Demand Feasibility Study

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Demand Feasibility Study For a Multi-Purpose
Event Center in Texas
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STUDY OBJECTIVES

• Assess proposed market area for success
  indicators given demographics, hockey fan and
  league profile data
• Estimate arenas feasible seating capacity
• Estimate supportable pricing ranges for arena
  amenities and services
• Suggest types/value of non-hockey events

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PROCESS STEPS

• Determine comparable venues from league data and
  socio-economic indicators
• Compare proposed venue to experience of others
• Note similarities and differences
• Apply key ratios to determine final estimates of
  size and pricing

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KEY ECONOMIC INDICATORS

• Core economic factors considered
• Population, employment growth profile
• Total and per capita income growth
• Target audience demographic profile
• Age, sex, income, employment, education
• Family size/composition
• Car and home ownership

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KEY MARKET FACTORS

• Proximity to major metro area
• Venue location transportation access
• Competing area facilities
• Local interests, events and programs
• Arenas synergy with potential event variety

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MARKET AREA

• Market Area Location City in Texas
• County A as the center of gravity for
• County A and County B together
• Comparable Venues for Analysis
• 6 Texas venues Amarillo, Corpus Christi, El
  Paso, Lubbock, Odessa, San Angelo

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SUMMARY OF RESULTS I

• Overall fit to City in Texas STRONG
• Feasible seating capacity range
• 6,500 to 7,500 seats
• Selected market area indicators
• 10-year population growth, 4.8/yr.
• 10-year employment growth, 6.5/yr.
• Per capita income growth, 8.1/yr.
• 2000 per capita income, 25,576

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SUMMARY OF RESULTS II

• Pricing Ranges
• Private Suites - 30K avg. 25K to 35K
• Club seats - 25K avg. 20 to 30
• Tickets - 12 avg. 5 to 18 range
• Non-hockey events
• Sports football, tennis, soccer, basketball,
  skating
• Live entertainment live music, concerts,
  performing arts, thrill shows, family shows
• Expositions trade shows, conventions, banquets,
  cultural events

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THE PROPOSAL

• A 6,000 seat entertainment center
• multi-purpose to maximize Event Days
• attract indoor sporting events, entertainment,
  trade shows/conventions, and family events
• provide for ice skating, youth hockey and
  community activities
• operate deficit free, from the first year and
  affordably achieve a return on investment

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THE RIGHT FIT

• Unique opportunity to increase status as a
  destination point and cultural center in County
  A
• Increase/retain sales tax revenue
• To establish a rallying point around which a
  sense of civic pride, social notoriety and
  quality of life can be measured

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EVENT CALENDAR 148 Days

• Days Per Avg. Daily Total
• Event Year Event
  Attendance Attendance
• Major Sport Tenant (Hockey 35 4,500
  157,500
• Performing Arts/Symphony 8 3,500
  28,000
• Other Sports 22 4,000 88,000
• Festivals/Cultural Events 2
  3,000 18,000
• Equestrian/Rodeo Events 9 5,000
  67,500
• Family Shows 6 3,500 31,500
• Concerts 16 6,000 96,000
• Thrill Shows 3 4,000 24,000
• Trade Shows/Conventions 10 4,000
  120,000
• TOTAL 114 642,500

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ECONOMIC ADVANTAGES

• The incremental traffic directed to County A
  will generate additional sales and sales tax
  revenue annually
• Out of area visitors will generate hotel/motel,
  retail and local tax revenue for local businesses

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COMMUNITY INVESTMENT I

• Construction Phase Economic Impact
• Estimated 25 million arena
• Duration17-18 months
• Jobs 110 Direct Jobs Indirect Jobs (X 2.6)
• Sectors Building Materials Services
• Incremental local spending effect (X 2.2)
• Incremental taxable sales revenue

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COMMUNITY INVESTMENT II

• Operations Phase Economic Impact
• Duration Annual
• 55 Direct Jobs Indirect Jobs (X 2.2)
• Arena gross receipts estimated at 13.6 million
• Incremental direct and indirect (X 2.3) spending
• Incremental local sales tax revenue