Mr. Steve Barclay Assistant Director, Efficiency Unit (on behalf of Mr. Danny Lau, HAB)

1. PPP Duty Visit to CanadaExperience Sharing Seminar31 July 2006PPPs in Art and Culture Facilities Mr. Steve Barclay Assistant Director, Efficiency Unit (on behalf of Mr. Danny Lau, HAB)

2. Arts and cultural facilities visited • The Toronto International Film Festival (TIFF) Centre • Four Seasons centre for the performing arts • Royal British Columbia Museum

3. Four Seasons Centre for the Performing Arts

4. Four Seasons Centre for the Performing Arts • One of City of Toronto’s Cultural Renaissance Projects under the Sport, Culture and Tourism Partnership (SCTP) initiative • Capital programme between the federal and provincial governments in support of culture and tourism renovation and new construction

5. Four Seasons Centre for the Performing Arts • Site : 1.7 acre at heart of Toronto downtown • Auditorium : four tiers, 2,000 seats • Includes all facilitates and equipments for performing arts • New home for Canadian Opera Company • National Ballet of Canada will also be a tenant ( a 10-year tenancy agreement)

6. Four Seasons Centre for the Performing Arts • Total project cost : $181 million Federal Government ($25m) Ontario Government Land ($31m) + $10m Private donors ($115m) Naming donor of building ($20m)

7. Sources of income • Mainly occupied by Canadian Opera Company and National Ballet of Canada for 39 weeks • Other 13 weeks available for rental of auditorium and rehearsal hall • lounges and small suites let out

8. Roles of Government • The project proponent is the Canadian Opera Company • No Government representatives on the Board of Directors of the Canadian Opera Company • The Centre is a private building • The Centre receives an annual grant from the Government, accounting for about 10-15% of maintenance cost of the building • Follow procurement guidelines • Rental – Proportionality principle, at sustainable rates

9. The Toronto International Film Festival (TIFF) Centre

10. The Toronto International Film Festival Centre • Similar to Four Seasons Centre for Performing Arts, it is one of City of Toronto’s Cultural Renaissance Projects under the Sport, Culture and Tourism Partnership (SCTP) initiative • Capital programme between the federal and provincial governments in support of culture and tourism renovation and new construction

11. Partnership Private Public King & John Festival Corporation (KJFC) (TIFFG) Daniel’s corporation Ivan Reitman Family Charitable, cultural and non-profit organization receive Government grants

12. Partnership • Toronto International Film Festival Group (TIFFG) • Own and Operate • King and John Festival Corporation (KJFC) • Residential condominium development • TIFFG and KJFC select architect to design and build • Open in 2009

13. Facilities • 150,000 square feet of multi-use space • four dedicated year-round cinemas • plus two additional flexible screening spaces • a gallery • permanent collections and touring exhibits • reference Library • education facilities • a permanent box office and retail space (operated by KJFC) • a rooftop terrace offering an aerial view of downtown Toronto

14. Facilities Toronto International Film Festival (TIFF) Sprockets Toronto International Film Festival For Children Film Circuit (Films For Grass root) Cinematheque Ontario (TIFF group)

15. Sources of funding

16. Sources of funding • Government’s contribution - Canada Strategic Infrastructure Fund • supports large scale projects of major national and regional significance • in areas that are vital to sustaining economic growth • supports enhanced quality of life for Canadians • Largest donors • Bell Canada ($33m) • with naming rights

17. Sources of funding • Eligible expenses incurred by TIFF Group will be reimbursed by the Government of Canada once a formal contribution agreement is signed • TIFF Group and the Government will outline precise funding details • Financial support is conditional on meeting applicable federal and provincial requirements, including environmental assessments and the Canadian Environmental Assessment Act

18. Royal British Columbia Museum

19. Operated by The Royal British Columbia Museum Corporation • a Crown Corporation of British Columbia without share capital and incorporated under the Museum Act • fulfill the Government’s fiduciary responsibilities for public trusteeship of the Provincial collections and exhibits to illustrate the natural and human history of British Columbia. • the board is composed of individuals from the private sector • given a mandate to operate like a private body

20. Partnership • 11-15% of visitors will see the IMAX films • Two buildings integrated to share same entrance • The IMAX theatre commenced operation in 1997 • Agreement with Destination Cinema National Geographic signed in 1998

21. Partnership • Financial aspects • Land was provided by the Museum. Destination Cinema pays an annual rent to the Corporation • The Museum receives a royalty from Destination Cinema which is a fixed percentage of gross sale (incl. IMAX theatre, and concessionaires – retail and food and drinks outlets) • Cinema National Geographic pays a license fee to National Geographic • Cinema National Geographic financed and constructed the IMAX theatre at a cost of $ 8.4 million

22. Partnership • Financial aspects • IMAX theatre is operated by Destination Cinema on a self-financing basis. There is no subsidy from the Government. • IMAX theatre will be handed over to the Museum at no cost after 30 years • Within this 30-year period, the Museum has an option to purchase the IMAX theatre in every 10 years at fair market value

23. Partnership • Operation • management and operation of the IMAX theatre are distinct from those of the Museum • IMAX theatre has to inform the Museum 12 months in advance of the films they are going to screen in the coming year • the Museum has the right to decide (but in practice the Museum let the IMAX make their own decisions) on the films that may be screened by the IMAX theatre.

24. Partnership • Maintenance • IMAX and museum employed their own cleansing contractors • IMAX uses the admissions and security function of the Museum – and they pay for those. If IMAX Theatre wishes to have other support services, they pay for those also. Not yet polished by IMAX’s contractor Polished by museum’s contractor

25. Promotion • Joint tickets for the entrance to the Museum and the IMAX theatre at a lower price than individual tickets • Group sales for both the Museum and the IMAX theatre are conducted jointly

26. Lesson Learnt

27. Lesson learnt • Government cultural infrastructure subject to more public scrutiny and private boards will need to adopt government standards in areas such as: • Procurement • Public disclosure of finances; and • Accountability • Proposals need to be sustainable without relying on increasing government support for operations

28. Lesson learnt • Demonstrate a broader set of benefits attractive to a broader spectrum of the community over a longer period of time • Cost control measures are expected to feature more prominently in the execution of projects • will need to become more effective in getting non-traditional partners to support and lobby on their behalf

29. Lesson learnt Ingredients of success • Strong leadership at the political level • Coordinate among the various departments • Strong and transparent accountability mechanisms being in place and apparent to the public to gain and sustain public support for such investments • Ongoing monitoring and high standards of public reporting to ensure appropriate levels of due diligence in the expenditure of public funds • Able to demonstrate how these benefits are enjoyed by the broadest base of the community as possible

30. Thank You