ALBERNI PACIFIC RAILWAY 2020 2024 budget presentation Citys

ALBERNI PACIFIC RAILWAY 2020 – 2024 budget presentation

City’s Strategic plan • 2. 1 The tourism / visitor sector of the local economy flourishes • 2. 1. 1 Encourage tourism-related development and infrastructure – Steam train will bring more tourist to Harbour Quay and town center. • 3. 3 The City’s Heritage Network , assets and stakeholders are aligned and provide services desired by the city • 3. 3. 3 Explore opportunities for Heritage assets to support Economic Development related priorities - The steam train offers another reason for tourists to stay overnight and spend money locally

City Attractions • A web search offered these attractions for tourists; – Hiking and biking trails – Lakes and Rivers, waterfalls – Ride the Frances Barclay to visit west coast communities – Harbour Quay, Victoria Quay, Canal Beach – Mc. Lean Mill National Historic Site (City & Chamber websites) – The Alberni Pacific Railway (Chamber of Commerce websites)

City’s tourist Information online • The Mc. Lean "Steam" Sawmill is the only commercial steamoperated sawmill in Canada. You can experience the excitement of steam, as the sawmill cuts wood for demonstration and sale. The resident Tin Pants Troupe make history come alive as they entertain with stories of days gone by, and guided tours of the site. You'll see the old original buildings and lots of restored logging equipment around the site including a steam donkey, logging trucks, graders, and lumber carriers. • This information and the steam train info are also available on the City’s Heritage Network site

APR history 2 Spot Tourist train from 1984 to 1994 along waterfront 1996 operation started with No. 7. In 2001 train started runs to Mclean Mill.

2020 • Full operation with the No. 7 2 -8 -2 T steam locomotive. • Rebuild the brand.

2020 operation • 44 days of summer weekends and special days • 162 runs between the Train Station to Stamp Ave. • 3 runs per day of Fridays, 4 runs per day Saturday & Sunday • Revenue based on 4, 500 passengers (avg. $9. 43/ passenger = revenue of $42, 768) • Staffing requirements – manager, mechanic, some paid crewing • Operation with diesel fuel – reduces carbon foot print but at higher cost. Unsure of fuel consumption as we have not used this in the past. • Need to do some track work to meet standards. • City contribution $150, 732

Items not under our control • Insurance cost (regardless of distance and number of runs) • Number of Passengers (requires aggressive marketing) Part time Manager required to over see these items: – – – Training of crews (no longer in house) Track repairs (may require contactor) Regular track inspections (monthly in 2020) Operations certification by Technical Safety BC Ensure a standard of documentation.

Current status of No. 7

Current status of passenger cars All windows smashed out of 2 closed cars Many seats slashed in 3 open cars

Track Maintenance Nov 2019

2021 and beyond • Full operation of steam train to Mc. Lean Mill

2021 – 2024 operations • Run to Mc. Lean Mill with No 7 steam locomotive • Operation 2 runs per day, 3 days per week, 84 runs total • Revenue generation – – – 2021 – 5, 000 pass. @ $17. 30 = $86, 520 2022 – 6, 000 pass. @ $$16. 87 = $101, 220 2023 – 7, 000 pass. @ $19. 76 = $138, 300 2024 – 8, 000 pass. @ $22. 987 = $183, 330 Additional grants and sponsorships to be investigated. • City funding – 2021 - $186, 180 ; 2022 - $172, 030; 2023 - $112, 250; 2024 - $57, 970 • No funding included for track maintenance on ICF right of way – city to negotiate. • If no site operator – Provide docents on train to provide tours of mill site

2021 – 2024 operations cont’d • 2021 – additional funding for repair of diesel 8427 to use as back-up locomotive – Funding for janitorial services, station staffing, fire watch during extreme dry spell – Funding for marketing support • 2022 – – Additional funding for repair of bridge at Dry Creek

Heritage BC information • Tourists are more likely to choose heritage-related activities over other activities offered in a community. Heritage activities rank fifth and seventh in a list of 23 activities for travellers to Canada. Travellers prioritize heritage-related activities ahead of festivals, camping, amusement parks, and shopping. • Tourists prioritize heritage over golfing, shopping, and sporting events when choosing their vacation destinations. When considering vacation activities on which to base an entire trip, visiting “heritage sites” ranks second (out of a list of 46 options). “Art galleries or museums” ranks 11 out of 46 activities. • No matter where they come from, tourists seek out museums and heritage sites Museums and historic sites rank among the top five trip activities for US and international tourists when visiting every region of BC.

Return on investment • With a return of investment of nearly 1 to 2, heritage tourism makes dollars and sense. Heritage-related tourism is a significant contributor to BC’s economy. Of the nearly $40 M invested in heritage tourism, an equal amount is generated through indirect and induced spending (e. g. hotels, restaurants, support services). The original investment also generates $34 M to BC’s GDP and $5. 7 M in tax revenue. $1 heritage investment = $2 spending, GDP and taxes

Other Options • Only operate on special occasions along waterfront. – Pros – • less cost to city, approx. $75, 000 – Cons • does not build brand for tourists • same cost for insurance, track maintenance, Technical Safety BC requirements with training and management standards • If there is a desire to get the train running to Mc. Lean Mill, the longer the wait the more the cost. • No operation, just collection maintenance – Request $30, 000 to cover ongoing equipment and track maintenance for future operation.

Acknowledgements • Letter of Support from the A. V. Chamber of Commerce • Many dedicated hours by I. H. S. volunteers

DRAFT APR Budget - January 2020 Column 2 Column 3 Column 4 2020 Column 5 2021 Column 6 2022 Column 7 2023 2024 REVENUE Fundraising, Donations, Sponsorships GRANTS-City of Port Alberni 10, 000. 00 25, 000. 00 30, 000. 00 150, 732. 00 186, 180. 00 172, 030. 00 112, 250. 00 57, 970. 00 Capital Grants - Canada Summer Student, etc. 3, 500. 00 7, 000. 00 42, 768. 00 86, 520. 00 101, 220. 00 138, 300. 00 183, 330. 00 207, 000. 00 299, 700. 00 305, 250. 00 287, 550. 00 278, 300. 00 0. 5 APR Manager includes MERCS 25, 000. 00 25, 500. 00 26, 000. 00 0. 4 Railway Mechanic includes MERCS 24, 000. 00 24, 500. 00 25, 000. 00 3, 500. 00 7, 000. 00 21, 000. 00 20, 000. 00 40, 000. 00 20, 000. 00 Fire Watch 0. 00 5, 500. 00 5, 700. 00 Train Crew 7, 700. 00 8, 000. 00 20, 000. 00 40, 000. 00 15, 000. 00 2, 000. 00 7, 500. 00 5, 000. 00 Ticket Sales Total Revenue EXPENSE Staffing - train station/ancillary Annual Track, ROW & Bridge Maintenance Locomotive & cars Repair & Maintenance Reserve for scheduled major locomotive repair Janitorial - Station & Hilton Accounting and legal Advertising & marketing 0. 00 5, 000. 00 4, 000. 00 10, 000. 00 20, 000. 00 Bank Charges & Interest 1, 500. 00 Fuel - Diesel & Gasoline 41, 000. 00 82, 000. 00 84, 000. 00 85, 500. 00 87, 000. 00 Fuel - Bunker C 0. 00 1, 800. 00 2, 000. 00 3, 000. 00 30, 000. 00 32, 000. 00 35, 000. 00 4, 500. 00 5, 000. 00 3, 000. 00 Security 1, 500. 00 1, 750. 00 2, 000. 00 Supplies - Roundhouse, office & miscellaneous 2, 500. 00 3, 600. 00 Telephone/Utilities 6, 500. 00 7, 000. 00 7, 500. 00 Insurance - APR/Director Insurance - APR liability (formerly paid by city) Licences, Fees & Dues Repairs and Maintenance - Station & Roundhouse Training Total Expenses NET INCOME 2, 500. 00 207, 000. 00 298, 700. 00 305, 250. 00 287, 550. 00 278, 300. 00 1, 000. 00