ARENA MARKET VALIDATION AND FINANCIAL FEASIBILITY STUDY

57 Pages·2011·1.29 MB·English

CITY OF RICHMOND Confidential
PARTNERING COUNTIES CORPORATE SPONSORS
ARENA MARKET VALIDATION AND
FINANCIAL FEASIBILITY STUDY
VOLUME I OF III
EXECUTIVE SUMMARY
PRESENTED BY:
BARRETT SPORTS GROUP, LLC
POPULOUS SPORTS ARCHITECTS
WESTON SPORTS & ENTERTAINMENT
Januaryy 27,, 2011
PRELIMINARY REPORT – SUBJECT TO REVISION
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Confidential
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Table of Contents
I. Introduction
II. Market Analysis
III. Market Surveyys
A. General Public Survey
B. Corporate Base Survey
IV. Preliminaryy Facilityy Characteristics
V. Potential Arena Sites
VI. Construction Cost Estimates
VII. Financial Analysis
VIII. Economic Imppact Analyysis
IX. Major Development Considerations
X. Next Stepps
Limiting Conditions and Assumptions
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Confidential
I. INTRODUCTION
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I. Introduction
 The Consultingg Team is Pleased to Present Preliminaryy Findinggs in Connection with the Arena
Market Validation and Financial Feasibility Study
 Major Goals and Objectives
 Evaluate Local and Reggional Market Demand
 Site Analysis
 Prepare Preliminary Construction Cost Estimates
 Evaluate Financial Feasibility
 Evaluate Financing Alternatives (Case Studies Included /To be Completed – Next Phase)
 Evaluate Economic and Fiscal Impacts
 Richmond Coliseum Opened in 1971
 Seating Capacity 13,410 (Announced)
– Hockey Configuration 10,454
– Basketball Configuration 11,038
– 336600 DDegree CConffiigurattiion 1122,221177
– 270 Degree Configuration (End Stage) 10,385
 “Luxury” Suites 12
 “CClluubb” SSeeaattss 666688
 Lacks Modern Amenities/Quality Finishes
 Requires Significant Infrastructure Improvements
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Confidential
II. Market Analysis
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II. Market Analysis
 Comprehensive Review of Demographic Characteristics of Comparable Markets
1. Median Market Area Comparison
A. CBSA Designation
i. Arena/Stadium Seat Inventory
B. Geographic Ring Comparison
i. 10 Mile Ring Statistics
ii. 20 Mile Ring Statistics
iii. 30 Mile Ring Statistics
C. Drive Time Comparison
ii. 2200 MMiinute SStatiistiics
ii. 30 Minute Statistics
 HHiigghh LLeevveell MMiinnoorr LLeeaagguuee HHoocckkeeyy ((ee.gg., AAHHLL//EECCHHLL)) DDeemmooggrraapphhiicc CChhaarraacctteerriissttiiccss wweerree
Evaluated but Not Included in this Report
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II. Market Analysis
General Observations
 Median Market Summary Comparison
 Poppulation
– Richmond Market is Generally Comparable to Other Markets
– Below Market Average Based on 30 Mile Ring
– Estimated Growth Rate is Comparable to Other Markets
 Households
– Richmond Market is Comparable to Other Markets
– Estimated Growth Rate is Comparable to Other Markets
 Income
– Richmond Market is Above Other Markets
– Number of High Income Households is Generally Comparable to Other Markets
 Unemployment
– Unemployment Rate is Comparable to Other Markets
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II. Market Analysis
General Observations
 Median Market Summary Comparison
 CCorporate BBase
– Comparable to Market Average Based on Number of Companies with $50.0 Million or
More in Sales
– Compparable to Market Averagge Based on Number of Comppanies with 500 or More
Employees
 Media Market
– BBellow MMarkket AAverage BBasedd on TTVV HHomes
– Below Market Average Based on Radio Population
 SSeeaatt IInnvveennttoorryy
– Below Market Average in Terms of Existing Inventory of Stadium /Arena Seats
» Low Inventory of Existing Seats, Luxury Suites and Club Seats
– Ratio of Population and High Income Households per Seat Above Average
– Ratio of Population and High Income Households per Suite / Club Seat Above Average
– Ratio of Large Companies to Number of Suites / Club Seats Above Average
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II. Market Analysis
CCoommppeettiittiivvee FFaacciilliittiieess
 Competitive Facilities in Immediate Market Vicinity Provide Limited Direct Competition to
Proposed Arena
– EEventts//TTenantts
– Premium Seating Leasing
– Advertising/Sponsorship
– Other
 Facilities Located in Neighboring Communities (e.g, Charlottesville/Hampton/Norfolk)
Provide Direct Competition (Significant Issue)
– EEvveennttss//TTeennaannttss
– Advertising/Sponsorship
– Other
 JJoohhnn PPaauull JJoonneess AArreennaa PPrroovviiddeess MMoosstt SSiiggnniiffiiccaanntt SSoouurrccee ooff CCoommppeettiittiioonn
– State-of-the-Art Facility
– Large Capacity
– Events/Tenants
–– PPrreemmiiuumm SSeeaattiinngg LLeeaassiinngg ((LLiimmiitteedd))
– Advertising/Sponsorship
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