Beverly R. Cameron, City Manager 715 Princess Anne Street Fredericksburg, Virginia (540) 372-1010 [email protected]

Beverly R. Cameron, City Manager 715 Princess Anne Street Fredericksburg, Virginia (540) 372-1010 Brcameron@Fredericksburgva.Gov

Beverly R. Cameron City of Fredericksburg City Manager P.O. Box 7447 Fredericksburg, VA 22404-7447 Telephone: 540 372-1010 Fax: 540 372-1201

FOR IMMEDIATE RELEASE

Contact: Beverly R. Cameron, City Manager 715 Princess Anne Street Fredericksburg, Virginia (540) 372-1010 [email protected]

June 13, 2013

FREDERICKSBURG CITY COUNCIL SCHEDULES JULY 9, 2013 PUBLIC HEARING ON PROPOSED MULTI-PURPOSE MINOR LEAGUE BASEBALL STADIUM IN CELEBRATE VIRGINIA SOUTH

The Fredericksburg City Council will hear public comment on a proposed multi-purpose baseball stadium in Celebrate Virginia South at its regular meeting on Tuesday, July 9, 2013, 7:30 p.m. in Council Chambers, 715 Princess Anne Street. The City Council wishes to gauge public support for the project, which involves the construction of a multi-purpose Minor League Baseball stadium at an estimated public cost of $30M. The stadium is proposed to be financed through a special tax district which would tax property within Central Park and Celebrate Virginia South at an estimated rate of $0.32/$100 of assessed value. The Hagerstown Suns, the Class A South Atlantic League affiliate of the Washington Nationals, are interested in relocating to Fredericksburg.

After considering public comment, the Council will decide whether or not to refer proposed Comprehensive Plan and Capital Improvement Plan amendments to the Planning Commission for public hearing and recommendation. Upon receipt of the Planning Commission’s recommendations, the City Council would hold a second public hearing before making a decision whether to amend the City’s Comprehensive Plan and Capital Improvements Plan. The amendment process would take an estimated 90 days.

City Manager Beverly Cameron said, “This is the first step in the process, and the first opportunity for public comment. The critical question at this stage is whether the public supports the overall project structure as proposed, including the public investment in the stadium and the special service district. If there is public support for the project, then the Council will enter into a detailed negotiations phase, including the negotiation of stadium lease terms and the acquisition of an option to purchase a stadium site. Council would also study specific aspects of the proposed public financing for the project. At the conclusion of the detailed negotiations, the City Council would return for a second round of public hearings as a condition to final project approval. So the July 9 public hearing is an opportunity for the Council to test public support for the concept, and for the public to communicate its input at this early stage.” Press Release on Minor League Baseball Stadium June 13, 2013 Page 2 of 2

The proposed 4,750 seat stadium would be the home of a Minor League Baseball team and potentially the site of 25 to 35 non-baseball events throughout the year. The stadium would be leased to the team for year-round operation. A specific site for the stadium has not been identified.

The Comprehensive Plan is the City’s strategic plan for future public and private development. Compliance with the Comprehensive Plan is mandatory for new public facilities, including public stadiums. Chapter 9 of the Comprehensive Plan currently envisions projects such as the construction of the Dixon Park Community Center on Dixon Street, and the development of Fire Station #3 in Celebrate Virginia South. Chapters 3 and 4 of the Comprehensive Plan call for the development of the Riverfront Park downtown. These projects are planned to be financed through the City’s General Fund borrowing capacity.

The Capital Improvements Plan is the City’s cost and financing estimate for large-scale public facilities, equipment and infrastructure, such as streets, bridges, sidewalks, ambulance units and fire trucks, schools, water and wastewater infrastructure, and parks. The CIP provides City residents with an overview of anticipated “big ticket” capital expenditures and assists the City in planning for those expenses. The CIP provides a financial plan for implementing the new public facilities envisioned in the Comprehensive Plan.

Both the Comprehensive Plan and the Capital Improvements Plan are available on the City’s website, www.fredericksburgva.gov.

The Fredericksburg Economic Development Authority commissioned Brailsford & Dunlavey to perform a Multi-Use Stadium Market Analysis (available on the EDA’s website http://www.fredericksburgva.com/uploadedFiles/Main_City_Content/Doing_Business/Files/Mult i-Use Stadium Market Analysis Report - May 2013.pdf) which concluded that the Fredericksburg market “has an exceptionally strong demographic profile for minor league baseball given its ideal household wealth, spending, and size characteristics.” The Market Analysis projected stabilized attendance levels of 4,100 to 4,600 for minor league baseball games at the stadium, and between 25 and 35 non-game revenue-generating events per year.

Attachments: • Project Road Maps for Phases 1, 2 and 3 • “Fredericksburg Ballpark Preliminary Facilities Program,” dated February 26, 2013 • Map of proposed special service district • Brailsford & Dunlavey Market Analysis, May 9, 2013 • Brailsford & Dunlavey Financial Analysis, May 28, 2013, Exhibit 6, “City Revenues and Expenses Summary,” and Exhibit 7, “Funding”

### August September July 9 Planning Commission City Council Public Hearing to Public Hearing on Public Hearing and Gauge Public Support Comp Plan and CIP Adoption of Amendments Amendments

OptionOption to to Land Acquisition Site Identification Due Diligence PurchasePurchase

Public Financing Finance Consult with Advisors Structure

Draft Team Negotiations Consult with Advisors Stadium Lease

Version 1 – 2013.06.07 City Council Public Hearings Substantial Completion of City Council And Phase 2 negotiations 30-45 days for public hearing Second Readings advertisements First Readings

Create Recreation Authority Ordinance Creating Authority

Establish Special Service District Ordinance Establishing Special Service District

Authorize Debt Ordinance Authorizing Debt

Approve Land Acquisition (Resolution)

Approve Stadium Lease Ordinance Approving Stadium Lease

Version 1 – 2013.06.11

Fredericksburg Ballpark Fredericksburg, Virginia

PRELIMINARY FACILITIES PROGRAM HKS Project 15293.000

February 26, 2013

HKS Inc. Sports and Entertainment Group

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Table of Contents

Stadium Facility

1. Venue Seating Bowl Fixed Bowl Seating Berm Seating Picnic Area(s)/Decks Private Suites Premier Indoor Club Seating Club Lounge Party Decks Arcade Playing Field

2. Team and Multipurpose Facilities Home Clubhouse Vestibule Home Team Player’s Lounge Home Team Locker Rooms Home Team Shower/Toilets Home Team Training/Hydrotherapy Room Home Manager/Coaches Locker Room/Meeting Space Home Manager/Coaches Shower/Toilets Home Equipment Room Home Laundry Room Visiting Team Locker Rooms Visiting Team Shower/Toilets Visiting Team Training/Hydrotherapy Room Visiting Manager/Coaches Locker Room Visiting Manager/Coaches Shower/Toilets Umpires' Locker Room Umpires' Shower/Toilet Hitting/Pitching Cages Dugouts Dugout Toilets Bullpens

3. Patron Amenities and Support Concession Stands Suite Level Concession/Kitchen-Pantry Public Toilets Family Toilets Suite/Party Deck Toilets Club Toilets Team Store Ticket Windows Ticket Sales Management Offices Guest Services First Aid Naming Rights Sponsor’s Space Hall of Fame/Border Olympics

4. Stadium Administration Reception Conference Room Executive Offices Open Office Space Mail/Copy/Work Room Staff Break Room IT Server Storage

5. Media/ Electronic Systems Writing Press Media Workroom TV Broadcasting Booth Radio Broadcasting Booths Media AV Room Media Storage Camera Platform(s) Scoreboard Operator/Video/PA Booth

6. Circulation Main Concourse Suite Level Corridor Entry Plaza VIP Main Concourse Entry Lobby Passenger Elevators Service Elevator Elevator Machine Rooms Stairs Ramp

7. Food Service Commissary Kitchen Commissary Storage Vendor Depot/Commissary

8. Venue Operations Field Equipment Storage/Stadium Maintenance Stadium Storage Receiving Dock and Service Entrance Grounds Keeper Office Grounds Crew Locker Room/Break room Maintenance Yard/Equipment Wash-Off Area Trash Area Custodial Closets

9. Mechanical and Electrical Main Electrical Room Electrical Distribution Rooms Telecommunication Rooms Fire Sprinkler Service Room Generator/Transformer Yard Mechanical Rooms

10. Miscellaneous Consolidated Parking Kids Zone Graphics and Advertising Signage Marquee Sign

Compilation

1. Venue Seating Bowl 195,865 SF 2. Team and Multipurpose Facilities 18,490 SF 3. Patron Amenities and Support 11,870 SF 4. Stadium Administration 3,190 SF 5. Media/Electronic Systems 1,110 SF 6. Circulation 42,600 SF 7. Food Service 2,860 SF 8. Venue Operations 10,050 SF 9. Mechanical and Electrical 2,860 SF 10. Miscellaneous NA

TOTAL 292,805 SF

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VENUE SEATING BOWL

FIXED BOWL SEATING (4,750 SEATS, INCL. 20” SEATS) 16,250 SF DUGOUT SEATING – EXTENDED FROM TEAM DUGOUTS EA SIDE

BERM SEATING (1,000 PATRONS) 10,000 SF

PICNIC AREA(S)/DECKS (2 @ 200 PATRONS) 4,500 SF

PRIVATE SUITES (10 @ 12 PATRONS EA, 22” SEATS) 2,640 SF

CLUB LOUNGE (150 PATRONS, 21” SEATS) 1,375 SF W/ EXTERIOR SEATING / TABLE AREAS

PARTY DECK (125 PATRONS) 2,100 SF

ARCADE – COVERED AREA / BAND STAGE 12,000 SF

PLAYING FIELD 147,000 SF

195,865 SF

OVERALL VENUE CAPACITY – 5,001 SEATS

TEAM AND MULTIPURPOSE FACILITIES

HOME CLUB VESTIBULE 90 SF

HOME TEAM PLAYER’S LOUNGE 260 SF

HOME TEAM LOCKER ROOMS 940 SF

HOME TEAM SHOWER/TOILETS 630 SF

HOME TEAM TRAINING/HYDOTHERAPY ROOM 600 SF

HOME MANAGER/COACHES OFFICE/LOCKER ROOM/MEETING SPACE 450 SF

HOME MANAGER/COACHES SHOWER/TOILETS 250 SF

HOME EQUIPMENT ROOM 280 SF

HOME LAUNDRY ROOM 360 SF

VISITING TEAM LOCKER ROOM 800 SF

VISITING TEAM SHOWER/TOILETS 560 SF

VISITING TEAM TRAINING/HYDROTHERAPY ROOM 360 SF

VISITING MANAGER/COACHES OFFICE/LOCKER ROOM 360 SF

VISITING MANAGER/COACHES SHOWER/TOILETS 225 SF

UMPIRES’ LOCKER ROOM 150 SF

UMPIRES’ SHOWER/TOILET 200 SF

HITTING/PITCHING CAGES 3,800 SF

DUGOUTS 3,180 SF

DUGOUT TOILETS – ACCESSIBLE TO TEAM AND DUGOUT SEATING 195 SF

BULLPENS – VISIBLE TO FANS 4,800 SF

18,490 SF

PATRON AMENITIES AND SUPPORT

CONCESSION STANDS 3,480 SF

SUITE LEVEL CONCESSION/KITCHEN-PANTRY 500 SF

PUBLIC TOILETS 3,915 SF

FAMILY TOILETS 240 SF

SUITE/PARTY DECK TOILETS 550 SF

CLUB TOILETS 575 SF

TEAM STORE 1,350 SF

TICKET WINDOWS 620 SF

TICKET SALES MANAGEMENT OFFICE 130 SF

GUEST SERVICES 150 SF

FIRST AID 220 SF

NAMING RIGHTS SPONSOR’S SPACE 140 SF

HALL OF FAME – WALL BY BATTING N/A

11,870 SF

STADIUM ADMINISTRATION

RECEPTION 270 SF

CONFERENCE ROOM (20 PEOPLE) & PRESS ROOM 290 SF

EXECUTIVE OFFICES (5) 470 SF

OPEN OFFICE SPACE (15) 1,450 SF

MAIL/COPY/WORK ROOM 160 SF

STAFF BREAK ROOM 180 SF

IT SERVER 250 SF

STORAGE 100 SF

3,190 SF

MEDIA/ELECTRONIC SYSTEMS

WRITING PRESS 160 SF

MEDIA WORKROOM 180 SF

TV BROADCASTING BOOTH 90 SF

RADIO BROADCASTING BOOTHS 270 SF

MEDIA AV ROOM 160 SF

MEDIA STORAGE 110 SF

CAMERA PLATFORMS TBD

SCOREBOARD OPERATOR/VIDEO/PA BOOTH 140 SF

1,110 SF

CIRCULATION

MAIN CONCOURSE 35,000 SF

SUITE LEVEL CORRIDOR 1,500 SF

SUITE LEVEL VIP LOBBY 880 SF

MAIN ENTRY PLAZA 3,400 SF

VIP MAIN CONCOURSE ENTRY LOBBY 320 SF

PASSENGER/SERVICE ELEVATOR 160 SF

ELEVATOR MACHINE ROOM 80 SF

STAIRS 1,260 SF

RAMPS TBD

42,600 SF

FOOD SERVICE

COMMISSARY KITCHEN 1,300 SF

COMMISSARY STORAGE 1,360 SF

VENDOR DEPOT (2 POS) 200 SF

2,860 SF

VENUE OPERATIONS

FIELD EQUIPMENT STORAGE/MAINTENANCE SHOP 1,700 SF

STADIUM STORAGE 770 SF

RECEIVING DOCK AND SERVICE ENTRANCE 1,800 SF

GROUNDS KEEPER OFFICE 120 SF

GROUNDS CREW CHECKIN 140 SF

MAINTENANCE YARD/EQUIPMENT WASH-OFF AREA 4,500 SF

TRASH AREA 530 SF

CUSTODIAL CLOSETS 490 SF

10,050 SF

MECHANICAL AND ELECTRICAL

MAIN ELECTRICAL ROOM 250 SF

ELECTRICAL DISTRIBUTION ROOMS 660 SF

TELECOMMUNICATION ROOMS 290 SF

FIRE SPRINKLER SERVICE ROOM 100 SF

GENERATOR/TRANSFORMER YARD 460 SF

MECHANICAL ROOMS 1,100 SF

2,860 SF

MISCELLANEOUS

CONSOLIDATED PARKING TBD

KIDS ZONE TBD

GRAPHICS AND WAYFINDING TBD

MARQUEE SIGN TBD

POOL TBD

FREDERICKSBURG

BALLPARK 2/25/2013 2

1 press box 19 ticketing 1 2 vertical circulation 20 team store PRESS 37 03 LEVEL 3 suites - 21 entry plaza 2 (10) 12 patrons 22 vip entrance 4 club - 150 seats 23 commissary 5 party deck - (2) 200 patrons 24 kitchen

6 seating bowl - 25 loading docks 5 4,500 seats 26 kid’s zone 7 dugout 3 27 pool 8 bullpen 28 maintenance 2 9 double sided video board 29 field maint. access

10 batter’s eye 30 vip parking 4 3 5 SUITE/CLUB 11 berm seating 31 general parking 02 LEVEL 2 12 pitching / hitting 32 player parking tunnels 33 site access 13 team opps building 34 dog park 14 autograph alley 35 video wall boards 15 concessions 36 double sided video 27 8 16 toilets marquee 29

17 stage stadium signage 35 37 10 28 18 arcade 26 11

35 25 9

CONCOURSE LEVEL 34 23 8 15 01 / SITE PLAN 24 7 16

30 22 15 2 6 7 12 13 18

16 14 19 15 15 17 2 36 18 21 32 20 33

31 33

MULTI-USE STADIUM MARKET ANALYSIS REPORT PREPARED FOR: FREDERICKSBURG EDA

MAY 9, 2013

MULTI-USE STADIUM MARKET ANALYSIS

INTRODUCTION

In April 2013, the Fredericksburg Economic Development Authority (EDA) retained Brailsford & Dunlavey (B&D) to conduct a market analysis (Study) for a proposed multi-use stadium in the City of Fredericksburg, Virginia (Project). To support this effort, B&D completed a scope of work that included a market analysis and the development of market-specific revenue assumptions. The pages that follow summarize the findings of the Study.

EXECUTIVE SUMMARY

The Fredericksburg market has over 385,000 people within a 30-minute drive of the intersection of I-95 and Route 3. In comparison to seven comparable markets, the market has an exceptionally strong demographic profile for minor league baseball given its ideal household wealth, spending, and size characteristics. First-year paid attendance levels are projected to be between 5,100 and 5,700 patrons with attendance levels between 4,100 and 4,600 when stabilized in year five of operation. Projected gate receipts range from $3.5 to $3.9 million in year one to between $2.8 and $3.1 million in year 5. The facility is expected to host between 25 and 35 outside revenue-generating events per year, in addition to numerous community events. All revenue assumptions are summarized at the conclusion of the document.

MARKET DEMAND

Methodology

B&D assessed the Fredericksburg market and its ability to support a minor league team and ballpark. A market analysis was completed utilizing 30-minute drive times to evaluate the Fredericksburg market with comparable Class A Midwest League (MWL) and South Atlantic League (SAL) markets. The comparisons included only markets with FREDERICKSBURG similar population characteristics to Fredericksburg and new ballparks completed since 2000. Ballparks completed since this date are focused on providing “affordable family entertainment”, which has led to elevated attendance levels. Attendance differences between new and old parks are summarized in Exhibit 2. EXHIBIT 1: 30-MINUTE DRIVE TIME MAP

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Per Game Average by Year 2008 2009 2010 2011 2012 Average

Completed SAL 4,812 4,505 4,407 4,197 4,198 4,423 Since 2000 MWL 4,725 4,850 4,619 4,354 4,298 4,569 Completed SAL 2,462 2,401 2,451 2,435 2,309 2,411 Prior to 2000 MWL 3,350 3,324 3,347 3,219 3,234 3,295

EXHIBIT 2: BALLPARK ATTENDANCE COMPARISON

Local Market Demographics

The local market has nearly 400,000 people within a 30-minute drive time. This area is expected to grow faster than the projected national average of .9%. Median age, which ranges from 34.9 to 35.9 across the drive time areas, is a positive indicator of attendance at minor league baseball parks due to the focus on providing affordable family entertainment. Each of the drive time markets possesses extremely strong household wealth levels and discretionary spending characteristics compared to national levels.

15 Minutes 30 Minutes 45 Minutes United States

Population (2012) 180,698 386,766 846,284 - Annual Growth Rate (2012 - 2017) 1.5% 1.9% 2.8% 0.9% Households 62,990 130,992 285,903 - Median Age 34.635.135.936.5 Median Household Income $78,835 $83,726 $91,153 $53,132 Median EBI [1] $62,779 $66,457 $72,516 $44,749 Headquarter Businesses 11 13 68 -

Source: SitesUSA [1] Disposable income after tax obligations EXHIBIT 3: FREDERICKSBURG LOCAL MARKET DEMOGRAPHICS

Comparable Market Analysis

B&D’s market analysis compared Fredericksburg with select MWL and SAL markets with similar populations and newer ballparks. Fourteen national markets have newer stadiums, but only seven had comparable populations. These markets include Lexington, KY; Ft. Wayne, IN; Peoria, IL; Midland, MI; Cedar Rapids, IA; Rome, GA; and Charleston, WV. Populations for the fourteen markets are shown below with the selected comparable markets represented by a black bar.

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30-Minute Market Populations

Lake County Captains Lakewood Blue Claws Dayton Dragons Greensboro Grasshoppers Greenville Drive Lexington Legends Fort Wayne Tin Caps Fredericksburg Peoria Chiefs Great Lakes Loons Cedar Rapids Kernels Rome Braves West Virginia Power Bowling Green Hot Rods

0 200000 400000 600000 800000 1000000 1200000 EXHIBIT 4: COMPARABLE MARKET IDENTIFICATION

The Fredericksburg market’s population, retail sales, and effective buying income were compared to the seven selected Class A markets. As seen in Exhibit 5, the Fredericksburg population within the 30-minute drive time is similar to the selected markets but far superior when comparing retail sales and median disposable income levels. Retail sales are an appropriate indicator of economic activity in a market while effective buying income (EBI), or disposable income after tax obligations, is a reflection of market wealth.

Population (2012) Retail Sales (2012) Median EBI (2012)

Cedar Rapids Kernels 309,703 $1,950,000,000 $47,806 Great Lakes Loons 313,968 $2,740,000,000 $40,847 Ft Wayne TinCaps 452,932 $3,750,000,000 $44,594 Lexington Legends 537,160 $4,780,000,000 $44,748 Peoria Chiefs 346,591 $3,180,000,000 $47,157 Rome Braves 238,668 $1,710,000,000 $37,375 West Virginia Power 227,889 $2,120,000,000 $41,048

Comparable Average 346,702 $2,890,000,000 $43,368

Fredericksburg, VA 386,766 $3,720,000,000 $66,457

Source: SitesUSA 2012 EXHIBIT 5: COMPARABLE MARKET COMPARISONS

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FREDERICKSBURG ECONOMIC DEVELOPMENT AUTHORITY

Household Size

Along with ballpark age, market population is one of the most predictive characteristics of ballpark attendance. Fredericksburg has nearly 400,000 people in 131,000 households within the 30-minute drive time area. This market area is expected to grow at nearly two percent (2%) annually over the next five years. Fredericksburg’s average residents per household is 2.95, which is nearly 20% larger than its market peers. Given minor league baseball’s focus on affordable family entertainment, a higher resident per household figure bodes well for attendance levels.

Population (2012) Households Residents/HH

Cedar Rapids Kernels 309,703 124,093 2.50 Great Lakes Loons 313,968 129,468 2.43 Ft Wayne TinCaps 452,932 176,787 2.56 Lexington Legends 537,160 214,970 2.50 Peoria Chiefs 346,591 138,106 2.51 Rome Braves 238,668 88,608 2.69 West Virginia Power 227,889 100,475 2.27

Comparable Average 346,702 138,930 2.50

Fredericksburg, VA 386,766 130,992 2.95

Source: SitesUSA 2012 EXHIBIT 6: RESIDENTS PER HOUSEHOLD

Market Wealth

Fredericksburg compares extremely well to its peer markets in terms of median household EBI; at $43,000, its average per household is over 50% higher at $66,000. Fredericksburg’s strong market wealth is reinforced by its average household net worth, which is over $190,000 greater than the next best market, Cedar Rapids.

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Average Household Median EBI Net Worth

Cedar Rapids Kernels $47,806 $470,378 Great Lakes Loons $40,847 $386,506 Ft Wayne TinCaps $44,594 $403,641 Lexington Legends $44,748 $434,068 Peoria Chiefs $47,157 $435,103 Rome Braves $37,375 $324,703 West Virginia Power $41,048 $379,734

Comparable Average $43,368 $404,876

Fredericksburg, VA $66,457 $665,789

Source: SitesUSA 2012 EXHIBIT 7: MARKET WEALTH COMPARISON

Corporate Market

Corporate presence is also essential to a minor league market’s success. B&D analyzed the Fredericksburg corporate market’s number of business establishments, number of business headquarters, and total retail sales to understand its strength. As seen in the figure below, Fredericksburg has modest numbers of business establishments and corporate headquarters compared to its peers; however, its retail sales outpace the comparable set by nearly 30%. The corporate market analysis suggests limited demand for luxury suites and advertising.

Business Headquarter Retail Sales Establishments Businesses

Cedar Rapids Kernels 12,146 101 $1,950,000,000 Great Lakes Loons 13,513 61 $2,740,000,000 Ft Wayne TinCaps 17,375 113 $3,750,000,000 Lexington Legends 22,175 231 $4,780,000,000 Peoria Chiefs 12,887 83 $3,180,000,000 Rome Braves 8,064 25 $1,710,000,000 West Virginia Power 9,979 162 $2,120,000,000

Comparable Average 13,734 111 $2,890,000,000

Fredericksburg, VA 11,464 13 $3,720,000,000

Source: SitesUSA 2012 EXHIBIT 8: CORPORATE MARKET COMPARISON

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Market Capture Analysis by Population

Using demographic and attendance data from each comparable market, B&D completed a market capture analysis to project attendance at a newly-constructed stadium. Each team’s average annual attendance from 2008 to 2012 was translated into a percentage of the 30-minute drive time population for each market. When the average capture rate of 71% is applied to the Fredericksburg market, the potential annual paid attendance is just over 4,000 per game for 68 games. When the Great Lakes’ capture ratio of 86.5% is applied, a Fredericksburg ballpark could draw up to 5,000 attendees per game.

[1] Annual [2] Per Game Population Market Capture Attendance Average Cedar Rapids Kernels 309,703 167,308 2,460 54.0% Great Lakes Loons 313,968 271,571 3,994 86.5% Ft Wayne TinCaps 452,932 362,543 5,332 80.0% Lexington Legends 537,160 329,522 4,846 61.3% Peoria Chiefs 346,591 215,312 3,166 62.1% Rome Braves 238,668 194,061 2,854 81.3% West Virginia Power 227,889 177,387 2,609 77.8%

Comparable Average 346,702 245,386 3,609 70.8%

Fredericksburg, VA 386,766

Projected Attendance Level 273,743 4,026

Source: SitesUSA 2012, League website [1] Average reported attendance from 2008 - 2012 [2] Assuming an average of 68 games per year EXHIBIT 9: MARKET CAPTURE BY POPULATION

Market Capture Analysis by Households with Children

To add a level of refinement to the market capture analysis, B&D quantified the relationship between the number of households with children in a market and attendance levels. Households with children represent a primary target market for minor league baseball given its heavy emphasis on family entertainment. On average, households with children in the comparable set generate 5.7 attendances per season. When applied to the Fredericksburg market, this average suggests attendance could be over 4,650 per game per season.

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Households with [1] Annual [2] Per Game Annual Attendees Children Attendance Average per Household

Cedar Rapids Kernels 37,142 167,308 2,460 4.5 Great Lakes Loons 37,701 271,571 3,994 7.2 Ft Wayne TinCaps 60,116 362,543 5,332 6.0 Lexington Legends 66,408 329,522 4,846 5.0 Peoria Chiefs 42,534 215,312 3,166 5.1 Rome Braves 31,728 194,061 2,854 6.1 West Virginia Power 28,107 177,387 2,609 6.3

Comparable Average 43,391 245,386 3,609 5.7

Fredericksburg, VA 55,992

Projected Attendance Level 316,649 4,657

Source: SitesUSA 2012, League website [1] Average attendance from 2008 - 2012 [2] Assuming an average of 68 games per year EXHIBIT 10: MARKET CAPTURE BY HOUSEHOLDS WITH CHILDREN

PROJECTED EVENTS AND REVENUES

Methodology

B&D completed a review of comparable ballpark characteristics to:

 identify the ranges and types of outside events possible at a ballpark,  project an events calendar, and  develop event revenue assumptions for future planning.

Both secondary and primary resources were utilized in an effort to obtain the most reliable data available. All event and revenue assumptions are summarized at the conclusion of this section in a table.

Comparable Facility Event Schedule

B&D collected event calendar information for the seven comparable facilities. Event calendars are influenced by the ballpark site, competitive event space in a market, and team operational goals and capabilities. Among Fredericksburg’s comparable set, Parkview Field in Ft. Wayne hosted the most non-primary tenant events with 375 annually. According to team representatives, the park’s proximity to the Ft. Wayne central business district, its in-house

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FREDERICKSBURG ECONOMIC DEVELOPMENT AUTHORITY

catering operation, and its rigorously planned ballpark program have enabled it to capitalize on event opportunities. By contrast, State Mutual Stadium hosts only 10 outside events annually. Secondary tenants, which include amateur or collegiate sports teams, are often relied upon to provide additional outside events.

Secondary External Events Team Ballpark Tenant Events (Approximate) Veterans Memorial Cedar Rapids Kernels 080 Stadium Ft. Wayne Tin Caps Parkview Field 0 375

Great Lakes Loons Dow Diamond 0 71 Whitaker Bank Lexington Legends 0225 Ballpark Peoria Chiefs Peoria Chiefs Stadium 22 32

Rome Braves State Mutual Stadium 0 10 Appalachian Power West Virginia Power 34 100 Park

Comparable Average 132

Source: Team websites, industry contacts, Internet research EXHIBIT 11: COMPARABLE BALLPARK EVENT TOTALS

Probable Event Calendar

B&D assumes a new Fredericksburg ballpark will host between 25 and 35 annual outside revenue-generating events. The event calendar is limited in comparison to other parks due to the presence of the Fredericksburg Expo Center, which hosts a wide variety of events including corporate outings, weddings, and banquets. Outside revenue-generating events may include concerts, amateur sporting events, parking lot events, and/or car shows, for example. Net revenue from these events is expected to range from $87,500 and $122,500.

Attendance Projections

Based on a quantitative analysis of historic capture rates, B&D projects that a new Fredericksburg ballpark could achieve a first year paid attendance of between 5,100 and 5,700 per baseball game. In most cases, first-year attendance is subject to a “honeymoon” period when interest increases as a result of the new ballpark. B&D completed a detailed attendance trend analysis, shown in Exhibit 13, which indicates ballparks typically reach a stabilized attendance level at roughly 80% of first year attendance. Applying this trend to the Fredericksburg park, stabilized paid attendance is expected to settle in between 4,100 and

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4,600. The cells that are a darker shade of green in Exhibit 13 indicate a higher percentage of year one attendance in comparison to the lighter cells.

Paid Attendance Year 1 Year 2 Year 3 Year 4 Year 5

Aggressive 5,700 5,400 5,100 4,800 4,600 Moderate 5,400 5,100 4,900 4,600 4,300 Conservative 5,100 4,800 4,600 4,300 4,100 EXHIBIT 12: PAID ATTENDANCE PROJECTIONS

Opened 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Cedar Rapids Kernels 2002 - 196,066 174,431 177,929 184,190 176,201 173,219 164,568 169,697 173,210 169,000 160,064 --89% 91% 94% 90% 88% 84% 87% 88% 86% 82% Great Lakes Loons 2007 ------324,564 299,416 271,146 263,878 264,249 259,160 ------92% 84% 81% 81% 80% Lexington Legends 2001 451,076 428,840 370,656 401,191 388,710 376,702 377,836 370,570 332,588 336,168 312,349 295,937 - 95% 82% 89% 86% 84% 84% 82% 74% 75% 69% 66% Peoria Chiefs 2002 - 254,407 246,370 211,598 256,612 235,031 247,426 275,673 219,168 203,558 187,915 190,244 --97% 83% 101% 92% 97% 108% 86% 80% 74% 75% Rome Braves 2003 - - 246,718 245,724 232,187 232,259 232,674 222,168 183,750 193,061 186,345 184,983 ---100% 94% 94% 94% 90% 74% 78% 76% 75% West Virginia Power 2005 - - - - 233,143 239,721 248,766 213,030 177,691 172,344 165,996 157,875 -----103% 107% 91% 76% 74% 71% 68%

Source: League website Note: Green and yellow cells represent each year's attendance level as a percent of year one attendance EXHIBIT 13: ATTENDANCE REGRESSION

Gate Receipts

Attendees at minor league games purchase season, group, or “walk-up” tickets. Tickets on a game-to-game basis at SAL parks average $10 with a low of five dollars and a high of $30. Season ticket packages offer patrons a slight discount over walk-up ticket prices with an average SAL season ticket price of $505 or $7.50 per game. All SAL season ticket prices are described in Attachment A to this document. For the projected gate receipts shown below, the blended average ticket price is $10.

Year 1 Year 2 Year 3 Year 4 Year 5

Aggressive $ 3,876,000 $ 3,672,000 $ 3,468,000 $ 3,264,000 $ 3,128,000 Moderate $ 3,672,000 $ 3,468,000 $ 3,332,000 $ 3,128,000 $ 2,924,000 Conservative $ 3,468,000 $ 3,264,000 $ 3,128,000 $ 2,924,000 $ 2,788,000 EXHIBIT 14: PROJECTED GATE RECEIPTS

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FREDERICKSBURG ECONOMIC DEVELOPMENT AUTHORITY

Parking, Concessions, and Ancillary Revenue

Parking at SAL parks is normally provided free of charge to season ticket holders, premium seating patrons, and team personnel. B&D reviewed parking charges for SAL ballparks and found that if a fee is assessed it is between $3 and $5 per car.

Concession spending is influenced by the quality of offerings, skill of the concessionaire, and the number of points of sale in the ballpark. It is not uncommon for ballparks with sophisticated concession operations to average per capita concession spending in excess of $10 per game. Based on comparable ballparks and Fredericksburg’s demographic profile, B&D believes that $10 to $11 per capita concession spending is achievable.

Merchandise at minor league ballparks includes programs, souvenirs, clothing, and other tangible purchases. Merchandise spending at comparable ballparks range from $.75 to $3.00 per patron per game and is influenced by the merchandising operation and popularity of a team’s logo. B&D projects a Fredericksburg park would have a per capita merchandise spending of $2.00 to $2.50 per game.

Advertising and Naming Rights

Advertising revenue is directly related to the strength of the local business market. Given Fredericksburg’s limited corporate community, B&D projects annual advertising revenue to be between $750,000 to $1,000,000 per year. Advertising revenue includes outfield fence signs, billboards, sponsorship rights to specific areas of the park, and scoreboard signage. Naming rights to the park provides an additional revenue stream. B&D benchmarked current SAL and MWL naming rights agreements and found the average total value is $2.6 million over 13 years. Based on comparable agreements, B&D believes annual naming rights proceeds will range between $150,000 and $250,000.

1.10 BRAILSFORD & DUNLAVEY INSPIRE. EMPOWER. ADVANCE.

MULTI-USE STADIUM MARKET ANALYSIS

Team Ballpark Naming Rights Years Total Annual

Dayton Dragons Fifth Third Field 20 $4,300,000 $215,000 Fort Wayne TinCaps Parkview Field 10 $3,000,000 $300,000 Greensboro Grasshoppers NewBridge Bank Park 10 $3,000,000 $300,000 Lake County Captains Classic Park 15 $4,260,000 $284,000 Lakewood Blue Claws FirstEnergy Park 20 $4,500,000 $225,000 Lansing Lugnuts Cooley Law School Stadium 11 $1,500,000 $136,364 Peoria Chiefs O'Brien Field 7 $1,050,000 $150,000 Rome Braves State Mutual Stadium 10 $650,000 $65,000 West Virginia Power Appalachian Power Park 10 $1,250,000 $125,000

Min 7 $650,000 $65,000 Average 13 $2,612,222 $200,040 Max 20 $4,500,000 $300,000

Source: 2012 Revenues From Sports Venues - Pro Edition, Internet research EXHIBIT 15: NAMING RIGHTS AGREEMENTS

Revenue Assumptions

All revenue assumptions developed for this Study are provided in the table below. B&D has provided three “scenarios” to depict an array of potential outcomes. These assumptions are specific to affiliated minor league baseball.

Assumptions Conservative Moderate Aggressive

Year One Paid Attendance 5,100 5,400 5,700 Stabilized Paid Attendance 4,100 4,300 4,600 Year One Gate Receipts $3,468,000 $3,672,000 $3,876,000 Stabilized Gate Receipts $2,788,000 $2,924,000 $3,128,000 "No Show" Factor 22% 20% 18% Outside Events 25 30 35 Event Income $87,500 $105,000 $122,500 Parking $0$0$3 Concession per Capita $10 $10.50 $11 Merchandise per Capita $2 $2.25 $2.50 Advertising $750,000 $875,000 $1,000,000 Annual Naming Rights Proceeds $150,000 $200,000 $250,000

EXHIBIT 16: REVENUE ASSUMPTIONS

Qualifications

The findings of the market analysis constitute the professional opinions of B&D personnel based on the assumptions and conditions detailed throughout. B&D analyst’s have conducted research using both primary and secondary sources which are deemed reliable, but whose

May 9, 2013 11

FREDERICKSBURG ECONOMIC DEVELOPMENT AUTHORITY

accuracy B&D cannot guarantee. Due to variations in the national and global economic conditions, actual revenues may vary from the projections, and these variances may be material.

1.12 BRAILSFORD & DUNLAVEY INSPIRE. EMPOWER. ADVANCE. Attachment A:

MiLB Market Analysis This page intentionally left blank. Fredericksburg EDA MiLB Market Analysis Attachment A Midwest League Attendance

Completed 2008 67 2009 67 2010 67 2011 67 2012 69 Total Avg. Per Game Avg.

Beloit Snappers 1982 82,456 1,231 83,480 1,246 73,440 1,096 66,982 1,000 68,867 998 75,045 1,114

Bowling Green Hot Rods 2009 - - 232,987 3,477 235,412 3,514 237,070 3,538 233,208 3,380 234,669 3,477

Burlington Bees 1970 68,313 1,020 64,499 963 60,508 903 54,284 810 58,195 843 61,160 908

Cedar Rapids Kernels 2002 164,568 2,456 169,697 2,533 173,210 2,585 169,000 2,522 160,064 2,320 167,308 2,483

Clinton Lumber Kings 1937 114,662 1,711 107,665 1,607 123,553 1,844 115,253 1,720 111,760 1,620 114,579 1,700

Dayton Dragons 2000 586,417 8,752 586,193 8,749 597,433 8,917 571,886 8,536 588,689 8,532 586,124 8,697

Fort Wayne Tin Caps 2009 256,693 3,831 378,529 5,650 404,942 6,044 376,022 5,612 396,531 5,747 362,543 5,377

Great Lakes Loons 2007 299,416 4,469 271,146 4,047 263,878 3,938 264,249 3,944 259,160 3,756 271,570 4,031

Kane County Cougars 1991 472,596 7,054 400,040 5,971 430,831 6,430 410,262 6,123 391,102 5,668 420,966 6,249

Lake County Captains 2003 ----287,935 4,298 235,897 3,521 248,114 3,596 257,315 3,805

Lansing Lugnuts 1996 353,571 5,277 346,935 5,178 360,510 5,381 345,089 5,151 345,763 5,011 350,374 5,200

Peoria Chiefs 2002 275,673 4,115 219,168 3,271 203,558 3,038 187,915 2,805 190,244 2,757 215,312 3,197

Quad City River Bandits 1932 207,048 3,090 236,401 3,528 224,128 3,345 223,025 3,329 240,008 3,478 226,122 3,354

South Bend Silver Hawks 1986 163,479 2,440 155,403 2,319 129,599 1,934 112,795 1,684 189,575 2,747 150,170 2,225

West Michigan White Caps 1994 367,532 5,486 356,642 5,323 371,575 5,546 372,555 5,561 362,554 5,254 366,172 5,434

Wisconsin Timber Rattlers 1995 190,263 2,840 253,240 3,780 244,331 3,647 240,998 3,597 240,509 3,486 233,868 3,470

New Ballpark Average ('00+) 316,553 4,725 309,620 4,621 309,481 4,619 291,720 4,354 296,573 4,298 299,263 4,523

Older Ballpark Average 224,436 3,350 222,701 3,324 224,275 3,347 215,694 3,219 223,148 3,234 222,051 3,295 Source: Baseball Cube, League Websites Fredericksburg EDA MiLB Market Analysis Attachment A SAL League Attendance

Completed 2008 70 2009 69 2010 70 2011 70 2012 70 Avg Per Game Avg.

Asheville Tourists 1992 175,892 2,513 146,353 2,121 160,023 2,286 157,199 2,246 155,760 2,225 159,045 2,278

Augusta GreenJackets 1995 200,222 2,860 194,437 2,818 201,760 2,882 200,115 2,859 182,124 2,602 195,732 2,804

Charleston Riverdogs 1997 279,606 3,994 268,985 3,898 269,023 3,843 265,465 3,792 254,002 3,629 267,416 3,831

Delmarva Shorebirds 1996 226,754 3,239 214,575 3,110 221,051 3,158 211,993 3,028 231,194 3,303 221,113 3,168

Greensboro Grasshoppers 2005 440,787 6,297 406,549 5,892 379,511 5,422 388,218 5,546 367,077 5,244 396,428 5,680

Greenville Drive 2006 349,116 4,987 335,159 4,857 337,918 4,827 327,558 4,679 347,042 4,958 339,359 4,862

Hagerstown Suns 1931 137,283 1,961 126,166 1,828 135,799 1,940 123,593 1,766 87,429 1,249 122,054 1,749

Hickory Crawdads 1993 133,512 1,907 131,414 1,905 140,789 2,011 131,131 1,873 132,696 1,896 133,908 1,918

Kannapolis Intimidators 1995 119,668 1,710 132,342 1,918 123,828 1,769 138,487 1,978 132,493 1,893 129,364 1,854

Lakewood Blue Claws 2001 425,166 6,074 429,221 6,221 431,954 6,171 382,070 5,458 410,113 5,859 415,705 5,956

Lexington Legends 2001 370,570 5,294 332,588 4,820 336,168 4,802 312,349 4,462 295,937 4,228 329,522 4,721

Rome Braves 2003 222,168 3,174 183,750 2,663 193,061 2,758 186,345 2,662 184,983 2,643 194,061 2,780

Savannah Sand Gnats 1941 105,537 1,508 110,846 1,606 120,426 1,720 135,415 1,935 117,372 1,846 117,919 1,723

West Virginia Power 2005 213,030 3,043 177,691 2,575 172,344 2,462 165,996 2,371 157,875 2,255 177,387 2,541

New Ballpark Average ('00+) 336,806 4,812 310,826 4,505 308,493 4,407 293,756 4,197 293,838 4,198 308,744 4,423

Older Ballpark Average 172,309 2,462 165,640 2,401 171,587 2,451 170,425 2,435 161,634 2,330 168,319 2,416 Source: Baseball Cube, League Websites Fredericksburg EDA MiLB Market Analysis Attachment A Comparable Markets

Population (2012) Retail Sales (2012) Median EBI (2012)

Comparable Average 346,702 $2,890,000,000 $43,368

Fredericksburg, VA 386,766 $3,720,000,000 $66,457

Source: SitesUSA 2012 Fredericksburg EDA MiLB Market Analysis Attachment A Residents per Household

Population (2012) Households Residents/HH

Comparable Average 346,702 138,930 2.50

Fredericksburg, VA 386,766 130,992 2.95

Source: SitesUSA 2012 Fredericksburg EDA MiLB Market Analysis Attachment A Population

Population (2012) Estimated Population (2017) Annualized Growth

Cedar Rapids Kernels 309,703 327,116 1.12% Great Lakes Loons 313,968 307,118 -0.44% Ft Wayne TinCaps 452,932 463,554 0.47% Lexington Legends 537,160 570,289 1.23% Peoria Chiefs 346,591 360,899 0.83% Rome Braves 238,668 247,445 0.74% West Virginia Power 227,889 228,285 0.03%

Comparable Average 346,702 357,815 0.64%

Fredericksburg, VA 386,766 423,794 1.91%

Source: SitesUSA 2012 Fredericksburg EDA MiLB Market Analysis Attachment A Household Income

Household Income Percent with $50,000 Households $50,000+ and greater Cedar Rapids Kernels 124,093 66,695 54% Great Lakes Loons 129,468 59,354 46% Ft Wayne TinCaps 176,787 88,050 50% Lexington Legends 214,970 106,648 50% Peoria Chiefs 138,106 73,596 53% Rome Braves 88,608 37,030 42% West Virginia Power 100,475 45,283 45%

Comparable Average 138,930 68,094 49%

Fredericksburg, VA 130,992 93,996 72%

Source: SitesUSA 2012 Fredericksburg EDA MiLB Market Analysis Attachment A Corporate Market

Business Headquarter Retail Sales Establishments Businesses Cedar Rapids Kernels 12,146 101 $1,950,000,000 Great Lakes Loons 13,513 61 $2,740,000,000 Ft Wayne TinCaps 17,375 113 $3,750,000,000 Lexington Legends 22,175 231 $4,780,000,000 Peoria Chiefs 12,887 83 $3,180,000,000 Rome Braves 8,064 25 $1,710,000,000 West Virginia Power 9,979 162 $2,120,000,000

Comparable Average 13,734 111 $2,890,000,000

Fredericksburg, VA 11,464 13 $3,720,000,000

Source: SitesUSA 2012 Fredericksburg EDA MiLB Market Analysis Attachment A Market Capture Analysis

Comparable Average 346,702 245,386 3,609 70.8%

Fredericksburg, VA 386,766

Projected Attendance Level 273,743 4,026

Source: SitesUSA 2012, League website [1] Average reported attendance from 2008 - 2012 [2] Assuming an average of 68 games per year Fredericksburg EDA MiLB Market Analysis Attachment A Household Penetration Analysis

Households with [1] Annual [2] Per Game Annual Attendees Children Attendance Average per Household

Comparable Average 43,391 245,386 3,609 5.7

Fredericksburg, VA 55,992

Projected Attendance Level 316,649 4,657

Source: SitesUSA 2012, League website [1] Average attendance from 2008 - 2012 [2] Assuming an average of 68 games per year Fredericksburg EDA MiLB Market Analysis Attachment A South Atlantic League/ Midwest League - Naming Rights

Team Ballpark Naming Rights Years Total Annual Dayton Dragons Fifth Third Field 20 $4,300,000 $215,000 Fort Wayne TinCaps Parkview Field 10 $3,000,000 $300,000 Greensboro Grasshoppers NewBridge Bank Park 10 $3,000,000 $300,000 Greenville Drive Fluor Field NA NA NA Lake County Captains Classic Park 15 $4,260,000 $284,000 Lakewood Blue Claws FirstEnergy Park 20 $4,500,000 $225,000 Lansing Lugnuts Cooley Law School Stadium 11 $1,500,000 $136,364 Lexington Legends Whitaker Bank Ballpark NA NA NA Peoria Chiefs O'Brien Field 7 $1,050,000 $150,000 Rome Braves State Mutual Stadium 10 $650,000 $65,000 West Virginia Power Appalachian Power Park 10 $1,250,000 $125,000 Min 7 $650,000 $65,000 Average 13 $2,612,222 $200,040 Max 20 $4,500,000 $300,000

Source: 2012 Revenues From Sports Venues - Pro Edition, Internet research Fredericksburg EDA MiLB Market Analysis Attachment A Comparable Market Regression Analysis

Opened 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Cedar Rapids Kernels 2002 - 196,066 174,431 177,929 184,190 176,201 173,219 164,568 169,697 173,210 169,000 160,064 --89% 91% 94% 90% 88% 84% 87% 88% 86% 82% Great Lakes Loons 2007 ------324,564 299,416 271,146 263,878 264,249 259,160 ------92% 84% 81% 81% 80% Lexington Legends 2001 451,076 428,840 370,656 401,191 388,710 376,702 377,836 370,570 332,588 336,168 312,349 295,937 - 95% 82% 89% 86% 84% 84% 82% 74% 75% 69% 66% Peoria Chiefs 2002 - 254,407 246,370 211,598 256,612 235,031 247,426 275,673 219,168 203,558 187,915 190,244 --97% 83% 101% 92% 97% 108% 86% 80% 74% 75% Rome Braves 2003 - - 246,718 245,724 232,187 232,259 232,674 222,168 183,750 193,061 186,345 184,983 ---100% 94% 94% 94% 90% 74% 78% 76% 75% West Virginia Power 2005 ----233,143 239,721 248,766 213,030 177,691 172,344 165,996 157,875 -----103% 107% 91% 76% 74% 71% 68%

Source: League website Note: Green and yellow cells represent each year's attendance level as a percent of year one attendance Note: Darker cells indicate a higher percentage of year one attendance in comparison to lighter cells Fredericksburg EDA MiLB Market Analysis Attachment A SAL League Ticket Prices

Individual Game Ticket Prices: Season Adults Ticket Parking Prices Season Ticket Low High Average Low High Average General Holders

Asheville Tourists $7 $30 $19 $301 $700 $501 - - Augusta GreenJackets $8 $12 $10 $370 $555 $463 - - Charleston Riverdogs $8 $19 $14 $375 $525 $450 - - Delmarva Shorebirds $6 $13 $10 $540 $680 $610 Free $3 Greensboro Grasshoppers $6 $9 $8 $440 $560 $500 $4 $4 Greenville Drive $7 $10 $9 $535 $535 $535 - - Hagerstown Suns $9 $12 $11 $468 $579 $524 Free - Hickory Crawdads $7 $9 $8 $375 $450 $413 - - Kannapolis Intimidators $6 $10 $8 $320 $500 $410 Free $2 Lakewood Blue Claws $9 $10 $10 $495 $560 $528 Free $3 Lexington Legends $9 $23 $16 $532 $1,097 $815 - $3-$5

Rome Braves $6 $10 $8 $340 $690 $515 Discounted - Savannah Sand Gnats $7 $10 $9 $250 $465 $358 Free Free

West Virginia Power $5 $9 $7 $385 $525 $455 Controlled by City of Charleston

Source: RSV Club Seats: Season Price

Fredericksburg EDA MiLB Market Analysis Attachment A SAL League Premium Seating Prices Per SeasonGame Price Price

Luxury Suites

Quantity Low High Average Quantity Low High Average Low High Average Seats/Suite

Asheville Tourists $1,799 $1,799 $1,799 1 $200 $200 $200 - - - 50 Augusta GreenJackets 0 - - - 0 ------Charleston Riverdogs 0 - - - 8 $650 $1,000 $825 $8,500 $22,000 $15,250 32 Delmarva Shorebirds 258 $680 $680 $680 6 $500 $500 $500 $20,000 $20,000 $20,000 25 Greensboro Grasshoppers 0 - - - 16 - - - $16,800 $24,000 $20,400 24 Greenville Drive 0 - - - 18 - - - $20,000 $20,000 $20,000 18 Hagerstown Suns 0 - - - 0 ------Hickory Crawdads 0 - - - 4 $200 $425 $313 - - - 15 Kannapolis Intimidators 0 - - - 6 $200 $200 $200 $8,400 $8,400 $8,400 12 Lakewood Blue Claws 0 - - - 20 $795 $795 $795 $20,000 $20,000 $20,000 20 Lexington Legends 0 - - - 24 ------Rome Braves 0 - - - 14 $400 $900 $650 $20,000 $20,000 $20,000 20 Savannah Sand Gnats 0 - - - 0 ------West Virginia Power 0 - - - 0 ------

Source: RSV, team websites This page intentionally left blank. City Revenues and Expense Summary

Based on the draft lease agreement dated May 13, 2013 and B&D’s analysis, the City is projected to realize a surplus on stadium operations of approximately $274,000 in 2019. The chart below summarizes the City’s projected surplus revenues.

Projected City Revenues and Expense Summary

Naming Rights $100,000 Tenant Rent Payment $105,000 Profit Sharing $35,000 Direct Tax Receipts (Less Sales Tax Clawback) $432,000 Total City Revenues $672,000

Police & EMS $265,000 Stadium Maintenance Fund $50,000 Insurance $33,000 Stadium Capital Improvement Fund $50,000 Total City Expenses $398,000

Surplus Revenues $274,000 EXHIBIT 6: CITY REVENUE AND EXPENSE SUMMARY

1.4 BRAILSFORD & DUNLAVEY INSPIRE. EMPOWER. ADVANCE.

MULTI-USE STADIUM FINANCIAL ANALYSIS CONFIDENTIAL

Funding

It is understood that the total debt service on the $30 million stadium will be funded by state returned sales tax (claw back) income and the Special Service Tax District revenue. Debt assumptions include a 30-year term and 4.5% interest rate for a $30 million bond, creating debt service of approximately $1.8 million annually. With an assessed value of approximately $528,317,500, the Initial Special Service Tax District’s expected tax rate is $0.32 per $100 of assessed value. As additional development takes place in the Special Service Tax District, the tax rate could be decreased. A map of the Special Service Tax District boundaries is attached to this document as Exhibit B.

Assumption

Bond Amount EDA $30,000,000 Term (Years) EDA 30 Rate EDA 4.50% Annual Debt Service Requirement $1,841,746 Less State Returned Sales Tax (Clawback) [1] $129,000 Annual Debt Service Requirement for Special Service District $1,712,746

Initial Service District Assessed Value EDA $528,317,500 Projected Build-out Assessed Value EDA $607,565,125

Initial Service District Tax Rate (per $100) [2] EDA $0.32 Projected Service District Tax Rate (per $100) [2] $0.28

[1] State returned sales tax (clawback) is dedicated to debt service reduction [2] Initial and Projected Service District Tax Rate provided by Fairbanks & Franklin EXHIBIT 7: STADIUM FUNDING