Sierra Planning and Management Velodrome - Town of Milton

Sierra Planning & Management
60
60 Velodrome Business Plan – Town of Milton
Construction
Business Plan | January 2012
Total project
spending
Gross Domestic
Product
Employment
/wages
Taxes
Exhibit 28: Range of Economic Impact Measures
Operations
Total in-facility
spending
generated by
operations
Gross Domestic
Product
Employment
/wages
Taxes
Off-site
Spending
Total in-region
spending
Distinction
between sites
Each measure of economic impact can be further distinguished as either a direct, indirect or induced
impact. Direct impacts are one-time investments, spending or direct employment created by an
investment such as the development of the facility. Indirect impacts are employment or spending impacts
created in other industries in order to produce the materials (goods) and other inputs (services) necessary
for the construction work or those necessary for the ongoing operations of the facility. Induced impacts
are employment or spending impacts created throughout the economy resulting from the expenditure of
incomes generated through the direct and indirect impacts 16 .
With very few exceptions, velodromes typically operate on an annual deficit. This annual cost of operations
is, however, offset by the economic and social benefits which the facility provides to the community.
Spending at the facility and off-site spending can generate significant annual impacts.
Qualitative
Impacts
Reputational gains
Quality of life
Retention
/attraction
16 Input-output multipliers are derived from “open” system input-output tables prepared by Statistics Canada, for 2008
latest available year. They are used to assess the effects on the economy of an initial investment (exogenous change in
final demand for the output of a given industry) and its related impacts in the rest of the economy. National multipliers
can be provided using a “partial closed” economic system approach which results in estimates of direct, and an
aggregate of indirect and induced impact are provided; provincial multipliers do not estimate induced impacts (as they
are open system accounts). However, they provide estimates of in-province impact versus impacts in the rest of Canada
and therefore are more appropriate for the geographic specificity of the impact assessment. Induced impacts have very
little local impact but are spread across the economy; Input-Output tables used by Sierra Planning and Management are
based on the Provincial Input-Output tables for the Province of Ontario for 2008.