S7-langley Lodge Major Grant Request

REPORT TO MAYOR AND COUNCIL

PRESENTED: FROM: SUBJECT:

MAY 25, 2009 - SPECIAL MEETING RECREATION, CULTURE, AND PARKS DIVISION LANGLEY CARE FOUNDATION GRANT REQUEST

REPORT: FILE:

09-75 1850-01

RECOMMENDATION(S):

That Council receive the Langley Care Foundation Capital Grant Request report for information. EXECUTIVE SUMMARY:

On Monday, March 23, 2009, Terry Metcalfe, Capital Campaign Co-Chair, and Patrick Matiowski, Director of Fundraising, for the Langley Care Society Facility appeared as a delegation to Council and presented a case for support for the Langley Lodge’s “Building for the Future” initiative. The background information for this initiative is included as Attachment A. The cost of this renovation is estimated at just over $28 million. In order to renovate the facilities to meet the demands of Complex Senior Care, Langley Lodge needs both community and corporate support at this time. The Langley Care Foundation, which raises funds to ensure healthcare services for residents, is mounting a capital campaign for $11 million to help cover the cost. During their presentation, it was stated that capital funds from other levels of government are not available for this type of facility, which means that all capital costs must be funded from operating revenues or fundraising efforts. The delegation requested a Township of Langley contribution of $1 million towards the expansion project. This request for support from the Langley Care Foundation – Capital Campaign Committee was deferred to staff to review existing policies and to provide a background report for Council’s information. A follow up letter was sent to Mayor and Council from the Capital Campaign Committee on May 13, 2009. This letter is included as Attachment B. PURPOSE:

To provide Council with requested background report pertaining to the Langley Care Foundation capital grant request, including information regarding Capital Improvement Grant policy and other examples of Council consideration for financial support outside the scope of the Township’s grant policies.

Langley Care Foundation Grant Request Page 2 . . . BACKGROUND/HISTORY:

On Monday, March 23, 2009, Terry Metcalfe, Capital Campaign Co-Chair, and Patrick Matiowski, Director of Fundraising, for the Langley Care Society Facility appeared as a delegation to Council and presented a case for support for the Langley Lodge’s “Building for the Future” initiative. The background information for this initiative is included as Attachment A. The cost of this renovation is estimated at just over $28 million. In order to renovate the facilities to meet the demands of Complex Senior Care, Langley Lodge needs both community and corporate support at this time. The Langley Care Foundation, which raises funds to ensure healthcare services for residents, is mounting a capital campaign for $11 million to help cover the cost. During their presentation, it was stated that capital funds from other levels of government are not available for this type of facility, which means that all capital costs must be funded from operating revenues or fundraising efforts. The delegation requested a Township of Langley contribution of $1 million towards this expansion project. On Monday, May 4, 2009 during its Special Council Meeting, Council considered a motion regarding the Langley Care Society. Moved by Councillor Fox, Seconded by Councillor Ward, Whereas the Langley Care Society has presented a request for support in their fundraising efforts as they complete an expansion and renovation of the Langley Lodge; Be it resolved that the Township of Langley commit to a grant to the Society of $50,000 a year for a period of 20 years. DEFERRAL Moved by Councillor Kositsky, Seconded by Councillor Long, That the request for support from the Langley Care Society be deferred to staff for review under the Capital Improvement Grant policy framework and related considerations. CARRIED Councillors Fox and Ward opposed Since the Council deferral of this motion on May 4, 2009, Mayor and Council received a follow up letter from the Capital Campaign Committee. This letter dated May 13, 2009 reaffirms the request that was made by the delegation, but also suggests that “If that is not possible, perhaps Council would consider a grant for an initial 5 years and after that time be subject to a review for continuation.” DISCUSSION/ANALYSIS:

The Township’s Capital Improvement Grants program supports “bonafide community halls” which are defined as those halls, which exist solely for the use of the residents within the community and are owned and operated by the organization as a community hall. Grants are provided on a matching basis equal to 50% of actual costs, to a maximum of $7,500 for each grant. The work must not be completed before the grant application is made. Payment of the approved grant occurs only after original receipts are submitted.

Langley Care Foundation Grant Request Page 3 . . .

The majority of Council funded capital projects over the years have been in support of “bonafide community halls” located in the Township. However, Council has chosen to fund other capital projects by Langley organizations who would not be considered “bonafide community halls” in the past. Some examples of 2008 / 2009 Capital Improvement Grant recipients who may not clearly fit this definition are: • • • • • • • • • •

Fort Langley Canoe Club Langley Animal Control Shelter Langley Seniors Resource Society BC Farm Machinery and Agricultural Museum Critter Care Wildlife Society Langley Animal Protection Society Langley Players Drama Club Langley Riders Society Nicomekl Enhancement Society Sharon United Church

Langley Care Society did apply through the Township’s Capital Improvement Grant program for 2009 and were also awarded a $7,500 contribution to their capital improvement project as a notfor-profit organization. Their application included the additional request for $1 million. Staff could not recommend the funding of this additional request given the policy’s $7,500 limit. Staff have also reviewed past Council considerations outside the scope of the Township’s Capital Improvement Grant program. Some of these considerations are further described as follows. Langley Child Development Centre / Langley Seniors Resource Centre On April 3, 2006 Council passed the following resolution in consideration of requests by the Child Development Centre and Langley Seniors Resource Centre. That Council revise the Capital Grant Criteria to include funding for regional and national fund-raising non-profit organizations based on start-up costs for locating within the Township; then on maintenance of existing facilities; and finally on equipment utilized in its facility. The funding to be limited to: • • • •

Surplus funds available within the grant budget; The sharing ratio to be 3:1; With a maximum contribution to be $33,000; and The organization must demonstrate that all other funding sources have been exhausted; and further

That Council approve grants of $33,000 to the Langley Child Development Centre and $5,933 to the Langley Seniors Resource Centre with funds from the current Budget and for this year only, the balance of $15,200 from Council Contingency.

Langley Care Foundation Grant Request Page 4 . . . Langley Community Music School In 1993, Council awarded funding for the construction of a new community music school. The funding consisted of approximately $230,500 in the 1994 budget with the agreement to provide further funding of approximately $2.8 million in the 1995 budget. While these funds were committed and budgeted for as part of the Township’s ongoing budget process, these funds were never paid out. These funds were carried forward for a number of years but reverted to surplus at the end of 1996 when the project failed to proceed. At the Council meeting held March 1, 1999, Council received a delegation from the Langley Community Music School requesting Township support towards the construction of a new music school facility. Over the next year, Council became a funding partner in the project. Council initially approved a grant of $230,500 towards the planning, design, and fundraising for a new Langley Community Music School. Council later approved a matching funding program whereby for every $1.00 the Langley Community Music School raised, the Township matched to a maximum contribution of $1.1 million. The facility was completed with this maximum contribution by the Township. The Township received recognition for their financial contribution through the funding agreement. Gymnastics / Indoor Bowls Fundraising Study In September, 2000, Council approved an expense in the amount of $7,490 for a fundraising feasibility study for the Langley Gymnastics Foundation and the Langley Indoor Lawn Bowls Centre. This resulted from a Council resolution from May, 2000 that “staff bring forward a report on the feasibility of funding a matching grant (similar to Langley Community Music School).” The feasibility study did not recommend these two organizations share a facility. The Langley Indoor Lawn Bowls group went on to lease space in Walnut Grove and received a Capital Improvement Grant to purchase some equipment. The financial model proved unsuccessful and the group closed down its operation during its first year of operation. The Langley Gymnastics Foundation vision has of course since been realized with the development of the Langley Events Centre. Salvation Army Gateway of Hope On April 23, 2007, the Salvation Army provided a presentation to Council regarding the proposed Gateway of Hope initiative and requested consideration of a one-time $1 million grant for the program from the citizens of the Township of Langley. The information from the presentation was received by Council. On August 27, 2007, the Salvation Army again made a presentation to Council on the proposed Gateway of Hope and again requested funding assistance from the Township. Council referred the item to the 2008 Budget to look at options that may be available to assist in funding this facility. On March 10, 2008, as an addendum to the 2008 budget, Council approved the following resolution: That up to $250,000 per year for 5 years (maximum of $1 million) be provided for the Gateway of Hope project subject to funding coming from Gaming Revenue. Preliminary estimates of Gaming Revenue would suggest that this $1 million will not be achieved in 5 years as the 2009 revenues are being projected at approximately $100,000.

Langley Care Foundation Grant Request Page 5 . . . Applicable Policies: Policy 02-020 – Community Hall Capital Grant and Application Intergovernmental Implications Council may consider the relative contribution, if any, from the City of Langley towards this project. Financial Implications There is approximately $10,000 of unallocated funding available from 2009 Community and Capital Improvement Grant budget. There is no provision to fund this request in the 2009-2013 Five Year Financial Plan. Respectfully submitted,

David Leavers DIRECTOR for RECREATION, CULTURE, AND PARKS

This report has been prepared in consultation with the following listed departments. CONCURRENCES Division Name FINANCE H. TSIKAYI

ATTACHMENT A ATTACHMENT B

Langley Lodge Background Information Letter from Terry Metcalfe, Co-Chair