LLOYDMINSTER MULTIPLEX STEERING COMMITTEE

FUNDRAISING PLAN
JANUARY 06, 2004

Be a Good Sport Join the Team!

Approved City Council - January 12, 2004

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INDEX
Authority Plan Overview Fundraising Sources and Approaches Donor Recognition Campaign Structure Major Sponsors Organization Chart Board Members Fact Sheet page 3 3 5 7 9 10 12 12 13

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AUTHORITY
Since July 2001, the Multiplex Steering Committee has been soliciting support from community residents of Lloydminster for the construction of the Multiplex and raising funds to assist with the Capital Construction. On February 17, 2003, Lloydminster City Council approved proceeding with a Multiplex Project consisting of 2 ice surfaces, 2 field houses, outdoor speed skating oval, upper level running track, facility / site amenities as well as fitness space, child play / services space, professional service space and meeting / conference / program rooms at an estimated cost of $19.8 million. The Steering / Fundraising Committee is appointed annually by City Council and the Fundraising plan that follows was approved by City Council in January of 2004.

PLAN OVERVIEW
The purpose of this document is to serve as the strategic plan for the successful raising of the community portion of capital funds to build a Multiplex Sports Centre in Lloydminster. FUNDING TARGETS 1. 2. 3. Municipal Financing (City of Lloydminster) Fundraising Government and Other Sources Total Project $9.0 million $6.0 million $4.8 million $19.8 million

The primary sources of funds for the Project have been identified by the Fundraising Committee, and contribute to the content of this planning document. As a result of the Be a Good Sport - Join the Team! campaign plan, the campaign strategy, potential sources of support, techniques and methods to be used in approaching these sources, a campaign structure with specific committees, financial objectives, and a campaign timetable have all been identified.

FINANCIAL REQUIREMENTS
CAPITAL REQUIREMENT The capital requirement of the Multiplex Project is $19.8 million with fundraising completion target December 31, 2005.

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CAMPAIGN FUND RAISING TARGETS

CAMPAIGN GOAL The Multiplex campaign goal for Be a Good Sport Join the Team is $6,000,000. GIFT TABLE The usual practice for a capital campaign is to create a gift table that outlines exactly how many contributions at varying levels are required to meet the goal. The rule of thirds has been found to be a consistently accurate device for estimating the size and number of gifts that will be raised. This rule suggests that the top ten donors to the campaign will meet one third of the private fund raising target; another third will be met by the next 100 largest donations; and the remaining third will be derived through all other gifts and related fund raising activities. A sample table for a $6,000,000 goal might look like this: TOP 17 GIFTS NUMBER REQUIRED 1 1 4 4 7 17 NEXT 100 GIFTS NUMBER REQUIRED 10 20 30 40 100

GIFT SIZE 1,000,000 500,000 250,000 150,000 50,000

DOLLARS RAISED 1,000,000 500,000 1,000,000 600,000 350,000 $3,450,000 58%

GIFT SIZE 30,000 15,000 7,500 3,750

DOLLARS RAISED 300,000 300,000 225,000 150,000 $ 975,000 $1,575,000 $6,000,000 16% 26% 100%

ALL OTHER GIFTS/ACTIVITIES GRAND TOTAL

By quantifying the needs of the Lloydminster Multiplex in the above manner, it provides a guide for the identification and rating of prospective donors. A variation on this table will be created, based on the number of funding sources identified, and the various fundraising approaches selected.

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FUNDRAISING SOURCES AND APPROACHES

MAJOR SPONSORS In order to kick off the fundraising campaign, at least one major sponsor is needed from the community. By identifying the major sponsor, interest and confidence from the rest of the community should result. Getting a commitment of this magnitude will require cultivation from the primary members of the Fundraising Committee. The prospective donors will need to be made aware of the full scope and benefits of the project and encouraged to support it to the best of their ability. When major commitments are made, the donors will be identified to the community in a positive and appropriate manner. The Fundraising Committee could capitalize on these donations by announcing them at a major event to generate enthusiasm by the community and will hopefully generate significant donations from others. Also in many cases individuals who make significant donations can be used to introduce the Fundraising Committee to others who may have an interest in making a significant contribution. CORPORATE/BUSINESS SECTOR A systematic canvas of all businesses in the community will be required. All businesses should be encouraged to give to the best of their ability. They will need to be assured that they will be recognized at the level of their giving (see page 7). Again, business contacts can be used to encourage support from their peers. Business contacts can also be used to encourage their employees to participate in community fundraising efforts. An enthusiastic volunteer can develop interest and donations from within the company. Perhaps some companies would be interested in setting up a program where they would match the individual contributions made by their employees. It would also be beneficial in large organizations to identify an employee that would be willing to volunteer to raise as many funds within the organization as possible. Whatever the case, all efforts should be made to pursue every avenue. CORPORATE/BUSINESS SECTOR TARGET: $4,450,000 SERVICE CLUBS/COMMUNITY ORGANIZATIONS Service clubs and community organizations may be able to make a significant contribution, both in monies and volunteers, to assist with special projects and community awareness. They may be interested in committing to raise the capital for specific items. Critical to a successful approach is a discussion with club representatives to determine what level of interest there may be in supporting the project, the financial capabilities of the club and the type of recognition sought. Initial introductory letters will be sent out to many community groups and organizations. This campaign will take place in March and April 2004. Individual follow-ups will be required to provide a personal introduction to the project and advise them of our particular needs. SERVICE CLUBS/COMMUNITY ORGANIZATIONS TARGET: $250,000

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INDIVIDUALS Typically in any fundraising effort, individuals provide a major portion of the funds generated and the volunteers needed. The challenge is to determine the most appropriate approach to contact and attract the support of individuals and families. As capital campaigns achieve the greatest proportion of support from a relatively small percentage of all donors, it is vital that donors be challenged to give to the fullest of their potential. They must be encouraged to reach the highest level on the Donor Recognition Levels that they can. Large numbers of donors at less than optimum support is less effective than fewer donors giving to the best of their abilities. In order to induce individuals to make greater contributions, they will be able to make pledges to be met over a period of time: e.g. monthly, quarterly, or annually. Also included in this group are opportunities for planned giving in the form of endowments and charitable remainder trusts. INDIVIDUALS: $300,000

SPECIAL EVENTS/PROJECTS Special events and projects would be activities undertaken by the Fundraising Committee for promotion purposes. These activities would be designed to assist with maintaining the Fundraising Committee profile in the community, and make money for the Fundraising Committee at the same time. Examples of this activity would be the Annual First Night event on New Years Eve, a House Lottery or sponsorship of a Sporting Event. To summarize, in addition to raising funds, a second function of these events is the publicity and awareness created within the community and surrounding area. SPECIAL EVENTS/PROJECTS TARGET: $550,000 USER GROUPS User groups include all groups that would use the facility for sporting events. A letter writing campaign has taken place to encourage the user groups to come up with creative ways to raise funds. That campaign resulted in letters of support and monetary commitments to the project from various user groups solicited. The fund raising could include increasing fees a sport or hosting some type of fundraising event. USER GROUPS TARGET: $450,000 COMBINED SOURCES The above sources and targets produce the following breakdown: Corporate/Business Sector Service Clubs/Community Organizations Individuals Special Events/Projects User Groups Total Sources $4,450,000 $ 250,000 $ 300,000 $ 550,000 $ 450,000 $6,000,000

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PLEDGES For some donors the option to provide support over a period of time may enable them to make a larger commitment. The recommended period of time for donations to be pledged over would be three years. Payments would be set up to be paid either monthly, quarterly or annually. It is recognized that the cash flows will be required during the course of construction and that outstanding donations cannot be set up as account receivables thus have to be covered by the City in the interim. Pledges beyond the three year period could be taken and go towards the ongoing operation of the Multiplex Sports Centre. ADD ROGER WORDING CHARITABLE REMAINDER TRUSTS Charitable Remainder Trusts are another way for individuals to make a donation to the Fundraising Committee. In this form of planned giving, the donor places funds with a third party in an irrevocable trust. The donor immediately receives a receipt for the funds pledged. He also receives regular annual interest payments from the trust. Upon his/her death the face value of the trust is paid to the Fundraising Committee. The primary benefit of this type of donation to the Fundraising Committee is that the trust agreement is irrevocable, and the agreement can be pledged as security on a loan should one be required at the time of construction.

DONOR RECOGNITION LEVELS

Special recognition for various levels of contributions should be used to encourage donors to strive for the highest level possible. The following are levels of recognition for donations: CORPORATE Hall of Fame MVP All Star Coaches Captains Players (level 1) (level 2) (level 3) (level 4) (level 5) (level 6) $500,000 - plus $250,000 - $499,999 $100,000 - $249,999 $50,000 - $ 99,999 $25,000 - $ 49,999 $ 1,000 - $ 24,999 INDIVIDUALS $25,000 plus $15,000 - $24,999 $10,000 - $14,999 $ 5,000 - $ 9,999 $ 1,000 - $ 4,999 $ 500 - $ 1,000

Overall Building Title $1,000,000.00 Overall Project Sponsor Exterior Signage Interior Welcome Signage Thank You Interior Signage leaving the building Corporate recognition on Fundraising material Corporate recognition on all print and promo material Corporate recognition with all Promotional Marketing and Advertising; ie Broadcast, Electronic and Print Media Major sponsor for 1 weekend event per year A one day Family pass to each member/employee in the opening year. All Corporate branding and signage is donor responsibility

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Meeting Room Meeting Rooms Sponsor Meeting Room Sponsor Kiosk on 2nd Level Information area Corporate Name included on all applicable internal directional signage Signage on the meeting rooms Corporate Branding in all Marketing for meeting rooms First right of refusal for bookings of meetings All Branding and signage is donors responsibility Decorating responsibility of Donor

$ 500,000.00

Arena 1 $ 250,000.00 Arena 2 $ 250,000.00 Field house 1 $ 250,000.00 Field house 2 $ 250,000.00 Exclusive Signage on Both ends of either a Field House or an Arena. Corporate recognition with all Promotional Marketing and Advertising; ie Broadcast, Electronic and Print Media Corporate Recognition with regards to All Event Scheduling at Your Field House or Arena. Corporate Name included on all applicable internal directional signage Feature Corporate logo on centre ice (Ice Arenas Only) Major Sponsor of a One Day Event each Year. Corporate Branding through signage is donor responsibility. . Walking/Running Track Corporate Signage on walls and track corners Corporate Name included on all applicable internal directional signage Corporate Branding through signage is donor responsibility Leisure Ice Corporate Signage Corporate Name included on all applicable internal directional signage Corporate Branding through signage is donor responsibility Outdoor Speed Skating Oval Corporate Signage Corporate Name included on all applicable internal directional signage Corporate Branding through signage is donor responsibility Child Play Area Skate Change Area Corporate Signage Corporate Name included on all applicable internal directional signage Corporate Branding through signage is donor responsibility Ice Resurfacer Corporate Branding on Ice Resurfacer Corporate Branding included on Ice Resurfacer room door Corporate Branding through signage is donor responsibility $ 150,000.00

$ 100,000.00

$ 100,000.00

$ $

50,000.00 50,000.00

50,000.00

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CAMPAIGN STRUCTURE
DELEGATION Due to the size of the project, and the varied nature of activities that will take place, it is vital to have a structure which will allow the Fundraising Committee to proceed with their job without the requirement of having to go back to the Board of Directors for approval of each activity. Prior to the actual activity or event taking place, the proposed campaign structure and scope, as outlined in this document must be approved by the Fundraising Committee. FUNDRAISING COORDINATOR Critical to the success of the campaign is the recruitment of committed volunteers to assume leadership for heading the various committees struck. One of the most important posts to be filled is that of Fundraising Coordinator. Basic functions of the committees and the key personnel are outlined below. FUNDRAISING CHAIR As a member of the Multiplex Project Board, the Fundraising Chair serves as the Team Leader, selecting, directing, monitoring and, when necessary, prodding campaign volunteers, particularly chairs of each of the committees. Ideally this individual will be recognized in the community as a leader; someone associated with winning causes. The possibility that this function might be shared by more than one individual might also be considered. STEERING / FUNDRAISING COMMITTEE The Fundraising Committee convenes meetings of the Fundraising Committee comprised of the subcommittee chairs. This body represents the governing executive of the Fundraising Committee. Activities of the Fundraising Committee are then communicated to the City to keep them apprised of how the plan is progressing. The first task of the Fundraising Committee is to review the overall campaign goals and proposed fundraising approaches. Targets for each sub-committee will be examined and collectively the Fundraising Committee must set the financial objectives for the campaign and approve the campaign timetable. When this is approved, detailed Implementation Plans will be developed by each of the sub-committees and presented to the Fundraising Committee for approval, then forwarded to the Board of Directors for final approval. Sub-committee progress will be reported at regular meetings of the Fundraising Committee, and activities requiring coordination will be dealt with at this level to ensure that conflicts are avoided.

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MAJOR SPONSORS
It is anticipated that by the time final implementation plans are in place, at least one Major Sponsor will have been located, and plans can be made for the unveiling of this donation. FEDERAL/PROVINCIAL GOVERNMENTS This committee, working in conjunction with the City of Lloydminster, will need to research what grants are available for this type of project. Detailed proposals will be required for these applications, and this committee can be working at obtaining the required information. As the final campaign goal nears, negotiations can begin in earnest for these grants. CORPORATE/BUSINESS SECTOR A nucleus of business representatives will be recruited to work with Fundraising Committee volunteers who have been active in soliciting businesses. This committee will identify prospective donors at both the major corporate and small business levels. The appropriate approach will be determined and the campaign designed accordingly. At the major corporate level, prospective donors should be approached in a team manner, with the team comprised of the Mayor or City Commissioner, Multiplex Committee Chairman and Fundraising Chairman or designates. All major Corporate or Multi-National companies should be approached in this manner. SERVICE CLUBS/COMMUNITY ORGANIZATIONS A strong potential has been identified for approaching community clubs and associations to enlist their support and involvement in Be a Good Sport Join the Team campaign. This committee should undertake an active campaign for approaching these organizations and requesting an opportunity to speak to their members or executive about the Multiplex Sports Centre. A part of the approach would be to challenge these groups to organize fundraising events or make direct appeals to members to support the campaign both financially and through volunteering. INDIVIDUALS A concerted effort will have to be made to make the public aware of the project and encourage them to make donations to the best of their ability. As well as current giving, we should be looking for endowments and charitable remainder trusts from individuals. Again, perhaps businesses could be used to match the individual contributions of their employees. Numerous volunteers will be required to work in this area, as it is this area where many small donations will be received, rather than a few large ones. SPECIAL EVENTS/PROJECTS Many volunteers will be needed for these efforts. Activities will be concentrated, giving busy people an opportunity to make a contribution where they may not be able to commit for a longer period of time. As these events are to keep the public image high, publicity will be the key factor. A volunteer data-base will be created to provide quick access to committed volunteers that can assist with special events and/or projects. COMMUNICATIONS

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The communication committee will undertake the development of the campaign theme, promotional materials and a strong publicity program. This group will work closely with all of the committees to ensure they have the appropriate materials available to assist and enhance their efforts. RECRUITMENT COMMITTEE To commence the establishment of the entire campaign organization, an interim Recruitment Committee should be formed to identify potential volunteers for the Fundraising Coordinator and sub-committee chairs. The current Fundraising Committee members can be used for this function. It would also be beneficial for the Multiplex Board of Directors to participate in this exercise, as they may have contacts in the community who could provide valuable resources to the committee. Once the Fundraising Coordinator is in place, they will work with the Recruitment Committee to solidify the Fundraising Committee. Use of a volunteer data-base will assist the committee in cataloguing volunteers and dispatching them as needed. FUNDRAISING COMMITTEE The first order of business for the Fundraising Committee is for each chair to select their sub-committee members and work on detailed implementation plans for their portion of the campaign. These detailed plans will form the basis of their activities. All detailed plans will then be forwarded to the Board of Directors for their approval before implementation.

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ORGANIZATION CHART
City Council Parks and Recreation Committee

Multiples Steering / Fundraising Committee

Functional Planning and Design Committee

Construction Committee

LLOYDMINSTER MULITPLEX STEERING / FUNDRAISING COMMITTEE MEMBERS BOARD MEMBERS

Christie, Bob Chairman Baehl, Margo Block, Reg Kindrachuk, Marty King, Tracy Kobelka, Kari Miguel Martinez Musgrave, Karen Saunders, Rob Schiller, Miles Dudding, Guy City Liason FUNDRAISING SUB COMMITTEE Schiller, Miles - Chairman / co-corporate chair King, Tracy - co-corporate chair McAllister, Marilyn Individuals Fagnon, Glen Special Events Wurtz, Leo User Groups Mehain, Howard Service Clubs

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FACT SHEET
April Aug Sept Nov Jan Jan Jan Feb Feb April April June July July Oct Nov Feb Feb April May Nov Nov 2000 2000 2000 2000 2001 2001 2001 2001 2001 2001 2001 2001 2001 2001 2001 2001 2002 2002 2002 2002 2002 2002 Initial planning of proposed complex began Strategic plan (prepared by Steering Committee) sent to user groups asking for support $4,000 received from local user groups to show support for project $1,050 received from local user groups to show support for project $1,500 received from local user groups to show support for project Randall Conrad & Assoc. Ltd. hired as consultants for the project Postcard campaign initiated Randall Conrad & Assoc. Ltd. submit Pre-Feasibility Assessment to City of Lloydminster Steering Committee disbands and hands project over to new Board of Directors Logo Contest initiated Lloydminster Credit Union commits $100,000 to project Logo Contest winner determined Wesley Heath - Paradise Valley, Alberta Minor Hockey commits $200,000 to project Terms of Reference received from City of Lloydminster Adult Soccer commits $10,000 to project Participated in the Lloydminster Chamber of Commerce Trade show to raise awareness Council approves 2 arenas, 1 field house, 1 outdoor speed skating oval Cliff Rose initiates a campaign to upgrade 1 rink to 4500 seats Business Breakfast organized to discuss the possibility of a 4500 seat arena Brass Bedposts Back for the Future raises over $67,000 Public Forum held with Randy Conrad and Roger Smolnicky as guest experts Multiplex advisory board passes a motion to upgrade the presently approved facility to a 2 arena (1with 500 seats and 1 with 1000 seats), 2 field house, fitness area, commercial infrastructure Feb Aug Oct Nov Nov Nov Nov Dec Dec Jan 2003 2003 2003 2003 2003 2003 2003 2003 2003 2004 Council approves the upgraded facility Kevin Lowe and Friends Sports Dinner (1st of 3) $128,000 Council approves in principal, SE 25-49-1-W4 as the site of the Multiplex Mikes Oilfield announces sponsorship of a Fieldhouse ($250,000) Agland announces $150,000 sponsorship. Nexen announces $50,000 sponsorship. The Goat announces $50,000 sponsorship. OTS announces sponsorship of the Meeting Rooms ($500,000) Nelson Family Sponsor the Edmonton Symphony ($27,000+) Announce Joint Venture Lottery with Hospital Foundation ($300,000 - $500,000)

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The following are excerpts taken from the Pre-Feasibility Assessment prepared by Randall Conrad & Assoc. Ltd. that was submitted to the City of Lloydminster in February 2003: CURRENT FACILITIES The City of Lloydminster currently operates three indoor ice arenas: 1) The Civic Centre 2) The Russ Robertson 3) The Archie Miller The Civic Centre and Russ Robertson are fully operational, structurally sound and capable of operating for the next 15 years. The Archie Miller has reached is useful threshold and should be retired. Currently there is no dedicated indoor soccer facility. In large urban centres indoor soccer has grown at 15% per year over the past five years as costs associated with soccer are lower than those associated with hockey and figure skating. Growth is forecasted to remain at 10 15% over the next three to five years with it stabilizing at 1% a year thereafter. DEDICATED USERS The following table provides a general breakdown of the dedicated user market by estimated numbers of users. Over 61.4% (close to 700) of these users represent youth between the ages of 6 and 19. Middle-aged adults playing on recreational hockey teams represent 25.3% and the remaining 13.3% consist of competitive hockey teams. Dedicated User Market _____________________________________________________________________________ 2000 _____________________________________________________________________________ Minor Hockey 50% Skate Club 20% Adult Recreation 21% Blazers Junior A Hockey Team } Bandits Junior B Hockey } 9% Participation Hockey } _____________________________________________________________________________ Total Approximate 100% _____________________________________________________________________________ General Public Users (Public Skating) Based on 1996 provincial participation rates done by Alberta Recreation Survey close to 30% of Albertans ice skate (not hockey) at least once per year. It is unknown whether this occurs indoors or outdoors however if 30% of Lloydminster residents (6,600) were suggested to skate at least once per year and half did so in arenas, then some 3,300 participants would represent the Lloydminster market. School Users In 2000 schools booked close to 215 non-prime time ice slots for classroom outings. Assuming that repeat visitation occurs four times per class per season and that there are on average 25 pupils per class then the school use market could approach 1,000 participants each year. It is not known how many of these participants are also enrolled in community based programs.

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PRESENT DEMANDS OF USER GROUPS Based on the findings of the consultant contacted to do the study for the Multiplex Sports Centre for the city of Lloydminster, here are the key findings: Minor Hockey Minor hockey booked approximately 2458 hours of ice time in 2000. The time was allocated to teams for practices, local league games, games with other communities and tournaments. It is estimated that local minor hockey teams on average will receive 1 1.5 hours per week for practices and 1 1.5 hours per week for games. More competitive teams, which interlock with outside leagues, will receive more than 3 hours of ice time per week while others will receive as few as 2 hours per week. It has been suggested that this average rate of participation is insufficient for quality program skill development. Most rural and smaller municipalities achieve rates of 3 4 hours per participant per week. Large cities achieve 1.5 2 hours and small cities are typically at 2 hours per week and demanding more ice time. The Multiplex Project Board is concerned about the ability to provide and sustain a quality program for Lloydminster youth without additional ice.. They are also concerned about the increased need to travel on winter highways. Based upon growth and the need to improve the quality of the program, Minor Hockey suggests a current need for a minimum of 650 additional hours per season. This would effectively provide an average program standard of close top 2.8 hours per week per participant. Future expected growth in registration is suggested to warrant the need for an additional 650 hours per season within five years time. This represents an incremental demand of some 1,300 seasonal hours over the next five year. Skate Club/Figure Skating The Lloydminster Figure Skate Club registration has remained relatively stable in numbers over the last four-year period in Can Skate, learn to, junior and CFSA (Canadian Figure Skating Association) programs. The club is concerned that they cannot provided a full CFSA program. In essence, more ice time is needed to not only advance competitive teams, but to qualify at a provincial and national level. The club has suggested the need for an additional 80 hours per season to provide adequate program development. Any additional hours would be consumed with private lessons and it would enable the club to diversify its program base for families. SUMMARY OF DEMAND (PRESENT) FOR PRIME TIME ICE # OF EXTRA HOURS DEMANDED Minor Hockey 650 Skate Club 80 Competitive Teams 300 Old Timers and Casual Teams 100 Public Skating (estimate for double the current) 79 ______________________________________________________________________________________ Total 1209 seasonal hours GROUP

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Indoor Soccer The consumption rates of indoor soccer are at this time unknown since the opportunity/space is not provided for in the city or surrounding area. School gymnasiums are required for practice and training by the few teams that can be fielded given current capacity restrictions. The phenomenal growth in indoor soccer, if a facility is provided in the region, would attract approximately 800 participants, or close to 50 teams who would demand at least 2 hours per team per week of prime time bookings or 2,700 seasonal hours (27 weeks). The 500 participants currently engaged in an indoor soccer programs would see 33 teams demanding approximately 1,780 prime time hours or enough to warrant one indoor soccer arena.

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