1. AMS Brewery Report and Recommendation

2. Context 2010: start of idea 2011: feasibility report (positive for a brewpub) Dec. 2012: unclear direction, Brewery committee struck Members: Elin, Phaidra, Kathy, Mike

3. Context December Committee started work Worked with First Key on new costing for a microbrewery Worked with management to determine an operational model Started re-engaging with potential partners

4. Context January/February Worked towards more detailed costing Continued talks with more potential partners: lots of interest Worked with Michael Kingsmill & BIRD Construction to determine building costs Finalized costing, potential options, and a final recommendation to council

5. Challenges Allocated space not enough for a significant capacity: limits business potential No room for storage of kegs in the 737 sqft brewery: need to get rid of another commercial tenant Solutions: 4 options!

6. Options Option I: Obtain space from UBC to build a bigger facility in the OLD SUB Option II: Obtain storage space from UBC and combine with 22 Option III: Build a Brewery in the New SUB, find storage in the New SUB Option IV: Build a brewery in the new Farm Centre (est. 2017)

7. Options Option I: Obtain space from UBC to build a bigger facility in the OLD SUB Option II: Obtain storage space from UBC and combine with 22 Option III: Build a Brewery in the New SUB, find storage in the New SUB Option IV: Build a brewery in the new Farm Centre (est. 2017)

8. Option III Brewery-ready shell: $530,775 Soft costs (design, etc): $98,300 Taxes: $44,447 Total: $637,522

9. Option III Other costs/opportunity costs: Rent from 737 sqft brewing space: $36,850/yr Rent from 1300 sqft storage space: $65,000/yr 10yr payback of initial investment: $81,722/yr Total: $183,572/year (for a limited 1500 hL capacity brewery)

10. Option IV Farm currently building a $20 million Farm Centre (completion 2017) Growing hops and barley Can use the waste product from a brewery Also will have aqua farms, etc. OPPORTUNITY: add a new brewing facility to the Farm Centre

11. Option IV Strong interest from the Farm Sustainable Cheaper building costs: $350/sqft Flexible design Much higher capacity unanimous support from the Brewery Committee & Exec Committee

12. AMS role AMS would pay for the construction cost of the brewery (up to $1.1 million) – $275,000 set aside from the Student Spaces Fund over 4 years – Investment recovery from lease to a brewing partner Agreement with the Farm/UBC on the governance of the facility

13. AMS Funding?? Student Spaces Fund will collect: $2,833,608 over next 5 years Outstanding commitments: New SUB: $250k Child Care: $500k Design office: $400k Total: $1,150,000 Investment revenues from saving $275k/year:$114,488

14. Good Business sense? Definitely the best of the 4 alternatives Long term investment: lease/business revenue from a brewery

15. Challenges Need UBC (C&CP) approval Need to negotiate a partnership model with the Farm Need to coordinate the design of the brewery

16. Motion Save up $275k over 4 years (2013/4-2016/7) for a brewery Select a permanent group to lead the process – 5 members total, 2 permanent AMS council to make a final decision after the presentation of an agreement

17. THANK YOU Questions?