1

August, 2008

Project Niagara: Summary of Impacts

Description of proposed site

The entire 250-acre site is owned by Parks Canada, whose mandate is to protect, preserve, and
present our natural, cultural and historical resources and educate Canadians about them. The
significance of this site to Parks Canada is its history. During the War of 1812, the area between
One Mile Creek and Two Mile Creek and from Lake Ontario to Lakeshore Road was the site of
the Battle of Fort George.

Environmental Considerations

Niagara-on-the-Lake, one of the most heavily deforested parts of the province, has only 2% forest
cover. The Carolinian forest on the site is a rare ecosystem that has been designated an Area of
Natural and Scientific Interest. This forest is the only remaining example of a Carolinian forest on
the shores of the Great Lakes. The forest is home to endangered plant species such as the White
Wood Aster, and it provides a habitat for a variety of wildlife, including numerous bird and animal
species.

Two Mile Creek is a high-quality fish habitat, and its un-named tributary is identified as needing
rehabilitation. Four Mile Creek Pond sustains an abundance of wildlife, including a heron rookery.
Four Mile Creek Estuary is a Provincially Significant Wetland. The shoreline, which is undergoing
significant erosion, is identified as a waterfowl wintering area and a walleye spawning area and it
is home to a colony of bank swallows.

Locating the proposed music festival on this site threatens these precious natural resources;
eliminates the possibility of ecological restoration, forest enhancement, and development of the
sewage lagoons into wetland or marsh areas; and precludes opening the site to the community
as parkland. The Harmony Residents Group believes this precious resource must be preserved
and an alternative vision for the site be created, one that is environmentally sound and
sustainable and provides greater economic benefit to the town.

Impact on Residents

Traffic: Project Niagara hopes to attract 250,000–300,000 visitors annually—about the same
number of people who visit town to attend the Shaw, but over a 12-week, rather than 7-month,
period, with five performances planned each week. Anticipated attendance is 4,000 per
performance, plus a few concerts per year with attendance of 9,000 to 12,000. Site plans include
parking for approximately 2,000 cars. For larger concerts, Project Niagara expects to shuttle
people from perimeter parking lots, whose location has not been determined. The November,
2004 Transportation Master Plan recommended a demonstration project to confirm the feasibility
of shuttles, as the concept is unproven.

Niagara Region has determined that access to the proposed site requires widening Lakeshore
Road to include a turning lane, improving the intersection of Niven Road and Regional Road 55,
and rehabilitating Niven Road. The Transportation Master Plan (2004) identified projects to deal
with the traffic volume that existed at that time, including a new interchange at Highway 405 and
Concession 6; upgrades to Concession 6, Line 3 and Concession 3; intersection upgrades on
Niagara Stone Road and Lakeshore Road; and additional bicycle and multi-use trails. In April,
2008, Niagara Region indicated many of these projects would need to be accelerated to service
Project Niagara.

Harmony Residents Group

Harmony for Niagara-on-the-Lake Harmony with the Environment
 2
August, 2008

We expect that, after concerts, traffic congestion on Lakeshore, Niven, Mississauga and Mary
Streets will push frustrated motorists onto alternative routes through Garrison Village,
Chautauqua, other Old Town streets and rural roads, reducing mobility for both residents and
visitors. Concertgoers may also put a strain on the town’s 792 metered parking spaces.

Noise: Project Niagara has stated an acoustic engineer will work to ensure noise does not
become an issue for residents. Strategies mentioned include a glass wall sound barrier, the use
of berms and shrubs, and thickening the forest adjacent to properties on Shakespeare Avenue.
The intention of managing noise for residents is welcome, but the feasibility is unknown.

The artistic program for Project Niagara has been described as classical, popular, jazz, and world
music. The Tanglewood Festival in Lenox, Massachusetts includes classical, contemporary, rock,
and jazz. Blossom focuses on classical and pops music on weekends during July and August,
with rock and country concerts during the week. Ravinia also includes rock, blues and country
music in its programming.

Sewage: The original plan for wastewater management was to upgrade the existing sewage
lagoons. However, Project Niagara requires the land on which the lagoons currently sit. A recent
Environmental Assessment has confirmed the most cost-effective and feasible option is to
upgrade the existing sewage lagoons.

Costs: Who pays What

Rifle range cleanup: Costs to remove ordnance from the former rifle range have been stated as
$2 million and are to be borne by the Department of National Defence before the land is returned
to Parks Canada.

Project Niagara facilities: The cost of festival facilities is estimated at $50–100 million. Funding
is expected to come from the federal and provincial governments and private donors. Operating
costs have not been shared publicly but would presumably be paid from revenues. The costs
described above are the only costs for which the festival assumes responsibility. It is not known
who will pay for costs such as traffic management and litter/garbage cleanup. Project Niagara will
not be paying town taxes, and it is not known whether it will make any payments in lieu (PIL) of
taxes to the town.

Sewage treatment: Niagara Region estimates $17 million is required to upgrade the existing
sewage lagoons. Several options have been identified to decommission the sewage lagoons and
relocate wastewater treatment elsewhere. Estimates range from $23.3 million to $27.7 million –
i.e. $6.3 - $10.7 million higher than upgrading the existing lagoons. The region has not yet
selected an option.

Roads: Niagara Region estimates $5.6 million will be required to provide access to the site. The
Transportation Master Plan identified $40 million to address traffic concerns, shared between the
region ($22 million), and the town ($18 million), spread over 20 years. Approximately $27.8
million of these projects would need to be brought forward to service Project Niagara. An
additional $2.8 million may also be required to service debt. The new off-ramp from Highway 405
to Concession 6 is a provincial cost and not included above. The cost of land purchase and
construction of perimeter parking lots is not included.

Summary: To support Project Niagara, the Region needs to spend up to $27.7 million on sewage
treatment and $33.4 million on roads over the next few years. These are preliminary estimates,
and Region staff have stated that these costs could not be managed without external funding,
delaying other priority projects in Niagara Region communities, or both. The $61.1 million in
capital costs to Niagara Region does not include increased costs for waste management and

Harmony Residents Group

Harmony for Niagara-on-the-Lake Harmony with the Environment
 3
August, 2008

recycling programs, which have not been estimated. Ongoing operational costs are also
unknown.

In 2008, the Niagara-on-the-Lake town capital budget was $6.2 million. The town has chosen not
to assess costs of Project Niagara now. Costs are likely to be significant in the following areas:
 Road maintenance, signage, and parking enforcement. Local costs to be determined, plus
the town’s share of accelerating the Transportation Master Plan ($12.5 million).
 Policing and traffic management: to be determined
 Waste management and litter cleanup: to be determined
 Additional parking: if required, not yet determined

How will this affect us as ratepayers? With 6000 municipal tax accounts in Niagara-on-the-Lake, it
amounts to thousands of dollars per household. A different site for the festival should be
identified, one that does not disrupt residential areas and require significant investment in
infrastructure.

Benefits

Project Niagara is expected to bring additional tourism revenue to area retail and hospitality
businesses and to the Shaw Festival, which generates $59 million annually for local businesses.
Canada’s attractiveness as a tourist destination for Americans has been declining for several
years, due to factors such as 9/11, SARS, border crossing delays, fuel prices, the rising Canadian
dollar and the declining US economy. Statistics Canada reported 13.7 million same-day visits by
Americans in 2006, a 12.5% drop from 2005, which was the previous all-time low. In Niagara, US
visits declined 39% between 2001 and 2006, with visits from all countries declining by 35%. As of
April 2008, gas prices had risen on average 22% during the past year; gas is expected to reach
$2.00/litre by 2012. Numerous studies indicate that people will choose to travel less in future, due
to rising fuel costs.

No information about economic benefits is available from either Project Niagara or the Niagara-
on-the-Lake Chamber of Commerce, but the above data suggest we should be sceptical about
the economic benefit of the proposed festival as advertised.

Conclusion

A less intrusive and expensive site for Project Niagara and a better use for the Parks Canada site
are needed.

For more information, please visit: http://harmonyresidentsgroup.blogspot.com/

Harmony Residents Group

Harmony for Niagara-on-the-Lake Harmony with the Environment