Open for business: Vancouver Park Board approves new revenue strategy

Artistic rendering of the 2008-rejected proposal to build an observation tower at Queen Elizabeth Park in Vancouver. (Henriquez Partners Architects)

Vancouver Park Board staff have compiled an action plan that identifies potential new revenue-generating opportunities to help support the growing cost of maintaining and renewing parks and recreation facilities.

This comes seven months after Park Board commissioners made a request to staff to create a report on new opportunities.

After being presented with the plan Monday evening, Park Board commissioners approved the action plan as outlined by staff.

“Preliminary estimates show that the identified revenue-generating opportunities can generate significant net new revenue annually once the initiatives identified in the Think Big Action Plan are implemented. The estimated revenues can improve over time,” reads Park Board staff’s new report.

At the same time, the report adds, “There is a desire to balance opportunities to be ‘open for business’ with retaining and protecting what makes Vancouver unique and desirable to visitors and a space welcoming to all members of the public.”

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It is noted that a more detailed review of the Park Board’s existing facilities and assets could generate more revenue, including more event venues, rental spaces, advertising, and more vehicle parking. There is also untapped potential in donations, partnerships, and sponsorships to potentially help fund programming and initiatives.

Fees and charges could be further increased, such as for programs and services that carry user-based costs in other municipal governments, but are currently free in Vancouver.

Ever since the January 2023 member motion on exploring new commercial revenue opportunities was approved by Park Board commissioners, Park Board staff worked on interim strategies such as improving concession menus, collaborating with third parties to determine the feasibility of a seasonal, destination attraction, and increasing the number of special events.

For example, earlier this year, the Park Board approved the staging of The Great Outdoors Comedy Festival at Brockton Cricket Fields in Stanley Park, which is expected to see up to 10,000 ticketed attendees per day over the course of the three-day weekend event in the middle of September 2023. This event will be headlined by Kevin Hart and Russell Peters.

Within the coming year, Park Board staff will explore a new infrastructure fee, enhance its marketing strategy and create a brand identity, expand Park Board-operated sports leagues, provide more lighting for sports facilities, enhance hospitality services and products, and activate spaces with third-party pop-up/mobile vendors. There is also an opportunity for Indigenous-themed attractions and programming in collaboration with local First Nations.

It is noted that some initiatives need additional staffing resources, but these labour and resource-intensive programs also provide “the greatest estimated financial gains that can support the maintenance and renewal of Park Board assets, provide substantial benefits to the community, and lower the required tax-funded contributions.” It is suggested the Park Board could potentially pursue third-party partnerships with companies to achieve these revenue-generating initiatives.

The temporary zipline atop Queen Elizabeth Park in Summer 2015. (Daily Hive)

Upgraded tennis courts in Stanley Park, funded by National Bank. (Brennan Bastyovanszky)

queen elizabeth park observation tower vancouver

Artistic rendering of the 2008-rejected proposal to build an observation tower at Queen Elizabeth Park in Vancouver. (Henriquez Partners Architects)

Additionally, the new action plan outlines a new process for considering unsolicited proposals by companies and organizations. According to Park Board staff, they receive many unsolicited proposals and currently do not have a formal process to review them.

In 2008, the Park Board seriously considered an unsolicited private proposal to build and operate a 200-ft-tall landmark observation tower atop Queen Elizabeth Park, next to the Bloedel Conservative. It would provide 360-degree views of the region. But the proposal, designed by local architect Richard Henriquez, was rejected by a majority of Park Board commissioners due to opposition from local residents.

In Summer 2015, the Park Board permitted a pilot project to partner with a private company to operate a temporary zipline attraction above the quarry gardens at Queen Elizabeth Park. This originated as an unsolicited proposal.

This past May, a local group revealed its unsolicited proposal concept of converting the abandoned polar bear enclosure — a remnant of the closed Stanley Park Zoo — into a year-round Scandinavian-style sauna destination.

Park Board staff note that unsolicited proposals in other unnamed municipalities led to building new sports facilities, such as a tennis centre, arena, and indoor soccer centre.

Earlier this year, National Bank funded the complete retrofit of six popular tennis courts at Stanley Park, which were used for the National Bank Stanley Park Open tournament last week.

While an unsolicited proposal review process will be created, Park Board senior project manager Michael Marousek suggested it could be advantageous to create a framework informing businesses and organizations of the priorities, whether it be location or the project.

“Through that exercise, we find a service provider to provide that service to the public. We’re now in a position where we have a lot of proposals that have been waiting, and we have money on the table because we don’t have a process to evaluate these proposals,” said Marousek.

“Over time, we just don’t want to evaluate proposals that someone comes to us with — we want to go the market with asking specifically what providers would like to deliver to the public.”

ABC commissioner Marie-Claire Howard suggested it would be beneficial to have both unsolicited and solicited proposals to enable the creativity and innovation it would potentially bring.

stanley park zoo polar bear enclosure spa

Cold and hot pools; conceptual artistic rendering of the spa attraction at the former polar bear enclosure of the closed Stanley Park Zoo. (Tony Osborn Architecture & Design)

Underground cave pool; conceptual artistic rendering of the spa attraction at the former polar bear enclosure of the closed Stanley Park Zoo. (Tony Osborn Architecture & Design)

Main entrance; conceptual artistic rendering of the spa attraction at the former polar bear enclosure of the closed Stanley Park Zoo. (Tony Osborn Architecture & Design)

Site plan of the spa attraction at the former polar bear enclosure of the closed Stanley Park Zoo. (Tony Osborn Architecture & Design)

According to the analysis, the Park Board already generates relatively high revenue levels. In 2022, it budgeted $99.28 per capita — ahead of New York City’s $16.28 per capita, Calgary’s $44.38, Toronto’s $49.36, and Surrey’s $65.58, but behind San Francisco’s $155.89.

Of these six cities, Vancouver’s municipal park and recreation system had the highest proportion of non-tax funded revenue sources, with 46% in 2022. This is ahead of Calgary (35%), Surrey (33%), Toronto (29%), San Francisco (26%), and New York City (10%).

It is noted that the Park Board saw about $64 million in total revenues in 2022, and it has budgeted just over $71 million for 2023.

The top revenue generators in 2022 from business services were the golf courses, which raised $11.6 million, following the VanDusen Botanical Gardens at $4.5 million, concessions at $3.4 million, Stanley Park Train at $2.2 million, Bloedel Conservatory at $1.1 million, and event permits and other sources at $1 million.

The leading revenue source of golfing is generated by the facilities of the Fraserview, Langara, and McCleery golf courses, and the Stanley Park, Rupert Park, and Queen Elizabeth Park pitch and putts.

During the meeting, Commissioner Howard suggested the Park Board’s fees for its golf courses are underpriced, going as far as calling the facilities “dirt cheap,” and that there is room to increase revenue even further.

For revenues generated by recreation services in 2022, admissions saw $11.5 million, programming saw $4.8 million, and recreation facility rentals saw $4.5 million.

Parking revenues totalled $8.4 million last year, and are projected to increase to $10.3 million in 2023. A substantial portion of the Park Board’s parking revenues comes from Stanley Park.

“One area that resonates for me is the area of parking. When we look at our destination parks and beaches, we know those are spaces that are enjoyed by residents who don’t live in Vancouver and don’t pay Vancouver taxes,” said Park Board acting general manager Steve Jackson.

“Charging for parking and spaces like that gives us an opportunity to leverage visitors to fund critical services within the Park Board system as well as some of our infrastructure challenges.”

Cactus Club Cafe English Bay. (Cactus Club)

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