Sierra Planning and Management Velodrome - Town of Milton

Velodrome Business Plan – Town of Milton 65
Exhibit 33: Combined Federal and Provincial Tax Impacts ‐ Construction
2011 Income Tax Estimate - Construction
9.3 OPERATIONS
The operation of the velodrome represents an assumed on-going annual statement of impact – the annual
impacts can be expected to vary from year to year as the operations, level of activity and overall function of
the building evolve over time. The estimates contained herein are based on the existing business plan
prepared for the facility.
Annual employment impact from operations is demonstrated below based on the assumption of FTE
positions. A number of personnel at the facility would not be expected to hold FTE positions, but would
comprise the event staff and concession operating staff, and others, that work the event days only. We
have assessed the scale of employment based on the existing business plan and translated this into an
estimate of direct employment at the velodrome. The result is an estimated FTE base of 18 direct jobs and
an increase of 5 FTE indirect positions in-province and an additional 1 FTE indirect job out-of-province.
9.4 VISITOR SPENDING IMPACTS
9.4.1 EVENT IMPACTS
FTE
Estimated Federal
Tax/FTE
Estimated
Federal Tax FTE
Estimated
Provincial
Tax/FTE
Estimated
Provincial Tax Total Taxes
Direct
Construction 129 $6,693 $862,790 129 $2,887 $372,157 $1,234,947
Consulting/Other 61 $7,680 $471,134 61 $3,298 $202,331 $673,465
Sub-Total 190 $1,333,924 $574,487 $1,908,411
Indirect
Industry Aggregate 77 $3,534 $270,976 77 $1,449 $111,090 $382,066
Total 267 $1,604,900 $685,577 $2,290,477
Note 1: Tax estimates are reduced by the amount of basic personal allowance and non-refundable tax credits
Note 2: Industry aggregate is an aggregate estimate of employment income in all industries that supply the construction and the
design/consulting firms engaged directly on the project
Major events hosted at the Milton Velodrome will also generate potential economic impact. As an
international standard 250-metre velodrome – currently one of only two 250-metre velodromes in North
America – it has the potential to host a number of major events after the Pan Am Games. The impact from
the Pan Am Games is expected to be significant, but the estimates presented here exclude the impact of
one-off events such as the Pan Am Games. This analysis focuses on the annual provincial, national and
international track cycling events which could be hosted at the velodrome (see Section 4.5 for a full listing
of potential event hosting opportunities).
Any provincial, national or international event held at the velodrome will generate visitor spending locally
on accommodation, retail and food and beverage, with the scale of impact depending on the number and
provenance of participants and length of the event, among other factors.
Business Plan | January 2012
Sierra Planning & Management
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