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MARKET DEMAND ANALYSIS Destination KP February 6, 2020

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MARKET DEMAND ANALYSIS Destination KP February 6, 2020 MARKET DEMAND ANALYSIS Destination KP Kings Park, New York NP&V No. 99080 Submitted to: Prospect Sports Partners LLC 350 Old Northport Road Kings Park, New York 11754 Suffolk County Industrial Development Agency (IDA) H. Lee Dennison Building, 3rd Floor 100 Veterans Highway P.O. Box 6100 Hauppauge, NY 11788 Submitted by: Nelson, Pope & Voorhis, LLC, Environmental Planning Consultants 572 Walt Whitman Road Melville, New York 11747 Phone: (631) 427-5665 February 6, 2020 Market Demand Analysis Destination KP, Kings Park TABLE OF CONTENTS PAGE TABLE OF CONTENTS i 1.0 INTRODUCTION AND PURPOSE 1 2.0 EXECUTIVE SUMMARY 3 3.0 METHODOLOGY 7 4.0 MARKET FEASIBILITY 8 5.0 REFERENCES 20 ATTACHMENT A – CORRESPONDENCE FROM NASSAU COUNTY DEPARTMENT OF PARKS, RECREATION & MUSEUMS ATTACHMENT B – NELSON, POPE & VOORHIS, LLC ECONOMIC ANALYSIS QUALIFICATIONS Page i MARKET DEMAND ANALYSIS Destination KP Kings Park, New York NP&V No. 99080 Prepared For: Prospect Sports Partners LLC 350 Old Northport Road Kings Park, New York 11754 Suffolk County Industrial Development Agency (IDA) H. Lee Dennison Building, 3rd Floor 100 Veterans Highway P.O. Box 6100 Hauppauge, NY 11788 Prepared By: Nelson, Pope & Voorhis, LLC 572 Walt Whitman Road Melville, New York 11747 (631) 427-5665 Date: February 6, 2020 1.0 INTRODUCTION AND PURPOSE Nelson, Pope & Voorhis, LLC (NP&V) has been requested to prepare a market demand analysis for a mixed-use sports and medical complex known as Destination KP, in Kings Park, New York. NP&V is a professional environmental and planning firm with qualifications and expertise to prepare market feasibility studies, fiscal and economic impact analyses, and has a track record of similar completed projects, as well as residential and commercial market analysis and related economic development services to private and municipal clients. The economic qualifications of the firm and personnel are provided in Attachment B. This analysis examines the feasibility and market draw of a new mixed-use sports and medical complex, known as Destination KP, to be located at 350 Old Northport Road, in Kings Park, Town of Smithtown, Suffolk County, New York. The 44-acre sports and medical complex includes the development of ten (10) outdoor playing fields, two (2) outdoor practice fields, a 70,900 square foot (SF) indoor sports and recreation facility, and a 5,000 SF concession building (all of the aforementioned components collectively known as the “Sports Facility”), as well as a 50,000 SF office building and a future development parcel (collectively, the “Medical Commercial Facilities”) intended to be occupied in substantial part for medical uses such as physical therapy and urgent care, and other sports-related uses associated with the sports activities at the Sports Facility. Destination KP aims to become a one-stop shop for youth Page 1 Market Demand Analysis Destination KP, Kings Park athletes and even premier athletes and adults seeking elite training facilities and access to sports medicine, practitioners – including doctors, physical therapists and trainers. There is a need for this type of Sports and Medical Complex on Long Island, and Destination KP presents an opportunity to capture this unmet demand and serve the needs of the region and beyond. Specifically, this facility will create local and regional jobs and serve the sports/medical needs of Kings Park, the Town of Smithtown, other parts of Suffolk County and the greater Long Island and metro New York regions. Destination KP will provide a state-of-the-art venue for regional soccer, lacrosse and other sports tournaments unlike any other facility on Long Island. The Sports and Medical Complex will host national tournament events, leagues, training, and camps centered on youth travel events in lacrosse, baseball and soccer. In addition to this, Destination KP will provide crucial services including on-site dining, practice and training services, and sports medicine – all in one place, similar to athletic campuses and field houses at major universities. Since such a facility does not exist on Long Island, many of these tournaments are currently being held in other regions and states, forcing Long Island families to travel and spend their time and resources elsewhere. Destination KP seeks to reverse this trend to induce activity to the facility from off Long Island. Our analysis indicates that the Medical Commercial Facilities will holistically enhance the attraction of Destination KP resulting in a significant number of visitors to Destination KP from outside of Nassau and Suffolk Counties. The existence of medical facilities will make coaches and parents more comfortable in selecting tournaments held at Destination KP versus sports complexes in other locations that do not have such facilities. Not only will the existence of the Sports and Medical Complex allow for local families to remain on Long Island and boost their own local economy, but the facility will also bring a tremendous number of visitors to Kings Park. It is anticipated that Destination KP will draw 336,000 visitors and over 850,000 total attendees at the Complex per year. The consumer spending of this influx of economic activity will significantly benefit the local community. Destination KP would be the largest privately- owned complex of its nature in the Tri-State Area, and the symbiotic and interdependent mix of uses between the Sports Facility and the Medical Commercial Facilities would significantly contribute to a regional tourism destination and a hub of economic development in Kings Park and the greater region. The Sports and Medical Complex will create strong economic activity by providing new employment opportunities and will provide a solid tax base upon completion and full taxation of the project. Consumer activity will ripple through the local complex, creating beneficial fiscal and economic impacts throughout Kings Park, the Town of Smithtown, Suffolk County, and the region as a whole. The following analysis serves to accompany the Suffolk County Industrial Development Agency (SCIDA) application and will assist in identifying the demand for this type of mixed-use sports and medical complex within Kings Park, as well as illustrating the symbiotic and interdependent relationship between the various uses proposed for development. Section 2.0 includes an executive summary and Section 3.0 outlines the methodology and the sources of data used to project the market demand in this analysis. Section 4.0 presents the market feasibility and demand for the project through an examination of the industry in the region, the demand for this type of use, and the supply of comparable facilities in the local economy. Section 5.0 outlines the references and sources of information utilized in this analysis. Page 2 Market Demand Analysis Destination KP, Kings Park 2.0 EXECUTIVE SUMMARY As noted in Section 1.0, this analysis examines the feasibility and market draw of a new mixed- use sports and medical complex, known as Destination KP. A summary of findings is provided herein, with detailed methodologies and references provided in the subsequent sections of this analysis. This analysis was prepared using methods, data and information that are considered to be industry standard for such market demand analyses. Description of Project The 44-acre sports and medical complex includes the development of ten (10) outdoor playing fields, two (2) outdoor practice fields, a 70,900 square foot (SF) indoor sports and recreation facility, and a 5,000 SF concession building (all of the aforementioned components collectively known as the “Sports Facility”), as well as a 50,000 SF office building and a future development parcel (collectively, the “Medical Commercial Facilities”) intended to be occupied in substantial part for medical uses such as physical therapy and urgent care, and other sports-related uses associated with the sports activities at the Sports Facility. Destination KP would be the largest privately-owned complex of its nature in the Tri-State Area, and the symbiotic and interdependent mix of uses at the Sports and Medical Complex will significantly contribute to a regional tourism destination and a hub of economic development in Kings Park and the greater region. The Medical Commercial Facilities will respond to the needs of this aging population, providing continuity of care, and assisting to streamline the process for its patients, therefore saving time and money for many local residents requiring orthopedic and other medical services. It is anticipated that Destination KP will draw 336,000 visitors and over 850,000 total attendees at the Complex per year. Their consumer spending will significantly benefit the local complex, Suffolk County and the greater region, and support the continued economic growth of Long Island’s overall tourist industry. Definition and Strength of the Target Market Area Currently, many Long Island families are traveling two to three hours, or more, to facilities in New Jersey, Pennsylvania, and beyond. As such, it is anticipated that Destination KP will have a comparable primary trade area, with at least a two-hour drive-time radius from the location in Kings Park. This primary market area includes all of Long Island and New York City, and extends north into the Hudson Valley, southwestern Connecticut, and northeastern New Jersey. Destination KP has the potential to capture participants well beyond its primary trade area, with youth traveling as far as other parts of Upstate New York, New England, Pennsylvania, farther into New Jersey, and other parts of the country, for special tournaments and events. Three, four and five-hour drive times are quite likely, and as such, represent the secondary market area. Demand for the Sports and Medical Complex The sports tourism industry, and notably, the youth sports industry, is booming. As of 2019, the youth sports market has grown to a $19.2 billion market in the United States, with no end to growth in sight.
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