ADMINISTRATIVE REPORT

Date: July 16, 2001
Author/Local: W.Pledger/7346

RTS No. 2233

CC File No. 4205

CS&B: August 2, 2001

TO:	Standing Committee on City Services and Budgets
FROM:	General Manager of Engineering Services
SUBJECT:	Extension of the Molson Indy

RECOMMENDATION

THAT Council approve a three year extension of the Vancouver Molson Indy, for the years 2002, 2003, 2004 and instruct the Director of Legal Services, Director of Real Estate Services and General Manager of Engineering Services to modify the Agreement with Molstar Inc. to reflect the 3 year extension of the race and that use of Park Lands be resolved to the satisfaction of the General Manager of Parks and Recreation.

POLICY

Council typically approves events on an annual basis but will approve major events for longer periods. In the past, Council has approved the Molson Indy for periods of three years or longer.

Section 6.4.2 of the Southeast False Creek Policy Statement (adopted by Council in October 1999) notes "The Molson Indy Race Track should not be planned in the SEFC development. Any extension of Indy beyond the current termination date of 2001 should only be considered if development has not proceeded, and should include full public consultation prior to consideration by Council."

PURPOSE

Molson Indy Vancouver and Championship Auto Racing Teams, Inc.(CART) have agreedto extend the Indy race in Vancouver a further three years, subject to Council approving the use of City lands and the extension. The purpose of this report is recommend a further three year extension of the race.

BACKGROUND

On April 11, 1995, Council approved an extension of the Vancouver Molson Indy race to 2001.

On March 13, 1997 Council approved a modification of the race circuit to include Quebec Street and the necessary City lands on the south shore of False Creek (See Figure 1).

On March 25, 1999, Council received for Information a report that reviewed the 1998 race including commentary on the traffic impacts, noise impacts and discussions with CityGate which is impacted by noise and street closures as a result of the race.

City and Vancouver-Richmond Health Board staff have worked with the race organizers and CityGate to provide a mitigation plan that minimizes the noise impacts of the race on those at greatest risk. This plan includes provision of ear plugs, ear muffs, hotel rooms for those who have serious health issues, work at home, or work at night and sleep during the day and day trips for young children.

In addition, the race organizer provides a very high level of security around the CityGate complex during race weekend, provides newsletters detailing race weekend activities and other important information, provides a barbeque for residents prior to the race and provides general admission tickets for Friday and Saturday to all residents of CityGate.

While many residents of CityGate support and watch the race from the race site and their balconies, a number of residents continue to be opposed to the race.

DISCUSSION

Molstar Sports and Entertainment, the owner of the race in Vancouver and Championship Auto Racing Teams (CART) have agreed to an extension of the Indy race in Vancouver for a further three years, subject to Council approval including the use of City lands. Molstar is now requesting a three year extension of the contract with the City, to the end of 2004, to stage the race.

Staff support the request of Molstar for the following reasons:

1 The external impacts of the race on traffic, cycling and pedestrians are well understood and while these impacts cannot be eliminated, they are reduced to manageable levels. Various controls (both Police and Engineering) are in place to do this with the costs absorbed by the event organizer.

2 A plan is in place, as recommended by the Vancouver-Richmond Health Board, to address the noise impacts of the race cars on the CityGate residents. This plan appears to be working satisfactorily. In addition, a significant security presence is provided to the CityGate complex.

3 The Director of Real Estate Services does not feel a three year extension of the Indy race, as an interim use, compromises the planned long term servicing and redevelopment of the site..

4. The race has a significant economic impact on Vancouver. Tourism Vancouver estimates tourist spending at about $15 m. and the overall economic impact at $26m annually. The 2000 3-day attendance was 156 000 with an international television broadcast to over 190 countries and an audience in the order of 50 million viewers.

Should Council support an extension of the race, the Agreement between the City and Molstar Sports will have to be revised. In addition, Real Estate issues, use of Park lands, review of traffic controls and any other stakeholder issues not directly covered by the Agreement would also be addressed.

New Race Time

The existing Labour Day time slot for the race in Vancouver will likely be allocated to another City. As a result, a new race weekend for Vancouver will likely be in June or September. This will result in a change to the race setup and dismantling time periods. It is not expected this will have any significant impact.

Consultation

Council was concerned with the impact the Indy race has on the CityGate complex and so when it adopted the SE False Creek policy statement it wanted to make sure the public, particularly CityGate, would have an opportunity to comment on any extension.

As a result, staff and the race organizer have met with the CityGate Committee and discussed the proposed race extension with them. A copy of this report has been provided to them.

City Gate representatives are here today to speak to the matter.

In addition, the race organizer has contacted the various businesses along Main Street between Terminal Avenue and First Avenue (including VanCity) and along First Avenue that they typically contact prior to each years race and have advised them of the proposed extension and of this meeting of Council. They have also contacted Science World, Concord Pacific and TransLink. These stakeholders are also impacted by the race and letters of support from them will be provided to Council upon receipt.

CONCLUSIONS

The race event organizer and City have plans in place that work well to address the impacts of the race on the City and public. Over the next few years, the redevelopment of the Southeast shores of False Creek will be in the beginning stages, likely only site servicing. The Director of Real Estate Services and the race event organizer agree that any conflicts between on-site work and the race can be sorted out.

CityGate residents have been informed of the proposed extension and are here today to speak to the matter. In addition, other stakeholders in the immediate area have been contacted and are aware of this meeting.

The race is a positive economic generator for the City, is a major tourist attraction, brings broad international exposure to the City and as such staff recommend an extension of the race for a further 3 years.

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Appendix A/Figure 1, not available electronically, is on file in the City Clerk's Office.

(c) 1998 City of Vancouver