and at an information deficit much of the time.

Existing KHMR business owners are finding it increasingly difficult

to continue supporting and funding operating businesses in a

commercial environment that is underdeveloped and feel that KHMR

should be doing more to drive traffic to the mountain, especially in

the summertime, by organizing more events and maximizing public

awareness of existing assets.


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All those interviewed expressed that KHMR should also be

working more collaboratively with the Town of Golden as local

residents are both a natural visitor market and unofficial

spokespersons for the resort.

Golden History and Culture (Section 5)

Golden traces its history back to the building of the

transcontinental railroad through the Canadian Rockies and the

Selkirk Mountains. The railway brought forestry and mining to the

region, and opened up the pristine mountain wilderness for

exploration by those who craved adventure and the outdoors.

Exploring the ample summer and winter activity options afforded by

natural beauty of the area continues to be one of the most significant

attractions for visitors and locals alike.

The region boasts a rich cultural history and the Town of Golden

organizes and hosts a vast array of cultural activities, events and

festivities throughout the year, all heavily supported by local

residents. Fully 7% of the entire regional community are paid

members of its arts council.

As KHMR needs to provide a more diversified offering beyond

simple outdoor recreation and adventure, the resort should capitalize


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on the existing artistic and cultural capital in Golden to expand the

range of activities at the resort and connect to the local community.

Economic and Demographic Trends Influencing KHMR (Section 6)

Visitation to the Rocky Mountains has fluctuated since the late

1990’s. Modest growth is anticipated due to future population

increases in Alberta and Calgary; however this may be offset by

potential declines in U.S. visitation due to pending border crossing

requirements as well as strengthened Canadian and weakened U.S.

dollars.

Higher incomes in combination with an aging population have led

to a substantial rise in the demand for vacation properties and

secondary housing, which bodes well for mountain destinations like

KHMR.

Labour force shortages will likely intensify over the next two

decades, at a time when the maturing travel market will be seeking

more services and higher quality tourism products. In order to remain

competitive, KHMR should focus on strategies to attract and retain a

quality employment base, including affordable housing opportunities

and local services.

Furthermore, as the baby boomer population ages, skiing and

snowboarding will be outpaced in popularity by less strenuous


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pastimes, such as hiking, bird watching, golf, etc., which will, to some

extent, shift visitor growth in the long term to the summer months.

Commercial Vision and Goals (Section 7)

The KHMR commercial village will be a destination, mixed-use,

mountain village that will feel timeless, authentic and organically

grown, driving the essence of the KHMR story and helping foster a

true sense of community. Its personality and offerings will be heavily

based on food and beverage; entertainment; and a variety of

recreational activities. The village will personify a healthy living

environment that is both fun and adventurous, and one in which

mountain learning and one-stop staying become its primary aspects.

Key anchors include restaurants and pubs with outdoor terraces,

hotels, and a spa and wellness experience.

The concept of learning will be embedded into every commercial

and public space experience at KHMR. Trademark institutions like an

Alpine Wellness School, Mountain Learning Institute or even a

University of British Columbia satellite campus, as well as other

educational avenues, will serve as key drivers in characterizing,

defining, and differentiating KHMR over time.

The commercial village will create a place where visitors and

locals alike will feel at once on vacation and at home, and long to


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return year after year. It will provide a rustic, inviting, mountain

village experience that offers a touch of sophistication without an

ounce of pretension. It will be more refined but less expensive than

Banff, have more variety and culture than Panorama Mountain Village,

and have better action and more convenience than Fernie Alpine

Resort.

MAJOR ISSUE: Lack of Critical Mass of Consistent Spending/Visitation, Due to:

Extreme Seasonality (Winter/Skier dependency)

“Week-ality (Monday through Friday)

This is a destination village with a lack of critical mass

In order for KHMR to achieve its fullest potential and for the village to become truly vibrant, viable and able to attract great commercial operators to open their businesses there, it must drive critical mass beyond just skier days.

It must appeal to a broad spectrum of end-users by providing them with a variety of reasons and opportunities to come to KHMR at different times of the year.

Short Term Focus: Drive the Locals

• Must get Golden residents to use and embrace the village as their own

• Consider commissioning an entire strategic paper on how to drive and attract Golden residents to spend time at the resort throughout the year, now and in the future

Long Term Focus: Create a Stand-Alone Village

• As with all successful destination mountain villages. KHMR will have to shift the focus away from skiing and make the mixed-use village stand on its own merits as a destination

• Target only “Best of the best” commercial concepts, operators and experiences

• Create drivers (eg: Mountain Learning Institute, Yoga and Meditation Centre, Alpine Wellness School, Weekend-Long Festivals, Wedding Destination etc.) that will induce people to come visit and stay overnight at the resort at any time of year, regardless of whether or not they ski


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Target Market Identification (Section 8)

The target achievable customers™ were identified within the

following geographic draw areas and segmented based on their

propensity to spend time and money on commercial goods and

services at KHMR. Each of these segments has distinct occupancy and

seasonality patterns (detailed in Appendix 4).

The target achievable customers™ consist of the following

segments:

Primary Draw Area: KHMR

o Seasonal Residents: “Cold Bed Residents”

Occupants of the existing “cold bed” residential units

at KHMR who do not participate in the rental pool.

o Overnight Visitors: “Warm Bed Guests”

Occupants of the "warm bed" residential units who

participate in the visitor rental pool.

o Employees

All employees directly working for KHMR itself, as

well as all 3rd party employees employed by the

hotels, commercial operators and construction

companies operating at the resort.

Attracting the local permanent population and resort employees is critical to the economic viability of the resort in the early stages of development and beyond. Increasing their visitation will increase spending during the week and the off-season.

Appendix 4 provides a detailed breakdown of KHMR customer segments and their current visitation patterns as applied in the Commercial Economic Study (CES™).


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Secondary Draw Area: Golden Area

o Golden and Surrounding Area Permanent Residents

Permanent residents from the Town of Golden and

the surrounding rural area known as Area A of the

Columbia Shuswap Regional District.

o KHMR Visitors Staying Overnight Off-Mountain

Visitors to KHMR staying overnight in regional

accommodations outside KHMR.

Regional Draw Area: Day Visitors

o Annual Destination Day Visitors

Visitors who make an active decision to visit KHMR.

This group includes day skiers.

o Annual Trans-Canada Passersby

People driving through Golden on the Trans-Canada

Highway during the KHMR operating season

(excluding those people driving in trucks).

Competitive Commercial Market (Section 9)

KHMR has the opportunity to be the only integrated, mixed-use

on-mountain resort village within driving distance of Calgary. Neither

Over 1.9 Million vehicles pass through Golden annually, primarily during the spring, summer, and fall. KHMR needs to develop drivers and create reasons for people to travel the 13 km up to the village.


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Banff nor Canmore are adjacent to a mountain, and neither Fernie nor

Panorama offer a complete village experience.

Commercial Economic Study (CES™) (Section 10)

The long-term viability of the commercial village at KHMR 10-12

months a year is contingent on significant visitation and usage from

Calgary residents and other regional travelers during non-skier days,

throughout the summertime as well as the spring and fall. The CES™

reinforces the importance of attracting permanent residents from the

Town of Golden, (represented in the secondary draw area,) in the

early stages of development, as shown in Table 1.

Table 1

This study supports the following development initiatives to be

considered for the site’s commercial development:

How Much Commercial Space Should be Developed

The CES™ estimates that KHMR can support approximately

61,971 total commercial square feet at full build out of residential

% of Total Commercial Spending/Total Spending Target Market 2007 2011 2016

Primary Draw Area: KHMR 60% $2,052,229 75% $4,710,659 87% $22,528,989 Secondary Draw Area: Golden Area

36% $1,227,248 22% $1,393,499 11% $2,920,976

Regional Draw Area: Day Visitors

4% $133,885 3% $208,561 2% $471,253

Total 100% $3,413,362 100% $6,312,719 100% $25,921,218


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and hotel development. Given that there is currently 23,805

square feet of existing commercial, the market will have the

potential to support up to 38,166 more commercial square feet.

This recommendation is based on projections of residential real-

estate absorption, employee growth and increased visitation to

KHMR over the next 10 years.

Commercial Phasing

There is more existing commercial space at KHMR than the

market can currently support. However, the CES™ recommends

building, once development conditions prevail, the stand-alone

“Surveyor’s Bar and Lounge” anchor après-ski/nightlife/evening

entertainment concept in order to energize the village by providing a

destination for Golden residents and KHMR employees.

Subsequently, given the surplus of commercial space relative

to the current economy, the CES™ recommends beginning

phasing in additional commercial space in 2011, allowing existing

commercial operations the opportunity to improve and stabilize

economically.

Preliminary Commercial and Public Space Program (Section 11)

The village at KHMR will offer visitors something other than

conventional shopping. The commercial mix will feature a high

See Appendix 5 for the full CES™.


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proportion of experiential food and beverage and evening

entertainment concepts, as well as large-scale resort anchors such as

hotels and a golf course. KHMR will also develop a series of events,

festivities and rituals that will engage visitors of all ages and all

interests.

Beyond the outdoor restaurants and fun entertainment, the village

will offer recreational, cultural, and educational commercial

experiences. There will be amenities catering to children and families,

and an array of interactive learning-oriented businesses, activities and

institutions connected to health, nature, and the arts.

In these early stages of development, the village must prioritize

“incubator” commercial concepts and activities – such as farmers’

markets and summer BBQ’s – and work to transform the physical

space at the bottom of the mountain into a village base through the

creation of animated patios and terraces where people can eat, drink

and interact.

• Section 11.3 outlines a preliminary list of anchor uses and experiences.

• Section 11.4 outlines the preliminary sizes and operational strategies that

relate to the commercial uses.

• Section 11.5 outlines placemaking strategies that can be utilized to help

bring the commercial vision for KHMR to fruition.


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General Commercial Mixed-Use Design Guidelines (Section 12)

This section outlines the following commercial mixed-use guidelines:

• Top 10 strategies for planning the commercial areas from a

physical perspective;

• Flow and integration of the commercial neighbourhoods;

• The design and program of the public spaces.


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STRATEGIC RECOMMENDATIONS

1. Short and Medium Term Initiatives for KHMR Over the Next 2 Years

a) Before adding new commercial space, KHMR should begin

by improving the existing village and creating a foundation

for a healthy commercial village environment. Specifically,

it is recommended that KHMR focus immediately on:

i) Increasing the critical mass of visitors to and

spending at the commercial village by:

Expanding the range of activities, events,

festivities, and rituals offered at the base of

the mountain, especially during the summer

season;

Targeting the local residents of the Town of

Golden as well as KHMR employees by

creating a place that caters specifically to

them, and by providing a shuttle service

between KHMR and Golden to facilitate

access and decrease dependence on personal

vehicles;

Establishing formalized relationships with

regional tour groups to drive summer traffic;


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Around holidays such as Christmas, Easter,

Canada Day, Thanksgiving, Halloween etc.,

and during the off-season, organizing resort

rituals and special events that will help instil

a sense of community in all end-users;

Creating a village base plaza that offers a

true “sense of arrival” for visitors.

ii) Maximizing the use of the public space at the base

of the mountain (until new commercial space can be

supported), creating a fully integrated, mixed-use

“nucleus of energy” and centre of commercial

attractions and activity, by:

Increasing the amount and variety of outdoor

seating in the Gondola Plaza;

Creating patios and terraces along the

commercial base with seating;

Building a terrace outside the Day Lodge

where people can order appetizers and

drinks;

Installing heat lamps, umbrellas and

atmospheric glow lighting (concept of

“nightscaping”), as well as building fire pits,

to improve, expand and extend daily usage

of the outdoor space.

Appendix 7 Provides a detailed outline of action items and their respective timelines for implementation, as well as conceptual imagery of some of the suggested physical changes.


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iii) Maximizing asset utilization by using existing

commercial space for additional functions. For

example:

Using the Day Lodge as a multi-use space to

host everything from concerts to exhibitions

to children’s activities;

Hosting public cooking classes at the

mountain base, using local produce, during

summer farmers’ markets;

Using the Eagle’s Eye Restaurant as the

setting for a destination cooking school

during the off-season;

iv) Purchasing an existing, genuine surveyor’s cabin and

transferring it to the mountain base to open the

“Surveyor’s Bar and Lounge” as soon as

development conditions allow, and coordinated

with the overall improvement of the plaza.

This will create a new nightlife/entertainment

concept anchor to the existing mini village and

inject life into it by attracting employees and

Golden residents.

v) Creating an independent and financially sustainable

Kicking Horse Mountain Association to ensure that:


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The interests of all resort stakeholders are

always represented;

Formal avenues for communication with

stakeholders exist;

There is a centralized body responsible for

the planning and organization of events,

activities and general resort animation;

There is a centralized body responsible for

the maintenance, repair and care of public

spaces.

b) While continuing to work towards attaining separate

Resort Municipality status, cultivate a better overall

relationship and communication plan with the Town of

Golden to help attract a critical mass of locals to the

mountain on a more regular basis and increase visitation

and spending in low periods during the week and off-

season, specifically:

i) Consider offering “free ski”/reduced fare days, or

other benefits to increase weekday traffic;

ii) Expand targeted family programs (e.g.: father/son,

mother/daughter day or night);


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iii) Build and strengthen relationships with existing

Golden organizations such as Kicking Horse Culture,

the Art Gallery of Golden, the Art Spot Galley, the

Golden & District Museum, Golden Area Initiatives,

the Golden & District Chamber of Commerce, the

B.C. Visitor Information Centre and the Town of

Golden;

iv) Continue attempts to leverage the existing cultural

capital in Golden to add diversity and flavour to the

mountain experience as well as to build stronger

ties to the local Golden community. Some strategic

opportunities for KHMR include:

Becoming a regular venue for hosting

community events;

Attracting local professionals (artists,

photographers, musicians etc.) to run

workshops or teach classes at KHMR;

Developing free bus transportation to

encourage people to travel regularly between

the resort and Golden.

c) Explore corporate sponsorship and branding opportunities

for KHMR infrastructure, for example:


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i) Consider selling the naming rights to the gondola

and organizing events around the sponsor’s brand

or product, like the Volkswagen “Cabriolet” in

Tremblant;

ii) Pursue an outdoor sports and recreation company

(e.g. Mountain Equipment Co-op, Merrill etc.) to

finance building and branding a climbing wall or

bouldering park in the village.

d) Obtain “British Columbia Culinary Tourism Society”

accreditation for the Eagle’s Eye Restaurant in order to

increase its profile as a dining destination and gain access

to provincial marketing channels.

2. Long-Term Initiatives for KHMR

a) Drive year-round critical mass and consumer spending;

b) Based on the Commercial Economic Study (CES™), it is

estimated that the market will be able to support a total of

61,971 commercial square feet by the year 2016. Given

that there is an existing 23,805 square feet, it is suggested

to develop up to 38,166 additional commercial square feet

in the KHMR village, which represents approximately 25

new commercial businesses.

See Appendix 1 for information on the BC Culinary Tourism Society.

Appendix 5 contains the detailed CESTM.


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c) Develop financing incentives and programs for prospective

businesses owners in order to attract quality operators to

future commercial village development;

d) Focus on strategies to attract and retain a quality

employment base, including affordable housing

opportunities and local services;

e) Evolve the Grizzly Bear Refuge into a true world-class,

destination educational institution and experience, with

full interactive amenities including a year-round learning

centre with educational videos, and cultivate relationships

with school groups.

f) Through the Targeted Leasing and Casting (TLC™) process,

target quality commercial operators – “great people with

great business concepts” – who have the financial

wherewithal, passion, and vision to succeed, and, who,

along with their employees, will reinforce the commercial

vision and become ambassadors of KHMR.


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1. INTRODUCTION

This Commercial Planning Study (CPS™) identifies and segments the

current and future potential customer market for the commercial mixed-

use mountain village at Kicking Horse Mountain Resort. The primary

goals of the CPS™ are to:

1. Draft a preliminary vision of a mixed-use commercial

village that reinforces the overall vision and goals of KHMR;

2. Establish who the target achievable customers™ are who

have the propensity to spend time and money on

commercial goods and services;

3. Provide the development with strategies to increase

visitation and commercial spending in order to improve the

commercial viability of businesses and the quality of

commercial operators;

4. Evaluate the market potential for the commercial

development over time, to ascertain how many commercial

square feet should be developed, and its associated

phasing plan;


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5. Evaluate the competitive marketplace in order to

determine the most effective strategic positioning of the

village after highlighting the project’s key strengths,

weaknesses, opportunities and threats;

6. Recommend a preliminary program of critical commercial

and public space anchors, drivers and experiences;

7. Highlight lessons learned from studying select commercial

mountain resort precedents, outlining some of the key

challenges and positive outcomes and successes resulting

from their commercial developments.

The Commercial Precedents Study is included as an addendum to this CPS™.


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2. METHODOLOGY

The Commercial Planning Study (CPS™) is a demand-based analysis

that is used in planning and developing a mixed-use commercial

neighbourhood. Its primary purposes are to:

1. Establish a commercial vision that will drive commercial

demand and community quality of life;

2. Establish the approximate quantity of commercial space to

develop;

3. Estimate the timing of the opening of commercial

businesses to the public (the commercial phasing plan);

4. Estimate the developer/operator potential for viability,

which is derived from the Commercial Economic Study

(CES™);

5. Outline the development’s strengths, weaknesses,

opportunities and threats, and

6. Outline some macro commercial strategies to plan for

success and mitigate against risk.


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It is suggested that the commercial planning study, including the

CES™ findings, be revisited throughout the development of the site

to ensure that the plans and information remain congruent with then

current market conditions.

This study assesses the current and future commercial market

potential based on the sociology and demography of the people living,

working, learning and/or visiting the determined market area near the

site. This information is then analyzed in context with current market

conditions, while balancing the growth of the target market.

This methodology differs from a traditional supply-based approach

which analyzes the feasibility and potential for a commercial

development based foremost on the overall local commercial supply of

goods and services in relation to the current and future residential

market demand.

Briefly, the CPS™ assesses the potential for commercial development

by researching four types of information:

1. Local and surrounding market conditions which are

analyzed and studied, after which a geographic draw area

is selected to identify the target customer segments which

represent the market of commercial spenders.


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2. Feedback from the community and community

organizations which is obtained through research methods

such as interviews, Target Market Observation Exercises

(TMOE™), questionnaires, focus groups, and detailed

discussions. This feedback is used to assess the historical

context of the area as well as the immediate demands and

future desires of the customers in the marketplace.

3. Demographic information and other key data are

researched and analyzed. Some of the main determinants

of whether certain people identified in the target market of

commercial customers are, in fact, achievable customers™

may include age, socio-economic status, culture as well as

what identifiable groups these target customers belong to

(residents, students, retirees, young families, singles, day

or destination tourist visitors, etc.).

4. Experiencing, understanding and analyzing what has

worked elsewhere coupled with future trends, as well as

what has not worked elsewhere. This information and

analysis is obtained from other developments studied or

developed by Live Work Learn Play LLP, or the developer.


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In summary, this CPS™ estimates the commercial market potential

and serves to answer four fundamental questions:

1. How much commercial space should be developed and

opened at any given point in a defined economy that has

started to stabilize;

2. How to create the greatest likelihood of economic viability

for the developer and commercial operator;

3. How to maximize the commercial tenant mix and social

experiences of the target customers (residents and visitors)

in creating a sense of “Place”; and

4. How to plan a commercial development that will be

vibrant, economically sustainable, and timeless.


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3. KHMR STRENGTHS, WEAKNESSES,

OPPORTUNITIES AND THREATS ANALYSIS

Given the variety of mountain resort options in the regional areas

west of Calgary, it will be important for KHMR to distinguish itself by

developing an integrated mountain resort experience with a range of

activity options that will attract all of the identified target achievable

customer™ segments.

The following qualitative assessment is intended to guide decision-

making that will assist KHMR in becoming:

The center of life and activity for all employees, seasonal

residents, and visitors to KHMR;

A regular and familiar destination for people living and

working in and around the Town of Golden;

A prime regional visitor destination that will grow into a

national and international destination over time;

A place where all end-users feel a true sense of community.


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Strengths • Access to strong financial backing for

infrastructure improvements provided

economic returns are clear

• Long-term commitment and vision of Ballast

Nedam

• Closest ski-in/ski-out destination to the

Calgary market

• Improved Trans-Canada will reduce drive

time and improve comfort and safety of the

drive from Calgary

• The continued growth and economic

development of Calgary (see Appendix 6 for

an article on the retail development boom in

Calgary)

• The world’s largest enclosed Grizzly Bear

Refuge

• Existing brand of KHMR

• Proximity to 5 National Parks

• Quality of the ski mountain and snow

conditions

• Relatively low base altitude with temperate

weather and a lot of sunshine

• Located at the confluence of two rivers

Weaknesses • Lack of existing critical mass of seasonal

residents, overnight visitors and overall

visitors

• Lack of weekday traffic

• Limited activities or events to draw visitors

during the summer season

• Poor signage from the Trans-Canada

• Absence of formalized governance and

channels of communication in the form of a

Mountain Resort Association and Merchant’s

Association

• Absence of an employee housing strategy

• Located relatively far from great commercial

operators in Vancouver, Calgary and

Edmonton, making it difficult to attract

demand to open and operate businesses


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Opportunities • To be the only truly on-mountain ski village

in the region

• Expanding the operating season by offering

diverse summer and winter programs

• Building upon existing “affluent purist” market

success by softening the KHMR overall mountain

experience and image to attract a wider target

market and persuade “affluent purists” to travel

with family more often

• Attracting locals residents from Golden, KHMR

employees, and some of the many visitors passing

through Golden on the Trans-Canada Highway

• Attracting new Calgarians and providing them

with a sense of belonging and community

• Investing intelligently in a learning-oriented

activity base that will serve as a strong

differentiator

• Capitalizing on the existing cultural capital in

Golden in order to enhance the KHMR experience

• Aligning the seasonal strategies of the resort and

its commercial operators

• Choosing the correct mix of commercial concepts

that will survive and flourish given the resort’s

seasonality and personality

• Improving commercial quality and variety

• Designing smaller commercial retail units to

increase the density of the commercial experience

and reinforcing it through the layout of the plaza

Threats • Developing new commercial space before

optimizing the existing commercial

assets and experience as well as

achieving a critical mass of visitors and

spenders

• Offering inferior commercial experiences

as a result of not insisting on top quality

commercial operators

• The existing perception of the ski

mountain as being for experts only and

not being women, family and child-

friendly

• The existing lack of connectivity between

KHMR and the Town of Golden

• The development of Revelstoke, its

recent poaching of KHMR employees, and

its capture of the regional public

relations buzz

• Labour force shortages that will likely

intensify over the next two decades, at a

time when the maturing travel market

will be seeking more services and a

higher quality tourism product

• The ability of all resort variables to work

in conjunction with each other and

perform together (operations/residential/

hotels/commercial etc.)


30


31

4. STAKEHOLDER AND COMMUNITY FEEDBACK

This section summarizes feedback obtained from separate discussions

held with Kicking Horse Mountain Resort stakeholders; existing business

owners at KHMR; and people who represent commercial businesses and

organizations in the Town of Golden.

4.1. Kicking Horse Mountain Resort

While already internationally recognized as a premium skiers’ mountain,

all KHMR stakeholders feel the mountain is ready to move beyond its initial

accolades and infrastructure advancements, and want to push forth with the

full development of the resort. All have expressed a genuine desire to have

the village built.

The future KHMR Village is considered a pivotal element of the year-

round destination experience that KHMR seeks to provide visitors. It will be

an essential driver of real estate sales and property values and critical to

building and diversifying the mountain’s visitor base for the long term,

giving KHMR the feel of a real place with a palpable personality throughout

its operating season.


32

All KHMR stakeholders believe that the strength of the community they

create will determine how often owners use their property and how often

visitors return. They want KHMR to be much more than just a great ski hill.

4.2. Existing Business Owners and Operators at KHMR

4.2.1. Introduction

The feedback in this section was acquired during a focus group

discussion with existing KHMR business owners and operators held by

LWLP on September 17, 2007, during the KHMR Re-Envisioning Week.


33

List of Attendees

1 Trevor Carr Palliser Lodge 2 Ralph McCulley Sushi Kuma/Horse Thief Café 3 Patrick De Caigny Selkirk Sports 4 Ken Chilibeck Vagabond Lodge 5 Lori Chilibeck Vagabond Lodge 6 Trina Wolfenden Flying w/ Trail Rides 7 Warren Wolfenden Flying w/ Trail Rides 8 Melissa Callaghan Copper Horse Lodge/Cork’s 9 Rick Bulich Copper Horse Lodge/Cork’s 10 Stacey Trudeau Copper Horse Lodge/Cork’s 11 Paul Trudeau Copper Horse Lodge/Cork’s 12 John Lush Lush Mountain Accommodations 13 Sarah Kennedy Ultimate Resorts and Hotels 14 Ellen Matthews Palliser Lodge/Tepic Management


34

4.2.2. General Sentiments About Operating at KHMR

All of the operators who were party to the discussions expressed

great initial excitement at buying into the dream of being a part of

KHMR, but many expressed having felt a general lack of support or

acknowledgment from the resort ever since. They believed the resort

would develop more quickly and that their businesses would share in its

success, but an issue of trust now persists for many due to the failure of

the resort to exceed initial development expectations.

They acknowledged that their relationship with KHMR had improved

since the arrival of Steve Paccagnan and they have appreciated the

regular stakeholder meetings that are now held to keep them better

informed. Ultimately, though, they need more commercial spenders year-

round to make their businesses profitable.

These commercial stakeholders still feel the resort has great

potential, but they are finding it increasingly difficult to continue

supporting and funding operating businesses in a commercial

environment that is underdeveloped.

4.2.3. Perceived Issues

• Marketing

Many operators feel that the quality of the mountain and

its assets are not properly communicated to the public, and


35

that KHMR does not have a nearly significant enough

presence in the Calgary market. In particular, many believe

KHMR needs to begin building relationships with, and

attracting, tour groups (especially in the summer) to

increase regular visitor traffic. There is also a strong desire

to see the mountain fully capitalize on the potential

drawing power of the Grizzly Bear Refuge by making it

better known and ensuring the facilities maximize the

experience for visitors.

• Signage (concept of “Wayfinding”)

The operators expressed having received consistent

feedback from customers on the subject of signage, as

many people had found it more difficult than expected to

find their way to the mountain from the highway. As well,

they expressed the need to erect a site map in the Gondola

Plaza to help people orient themselves upon arrival.

Visitors often have no way of knowing that there are

lodges with a restaurant and bar open nearby, especially if

they happen to come while the mountain is closed.


36

• Seasonality

Operators were sold on the concept of a four-season

resort, but the mountain is only currently open for a

portion of the prime tour season from May to September,

and there is not nearly enough summer traffic. They feel

the resort should be doing more in terms of holding events

and festivities to draw people to the mountain during the

summertime, because events that have been held, such as

the Street Fest in May and the August and Labour Day

Farmers’ Markets, have yielded healthy visitation and

positive feedback from attendees. The short summer

season also makes it very difficult for many of them to hire

staff, and as the seasonal operating schedule has changed

regularly in the past, it has been confusing at times to

visitors and merchants alike.

• Golden

Operators feel that KHMR needs to work cooperatively

with the Town of Golden as the two are perceived

collectively as one place by many visitors. Furthermore, the

Town of Golden is a natural visitor market for KHMR.

Locals do come up to the mountain from time to time, but


37

they need to be better catered to. The success of the

Sunday Brunch in attracting local residents is evidence of

the real potential of getting locals to come to KHMR more

regularly given the right programming, but most activities

at KHMR are too expensive for them.

• Going Forward

As the development pushes forward, all focus group

participants expressed a need for KHMR to communicate a

clear future vision of the mountain to the public and all

stakeholders. This would go a long way both towards

eliminating much of the uncertainty that has developed in

recent years and towards recapturing some of the initial

excitement about the project that has since waned. There

is a sense of urgency for change as many of the commercial

businesses are reported marginally profitable or losing

money and some operators reported that they cannot

afford to keep on investing additional funds into their

businesses.


38

4.3. Town of Golden

The feedback in this section is based on meetings and discussions

held on September 19, 2007 with stakeholders who represent

commercial businesses and organizations in the Town of Golden.

List of People Interviewed

1 Ruth Kowalski Golden & District Chamber of Commerce & Visitor Info Centre

2 Andrew Commons Kicking Horse Interiors 3 Caleb Moss Bacchus Books 4 Debbie Chabot Patsi Cola Candy Company 5 Jackie Jackson Jackson Hardware

6 Rob Miller Golden Area Initiatives – Community Economic Development Services

7 Lynn Romano B.C. Visitor Centre, Golden


39

4.3.1. General Identity

Golden has never been a resort town and its residents take pride

in being an authentic place with a diverse group of real people from

varied backgrounds working real jobs. According to Caleb Moss,

owner of Bacchus Books, there is a reason that there is no Starbucks

around as there is very little that is branded about the area. It is an

organic and authentic community with a real history, and that is a

large part of its charm to residents and visitors alike.

4.3.2. Perception of KHMR

Local residents have mixed responses when they are asked about

their feelings towards KHMR. Some are eternally positive about the

economic growth, development and prosperity they believe that the

resort will bring to the region as they see it as a huge opportunity for

the Town of Golden to modernize. Others, however, are less

optimistic. They feel that the experience with KHMR has been

peppered with broken promises given that development appears to

have stalled at the resort, (which was supposed to be up and running

in 10 years) and that anticipated economic benefits have not yet

materialized as expected.


40

4.3.3. Perceived Issues

• KHMR’s Actions Reflect Upon and Impact Golden

To the outside visitor, Golden and KHMR are one and the

same, and, as a result, representations made by KHMR

directly impact the town itself. Some of the examples cited

include people arriving expecting a “resort” and not

finding one, or coming to see the Grizzly Bear Refuge only

to find it closed. Visitors have been disappointed or angry,

and the local merchants often end up taking the heat from

unhappy tourists.

• Lack of Communication

Stakeholders also expressed their sentiment that a lack of

communication and general secretiveness permeates

KHMR’s relationship with the town. On a macro level,

general development plans and the overall direction of the

resort is up in the air, while on a micro level it has been a

consistent challenge, even for the Visitor Centres, to give

visitors real-time information about KHMR, as the resort

often does not adequately communicate its opening dates

and availability of activities. Many merchants in Golden

also have great difficulty providing tourists with accurate


41

information about KHMR when regularly asked.

• Employee Housing

Many residents feel that the issue of staff housing for

KHMR employees should be addressed by the Town of

Golden in partnership with KHMR, but to date it has never

been properly raised or planned. It is perceived that the

influx of people has driven up property values and put a

strain on existing infrastructure, making it more difficult to

find affordable housing.

Furthermore, business and wages in town have not

been increasing in line with rents and the general cost of

living, which has placed a financial burden on a number of

existing residents, especially those in the industrial sectors

who no longer enjoy the purchasing power to which they

were accustomed.

• KHMR Visitor Mix

Many residents feel that KHMR does not have the terrain or

amenities to meet the needs of families and children.

Furthermore, they argue that large groups of men coming in

for the weekends (which is the demographic KHMR currently

attracts) is not particularly good for a small town.


42


43

Appendix 2 contains the Golden Community Profile and Business Development Guide.

5. GOLDEN AREA HISTORY AND CULTURE

5.1. History of Golden

Golden was first settled in 1882 as a base for the survey party of

Major A.B. Rogers, who had been commissioned to find a pass through

the Selkirk Mountains for the transcontinental railway. With the

discovery of Roger’s Pass, construction on the final parts of the CP Rail

line began and brought Golden to life. The town has evolved and

diversified over the years, but has never truly left its

working class roots as forestry and rail continue to be the

two largest employers in the town.

The railroad brought a diversity of workers to the area

from as far away as Italy and India, giving birth to the oldest Sikh

community in British Columbia. It also spawned early tourism in the form

of wealthy Europeans who flocked to the Rockies in search of

unconquered peaks to climb. CP Rail brought experienced

mountaineering guides from Switzerland and built “Edelweiss Village” in

Golden to house them and their families in familiar “Swiss chalet” style

dwellings. Many of these maintained historical homes still remain on the

outskirts of Golden, and the spirit of outdoor adventure and exploration

that they represent still lives on.


44

5.2. The Great Outdoors

The area around KHMR and Golden is a mecca for those who crave

adventure and the outdoors. Annual events are held to highlight and

celebrate many of the recreational activities in their own unique fashion.

During the summertime, the area boasts some of the best whitewater

rafting in North America on the Kicking Horse River, as well as hiking,

backpacking, mountain biking, kayaking, horse-back riding, and fishing.

The Bugaboos and Spillmacheen Crags are popular for rock climbing.

There is also prime wildlife viewing in the Columbia Wetlands, (the

largest wetland of its kind in British Columbia) comprised of 16 habitats

and home to 216 species. The Golden Golf Club, with a Golf Digest 4-star

rating and ranked “Best Value” in British Columbia according to Scoregolf

TV the Magazine, plays host to 36,000 rounds of 18 hole golf every


45

summer. Additionally, several world distance records have been set at

Mount 7, which is one of the top sites in the world for paragliding, and

which plays host to the annual Psychosis Downhill Mountain Bike Race,

the longest single track race of its kind in the world.

Winter activities abound in Kicking Horse Canyon and Yoho National

Park with dog sledding, snowmobiling, ice fishing, ice climbing, and even

an annual snowshoe race to the top of KHMR. Golden provides access to

a vast network of easy to challenging cross-country ski trails at the

Golden Golf Course, the Dawn Mountain Nordic Trail system at the base

of KHMR, and in the Blaeberry and Columbia Valleys. There are 214

members of the Golden Nordic Ski Club.

However, downhill skiing in all its forms (heli, cat, or lift), is what

defines the winter season more than any other activity. Local residents

opened the Whitetooth Ski Area in 1986, which was acquired in 1997 by

Ballast Nedam, giving birth to KHMR. Rudi Gertsch has been offering heli-


46

skiing in the upper and lower bowls of the mountain since 1974, and the

overall area now boasts over 2000 square miles of heli-skiing terrain,

making it one of the world’s premiere backcountry skiing destinations.

5.3. Arts and Culture

Golden has many cultural opportunities to explore. The Golden

District Arts Council, which operates under the name “Kicking Horse

Culture” (KHC), helps coordinate and organize

a variety of cultural activities that have

significantly expanded in scope and popularity

in recent years. 610 individuals and families

last year became members of KHC. This

represents 7% of the entire regional

community.

In May 2006, KHC signed a Service Delivery Agreement with both

levels of local government. The agreement recognizes the significant

growth of the arts council’s programming activities and annually provides

$60,000 from the Town of Golden and Rural Golden combined to ensure

the stability and growth of KHC.1

KHC’s annual programming line-up, branded under the “Kicks”

banner, consists of musical, artistic and cultural events and festivities

1 www.assemblybcartscouncils.ca/news/KickingHorseCulture.asp


47

that are held throughout the year. These events have met or surpassed

all benchmark programming goals2 and have grown increasingly popular

with the local community. Last year alone the “Kicks” lineup included:

Live Kicks

• 15 concerts/performances from October-April ranging from Cuban music, to the Symphony of the Kootenays, ballet, and Punjab-Celtic fusion music and dancers

• 4 performances were staged in local schools • Averaged 150 attendees per show, peaking at 240

Eye Kicks

• 10-12 monthly visual arts exhibits per year at the Art Gallery of Golden

• “Adventures and Settlers” Golden Anniversary Exhibition project, featuring profiles and portraits of Golden’s ‘founding’ or formative families

Gift Kicks • Christmas Faire in November featuring more than 50 artists, crafters and artisans

Film Kicks • Best of the Banff Mountain Film Festival, held in December

Ice Kicks

• 2 opening and closing weekend concerts, January & February • Golden Anniversary “MasqueParade” activities, which featured a

snow and fire pageant Down By The Bridge and parade to the Civic Centre for a night of all ages social dancing 500+ attendance

• 2 months of workshop activity where 250+ people came through the Snow King’s Work Shop to build lanterns, puppets and masques

Summer Kicks • 5 free Down By The Bridge Concerts • Average attendance of 400+ locals and tourists

In addition, KHC also partnered with a number of other organizations,

among them the Golden Community Players, which stages 2-3 theatre

productions per year, the Métis Association, with whom they helped

organize four fiddle and dance workshops, and the Columbia Basin Trust,

with whom they helped organize a workshop on “Climate Change”.

2 Kicking Horse Culture: Operational and Program Review, July 2006


48

The community also supports many other cultural pursuits outside

the ambit of KHC, including the popular Wednesday Farmers’ Market

during the summer months; the Golden Rodeo; the Annual Spilli Chilli

Cookoff; and the Pick-N-Stick

Scrapbooking retail business,

which sells materials for and

teaches the art of scrapbooking.

There are 97 fully paid

members of their scrapbooking

club, which provides access to

free classes, advice and drop-in anytime of year.

Furthermore, the town has applied to the provincial government’s

B.C. Spirit Squares program, which provides funding for communities to

build or improve an outdoor public meeting place in the town that

reflects its unique character, heritage, and cultural diversity. The town is

hoping to build a Spirit Square near the Pedestrian Bridge in 2008.

5.4. Conclusions for KHMR

In order to attract a broader target market of destination visitors and

local residents, KHMR needs to provide a more diversified offering

beyond the area’s existing outdoor recreation and adventure. KHMR

should capitalize on the existing artistic and cultural capital in Golden by


49

building, leveraging and strengthening its relationships with existing

Golden organizations such as Kicking Horse Culture, the Art Gallery of

Golden, the Art Spot Galley, the Golden & District Museum, Golden Area

Initiatives, the Golden & District Chamber of Commerce & Visitor Info

Centre and the Town of Golden itself.

KHMR has made certain overtures in the past to this end, but has

found the Arts Council somewhat resistant to organize events that will

benefit the resort in an economic way, which they view as outside their

mandate. Nevertheless, KHMR must continue to pursue opportunities,

find solutions to this impasse and work towards improving this

relationship on a going-forward basis.

Incorporating cultural experiences with connections to Golden into

the KHMR experience will add colour and flavour to the resort itself year-

round, as well as help the mountain better integrate with, and build

stronger ties to, the local Golden community.

Some of the strategic opportunities for KHMR include:

• Becoming a regular venue for hosting community events;

• Getting local professionals (artists, photographers,

musicians etc.) to run workshops or teach classes at KHMR;

• Developing free bus transportation to encourage people to

travel regularly between the resort and Golden.


50


51

6. ECONOMIC AND DEMOGRAPHIC TRENDS INFLUENCING KHMR3

6.1. Economic Forecast

In the medium term, at least, the economies of Canada and Alberta

are expected to remain strong, which will generally translate into high

levels of consumer spending and an increased propensity for travel by

Canadians. This may be tempered slightly by the high cost of fuel and

transportation. While this may have a positive influence for many

Canadian travel destinations, a strong economy presents both

competitive challenges and opportunities for KHMR.

6.1.1. Higher Disposable Incomes

• Calgary and Alberta as a whole have significantly higher

household spending and related growth, relative to the

Canadian average, as indicated in Table 24.

3 Much of the research in this section was obtained from the Town of Banff Commercial Capacity Study 4 Statistics Canada


52

Total Household Spending

2005 Growth 2003-2005

Calgary $85,553 20.3%

Alberta $75,346 11.1%

Canada $66,857 8.6% Table 2

• Higher disposable incomes typically translate into an increased

demand for longer trips.

• In that about 60% of visitors to both KHMR and to the Rocky

Mountain Tourist Destination Region5 (TDR) are made by

Albertans6, KHMR and other area resorts may experience greater

pressure to keep their largest market from traveling elsewhere.

6.1.2. Higher Incomes in Combination with an Aging Population

• This has led to a substantial rise in the demand for vacation

properties, which bodes well for KHMR, as the growth that has

occurred in competing resort communities can attest to.

• 9% of Canadian households are planning to purchase (4%) or

considering a purchase (5%) of a vacation home in the next 3 years.7

5 The Rocky Mountain TDR includes Banff and Jasper National Parks and Kananaskis County 6 Based on the most recent 2004 Alberta Economic Development Tourism in Canadian Rockies data 7 Demographics, Economic Realty and Market Opportunity for Resort Housing, 2007,Clayton Research


53

• Canmore (AB), Creston (BC), Fernie (BC), and Whitefish

(Montana) have all been successful in attracting real estate

investment by Southern Alberta residents.

6.1.3. The Strength of the Canadian Dollar and U.S. Visitation

• When combined with impending international border crossing

requirements, the strong dollar has already, and will likely

continue to, result in fewer American tourist visits to southern

Alberta in the future.

• While in numerical terms, U.S. visitors represent just over 10%

of all visitors to the Canadian Rockies, they account for over

25% of tourist spending. U.S. visitors represent roughly 9% of

visitors to KHMR.

• The number of U.S. and international visitors to the Rocky

Mountain TDR has decreased significantly compared to pre

“9/11” numbers.

• While visits by international tourists appear to be rebounding,

U.S. visitation is still well below historic levels, having dropped

32% (from 600,000 to 410,000) between 1998 and 20048.

These trends match tourism data for Canada as a whole. The

8 Based on the most recent 2004 Alberta Economic Development Tourism in Canadian Rockies data


54

outlook is relatively strong for the overseas market, but less

certain for the U.S. market. Consequently, KHMR and other

local resort communities will have to look to other markets, as

well as new and expanded products, to offset a decline in this

important source of income.

6.1.4. The Labour Shortage

• The supply of workers is expected to remain a major issue in

Alberta and British Columbia, and is likely to become more

pressing for Canada as a whole.

• KHMR’s ability to attract quality employees to the community

will be directly related to its ability to offer affordable

accommodations and a full range of community services.

6.2. Demographics

The prevailing demographic trend facing most developed nations is

the aging of the population. While Calgary (with a 35.7 year old median

age) and Alberta (36) as a whole are younger than the Canadian median

(39.5), over the next 25 years, the population aged 55 to 75 will grow by

over 60% (or roughly 4 million people) in Canada9. These individuals will

have the time, discretionary income, and desire to travel and to purchase

9 According to Statistics Canada projections


55

vacation properties. This market will be driven by service, quality and

sophisticated experiences, likely at a time when a labour shortage will

make it increasingly difficult to satisfy these needs. Over the next quarter

century, the communities that are best equipped to serve this market will

be those that are also able to

attract and retain quality

employment.

The young adult population,

which represents a key

component of the workforce at

mountain resorts, will be

stagnant or in decline over the next 20 years. By 2026, Statistics Canada

projects that the Canadian population between 20 and 29 will decline by

about 3% while the population between 20 and 34 will grow only by

about 3%, compared to a 16% growth in the population as a whole. In

short, the traditional labour force will not come close to keeping up with

the growth in demand by the aging population. As a result, mountain

resort communities, like KHMR, must find creative ways of competing for

this increasingly scarce supply of youth labour.

The Calgary population is currently estimated at 1,165,000 and is

projected to reach 1,338,000 by 2015 based on City of Calgary forecasts.

This represents a growth rate of about 15% over the next 9 years. The


56

provincial population currently amounts to 3,376,000 based on estimates

by the Alberta Ministry of Finance and is projected to reach 3.9 million by

2015, representing growth of approximately 17% over this period.

6.3. Global Tourism

The World Tourism Organization reports that by 2020 global tourism

(measured by international arrivals) will more than double. At the same

time, it will be spread out over a much broader range of destinations. In

1950, 71% of international arrivals were concentrated in 5 countries

(Canada being #2 behind the United States) and the top 15 accounted

for 97%. By 2000, the top five destinations accounted for only 35% of

arrivals, with 38% in countries outside the top 15. In 2003, Canada had

dropped to #10.

Information technologies and the mass media have made tourism

marketing a truly global proposition. Competition is increasing

exponentially as the ability of even remote communities to market to a

global audience expands. At the same time, the internet and mass media

has led to much “information clutter” and high value destinations like

KHMR must continue to seek ways to ensure that clear marketing

messages are being transmitted to its non-local markets.

The internet has led to a rise in “independent travelers,” who do not

book their trips through traditional travel agents. These travelers are


57

able to book almost every aspect of their trip on-line, including hotel, air

and ground transportation, rental vehicles, golf, activities, etc. As a

result, locally based travel packaging and tour companies will have a

greater role in attracting tourists and influencing their activities.

Tourism marketing and products are becoming increasingly more

sophisticated in response to a more informed global audience, a

maturing market, and the greater use of electronic media.

As the baby boomer population ages, skiing and snowboarding

participation rates will likely decline. While research has shown that

participation rates increase slightly for persons in their 30s to mid-40s

when their children become more active in winter sports, skiing and

snowboarding will be outpaced in popularity by less strenuous pastimes,

such as hiking, bird watching, golf, etc.

In the long term this trend will shift growth to the summer months,

and KHMR must ensure it is well positioned to appeal to meet this

demand.


58


59

7. COMMERCIAL VISION AND GOALS

7.1. Commercial Goals

The following are the suggested top 10 strategic goals of the KHMR

commercial village.

1. To create a competitive advantage and regional

differentiator for KHMR versus the competing regional

mountain resorts and developments;

2. To drive demand for residential sales and visitor traffic for

the operating businesses (i.e. the ski hill and hospitality

operations);

3. To help define the brand and personality of KHMR while

integrating seamlessly into the mountain environment;

4. To be financially viable for both the developer and the

commercial operators;

5. To be a social gathering place for all visitors and residents,

providing them with daily opportunities to connect with

each other and engage in fun and fulfilling activities and

experiences on a 24-hour clock;


60

6. To provide a variety of commercial and recreational

amenities and services to KHMR visitors and residents;

7. To help build a true mountain community by making KHMR

an enjoyable place to live year-round, facilitating the

attraction and retention of staff, increasing the frequency

of visits, and extending the length of visitor stays;

8. To reinforce and promote the healthy living, outdoor

adventure-based history of the region;

9. To create a diversity of commercial memories; and

10. To be self-sustainable and timeless, improving with age,

financially and experientially.

7.2. Commercial Vision

7.2.1. Concept

The KHMR commercial village will be a destination, mixed-use,

mountain village that will feel timeless, authentic and organically grown,

driving the essence of the KHMR story, and helping cultivate and foster a

true sense of community. Its personality and offerings will be heavily

based on food and beverage; entertainment; and a variety of recreational

activities. The village will personify a healthy living environment that is


61

both fun and adventurous, where mountain learning and one-stop

staying become key aspects of the village experience.

7.2.2. Introduction

KHMR has an opportunity to fill a regional void as the closest ski

in/ski out village experience for the Calgary market which offers the

ability to buy real estate. It will morph into a true national and

international destination over time as its reputation spreads and facilities

permit. The commercial village will harness that potential by creating a

place where visitors and locals alike will feel at once on vacation and at

home, and long to return year after year.

7.2.3. Commercial Experiences

For a morning bite or a daytime snack, the village bakery will serve up

a variety of fresh baked treats and prepared sandwiches throughout the

The pedestrian village will be the heart of KHMR, its pulse the driver

of resort life in general, giving KHMR a year-round character and

personality. It will provide a rustic, inviting, mountain village experience

that offers a touch of sophistication without an ounce of pretension. It

will be more refined but less expensive than Banff, have more variety

and culture than Panorama Mountain Village, and better action and

more convenience than Fernie Alpine Resort.


62

day. People can sit down, savour their morning coffee and read the

newspaper on the outdoor patio, or grab a brioche on the go as they

head out for the day.

The village will also offer a careful selection of small, unique retail

boutiques to explore, championing local and regional art and design.

Culinary experiences will be anchored by an offering of family-friendly

Rocky Mountain roadhouse and grill, mix in a range of ethnic favourites, and

avail the bold of some palate-piquing gastronomic discoveries and

experiences.

Après-ski, the destination is the cozy and inviting “Surveyor’s Bar and

Lounge”. Set in an authentic, historical surveyor’s cabin, it is a familiar

gathering spot with live local music, line-dancing, mechanical bull-riding,

and other activities stretching into the night, setting the mood for trading

stories of the day’s mountain conquests.

The Mountain Activity Centre is

prominently located, associated with

all of the related activities and

programming in and around the resort,

educating visitors about the wealth of

fresh air options available to them. It is

the point of departure for the KHMR biking, running and hiking clubs,

with a sightline to the state of the art climbing wall or bouldering park,


63

where new recruits grapple with their adopted craft and entertain

dreams of conquering the local peaks. The centre eases visitor enjoyment

of desired activities and facilitates exploration of new challenges,

educing the pioneer culture and history of discovery in the region.

At the end of a hard day, those who wish to pamper themselves can

retire to the Kicking Horse Alpine Wellness Spa for a well-deserved

massage or full spa treatment.

7.2.4. Commercial Operators

Most retail locations in the village are owner operated. Each carefully

selected operator is experienced and profoundly engaged and invested in

their business. They offer the “best” of whatever defines their concept,

be it massages, muffins, steak or boot-fitting. They are deeply

knowledgeable and motivated to provide visitors with the best possible

service and experience. They develop lasting personal relationships with

all of their customers, who look forward to seeing them year after year.

They are partners and ambassadors of KHMR, and understand that their

own success and that of the resort are strictly intertwined.

7.2.5. Social and Physical Connections

The physical plan of the village will highlight and showcase the sun

corridors, mountain views and natural outdoor beauty that define the area.

Landscaped trees, vegetation, flowers and flowing water in the summertime


64

will further reinforce that dimension of the environment. Ample seating on

terraces and a variety of rocks, benches and ledges, as well as a communal

garden, will provide visitors with the means to relax and enjoy it all.

Moreover, the village will be fully integrated into and directly accessible

from the ski hill and the system of biking, hiking and walking trails on the

mountain, as well as the pedestrian paths snaking through the residential

developments. Visitors venturing out for or returning from a day of activities

will inevitably pass through the Village Plaza, generating a constant flow of

traffic and general excitement in and around the area.

The village experience will be a familiar one, with smaller shops and

narrow public spaces to generate a sense of closeness and intimacy

among all end-users. Shops will have animated, unique and tasteful

exteriors, with an open concept design allowing them to spill out into

the public spaces when prompted or appropriate.

7.2.6. Culture, Arts and Learning

The Mountain Learning Institute will be built on the concept of

learning and education being embedded into every commercial and

public space experience in the KHMR Village. KHMR will offer visitors a

“guarantee of learning” something new each and every time they visit the

resort, and this will, over time, become one of its most defining and

differentiating characteristics. Weekly rituals will build and reinforce


65

KHMR’s sense of community, tightening emotional bonds with visitors

and strengthening the character and identity of the resort.

Culinary

Each commercial operator will offer visitors the opportunity to learn

about their passion.

The chocolate shop will give

lessons in fudge making, the

bakery will show people how to

make bread and pastries, and the

arts and crafts boutique will teach

visitors to make jewelry or pottery.

During the daytime, resident chefs will open their kitchens to visitors,

inviting them into their environments to learn and practice some tricks of

the trade. Regular wine tasting and classes organized by the Kicking Horse

Oenophile Society will often be held in conjunction with culinary classes.

Art and Photography

The village will be a place to

learn about and appreciate the

outdoors through different

artistic media. Art and

photography classes will be led


66

by that year’s artist-in-residence or guest expert at the mountain arts

school to teach people to capture the area’s beauty as seen through their

own eyes. Writing courses will leverage the serenity of the area as

backdrop to creative inspiration.

Birds and Wildlife

A local bird and wildlife expert will educate interested visitors about the

265 bird species and variety of mammals that populate the Columbia Valley

before leading regular expeditions or nature walks for kids out into the

wilderness throughout the year to catch a glimpse of the real thing.

The Grizzly Bear Refuge will turn Boo into a regional celebrity as it

becomes a mandatory stop for many of the countless tour groups

exploring the Canadian Rockies during the summer season, enticing

visitors with the rare opportunity to experience and learn about one of

Canada’s most definitive animals up close and personal.

Astronomy

Coordinated with full moon cycle, Golden’s own former NASA

astronomer will tilt visitors’ eyes towards the heavens once a month, taking

small groups up the Gondola to star gaze and learn about the night sky.

Wellness and Health

Wellness and health will be paramount at KHMR, with the Alpine

Wellness School mandated to educate people about all aspects of healthy


67

living. Lessons will be integrated into all outdoor activities, food and

wine-related events, and of course the Alpine Spa where people will

come to unwind and recharge.

KHMR will be an industry leader in sustainable development and eco-

friendly operations and, as a satellite campus for the University of British

Columbia, learning about environmentalism and sustainability will also

form part of the brand associated with the resort.

Culture

The KHMR Village will complement and broaden the scope of culture

available to both resort visitors and area residents alike, integrating into,

drawing from, and expanding upon the rich existing cultural offerings in

and around Golden.

Designed as a multi-use space with the ability to accommodate a

variety of setups and uses simultaneously, the central Village Plaza will

serve as an outdoor staging ground for a wide variety of outdoor

programming spanning everything from live music and street performers,

to arts festivals and farmers’ markets.


68

7.3. Resort Personality Concept Map


69

8. TARGET MARKET ANALYSIS

The following segments represent the estimated market of

commercial achievable customers™ for the KHMR village. These target

achievable customers are segmented based on their propensity to spend

time and money on commercial goods and services in the village. This

analysis outlines the number of people who are associated with each

segment, as well as their defining attributes, including their typical

seasonality patterns, consumer behaviour on a 24-hour clock, commercial

visitation, projected KHMR capture rates and their commercial demands.

“Current” numbers represent 2007 values.

8.1. Primary Draw Area: Kicking Horse Mountain Resort

The primary draw area includes the primary KHMR affiliates, which

consist of seasonal residents, overnight visitors, and all employees

working for or connected to the resort.

8.1.1. Seasonal “Cold Bed” Residents

This group represents the occupants of “cold bed” units at KHMR,

which means units that do not participate in the rental pool.


70

These seasonal “cold bed” residents can be further broken down into

regional owners and destination owners.

• Regional Owners

70% of these cold bed units are occupied seasonally by

regional owners, generally from Calgary or Edmonton,

who live within driving distance of KHMR.

• Destination Owners

The remaining 30% of cold bed units are occupied

seasonally by destination owners, from elsewhere in

Canada, the U.S. or the world, who need to fly to access

their properties.

Defining Attributes

Segment Size: Cold beds currently represent 20% (50 units) of the

existing 250 residential units at KHMR. Given an average of 2.7

people per unit, this currently translates to 135 people, and is

projected to grow to 783 people by 2016.

Seasonality: Seasonal Residents spend an average of 16 days at

KHMR per year. This is a weighted average that presumes that

Regional Owners spend 20 days per year at KHMR (2 weekends

per month during the 4 month winter season and 2 weekends


71

during the entire summer); and that Destination Owners spend

7 days per year (1 week of winter vacation) at KHMR.

24-Hour Clock: As Seasonal Residents are primarily visiting during

the ski season, they will have opportunities to spend money at

lunchtime, après-ski, and in the evenings.

Visitation: It is estimated that these Seasonal Residents will spend

2 of their 16 days at KHMR away from the resort, so they will

have the opportunity spend money on commercial goods and

services an average of 14 days per year.

Capture: It is estimated that on any given day 40% of Seasonal

Residents will spend money on commercial goods at KHMR,

which will grow to 61% as the resort develops and expands its

commercial offering.

Commercial Demands: Seasonal Residents seek out affordable

places to eat and other value-based retail experiences, as well

as tangible memories and arts and cultural activities. As they

will often cook and eat at home, they will also purchase some

basic groceries. They desire social gathering spots to meet

family and friends, and have a need for fun, recreation and

relaxation.


72

8.1.2. Overnight “Warm Bed” Visitors

This group represents people in the “warm bed” residential units that

do participate in the rental pool. Overnight Visitors, many of whom are

return visitors, are currently, on average, 38 years old and travel within

an average group size of 4.7 people. Over 62% of Overnight Visitors have

average incomes above $75,000, and 61% of them are from Alberta (41%

from Calgary). 85% are traveling without young children (under 12 years

old.)10

Defining Attributes

Segment Size: Warm beds currently represent the remaining 80%

(200 units) of the existing residential units at KHMR. Given an

average of 2.7 people per unit, this currently translates to 540

people, and is projected to grow to 2,052 people by 2016. The

size of this segment increases in line with hotel and residential

development.

Seasonality: Warm bed units at KHMR currently have an

occupancy rate of 55% during the winter months, and 12% in

the summertime, representing a weighted average of 37.8%.

These occupancy rates include the use of their owner-

10 KHMR Post-Visit Survey


73

occupants. This means that these units are currently occupied

77 days per operating season. The occupancy rate is projected

to increase to 45%, or 108 days per operating season, by 2016

with the development of the resort, the expansion of the

operating season and the addition of a golf course.

24-Hour Clock: Overnight Visitors primarily visit during the ski

season and will have opportunities to spend money for

breakfast, at lunchtime, après-ski, and in the evenings.

Visitation: Overnight Visitors average 2.9 days per visit to KHMR,

often coming for a weekend getaway,11 so it is presumed that

they will spend all 77 occupant days at KHMR.

Capture: It is estimated that on any given day, 45% of Overnight

Visitors will spend money at KHMR commercial, which will

grow to 67% as the resort develops and expands its

commercial offering.

Commercial Demands: Overnight Visitors will spend money at

restaurants and other experiential food and beverage offerings as

well as retail. They are on vacation and looking for fun and

recreation, as well as relaxation and relationship-building, so they

11 Ibid.


74

will also seek out recreational and learning-oriented activities,

evening entertainment and arts and cultural events.

8.1.3. Employees

This segment includes all employees directly employed by KHMR

itself, as well as all 3rd party employees employed by the hotels,

commercial operators and construction companies operating at the

resort. Employees do not spend large amounts of money daily, but they

are a built-in customer segment for the commercial village and bring life

and spending to the village in low periods during the week and the off-

season. Attracting them is critical to the economic viability of the resort

in the early stages of development.

Defining Attributes

Segment Size: Employee numbers vary throughout the year, but

on any given day during the current operating season, there

are presently an average of 183 direct employees of KHMR,

plus an additional 25%, or 46 employees, working for the

related hotel, retail and construction companies operating at

the resort. These numbers are projected to grow to 407 direct

KHMR employees and 102 3rd party employees by 2016


75

Seasonality: Employees are at the resort throughout the operating

season, which currently stands at 203 days.

24-Hour Clock: Employees will have the opportunity to spend

money during their break times from work, (which can vary

throughout the day,) during their days off work, as well as in

the evenings provided that they are not working.

Visitation: It is estimated that the average employee works 5 days

a week but will spend money on commercial goods only 4 of

those 5 days, (which means 4 out of every 7 days that they are

employed.) Based on the current 203-day operating season,

this translates to commercial visitation of 116 days per season.

Capture: It is estimated that KHMR currently captures 60% of

employees on a given day, which will grow to 85% as the resort

develops and expands its commercial offering.

Commercial Demands: Employees are exceptionally value-conscious

and will seek out affordable commercial offerings. They are very

lifestyle driven and enjoy meeting and socializing, so they will

spend money on cheap food, alcohol and evening entertainment.


76

8.2. Secondary Draw Area: Golden Area

The Secondary Draw Area represents visitors to KHMR emanating

from in and around the Town of Golden.

8.2.1. Golden and Surrounding Area Permanent Residents

This group represents the permanent residents of both the Town of

Golden as well as the surrounding rural area known as Area A of the

Columbia Shuswap Regional District.

The median household income of the Town of Golden is $45,92912,

while 34.5% of households make under $35,00013. Families represent

31.6% of households. Much like employees, Golden residents are likely to

have lower daily spending patterns, but they are present throughout the

year and provide a large potential visitor group to sustain the village in

low periods during the week and the off-season. Attracting this local

segment is also critical to the economic viability of the resort in the early

stages of development.

12 Statistics Canada, 2001 Census 13 Community Profile and Business Development Guide for Kicking Horse Country

Appendix 3 provides a map of the Columbia Shuswap Regional District.


77

Defining Attributes

Segment Size: There are currently 4,373 permanent residents of

the Town of Golden14, as well as 3,155 residents of the

surrounding rural area15. Population growth is projected to be

flat for the foreseeable future.

Seasonality: Golden residents are present year-round and thus

throughout the operating season, which currently stands at

203 days.

24-Hour Clock: Golden residents will generally be working during

the day, so they will have the opportunity to spend money in

the evenings and during the weekends.

Visitation: It is estimated that Golden residents will spend money

on commercial goods 2 days per week, which translates to 58

days during the current KHMR operating season.

Capture: It is estimated that KHMR currently captures only 20% of

Golden residents as they primarily do their commercial

spending in town, but it is projected that this number will

grow to 33% as the resort develops and expands the range of

activities and entertainment options to attract them .

14 As estimated by B.C. Stats 15 Statistics Canada, 2001 Census


78

Commercial Demands: Golden residents are not especially affluent

and will only seek out affordable offerings. When skiing, they

generally bring their own lunch. They spend money on fresh

baked goods, traditional neighborhood conveniences, and some

specialty items, as well as some evening entertainment. They are

looking for familiar, ritualistic places to call their own, to have fun

and to spend time with family and friends. They expect to benefit

from a local discount or loyalty program when purchasing goods

or services.

8.2.2. KHMR Visitors Staying Overnight Off-Mountain

This group represents visitors to KHMR staying overnight in regional

accommodations outside of KHMR. Many of these visitors will stay in

Golden but others may stay as far as Banff or Invermere. Some buy their

KHMR tickets through booking services at their hotel. These visitors are

on vacation, are considered “destination guests” by KHMR for internal

statistical purposes, and will have a similar profile to ordinary Overnight

Visitors.


79

Defining Attributes

Segment Size: There were an estimated 35,400 such visits in

2007, of which 84% (29,700) came during the winter season16

This number is projected to grow an average of 4% per year to

50,385 visitors by 2016.

Seasonality: Visitors in this segment are counted as 1 visitor every

time they use the Gondola.

24-Hour Clock: These visitors will have opportunities to spend

money at lunchtime and après-ski. Many will return to their

off-mountain accommodations at the end of the day and will

not eat dinner at the mountain.

Visitation: Each off-mountain visitor represents 1 day of

commercial visitation.

Capture: It is estimated that KHMR currently captures 40% of these

visitors, but it is projected that this number will grow to 59%

as the resort develops and expands its commercial offering.

Commercial Demands: Off-mountain overnight visitors will spend

money at restaurants and other experiential food and beverage

offerings as well as some retail. They will attend or participate in

16 Data provided by Michael Dalzell


80

an anchor activity or event such as heli-skiing, hiking, a music

festival, or the wellness centre.

8.3. Regional Draw Area: Day Visitors

The Regional Draw Area represents all remaining day visitors to

KHMR. The B.C. Visitor Centre in Golden registered 16,270 visitors

between September 2006 and August 2007, 67.3% of whom were day

visitors not spending the evening in the area. Only 25.7% of all visitors

were from Alberta, while Canada overall accounted for 63.7%. August,

July and September, in that order, were the 3 busiest months, accounting

for 61.8% of the year’s registered visits. The 6 months from May to

September as a whole represented 87% of all registered visits.

8.3.1. Destination Day Visitors

Destination Day Visitors make an active decision to visit Kicking

Horse Mountain Resort. This group includes day skiers as well as

summertime day visitors. While, at 54% (38% from Calgary), Alberta

represents the largest percentage of day skiers, 20% of winter day visitors

come from provinces other than British Columbia or Alberta, while

another 20% are international. More than 54% have incomes over

$75,000.17

17 KHMR Post-Visit Survey


81

Defining Attributes

Segment Size: The number of Destination Day Visitors was

calculated to be the number of Gondola visits in 2007

otherwise unaccounted for by other groups segmented in this

analysis. This currently represents 41,839 visits, and is

projected to grow 4% annually to 59,550 visits by 2016.

Seasonality: Destination Day Visitors are counted as 1 visitor every

time they use the Gondola.

24-Hour Clock: These visitors will have opportunities to spend

money throughout the day, depending on the activity they

engage in, but will generally leave the resort at the end of the

afternoon prior to dinner.

Visitation: Each day visitor represents 1 day of commercial

visitation.

Capture: It is estimated that KHMR currently captures 40% of these

visitors, but it is projected that this number will grow to 58%

as the resort develops and expands its commercial offering.

Commercial Demands: Day visitors will make mostly impulse

purchases of logo-wear, t-shirts or other merchandise, or needs-

based acquisitions if they happen to forget an item. They are


82

generally self-sufficient and will often bring their lunch, but may

spend money on lunchtime food and drink as well as coffee or

beer. They will attend events and festivities.

8.3.2. Trans-Canada Passersby

The Trans-Canada Passersby segment represents the people driving

through Golden on the Trans-Canada Highway, excluding those people

driving in trucks. The number of vehicles is limited to those that pass

through Golden during any of the days of operation of the resort.

Defining Attributes

Segment Size: In 2006 this represented 858,355 passenger

vehicles18. Assuming 1.5 people per vehicle, this translates to

1,287,533 people.

Seasonality: Trans-Canada Passersby exhibit similar behaviour to

day visitors and would be counted as 1 visitor on any given

day that they were to visit KHMR.

24-Hour Clock: Given the impulsiveness of the visit, these visitors

may have opportunities to spend money at any point during

day, but their visit will likely occur over a short time span and

18 British Columbia. Ministry of Transportation


83

they will generally leave the resort by the end of the

afternoon, prior to dinner.

Visitation: Each day visitor represents 1 day of commercial

visitation.

Capture: At present, it is estimated that the number of spontaneous

visits from this segment is negligible, representing a capture rate

of 0%. This segment, however, represents a large pool of potential

future day visitors. As the signage for, access to, and reputation of

KHMR improve, KHMR will be able to attract some visits from

these people, who may not otherwise have thought about visiting

the resort, and it is estimated that the capture rate will rise to 1%.

Commercial Demands: As Passersby will not necessarily have planned

their visit to KHMR, their purchase habits will be highly impulse and

needs-based. With the right event attractions and brand recognition

of the resort, however, they may start coming for lunch or dinner

during the summer, as a pit stop on a long drive.


84


85

9. COMPETITIVE COMMERCIAL MARKET

9.1. Kicking Horse Mountain Resort

The KHMR Village is in its infancy, offering basic retail and food and

beverage amenities. The existing commercial offerings at KHMR are:

9.1.1. KHMR-Operated Commercial

a) Canyon Creek Outfitters: Rentals and hard goods sales and repairs

(bikes, skis, boards);

b) Brand Store: KHMR gear and accessories (located in Daylodge);

c) Whitetooth Grill: breakfast, daily lunch specials and après ski

menu, 170 seats (licensed for 200, located in Daylodge);

d) Eagle’s Eye Restaurant: Mountaintop 5 star dining, Pacific

Northwest cuisine, 120 seats;

e) Heaven’s Door Yurt: Snack or lunch stop, a light gourmet menu

with weekend barbeques, 35 seats (located at the base of Stairway

To Heaven chairlift).

9.1.2. 3rd--Party Operated Commercial

a) General Store: Convenience foods/goods, fresh produce, beer and

liquor, gifts, ATM;


86

b) Selkirk Sports: Brand name sportswear, footwear and equipment,

bike rentals, full service tune-up shop;

c) Extreme Peaks: Casual dining (salads, burgers, pasta, pizza and

dinner menu) and après ski, 3 large screen TVs;

d) Sushi Kuma: Japanese cuisine;

e) Horse-Thief Café: Coffee, fresh-baked goods, soup, panini’s,

sandwiches;

f) Cork’s Restaurant @ Copper Horse Lodge: Bistro-style dining,

contemporary cuisine, 55 seats;

g) Local Hero Pub & Restaurant @ Highland Lodge: Scottish

mountain-pub, selection of malt whiskies, beer and wine, pub

fare.


87

9.1.3. Square Footage and Sales

Existing Commercial CRU Sqft Sales(2007) Costs Sale/sqft Profit (Loss)

KHMR Commercial Canyon Creek Outfitters(1) 1 2,660 Brand Store(1) 1 225

$1,328,930 $733,155 $461 $595,775

Whitetooth Grill 1 4,000 $557,809 $628,783 $139 -$70,974 Eagle Eye 1 4,100 $1,290,634 $1,292,716 $315 -$2,082 Heaven's Door Yurt 1 500 $87,786 $63,732 $176 $24,054

3rd Party Commercial Selkirk Sports 1 1,240 $263,333 NA $212 NA General Store 1 1,780 Extreme Peaks 1 4,000 Sushi Kuma 1 1,050 Horse Thief Café 1 1,050 Cork's 1 1,200 Local Hero 1 2,000

TOTAL 12 23,805 Table 3 (1) These values are combined because of KHMR accounting practices. This includes all rentals and hard good sales at CCO ("Rentals"), as well as logowear and accessories sold through CCO and the Brand Store ("Retail").

The 3rd-party commercial businesses at KHMR are owner operated.

With the exception of the lodges, each of the existing retailers initially

purchased their space for $260 a square foot, with the use of the space

controlled through covenants19. All 3rd-party commercial operations, with

the exception of Cork’s, are reported to be marginally profitable or

losing money.

19 As per Hans Nieuwenhuis


88

9.2. Golden

Commercial in the Town of Golden is almost entirely populated by

independent mom-n-pop operators or branded service commercial such

as gas stations.

The downtown area, divided by the Kicking Horse River, is mostly

mixed-use space with local-serving retail, with the exception of concepts

connected to the outdoor sports clientele, which cater to tourists as well.

There are also restaurant options

offering a variety of cuisine. There is

some main-street vacancy as well as

ground floor space used for office

purposes. Approximately 30% of the

commercial space in Golden is owner

operated, and commercial rents

range from $8 to $12 per square foot, triple net20.

9.3. Regional Mountain Resorts/Towns/Developments

9.3.1. Fernie

Most commercial activity takes place in the City of Fernie, an

authentic, organically grown mountain town only a 5-minute drive from

20 Golden District Chamber of Commerce


89

the base of Fernie Alpine Resort (FAR), where commercial on-mountain

experiences are slim. In the City of Fernie, annual triple net rent averages

$12 per square foot21.

At FAR, commercial is limited to a Kelsey’s Restaurant & Bar; a coffee

shop; equipment rental; clothing; accessories and souvenir shop; and a

general store. There is also a popular restaurant and lounge in the on-

mountain Lizard Creek Lodge.

The town centre and main

street area boasts a healthy

selection of small, mostly

mom-n-pop run businesses in

turn-of-the-century Edwardian

buildings.

There are a number of

local art, craft, jewelry and design-related concepts including a ready-

paint ceramic studio and a local arts co-op, as well as clothing and t-shirt

stores, intimate cafés and restaurants, and local-serving amenities like a

hardware and drugstore. Outside the town centre, and peppered along

the highway in conventional neighbourhood/strip centres, are a number

21 Fernie Real Estate Co. Ltd.


90

of national chains including the likes of Tim Hortons, McDonald’s,

Subway, Mark’s Work Wearhouse and Canadian Tire.

9.3.2. Panorama Mountain Village

Panorama Mountain Village is located on a steep slope and is

disjointedly split between an upper village (located at the base of the ski

mountain), and a lower village, (at and near the vehicular entrance to the

development.) Most of the limited commercial subsists in the upper

village. There is roughly 16,500 square feet of commercial space

currently at the resort22.

The resort itself operates most of this space, while the few

independent concessionaires pay rent purely on a percentage of sales

basis.

Panorama currently offers basic retail amenities, some interesting

niche concepts, and a few dining experiences on the mountain. Standard

amenities include clothing and accessories; hardware; logowear and

souvenir shop; as well as an outfitting/rental shop that is connected to a

popular cappuccino bar which sells some baked goods and home-made

Italian gelato in the summertime.

In the last 2 years, the resort has added Panokids, an on-mountain

store with clothing and gear for kids under 12, as well as the stand-alone

22 Ken Wilder, VP Business Development, Panorama Mountain Village


91

Bavin Art Cabin with a large selection

of handmade art and which offers

classes in glass bead-making or

jewelry.

The General Store, located in the

lower village, serves as a

combination mini-grocery and liquor

store, and offers visitors the service of obtaining any special item not

carried if given 24 hour’s notice.

There are essentially two nightspots: the après-ski bar and restaurant,

which serves hearty pub grub and presents regular live-music and activity

nights; and a traditional alpine pub located in the lower village.

Dining options include a grill offering contemporary cuisine as well a

casual dining hall with an outdoor fire pit and pizza-to-go for those who

want to stay in for the night. Two particular restaurant experiences are

Choppers Landing Restaurant & Lounge, which sports an outdoor patio

in the heli-plex overlooking the village, and the Elkhorn Cabin, perched

at the top of the mountain at nearly 7,000 feet, which offers a Torch-light

Guided Descent to the village after dinner.


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9.3.3. Banff

The Town of Banff is the visitor centre for visitors to Banff National

Park. Commercial triple net rents range from $85 to $110 per square foot

on Banff Avenue, $40 to 50 on Bear Avenue, and $40 to $75 in the indoor

malls23. Additional rent representing property taxes and common area

maintenance costs (CAMs) amount to approximately $15 per square foot.

Retailers average $600-$850 in annual sales per square foot. There are

currently 780,157 square feet of commercial space in the Town

(excluding industrial and accommodations), with 583,070 of it devoted to

retail and food and beverage offerings24.

The Town of Banff is exceptionally tourist-oriented in its commercial

offerings. High-end jewelry

shops, art galleries and clothing

stores, as well as a plethora of

souvenir and gift shops and a

variety of sportswear stores

populate and define much of the

town’s retail space.

There is a wealth of restaurant options, including many roadhouse or

grill-style locations that double as evening hangouts, with some ethnic

23 Fairfield Commercial Real Estate Inc. 24 Town of Banff Commercial Capacity Study


93

specialty and quick-eat options, as well as a handful of bars. Most of the

visible space is mixed-use street-front, but there are also a few indoor

malls or buildings that house a collection of shops, many with their own

niche, unique product mix, and audience.

9.3.4. Canmore

Downtown Canmore is

centered by a traditional mixed-

use main street with independent

shops and operators offering a

mix of some local but increasingly

visitor-oriented retail with higher

price points.

Rents range from $30 to $35 per square foot on the Main Street, and

from $20 to $28 elsewhere downtown25. The Town of Canmore Online

Business Directory26 lists 49 businesses classified as “Retail Trade”; 15 as

“Clothing and Accessories”; 21 as “Food and Beverage Stores”; and 20 as

“Food Service and Drinking”.

There are a variety of art and craft-oriented shops, as well as furniture

stores, higher-end clothing and gift boutiques, and stores selling outdoor

25 Glacier Holdings Ltd. 26 https://online.canmore.ca/vth/subsections/directory/directory.html


94

clothing and equipment. There are also a number of interesting eateries

and cafés with a distinctly local feel.

Moving out of downtown and closer to the Trans-Canada Highway,

along the Bow Valley Trail and Railroad Avenue, are mostly larger stand-

alone commercial units with national chains like A&W, Tim Hortons and

Burger King. The town is currently debating whether to allow large

format retailers like Canadian Tire, Wal-Mart and Zellers to move into the

area.

9.3.5. Revelstoke Mountain Resort

Owing to its brand-new development status, Revelstoke currently has

no commercial offerings on-mountain, but the vision for Revelstoke

Mountain Resort includes a pedestrian-only commercial village that “will

be a vibrant year-round social centre” with “charming shops, restaurants

and cafés”.

The resort is promising its first

commercial offerings for the 2008/2009

ski season. However, at the time of this

report, Revelstoke does not have a

commercial plan, as management’s focus

has been squarely on ensuring that the


95

mountain and its basic infrastructure and facilities are ready, as

promised, for the upcoming 2007/2008 season.

9.3.6. Resort Communities Average Rents and Sale Performance

Resort Community

Rent/Square Foot (Net)

Est. Average Annual Sales Performance Per Square Foot

Average Rent as a % of

Gross Sales Banff, AB(1) $85-$110 $600-$850 15%+ Jackson, WY $17-$47 $230-$680 8%-10% Vail, CO $45-$80 $440-$910 6%-12% Whistler, B.C. $85-$95 $400-$625 15%+ Whitefish, MT $17-$23 $280-$510 6%-8% Aspen, CO $91-$140 $680-$910 15%+ Canmore, AB $20-$35 na na Fernie, B.C. $12 na na Sun Peaks, B.C. $26 na na

Table 4 Source: Town of Banff Commercial Capacity Study, Thomas Consultant, Resort Municipality of Whistler, Canmore Economic Development Authority, Paramount Realty, Fairfield Commercial, Bow Valley Realty, Fernie Real Estate Co. Ltd., Tourism Sun Peaks (1) Corresponds to high and low rates on Banff Avenue

9.3.7. Strategic Conclusions for KHMR

KHMR has the opportunity to provide a unique on-mountain

commercial village experience that currently does not fully exist in any of

the mountain resort communities within driving distance of Calgary.

Banff and Canmore are resort villages without directly adjacent

mountains and thus require transportation to any of the outdoor

activities people might want to engage in. Additionally, neither Fernie


96

nor Panorama offers a complete commercial village. In creating an

environment where all commercial drivers (including food and beverage,

entertainment, outdoor activities, learning experiences, attractions and

amenities, etc.) co-exist in one place, the KHMR village will afford the

mountain a distinct advantage over existing regional competitors and

help position it as a true destination resort prepared to compete with

the broader national and international markets.


97

10. COMMERCIAL ECONOMIC STUDY (CES™)

The CES™ is an estimation of the commercial economic potential for

Kicking Horse Mountain Resort. The CES™ recommends how much

commercial real estate to build or to redevelop based on the viability of

the developers and the commercial operators.

The fundamentals of the CES™ are based on identifying the

achievable customers™, researching their characteristics and behaviour

on a 24-hour clock, and then measuring their spending of time and

money at the commercial development on a seasonal and annual basis.

The CES™ estimates the following sustainable growth plan for the

site:

• Commercial Development Plan

o By 2016, KHMR will be able to support approximately

61,971 square feet of commercial space.

o Given that there is currently 23,805 square feet of

existing commercial at KHMR, the market will have the

potential to support up to 38,166 square feet of

additional commercial.

Appendix 5 outlines the detailed CESTM.


98

o There is currently more commercial space at KHMR

than the market can support at this time. Given the

surplus of commercial space relative to the current

economy, the CES™ recommends to only begin phasing

in most additional commercial space as of 2011,

allowing existing commercial operations the

opportunity to improve and stabilize economically.

• Target Achievable Customers™

o Given the target markets of potential achievable

customers™ in the Primary, Secondary, and Regional

Draw areas detailed in the CES™, the current annual

captured achievable customer™ “people days” is

estimated at 153,548, growing to 454,326 by 2016.

This is the equivalent of average daily traffic of

commercial spenders (during the operating season) of

756 people, growing to 2,238.

o Permanent residents of the Town of Golden and its

surrounding area currently represent 57% of captured

achievable customer™ “people days”.


99

o Table 5 outlines the relative contribution to the

projected commercial economy of each of the target

achievable customer™ segments.

The Secondary Draw Area is currently estimated to

represent 36% of total commercial spending, which

reinforces the importance of appealing to Golden area

permanent residents in these early stages of

development.

% of Total Commercial Spending/Total Spending Target Market 2007 2011 2016

Primary Draw Area: KHMR 60% $2,052,229 75% $4,710,659 87% $22,528,989 Secondary Draw Area: Golden Area 36% $1,227,248 22% $1,393,499 11% $2,920,976 Regional Draw Area: Day Visitors 4% $133,885 3% $208,561 2% $471,253 Total 100% $3,413,362 100% $6,312,719 100% $25,921,218

Table 5

• Annual Commercial Economic Potential

o The current annual commercial economy for KHMR is

estimated at $3.4 million, and is projected to grow to

over $25.9 million by 2016 (representing an average of

$418 per square foot by 2016, assuming the CES™

commercial development plan).


100

o Table 6 details the projected amounts of commercial

expenditure per person per day for each of the target

customer segments27.

Target Market Average Daily Spend

Primary Draw Area: KHMR Seasonal Residents (Cold Bed Residents) $35.00 Overnight Visitors (Warm Bed Guests) $100.00 KHMR Employees $10.00

Secondary Draw Area: Golden Area Golden & Surrounding Area Permanent Residents $10.00 KHMR Visitors Staying Overnight Off-Mountain $25.00

Regional Draw Area: Day Visitors Annual Destination Day Visitors $8.00 Annual Trans-Canada Passersby $8.00

Average Daily Spend (Weighted) $23.54 Table 6

o It is estimated that commercial spending for Overnight

Visitors will increase to $135 in 2012 with the addition

of significant food and beverage and other commercial

offerings at the resort.

Table 7 (on the following page) summarizes the CES™.

27 Based on visitor spending estimates provided by Rusty Noble and Michael Dalzell, coupled with LWLP’’s industry expertise


101

Com

mer

cial

Eco

nom

ic S

tudy

Prep

ared

: Nov

embe

r 20

07

Year

1Ye

ar 2

Year

3Ye

ar 4

Year

5Ye

ar 6

Year

7Ye

ar 8

Year

9Ye

ar 1

0

Annu

al O

pera

tor

Sale

s pe

r Sq

uare

Foo

t Vi

abili

ty

Thre

shol

d35

0$

35

7$

364

$

37

1$

379

$

38

6$

394

$

40

2$

410

$

41

8$

Viab

le C

omm

erci

al

Squa

re F

oota

ge9,

752

9,

883

11,9

33

14

,252

16,6

63

31

,776

38,1

41

45

,243

53,1

51

61

,971

Exis

ting

Kic

king

Hor

se M

ount

ain

Reso

rt

Com

mer

cial

23,8

05

23,8

05

23,8

05

23,8

05

23,8

05

23,8

05

23,8

05

23,8

05

23,8

05

23,8

05

Via

ble

NEW

Cum

ulat

ive

Com

mer

cial

Squ

are

Foot

age

(14,

053)

(1

3,92

2)

(11,

872)

(9

,553

)

(7,1

42)

7,

971

14,3

36

21,4

38

29,3

46

38,1

66

Sugg

este

d Ph

asin

g Pl

an-

-

3,

500

-

1,50

0

10

,000

10

,000

5,

000

5,00

0

5,

000

# o

f Com

mer

cial

Ret

ail U

nits

(CRU

s)12

1213

1314

2026

3033

37Av

erag

e Sq

ft/n

ew C

RU=

1500

Pote

ntia

l Ta

rget

Cus

tom

ers

(Ann

ual P

opul

atio

n)Ye

ar 1

Year

2Ye

ar 3

Year

4Ye

ar 5

Year

6Ye

ar 7

Year

8Ye

ar 9

Year

10

Prim

ary

Dra

w A

rea:

Kic

king

Hor

se M

ount

ain

Reso

rt90

4

92

6

1,22

1

1,

519

1,82

0

2,

103

2,40

7

2,

716

3,02

8

3,

344

Seco

ndar

y D

raw

Are

a: G

olde

n Ar

ea42

,928

44,3

44

45,8

17

47,3

48

48,9

41

50,5

98

52,3

20

54,1

12

55,9

75

57,9

13

Regi

onal

Dra

w A

rea:

Day

Vis

itor

s 1,

329,

372

1,33

1,04

6

1,

332,

786

1,33

4,59

6

1,

336,

479

1,52

6,03

4

1,

528,

070

1,53

0,18

8

1,

532,

390

1,53

4,68

0

Annu

al C

aptu

red

Ach

ieva

ble

Cust

omer

s "P

eopl

e D

ays"

Year

1Ye

ar 2

Year

3Ye

ar 4

Year

5Ye

ar 6

Year

7Ye

ar 8

Year

9Ye

ar 1

0

Prim

ary

Dra

w A

rea:

Kic

king

Hor

se M

ount

ain

Reso

rt35

,328

36,9

18

45,6

55

55,5

37

65,8

52

101,

585

12

3,02

2

147,

210

17

4,44

7

205,

061

Seco

ndar

y D

raw

Are

a: G

olde

n Ar

ea10

1,48

5

102,

051

10

2,64

0

103,

253

10

3,89

0

150,

586

16

2,66

8

174,

855

18

7,15

4

199,

974

Regi

onal

Dra

w A

rea:

Day

Vis

itor

s 16

,736

18,6

93

20,6

76

22,0

44

24,0

85

40,2

03

42,2

80

44,4

82

46,8

17

49,2

90

Ann

ual C

aptu

red

Achi

evab

le C

usto

mer

"Pe

ople

Day

s"15

3,54

8

157,

662

168,

971

180,

834

193,

827

292,

374

327,

969

366,

548

408,

418

454,

326

Esti

mat

ed A

nnua

l Com

mer

cial

Exp

endi

ture

s @

KH

MR

Year

1Ye

ar 2

Year

3Ye

ar 4

Year

5Ye

ar 6

Year

7Ye

ar 8

Year

9Ye

ar 1

0

Prim

ary

Dra

w A

rea:

Kic

king

Hor

se M

ount

ain

Reso

rt2,

052,

229

$

2,10

9,49

6$

2,

866,

154

$

3,75

7,11

2$

4,

710,

659

$

9,90

4,69

9$

12

,427

,112

$

15

,338

,617

$

18

,687

,873

$

22

,528

,989

$

Seco

ndar

y D

raw

Are

a: G

olde

n Ar

ea1,

227,

248

$

1,26

6,23

6$

1,

306,

882

$

1,34

9,27

3$

1,

393,

499

$

2,01

9,23

5$

2,

225,

359

$

2,44

1,96

8$

2,

669,

627

$

2,92

0,97

6$

Regi

onal

Dra

w A

rea:

Day

Vis

itor

s 13

3,88

5$

152,

532

$

17

2,09

4$

187,

148

$

20

8,56

1$

355,

101

$

38

0,91

4$

408,

770

$

43

8,82

7$

471,

253

$

Ann

ual E

stim

ated

Com

mer

cial

Exp

endi

ture

s3,

413,

362

3,52

8,26

4

4,34

5,13

0

5,29

3,53

3

6,31

2,71

9

12,2

79,0

35

15,0

33,3

85

18,1

89,3

56

21,7

96,3

27

25,9

21,2

18

%age

of E

xpen

ditu

res

by C

usto

mer

Seg

men

tYe

ar 1

Year

2Ye

ar 3

Year

4Ye

ar 5

Year

6Ye

ar 7

Year

8Ye

ar 9

Year

10

Prim

ary

Dra

w A

rea:

Kic

king

Hor

se M

ount

ain

Reso

rt60

%60

%66

%71

%75

%81

%83

%84

%86

%87

%

Seco

ndar

y D

raw

Are

a: G

olde

n Ar

ea36

%36

%30

%25

%22

%16

%15

%13

%12

%11

%

Regi

onal

Dra

w A

rea:

Day

Vis

itor

s 4%

4%4%

4%3%

3%3%

2%2%

2%

Ann

ual C

omm

erci

al E

cono

mic

Pot

enti

al10

0%10

0%10

0%10

0%10

0%10

0%10

0%10

0%10

0%10

0%

Kick

ing

Hor

se M

ount

ain

Reso

rt, B

riti

sh C

olum

bia

Com

mer

cial

Dev

elop

men

t / P

hasi

ng P

lan

- For

Dev

elop

er &

Ope

rato

r Vi

abili

tyC

omm

erci

al D

evel

opm

ent

Plan

Cust

omer

Seg

men

ts

Cust

omer

Seg

men

ts

Cust

omer

Seg

men

ts

Cust

omer

Seg

men

ts

Table 7


102

Table 8


103

11. PRELIMINARY COMMERCIAL AND PUBLIC SPACE PROGRAM

11.1. Planning the Village

The KHMR Village should provide a variety and choice of

commercial options, heavily anchored in food and beverage offerings,

as well as a centralized public gathering place for socializing and

events. The village must foster connections between people, and be

the hub of recreational activities, daytime, après-ski and evening

entertainment, artistic exploration and a full selection of learning

opportunities. As most visitors to KHMR will be seeking a connection

to nature through various outdoor experiences, the village design

must be cognizant of highlighting and facilitating visual (sightlines)

and experiential (pathways and general access) connections to

outdoor activities and the surrounding natural landscape.

11.2. Planning the Commercial Uses

The initial commercial developments should be primary uses that

have the highest likelihood of viability, convenience and fun for all end-

users, with the gradual phasing in of secondary and tertiary uses once

the commercial economic market becomes more established.


104

• Primary Commercial Uses

o Restaurants with terraces

o Evening entertainment venues

o Grab-n-go food, quick service small food and beverage

concepts

o Treat shops

o Activity-driven retail

o Regional produce, farmers’ market

o Yoga and meditation centre

o Hiking and biking schools/clubs

o Mountain Learning Institute

o Alpine Wellness School and Spa

• Secondary Commercial Uses

o Brand-name hotel

o Destination retail

o Specialty retail

o Conference centre/multi-use space

Each commercial and public space should have a use story, which in

turn reinforces the vision and attributes of that particular village

neighbourhood. These visions provide themes for the commercial

businesses and public spaces in each neighbourhood based on the flow


105

and behaviour of the commercial customers. The commercial use stories

for each space then define the type of business concepts and potential

target market customers.

Locating the uses synergistically to one another will help maximize

the demand for achievable customers™ to spend time and money in the

KHMR Village.


106

11.3. Preliminary Anchor Uses and Experiences

Category Commercial/ Civic Uses

Public Spaces Amenities and Programs

Des

tina

tion

• Full Service, Brand-Name

Hotel

• Conference Centre/Multi-

Use Space

• Alpine Wellness School

and Spa

• Mountain Yoga and

Meditation Centre

• Golf Course

• Tennis Courts

Recr

eati

on

• Retail Sports Shop

(running, bike, etc.)

• Equipment Rentals

• Mountain Activity Centre

• Outdoor display space for rental

equipment and sportswear

• Pedestrian, hiking, bike paths

• Rock-climbing wall / Bouldering park

• Skating/roller-skating rink

• Sports camp for kids

• Activity Clubs & Schools:

Running

Hiking

Biking


107



Arts

, Cul

ture

and

Edu

cati

on • Local Arts, Crafts and

Design Gallery

• Music, performance art,

and film locations

• Grizzly Bear Refuge

• Mountain Learning

Institute

• Culinary and Wine School

• School of Fine Arts

• Satellite campus for the

University of British

Columbia

• Arts club, arts & crafts programs for

kids

• Art classes: painting, sketching,

pottery, photography “print your

photos”, “make your own jewelry”,

etc.

• Arts festivals

• Public exhibition space for art and

photography

• Writing classes

• Astronomy club

• Nature walks

Food

and

Be

vera

ge

• Themed Restaurant

• Sit-Down Breakfast/Brunch

Destination

• Bakery

• Café and Specialty Foods

• Golf Club House

• Treats Concepts

(chocolate/fudge. ice

cream, cookies etc.)

• Community BBQ

• Dueling restaurant terraces

• Weekly farmers’ markets

Ente

rtai

nmen

t

• “Surveyor’s Bar and

Lounge” Après-Ski,

Evening Entertainment

and Nightlife concept (w/

live music, dancing, drinks

and appetizers etc.)

• Microbrewery

• Mechanical bull / bronco riding

• Line dancing

• Comedy night

• Outdoor stage for live music and

other performances (“Music in the

mountains”)

• Entertainment pods (“mini stages”)

• Movies under the stars

• Interactive entertainment


108



Reta

il /

Trad

itio

nal

Nei

ghbo

rhoo

d Co

nven

ienc

es • General store

• Business Centre (Kinko’s

FedEx)

Com

mun

ity/

Fam

ily

Plac

es

• Information Centre

• Teen Centre

• Kids Play Area

• Non-Denominational

Chapel

• Orientation (“You are here”) Maps

• Communal garden

11.4. Preliminary Sizes and Back-of-House Functions

• Restaurants can be as small as 700 square feet for grab-n-go concepts and up

to 2,800 square foot restaurants, all with large patio/terrace opportunities,

opportunities for future mezzanines or additions

• Entertainment and Nightclub concepts can range between 2,000-3,600

square feet

• Treat shops can range between 300-800 square feet

• Retail shops can range from 200 square foot “incubators” to 1,200 square

feet but average 700 square feet, with a few anchors ranging from 1,800 to

2,500 square feet

• Recreational facilities will range and their sizes will be determined based on

the individual use


109

In addition to the careful sizing of each commercial retail unit, it is

important to plan and develop an overall infrastructure that will enable

successful commercial operations and help stimulate people spending

time and money at KHMR.

Examples to consider including:

• Parking and Transportation: Shuttle service from Golden,

public parking with easy access to village centre, and

employee parking;

• Back-of-house strategies and operations: garbage, storage,

security, deliveries, etc.;

• Electrical infrastructure for: event stages, lighting, heat

lamps (which help extend daily and seasonal patio sales),

etc.

11.5. Placemaking Strategies

• Plan and develop small commercial spaces, targeting commercial

tenants who are experienced mom-n-pops. The Targeted Leasing

and Casting (TLC™) process targets quality commercial operators

who are regarded as “great people with great business concepts”,

and who have the financial wherewithal, passion, and vision to

succeed, and, who, along with their employees, will reinforce the


110

commercial vision and become ambassadors for KHMR. These

operators will invest their passion, time and money on a continual

basis, and help create the personality and the feeling of an

organically grown and authentic place. These tenants and their

concepts will determine the commercial financial and experiential

outcomes of the commercial development for years to come;

• Plan and develop attractions, rituals, and events that will drive

visitor traffic and encourage spending, as well as provide

entertainment, social connections, and learning experiences that

work in conjunction with the commercial experiences;

• Plan and develop cultural and civic anchors that celebrate the

culture and history of the resort and region. These anchor

experiences will help create a sense of community, invoke pride

within it, and ensure all visitors leave with a warm and fulfilling

overall experience.


111

12. MIXED-USE COMMERCIAL DESIGN GUIDELINES

12.1. Top 10 Strategies for Planning the Commercial Village From a

Physical Perspective

1. Design and develop an inter-connected tight nucleus

of commercial space around a central plaza forming a

vibrant area where people will go to connect to one

another and to all the commercial uses, public amenities and

activities.

2. Develop the village in phases, all of which are independently

economically viable and experientially integrated.

3. Plan and develop the whole village by creating distinct

neighborhoods, approximately every 50 to 100 feet, so that the

program of each neighborhood helps define the place with the

appropriate uses and amenities.

These commercial planning principles should be further

integrated into the existing site plan during the design

development of the village.

4. The physical commercial neighborhoods should reinforce the

overall development master plan and commercial vision, and the

The village is about 1-stop staying, visiting or living.


112

architectural, historical and cultural vernacular of KHMR and the

surrounding region. These neighborhoods should facilitate and

encourage people to instinctively enjoy the natural advantages of

the site (namely, views of the mountains) most hours of the day

and evening.

5. The commercial facades should be designed to be horizontally

and vertically unique and distinct from one another and from the

residential portions of the buildings, so that they stand out on

their own and give an authentic and timeless look and feel, as if

they have organically evolved over time. They should give depth

and dynamism to the pedestrian-level experience.

6. Identify and program anchor locations and experiences for each

neighborhood that consist of highly-used amenities, attractions or

commercial concepts such as popular restaurants or evening

entertainment, all reinforcing the vision of the neighborhood and

the KHMR master plan.

These anchor experiences must become the cornerstones of

creating the village hub for commercial, as well as help make the

village a destination for Golden residents.

Build in mistakes and become imperfectly perfect


113

7. Plan smaller commercial spaces than exist in traditional shopping

centres, which spaces can be combined with additional “free

selling space” (e.g. patios and terraces, which also provide the

commercial businesses with an outdoor presence), allowing the

commercial operators to maximize weekend and peak seasonal

sales, but mitigate against the lower sales during non-peak

seasons or weekdays.

The development of smaller commercial retail units (CRUs) will

increase the efficiency of the use for the ground floor space, and

encourage:

• Lower gross overhead costs for the operators;

• Increased sales per square foot;

• Smaller space allocations for back of house functions such

as storage;

• Optimization of the use of the overall space by building

terraces, mezzanines, outdoor displays, etc.;

8. Plan and develop the overall back-of-house and infrastructure to

facilitate the operations for the commercial businesses as well as

all events and festivities;


114

9. Design and plan for commercial spaces to “invite the inside out

and the outside in”, so that people can celebrate each other as

well as the great outdoors. Some examples include wonderful

restaurant and café terraces, open façades for food and beverage,

openings for treat shops or quick-serve foods, outdoor space for

an anchor sports shop, a removable roof for an evening

entertainment concept, etc.

10. Wind, sun and shade should be given considerable thought in

order to account for seasonal changes and maximize visitor

comfort in the commercial environment at all times of year.

12.2. Flow and Integration

With regard to the overall village design, all human traffic should be

centrally funnelled in order to increase the potential for a continuous

flow of customers passing through the village. All pathways, be they

pedestrian, bike, hiking or skier corridors, should lead end-users

intuitively to anchor uses or back to the central plaza in order that

spenders flow through the commercial areas naturally, encouraging

walking and spending throughout the village.

A design that will link and activate all of the different village

neighbourhoods should be implemented. People should be able to access

the various areas conveniently, and then move constantly to and from a

Invite the inside out and the outside in


115

series of interconnected places with the ability to spend more time at

their chosen experiences throughout the whole development. This will

create a higher likelihood for a healthy commercial environment.

All of this designed integration of experience and planning for the

flow of people will dramatically improve the overall economics of the

commercial, residential, and quality of experience for the target

achievable customers™.

Commercial space with the highest volume of qualified and quantified

consumer traffic typically will leads to higher operator sales, greater

operator success, and the ability to secure better operators in the future.

12.3. What Should Be Developed in Public Spaces

The combination of various elements in the design and programming

of public spaces will help create a friendly and inviting public place that

is highly used. It will also help drive traffic throughout the resort and its

adjacent areas. Public spaces should have several “activity rooms” which

support a range of behaviours including resting, playing, or people-

watching.

Specifically public spaces should have:

1. Infrastructure development and equipment which should

support flexible uses in public spaces throughout the

village, for example electrical outlets to support live


116

music and heat lamps, nightscaping, a retractable or

temporary stage for events, a large movie screen, etc.;

2. Anchor and temporary features should be designed to

help create the personalities of and connections to the

individual neighborhoods, for example, a water feature

that anchors a public space where the water can be

touched or enjoyed by the community; permanent and

temporary game tables; appropriate floral and arbour

arrangements; permanent and temporary art displays,

etc.;

3. Seating alternatives should be designed throughout the

village neighbourhoods. For example, benches, clusters

of rocks, steps, and ledges can combine to provide an

interesting array of seating options that will appeal to a

variety of target customers. It is recommended to have

moveable chairs in certain areas;

4. Landscaping and other features may include greenery and

flowers, as well as trash or recycling receptacles;

5. Amenities should be available to provide people with

things to do on a daily basis. Examples may include small


117

commercial establishments such as a small coffee shop

with snacks, an outdoor reading/games room with tables

where people can access magazines, newspapers and

games, and a playground area;

6. Events and Festivities should include weekly rituals like

the summer Farmers’ Market, BBQ cook-offs, etc., as well

as seasonal events such as charity fundraisers, holiday

celebrations, and other rituals that occur throughout the

year.


118


119

13. ASSUMPTIONS AND LIMITATIONS

In the preparation of the report herein, we have relied on the

accuracy of the data obtained using the various sources that are

referenced in this study. However, the accuracy of this information is not

guaranteed and cannot be warranted by Live Work Learn Play LLP.

This document contains projections and estimates, including, but not

limited to, references relating to the future economic performance,

growth, financial condition and results of commercial operations. In each

case, such projections and estimates have been made in good faith, and

have been based upon information that Live Work Learn Play LLP believes

to be reliable and deems to be reasonable.

The environment in which Live Work Learn Play LLP researches is

characterized by rapid and significant changes in technology,

competition, general economic environment, customer needs, client

mergers and acquisitions, and quality and quantity of available market

resources and information.

Consequently, actual results may vary materially from the projections,

and estimates should not be construed as a guarantee of future

performance, economic development or results of operations.


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Live Work Learn Play LLP assumes no responsibility for the accuracy or

completeness of the information contained in this analysis and expressly

disclaims any and all liability for representations, expressed or implied,

contained herein or for omissions from this analysis.

This document is the property of Live Work Learn Play LLP but can be

reproduced and exhibited to any representatives of Kicking Horse

Mountain Resort or any consultants or partners in so much that the

exhibition is in furtherance of this specific development.

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