OWNSHIP OF MCKELLAR ECONOMIC DEVELOPMENT...

TOWNSHIP OF MCKELLAR

ECONOMIC DEVELOPMENT

STRATEGIC PLAN

The Townshipof McKellar

January, 2004

FedNor

unit architecture Inc.a

Canada

January 15, 2004 Mr. Jury Naklowych Chair - Economic Development Committee Township of McKellar P.O. Box 69 701 Highway 124 McKellar, Ontario P0G 1C0

03:1300 Dear Mr Naklowych: Re: Economic Development Strategic Plan

Final Report We are pleased to submit 15 copies of Economic Development Strategic Plan for the Township, and a digital .pdf copy on CD. It has been a pleasure working with you and the Steering Committee on this project. We wish you every success in its implementation, and would be happy to assist in bringing the Strategic Plan closer to realization. Yours very truly, MALONE GIVEN PARSONS LTD. John P. Genest, BES, MBA Partner cc: Stewart Adams, unit a architecture

Township of McKellar Economic Development Strategic Plan Submitted To: The Township of McKellar P.O. Box 69 McKellar, Ontario P0G 1C0 Submitted By: In Association With: Malone Given Parsons Ltd. unit a architecture 140 Renfrew Drive, Suite 201 184 Ossington Ave. Markham, Ontario Toronto, Ontario L3R 6B3 M6J 2Z7 Tel: (905) 513-0170 Tel: (416) 516-4656 Fax: (905) 513-0177 Fax: (416) 516-6690 [email protected] January 2004 03:1300

Township of McKellar Economic Development Strategic Plan TABLE OF CONTENTS

Malone Given Parsons Ltd. * unit a architecture

TABLE OF CONTENTS 1.0 INTRODUCTION .............................................................................................................. 1-1

1.1 Objectives for the Study.......................................................................................... 1-1 1.2 Organization of the Report...................................................................................... 1-2

2.0 THE RECOMMENDED STRATEGY............................................................................... 2-1

2.1 A Higher Function for McKellar Village................................................................ 2-2 2.1.1 Town Square and Streetscape Improvements ............................................ 2-4 2.1.2 Waterfront Improvements – Manitou and McKellar Landings .................. 2-6

2.2 Water and Land-based Trails Networks ................................................................. 2-9 2.3 Business Retention and Attraction........................................................................ 2-12 2.4 New Alliances....................................................................................................... 2-14 2.5 Marketing.............................................................................................................. 2-15 2.6 Capital and Operating Costs and Funding ............................................................ 2-16 2.7 Implementation and Action Plan .......................................................................... 2-18

2.7.1 Fund and Staff an Economic Development Intern Position ..................... 2-19 2.7.2 Build the Water and Land-based Trails Networks.................................... 2-19 2.7.3 Build a Framework for New Business ...................................................... 2-21 2.7.4 Initiate Marketing McKellar as a Tourist Destination ............................. 2-21 2.7.5 Initiate Marketing McKellar as a Business Location ............................... 2-22 2.7.6 Build Manitou Landing – Phase 1 ............................................................ 2-23 2.7.7 Build the Town Square and Streetscape Improvements - Phase 1............ 2-24 2.7.8 Build McKellar Landing ........................................................................... 2-24 2.7.9 Build the Town Square and Streetscape Improvements - Phase 2............ 2-25 2.7.10 Build Manitou Landing – Phase 2 ............................................................ 2-26

2.8 Economic Impacts................................................................................................. 2-30 3.0 FOUNDATIONS FOR THE RECOMMENDED STRATEGY ........................................ 3-1 3.1 Population and Demographics ................................................................................ 3-1 3.2 Labour Force and Employment .............................................................................. 3-2 3.3 Tourist Visitation, Expenditures and Activities...................................................... 3-3 3.4 Key Tourism Trends ............................................................................................... 3-8 3.5 Economic and Tourism Infrastructure .................................................................. 3-10 3.6 The Land and Waterway Base .............................................................................. 3-15 3.7 Issues and Opportunities ....................................................................................... 3-21 3.8 Threshold Feasibility Analysis of a Restaurant Operation ................................... 3-22 FIGURES 1. Location Map - McKellar Township .................................................................................. 1-2 2. Town Square, Streetscape and Waterfront Improvements for McKellar Village............... 2-3 3. Rendering – A Town Square for McKellar......................................................................... 2-5 4. Rendering – Manitou Landing ............................................................................................ 2-7 5. Water and Land-based Trails Networks in McKellar Township ...................................... 2-10 6. Re-designations for Commercial and Commercial/Industrial Uses.................................. 2-13

Township of McKellar Economic Development Strategic Plan TABLE OF CONTENTS


7. Potential Alliances and Strategic Partnerships in Economic Development...................... 2-14 8. Preliminary Capital Costs ................................................................................................. 2-16 9. Summary Chart of Implementation Steps and their Timing.................................2-27 to 2-29 10. Township of McKellar and Parry Sound District Age Structure, 2001 Census ................. 3-2 11. Township of McKellar and Parry Sound District’s Labour Force by Industry,

2001 Census ..................................................................................................................... 3-3 12. Traffic Volumes - Highways 69 and 124............................................................................ 3-4 13. Origins of Parry Sound District Visitors, 2001................................................................... 3-5 14. Main Purpose of Trip, 2001................................................................................................ 3-6 15. Tourism Spending by Visitor Type, 2001........................................................................... 3-6 16. Accommodation Choice of Visitors Staying in the North-Central Ontario

Travel Region, 2001............................................................................................................ 3-7 17. Activities Participated in During Trip, 2001....................................................................... 3-8 18. Selected Attributes of Core Cultural and Touring Segments............................................ 3-10 19. Business Structure in McKellar Township ....................................................................... 3-11 20. Accommodations Suppliers in McKellar Township......................................................... 3-11 21. Tourism Resource/Opportunity Matrix.............................................................. 3-13 and 3-14 22. The Asset Base in McKellar Township ............................................................................ 3-18 23. Site Conditions – McKellar Village.................................................................................. 3-19 24. Contemporary Precedents for Development Concepts for McKellar .............................. 3-20 25. Restaurant Locations and Characteristics along Highway 124 ........................................ 3-24 26. Threshold Feasibility Analysis of a Restaurant at Manitou Landing ............................... 3-25 Appendix 1: Detailed Preliminary Capital Costs Estimate – McKellar Village Improvements

Township of McKellar 1.0 Economic Development Strategic Plan INTRODUCTION

Malone Given Parsons Ltd. * unit a architecture 1-1

1.0 INTRODUCTION 1.1 Objectives for the Study

The Township of McKellar is a geographic township some 180 square kilometers in extent. Its principal settlement, the village of McKellar, is on Highway 124, roughly 28 kilometres east of the regional centre at Parry Sound (see Figure 1) in Parry Sound District. The village developed as a lumber milling and agricultural service centre at the rapids between McKellar Lake and Lake Manitouwabing, and has frontage on both of these waterbodies. The Township today has a population of roughly 940 permanent residents in 430 households. It is host to another 850+ cottage units. The Township’s economy is based on employment income from jobs in Parry Sound; the provision of construction and other services to the growing seasonal cottage population; and the provision of accommodations and related services to tourist visitors. Two recent events have prompted the commissioning of an Economic Development Strategic Plan for the Township. The first was the municipality’s striking of an Economic Development Committee to consider ways to build the area’s economic base, and its determination that a cohesive plan was required to guide public and private sector initiatives. The second was the Township’s acquisition of a 1.3 hectare (2.9 acre) site at its Lake Manitouwabing waterfront. After a competitive bid process and a successful application for funding from FedNor’s Northern Ontario Economic Development program, Malone Given Parsons Ltd. and unit a architecture were retained to develop the Strategic Plan. The Township gratefully acknowledges FedNor’s funding in enabling this work. The major objectives of the Strategic Plan are to identify initiatives that will: • Make the best use of the village land base and its new window on the

Lake; • Create new opportunities for economic growth in the tourism and other

local employment generating sectors; and, • Build on existing capacities by identifying new alliances and partnerships

supporting economic expansion. The study process designed to achieve these objectives addressed three steps: • Phase 1: Define the Baseline; • Phase 2: Identify Opportunities, Issues and Priorities; and, • Phase 3: Define the Economic Development Strategy and Action Plan. The process included consultation with stakeholding agencies and commercial interests in the Township, two public meetings, and three meetings with the study Steering Committee. This final study report presents recommendations and their basis in a top down manner that reverses the above order. Following this introduction, Section 2.0 presents the recommendations for an Economic Development

Township of McKellar 1.0 Economic Development Strategic Plan INTRODUCTION


Strategic Plan for McKellar Township, including its implementation and action plan. Section 3.0 describes the baseline conditions that define the foundations for the plan, and the opportunities, issues and priorities identified through the study process.

Figure 1: Location Map - McKellar Township

Sebright

Kahsha Lake

Gravenhurst

Severn Bridge

Longford

Atherley

Gamebridge

Beaverton

Dalrymple

Hawkstone

Oro Beach

GuthrieMidhurst

Elmvale

Waverley Moonstone

HorseshoeValley

Coldwater

VictoriaHarbour

PortMcNicoll

Midland

Port Severn

SawlogBay

SouthBay

HoneyHarbour

Washago

Sandy CoveDuclosPoint

Crown Hill

SevernFalls

Orillia

Barrie

Wasaga Beach

Edenvale

Orr Lake

Craighurst

ThunderBeach

Penetanguishene

Balm Beach

Allenwood Beach

Deanlea Beach

Nottawaga Beach

Meaford

Thornbury

Craigleith

Chatsworth

Berkeley

Singhampton Creemore

Duntroon

Nottawa

CollingwoodHeathcote

Brooke

BalmyBeach

Woodford

Kiowana BeachGeorgian Beach

Big Bay

Purple Valley

Rockford

Ravenna

Owen Sound

Stayner

Springmount

Bracebridge

Muskoka FallsPottersLanding

Foot's Bay

MacTier

Port Carling

Raymond

GlenOrchard

WoodsBay

Bala

Woodington

Humphrey

HorshoeLake

Orrville

Huntsville

ParrySound

Rosseau

Torrance

PortSydney

Badger'sCorners Melissa

Novar

Grassmere

Baysville

Millford Bay

SnugHarbour

Carling

WaubamikNobel

Fairholme

McKellar

TOWNSHIPOF

McKELLAR

DunchurchPort Craman

MapleIsland

Sundridge

SouthRiver

Bear Lake

Burk's Falls

Kearney

Scotia

Katrine

SturgeonFalls

North Bay

CooksMills

Meadownside

Nipissing PowassanChiswick

Astorville

Corbell

Callander

Restoule

GoldenValley

Redbridge

BalsamCreek

Champlain Park

Trout Creek

Key River

Bigwood

French River

Ouellette

Jamot

Monetville

St. Charles

HagarWarren

CacheBay

Verner

LoringLost Channel

Noelville

McVitties

Estaire

WahnapitaeSudburyLively

CopperClaiff

Coniston

McFarlaneLake

Bekanon

ByngInlet

Whitestone

BayfieldInlet Pointe au Baril

Station

Dillon

Kimberley

ForestHome

Britt

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Bear Creek

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apite

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RestouleLake

StormyLake

Lake Nipissing

Sturgeon RiverCache Lake

CommandaLake

MemesagamesingLake

Pickerel River

WasiLake

LakeNoshonsing

BernardLake

AhmicLake

EagleLake

LorimerLake

WahwashkeshLake

RiverMagnetawan

ManitouwabingLake

HealeyLake

SkeletonLake

MaryLake

Lakeof

Bays

Three MileLake

LakeRosseau

LakeJoseph

LakeMuskoka

LakeVernon

Moon

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Severn Sound

Nottawasaga

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Georgian

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MoonIsland

ParryIsland

FranklinIsland

SandyIsland

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ChristianIsland

BechwithIsland

GiantsTombIsland

GriffithIsland

HayIsland Beausoleil

Island

GeorginaIsland

ThorahIsland

Lake

Cou

chic

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Cape Croker

Cape Commodore

Cape Rich

O'Donnell Point

ShebeshekongRiver

NaiscoctRiver

Key River

Byng Inlet

Cree k

Commanda

River

South

TysonLake

Amateewakea River

Restoule R.WolseleyBay

Bigh

ead

River

Beav

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Syde

nham

DollarsLake

Big CaribouLake

NoganoshLake

LastLake

DuckLake

HarrisLake

Henvey Inlet LittleKey

River

KawigamogLake Chartier

Lake

BrayLake

PickerelLake

LongLake

North TeaLake

South

River

SpringLake

LittlePickerel River

MagnetawanRiver

Whitestone Lake

Still River

MineMileLake

TroutLake

DoeLake

Stirl

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Cr.

SandLake

HornLake

BearLake

BuckLakeSeguin River

WhitefishLakeOtter

LakeSpiderLake Blackstone

Lake

Twelve Mile Bay

Tadenac Lake

South Branch

Mus

koka

Kahshe Lake

River

RiverHead

Black

Stur

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Rive

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IslandLake

WavyLake White

Oak Lake

AllenLake

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Chann

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26

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Scale:

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Township of McKellar 2.0 Economic Development Strategic Plan RECOMMENDED STRATEGY


2.0 THE RECOMMENDED STRATEGY

The recommended economic development strategy for the Township of McKellar has five interconnected initiatives: 1. Transform the Village of McKellar into a higher functioning centre,

offering a wider range of more easily accessed services in a more attractive village-scale setting, adopting a heritage-based design theme;

2. Position McKellar Township as the accessible interior location for trails-based recreation – on the land, on the water, and on snow and ice;

3. Make McKellar into a more attractive location for business growth; 4. Partner with local and neighbouring entities to achieve mutual objectives,

and, 5. Market the Township as a more attractive location for cottaging, tourism

and business.

These together are seen as the best response to the Township’s unique combination of assets, constraints, opportunities and issues. They are described over the following pages, supported by discussion of preliminary capital and operating costs, definition of the action steps necessary to implement each strategic direction, and estimates of the potential economic returns to investment in the economic development strategy.

The essential logic of the strategy flows from the opportunities, issues and priorities described in Section 3.0 of this report. These can be summarized as follows: • McKellar Township and the village of McKellar on Highway 124 are not

fulfilling their potential as service centre and destination for permanent and seasonal residents or tourist visitors;

• That potential can be realized with public, private and volunteer sector investment in new infrastructure to improve the village’s attractiveness as a place to stop, shop, socialize, dine and/or access the area’s recreational resources; and in creating trails networks accessed from the village and the Township’s other settlements;

• Attracting new employment, particularly industrial employment to McKellar will always be a challenge. The potential for success can be improved by making the municipality a more attractive and compelling place to live, and by indicating and promoting a strong municipal interest in attracting new employment. Existing businesses are also seeking sites for expansion;

• McKellar, its neighbouring municipalities, its businesses, its permanent and seasonal residents and cottage associations, other clubs and organizations and senior government funding programs share many common objectives. Mutual benefit can be gained by coordinating efforts and leveraging each-other’s investments. McKellar’s limited fiscal and staff resources, make this partnering approach critical to the success of the Economic Development Strategic Plan;



• Marketing is a necessity to “get the word out” to residents and tourists about the assets and experiences available in McKellar.

2.1 A Higher Function for McKellar Village

Crafting a higher function for McKellar village is conceived as fulfilling four goals: 1. Enabling the village to better respond to the day to day shopping, service

and social needs of the Township’s permanent and seasonal residents; 2. Making the village into a more attractive place to stop, shop, socialize,

dine, and access area resources; 3. By virtue of the first two, position the village as the first place to go for

day to day needs, and a top of mind “portal” for access to water and land based trail systems; the first stop along “the Great Northern Road”; and, with success on these three;

4. Make McKellar a more attractive location for new enterprise and perhaps younger families.

This higher function for the village is conceived as an outcome of two village–focussed initiatives, and others described subsequently under the headings Water and Land-based Trails Networks, Business Retention and Attraction, New Alliances and Marketing. The village-focussed initiatives target: • Improvements to the appearance and function of the Catherine Street,

Centre Road and Highway 124 frontages, including creation of a “Town Square” area; and,

• Improvements to the village’s waterfronts on McKellar Lake and Lake Manitouwabing, and the elevation of these sites to places with names and identities – McKellar Landing on that lake, and Manitou Landing on Lake Manitouwabing, to take benefit of the market profile of the renowned Inn at Manitou and the new Manitou Ridge golf course. The improvements to McKellar Landing focus on making it a more attractive and functional place for boat traffic to access/depart from the village. The improvements to Manitou Landing envisage improved docking, a children’s play area, a kayak/canoe centre, marina services and a restaurant overlooking the lake.

The village-focussed initiatives are illustrated in plan view in Figure 2 on the next page. Overall, the intention is to create an identifiable core for the village, with clearly demarcated and pedestrian-friendly linkages to each of the Landings, all to encourage and support visitor and resident exploration of the village and Township, pedestrian movement throughout the village core, and sustainable four season recreational activity. The expected introduction of beer and wine sales to the village will be one step forward in expanding the scope of services available locally. The recommended improvements are

Figure 2:TOWN SQUARE, STREETSCAPE AND WATERFRONTIMPROVEMENTS IN McKELLAR VILLAGE McKellar Township

Economic Development Strategic Plan

January, 2004

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CanadaFedNorunit architecture Inc.a

MANITOU LANDING

McKELLAR LANDING



Put forward as more substantive steps in making the village’s Highway124, Centre Road and Catherine Street frontages more attractive to other new lines of business, and more functional to the Township’s residents and visitors.

Design themes are expected to incorporate elements that celebrate the history of the community, use indigenous natural materials in the construction of new elements, and adopt a contemporary architectural vocabulary that is sympathetic and unique to McKellar’s strong agricultural and lumbering history.

2.1.1 “Town Square” and Streetscape Improvements

The “Town Square” and streetscape improvement initiatives target upgrading the pedestrian environment to encourage walking, socializing, exhibitions and general village animation in a compact area. These improvements, particularly the creation of a pedestrian loop along Catherine Street are also expected to encourage the diversification of the village’s retail base. A “main street” approach to parking is recommended, whereby as much on- street parking as possible is provided for, commensurate with other design objectives. Those retail sites that can support on-site parking should do so, but an inability to meet a stand-alone or plaza type standard should not be a barrier to a new retail use. The Highway 124 improvements are intended to increase the village identity and definition, and contribute to the slowing of through-traffic through the creation of several new design elements. The recommended elements are: • “Reclamation” of the sides of the public road allowance on Centre Road

in front of the general store from vehicle parking to a paving stone “square” with benches, planters, lighting and a trellis providing space for annotated historical photographs of the village, a village map and community notices; provision of a counterpart area along the east side of the road, replacing the existing curb stones up to the driveway access point to the adjacent store (see Figure 3);

• Construction of a new sidewalk along the west side of Catherine Street to link the “Town Square”, village retail, Manitou Landing and the existing swimming area at the government dock;

• Construction of sidewalks along Highway 124, linking the Town Square area to Manitou and McKellar Landings;

• Creation of a series of naturalized gardens along Highway 124 including wetlands, wild flower meadows and climbing creepers on a trellis. Location and site topography dictate the landscape type. In front of Manitou Landing, the existing ditch will be converted into a unique ecological zone, a wetland, providing storm water management that filters and stores water from the adjacent parking lot. At Centre Road, the



Figure 3: Rendering – A Town Square for McKellar



proposed wild flower garden is framed in a pressure treated wood and copper clad bed that is tilted for maximum view impact from the window of a moving vehicle. At the Community Centre the embankment is seeded with wild flowers. Across from McKellar Landing, a trellis provides support for climbing creepers;

• Construction of gateway elements defining the village limits, incorporating “Welcome to McKellar” signage, rumble strips and adjacent naturalized plantings, with one element installed just south of Manitou landing (see Figure 2) the other to the north of the Armstrong Lake Campground road;

• Business façade and signage improvements, in a McKellar heritage theme, funded in part through Community Improvement grants and loans as enabled in the Township Official Plan;

• Council might also consider having Highway 124 and Centre Road within the village designated as a “Community Safety Zone”, so that higher fines for speeding vehicles can provide added incentive to slowing down. The paving stone treatment recommended for Centre Road at t he Town Square would also act to slow traffic through the Square area.

These improvements are recommended for implementation as four discrete “projects” in two phases. Phase 1 would proceed at the same time as the parking and docking improvements at Manitou Landing, and address: • The Town Square improvements, including the sidewalk extension along

Catherine Street; • Building façade improvements and their prerequisites (addressed under

Implementation in Section 2.7); and, • The wetland and sidewalk improvements at or providing access to

Manitou Landing site, and the west gateway signage. Phase 2 would address the remaining Highway 124 streetscape improvements and should occur prior to or at the same time as the Phase 2 improvements at Manitou Landing (see below). The design themes developed for both phases should guide any subsequent development or renewal along Highway 124 or Catherine Street.

2.1.2 Waterfront Improvements – Manitou and McKellar Landings

As introduced above, the improvements to the “Landings” sites are intended to: 1. Improve the village’s accessibility to cottage–based boat traffic; 2. Improve access to the lakes by tourists; and, 3. In the case of Manitou Landing, create a new point of activity and

attraction for Township residents and tourists. Each is described below, starting with Manitou Landing at the Township’s recently purchased Minerva Park site (see Figure 4).



Figure 4: Rendering – Manitou Landing



Two phases of investment are recommended. The first is largely a public sector investment and creates the basis for the second, with a substantial private sector component. The recommended elements for the first phase are: • Dock construction on the lake side of the site; • Construction of landscaping and walking paths linking the docks to the

village core via a heritage footbridge connection to Catherine Street, and to Highway 124 (see Figure 2);

• Construction of a children’s play area; • Installation of benches overlooking the lake, the river mouth and the play

area, offering locations for all ages and temperaments; • Installation of interpretive panels, with historical photographs and text

describing the site in its milling heyday; • Construction of shore side facilities to support a canoe/kayaking skills

centre; • Examination of the feasibility of removing hazards to navigation in the

Lacie Narrows section of Lake Manitouwabing, and action as recommended by that analysis. [Note that perceptions of the magnitude of the hazard posed by shallow depths to rocks/stumps in the narrows vary, as do perceptions of the extent to which these pose a barrier to access to the village by boats from downstream of the narrows];

• Leasing of additional portable toilets as necessary to support additional activity at the Landing; and,

• Construction of a surfaced parking lot with an oil/grit separator to manage surface run-off quality [discharged to the wetland discussed above].

The Phase 2 elements consist of: • Construction of a Manitou Landing Pavilion, including expanded

docking, marina and small boat/canoe/kayak rentals, change rooms and washrooms at grade, and a 400 square metre/40 seat restaurant with deck above. The Pavilion is envisaged as being built under a partnership leasehold agreement with a private investor/operator, with the municipality retaining ownership of the site. Its design should be a contemporary interpretation of McKellar’s earlier mill architecture. Interior design for the restaurant should consider the incorporation of historical photographs from the area, as published in the McKellar Memories history by Evelyn Watkins Moore (2003), and paintings and other imagery by area artists. These should include images from the Broadbent and Hurdville areas as a prompt for travel to those locations. The constrained area of the Manitou Landing site suggests that sewage treatment requirements for the proposed uses may have to be fulfilled at the Township works yard across Highway 124. While not an ideal



circumstance, there is a precedent for such an arrangement at the Wendy’s/Tim Horton’s complex on Highway 69 at Nobel. It is understood that there are pressures to reconfigure the works site to increase the separation distance between the sand/salt storage pile and the lake. This reconfiguration, or the relocation of the storage function to another site, could enable incorporation of the septic bed into the site. Ideally, additional parking for visitors to Manitou Landing and the village could be incorporated as well.

The improvements to McKellar Landing target enhancement of the swimming, boat docking, parking and the pedestrian environment. The recommended elements, as illustrated in Figures 2 and 3, are: • Expansion of the dock to enable additional tie-ups; • Grading and paving of the parking area and launch ramp; • Construction of a pedestrian trail along the lakeshore, with ramp and stair

connections to the Highway; and, • Installation of additional landscaping and shrub and tree plantings. Over the longer term, if/when highway reconstruction becomes necessary, it is recommended that a bridge replace the current culvert over the stream connecting lakes McKellar and Manitouwabing. This waterway and the drop between the two lakes was the historical raison d’etre for McKellar and it is a shame to have it buried as it currently is. Any future bridge should also provide for a walkway and portage route connecting the two lakes at water level. Implementation of the McKellar Landing improvements should occur as one phase, and can occur concurrently or independently of other Village projects.

2.2 Water and Land-based Trails Networks

McKellar Township is very fortunate to have a series of assets that can support well-differentiated water and land-based trail experiences. These do not yet support activity in keeping with their potential. On the waterways side, these experiences are seen as tamer or softer than those offered by Georgian Bay, the Magnetewan River or Algonquin Park. However the water and landside experiences are also through landscapes that show more of human activity, which in turn can be interpreted as a distinct point of interest. The role of the waterways in supporting logging and milling is seen as a particularly interesting theme for distinguishing the McKellar experience.

1. As illustrated in part in Figure 5, the trails networks component of the economic development strategy calls for:

Hwy 124

Hw

y124

Hurdville

McDougall Rd.

Road

Broadbent Road

BalsamRoad

Cen

treR

oad

Village ofMcKellar

Hurdville

Crown Land

Broadbent

Crown Land

Figure 5:AND LAND-BASED

TRAILS NETWORKS INMcKELLAR TOWNSHIP

WATER

Township Boundary

Major Roads

Potential Waterway / Road “Loops”

Accommodations and Attractions Sites

Municipal Boat Launch Sites

Municipal Lots

Potential Municipal Picnic/ Swim Sites

Snowmobile Trails

Schematic Trails Links

McKellar TownshipEconomic Development Strategic Plan

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0 .5 5

Kilometres

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CanadaFedNorUnit architecture Inc.a

Taits Landing

Will-O-BendCottages

Glenwood Cottages

Rainbow CountryCottages & Marina

The Inn at Manitou/Camp Manitou

The Ridgeat Manitou

CampKodiak

BroadviewCottages

Armstrong LakeCampground

Dutcher LakeConservation Reserve

Ahmic Forest andRock BarrensConservation Reserve

ManitouwabingTent and Trailer Park

River Lake Cottages& Campground

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McKellarLake

Grey OwlLake



1. Creation of water-based travel routes for canoeists and kayakers,

accessed directly from Manitou and McKellar Landings, and from clearly identified put-in/take-out points on the Township’s road network. These routes include: a. The McKellar/Grey Owl/Lorimer Lakes “loop” (roughly 4 km to the

top of Upper Grey Owl Lake and back to McKellar); b. The Squaw/Moon River/Manitouwabing Lakes “loop” (roughly 13

km from the top of Squaw Lake to McKellar); c. The Little Ruebottom Lake/Manitouwabing River/Manitouwabing

Lake “loop” (roughly 20 km from the top of Little Ruebottom Lake to McKellar); and,

d. The Manitouwabing Lake bays and river loops, with the connection downstream to Mill Lake and Parry Sound (various distances).

2. Supporting the water-based routes with such hard and soft

“infrastructural” elements as portages, picnic and swim points, campsites, route markers, route maps with interpretive descriptions of the logging and agricultural histories of the water/landscapes traversed, and marketing. Several sites owned by the municipality and/or the Crown are well located for use as destinations or waypoints for picnicking, swimming or bush style camping.

3. Creation of land-based trails networks for machine and leg-powered travel through the Township, with connections to feeder and trunk routes in and outside of the Township. Two distinct networks are recommended, to minimize the potential for conflicts: a. Machine-oriented trails for snowmobile and ATV use, with a first

order focus on creating links between communities and to other trails systems (as in the snowmobile C101 feeder connection to the Seguin Trail), and a second order focus on fleshing out the local network. It is expected that a local group would take the lead in trail routing and clearing, with a municipal role in the provision of road signage and the improvement of parking and staging areas, and marketing;

b. Leg-powered trails for hiking, mountain biking, cross country skiing horseback riding and perhaps dogsledding. The recommended first order focus is on local networks to attract and sustain use by those already visiting the areas private and commercial accommodations, with a longer-term focus on expanding the network with links to other destinations and systems. Local groups are again expected to take the lead in routing and improving trails, with the municipal role addressing signage and parking/staging areas



To the extent practical, trails should connect to or start/terminate in McKellar, Hurdville and Broadbent, to maximize traffic to and through these centres, and business opportunities that might flow from that traffic. These opportunities are seen as arising over the medium to longer term for Hurdville and Broadbent, and include camping, accommodations, food services, and equipment rental and guiding services.

2.3 Business Retention and Attraction

The retention of existing business and the attraction of new enterprises are leading concerns to most every municipality. The economic development strategy for McKellar responds to this challenge both directly and indirectly.

The indirect initiative is the focus on improving McKellar’s attractiveness as an economic centre, by putting more “there” there, and building traffic to the municipality. The increased traffic will yield several benefits: • Making McKellar a more attractive location for current businesses; • Creating opportunities for more businesses; and, • Exposing McKellar to more people who might consider it a viable

location for enterprises unrelated to tourism or cottaging, with light industry serving as an example.

New tourist and cottage-oriented businesses which should find McKellar a more compelling location, particularly along the Highway 124 and Catharine Street frontages, might include: • Antiques shop; • Crafts shop; • Bakery; • Eco-tours/Trails-tours services; and, • Outboard/ATV/Snowmobile service & repairs.

New accommodations providers, particularly Bed & Breakfast and cottage court operations, would also find new traffic an invitation to market entry. More direct initiatives relate to the Township making a clear statement of its commitment to support appropriate business expansion and growth by re-designating lands in the village to enable a wider range of commercial and commercial/industrial uses. Two initiatives are recommended:

1. Designate lands fronting onto Highway 124, Centre Road and Catharine Street to enable retail and service commercial uses serving the permanent and seasonal residential and tourist markets, subject to re-zoning and site plan approvals (see Figure 6). Incorporate policies identifying performance standards addressing design guidelines and on-site vs. on-street parking requirements.



2. Designate lands fronting onto Highway 124 to the east of the village centre (see Figure 6) to enable dry and “clean” commercial/industrial uses, subject to re-zoning and site plan approvals. Incorporate policies identifying performance standards addressing controls on open storage, storm water management and design guidelines.

The availability of these lands for development, and their designations would then have to be marketed, as described in section 2.5. Note that from a structural land use perspective, it is considered very important to keep the west side of the village as a more rural and natural setting, hence the focus on the east side for commercial/industrial expansion.

2.4 New Alliances

McKellar Township’s small population, business and revenue base heightens the need for the municipality to leverage partnerships and alliances wherever it can. The matrix in Figure 7 identifies the various actors that must be engaged in implementing the recommended strategy; their expected roles are outlined in Section 2.7.

Figure 7: Potential Alliances and Strategic Partners in Economic Development

Activity

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InvestmentStreetscapes X X X XWaterfront X X X X XNew Business X X X XWaterway Trails X X X X X XLand Trails X X X X X X XMarketingMcKellar Experiences X X X X XGreat Northern Road X X X X X XBusiness Location X X X



2.5 Marketing

The Township’s small size and revenue base, and the relatively small number and scale of its tourist serving businesses create substantial challenges for marketing McKellar as a destination or business location. As introduced above under alliances, leveraging the Township’s investment and efforts will be critical to success. Two initiatives are recommended, focussing on: 1. Marketing McKellar as a Tourist Destination, on ‘the Great Northern

Road”; and, 2. Marketing McKellar as a Business Location It is recommended that marketing McKellar as a tourist destination be pursued through the following efforts:

• “Media Relations” initiatives, whereby a spokesperson is charged with the responsibility of contacting writers for newspaper and magazines with travel sections, cottage sections or content related to offerings in McKellar e.g. “Canoe & Kayak” magazine for an article on travel down the Manitouwabing River. The objective is to have writers visit and produce articles on the Township and its assets and initiatives. All articles should then be posted on the Township website.

• Partnership marketing initiatives with the Georgian Bay Country (GBC) destination marketing organization (DMO). For example, a marketing initiative led by GBC in 2003 leveraged every dollar invested by the private sector by a factor of five, accessing funds from the Ontario Tourism Marketing Partnership and FedNor. Given McKellar’s constrained budget and asset base, it is recommended that the Township participate directly in one initiative per year, with as much involvement by its tourism operators as can be generated. The most important initiative will be participation in the GBC’s lure brochure (see below). Investment in marketing should not begin until new experiences can be enjoyed, i.e., until the water and/or land-based trails systems are in place, with supporting mapping. Such mapping should be produced as a cooperative effort with area businesses acting as sponsors of printing costs in exchange for advertising space.

It is strongly recommended that such marketing occur as part of a joint effort by all municipalities along Highway 124. This more broadly based approach should occur under the banner of “the Great Northern Road” – the historical name for the highway, and a strong opportunity to create a “brand” for travel experiences within the corridor between Highways 69 and 11. This would enable a broader funding base, and stronger market impact. The initiative could start with finding a way to get signage on both the major north-south highways identifying the corridor and some of its major assets.



Marketing McKellar as a business location should be pursued through several approaches as well: • “Media Relations” initiatives, targeting newspaper business and lifestyle

sections and business and lifestyle magazines, including local and regional papers. All articles generated should then be reproduced on the Township website;

• Press Release/Fact Sheet descriptions of initiatives as they are realized, sent to all area papers and ratepayers, describing, for example, the Township’s re-designation of lands as an economic development initiative furthering McKellar’s efforts in attracting new business locations;

• Promoting site availability through the Parry Sound Area CB & DC, the Ministry of Economic Development and Trade’s Business Re-Location and Investment program (see http://www.2ontario.com ) and the Ministry of Tourism’s Regional Site Opportunities initiative (see http://www.2ontario.com/tourism/).

2.6 Capital and Operating Costs and Funding

A preliminary budget for the capital improvements to McKellar village is provided below in Figure 8, broken out by major phase and public vs. private sector commitments. “Private” in this case refers to investment in the restaurant/marina complex at Manitou Landing. “Public” includes funds committed by the Township, whether raised from its own coffers, through community fund raising or senior government grants. A more detailed break out of the costs elements is provided in Appendix 1. Capital costs for the water and land-based trails networks have not been estimated, on the premise that their construction would be accomplished largely through volunteer and club-based efforts. New ATV and snowmobile trails are expected to make as much use as possible of old logging roads. Costs for the water-based networks are expected to be minor, a global figure of $10,000 should cover all route related requirements.

Figure 8: Preliminary Costs Estimate - McKellar Village Improvements

Phase 1 Phase 2 Private Sector TotalsManitou Landing $580,000 $152,000 $690,000 $1,422,000McKellar Landing $200,000 $200,000Streetscapes $200,000 $8,000 $208,000Highway 124 $75,000 $195,000 $270,000Totals $1,055,000 $347,000 $698,000 $2,100,000

50% 17% 33% 100%

Costs include 15% contingency and fees, exclude taxes and fit-up.

Public Sector



Trailhead parking and staging areas for both the water and land based trails, including parking for 5 vehicles should be budgeted at $7-10,000 each. Operating costs for expert advice over the first years of the initiative will vary, peaking with investment in upfront costs for the Manitou Landing project. An average annual budget figure of $7,500 for say 5 years should cover such costs. Investment in marketing will also be a necessity, at a rate of at least $5-10,000 a year to fully launch the McKellar experience, again varying with the lifecycle of the initiative. Given the small number of tourist operators in the Township, much of that funding will have to come from Township coffers, and may raise ratepayer concerns. A response to such concerns, from an economic development perspective, is that these expenditures should be viewed as an investment in a more productive local economy, and a higher level of local service to permanent and seasonal residents. An annual expenditure of $20,000 on these initiatives would represent a one percent increase in the municipal budget, before any contribution from increased assessment from new growth. Similarly, if it is assumed that the new capital infrastructure will increase municipal operating costs by a quantum equivalent to say 10% of the municipality’s current and capital expenditures on transportation services, or $67,000 in 2002, this would equate to a roughly 3% increase in the municipal budget. Again, this can be viewed as the carrying cost of a higher level of service and a higher quality of life, before any contribution from increased assessment. With reference to Section 3.8 – the threshold feasibility analysis of a restaurant operation at the Manitou Landing complex, it is reasonable to assume that lease and tax revenues to the Township will be in the order of $25,000 per year. These revenues would help defray new operating costs, again before potential contributions from other new enterprises. It should also be noted that FedNor’s Youth Internship Program can provide up to $27,500 (in 2004) to fund wage, benefit and related incremental costs for a one year internship in economic development. Guiding and coordinating the recommended initiatives would qualify as a fundable job description, and would provide funding for a strong “kick-start” to the Strategic Plan. The contemplated $1.4 million investment in the “public” elements of the strategic plan for the village improvements is a substantial investment for a municipality of McKellar’s scale. While accessing senior government funding programs could reduce the municipal/community share to $700,000 at a 50/50 contribution, or to roughly $470,000 at a 1/3rd municipal share,



these are still substantial sums. To put those figures in a larger context, it is helpful to compare them to the quantum spent by potential tourist visitors to McKellar. Each tourist visitor (including cottagers) on average spent roughly $154 per visit to Parry Sound District in 2001. If it is assumed that there is sufficient infrastructure and reason to spend time in the Township such that each visitor to McKellar spends 50% of their “in-District” expenditure there, then “recouping” a municipal/community investment of $700,000 would take roughly 9,100 new visits to the municipality over the lifetime of the recommended projects. If this lifetime is assumed to be only 10 years long, then achieving 910 visits per year would represent a penetration level of roughly 1/10th of 1% of the 845,000 visits to Parry Sound District in 2001. The recommended initiatives should make surpassing this very small penetration a simple matter, thereby generating positive returns to that public investment.

2.7 Implementation and Action Plan

The recommended Implementation and Action Plan outlines the major steps necessary to implement the Economic Development Strategic Plan. The presentation is organized in order of the recommended sequence, supported by a timeline chart that shows how the different streams of activity can or should interact, at Figure 9. Overall, the intention is to structure implementation in a manner that starts with those elements considered to offer the quickest return to municipal and community investment, is efficient, creates a growing market rationale for increasing public and private sector investment, and maximizes returns to all stakeholders in the development of McKellar’s economy. The recommended sequence is as follows: 1. Fund and Staff an Economic Development Intern Position; 2. Build the Water and Land-based Trails Networks; 3. Build a Framework for New Business; 4. Initiate Marketing McKellar as a Tourist Destination; 5. Initiate Marketing McKellar as a Business Location; 6. Build Manitou Landing – Phase 1; 7. Build the Town Square and Streetscape Improvements – Phase 1; 8. Build McKellar Landing; 9. Build the Town Square and Streetscape Improvements – Phase 2; and, 10. Build Manitou Landing – Phase 2; A first step in each action initiative will be the designation of a member of Council as the “project lead”, with primary responsibility for directing the (through Council and the Clerk as appropriate) all activity necessary to implement each element of the Strategic Plan.



As illustrated in Figure 9 at the end of this subsection, there is no reason (beyond resource constraints) that some steps cannot proceed simultaneously. For purposes of presentation, it is assumed that McKellar can access sufficient capital funds to enable implementation of the Manitou Landing complex (Phase 2) in six years, or by 2010. On an annual average basis, this would require the Township to raise roughly $120,000/year from municipal/community coffers for capital spending, assuming 50/50 funding is available from senior governments.

2.7.1 Fund and Staff an Economic Development Intern Position

Given McKellar’s limited staff and financial resources, it is evident that accessing funds for, and making good use of an economic development intern position is a critical first step for the Township. The requisite action steps are: • Confirm program requirements and the eligibility of implementing the

action plan as a job description for an economic development intern position:

• Prepare and submit a funding application; • Advertise and fill the intern position; • Develop a work program for the internship period, focussing on carrying

on with the trails initiatives, developing the marketing programs, and supporting council’s efforts in the Town Square, Streetscape and Landings initiatives.

2.7.2 Build the Water and Land-based Trails Networks

Creation of the recommended trails networks will entail a number of action steps, as outlined below: Water Ways Trails • Retain expert advice in laying out attractive and safe travel routes; • Plot routes on large scale topographic maps, identifying logical put-in

and take-out points, carry-overs, portages, and existing municipal and crown property sites available for picnic/swim and bush style campsites;

• Identify any “must have” portages or carry-overs that occur on private property, and contact property owners to confirm their willingness and/ or requirements to let the property be used for that purpose; confirm viability of identified routes;

• Prepare working maps showing routes, features, mileages; • Prepare brief interpretive histories describing each route, its unique

characteristics and points of interest; • Seek commercial sponsors to underwrite the cost of map production in

exchange for advertising space on the map; • Layout, print and distribute maps through tourist information sites,

regional outdoor pursuits oriented retailers, the McKellar notice board and village retailers;



• Improve staging and put–in areas; • Engage the cottage associations and cottage-based users as the

municipality’s “eyes on the trail”, perhaps taking on responsibility for litter pick up, with the Township retaining responsibility for all heavier maintenance;

• Promote the McKellar Loops/Great northern Road paddling experience; • Maintain the trail routes and their supporting sites. Land-based Trails • Engage the cottage associations, trail user groups, umbrella

organizations, accommodations suppliers, camp operators and clubs in a meeting or meetings to ascertain respective interests in contributing time and energy to plotting, building and maintaining trails systems in McKellar Township;

• Confirm priorities for development of different trails types, locations and preferred patterns of development (as discussed in Section 2.2). Demand and opportunity suggest that investment in ATV networks may provide the best potential for a quicker return to investment;

• Strike working groups to oversee/undertake trail plotting, marking and mapping;

• Plot routes on large scale topographic maps, identifying logical trail heads, road and river crossings, and access to McKellar village, Broadbent and Hurdville;

• Identify trail sections on private property and contact property owners to confirm their willingness and/ or requirements to let the property be used for that purpose; confirm viability of identified routes;

• Prepare working maps showing routes, features, mileages; • Prepare brief interpretive histories describing each route, its unique

characteristics and points of interest; • Seek commercial sponsors to underwrite the cost of map production in

exchange for advertising space on the map; • Layout, print and distribute maps through tourist information sites,

regional outdoor pursuits oriented retailers, the McKellar notice board and village retailers;

• Improve staging and trail head areas; • Engage user groups as the municipality’s “eyes on the trail”, perhaps

taking on responsibility for litter pick up, with the Township retaining responsibility for all heavier maintenance;

• Promote the McKellar Loops/Great Northern Road trails experiences; • Maintain the trail routes and their supporting sites.



2.7.3 Build a Framework for New Business

Building a framework for new business in McKellar, and signalling Council’s intent to promote such opportunities is implemented through the following steps: Commercial/Industrial Uses • Prepare a draft Official Plan Amendment (OPA) and engage the

community in confirming appropriate uses and performance policies for commercial/industrial activity in the area fronting Highway 124 north and east of the village centre, including designation as a site plan control area;

• Revise the draft OPA as considered appropriate; • Amend the Official Plan; • Consider and approve (as appropriate) applications for implementing

zoning bylaw amendments and site plan approvals as they come forward. Commercial Core Uses • Prepare a draft Official Plan Amendment (OPA) and engage the

community in confirming appropriate uses and performance policies for commercial activity in the area fronting Highway 124, Catherine Street and Centre Road in McKellar village, including designation as a site plan control area;

• Revise the draft OPA as considered appropriate; • Amend the Official Plan; • Consider and approve (as appropriate) applications for implementing

zoning bylaw amendments and site plan approvals as they come forward.

2.7.4 Initiate Marketing McKellar as a Tourist Destination

Marketing McKellar as a tourist destination is a critical activity that can start as soon as commitment is made to adopt the recommended Strategic Plan, and one that must be maintained in perpetuity thereafter. The extent to which it is focussed on communications with target markets will vary with the life cycle of the strategic plan, as set out below and in Figure 9. Upon Commitment to the Economic Development Strategic Plan • Consult with Georgian Bay Country (GBC), OTMP, NOTO, MTR,

MNDM and FedNor to define the working list of publications to be communicated with in the media relations/article generation effort;

• Consult with GBC and neighbouring municipalities to ascertain interest, commitment and possible funding arrangements for a “Great Northern Road” branding initiative;

• Consult with area businesses to determine interest in and budget commitments to participation in promoting visitation to McKellar, consult with municipal council on the same question;



• Consult with strategic partners in each new asset addition to develop ideas and outline plans for events (ideally annual events) to make use of and celebrate each asset (e.g., fishing derbies out of Manitou Landing, canoe races, ATV and snowmobile ‘Poker Runs’, “Tea at the Town Square” etc.);

• In consultation with the GBC, develop a media relations and marketing plan commensurate with municipal and business funding commitments and the product development life cycle for new assets in the Township;

• Find a way to put “the Great Northern Road” and its communities and assets on signage on Highways 69 and 11. One approach might have area tourist facility and restaurant operators band together to install a sign promoting the corridor and their facilities.

Upon Commitment to Construction of New Assets • “Pre-market” new developments with press releases announcing each

new commitment to proceed; • Invite writers to a staged launch/public opening of each new asset, and to

each event making use of it; • Reproduce articles generated on the Township web page; • Develop visual and text material for promoting McKellar experiences in

regional travel brochures; • Promote experiences enabled by the new asset to target markets through

pre-determined channels; • Expand the descriptions/marketing of the scope of experiences on offer

with each new addition.

2.7.5 Initiate Marketing McKellar as a Business Location

• Marketing McKellar as a business location is also a critical activity that can start upon commitment to the recommended Strategic Plan. It is more dependent upon content and communications channels developed and supported by others, and is recommended for implementation as follows:

• Consult with the Parry Sound Area CB & DC, MEDT, MTR, MNDM and FedNor to define the working list of publications to be communicated with in the media relations/article generation effort;

• Upon approval of the recommended OPA’s, and upon completion of each new addition to the Township asset base, prepare press releases describing the initiative and its expected benefits to business and McKellar’s attractiveness as business location; distribute press releases with other municipal mailings to ratepayers;

• Promote site availability, and McKellar as a location, through the Parry Sound Area CB & DC; post descriptions of available sites and the Township on the http://www.2ontario.com and



http://www.2ontario/tourism/ web pages; • Update web page listings/descriptions as new assets are added to the

McKellar offering.

2.7.6 Build Manitou Landing – Phase 1

Construction of the first phase of the recommended Manitou Landing project will entail a number of action steps, once a commitment to pursue its construction is in hand, as outlined below. While municipal funding capacity and senior government “fundability” of the respective projects may force initiating them one at a time, the Township should also consider efficiencies that might be gained in proceeding with the Manitou Landing, Town Square and Catherine Street projects together at the same time. • Explore current senior government funding programs and determine the

level of fit, “fundability” and municipal/community share expectations for the initiative;

• Confirm the Township’s commitment to proceed given those share obligations; define a working budget on that basis;

• Convene an organizing committee and initiate development of plans for a launch/annual celebration event;

• Seek an outfitter who can commit to operating a canoe/kayak centre on the site, and invite their input to the site design process;

• Prepare a first stage survey (using a fish plotter/depth sounder) to identify the number, location and nature of shallow depth to hazard features in Lacie Narrows;

• Consult with an engineer and a fisheries biologist on the extent of hazard and the level of fishery concern related to the necessity of removing the hazards, and how that could be achieved;

• Consult with a lawyer to determine the legal liability issues in a hazard removal initiative;

• Define an approach to the Ministry of Natural Resources (MNR) and the federal Department of Fisheries (DFO) to ascertain feasibility and requirements of a removal program; consult with MNR & DFO;

• Determine feasibility of a hazard removal program; • Implement/Do nothing about hazard removal; • Prepare a RFP for design and construction management for the Phase 1

improvements, and circulate to a pre-defined list of qualified firms; if an investor has already indicated a firm interest in proceeding with Phase 2 of the Manitou Landing project, invite their input to the site design process;

• Proceed with the proposal call and award the project; • Promote launch event; • Monitor construction;



• Accept project on completion; • Enter into operating and lease agreement with canoe/kayak centre

operator; • Host launch and subsequent events; • Follow through on marketing and event programming; and, • Maintain over time.

2.7.7 Build the Town Square and Streetscape Improvements – Phase 1

If it proceeds as a stand-alone project, construction of the recommended Town Square and Streetscape improvements will entail a similar series of action steps: • Explore current senior government funding programs and determine the



• Convene an organizing committee and initiate development of plans for a launch/annual celebration event;

• Define Community Improvement grant and loan parameters, and promote same to current commercial operators, with design guidelines to be prepared as part of the larger design contract;

• Prepare a RFP for design and construction management for the Phase 1 improvements, and circulate to a pre-defined list of qualified firms;

• Proceed with the proposal call and award the project; • Promote launch event; • Monitor construction; • Accept project on completion; • Host launch and subsequent events; • Follow through on marketing and event programming; and, • Maintain over time.

The Town Square could support and likely warrants its own “event”, perhaps one more focussed on permanent and seasonal residents than on tourist visitors.

2.7.8 Build McKellar Landing

Notwithstanding its benefits to McKellar and connected lake cottagers, the improvements to McKellar Landing are seen as a second or third round project, with a smaller funding requirement. Their action steps parallel those above. Unless the community feels otherwise, McKellar Landing likely does not warrant a specific event on a scale larger than a ribbon cutting social. Action steps are: • Explore current senior government funding programs and determine the





• Convene an organizing committee and initiate development of plans for a ribbon cutting event;

• Prepare a RFP for design and construction management for the recommended improvements, and circulate to a pre-defined list of qualified firms;

• Proceed with the proposal call and award the project; • Promote the launch event locally; • Monitor construction; • Accept project on completion; • Host the launch event; and, • Maintain over time.

2.7.9 Build the Town Square and Streetscape Improvements – Phase 2

The Phase 2 Streetscape Improvements, with their aesthetic focus on Highway 124, are seen as the least likely to attract senior government funding, and the most likely to require a longer discussion process with MTO. They are not seen as warranting more than a ribbon cutting social as a launch event, but will play a substantial role in McKellar’s appearance. The action steps are: • Confirm the level of fit, “fundability” and municipal/community share

expectations for the initiative; • Confirm the Township’s commitment to proceed given those share

obligations; define a working budget on that basis; • Engage MTO, with assistance from the area MPP if required, to

determine acceptable standards for landscaping in and adjacent to the Highway 124 right of way, including consideration of municipal responsibility for maintenance outside the paved portion, and opportunities in areas outside of normal sight line setbacks, such as the east side of the Highway 124/Centre Road intersection;

• Convene an organizing committee and initiate development of plans for a ribbon cutting event;

• Prepare a RFP for design and construction management for the recommended improvements incorporating agreed upon design standards, and circulate to a pre-defined list of qualified firms;

• Proceed with the proposal call and award the project; • Promote the launch event locally; • Monitor construction; • Accept project on completion; • Host the launch event; and, • Maintain over time. Maintenance of the flowerbeds could be carried out

by volunteers.



2.7.10 Build Manitou Landing – Phase 2

Creation of the second phase of the Manitou landing project will be the most complex of the recommended initiatives and will require leading investments in developing guidelines, protocols and agreements for private sector construction and operation of the commercial elements, all as outlined below. Ideally, the Township will enter into one agreement with one operator who will run all commercial elements itself, or manage them through sub-leases. • Explore current senior government funding programs and determine the

level of fit, “fundability” and municipal/community share expectations for the initiative; determine the availability of funding from the Parry Sound Area CB & DC and its network of community futures counterparts and the Business Development Bank of Canada and their requirements for loans to prospective investors in the site;

• With benefit of advice from economic development agencies, a lawyer and an accountant, define municipal objectives and requirements for a leasehold agreement with an investor, including consideration of the lease rate necessary to provide a return to the municipality’s investment in land and such depreciating assets as parking areas and septic systems;

• Confirm the Township’s commitment to proceed given municipal investment obligations and reasonably expected returns (financial and otherwise); define a working budget on that basis;

• Convene an organizing committee and initiate development of plans for a launch/annual celebration events targeting at least the summer and winter seasons;

• Retain architectural expertise to prepare design guidelines and requirements for the site, to be incorporated into a lease agreement;

• Prepare a RFP for leasing, constructing and operating the Manitou Landing restaurant/marina complex; circulate and post as widely as possible;

• Proceed with the proposal call and award the project; • Promote launch event; • Monitor construction; • Host launch and subsequent events; and, • Follow through on marketing and event programming.



Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Fund andStaff and Economic Development Intern PositionConfirm requirements and eligibilitySubmit funding applicationAdvertise and fill positionDevelop work program and budget

Build the Water and Land-based Trails NetworksWater Ways Trails

Retain expert advicePlot routes and featuresIdentify "must have" sites, contact owners, confirm viabilityPrepare working mapsPrepare interpretive historiesSeek commercial sponsorsPrint and distribute mapsImprove staging and put-in areasEngage cottage associationsPromote the paddling experienceMaintain routes and sites

Land-based TrailsEngage stakeholders, ascertain interestsConfirm priorities for developmentStrike working groupsPlot routesIdentify trail sections on private property, confirm viability of identified routesPrepare interpretive historiesSeek commercial sponsorsPrint and distribute mapsImprove staging and trail head areasEngage user groupsPromote the trails experienceMaintain routes and sites

Build a Framework for New BusinessCommercial/Industrial Uses

Prepare a draft Official Plan Amendment, engage the communityRevise draft Official Plan AmendmentAmend the Official PlanConsider and approve (as appropriate) applications

Commercial Core UsesPrepare a draft Official Plan Amendment, engage the communityRevise draft Official Plan AmendmentAmend the Official PlanConsider and approve (as appropriate) applications

Initiate Marketing McKellar as a Tourist DestinationUpon Commitment to the Economic Development Strategic Plan

Assign the lead role in marketing McKellarConsult with agenciesConsult with GBC and neighbouring municipalitiesConsult with area businessesConsult with strategic partnersDevelop a media relations and marketing plan

Figure 9: Summary Chart - Implementation Steps and Timing 2004 2005 2006 2007Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

201220112008 2009 2010



continued Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Initiate Marketing McKellar as a Tourist Destination - continuedUpon Commitment to Construction of New Assets

"Pre-market" new developmentsInvite writers to openings/eventsReproduce articles on the Township web pageDevelop visual and text materialPromote experiencesExpand descriptions/marketing of the scope of experiences

Initiate Marketing McKellar as a Business LocationAssign the lead role in marketing McKellarConsult with agenciesPrepare press releasesPromote site availability, and McKellar as a locationUpdate web page listings/descriptions

Build Manitou Landing - Phase 1Explore funding programsConfirm the Township's commitmentConvene organizing committeeSeek an outfitter for a canoe/kayak centreSurvey hazards at Lacie NarrowsConsult engineer and fisheries biologistConsult lawyerDefine approach to and consult with MNR and DFODetermine feasibility of hazard removalImplement conclusion re feasibilityPrepare RFP for design and construction managementAward the projectPromote launch eventMonitor constructionAccept projectEnter into agreement with canoe/kayak centre operatorHost launch and subsequent eventsFollow through on marketing and event programmingMaintain over time

Build the Town Square and Streetscape Improvements - Phase 1Explore funding programsConfirm the Township's commitmentConvene organizing committeeDefine and promote Community Improvement grant and loan parametersPrepare RFP for design and construction managementAward the projectPromote launch eventMonitor constructionAccept projectHost launch and subsequent eventsFollow through on marketing and event programmingMaintain over time


2011 20122008 2009 2010



continued Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Build McKellar LandingExplore funding programsConfirm the Township's commitmentConvene organizing committeePrepare RFP for design and construction managementAward the projectPromote launch eventMonitor constructionAccept projectHost the launch eventMaintain over time

Build the Town Square and Streetscape Improvements - Phase 2Confirm "fundability"Confirm the Township's commitmentConvene organizing committeeEngage MTOPrepare RFP for design and construction managementAward the projectPromote launch eventMonitor constructionAccept ProjectHost the launch eventMaintain over time

Build Manitou Landing - Phase 2Explore funding programsDefine municipal objectives and requirementsConfirm the Township's commitmentConvene organizing committeeRetain architectural expertisePrepare RFP for constructing and operating the Manitou Landing complexAward the projectPromote launch eventMonitor constructionHost launch and subsequent eventsFollow through on marketing and event programming


2011 20122008 2009 2010



2.8 Economic Impacts

Economic impacts of a commitment to implementing the Economic Development Strategic Plan are estimated using two complementary approaches. The first calculates the economic benefits of public and private investment in the Plan’s recommended capital initiatives. The second is more hypothetical. It estimates the expenditure, employment and tax benefits that might accrue to Parry Sound District if the threshold number of tourist visitors dining at the Manitou Landing restaurant (from Section 3.8) are assumed to be new visitors to the District, attracted in part by new offerings in the Township. It should be viewed as an order of magnitude expression of what could be achieved by investment in the tourism oriented elements of the Strategic Plan.

With regard to terminology, “Direct” benefits arise from the first order spending on capital (construction) or operating (tourist expenditures) items. “Indirect” benefits arise from spending by suppliers in response to the demands generated by the initial expenditure. “Induced” benefits arise from re-spending or investment of first round profits and spending by wage earners. “Total” benefits are the sum of the direct, indirect and induced benefits.

The estimated benefits of investment in the Economic Development Strategic plan are as follows: Benefits of Capital Investment Capital Expenditure: $2.1 million Indirect & Induced Expenditure Multiplier: 1.58 Total Expenditures: $3.3 million (in McKellar, Parry Sound District and elsewhere in Ontario) Direct Employment (at 11.7 person years/$million of capital): 25 person years Indirect & Induced Expenditure Multiplier: 1.50 Total Employment from Capital Construction: 38 person years Potential Benefits of attracting New Visitation New Visitors: 8,700/yr Expenditures @ $154/visitor: $1.34 million/yr Expenditure Multiplier: 1.86 Total Expenditures: $2.5 million/yr Direct Wages and Salaries: $295,000/yr Indirect & Induced Multiplier: 1.72 Total Wages and Salaries: $510,000/yr (in McKellar, Parry Sound District and elsewhere in Ontario)



Direct Jobs: 19.3 jobs/yr (at 14.4 person years/$million in direct expenditures) Indirect & Induced Employment Multiplier 1.55 Total Jobs 30 jobs/yr (in McKellar, Parry Sound District and elsewhere in Ontario) Total Taxes Generated: $415,000/yr (at 31% of direct expenditures - Federal, Provincial & Municipal, through-out Ontario) Sources: Statistics Canada, Ontario Ministry of Tourism and Recreation.

Township of McKellar 3.0 Economic Development Strategic Plan FOUNDATIONS


3.0 FOUNDATIONS FOR THE RECOMMENDED STRATEGY

This Foundations section of the Economic Development Strategic Plan describes the baseline conditions shaping opportunities for the Township, under the following headings: • Population and Demographics; • Labour Force and Employment; • Tourist Visitation, Expenditures and Activities; • Economic and Tourism Infrastructure; • Key Tourism Trends; and, • Assets in McKellar Township. Issues and opportunities indicated by the baseline conditions are identified in Section 3.7. These were discussed with the study Steering Committee, refined, and now form the basis for the major directions of the Economic Development Strategy. Section 3.8 provides a threshold feasibility analysis of a restaurant operation at the Manitou Landing location.

3.1 Population and Demographics

• As of 2001, there were approximately 935 permanent residents in the Township of McKellar (unadjusted for undercount). At that time, there were an estimated 1,325 dwellings, of which 891 (67%) were seasonal cottages.

• A comparison of McKellar’s 1991 and 2001 Census population by age

category indicates that there has been a decline in the number of permanent residents in the age categories under 29 years (-40 people) and an increase in permanent residents between the ages of 45 and 60 (+65 people). Population increase is hence weighted to older age groups, including retirees; there is no net recruitment of younger families.

• The 2001 Census indicates that there are approximately 41,000 permanent

residents in the Parry Sound District (adjusted for 3.5% undercount). Population is projected to increase at very limited growth rates, to 44,300 by 2011, 46,500 by 2021, and 47,900 by 2026. These increases reflect average annual growth rates of 0.8%, 0.5% and 0.6% for each respective period.

• A review of the municipality’s age structure indicates that it has a higher

concentration of older residents than the Parry Sound District average (see Figure 10). The average age of McKellar’s population in 2001 was 45.1 years while the average age for the Parry Sound District was 41.8 years. Approximately 19% of McKellar’s population is under the age of 24, which is much lower than the 27% average for the Parry Sound District. Approximately 20% of the Township’s population in 2001 was 65 years or older, which is similar to that of Parry Sound’s average of 19%. The following chart illustrates the greater proportions of McKellar’s population in the older age categories compared to those in the younger cohorts.



• A relatively high proportion of McKellar families do not have children living at home. As a result, the number of persons per household in 2001 in the Township was 2.3. The Parry Sound District was slightly higher at 2.4 persons per household.

Figure 10: Township of McKellar and Parry Sound District Age Structure, 2001 Census Township of McKellar Parry Sound District Source: Statistics Canada, 2001 Census

3.2 Labour Force and Employment

• Approximately 60.0% of McKellar’s total population 15 years and older is part of the labour force. This participation rate is slightly higher than that of the Parry Sound District, which is approximately 58.3%. In 2001 McKellar enjoyed an unemployment rate of 4.0%, which was lower than that of the Parry Sound District at approximately 6.9%.

• The majority of Township of McKellar residents are employed in service

industries. Approximately 17% of the labour force is employed in the Health Care and Social Assistance sector, the dominant employer of the Township’s residents (see Figure 11). Approximately 12% of the labour force is employed in Retail Trade while 11% are employed in the Accommodation and Food Services industry. The dominant industry sectors for McKellar are similar to those for the Parry Sound District. Retail Trade, Health Care and Social Assistance, and Construction are Parry Sound District’s top three employers.

• The majority of the McKellar labour force’s usual place of work,

excluding at home workers, is within the Parry Sound District, however only a small proportion of those employees actually work within the Township of McKellar itself. At home workers account for approximately

-15% -10% -5% 0% 5% 10% 15%

0 to 4 years

10 to 14 years

20 to 24 years

30 to 34 years

40 to 44 years

50 to 54 years

60 to 64 years

70 to 74 years

80 to 84 years

Females Males

-15% -10% -5% 0% 5% 10% 15%

Females Males



14% of the Township’s labour force, which is greater than the 11% average experienced throughout the Parry Sound District. The majority of the labour force travels to Parry Sound as a driver in their own vehicle.

Figure 11: Township of McKellar and Parry Sound District’s Labour Force by Industry, 2001 Census Source: Statistics Canada, 2001 Census

• The 2000 average household income in the Township of McKellar was $46,800, which was slightly below the Parry Sound Districts average of $47,093.

3.3 Tourist Visitation, Expenditures and Activities

• The Parry Sound District is approximately two and a half hours north of the Greater Toronto Area. Highways 400 and 69 are well-maintained routes that help transport visitors easily from the Toronto area. The pending completion of the Highway 400 extension to and past Parry Sound to Highway 124 will significantly ease congestion through the summer months, and bring the District and the Township 20 or more minutes “closer” to the GTA market.

• Traffic Volume data compiled by the Ministry of Transportation indicates

that volumes along the length of Highway 124 from Highway 69 in Parry Sound to Highway 11 have generally increased over the last decade. The highest traffic volumes are concentrated in the Highway 124 and Highway 69 area; the lowest Highway 124 volumes are located between the

0% 5% 10% 15% 20%

Agriculture, forestry, fishing and hunting

M ining and oil and gas extraction

Utilities

Construction

M anufacturing

W holesale Trade

Retail Trade

Transportation and warehousing

Information and cultural industries

Finance and insurance

Real estate and rental and leasing

Professional, scientific and technical services

M anagement of companies and enterprises

Administrative/support, waste man. and remediation services

Educational services

Health care and social assistance

Arts, entertainment and recreation

Accommodation and food services

Other services

Public Administration

Township of McKellar Parry Sound District



Highway 520 North and Highway 510 junctions (see Figure 12). As expected, there is significantly more traffic in the summer (July 1 to August 31) than in the winter (January 1 to March 31). The highway between Waubamik and McKellar experienced Summer Annual Daily Traffic (SADT) of 3,400 vehicles in 2000 vs. a Winter Annual Daily Traffic (WADT) of 1,650 vehicles. The Average Annual Daily Traffic (AADT) drops off by 40% east of McKellar.

Figure 12: Traffic Volumes - Highways 69 and 124



• The 2001 Canadian and International Travel Surveys estimate a total of 845,000 tourists (including cottagers) visited Parry Sound District in that year. The majority are Canadian residents, most of who are from Ontario (see Figure 13). U.S. and Overseas residents accounted for just over 10% of Parry Sound District’s visitors.

Figure 13: Origins of Parry Sound District Visitors, 2001

Source: Canadian Travel Survey and International Travel Survey 2001, Locations Visited in Ontario – By Census Divisions, Base: Total Person visits in Ontario.

• Over three-quarters (77.0%) of Canadians visiting the Parry Sound District in 2001 stayed overnight. This is compared to 94.1% of U.S. visitors and almost two thirds (62.5%) of Overseas visitors.

• Approximately two-thirds (61.4%) of Canadian and International

travelers indicated that the main purpose of their trip to the Parry Sound District was for pleasure (see Figure 14). Twenty-seven percent of those surveyed indicated that they visited to see friends and relatives. The remainder indicated their visits were for business and personal reasons.

• In 2001, U.S. and Overseas visitors staying overnight in the Parry Sound

District spent on average 6 nights in the area. Canadians staying overnight tended to have shorter trips, spending approximately 4 nights on average.

• A 1992 study indicated that overnight visitors using commercial

accommodations or campgrounds accounted for almost half (45.6%) of the Parry Sound area’s tourism expenditures. A large proportion (33.2%) of spending was also attributed to the area’s cottagers. Transient boaters, day visitors, and guests made up the remaining 21.1%.

• Tourists to the District spent $129.863 million on accommodation,

transportation, food, recreational and entertainment facilities and shopping during their visits in 2001, for an average of $153.68 per visit.

89%

8%

3%

Canada United States Overseas



Figure 14: Main Purpose of Trip, 2001 Canadian Visitors U.S. Visitors Overseas Visitors

Source: Canadian Travel Survey and International Travel Survey 2001, Locations Visited in Ontario – By Census Divisions, Base: Total Person Visits in Ontario.

• As Figure 15 illustrates, the majority of the reported spending was by

those visitors whose main trip purpose was for pleasure (68%). Those who visited the Parry Sound District to see family and friends and those who were there for personal reasons also contributed significantly to tourism spending (17% and 12% respectively).

Figure 15: Tourism Spending by Visitor Type, 2001

Source: Canadian Travel Survey 2001, Tourism Spending Assigned to Census Subdivision, Base: Tourism Spending Assigned to Ontario, and the International Travel Survey 2001, Visit Costs Assigned to Ontario Census Divisions, Base: Total Visit Costs in Ontario.

• The category of expenditure in which visitors spent the largest portion of

their money varied amongst the type of visitor. Canadian visitors to the Parry Sound District reported spending approximately a third (33.9%) of their travel expenditures on transportation. U.S. visitors spent over a third

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(36.4%) of their expenditures on accommodations. Visitors residing Overseas spent approximately 27.6% of their expenditures on food and beverages.

• Data on accommodation choices was obtained through the Canadian and

International Travel Survey but is only available for a larger geographical area, the North Central Ontario Travel Region. This Region 10 includes Parry Sound, Timiskaming District, and Nippissing District excluding Unorganized South Part UNO, and the Township of Airy. As the chart below illustrates (Figure 16), staying with friends and relatives was the most common accommodation choice. Private cottages and commercial cottages were also widely used by Canadian, U.S., and Overseas visitors.

Figure 16: Accommodation Choice of Visitors Staying in the North-Central Ontario Travel Region, 2001 Source: Canadian Travel Survey 2001, Location of Nights Spent in Ontario, Base: Person Nights in Ontario By Type of Accommodation, and International Travel Survey 2001, Nights Spent in Tourism Regions, Base: Person Nights in Ontario. *Estimate for Canadian Visitors is based on an aggregate of respondents who reported staying at a Resort, and respondents who reported staying at a Fishing/Hunting Lodge. It does not account for overlap resulting from respondents who did both.

• The predominant type of accommodation selected varied between travel groups. Over a third (35.1%) of Canadians surveyed reported staying with friends or relatives while just under a third (31.2%) reported staying at private cottages. Well over half (61.0%) of U.S. residents visiting the North-Central Ontario Travel Region stayed in Commercial Cottages while approximately a half (50.9%) of Overseas visitors stayed with friends or relatives.

• Data on the type of activities visitors participated in during their trip is

also available at the Ontario Travel Region level (see Figure 17). Visiting friends and relatives was the most common activity those surveyed reported. Sports and outdoor activities, shopping, sightseeing, and visiting a park or historic site rounded out the five most popular activities to do in the North-Central Ontario Travel Region.

0%

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30%

40%

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Figure 17: Activities Participated in During Trip, 2001

Source: Canadian Travel Survey 2001, Activities Participated in During Trip, Base: Total Person Visits in Ontario with a Stop in Region by Total Visits in Region, and International Travel Survey 2002, Activities Participated in During Trip, Base: Total Person Visits in Ontario.

3.4 Key Tourism Trends

There are two trends of particular interest to tourism and its potentials in McKellar. The first is driven by the aging of the “baby boom” cohort of the Ontario population, the second by population growth. • Aging of the baby boomers (those born between 1945 and 1964) is

bringing increasing interest in and demand for less physically active and more intellectually or emotionally engaging experiences, particularly those with a cultural heritage connection. Some characteristics of the core segments with such interests are summarized in Figure 18 below. Notwithstanding this shift, there is also growing interest in maintaining health and fitness through such pursuits as walking, hiking, biking and canoeing and kayaking. The latter is enjoying very strong growth rates.

• At the same time, population growth could generate increases in absolute

demand for a number of recreational pursuits that are otherwise expected to have declining rates of participation. For example, analyses completed for the Ontario Ministry of Tourism and Recreation on data from the Travel Activities and Motivations Survey∗ indicates that, depending upon participation rates by new Canadians: - The number of Ontario adults desiring opportunities for

canoeing/kayaking could grow from 1.3 million in 2001 to 1.6 million in 2021;

∗ If the future were now….Impacts of Aging the Canadian Market on Tourism in Ontario - A Special Analysis of the Travel Activities and Motivation Survey (TAMS). Ontario Ministry of Tourism and Recreation, July 2002.

0% 10% 20% 30% 40% 50% 60%

Visit ing F riends/Relat ives

At t ending Fest ivals and Fairs

At t ending Cult ur al Event s

A t t ending Spo rt s Event

Shopp ing

Sight seeing

Night life/Entert ainm ent

Visit in g a T heme P ark

Vist ing a Zoo , Museum or Natural Disp lay

Visit ing a Park or Hist oric Sit e

Sport s or Outdoor Act ivit ies



- The number of adults desiring opportunities for freshwater fishing could grow from 1.7 million in 2001 to 2.1 million in 2021.

• In contrast, the number of adults desiring opportunities to visit historical

sites could grow from 2.5 million to 3.8 million in 2026. • For older Ontarian’s, less strenuous, warm weather outdoor activities and

indoor cultural events and attractions are expected to see a greater increase in demand over strenuous or family oriented activities. The interest in art galleries and general history museums is expected to grow while strenuous outdoor activities, such as canoeing and camping, are expected to see a decline in rates of participation. More passive outdoor activities, such as bird watching and golfing, are forecast to maintain their participation rates, and experience significant growth in absolute demand. As well, participation in such events as cultural performances and day bus tours are forecast to grow significantly amongst the adult population.

• It is expected that immigrants will make up over a third (36.8%) of

Ontario resident population in 2026. This will further influence the demand for traditional outdoor activities and will likely result in increased demand for cultural events such as live theatre, art galleries, museums and classical music performances.

• The marketing of traditional outdoor activities will likely have to be

modified to account for the change in the composition of the future population. Offering more comforts and amenities, using more effective marketing strategies, and increasing awareness of their product to new immigrants will be some of the changes required to for outdoor experience suppliers to compete.

As described in the sections to follow, McKellar has the asset base to support increased tourism to the Township, building on outdoor activities and cultural/heritage themes.



Figure 18: Selected Attributes of Core Cultural and Touring Segments

Culture and Entertainment Segmentation: (market segmented by those who took at least one “urban” trip in past two years) Culture Seekers: - 9.3% of Canadian, 12.2% of American markets, but take 18% of trips - typically mature/senior couples & singles; with high education levels

& incomes - in addition to strong interest in museums, galleries and historic sites,

have strong interest in natural sightseeing, golfing, casino gambling and horse racing, the high arts and shopping and dining experiences

Knowledge Seekers: - 10.5% of Canadian, 13.1% of American markets, but take 16% of trips - typically young families, mature couples & singles; with high

education levels & incomes - in addition to strong interest in museums, galleries and historic sites,

have strong interest in natural sightseeing and outdoor activities Touring Segmentation: (market segmented by those who took at least one touring trip in past two years) Personal Explorers: - 23.0% of Canadian and 24.2% of American markets, but take 35% of

trips - typically affluent young couples, affluent mature and senior couples - strong interest in sightseeing & outdoor pursuits, shopping & dining,

museums, galleries & historic sites Scenic Tour Seekers: - 8.9% of Canadian, 9.5% of American travelers, take 9% of trips - typically senior singles & couples, mature couples; with average

education & income profiles - prefer guided tours, museums, galleries and historic sites; more likely

to use motor homes & travel trailers 3.5 Economic and Tourism Infrastructure

The Township’s economic base is summarized with reference to several source documents, including the membership roll for the McKellar Business Association, results from a survey of that membership by the Township’s Economic Development Committee, and the Parry Sound District’s “Fun in the Sun” tourism marketing brochure. The make-up of the Township’s business structure is shown in Figure 19. The number of firms in the Construction & Building Supplies sector highlights the importance of cottage construction/renovation and maintenance the local economy. The accommodations, retail and personal services sectors supporting tourism and local requirements accounts for 48% of local firms. Results from the Economic Development Committee survey reveal that, of 24 respondents: • 54% are holding stable, 46% are growing; • 38% expect to expand in the next three years; • 13% need sites better than the ones they currently occupy.



Figure 19: Business Structure in McKellar Township

Business Classification # of Companies/Suppliers Percentage Primary Manufacturing/Industrial Construction & Building Supplies Retail - Basic Retail - Tourist Oriented Accommodations Restaurants Personal Services Business Services

4 3

18 8 2 7 2

10 3

7% 5%

32% 14% 4%

12% 4%

18% 5%

Total 57 100.0% Source: McKellar Business Association - Business Directory 2002/2003 The nature and capacity characteristics (where available) of the Township’s commercial accommodations suppliers are summarized below, in Figure 20. Aside from the prestigious Inn at Manitou, McKellar’s accommodations infrastructure is weighted to cottage resort and Bed and Breakfast operations, none of which are within the village centre itself. Figure 20: Accommodations Suppliers in McKellar Township The Township’s tourism assets and infrastructure are summarized in the Tourism Resource/Opportunity Matrix in Figure 21. It shows an asset base focused on the area’s waterways and a low to moderate abundance of other supporting assets and attractions. The Township’s historical and cultural heritage resources, and opportunities to expand services available in the village are seen as underdeveloped. From a tourism resource perspective, The Township’s strengths include: • Its accessibility; • Its connected lakes and rivers;

# of # of# of # of Trailer Camp

Rooms Cottages Sites SitesSeasonal and Overnight Campsites 9 bdrms 4 cottages

2 - 3 bedroom Cabins

5 bdrms 3 cottages

Bed and Breakfast 4 bdrms

15 bdrms 6 cottages1 - 1bdrm; 1 - 2bdrm; 4 - 3bdrm

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Will-O-Bend Cottages

Manitouwabing Tent and Trailer Park

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Two - 2 bdrm; One - 1 bdrm.

35Serviced Trailer or Camp Sites

Facility Type

11 Cottages

Accomodation Infrastructure - McKellar

Glenwood Cottages

The Inn at Manitou

Ryan Lake Cottages

Birchview Cottages

Blackwater Lake Bed & Breakfast

Armstrong Lake Campground

Private Cabins

1 - 2 singles; 1 - double +1; 1 - queen +1; 1 - queen

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35



• The McKellar village service centre, with opportunities for enhancement of its ability to fulfill permanent and seasonal residents’ day to day shopping and service needs;

• “Leveragable” assets in the Inn at Manitou and the new Ridge at Manitou golf course – higher profile facilities that lend name recognition and branding to Lake Manitouwabing and the Township;

• An interesting logging history with immediate connections to area lakes and rivers and the village;

• A “cultural landscape” that includes smaller settlements in such locations as Broadbent and Hurdville, and active farmsteads;

• The presence of an accommodations base, with site opportunities for expansion or new facilities;

• An emerging regional focus on kayaking and canoeing, and ATV’ing; • The presence of snowmobile and ATV trails in place, particularly the

existing C101 snowmobile trail connection to the Seguin Trail, and the feeder connections to McKellar and Hurdville.

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Water Skiing

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AutoTouring

Bicycle Touring

Wilderness Trail

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13

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16

17

18

19

20

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Source: Matrix adapted from Heath E. & Wall, G. 1992, Marketing Tourism Destinations:

A Strategic Planning Approach, Toronto: John Wiley & Sons, Page 57.

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Condo/Hotel

Spa

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Motel - Up-Market

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Mid-Scale Meetings Facilities

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National

Provincial

Crown Land

Conservation Areas

Reserves

Interpretive Programs/Walks/Tours

World Heritage Site

National Historic Site

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Local Heritage Site

Aboriginal Heritage Site

Living History Site

Folklore Site

Architectural Heritage Site

Cultural/Historic Landscape

Cultural/Historic Travel Corridor


Public Digs

Shipwreck Interpretive Tours/Dives


Aboriginal Pow Wows/Celebrations

Archives

Annual Musical Festivals

Annual Non-Musical Festivals

Special Events/Celebrations

Crafts Events

Museums

Galleries

Studio/Garden/Architecture Tours

Live Theatre

Live Music

Other Performing Arts Venues/Events

Active Street Scenes

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Playing Field Complexes

Swimming/Diving Complexes

Arena Complexes

Equestrian Facilities

Major League Franchise Venues

Minor League Franchise Venues

Significant Sports Events

Annual/Recurring Tournaments

Ski Development - Alpine

Ski Development - Cross Country

Marina - Boating Developments

Golf Courses (1 under construction)

Amusement/Theme Park

Water Park/Wave Pool

Horse Racing

Casino/Gaming

Zoo/Game Farm/Animal Farm

Motorsports Venues

Floral/Other Garden Attractions

Winery/Brewery

Theme Retail

Factory Outlet Mall

High-End Shopping

Antiques Shopping

Arts & Crafts Shopping

Other Shopping

Dining - Fast Food

Dining - Mid-Price

Dining - High-End

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TOURISM RESOURCE/OPPORTUNITY

MATRIX - MCKELLAR TOWNSHIP

Figure 21: continued

Malone Given Parsons Ltd. * unit architecturea 3-14

Township of McKellar


3.0

FOUNDATIONS



3.6 The Land and Waterway Base

The land and waterway base in McKellar Township is the foundation for past, current and future economic activity and quality of life and experience. It is addressed here at two scales – that of the Township, and of the village. The Township Figure 22 depicts the land and waterway base of the Township on an aerial photograph, overlaid with physical and economic infrastructure. Locations of properties owned by the municipality and the Crown (where they abut waterways) are also noted. • Review of the Figure, and a tour of the area shows that there are

opportunities to position the village as a node and gateway offering access and support to kayak or canoe travel “loops” along several of the Township’s waterways;

• As described in the “McKellar Memories” book by Evelyn Watkins Moore, these same routes also played critical roles in driving felled timber to the lumber mill at McKellar, and so enable the layering of activity within an historical story line. They enable the creation of a recreational experience of interest to cottage and other tourist visitors to McKellar, drawn by an easily accessed experience integrating outdoor activity with cultural/historical learning.

• The waterway routes do have municipal and Crown properties along their shores. Several of the Township properties are used as public beaches. Others could be improved to support picnic and swimming activity by waterway users. The Crown sites could be improved to the extent necessary to provide bush style camping opportunities in support of waterway use as well.

• Building traffic to the settlements at Broadbent and Hurdville could also enhance their profiles and promote more travel and economic activity. Opportunities to do so are available year round with t he combination of waterside location and proximity to or presence on current and potential snowmobile and other trail routes.

• The presence of the Ahmic Forest and Dutcher Lake Conservation Reserves also create opportunities for interpretive eco-tours of their features, based out of McKellar or Broadbent.

The Village McKellar village itself has unique physical characteristics that are integral to an understanding of baseline conditions (see Figure 23). Several key features are: • The location at the intersection of Highway 124 (“the Great Northern

Road”) with the waterway between Lakes McKellar and Manitouwabing and the proximity to Armstrong Lake, all approximately 24 kilometres east of Parry Sound;

• The way in which the McKellar village land base is defined and contained by the three lakes and the rock outcrops and steep slopes that surround the town site;



• The easy access to a number of opportunities to explore and enjoy the natural environment;

• The manner in which the original town survey generally subdivides the village into a regular grid housing lots, with developments lots along Highway 124 varying in size and configuration.;

• Long picturesque views are abundant: - In approaches to the village by automobile from the south along

Highway124 and by boat from McKellar and Manitouwabing Lakes; - From Highway 124 across active agriculture fields to Armstrong Lake

and beyond; and, - From Highway 124 across Manitouwabing and McKellar Lakes. Physical Development Challenges The village also poses a number of opportunities and constraints or challenges to new physical development. The latter include: • Congestion and parking constraints on summer weekends; • Current and potential commercial lots are constrained in their abilities to

provide on-site parking for commercial uses, or to satisfy on-site water and sewage treatment for any significant service uses;

• The environment along Highway 124 is dominated by cars and traffic; there are few sidewalks or clearly denoted walkways supporting a comfortable or easily understood pedestrian environment within the larger village fabric;

• Notwithstanding the public swimming area at Armstrong Lake, public and tourist access to parks and the village’s other two lakefronts and the quality of that access are underdeveloped, particularly if the tourism spending and activity discussed earlier are to be leveraged.

Development Opportunities The major opportunities inherent in the village and its immediate surroundings include: • The current Minerva Millpond Park, site of the Manitou Landing

recommendations, is an ideal high visibility Gateway Site to access the McKellar Township and its history. The site is well located to act as a trailhead for exploring the surrounding waterways and roadways;

• There are several operating farms and larger lots with water frontage in or in close proximity to the village;

• There are opportunities to improve boating access to the village to attract cottage traffic, improving the cottage experience and reducing automobile congestion;

• Tourist visitors, residents, cottagers and their guests can all be encouraged to stay longer and explore the village and the larger Township by providing an attractive pedestrian friendly environment with a mix of interesting linked activities.



• With reference to Figure 22 and the current and potential water and land based trails networks accessible from the village, as well as the Township road network, there is opportunity to provide ”nested” exploration loops for all modes of traveler.

Contemporary Precedents “Precedents” are examples of concepts or design approaches used elsewhere that can help guide thinking about opportunities in McKellar. Although these precedents might not be directly replicable, both programmatic and physical site similarities may illuminate approaches to the McKellar setting. The following are three examples of recent developments in the vicinity of McKellar Township. Photographs of each are provided in Figure 24. • Lake Joseph Club Restaurant (Peninsula Road near Port Sanford)

- Combination of marina dock capacity with restaurant and adjacent parkland;

- Two-storey structure (service at water level /restaurant above); - Private commercial development.

• Port Carling Waterfront Development

- Address/access from both water side docks and highway/main street parking lot;

- In town, able to walk to shops, services parks; - Private commercial development.

• Port Carling Adventure Playground

- Built by 300 volunteers; - Extensively used by resident families; - Located in Waterfront Park adjacent to main residential area; - Public, volunteer development.

Hwy 124

Hw

y124

Hurdville

McDougall Rd.

Road

Broadbent Road

BalsamRoad

Cen

treR

oad

McKellarVillage

Hurdville

Crown Land

Broadbent

Crown Land

Figure 22:ASSET BASE INMcKELLAR TOWNSHIP

Township Boundary

Major Roads

Accommodations and Attractions Sites

Snowmobile Trails

Potential Waterway / Road “Loops”


Municipal Lots


January, 2004

03:1300

0 .5 5

Kilometres

1 2 3 4


1.

2.

3.

4.

Road

2-30200

3-01905

3-24500

Boat Launch

Plan 247 Lot 36

Plan 16 Lots 11, 12

Plan 242 Block B

Fire Rt.#200

72 Lakeside Cres.

Hwy 124 McKellar Lake

Lakeshore Drive

Roll# Property Description Physical Address


5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

1-4550

1-28500

1-49600

1-50908

1-56668

1-56668

2-64000

3-27300

3-42800

3-44100

Con 3 Part Lot 29

Plan 251 Lot 7

Plan M142 Block B

Plan 288 Block F

Plan M403 Block D

Plan M403 Block D

Plan 258 Lot 54

Con B Pt. Lot 20

Con B Pt. Lot 20

Con B Pt. Lot 21

710 Hurdville Rd.

14 Stewart Park

Elizabeth Avenue

2 Silverbirch Circle

Smithpine Subdivision

Smithpine Subdivision

3 More Avenue

15 Catharine Street

677 Hwy #124

701 Hwy #124

Roll# Property Description Physical Address

Municipal Lots

Firehall

Beach

Beach

Beach

Park

BeachCommCentre

Taits Landing

Will-O-BendCottages

Glenwood Cottages

Rainbow CountryCottages & Marina

The Inn at Manitou/Camp Manitou

The Ridgeat Manitou

CampKodiak

BroadviewCottages

Armstrong LakeCampground

Dutcher LakeConservation Reserve

Ahmic Forest andRock BarrensConservation Reserve

ManitouwabingTent and Trailer Park

River Lake Cottages& Campground

LakeManitouwabing

McKellarLake

Grey OwlLake

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7

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1411

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VIEWS OF GATEWAY SITE

VIEWS OF LANE LOOP VIEWS OF PEDESTRIAN ENVIRONMENT - HWY. 124

VIEW OF TOWN CENTRE

SWIMMING

SWIMMING

SWIMMING

VIEW OF ARMSTRONG AND MCKELLAR LAKES

Figure 23:SITE CONDITIONS - McKELLAR VILLAGE


January, 2004

03:1300

Sidewalks

Commercially Zoned Properties

Public Open Space


0 50 100 150 200METERS

TO PARRYSOUND

LAKEMANITOUWABING

McKELLARLAKE

TO HURDVILLE,BROADBENT

TOWNSHIPCENTRE



Figure 24: Contemporary Precedents for Development Concepts for McKellar



3.7 Issues and Opportunities

Review of the baseline conditions and materials on the Township web site identifies the following issues and opportunities. These underlie the content and implementation plan for the Economic Development Strategic Plan for McKellar.

Issues • There is a fundamental need to create more reasons for more people to

come to McKellar, as visitors, cottage builders, skilled migrants and business operators;

• Barriers include missing communications infrastructure (cell and internet); although towers in support of the Bell Cellular network may be in place in McKellar by the end of 2004;

• The extent of cottage development in the Township prevents positioning it as a “wilderness” destination, but provides a foundation for services and facilities that meet cottager’s needs and support tourist visitation;

• Local services are insufficient; • There is insufficient docking, and no marina (gas) for boaters in McKellar

village; there are depth and obstacle constrains in the Lacie Narrows channel in Lake Manitouwabing south of McKellar; it is not feasible to leave the car at the cottage and boat to the village for access to shopping & other activities;

• There is insufficient parking in the village; the pedestrian environment is unfriendly and difficult to “read”; notwithstanding the Township Community Centre, there is no “Town Square” type outdoor space near the centre of the village for people to informally meet and socialize;

• There may be competition issues for establishing a “fine dining” restaurant at the Minerva Park site;

• More activities for kids are required; • The land base and its zoning may pose barriers to desired investment; • The extent of private ownership of the Township’s land base may hinder

opportunities for providing rest/picnic and camping sites along waterways; • The small size of the municipal corporation and the assessment base will

substantially constrain the township’s capacity to undertake new program or capital initiatives. Success will require significant effort by members of Council and the community, as well as partnerships and alliances with other public agencies, cottage associations, area clubs and neighbouring municipalities.

Opportunities • Enhance the village’s role as destination, meeting place and activity centre

for permanent residents and cottagers, make it more attractive as a potential business location;

• There is locally generated demand for business sites; • Pre-designating or pre-zoning potential commercial and other employment

lands may ease barriers to investment in new sites and/or businesses;



• Tourism product development in McKellar and all along Highway 124 can draw from and build on its historical role as “the Great Northern [settlement] Road”;

• Position McKellar as an accessible “soft adventure” and historical heritage destination for tourism, building on the “Great Northern Road” and the area’s logging and agricultural histories as contexts for land and water-based activities;

• Create “McKellar Loops”, at the Township and village scales, targeting self-propelled water and pedestrian traffic respectively;

• Traffic by parents and relatives dropping off/picking up and visiting children at area camps are another market segment that can support an enhanced services base;

• “Raw Materials” for a significantly stronger penetration of local and tourist visitor markets are present:

- Accessibility; - Waterfront site; - Land base and connections; - Water touring routes; - Trails; - Canoeing & kayaking as a regional theme; - Historical themes, particularly logging and agriculture; All can act as complements to the Inn at Manitou and the Ridge at Manitou golf course, which can stand as high-end branders of the destination.

3.8 Threshold Feasibility Analysis of a Restaurant at Manitou Landing

The Manitou Landing site presents as an attractive and potentially strong location for a restaurant. This part of the Foundations section describes the competitive context for a second restaurant in McKellar, and a threshold feasibility analysis for its operation. The objective of the analysis is to identify the conditions necessary for a viable operation, and an evaluation of whether these conditions are reasonably achievable.

Figure 23 shows locations and selected operating characteristics of restaurants in the Highway 124 corridor. Aside from the North Landing operation on Whitestone Lake, none can offer as compelling a location as Manitou Landing. Further, the McKellar location offers the best proximity to Highway 69 and the seasonal and permanent population of the larger Parry Sound District. While there is already the McKellar Country operation overlooking McKellar Lake, smaller settlements like Dunchurch and Ahmic Harbour are currently each supporting two restaurants, in locations with substantially lower average annual daily traffic counts (see Figure 12). On the basis of its locational attributes, including the quality of the Manitou Landing setting, the current presence of snowmobile trail connections to McKellar for winter traffic, and the other initiatives proposed for the site and the Township, it is reasonable to target a restaurant operation as an important part of the site complex.



Figure 24 presents the threshold feasibility analysis for such a facility. The logical sequence of the analysis seeks to find the market penetration and visit assumptions that enable a cash return in the order of 20% (before taxes). The restaurant is assumed to be an upmarket, attractively finished facility of some 2,000 square feet, with 40 settings inside, and another 40 on an outside deck for the summer seasons. Entrées are assumed to be priced in the $8 to $16 range. It is further assumed that the Township builds and maintains the septic system and the parking lot, and leases the restaurant site to the builder/operator. That entity is further assumed to operate or sub-lease the operation of the fuel and related marine supplies sales function for the marina component. The analysis first defines the major assumptions about the capital investment required to construct the building and its added docking, and a working figure for lease payments back to the Township for site occupancy. The Restaurant Visit Assumptions box inputs market penetration assumptions to give a total restaurant visits estimate that then drives the pro forma calculations. The pro forma converts visit and revenue inputs into an estimate of net cash flow from restaurant operations, using a mix of standard operating ratios and line item estimates. Net cash is then added to an assumed payout from the marina operation to give total cash returns to invested capital. The rate of return on invested capital figure defines the economic performance of the investment. As shown in Figure 24, a return of 20 % is achievable with 27,410 visits generating $603,020 in restaurant revenues, given the stated assumptions. Given the setting, the availability of docking and snowmobile access and the other uses proposed for the site, these revenue and penetration figures are considered to be quite achievable. On this basis the operation is considered to have an achievable threshold for viability, and can reasonably be targeted as an economic component of the Manitou Landing complex.



Figures 23 - Restaurant Locations and Characteristics along Highway 124

Humphrey

HorseshoeLake

Orrville

Parry Sound

Rosseau

Badger's Corners MelissaSnug

Harbour

Dunchurch AhmicHarbour

Port Carmen

Wiseman’sCorners

MapleIsland

Sundridge

SouthRiver

Bear Lake

MuskokaParry Sound

Burk's Falls

Scotia

Katrine

Whitestone

Sprucedale

Waubamik

McKellar

Fairholme

ArdbegCecebe

Magnetawan

Emsdale

Ullswater UttersonGordonBay

OtterLake

BernardLake

EagleLake

LorimerLake

WahwashkeshLake

Manitouwabing Lake

HealeyLake

SkeletonLake

GeorgianBay

LakeVernon

ParryIsland

Naiscoct River

NoganoshLake Last

Lake

PickerelLake

South

MagnetawanRiver

Whitestone Lake

NineMileLake

TroutLake

DoeLake

HornLake

BearLake

BuckLakeSeguin River

WhitefishLake

SpiderLake Blackstone

Lake

IslandLake

11

11

518

141

69

520

124

124

559

520

518

Duck Rock Resort

Inn at Manitou

North Landing Quiet Bay Restaurant

At the Bridge

McKellar Country

The Old Green House

The HarbourTavern

Name Location Established Season Hours Seating The Inn at Manitou McKellar Opened 1974 May - Oct 7 days a week 70

settings

McKellar Country McKellar N/A Year-round 7 days summer, Irregular off-season

40 settings

Duck Rock Resort Dunchurch Current owner

2003 Year-round 7 days a week 64

summer / 40 winter

At The Bridge Dunchurch Opened 2000 Year-round 7 days summer, Thursday to Sunday off-season

20 settings

North Landing Maple Island Opened 2002 Year-round 7 days a week 80 indoor / 53 outdoor

The Old Green House Ahmic Harbour N/A N/A N/A N/A

The Harbour Tavern Magnetawan N/A N/A N/A N/A

Quiet Bay Restaurant Magnetawan Opened 1996 Year-round 7 days a week 40

settings



Figure 26: Threshold Feasibility Analysis for a Restaurant at Manitou Landing Investment Assumptions: Capital Investment $630,000 * Mortgage Principal @ 50% $315,000 Equity Portion 50% $315,000 Furniture & Fittings $180,000 Invested Capital $495,000 Lease Assumptions: Land Value ($125,000) @ 10% $12,500 Parking & Septic Improvements $125,000 * Assumes municipality builds and maintains septic system Total Value $137,500 Annual Lease @ 15% $20,625 Restaurant Visit Assumptions: Regional Population - Seasonal 38,870 Restaurant Visits @ 0.4 per capita 15,550 i.e., on average, two people in five will make one visit/year Regional Population - Permanent 15,780 Restaurant Visits @ 0.2 per capita 3,160 i.e., on average, one person in five will make one visit/year Transient Tourist Visits to District 435,000 Restaurant Visits @ 0.02 per capita 8,700 i.e., on average, one person in fifty will make one visit/year Total Visits 27,410 Pro Forma Restaurant Visits 27,410 Average Spend $22 Total Sales $603,020 100.00% Cost of Sales ($211,060) -35.00% Gross Profit $391,960 65.00% Variable Labour ($131,160) -21.75% Direct Operating Expenses ($26,230) -4.35% Operating Profit $234,570 -26.10% Management ($40,000) -6.63% Benefits ($10,550) -1.75% Advertising & Marketing ($13,570) -2.25% Administration ($11,220) -1.86% Utilities ($10,550) -1.75% Repairs & Maintenance ($10,550) -1.75% Taxes - Township ($4,700) -0.78% Taxes - Schools ($6,500) -1.08% Insurance ($6,030) -1.00% Lease ($20,625) -3.42% Total Overheads ($134,295) -22.27% Net Cash Before Financing $100,275 16.63% Mortgage Interest @ 6.0% ($18,900) -3.13% Financing ($2,410) -0.40% Net Cash From Restaurant Operations $78,965 13.09% Net Cash from Marina Operations $20,000 Cash Returns to Invested Capital $98,965 Rate of Return 20.0%

Township of McKellar Economic Development Strategic Plan APPENDIX 1


Appendix 1: Detailed Preliminary Capital Costs Estimate – McKellar Village Improvements

Township of McKellar Economic Development Strategic Plan APPENDIX 1


Detailed Preliminary Capital Cost Estimates - McKellar Village Improvements

PHASE 1 PHASE 2

ITEM DESCRIPTION QUANTITY UNIT COST COST QUANTITY UNIT COST COST

1.00 SITE PREPARATION1.01 MOBILIZATION 1 $12,000 $12,000 1 $5,000 $5,0001.02 GRADING AND FILL 1 $35,000 $35,000 1 $15,000 $15,000

SUBTOTAL $47,000 $20,000

2.00 CONSTRUCTION2.01 DOCKS 1 $100,000 $100,0002.02 BUILDING -2 LEVELS + ROOF 382 M2 $1,466 $560,0122.03 PEDESTRIAN BRIDGE 1 $10,000 $10,0002.04 INFORMATION KIOSK 2 $15,000 $30,000

SUBTOTAL $140,000 $560,012

3.00 HARD LANDSCAPING3.01 SIDEWALKS + PAVING 2500 M2 $85 $212,500 250 M2 $85 $21,2503.02 BENCHES 10 EA. $1,000 $10,0003.03 TRASH/RECYCLING BINS 8 EA. $600 $4,800 2 EA. $600 $1,2003.04 PATHWAY LIGHTING 50 EA. $3,000 $150,0003.05 PARKING LIGHTING 7 EA. $3,000 $21,0003.06 BUILDING LIGHTING 1 $5,000 $5,0003.07 STREET SIGNAGE 1 $5,000 $5,000 1 $5,000 $5,0003.08 LINE PAINTING/RUMBLE STRIPS 1 $10,000 $10,0003.09 CONCRETE CURBS 370 M $100 $37,0003.10 PARKING LOT AND ACCESS 2240 M2 $30 $67,2003.11 PICNIC TABLES 10 EA. $500 $5,0003.12 DRINKING FOUNTAIN $0 1 EA. $4,000 $4,0003.13 PLAYGROUND 1 EA. $50,000 $50,0003.14 TRELLIS/PERGOLA 30 M $1,500 $45,000

SUBTOTAL $617,500 $36,450

4.00 SOFT LANDSCAPING4.01 DECIDUOUS TREES 30 EA. $500 $15,000 2 EA. $500 $1,0004.02 SOD (INCL. REPAIRS) 1 $12,000 $12,000 1 $5,000 $5,0004.03 FLORAL GARDEN 1 EA. $2,000 $2,0004.04 NATURAL INTERP. GARDEN 3 $20,000 $60,0004.05 WETLANDS 1 $75,000 $75,000

SUBTOTAL $162,000 $8,000

5.00 CONTINGENCIESPATCH AND REPAIR 4 $2,000.00 $8,000 $50,000CONSTRUCTION 15% $144,975 $93,669

SUBTOTAL $152,975 $143,669

6.00 SOFT COSTSSURVEYS 1 $12,000.00 $12,000 1 $6,000 $6,000PERMITS/APPROVALS 1 $8,000.00 $8,000 1 $6,000 $6,000PROFESSIONAL FEES $111,948 $61,451

SUBTOTAL $131,948 $73,451

TOTAL PHASE 1 $1,251,423 PHASE 2 $841,582GRAND TOTAL $2,093,004

OWNSHIP OF MCKELLAR ECONOMIC DEVELOPMENT...

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