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Project Report Rocky Mount Event Center Market/Feasibility Study

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Project Report Rocky Mount Event Center Market/Feasibility Study Project Report Rocky Mount Event Center Market/Feasibility Study Prepared for City of Rocky Mount, North Carolina Submitted by AECOM Technical Services, Inc (AECOM) December 3, 2013 Project No. 60278822 303 East Wacker Drive Suite 600 Chicago, IL 60601 312.373.7700 FAX 312.373.6800 www.aecom.com/economics Table of Contents I. Introduction and Executive Summary ................................................................................. 7 Market Analyses ....................................................................................................................... 7 Summary of Recommendations ............................................................................................... 7 Projection of Events Center Operations and Impacts .............................................................. 8 II. Economic and Demographic Analysis of the Local Market ............................................ 12 Population............................................................................................................................... 12 Age of Population ................................................................................................................... 13 Households............................................................................................................................. 14 Income .................................................................................................................................... 15 Economic/Corporate Base ..................................................................................................... 16 Visitor Infrastructure and Access ........................................................................................... 21 Downtown Rocky Mount ........................................................................................................ 23 Randall Tourism Assessment ................................................................................................ 24 III. Facility and Events Industry Analysis ............................................................................... 26 Planned Event Center in Rocky Mount .................................................................................. 26 Existing Facilities in the Rocky Mount Area and Region ....................................................... 26 Interviews with Stakeholders and Potential Users ................................................................. 41 Surveys of Chamber of Commerce Members and State Associations ................................. 43 IV. Comparable Facilities .......................................................................................................... 58 V. Facility Recommendations and Assumptions .................................................................. 79 Market-Based Conclusions .................................................................................................... 79 Facility Recommendations ..................................................................................................... 79 VI. Forecasts of Events Center Demand/Usage ..................................................................... 81 Event and Attendance Demand ............................................................................................. 81 Financial Analysis – Facility Operations ................................................................................ 83 AECOM Project No. 60278822 Page 1 VII. Events Center Non-Operating Revenues and Expenses ................................................. 90 Potential Costs, Funding Sources, and Scenarios ................................................................ 91 VIII. Events Center Economic and Fiscal Impacts ................................................................... 99 Introduction to Economic and Fiscal Impacts from Events Center Operations ..................... 99 Economic Impacts from Operations ..................................................................................... 100 Economic Impacts from Construction .................................................................................. 112 IX. Conclusion .......................................................................................................................... 115 AECOM Project No. 60278822 Page 2 Report Tables and Figures Table 1: Summary of Events and Attendance ................................................................................. 8 Table 2: Summary of Revenues and Expenses ($000s) ................................................................ 9 Table 3: Summary of Operational and Construction Impacts ....................................................... 11 Table 4: Population, 2000-2016 (Projection) ................................................................................. 13 Table 5: Age Cohort Distribution, 2010 ......................................................................................... 14 Table 6: Households, 2000-2016 (Projection) ............................................................................... 15 Table 7: Median Household Income, 2000-2016 (Projection) ....................................................... 16 Table 8: Rocky Mount Work Area Profile, 2002-2010 ................................................................... 17 Table 9: Regional Employment, 2002-2011 .................................................................................. 19 Table 10: Largest Employers in the Rocky Mount MSA (2011) .................................................... 21 Table 11: Regional Facilities ......................................................................................................... 29 Table 12: Crown Center Complex Revenues and Expenses ($000s) .......................................... 32 Table 13: CAEC Event Demand .................................................................................................... 34 Table 14: CAEC Revenues and Expenses ($000s) ...................................................................... 35 Table 15: Salem Civic Center Historic Demand ............................................................................ 36 Table 16: Salem Civic Center Demand, 2011-12 .......................................................................... 36 Table 17: Greenville Convention Center Historic Events and Attendance ................................... 39 Table 18: GCC Event Demand, 2012-13 ...................................................................................... 40 Table 19: Types of Companies ...................................................................................................... 44 Table 20: Reasons for not Holding an Event in Rocky Mount ...................................................... 54 Table 21: Interest in Rocky Mount ................................................................................................. 56 Table 22: Attractiveness of NC Meeting Destinations ................................................................... 57 Table 23: FCC 2012 Event Demand ............................................................................................. 61 Table 24: U.S. Cellular Center 2012 Demand ............................................................................... 64 Table 25: U.S. Cellular Center Revenues and Expenses ($000s) ................................................ 65 Table 26: Eihusen Arena Event Demand ...................................................................................... 68 Table 27: Eihusen Arena Revenues and Expenses ($000s) ........................................................ 69 Table 28: Cumberland County Civic Center Events and Attendance ........................................... 72 Table 29: Cumberland County Civic Center Revenues and Expenses ($000s) ........................... 73 Table 30: Swiftel Center Events and Attendance .......................................................................... 75 Table 31: Swiftel Center Revenues and Expenses, 2004-07 ($000s) .......................................... 77 Table 32: Swiftel Center Revenues and Expenses, 2011 ($000s) ............................................... 78 Table 33: Projected Annual Event Demand .................................................................................. 81 Table 34: Projected Total Annual Attendance ............................................................................... 81 Table 35: Projected Annual Operating Revenues and Expenses (000s) ..................................... 84 Table 36: Various Operating Assumptions .................................................................................... 84 Table 37: Estimated Project Development Costs .......................................................................... 91 Table 38: Estimated Annual Funding Requirements ..................................................................... 91 Table 39: Potential Funding Scenarios – No NMTC Investment .................................................. 95 Table 40: Potential Funding Scenarios – One NMTC Investment ................................................ 96 Table 41: Potential Funding Scenarios – Two NMTC Investments .............................................. 97 Table 42: Potential Funding Scenarios – Three NMTC Investments ............................................ 98 Table 43: Gross Facility Revenues.............................................................................................. 101 Table 44: Attendee Characteristics
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