Laconia Sports June 21, 2019 Complex – Market and Financial Feasibility Analysis

1 Executive Summary

v Chapter 1: Project Orientation

v Chapter 2: Economic, Demographic and Tourism Analysis

v Chapter 3: Local Inventory and Condition Assessment

v Chapter 4: Demand Analysis and Stakeholder Feedback

v Chapter 5: Regional Sports Facilities Analysis Table of Contents v Chapter 6: Sports Tournaments and Opportunity Analysis v Chapter 7: Case Studies

v Chapter 8: Support Amenities - Hotel & Restaurant Analysis

v Chapter 9: Site Analysis

v Chapter 10: Conclusions

v Chapter 11: Partnerships & Funding

v Chapter 12: Demand & Financial Projections

v Chapter 13: Economic, Fiscal, and Employment Impact Analysis

2 Executive Summary

3 Key Questions

The Lakeshore Redevelopment Planning Commission (Client) engaged the Hunden Strategic Partners Team (HSP), including design professionals from NBBJ, to investigate the feasibility of developing a sports complex at the Lakes Region site in Laconia, New Hampshire (Project). The study aims to answer the following key questions: § What is the market opportunity for a new indoor or outdoor sports complex development in Laconia? § What is the existing supply of sports and recreation facilities in Laconia and the surrounding area? Is there a gap in quality or size of facilities? What is the level of local demand for a new sports facility or complex? § What is the existing state and greater regional supply of sports complexes capable of hosting impactful tournaments and events? Is there a gap in supply that a new facility in Laconia could accommodate? What is the opportunity to host major state and regional tournaments? § How is the area hotel market performing and what support amenities exist in the area? What does this mean for the market opportunity for a new sports facility or complex? § Based on the comprehensive market analysis, what are the conclusions and recommendations? Should multiple scenarios be considered? § What are the pros and cons of the potential development site?

4 Headlines

§ An adequate supply of indoor and outdoor sports complexes exist in New Hampshire and throughout New England. Laconia’s population base, lack of branded hotel rooms, and proximity to larger markets will make it difficult to attract large regional tournaments. § The hotel market in Laconia and surrounding cities is performing fairly well with solid rates and occupancies over 60 percent. Hotel performance is driven by strong summer months due to leisure activities in the region. The gaps in hotel performance occur during the shoulder seasons and winter months. The gap suggests that an indoor sports complex could have positive impact on hotel performance during the shoulder seasons and winter months. § Locally, the lack of available, quality indoor athletic facilities presents a major challenge for area clubs to train and practice during the season and throughout the offseason, both for indoor as well as outdoor sports. § HSP’s analysis indicates that opportunity exists for a new sports complex to both accommodate local demand and drive sports tourism to the site. § While sports facilities are impactful, they often do not break even operationally, necessitating the investment upfront and ongoing support of outside forces. Most of the spending that occurs from a facility generally happens in lodging, restaurants, attractions and retail. Attracting private capital to such facilities is difficult, even if they are busy and impactful. 5 Headlines

§ HSP’s analysis suggests that there is enough demand generated by Laconia area organizations to fill a new court/gymnasium facility in the evenings throughout the winter season. This demand would drive significant rental revenue to any new indoor complex. The development of a flexible indoor court complex would likely also result in the creation of new local and regional events. § Based on the comprehensive market analysis, HSP recommends that a 4-court indoor facility be developed. The facility would offer 4 regulation basketball courts which can be converted to 8 volleyball courts. Such a facility could accommodate weekly use for flat-floor sports, as well as smaller regional weekend events. While such a facility would be able to accommodate other flat-floor activities such as pickleball, wrestling, robotics, and Esports, the primary benefit would be to Laconia area sports organizations. § While there is also demand for outdoor fields to accommodate soccer, lacrosse and other field sports, this demand may not be enough to generate a fiscal return on investment due to issues with an uneven site (more expensive to develop) and already occupied hotel rooms with high rates in the summer months. The sloped site will greatly influence the cost and viability of outdoor facilities that will take up more land than an indoor facility. § While there is a demand for ice and indoor turf fields, the cost to develop such a facility is much greater and offers less flexibility for various sports which limits potential impact. Additionally, there is an adequate supply of ice and indoor turf within a 60 mile radius. 6 Recommended Program

The adjacent table summarizes the recommended program based on market conditions and opportunity. The projection model for the scenario assumes that the Laconia sports facility will primarily cater to basketball, volleyball, and indoor flat floor sports (wrestling, dance, etc.). These event projections include various sized tournaments that are assumed to rent the entire facility for multiple days over a weekend, as well as smaller single day events. Projections also include Events midweek court rental hours for practice, training, and leagues at the facility. Overall, HSP projects the indoor complex to host 63 events and more than 2,700 additional rental hours per year by stabilization (Year 5). Family and friends accompany most of the participants. Tour naments are assumed to bring between one and 1.6 spectators per participant. Trends show that the younger the participant, the more family and friends accompany the participant to Attendance the event. By stabilization, HSP projects more than 77,000 total attendees at the facility driven by events. Financial Projections

The model assumes events will pay daily, hourly or facility rental fees to use the facility, based on fees charged at comparable facilities. This model assumes a $5 gate fee per car for weekends tournaments. As shown, rental fees are projected to be the largest revenue source, increasing to roughly $370,000 by Year 10. Impact

The table to the right shows a summary of estimated combined 20- year impacts for the recommended complex. The net new spending for the Project totals $221 million over the 20-year period, $64 million in new earnings, 186 new full-time equivalent jobs, and more than $1.5 million in new taxes collected from the ongoing spending over 20 years. The construction impact will be more than $7 million on materials and labor, most of which will accrue to the local economy and local workers. The 25 job-years will be a temporary boom for the local economy. Chapter 1: Project Orientation

12 Project Orientation

The Lakeshore Redevelopment Planning Commission (Client) engaged the Hunden Strategic Partners Team (HSP), including design professionals from NBBJ, to investigate the feasibility of developing a sports complex on the state-owned Lakes Region Facility site in Laconia, New Hampshire. The Client is interested in understanding how a sports facility could best serve the community through improved quality of life, additional overnight stays, new jobs and a boost in economic impact to Laconia.

13 Redevelopment Commission Feedback

Initial feedback from the Client provided insight to the history of the Project as well as the goals of the study. § A new sports complex would align with § The City, county and state will likely not invest Laconia’s reputation as a tourism destination significant money into the Project; private o A population of about 16,000 grows to sector involvement will have to play a role roughly 35,000 in the summer § There have been past attempts to activate this o There are plenty of restaurants and specific parcel of land without success entertainment to support additional § Overall academic enrollment in the region has tourists been declining – the Project could help attract § The site is in an opportunity zone younger families to the area § § It is important to determine what would Indoor sports have been a challenge to happen with the Lakes Region Mutual Fire Aid accommodate, so the region is losing athletes Building if a new facility is built on that site in the winter months

14 Chapter 2: Economic, Demographic and Tourism Analysis

15 Laconia Regional Area

The adjacent figure shows Laconia’s location within the greater New England region. Laconia is 45 miles north of Manchester, 60 miles northwest of Portsmouth, 85 miles west of Portland, and 94 miles north of Boston. Lake Winnepesaukee is the largest lake in the state and third largest in New England, making it a popular summer destination. New Hampshire Lakes Region

Laconia has relatively fast and easy access to locations along the north-south oriented I-93 corridor. However, points east or west of the City tend only to be accessible by two-lane highways which slows travel time. The area is halfway between the population centers to the south and southeast. The area is home to a Tanger Outlets shopping center, which is popular with visitors due to no state sales tax. Laconia Drive-time Map

The population increases from over 75,000 to nearly four million from a 30-minute drive- time to a two hour drive-time. Average household income surpasses $100,000 in this same two-hour drive-time area. Population & Growth Rates

Population and Growth Rates Laconia is the county-seat of Population Percent Change Belknap County and part of 2000 2010 2018 2023 Projected 2010 - 2018 United States 281,421,906 308,745,538 330,088,686 343,954,683 6.9% the Laconia New Hampshire New Hampshire 1,235,786 1,316,470 1,374,067 1,408,984 4.4% Micropolitan Statistical Area. Laconia-NH-MSA 56,325 60,088 63,523 65,647 5.7% Belknap County 56,325 60,088 63,523 65,647 5.7% Belknap County is growing at a Laconia 16,405 15,946 16,605 17,041 4.1% City Population as % of MSA 29.1% 26.5% 26.1% 26.0% -- faster rate than the City of Source: ESRI Laconia and the state of New Hampshire, and all sub-areas are growing slower than the U.S. as a whole. Income, Spending & Other Demographic Data

Income, Spending and Other Demographic Data

Belknap While most economic statistics Category United States New Hampshire County Laconia Homeownership rate, 2013-2017 63.8% 70.7% 75.8% 54.8% are lower than the state or Median value of owner-occupied housing units, 2013-2017 $193,500 $244,900 $220,400 $180,600 national averages, Belknap Persons per household, 2013-2017 2.63 2.45 2.42 2.27 County and the City of Laconia Median household income, 2013-2017 $57,652 $71,305 $65,834 $52,702 Persons below poverty level, percent 12.3% 7.7% 8.3% 14.3% produce retail sales per capita Total employment, 2016 126,752,238 594,243 21,310 -- greater (2012) than the the Total employment, percent change, 2015-2016 2.1% 3.1% -0.2% -- national average. Retail sales per capita, 2012 $13,443 $19,700 $22,503 $17,171 Source: US Census Bureau Educational Attainment

Educational Attainment - 2017

The City of Laconia and New Belknap Population Age 25+ United States Hampshire County Laconia Belknap County both rank Did Not Complete High School 12.6% 7.1% 7.6% 10.3% above the state of New Completed High School 27.3% 28.0% 29.5% 31.6% Hampshire and the nation in Some College 20.8% 18.8% 21.2% 22.2% high school completion rates. Completed Associate Degree 8.3% 10.0% 10.2% 9.6% Both rank slightly below the Completed Bachelor Degree 19.1% 22.3% 19.5% 15.9% Completed Graduate Degree 11.8% 13.8% 12.0% 10.3% state averages in Associates, Bachelor, and Graduate Source: U.S. Census Bureau educational levels. Unemployment

Unemployment in Belknap County has been declining and is coming closer to the rates of the MSA. Overall, the rate of unemployment is much lower than the U.S., but is also very seasonal. Area Attractions

Many of the most popular attractions in Laconia are nature and parks, scenic, or water and amusement activities. Laconia is home to the annual Laconia Multicultural Festival in September as well as the annual New Hampshire Pumpkin Festival in October. These events draw visitors to the community from around the region. Several of Laconia’s most active tourism generators are detailed in the following slides. Tourism Generators

Monkey Trunks – Monkey Trunks offers three family-oriented outdoor ropes courses in Chocorua and Weirs Beach, New Hampshire. Monkey Trunks courses feature ziplines, swinging beams, tightropes, rolling logs, hanging tires, cargo nets to name but a few of their unique offerings. Belknap Mill – The Belknap Mill is the official meeting house of the state of new Hampshire, the oldest unaltered brick textile mill in the U.S. and the only industrial knitting museum in the U.S. Weirs Beach – Referred to affectionately by locals as “The Weirs” it is known for its wide, sandy, public beach on Lake Winnipesaukee. Weirs Beach also offers the Funspot Family Fun Center. Guinness Book of World Records named Funspot as the “Largest Arcade in the World.” 24 Tourism Generators

Laconia Antique Center –The LAC is located in the former Newberry’s Department Store, which was built in the 1950’s. The antique selection is vast, ranging from furniture, lamps, glassware and more. WWII memorabilia is also featured catering to diverse interests. Ahern State Park – Ahern State Park is a 128- acre state park that offers year round activities such as swimming, camping, hiking, snowmobiling and snowshoeing. Laconia Motorcycle Week – Celebrating 96 years in June 2019, motorcyclists will ride into Laconia and take part in numerous events across town. The events range from charity rides to local events at Weirs Beach and attracts riders from near and far. Laconia Motorcycle Week is sponsored by Progressive Auto Insurance each year. 25 Tourism Generators

New England Porch Rockers – The New England Porch Rockers is a small business which makes custom Mama Bear rockers, Papa Bear rockers as well as Baby Bear rockers. Owned by Jeanne Howe Compton, this professional weaver and craftswoman has been selling custom chairs since 2000. She has a strong reputation and shoppers visit her shop based on reputation alone. Opechee Park Cove Beach & Opechee Point Park – This 20-acre park features two beaches, the Cove and the Point. Each beach is 1,400 feet in length. There are also baseball diamonds, field hockey fields, a concession stand, a soccer field and a 400m rubberized track. Logs of Fun – Located at Weirs Beach near Funspot, Logs of Fun offers mini-golf and go- karts. It provides plenty of choices of activities near the lakes. 26 Tourism Generators

Endicott Rock State Historic Site – Endicott is a state park located on the shoreline of Lake Winnipesauke in the Weirs Beach area of Laconia. It is known for its large rock with lettering from the Massachusetts Bay Colony that symbolizes one of the earliest engagements with Europeans in the area. Sandwich Fair – The Sandwich Fair is an annual fair that lasts three days held over the Columbus Day weekend. The Sandwich Fair offers two parades: an antique auto parade and the “Grand Street Parade” which features marching bands from the local area. Rides, carnival games and food are also offered. New Hampshire Pumpkin Fair – With over 40,000+ attendees, a 34-foot tower of jack-o-lanterns, a Zombie walk, beer garden, pancake breakfast and other events coupled with numerous regional sponsors, the NH Pumpkin Fair is a staple event on Laconia’s calendar. 27 Tourism Generators

New England Pond Hockey Classic – the New England Pond Hockey Classic began 10 years ago and has grown from 77 teams to 280 teams in that time span. Teams come from across the county compete in the event, which consists of 26 rinks. This event provides a noticeable boost for room night in the Lakes Region in February. Ice Fishing Derby – The annual Ice Fishing Derby is sponsored by the Meredith Rotary Club and occurs in February on Lake Winnipesaukee in Meredith Bay. An estimated 20,000 people come to the region for the derby to watch and there are roughly 5,000 participants during a good year.

28 Chapter 3: Local Inventory and Condition Assessment

29 Local Outdoor Sports Supply

Multipurpose

Diamonds Basketball

Tennis Track Venue Location Other Robbie Mills Sports Complex Laconia 1 1 ------Opechee Park (At Laconia Middle School) Laconia -- 5 -- -- 1 One full-sized diamond, four youth diamonds Leavitt Park Laconia 1 -- 2 2 -- Sanborn Park Laconia 1 -- 1 -- -- Wyatt Park Laconia -- -- 2 -- -- Laconia High School Laconia 1 ------Turf field Memorial Park Laconia -- 2 -- 5 --

Source: Various Sources

There are currently seven outdoor sports fields in Laconia. Local Outdoor Athletic Opechee Park at Laconia Middle School offers five diamonds Supply and a track but no single location offers more than one full-size multipurpose field or diamond. Local Outdoor Athletic Supply Map

The parks and schools that provide outdoor amenities for Laconia are scattered and located primarily to the south of the site. Robbie Mills Sports Complex is a multipurpose complex that is adjacent to the potential Project site.

31 Opechee Park

Notes: § Five little league diamonds (one with a fence), 400M rubberized track § Adjacent to Laconia Middle School and Opechee Bay Key attributes: Home to Laconia Little League. Picnic facilities and two beaches are located at the park in addition to athletic amenities.

32 Robbie Mills Sports Complex

Notes: § Ballpark that serves as a home to the Winnipesaukee Muskrats baseball team § One multipurpose field for local soccer leagues Key attributes: The Muskrats attract roughly 200 attendees per game. Robbie Mills Sports Complex is located just north of the site.

33 Laconia currently offers only four indoor sports-related facilities. Local Indoor Athletic Supply These facilities are located in local schools and in the community center. Merrill Fay Ice Arena offers one sheet of ice for local clubs. Local Indoor Athletic Supply Map

Most local indoor assets are clustered around Opechee Bay while the ice facility is located further to the south.

35 Merrill Fay Arena

Notes: § One full-size sheet of ice § Closes in the spring and summer § The rink hosts hockey games, figure skating, lessons, birthday parties and more Key attributes: Home to the New England Wolves. The Wolves include a junior team and youth teams.

36 Chapter 4: Demand Analysis and Stakeholder Feedback

37 Stakeholder Feedback

Laconia High School Athletic Director § The high school has a new turf field and they are constantly turning people away – booked until 8:00 p.m. most nights § The gym is in use from 6:00 a.m. – 6:00 p.m. most days § High school does not host any tournaments currently, but could have that option with a new facility § Something similar to the Hampshire Dome would have a significant impact on a wide range of sports in the region § Basketball and soccer numbers have remained steady over the past several years § Lacrosse is booming in the region, but it is unclear whether major events could be hosted with an additional field § Football had declined, but has bounced back § Baseball and hockey numbers have declined at the high school level

38 Stakeholder Feedback

Lakes Region Dance § The organization has been around for 15 years and operates out of a 4,000-square-foot studio in Meredith, NH § There are roughly 150 students from ages 2 through adult § Classes run throughout the year and there is a competition team of 40 dancers that takes several trips throughout the year § They have been interested in hosting a competition for a while. This competition would be: o Friday – Sunday o An estimated 11 – 40 studios (with 10 – 100 performance per studio) would compete § Outside space for performances, large changing spaces and concessions are appreciated. The changing spaces do not have to be formal locker rooms

39 Stakeholder Feedback

New England Wolves § The New England Wolves are a hockey organization with junior and youth teams. They have roughly 70 – 80 kids and they are outgrowing their current facility at Merrill Fay Arena § Since the junior teams are made up of kids out of high school, they can play during the day o Practice 12 – 15 hours per week o August to Mid-March § Youth program of roughly 100 kids that practice after school during the week; all ages play games on the weekends § Laconia loses roughly 20% of boys and nearly 100% of girls after ages 10-11 to Concord, Hudson, and other locations due to lack of ice time and training § An ideal facility would include: o Multiple sheets of ice o Lodging and dining options o A dedicated locker room for the wolves o Capacity of 1,000 – 2,000 for the Wolves with additional visitors seating § The EHL, New England Premier Hockey League, and United Tier One Hockey League have never held showcases in Laconia – a new facility could keep this business local 40 Stakeholder Feedback

Additional Stakeholder Feedback § The new turf field at Laconia High School has been busy and city parks get plenty of use during the summer months § Additionally, the high school, middle school and community center gymnasiums are at capacity with various activities § Any new development would help to expand on current assets and attract additional tournaments § There is a strong need for indoor turf with the closing of the Tilton Sports Center § Stakeholders believe that youth sports should be the next big attraction in New Hampshire § New Hampshire has an aging population and an investment in youth sports would help drive younger families to the region § Teams and athletes drive over one hour for quality indoor training during the shoulder and winter seasons

41 Stakeholder Feedback

Laconia Little League Winnepesaukee Muskrats Baseball § Little league baseball made up of 300 kids, § New England Collegiate Baseball League that ages 6 – 12 attracts roughly 225 fans on game nights § Play at Opechee Park, which has only one full- § The Muskrats play at Robbie Mills Sports size diamond Complex § Currently host a division two all-star o The Muskrats are happy with their current tournament in late June situation at the park o Have had as many as 20 teams express o Games are run almost completely by interest, and will host at least 12 volunteers o Very challenging with one field § Have held tournaments in the past, but it is often difficult for visiting teams to find § Used a gymnasium this past year for indoor accommodations in the summer training after the closure of the Tilton Sports Center § The Muskrats also have a 28+ men’s league – § More fields could allow them to expand their they want to continue to expand the brand to both youth and adult teams existing tournament and add new events 42 Stakeholder Feedback

Lakes Region Flag Football Lakes Region United Soccer § Fall and spring seasons, 250 kids ages 4 – 15 § U10 – U18 youth soccer with between 200 and § Adult league in the spring and summer with 250 unique participants 150 participants § Play home games at Bryant Field in Belmont § The league uses Inter-Lakes High School in § Used to train inside at Tilton Sports Center for Meredith and Laconia High School $70 per hour for the field § Three fields are created sideways from a full- § There would be opportunity for games and length field tournaments with just one more outdoor turf § Growth has slowed down a bit, but the league field could expand with more space § Additionally, there is a need for indoor training with the closure of Tilton § There is interest in a winter league if space were available § They would prefer any new development to be community-focused and not price out local groups

43 Stakeholder Feedback

Lakes Region Juniors Volleyball Laconia Pickleball § U15 – U18 youth volleyball wit between 90 § Indoor pickleball plays year-round at the and 120 girls community center § Season runs from November to May § The two courts are used Monday through Thursday mornings while sports are out of the § Practices are typically held on Sundays due to limited gym time. They would extend to gymnasium include weekday practices as well § Players pay $2 per drop-in at the Community § Currently using Inter-Lake High School in Center Meredith, NH § Outdoor pickleball is offered at Leavitt Park § They host five tournaments each year at § Pickleball would primarily drive weekday use, Plymouth State, but would move some of but would struggle to generate any major these events to a new facility in Laconia weekend tournaments or events in Laconia § There are roughly 5-6 large clubs in New Hampshire that are looking for a new facility to host their tournaments 44 Stakeholder Feedback

Cap City Basketball § Cap City basketball has 40 teams spread between Hampton, Concord and Manchester § They use gym space year round for practices and camps § Many of their players are from the Lakes Region and they would hold practices at a potential facility § Cap City hosts nine camps that occur essentially every week during the summer § They are currently not hosting tournaments but that is a goal for the near future § Around $40 per hour per court is a reasonable rate

45 Chapter 5: Regional Sports Facilities Analysis

46 Regional Outdoor Athletic Supply

The regional facilities shown below have at least 4 multi-purpose fields or 6 diamonds.

Regional Outdoor Sports Supply

Multipurpose

Diamonds

Tennis Distance from Track Venue Location Laconia Other Global Premier Soccer Bedford, NH 49.6 4 ------Seacoast United Outdoor Complex Epping, NH 50.5 4 ------Indoor training field Roger's Field Ft. Devans, MA 80.4 11 ------Wainright Sports Complex South Portland, ME 85.1 8 7 -- -- Massachusetts Youth Soccer Lancaster, MA 87.3 10 ------5 large turf fields, additional grass fields of varying size Green Mountain Challenge Soccer Tournament Weston, VT 93.6 10 ------Grass fields can vary in size and number NMH Lower Soccer Fields Gill, MA 104 6 ------Capital Area Sports Complex Augusta, ME 135 4 6 -- --

Source: Various Sources

47 Regional Outdoor Athletic Supply Map

As the figure to the right demonstrates, there is a lack of sports facilities northwest of Laconia. The closest competitive facilities are roughly 50 miles away and are primarily located to the south.

48 Global Premier Soccer

Location: Bedford, New Hampshire Notes: § Two large outdoor fields, divisible into 4 fields § Multiple, large light fixtures for night games § Hosts youth and adult soccer leagues, lacrosse, football, field hockey, rugby, ultimate frisbee and corporate events. Key attributes: Home to numerous organized and established sports clubs, GPS Complex also offers NH College Forum Information for players and parents to ask questions relating to college selection.

49 Seacoast United Sports Complex Location: Epping, NH Notes: § Founded in 1992 § 33,750 square feet § On-site parking § 4 multi-purpose fields for all-weather: Soccer, Field Hockey, Baseball, Softball § Offers indoor and outdoor fields. § Three of the four fields have lights for night games. Key attributes: This facility is the main headquarters for all Seacoast United (NH) soccer tournaments. The state-of- the-art complex is a relatively short distance from multiple population centers like Manchester and the coastal cities.

50 Wainwright Sports Complex Location: South Portland, ME Owner: City of South Portland of Maine Operator: City of South Portland Notes: § 66 acres of developed athletic fields which include baseball, softball, boys and girls lacrosse, soccer, hurling and football. § 8 multipurpose fields § 7 diamonds Key attributes: Spacious and open fields, baseball and softball diamonds organized in close proximity adjacent to long, parallel open grass plots used for soccer and other outdoor sports. No artificial turf.

51 Regional Indoor Athletic Supply

The closest multi-court facility is located in Derry, over 50 miles away. A handful of ice facilities exist within 60 miles. New England Sports Center in Marlborough is one of the largest facilities and offers 10 sheets of ice.

52 Regional Indoor Athletic Supply Map

The majority of competitive indoor facilities are located to the south of Laconia towards and beyond Boston.

53 Fieldhouse Sports

Location: Bow, New Hampshire Owner: privately owned and operated Notes: § 3 pro-size indoor turf soccer fields § 1 multi-sport rubber playing surface The rubberized surface can be used for futsal, volleyball and basketball. There is a store that offers concessions and sports equipment. Leagues and skills clinics are run year-round.

54 SportsZone

Location: Derry, New Hampshire Owner: privately owned and operated Notes: § 95,000 square feet § 3 floating wood multi-sport courts § 2 indoor hockey-rink-sized turf fields § Space can also be used for trade shows § 40-foot climbing wall & batting cages § Restaurant on-site Takeaway: Amenity-filled multi-use facility located ten miles southeast of Manchester which thrives due to a full calendar of adult and youth sports, and home to several youth sports camps. Near hotels & restaurants.

55 Hampshire Dome Location: Milford, New Hampshire Owner: Privately owned and operated by Hampshire Hills Notes: § 309 foot by 180 foot field, divisible into three fields § 94,000 square feet, 80 feet high peak § Numerous leagues including 4 x 4 futsal, soccer, lacrosse, golf driving range, flag football and 1/5 mile track The facility has also been rented out for private events and shows including the New Hampshire Democratic Convention, the Great Northeast Boat Show and the New England Food Show among others.

56 Maine Sports Arena

Location: Saco, Maine Owner: privately owned and operated Notes: § 26,000 square feet and two mezzanines § 5 volleyball courts § 3 basketball arenas § Meeting rooms, reception area, and meeting planner on-site Takeaway: Good for volleyball tournaments, but are not full size basketball courts. Seating is tight.

57 The RIM Sports Complex Location: Hampton, New Hampshire Owner: privately owned and operated Notes: § 36,000 square feet § Five basketball and volleyball courts § 12,000 weekly users Attributes: home to respected basketball, volleyball programs and tournaments, it also includes camps, after-school programs, adult and youth leagues. Users live in the Seacoast NH, southern Maine, south- central New Hampshire, and far northeast Massachusetts.

58 New England Sports Center Location: Marlborough, MA Owner/Operator: H. Larue Renfroe / New England Sports Management Notes: § 8 full-size ice rinks § 2 small-scale practice rinks § 220,000 square feet § Home of 2 junior hockey teams, 5 high school teams, and figure/synchronized teams § Two restaurants on-site Attributes: Located 25 miles directly west of downtown Boston on I-495, this is the largest ice rink facility in New England, with a hockey pro shop, 65 locker rooms, and a 1,800-seat arena. It was completed in 59 stages from 1994 - 2016. Chapter 6: Sports Tournaments and Opportunity Analysis

60 Stakeholder Feedback

Legacy Global Sports § Legacy Global Sports is based out of Portsmouth, NH and primarily runs events for Soccer, Lacrosse, Football and Basketball § Would highly recommend focusing on an indoor space to meet the needs of winter sports and training opportunities for other sports § For court sports, four to six courts would be ideal o Six courts would allow for a 72 team bracket in three days for a basketball tournament o Four to six courts is typically a straight rental fee of between $4,000 and $8,000 for the weekend § Legacy sports has established boys basketball, and are working to bring girls tournaments to the region beginning in 2020

61 Stakeholder Feedback

Legacy Global Sports continued § If indoor turf were to be developed, they typically look for two football fields to host showcases, camps and academies for soccer, football, rugby and lacrosse § While lacrosse is growing in the region, it has not risen to the same level of need of other sports § Legacy Global Sports typically looks for at least three sheets of ice for regional hockey events, which could be a challenge with the site and potential development costs § Laconia would be a good location for indoor events and accessibility should not be too much of a challenge § Lack of branded hotels should not be a major issue. The resort-style hotels present a different process to the tournament organizers, but work just as well for tournament-goers

62 Stakeholder Feedback

USA Volleyball § The New England region of USA Volleyball has about 12,000 members § There are nine convention center events throughout the year and five one-day events at 75 different locations throughout the region § The season extends from December - May § Tournaments can accommodate roughly eight teams per court § USA Volleyball has held tournaments at Plymouth State University in the past § Boston, Providence and Hartford will continue attract the largest tournaments due to their population bases and reasonable hotel pricing § USA Volleyball brings events to facilities that give up their courts for free – there is a tradeoff for the room nights and economic impact § It would be a safer bet for Laconia to focus on a more localized facility with 4 courts (8 volleyball) that could attract smaller tournaments

63 Stakeholder Feedback

Premier Travel Media USA Football – East Region § This organization publishes an annual guide § Host national development camps showcasing new facilities to governing bodies o 4 hours Saturday, 4 hours Sunday and rights holders o 300 - 400 kids, open to the public § They are familiar with all new sports o Use at least two fields developments and trends across the country o Primarily host these camps in large § Compared the situation in Laconia to Yakima, markets Washington § The NFL Flag program ranges from youth o Surrounded by larger markets such as through high school ages Spokane, Seattle, Portland § Football participation is declining overall, but o Focus on regional and family tournaments flag football is increasing rapidly. There is opportunity in Laconia for a flag football league, but regional camps are unlikely to occur in a small market

64 Stakeholder Feedback

National Collegiate Table Tennis Association USA Team Handball § The National Championship is the group’s § USA Team Handball sanctions 80 events per main annual event. The event utilizes 40 tables year. These are typically club-operated and attracts 250 to 300 athletes from weekend tournaments that attract 4 to 8 teams Wednesday through Sunday. The event needs § USA Team Handball organizes the Open Club 40,000 to 50,000 square feet of space, as well Championships, which attracts 35 teams over as meeting rooms for officials and event 3.5 days. Past years have been held in Reno organizers (NV), York (PA), Myrtle Beach (SC) § Past events have been held in Texas, § High School and College age groups are Wisconsin, and Illinois. Athletes and coaches growing. They trying to develop the sport grow tired of the same venues year after year before the Olympics in 2028 § The event generates approximately 450 room § A traditional basketball surface works well for nights over four days events, but additional banquet rooms and storage is typically required

65 Stakeholder Feedback

US Youth Soccer – East Region USA Wrestling § The East Region of US Youth Soccer includes § Events roughly every weekend from March the entire northeast and extends down to through May Virginia § Events involve all ages and primarily occur at § Major cup events in 2019 are scheduled to the Broken Ground School in Concord, NH occur in Charleston, WV and New Castle, DE § These regional cups events require upwards of 14 fields

66 Stakeholder Feedback

Other Opportunities Every community is looking for their “silver bullet” as it relates to hosting events and driving sports tourism. As detailed in the management analysis, owning and booking venues is hard work, especially due to the competition in the current environment. Esports, for instance, certainly presents opportunity, but with a few exceptional game and competitions, they are not driving significant traffic to a destination (sports tourism) and, as a local draw, present challenges since the real money is being made by the brands who push online viewing. Other trending non-traditional sports that may present opportunity at an indoor facility include: § Badminton, Fencing § Futsal, Team Handball, Weightlifting § Gymnastics – Need local gym operator who wants to be a promoter § Martial Arts (all disciplines)

67 The adjacent table highlights upcoming youth basketball Northeast Region Basketball tournaments in the Northeast Region. An average of four Tournaments courts are needed for the tournaments shown. New England Region Volleyball Association (NERVA) has several one day events throughout the spring. These one day New England Region events average just under five courts. Volleyball Association New England Region Volleyball Association also sanctions several multi-day events but these can range from 18 to 97 courts spread across large convention centers and multiple facilities. Tournament Implications

§ Tournament analysis and feedback from several events rightsholders indicates that a potential facility in Laconia could accommodate several indoor events throughout the year § Basketball and volleyball events are occurring throughout the region in facilities with between four and six courts, which is what would be recommended for Laconia § Tournament organizers suggested that an indoor sports facility would have a great impact on the market and is in higher demand § Groups such as Legacy Global Sports, who are based in the New Hampshire, believe that Laconia could attract additional events and lure existing events to a new facility with four to six courts

70 Chapter 7: Case Studies

71 UW Health Sports Factory

Location: Rockford, IL Opened: 2016 Owner: City of Rockford Operator: Rockford Park District § 96,000 square feet § 8 basketball courts (16 volleyball courts) § Seating for up to 3,700 spectators § Five meeting rooms § Events plaza, restaurant/bar, riverfront boardwalk UW Health Sports Factory

The UW Health Sports Factory in Rockford, IL is a converted former warehouse facility. Built in 2015, the facility cost $24.4 million, including land acquisition. The project was paid for by the City of Rockford and the Rockford Park District through a series of grants and a 2 percentage-point increase in the Winnebago County hotel tax. The City of Rockford sold the naming rights to UW Health for $1.9 million in 2016, with base of $175,000 per year for ten years. The venue was designed to be a destination for weekend tournaments, while also accommodating local needs during the week. The facility is hosting approximately 30 to 40 weekend events annually.

73 UW Health Sports UW Health Sports Facility 2016 2017 YTD 2018 (October) Factory Revenue Fees $155,961 $405,112 $371,670 Other $172,299 $188,912 $159,816 Total Revenue $328,260 $594,024 $531,486 The adjacent table details the operational performance of Expense the UW Health Sports Factory Personnel $315,288 $467,429 $376,706 in Rockford. Personnel Benefits $117,408 $159,676 $133,497 expenses account for nearly Supplies $88,750 $78,834 $56,713 half of all expenses at the Services $163,939 $259,712 $226,336 facility, followed by services Transfers ($7,400) ($20,000) ($16,670) and supplies. Net operating Total Expense $677,985 $945,651 $776,582 losses have ranged from Net ($349,725) ($351,627) ($245,096) $245,000 to $350,000 over the *Personnel and Benefits include direct seasonal Police support, 50% of consumer service, and 80% D. facility’s first three years of Potter. Benefits include health, life and retirement benefits operations. Source: City of Rockford Myrtle Beach Sports Center

Location: Myrtle Beach, SC Opened: 2015 Owner: City of Myrtle Beach Operator: Sports Facilities Advisory/Sports Facilities Management (SFA/SFM) § 8 regulation basketball courts § 16 volleyball courts § Seating for 1,500 (portable bleachers) § Seven team rooms § Private mezzanine for elevated viewing § Café for indoor/outdoor dining

75 Myrtle Beach Sports Center

Opened in 2015, the $13.8 million 100,000-square foot Myrtle Beach Sports Center was developed by the City of Myrtle Beach to drive tourism to the area during the beach’s offseason. In addition to sports, the venue is designed to host conventions, trade shows, and other flat floor events. The facility is managed by Sports Facilities Advisors/Sports Facilities Management (SFA/SFM), one of the premier third party operation companies in the country.

76 Myrtle Beach Sports Center

Myrtle Beach Sports Center Events 2015 - 2016 2016 - 2017 2017 - 2018 The adjacent table details the historic events by type for the Basketball Tournaments 48 36 40 Myrtle Beach Sports Center Volleyball Tournaments 9 13 12 since opening in 2015. As Cheer Events 3 5 6 shown, utilization is dominated Gymnastics Events 4 8 4 by basketball tournaments, Other Tourism Events 7 9 8 followed by volleyball Total Events Per Year 71 71 70 tournaments and other tourism Source: SFM events. The facility has averaged approximately 71 events per year since 2015. Myrtle Beach Sports Center Total Revenue & Expenses 2015 - 2016 2016 - 2017 2017 - 2018 Revenue Basketball Tournaments (Rental and Facility Fees) $335,682 $330,939 $340,217 Volleyball Tournaments (Rental and Facility Fees) $74,741 $107,992 $96,630 Cheer Events (Rental and Facility Fees) $33,976 $52,887 $67,900 Gymnastics Events (Rental and Facility Fees) $24,543 $67,370 $32,100 Myrtle Beach Sports Other Tourism Events (Rental and Facility Fees) $66,462 $35,162 $7,000 Local Events (Rental) $31,339 $24,352 $45,000 Center Local Rentals (Basketball & Volleyball Court Rental) $56,168 $58,017 $58,900 Food & Beverage $104,982 $321,477 $359,964 Parking $119,099 $128,942 $137,347 Hotel Rebates $31,714 $14,448 -- Sponsorship $225,045 $234,585 $250,000 Other Miscellaneous Income $3,801 $12,235 $16,000 Recovered Expenses $34,705 $85,010 $91,000 The adjacent table details the Total Revenue $1,142,257 $1,473,416 $1,502,058 Expenses financial operating Basketball Tournaments (Rental and Facility Fees) $27,280 $13,598 $12,805 Volleyball Tournaments (Rental and Facility Fees) $3,959 $4,332 $3,449 performance of the Myrtle Cheer Events (Rental and Facility Fees) $1,439 $2,608 $3,055 Beach Sports Center since Gymnastics Events (Rental and Facility Fees) $959 2803 $1,035 Other Tourism Events (Rental and Facility Fees) $4,764 $1,939 $490 opening in 2015. As shown, Local Events (Rental) $1,439 $1,019 $2,269 Local Rentals (Basketball & Volleyball Court Rental) -- $136 $589 the complex lost $94,000 in Food & Beverage $500 $109,942 $115,188 Parking -- $450 $481 Year 1 before breaking even in Hotel Rebates ------Sponsorship $81,017 $60,251 $75,000 Year 2. Other Miscellaneous Income ------Recovered Expenses $38,414 $78,747 $81,900 Revenue is driven primarily by Payroll $486,506 $593,470 $570,782 Total Cost of Goods Sold $646,277 $869,295 $867,043 facility rentals, followed by Gross Margin $495,980 $604,121 $635,015 % of Revenue 43% 41% 42% food and beverage (gross) and Operating Expense $92,007 $53,018 $53,000 Facility Expense $285,243 $276,658 $276,000 sponsorship revenue. Management Fee Plus Incentives $180,075 $190,768 $163,000 Payroll Taxes/Benefits $33,162 $23,448 $24,000 Total Operating Expenses $590,487 $543,892 $516,000 Net Income ($94,507) $60,229 $119,015

Source: SFM Myrtle Beach Sports Center Payroll Summary Budget 2018-2019 Year 2 General Manager $81,600 $83,232 Operation Director $56,100 $57,222 Myrtle Beach Sports Marketing & Business Development Director $51,000 $52,020 Facility Manager $35,700 $36,414 Center Office Manager $35,700 $36,414 Subtotal Management Payroll $260,100 $265,302 In-House Basketball Tourn. Director $5,400 $5,940 In-House Volleyball Tourn. Director $6,000 $15,840 In-House Cheer & Dance Event Director $2,450 $19,795 The adjacent table details the Subtotal Sports Directors $13,850 $41,575 In-House Basketball Tourn. Staff $2,458 $2,598 budgeted payroll summary for In-House Volleyball Tourn. Staff $4,066 $10,858 2018-2019 at the Myrtle Beach In-House Cheer & Dance Tourn. Staff $1,225 $9,898 Food & Beverage Staff $87,420 $126,285 Sports Center. As shown, the Retail Staff $6,764 $8,966 complex employs five full-time Climbing Staff $5,073 $6,725 staff members and a variety of Subtotal Sport Admin Staff $99,258 $141,976 In-House Basketball Tourn. Officials $17,280 $17,280 part-time employees for In-House Volleyball Tourn. Officials $12,800 $40,960 tournaments, food and In-House Cheer & Dance Event Judges $2,500 $15,750 Subtotal Officials & Judges $32,580 $73,990 beverage, and other staffing Payroll Subtotal $405,788 $522,843 requirements. The facility Health Insurance $30,900 $31,827 anticipates a total staffing Management Bonus Pool $24,916 $39,720 Payroll Services $2,472 $2,546 expense, including benefits, of Payroll Taxes $37,321 $44,885 $641,000 in 2018. Payroll Taxes/Benefits/Bonus Totals $95,609 $118,979 Total Payroll $501,396 $641,822

Source: SFM Grand Park

Location: Westfield, IN Owner/Operator: City of Westfield/Various Organizations Notable users: Indiana Soccer Association, Indianapolis Colts, Indiana Fire Juniors, Indiana Bulls, Indy Eleven Pros: Tournament-quality facilities, large local programs operate facilities, mix of turf and grass fields, well- maintained Cons: Amenities proximity to fields, limited shaded areas, multiple events happen each weekend Additional Info: § 400 acres § Opened in 2011 § Includes: 31 multipurpose fields, 26 baseball diamonds, 8 basketball courts or 16 volleyball courts, 3 indoor multipurpose fields 80 Grand Park

§ Grand Park is 100% owned by the City of § Fields are the biggest revenue producers, Westfield: partially because of the condition they are kept in o Different structures are in place for the operations of baseball, soccer, basketball, § There are currently no plans to add any etc. amenities, however, they have thought about play structures or shade structures o They would advise against splitting responsibilities among parties for § They do not count hours, but they will allow 7 maintenance (irrigation, upkeep, etc.) to 10 days on grass fields before major events § A championship field is a luxury item: § The facility uses a dynamic pricing model, with discounted rates for tenants o Use it roughly 10 times per year § There are about 4,000 paved parking spots at o Need to look for title sponsor for the first the complex. This works year-round with the five years exception of a couple big weekends § Locker rooms are used sporadically. If you § They currently own two events and are have them people will use them, but they can growing to six. They would encourage event find another way ownership 81 Chapter 8: Support Amenities – Hotel & Restaurant Analysis

82 Laconia Area Hotels Hotel Distance Rooms Chain Scale Open Date Lake Opechee Inn & Spa 1.7 34 Upscale Jun-05 Barton's Motel 2.3 41 Economy Mar-38 The Margate Resort 2.4 141 Upper Midscale Jun-52 Laconia Area Hotels The Landmark Inn 2.4 104 Economy Jun-72 Birch Knoll Motel 3.1 24 Economy Jun-60 TownePlace Suites Laconia Gilford 3.2 75 Upper Midscale May-09 Naswa Resort 3.6 82 Upper Midscale Jun-35 Grand View Motel & Cottages 3.9 22 Midscale n/a The Cozy Inn Lakeview House 4 34 Midscale n/a Half Moon Motel & Cottage 4 35 Midscale Jun-57 Weirs Beach Motel & Cottages 4.1 21 Midscale n/a Over 1,400 rooms are offered The Lord Hampshire 4.4 33 Midscale Jun-46 within 10 miles of the site. The Misty Harbor & Barefoot Beach Resort 4.6 93 Upper Midscale Jun-87 Travelodge Tilton Lake Winnisquam 4.7 30 Economy Jun-96 majority of the lodging Silver Sands Motel 4.7 29 Economy Jun-55 offerings are independent. Fireside Inn & Suites Lake Winnipesaukee 5 83 Upper Upscale Jun-84 Anchorage On Lake Winnisquam 5 30 Economy Jan-50 Econo Lodge Inn & Suites Tilton 5.2 40 Economy Jun-60 Belknap Point Motel 6.2 16 Midscale Jun-60 The Gunstock Inn & Resort 6.4 25 Midscale Jun-71 Church Landing @ Mills Falls 6.8 58 Upscale May-04 Chase House @ Mill Falls 7 23 Upscale May-85 Mill Falls at the Lake 7 54 Upscale Jun-84 The Inn @ Bay Point 7.1 24 Upscale Jun-86 Hampton Inn Tilton 7.3 92 Upper Midscale Jun-08 Super 8 Tilton Lake Winnipesaukee 8 60 Economy Jul-89 Holiday Inn Express & Suites Tilton Lakes Region 8 68 Upper Midscale Oct-08 Ames Farm Inn 8.1 42 Midscale n/a Total/Average -- 1,413 -- Jun-75

Source: Smith Travel Research Laconia Area Tournament Hotels

Not all hotels in the area are suitable to host teams visiting for tournaments. The adjacent list cuts the number of rooms down to less than 1,000 by cutting out economy properties and hotels with very few rooms as teams will want to stay in one block. Laconia Area Hotels (Within 10 Miles)

The adjacent map shows Laconia area hotels within 10 miles of the site. Laconia Local Hotels

The adjacent map shows the local hotels within roughly 3 miles of the site. Laconia NH Restaurant Supply Restaurant Name Address Type Quality Soda Shoppe 30 Beacon St E Breakfast, Lunch & Dinner Casual Dining Laconia Village Bakery 660 Main St Breakfast & Lunch Casual Dining Hectors Fine Food & Spirits 53 Beacon St Lunch & Dinner Casual Dining Karma Café and Art 72 Church St Breakfast & Lunch Casual Dining Water Street Cafe 141 Water St Breakfast, Lunch & Dinner Casual Dining Tavern 27 2075 Parade Rd Lunch & Dinner Casual Dining Laconia Restaurant Faro Italian Grille 70 Endicott St N Dinner Casual Dining Blue Bistro 1086 Weirs Blvd Breakfast, Lunch & Dinner Casual Dining NazBar and Grill 1086 Weirs Blvd Lunch & Dinner Casual Dining Supply The Steak House 644 Weirs Blvd Dinner Casual Dining Myrna's Classic Cuisine 131 Lake St Dinner Casual Dining China Bistro 89 Lake St Lunch & Dinner Casual Dining The Union Dinner 1331 Union Ave Breakfast, Lunch & Dinner Casual Dining T-BONES Great American Eatery 1182 Union Ave Lunch & Dinner Casual Dining Friendly's 1160 Union Ave Breakfast, Lunch & Dinner Casual Dining Lakeside Famous Roast Beef 1091 Union Ave Lunch & Dinner Casual Dining CJ Avery's 10 Railroad Ave Dinner Casual Dining Fratello's Laconia 799 Union Ave Lunch & Dinner Casual Dining The adjacent list shows the 405 Pub Grill 405 Union Ave Lunch & Dinner Casual Dining Lanna Thai 363 Union Ave Lunch & Dinner Casual Dining supply of restaurants in Sal's Pizza Laconia 360 Union Ave Lunch & Dinner Casual Dining Brick Front Restaurant-Lounge 134 Church St Lunch & Dinner Casual Dining downtown Laconia. A plethora Shang Hai 331 Main St Lunch & Dinner Casual Dining South End Pizza & Seafood 302 S Main St Lunch & Dinner Casual Dining of casual dining and fast casual Wayfarer Coffee Roasters 626 Main St Breakfast, Lunch & Dinner Fast Casual Burrito Me 9 Veterans Square Lunch & Dinner Fast Casual North Country Deli & Pizza 821 N Main St Breakfast, Lunch & Dinner Fast Casual options are attractive for El Jimador 36 Endicot St E Lunch & Dinner Fast Casual Jon's Roast Beef & Deli 1367 Union Ave Lunch & Dinner Fast Casual tournament goers. Faro Express Casual Italian 1127 Union Ave Lunch & Dinner Fast Casual Dairy Queen 1126 Union Ave Lunch & Dinner Fast Casual Dunkin' 1106 Union Ave Breakfast, Lunch & Dinner Fast Casual D'Angelo Grilled Sandwiches 1056 Union Ave Lunch & Dinner Fast Casual Lakes Region Cupcakes 1002 Union Ave Lunch & Dinner Fast Casual Aroma Joe's Coffee 644 Union Ave Breakfast, Lunch & Dinner Fast Casual Laconia House of Pizza 334 Union Ave Lunch & Dinner Fast Casual Goody Good Donuts 235 Union Ave Dinner Fast Casual Annie's Cafe & Catering 138 Gilford Ave Breakfast & Lunch Fast Casual Dunkin' 369 S Main St Breakfast, Lunch & Dinner Fast Casual My Coffee House 92 Court St Breakfast & Lunch Fast Casual Cafe Dejavu 311 Court St Breakfast & Lunch Fast Casual Taco Bell 1315 Union Ave Breakfast, Lunch & Dinner Fast Food McDonald's 1231 Union Ave Breakfast, Lunch & Dinner Fast Food Domino's Pizza 585 Union Ave Lunch & Dinner Fast Food Happy Cow Ice Cream Shop 385 Union Ave Lunch & Dinner Fast Food Laconia Local Eatery 21 Veterans Square Dinner Fine Dinning

Source: Hunden Strategic Partners Laconia Restaurant Map

The adjacent map shows that the site is located a short drive away from the restaurant nodes in Laconia. Laconia Area Hotels Hotel Distance Rooms Chain Scale Open Date TownePlace Suites Laconia Gilford 3.2 75 Upper Mid May-09 Hampton Inn Tilton 7.3 92 Upper Mid Jun-08 Holiday Inn Express & Suites Tilton Lakes Region 8 68 Upper Mid Oct-08 Comfort Inn Ashland 12.5 41 Upper Mid Jun-86 Fairfield Inn & Suites Plymouth 18.8 85 Upper Mid Aug-16 Total/Average -- 361 -- Nov-05

Source: Smith Travel Research

The adjacent tables shows the Laconia competitive hotel set. Laconia Competitive Hotel Due to the majority of hotels being independently owned, the Set competitive set is made up of five branded hotels within 20 miles of the site. The competitive set performance indicates that room nights sold and occupancy have fluctuated slightly over the last six years. However, rooms sold have increased by a compound annual growth rate of 8.3% Competitive Hotel during this period Performance ADR had shown a positive change from 2013 to 2017, before a slight decrease in 2018. This equates to a CAGR of 4.0% for ADR and 6.1% for RevPAR through 2018. This is an indicator of a growing hotel market Supply & Demand

The trend lines show supply growth in 2016, aligning with the Fairfield Inn & Suites entering the market. Demand peaks during the summer months, but has smaller spikes in the spring and fall. Room Revenue Change

Points above the x-axis in the adjacent chart represent year- over-year room revenue growth, while points below the line means room revenue decay. Revenue Per Available Room

The trend line shows that RevPAR, which is the product of occupancy and rate, has recorded an increase of roughly $20 since 2013. Seasonality – Occupancy & ADR

The summer months are the strongest in the Laconia area, with average occupancy around 80 percent in July and August. Rate mirrors occupancy (shown in the table below), demonstrating that local hotel options are appropriately compressing rates when demand is highest. Day of Week – Occupancy & ADR

The adjacent figures show the day of week performance of the competitive hotel set from May 2018 through April 2019. High rates during the weekends suggest a strong presence of leisure travelers and lower weekday/corporate usage. Heat Charts

The adjacent heat charts summarize the day of week performance of the hotel market over the last calendar year. Weekend occupancy is strong from June through October. ADR is strongest on Friday and Saturday from June through October, surpassing $200 in July. It would be hard to bring tournaments to the area on weekends from June through October. Chapter 9: Site Analysis

97 Site Analysis

Lakeshore Redevelopment Planning Commission The purpose of the Commission is to identify and study potential redevelopment concepts for the 200+- acre State-owned Lakes Region Facility. The site has been selected by the Governor of New Hampshire to participate in a Federal economic redevelopment program.

The current condition of the site is shown on the following slide.

98 99 Site Analysis

Geographic Context Sitting atop and along the slopes of an approximately 250 foot tall hill rising from the shores of Winnisquam Lake and Opechee Bay, the 200+ acre site, formerly the New Hampshire Lakes Region Facility (NH LRF) lies 2.5 miles north of downtown Laconia. The Lakes Region Facility site is bordered on the southwest by the forested, 128-acre Ahern State Park, State Route 106 to the east, and the Robbie Mills Center, one of the City’s recreational sports resources. Of note is that 5.2 acres on the northern edge of the State Facility have been used historically for overflow parking for the Robbie Mills Center during larger seasonal tournaments. To the east of the site, the Opechee Bay Tract of 48 acres is an agricultural preserve featuring publicly usable gardens and cleared land for growing of hay. This designation should forever preserve views to Opechee Bay from the State Facility. Visitor amenities in the region consist of numerous beaches, resorts and recreational destinations along the west side of Lake Winnipesaukee. Weirs Beach and boardwalk, Mt. Washington Cruises, Funspot and other year round family recreational sites are within a 10 minute drive. Laconia Municipal Airport is located 5 miles from the State Facility with two Fixed Base Operators (FBOs) offering refueling, maintenance and scenic flights. 100 Site Analysis

Site Access The NH LRF site has two vehicular access points today: one on the south at State Route 106 and another on the north from Eastman Road. Right Way Path is a paved road that runs the north-south length of the site on the alignment of Old North Main Street which connected downtown Laconia to Meredith Center before the construction of Route 106 and Meredith Center Road. The unpaved Ahern State Park Road is accessed from Right Way Path. While the Lakes Region Facility is not on a state primary snowmobile trail, it is located within a mile of Primary Trail 303 and within 3 miles of New Hampshire Corridor Trail 9 which runs through downtown Laconia. Two posted local trails run through the State School Property. One trail runs parallel and north of State Route 106 from Meredith Center Road to Ahern State Park. The other trail runs from Ahern State Park through the northwest corner of the State School Property to the intersection of Eastman Road and Meredith Center Road, where it continues onward towards State Primary Trail 303. Several marked and mapped hiking trails extend from Ahern State Park into the State School Property and the property is frequently used by nearby residents for a variety of passive recreational uses such as mountain biking, running, and dog walking. Future trails have been proposed to extend to the LRF site including the Winnipesaukee Opechee and Winnisquam (WOW) Trail that is expected to include the existing road system on the site to connect Ahern State Park with Opechee Lake and the Robbie Mills Sports Complex. The proposed trail is intended to be a paved, ten foot wide multi-use path and a protected street crossing at Route 106 and Old North Main Street. 101 Site Analysis

Existing Landscape The 200+ acre site sits on a ridge between Winnisquam Lake and Opechee Bay. The site rises approximately 150 feet from a low point along State Route 106 and a high point approximately 725 feet above sea level at the northern end of the site where existing water tanks are located. Slopes on the site are generally mild (less than 5%) except the western edges of the site adjacent to Ahern State Park, where slopes approach 15%. However, the site has sufficient slopes nearly everywhere such that extensive grading would be required for any use dependent on a large, flat surface. The lands of the former school buildings and fields have been cleared for decades, while the remaining areas are densely forested with mixed age timber of white pine, oak and birch, typical species for formerly agricultural land or logged forests. Soil types consist of fine sandy loams appropriate for agriculture and other areas with steeper slopes and stones not suitable for agriculture. Generally, areas that are currently open and mowed are the more suited for this use. There are no known wetlands or streams on the site. Given the proximity to the lakes, water quality is of prime concern to regulating bodies and advocates. Thus, soil disturbance, increases in impervious surfaces, or removal of forest cover will require on-site mitigation in the form of retention areas or active storage to reduce flows and protect water quality.

102 The above figures show the footprint of a potential 4-court facility in two separate locations on the site. The RIM Sports Site Analysis Complex is used as a reference footprint. Chapter 10: Conclusions

104 Headlines

§ A handful of indoor and outdoor sports complexes exist in New Hampshire and throughout New England. Laconia’s population base, lack of branded hotel rooms, and proximity to larger markets will make it difficult to attract large regional tournaments. § The hotel market in Laconia and surrounding cities is performing fairly well with solid rates and occupancies over 60 percent. Hotel performance is driven by strong summer months due to leisure activities in the region. The gaps in hotel performance occur during the shoulder seasons and winter months. The gap suggests that an indoor sports complex could have positive impact on hotel performance during the shoulder seasons and winter months. § Locally, the lack of available, quality indoor athletic facilities presents a major challenge for area clubs in both indoor and outdoor sports, to train and practice during the season and throughout the offseason. § HSP’s analysis indicates that opportunity exists for a new sports complex to both accommodate local demand and drive sports tourism to the site. § While sports facilities are impactful, they often do not break even operationally, necessitating the investment upfront and ongoing support of outside forces. Most of the spending that occurs from a facility generally happens in lodging, restaurants, attractions and retail. Attracting private capital to such facilities is difficult, even if they are busy and impactful. 105 Headlines

§ HSP’s analysis suggests that there is enough demand generated by Laconia area organizations to fill a new court/gymnasium facility in the evenings throughout the winter season. This demand would drive significant rental revenue to any new indoor complex. The development of a flexible indoor court complex would likely also result in the creation of new local and regional events. § Based on the comprehensive market analysis, HSP recommends that a 4-court indoor facility be developed. The facility would offer 4 regulation basketball courts which can be converted to 8 volleyball courts. Such a facility could accommodate weekly use for flat-floor sports, as well as smaller regional weekend events. While such a facility would be able to accommodate other flat-floor activities such as pickleball, wrestling, robotics, and Esports, the primary benefit would be to Laconia area sports organizations. § While there is also demand for outdoor fields to accommodate soccer, lacrosse and other field sports, this demand may not be enough to generate a fiscal return on investment due to issues with an uneven site (more expensive to develop) and already occupied hotel rooms with high rates in the summer months. The sloped site will greatly influence the cost and viability of outdoor facilities that will take up more land than an indoor facility. § While there is a demand for ice and indoor turf fields, the cost to develop such a facility is much greater and offers less flexibility for various sports which limits potential impact. Additionally, there is an adequate supply of ice and indoor turf within a 60 mile radius. 106 Recommended Program

The adjacent table summarizes the recommended program for the indoor court facility. Chapter 11: Partnerships and Funding

108 Realities of Private Facility Development

While there have been indoor and outdoor facilities developed privately, the financial realities of the business make it difficult to sustain a private business model. Typically, someone who is connected in the business and passionate about specific sports undertakes these developments at great personal cost/risk. Often they go bankrupt or are sold for much less than developed, as the net cash flows do not support the upfront development cost/debt load.

Other factors at play: § The location of the facility is near the developer's house. Finding a private developer to care as much as you do about this facility in this place and work days/nights to make it work can be difficult. This is why HSP often looks for existing local talent in terms of groups or people who can manage the facility and attract tournaments § Most privately-developed facilities are smaller (2-4 courts), with lower quality of equipment & amenities § They are not able to host large tournaments due to size § They often cannot keep up with needed renovations due to cash flow § There is often very little room for seating or spectators 109 Governance Options

The following pages show examples of how other youth sports tournament facilities are operated, including: § Third-party private management o Company o Individual Contractor/Contracted Position § Authority owned and managed § Anchor tenant-operated (Sport Association) § Parks & Recreation Department § Public-Private Partnership

110 Private Management - Pros

Private management companies operate approximately 18% of all small civic sports and entertainment venues. § Third party management companies have the advantage of strength in numbers in terms of their access to talent in their network, relationships with vendors, sponsors and others § Access to a network of venues means more leverage and more events. Third-party management tends to have networks of national and regional event promoters, planners and other facility users for bringing in new events § Some third-party management companies provide capital investment, especially if the contract is for a long term § Competition drives improvements as several primary management companies compete for contracts. § Third party management can handle management issues such as discipline, pay, human resources and others and can hire/fire to meet the mission of the enterprise § Management companies generally know how to maximize revenue and minimize expenses without negatively impacting the quality of service. They also have the ability and experience to appropriately staff the facility which can save issues and expenses that are the result of overstaffing and understaffing 111 Private Management - Pros

§ Third party management can maintain continuity in the case of turnover because other equally experienced parties can be brought in to assist with operations § Third party management is a way to separate an organization from the tough decisions that need to be made § Third-party managers are experienced in negotiating food and beverage contracts, advertising and sponsorship deals and other related deals for the facility § Performance-based compensation is often standard. This means that the third-party management company will be aggressive and comprehensive in their sales and marketing programming

112 Private Management - Cons

§ The client can feel like they are losing control of their processes and day-to-day management § Learning curve can be an issue for someone new to the area § Third-party managers can sometimes use smaller venues as a “training ground” for their own staff and have a revolving door of staff that they move in and out of facilities § Management fees can be high and the professional manager may concentrate only on their own bottom line without necessarily considering the larger community as a whole § Private management companies do charge fees above and beyond the cost of their general manager. The management fee is typically a flat amount with a bonus that can be achieved by meeting certain goals annually. These deal points are critical to the success of the facility and should be reviewed carefully as deal negotiation is key. Ultimately, the efficiency, customer service, and financial results produced via the management company should more than make up for their fee § The management fee for private companies is relative to the size of the facility, but at minimum for a facility like Laconia’s, would be $75,000+ per year. Most youth sports facilities with private management pay them $125k -$175k per year on top of normal staffing and other expenses

113 Private Management Round Rock Sports Center Example: SFA/SFM

Based in Florida, Sports Facilities Advisory/Sports Facility Management (SFA/SFM) helps to open and manage youth and Rocky Top Sports World amateur sports facilities throughout the U.S. SFA has experience in several comparable facilities throughout the country, with a specialty focus on “court sports.” Some of these top facilities include Round Rock Sports Center (Round Rock, TX), Rocky Top Myrtle Beach Sports Center Sports World (Gatlinburg, TN) and Myrtle Beach Sports Center (Myrtle Beach, SC), among others. Private Management (SFA/SFM)

§ Nationwide marketing reach is one of the key § Have relationships with major sponsors across selling points professional sports § Open and willing to work with local partners – § Value add: not a lot of clarity on what that would look like o Typically hire a general manager with § Convention Center model – charge between outside experience to relocate $100k - $300k per year o All other employees are hired within the o Typically work with a large number of local community courts/fields § Detailed marketing strategies: o Room night generation is the key o Digital assets o Grass roots o Social media o Digital presence o Grand opening marketing 115 Authority Model

§ The authority model combines the best elements of public and private ownership and management § The model is often used for major public venues like convention centers, arenas, youth sports complexes and others § A public, non-profit authority is set up to take ownership of the asset § Appointees to the authority board come from mayor and council, typically 3 each, plus one member appointed by the local tourism entity. This can vary depending on the situation § The Authority has a revenue stream to fund operations at the facility they are charged with. Typically a portion of the hotel or meals tax § The Authority hired a general manager OR a management company to run the facility. In Laconia’s case, an experienced individual should be hired to manage the facility and attract tournaments, and can hire part-time staff as need to assist in running the facility § The Authority can have an arrangement to provide maintenance services inside and outside the facility for a nominal charge

116 Anchor-Operated Model

§ The anchor-operated model combines the best elements of private management and a built-in user and tournament organizer § The model is used when there is a local or area sports organization, such as a basketball or volleyball league, that has a strong track record financially and organizationally, and can manage the facility on behalf of the client or an authority. § The sports anchor may pay a lease or may have a free lease, so long as they take responsibility for all revenue and expenses at the facility and keep the client’s financial operating loss risk to zero. § Lease terms would need to ensure that the anchor tenant allowed for other teams and organizations to rent and use the facility. § The focus should be on maximizing usage, revenue and tournament activity. § This model has worked at Grand Park in Westfield, Indiana

117 Example: Grand Park (Westfield, IN)

§ 100% owned by the city – anchor tenants are the managers and pay a lease take care of expenses o Indiana Soccer Association leases and manages the multi-purpose fields o Indiana Bulls Baseball leases and manages the diamonds o Anchor tenants receive majority of rental revenue, city shares in other revenue streams § The City receives 100% of parking, a portion of apparel, hotel rebates § Encourages event ownership

118 Parks and Recreation

Pros: Cons: § Community focus § Controlled and bound by government rules, bureaucracy § Programming for local population (classes, camps, etc.) § Not as nimble or flexible to demands, needs § Controlled by government and opportunities of fast-moving enterprise § § Able to use government resources to do Not focused on revenue maximization, things that may not be affordable to private expense minimization operators § Can be influenced by politics and local government § Salary and benefit costs are much higher than private sector employment or contract § Overall results expected to be less robust

119 Implications/Recommendations

§ The authority/public non-profit model is recommended with hired management. It can be simply a public non-profit § Appointees to the board come from mayor and council, typically 3 each, plus one member appointed by the local tourism entity. This can vary depending on the situation § The entity should have a dedicated revenue stream to fund operations at the facility for the first 3-5 years while it is ramping up § The entity should hire a experienced general manager to manage the facility and attract tournaments, who can then hire part-time staff as need to assist in running the facility for concessions and other items. The cost of any additional talent would be expected to be paid for by onsite revenues from concessions, advertising, parking, rent and others § The Authority should likely have an arrangement with the client to provide maintenance services inside and outside the facility for a nominal charge, as the operation will run on a very tight budget

120 Process

In order to create the most successful facility possible, there are several key tasks that must be undertaken in the management of the facility. The client should be able to answer the following strategic questions prior to beginning the process: § What is our goal or mission? What does success look like? § What can we expect to do financially? § What will our impact be? § How will our facility meet or exceed all of these goals and expectations? Only once these answers are clear and a firm strategic plan is created that includes everything from the facility design and operations to personnel to marketing and so on, can the client actually begin to determine the timeline for the facility and begin to execute on the bigger plan. The job isn’t done there. The client must also understand what performance measures will support or feed back into the goals and expectations of the facility and the timeline should have created a solid plan that will include specific key performance indicators and measurements.

121 Chapter 12: Demand and Financial Projections

122 The projection model for the scenario assumes that the Laconia sports facility will primarily cater to basketball, volleyball, and indoor flat floor sports (wrestling, dance, etc.). These event projections include various sized tournaments that are Events assumed to rent the entire facility for multiple days over a weekend, as well as smaller single day events. Projections also include midweek court rental hours for practice, training, and leagues at the facility. Overall, HSP projects the indoor complex to host 63 events and more than 2,700 additional rental hours per year by stabilization (Year 5). Based on the number of average days per event (shown in the first column), the adjacent table shows the number of event days projected for the facility. By stabilization, HSP projects that the sports facility will generate 104 event days per Event Days year, not including hourly rentals. Family and friends accompany most of the participants. Tour naments are assumed to bring between one and 1.6 spectators per participant. Trends show that the younger the participant, the more family and friends accompany the participant to Attendance the event. By stabilization, HSP projects more than 77,000 total attendees at the facility driven by events. Financial Projections

As shown, there are hourly and daily rental fees. Rates (other than hourly rentals) are calculated on a per-day basis. In order to project total rental revenue, the rental rates are multiplied by the number of event days for each event type, assuming three percent annual inflation. By Year 5, HSP projects over $340,000 in rental revenue at the facility. Financial Projections

The model assumes events will pay daily, hourly or facility rental fees to use the facility, based on fees charged at comparable facilities. This model assumes a $5 gate fee per car for weekends tournaments. As shown, rental fees are projected to be the largest revenue source, increasing to roughly $370,000 by Year 10. Financial Projections

While the staffing assumptions for these facilities is highly dependent on the managerial structure for the venue, most comparable competitive indoor sports complexes employ between five and seven full- time employees, plus part-time event staff. Full-time staff is projected to cost $254,000 plus benefit costs of approximately 33 percent of salaries. Part-time staff is expected to cost an additional $65,520. Financial Projections

These projections are based on per day, per cap spending assumptions for event attendees (shown in the first column). It is assumed that 40 percent of concession revenue accrues to the facility. Chapter 13: Economic, Fiscal, and Employment Impact Analysis

130 As shown, there are projected to be more than 13,700 room nights generated by Room Nights the stabilized year. Most are assumed to be generated by regional basketball and volleyball tournaments. If the project were located in a suburban market, the room night generation would be lower. However, given the location in a getaway market, a smaller facility can leverage more impact, per court. Visitation

Roughly 42,000 visitor days are expected by the stabilized year. HSP only counts net new spending captured in the community, not recycled spending by local users or impact outside of Laconia. This adjacent table also considers the percentage of total room nights captured in Laconia, which is dictated by both occupancy, rate, and the seasonality of of the hotel market. While HSP projects the complex to generate over 32,613 room nights per year, HSP anticipates that only 15,964 will be captured in Laconia hotels. Spending on lodging is the largest component of direct new spending in Laconia, followed by food and beverage, transportation, and other local spending. Impact Over 20 years, the recommended facility is projected to generate more than $130 million in direct net new spending within the community. The next table shows the direct, indirect, and induced spending from the Project based on the IMPLAN multipliers. The direct spending totals $130 million over the 20-year period (as shown in the Impact prior table), while the indirect and induced spending add another $43 million and $46 million, respectively. In total, $220 million in economic impact is projected from new and recaptured spending. The adjacent table shows the new earnings associated with the new economic activity. Earnings are the portion of new spending that ends up as wages for employees in businesses in the local community. Impact By the fifth year of operations, more than $2.7 million of direct, indirect, and induced earnings are projected, with a total of more than $60 million over the 20- year period. The adjacent table shows the estimated full-time equivalent jobs created by the Project. These new positions will be supported throughout the economy, not just in visitor-related jobs, although these will be most likely. New full-time equivalent jobs (FTE’s) are projected to vary over the period based Impact on the net new spending and total 186 by the fifth year. The fiscal impact of the Project is the benefit to the community via taxes generated. The following table shows the projections of new taxes over the first 20 years of operation. Impact In total, local taxes are projected to generate more than $202,000 by Year 5, and total more than $1.5 million over the first 20 years. Impact

The one-time construction of the project will impact Laconia as spending will occur via the purchase of materials (40 percent of the budget) and the payment of labor and service providers (60 percent of the budget). It is assumed that the total investment will be approximately $10 million for the sports facility. Materials spending locally is estimated to total $3.8 million in direct, indirect, and induced spending. The direct labor spending is approximately $3.6 million and would support 25 job-years (one construction job for one year). Impact

The table to the right shows a summary of estimated combined 20- year impacts for the recommended complex. The net new spending for the Project totals $221 million over the 20-year period, $64 million in new earnings, 186 new full-time equivalent jobs, and more than $1.5 million in new taxes collected from the ongoing spending over 20 years. The construction impact will be more than $7 million on materials and labor, most of which will accrue to the local economy and local workers. The 25 job-years will be a temporary boom for the local economy. Hunden Strategic Partners is a full service real estate development advisory practice specializing in destination assets. With professionals in Chicago, San Diego, and Minneapolis, HSP provides a variety of services for all stages of destination development in: Real Estate Market & Financial Feasibility and Development Consulting; Economic, Fiscal & Employment Impact Analysis (Cost/Benefit); Organization Development; Public Incentive Analysis; Economic and Tourism Policy/Legislation Consulting; Research & Statistical Analysis; and Developer Solicitation & Selection, Private Management Company Solicitation & Selection.

For further information about Hunden Strategic Partners, please contact:

Hunden Strategic Partners 213 W. Institute Place, Suite 707 Chicago, Illinois 60610 312.643.2500 www.hundenpartners.com