C.H. J OHNSON C ONSULTING, I NC. EXPERTS IN CONVENTION, SPORT AND REAL ESTATE CONSULTING August 11, 2004 Mr. Bill Dutton Director of Development Arena Management & Construction 3131 East Camelback Road, Suite 105 Phoenix, AZ 85016 Dear Mr. Dutton: Pursuant to our engagement letter, C.H. Johnson Consulting, Inc. (Johnson Consulting) has prepared an independent market analysis for the proposed arena in Albuquerque, New Mexico. This analysis includes an economic and demographic analysis, demand projections and projections of the facility’s projected financial performance. The attached report explains the methods used to develop the estimates and discusses the results of the analysis. Johnson Consulting has no responsibility to update this report for events and circumstances that occur after the last day substantial analysis was completed. The findings presented herein reflect analysis of primary and secondary sources of information. Johnson Consulting utilized sources deemed to be reliable but cannot guarantee their accuracy. Moreover, estimates and analysis presented in this report are based on trends and assumptions, which usually result in differences between the projected results and actual results. Because events and circumstances frequently do not occur as expected, those differences may be material. We have enjoyed serving you on this engagement and look forward to providing you with continuing service. Sincerely yours, DRAFT C.H. JOHNSON CONSULTING, INC. Attachment Six East Monroe • Fifth Floor • Chicago, Illinois 60603• Phone: 312.444.1031 • Fax 312.444.1125 www.chjc.com •
[email protected] C.H. J OHNSON C ONSULTING, I NC. EXPERTS IN CONVENTION, SPORT AND REAL ESTATE CONSULTING INTRODUCTION Albuquerque, New Mexico is considering development of a new mid-sized arena for its downtown.