Field of dreams: soccer dome feasibility study spawns questions on financials
By Timothy Schafer Local Journalism Initiative Reporter
There is no question the support in spirit is there for an indoor soccer dome in Nelson but the cash flow required for building and maintaining the $6.5-million project has been called into question.
A resident survey — from Jan. 31 to April 1, 2023 — was fielded by the Nelson Soccer Association (NSA) with Nelson residents to gain insight into the feasibility and interest of an indoor turf sports field facility, generating 746 responses with 88 per cent in favour of the facility.
The survey was part of the NSA’s advancing of the proposal with an eye toward securing land within city limits, attempting to prove the business case to municipal government in order to receive a plot of land to house the dome.
But, in addition to the projected construction cost of the facility having risen from $3.4 million in 2022 to $6.5 million this year, the annual net income projected ($26,000) from the facility does not even begin to service the interest or principal on the multi-million dollar debt, said Coun. Rik Logtenberg.
“So, it looks like the facility would have to be entirely grant funded,” he said. “Would that be enough to cover capital maintenance costs, or would there be any reserves planned?”
Logtenberg noted that there would also likely be a need for a replacement reserve for the dome — with a lifespan of 10 to 15 years — included in the financial picture.
Earlier this month, NSA representative Goran Denkovski was unable to say if the feasibility study would include those considerations.
“I’m not sure how much of our operating costs cover replacement value for the current building,” he said. “Ultimately, I would expect that the consultant would have included that into the overall operational costs.”
Coun Keith Page had questions about the projected revenue — retail, rental, sponsorship, advertising — cited in the feasibility report.
“It would be nice to know what the assumptions in there are in terms of what sponsorship is versus ongoing operational rental, because grant funding and getting the capital costs together is one part of the lift in a puzzle like this,” he said.
But what “are the ongoing sustainable financial pieces, and if there is support, what level of support is going to be required to make this successful long term if anyone goes in this direction?
I would like to see a deeper breakout of those two assumptions and what is built into them,” Page added.
The NSA will continue to provide figures and feedback on the project to council with the hope of obtaining the hectare of flat land it needs to build the facility on.
“We are thinking that, with the results of this report, we are hoping it just takes us to that next step where we can start communications with the City or the RDCK to really start looking at land,” Denkovski said. “If we can start looking at land then we can start looking at pre-design.”
Take it inside
The turf field would be a full size soccer field (105 metres x 68 m.) which enables games for all ages, allowing the field to be subdivided by curtains into quarters.
A two-lane walking and running track — with a potential warm-up space — would be included around the perimeter, with curtains to protect users from activities on the field.
There would be administration space for Nelson indoor soccer, as well as a booking and administration person who manages the facility.
A multi-purpose room would be included to host group and board meetings for the NSA and other community organizations, serving as a coaching room and classroom space for teams and other facility users.
There would be change rooms, a retail kiosk and a utility space.
Filling the need
The NSA’s current winter facility doesn’t have the capacity that meets the needs of its membership, NSA’s Tim Wooldridge said two years ago, with 835 youth players and 249 adult players in the NSA in 2022.
“Our membership is keen to play year-round but our facility isn’t capable of matching that,” he said. “We are turning youth away. They are not getting the time on the pitch for the winter season because we are at full capacity. So our vision is a dome.”
The NSA have a letter of support from the Recreation 5 commission and the allocation of regional district staff to conduct a feasibility study to shape that proposal and ensure that it meets the criteria and the expectations of the RDCK’s local government.
“We know that a dome in Nelson is the right fit. It makes sense for the very large membership,” said Wooldridge.
But without a feasibility study the proposal is pure conjecture, noted Coun. Keith Page at the time.
“Is there an appetite on the board … to now spend some money, work with that staff to take the first step in that process to firming up that feasibility study and seeing if this is something that needs to go further?” he asked. “Is that money you guys are willing to spend and put aside to take this project on?”
Yes, absolutely, Wooldridge replied. At last NSA board meeting it was decided to put some money aside.
“We’ve decided to sit and take the scissors to the budget and liberate some money,” he said.
“It’s becoming more and more like something our association needs to do.”
Source: The Nelson Daily, October, 2022
