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Multi-Purpose Stadium Market Feasibility Study

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Multi-Purpose Stadium Market Feasibility Study Multi-Purpose Stadium Market Feasibility Study SUBMITTED TO The City of Savannah, Georgia SUBMITTED BY C. H. Johnson Consulting, Inc. September 25, 2014 DRAFT TABLE OF CONTENTS SECTION I TRANSMITTAL LETTER SECTION II INTRODUCTION …………………………………...............………………..……………...1 SECTION III ECONOMIC & DEMOGRAPHIC OVERVIEW.....………………………..…..………….....6 SECTION IV SITE ANALYSIS…………………………………………………………….……………........19 SECTION V HISTORICAL OVERVIEW & PEER REVIEW …………………………..…………………...27 SECTION VI STADIUM CASE STUDIES………………...…………..…………………….…....................35 SECTION VII SURVEY RESULTS & DEMAND PROJECTIONS...…….….…………………………………46 SECTION VIII ECONOMIC AND FISCAL IMPACTS ANALYSIS………………...….……………..………..64 SECTION IX STADIUM FUNDING STRATEGY ………………………………..….……………..………..75 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | [email protected] SECTION I TRANSMITTAL LETTER 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | [email protected] September 25, 2014 Mr. Joe Shearouse City of Savannah 2 East Bay Street P.O. Box 1027 Savannah, GA 31402 Re: Multipurpose Stadium Market Feasibility Analysis Dear Mr. Shearouse: Johnson Consulting is pleased to submit this DRAFT report to the City of Savannah that analyzes the feasibility of developing a new multi-purpose baseball stadium that will also operate as a sports entertainment venue. Our report includes market feasibility analysis, a recommended program and an economic and fiscal benefits impacts analysis. Johnson Consulting has no responsibility to update this report for events and circumstances occurring after the date of this report. The findings presented herein reflect analyses of primary and secondary sources of information. Johnson Consulting used sources deemed to be reliable, but cannot guarantee their accuracy. Moreover, some of the estimates and analyses presented in this study are based on trends and assumptions, which can result in differences between the projected results and the actual results. Because events and circumstances frequently do not occur as expected, those differences may be material. We have enjoyed serving you on this engagement and look forward to providing you with continuing service. Sincerely, DRAFT C.H. JOHNSON CONSULTING, INC. 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | [email protected] SECTION II INTRODUCTION 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | [email protected] Section 2: Introduction & League Overview | DRAFT September 2014 Multipurpose Stadium Market Feasibility Study – Savannah, GA PAGE 1 INTRODUCTION Johnson Consulting was retained by the City of Savannah to provide market feasibility and an economic and fiscal impact study for a proposed multipurpose minor league stadium. The City wanted to investigate the merit of renovating the aging Grayson Stadium versus construction of a new minor league ballpark, and, if Grayson Stadium should prove to be obsolete, how it should be repurposed. Additionally, this study will examine new downtown minor league stadium developments in nearby regions to assess whether they have served as a catalyst for economic development in their areas. This study provides a straightforward analysis that outlines the market opportunity and economic impact of the project to utilize as a tool when discussing potential funding options for the proposed project. OBJECTIVES OF THE STUDY Johnson Consulting has undertaken a program of services designed to accomplish the following major objectives: . To analyze the market viability of a proposed multipurpose minor league stadium in Savannah, GA. To quantify the total economic and fiscal impact the proposed stadium will have on the local community, as well as the ability of the stadium to be a catalyst for economic development. In addition to this introduction and methodology review, the report contains the following sections: . Section 3 - Presents an economic and demographic overview of Savannah, GA and the regional market. The information in this section is an essential component in understanding the economic and market framework that will support a new multipurpose stadium. Section 4 – Provides a site analysis of the current Grayson Stadium site and surrounding area as well as best and highest use opportunities for the site, should a new minor league stadium come to fruition. Our analysis utilizes a proprietary site analysis to rank each site based on a number of important factors. Section 5 – Details the historical overview of the South Atlantic League, the Single-A baseball league in which the Savannah Sand Gnats play. This section also includes market demographics of other South Atlantic League teams to compare to Savannah. Section 6 - Includes a case study analysis of four minor league stadiums: NewBridge Bank Park in Greensboro, NC; Fluor Field in Greenville, SC; Joseph P. Riley Jr. Park in Charleston, SC; and Parkview Field in Ft. Wayne, IN. Each case study breaks down the history of the stadium, its funding sources, event demand and, when applicable, program recommendations for the proposed stadium in Savannah, GA. 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | [email protected] Section 2: Introduction & League Overview | DRAFT September 2014 Multipurpose Stadium Market Feasibility Study – Savannah, GA PAGE 2 . Section 7 – Includes results from our survey used to generate projections of attendance, number of events based on market potential, capture rate and comparable performance. This section further provides our recommended program of amenities at a potential new multi-purpose stadium in Downtown Savannah. Section 8 – Provides the economic and fiscal impacts of a new multipurpose baseball stadium in Savannah. Section 9 - Offers multiple national funding options and mechanisms utilized for stadium construction, as well as some local funding options. APPROACH / METHODOLOGY In order to accomplish these objectives, the program of analysis conducted by Johnson Consulting has undertaken the following research tasks: . Interviewed stakeholders to gather information, obtain work performed to date, and understand the expectations and objectives of this development . Examined regional economic and demographic data and projected regional economic trends relevant to supporting the proposed development. Interviewed industry participants and those familiar with the local market to identify specific market opportunities . Launched a local survey to assess interest from the local population . Conducted an assessment of programming and utilization at peer facilities . Prepared an economic and fiscal impact analysis based on projected demand ABOUT THE CONSULTING TEAM C.H. Johnson Consulting (Johnson Consulting) is a nationally recognized authority on sports venues, stadiums, arenas, and mixed-use development projects. The firm works nationally and internationally for cities, counties, universities and private sector developers. Previous clients and work experience include the following: the minor league/spring training stadium at Osceola County Heritage Park in Kissimmee, Florida; the new Atlanta Braves Ballpark in Pearl, MS; the redevelopment of the Jerry Uht Ballpark in Erie, PA; a minor league stadium in Ocala, FL for the New York Yankees Class A-Advanced affiliate; an economic analysis for a Class AA baseball stadium in Biloxi, MS; and a market and feasibility analysis for a Frontier League expansion team in Franklin, WI. We offer clients assistance with the development of creative and 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | [email protected] Section 2: Introduction & League Overview | DRAFT September 2014 Multipurpose Stadium Market Feasibility Study – Savannah, GA PAGE 3 effective business plans for complex projects. We are able to integrate information from multiple parties into a single tool for use by governmental agencies to help execute complex real estate projects. TERMS OF ASSIGNMENT This report is based on estimates, assumptions, actual operating data and other information obtained from our research, our prior experience with similar assignments, and information received from the Client and other sources. The sources of information and basis of estimates and assumptions are stated herein. Findings presented within this report are based on Johnson Consulting’s assessment of various data, market characteristics, discussions with project stakeholders, and documented assumptions. We cannot represent our projections as results that will actually be achieved. EXECUTIVE SUMMARY A City has to provide an array of public amenities if it is of a certain size. Libraries, airports, museums, arenas, convention centers and ballparks fall into this category of public amenities. Some will debate the merits of each type of asset, but when residents, visitors, local corporations, and newly locating companies seek to visit or reside in a certain market, such amenities are crucial to their interests. Multipurpose stadiums can be catalysts for economic development, if the setting and motivations are aligned for success. Some markets have performed poorly. In these few instances common characteristics are present – a poor site is chosen, political gain is sought, or
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