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2020 Spectator Venues and Visitors Activities Program Annual Report

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2020 Spectator Venues and Visitors Activities Program Annual Report MISSION STATEMENT Contribute to Portland’s economic and cultural vitality by developing and managing first class spectator and performing arts facilities and by supporting a robust travel and ANNUAL tourism industry in the city, 2019-2020 region, and state. REPORT City of Portland Spectator Venues and Visitor Activities Program Program and Fund Overview Housed in the City of Portland Office of Management and Finance, the Spectator Venues and Visitor Activities Program oversees City-owned spectator and performing arts facilities and supports City travel, tourism and visitor development efforts. Program responsibilities include venue operations management, maintenance, capital improvements; financial planning; liaison duties; contract administration; debt service; and special projects for popular City destinations. Venue Portfolio CITY-OWNED VENUE CAPACITY OPERATOR Keller Auditorium 3,000 Seats Portland’5 Metro Visitor Venue Program Arlene Schnitzer Concert Hall 2,800 Seats Portland’5 Metro Visitor Venue Program Antoinette Hatfield Hall 1,400 Seats Portland’5 Metro Visitor Venue Program Veterans Memorial Coliseum (VMC) 12,000 Seats Rip City Management Rose Quarter Parking: 1,000 Spaces Rip City East and West Garages and Benton Lot Management Rose Quarter Commons Programmable Rip City Public Space Management Providence Park Stadium 25,000 Seats Peregrine Sports Revenues and Economic Facilities Expenses Impact Providence Providence Park Stadium Major Projects Built by the Multnomah Athletic Primary Revenue Sources Portland event Completed—In June 2019, the Portland Park Club in 1926 and acquired by the venues play significant Timbers opened an approximately $75 million hosted City in 1966 as a multi-purpose roles in local privately funded stadium expansion, which Ticket User Fees 47% stadium, Providence Park is home raised the maximum capacity from 21,144 to 1 ticket taxes economic activity. 42 to the Major League Soccer 25,218. The expansion also added three new ✔ Population Base soccer matches Portland Timbers and National levels. As part of the agreement for the private Women’s Soccer League Portland expansion investment into the public stadium Parking Fees 20% ✔ Location Accessibility Thorns. facility, no revenue will be generated to the 2 Spectator Fund from stadium events. ✔ Hotel Supply This historic stadium has also hosted a variety of events beyond Underway—In spring and summer 2020, the HOTEL make Portland a competitive soccer, including concerts, youth Visitor Facilities 19% and served City worked with a consultant team of architects host for events across camps and business events. On and engineers to complete the ADA refinement Agreement the country. annual allocation from Visitor average, the Stadium hosts 150 plan for Providence Park. The plan analyzed 3 552,045 Providence Park is events per year. Facilities Trust Account (dedicated widely regarded 120 barriers that required calculated solutions tourism funds from transient lodging patrons to meet ADA compliance standards as well as taxes and vehicle rental fees) as one of the best soccer-specific cost estimates for each solution. The Spectator stadiums in the U.S. Venues Program will work with the operators to Other 14% incorporate these solutions into future projects 4 e.g., rents, interest, etc. wherever possible. P’5 Venues Generated Generated P’5 Portland’5 Center for the Arts Major Projects Fund Performance hosted The Portland’5 Centers for the Underway—The Acoustical Enhancement Arts operates five theaters in Project at the Arlene Schnitzer Concert Hall will $20,000,000 790 three separate City-owned dramatically improve sound quality. Funded by $82.4 jobs 648 $18,000,000 million events buildings in downtown Portland: public and private funding and donations, this $16,000,000 the Arlene Schnitzer Concert project will be completed by Fall 2021. Directly Hall, Keller Auditorium and aligning with the City’s equity goals, all seats $14,000,000 Antoinette Hatfield Hall, which will experience high-quality sound regardless of $12,000,000 houses the Brunish, Newmark and ticket price or seat location. Winningstad theatres. $10,000,000 Underway—The Marquee Enhancement $8,000,000 and served Portland’5 brings over 1,000 Project at the Arlene Schnitzer Concert Hall music, theater, dance and lecture will greatly improve the Marquee’s appearance in visitor spending $6,000,000 performances to Portland annually. and functionality with new digital technologies. during the 2018- 672,246 Portland’5 is the fifth $4,000,000 patrons The five venues draw over one Funded by Prosper Portland, the project will 2019 fiscal year largest performing million patrons to downtown $2,000,000 be completed in early 2021. The project will arts center in the Portland’s Cultural District and eliminate the time-consuming and hazardous 0 United States and is generate an average of $60 million process of manually changing lettering and 2015- 2016- 2017- 2018- 2019- Projected home to more than 2016 2017 2018 2019 2020 2020-2021 in total spending every year. allow Portland’5 to welcome multiple events and 20 arts organizations. audiences in a single day. Revenue Expenses Ending Fund Balance VMC In 2019-2020 Generated Supported Veterans Memorial Coliseum VMC Major Projects The VMC is a historic multi- In 2020, the last original chiller hosted Completed— $30 300-400 purpose arena in the Rose unit was replaced. Work also began to rebuild million jobs Quarter Campus. The VMC the four original attic units that provide cool 93 serves as the primary home for air to the arena bowl. 77% events the Western Hockey League Portland Winterhawks and was Underway—In fall 2019, conceptual design the original home of the Trail and scoping began with an architectural and Blazers. engineering team for a major renovation at the VMC. Project timing is not set but would For the past 60 years, the of program revenue ideally take place over the next several years. VMC has hosted a wide range and served Acknowledging the City’s displacement of in economic impact of events and played a vital communities of color to build the VMC, design each year role in Portland’s history and and scoping will reflect the City’s commitment was driven by Rose Quarter events community life. 246,163 to racial and economic justice. Providence Park Stadium is exempt The VMC is also a monetary driver for the patrons from paying user fees until 2022 as part region. Based on an economic impact study, The VMC was the of the agreement between City and for every $1 in direct spending, original home of the Operators to construct 2019 expansion. $1.82 is generated in economic activity. Portland Trail Blazers. Accessibility Travel and Tourism The Spectator Venues Program works closely As the City’s liaison to the sports, with the Office of Equity and Human Rights to During travel, and tourism industry, the track and report on ADA compliance efforts. COVID-19 Spectator Venues Program works Many venues require extensive ADA up- closely with travel and tourism grades which will require additional funding organizations to promote local sources to address. industry and attract events to Portland. In addition, program staff are involved In addition to ADA accessibility efforts, The VMC facilities host numerous community-oriented hosted in policies and projects surrounding events at reduced costs. local transient lodging taxes, which ✔ Several are a major contributor to the City’s Additionally, equity principles are a priority: General Fund and have been used 60% of professional services consultant community blood to support investments at some of contracts were awarded to Oregon certified the City’s venues. COBID (Office for Business Inclusion and donation Diversity) firms. drives During the 2019-2020 ✔ Served fiscal year, the City, Multnomah The Program as a site for County, and Metro successfully Eliminated Upgraded executed an amendment to the donated Visitor Facilities Intergovernmental meal Agreement that will, among other 486 facilities assembly things, provide much-needed barriers for families transient lodging tax funding for in need. future capital investments at the Veterans Memorial Coliseum and the Portland’5 venues. to include compliant Program Partners: hand railings, TRAVEL accessible stairs, and enhanced signage Program Challenges Near Term Long Term • The biggest challenge of the 2019-2020 fiscal year was the • Increasing costs from aging facilities outbreak of the global COVID-19 pandemic and resulting will significantly impact the Fund’s Projecting venue closures. Projected revenues to the Spectator Venues future health. The costs of needed a steady recovery Fund are down over 80% from the 2018-2019 fiscal year. renovations at venues over the next moving into • Emergency funding from the City, State and Metro has decade will far exceed projected resources of the Spectator Venues 2022-2023 allowed Portland’5 to keep operating at a minimum level as reserves during the extended closure. Fund. are expected • Additional funding for major capital • Depending on the pace of economic recovery post- to begin COVID-19 and the public’s willingness to return to events, projects will be necessary and will require widespread material and replenishing the the Spectator Venues Fund may end up with negative political support. net cash flows by the end of the 2021-2022 fiscal year. • The original 1990s Rose Quarter agreements reach the end of their terms within the next 3-5 years and will need to be renegotiated. This will require the City to renegotiate The program the VMC Operating Agreement as well as the Arena is relying on Ground Lease, which requires that the Portland Trail Blazers reserves to play at the Moda Center. meet Rose • Early discussions with the operators around the Veterans Quarter, Memorial Coliseum Operating Agreement are anticipated Stadium and to begin in the 2021-2022 fiscal year. administrative • Significant public and private investments will need to obligations in be made on the Rose Quarter Campus (includes both 2020-2021. City-owned facilities as well as the privately owned Moda Center, garages and annex office building) to meet current and future facility demands and extend the agreements beyond 2025.
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