Wichita, Kansas Retail Market Overview
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TABLE OF CONTENTS Introduction ....................................................................................................................................... - 1 - STAR Bond Project Plan ..................................................................................................................... - 2 - A. Subject Property ............................................................................................................. - 2 - B. Established STAR Bond Project District ........................................................................... - 3 - C. STAR Bond Project Description and Overview ................................................................ - 3 - D. Summary of Feasibility Study .......................................................................................... - 3 - 1. Sufficiency of the Project’s Revenues Compared to the Project’s Costs ................. - 4 - 2. Significant Contribution to the Economic Development of the State and Region .. - 7 - 3. Projected Visitation.................................................................................................. - 7 - 4. Impact on Outstanding Special Obligation Bonds ................................................... - 8 - 5. Market Study/Market Impact Study ........................................................................ - 8 - 6. Meetings and Minutes ............................................................................................. - 8 - E. Relocation Plan ............................................................................................................... - 9 - F. Sources and Uses ............................................................................................................ - 9 - Conclusion ......................................................................................................................................... - 9 - LIST OF EXHIBITS Exhibit A – Phase I Concept Plan Exhibit B – Legal Description of the Project Exhibit C – Map Depiction of the Project Exhibit D – Estimated Project Costs Exhibit E – Estimated Eligible Costs Exhibit F – STAR Bond Proforma Exhibit G – Meeting Minutes Exhibit H – Canyon Study 42411810.9 Introduction Goddard Development Partners, LLC (the “Developer”) hereby submits this Amended STAR Bond Project Plan (this “Project Plan”), which envisions the construction of a unique destination mixed-use center located generally at the intersection of North Goddard Road and West Kellogg Drive within the City of Goddard, Kansas (the “City”) within an approved STAR Bond District (the “Project”). This Project Plan hereby serves as an amendment to prior versions which were submitted to the City and the Kansas Secretary of Commerce in July 2013 and August 2013, respectively, and is intended to reflect the current STAR Bond structure agreed to by all parties for the Project. The Goddard Aquatic Center & Sports Complex (“GAC”) will serve as the Project’s principal “destination attraction” featuring an Olympic-style indoor aquatic center, four outdoor baseball/softball fields, an approximately 150-room full-service hotel and conference center, as well as two pad sites for future commercial development (collectively, “Phase I”). A concept plan depicting the uses in Phase I of the Project is attached hereto as Exhibit A. The focus of the GAC will be to attract national youth sporting events and tournaments and the associated youth-athletic tourism demographic. These components will serve as the first phase of development within the Project. Future phases may include an estimated 343,500 estimated square feet of retail space, as well as future recreation space, destination attractions, hotels, or other commercial or mixed-use space. In light of the fact that the most readily definable portion of the Project is Phase I, this Project Plan will focus largely on the components within that phase. The unique mix of uses within the Project will create tourism, entertainment, and retail opportunities not presently available in the City. The Developer’s market analysis indicates that the Project will attract a very broad and desirable visitor demographic, consisting largely of traveling athletic organizations and families seeking destination entertainment and shopping. With the significant associated retail in place, the Project will become a primary driver of the City’s economy. At full build- out, total capital investment is estimated at approximately $130,240,935, with annual sales projected at approximately $155,000,000, and annual visitation is estimated at 2,129,500 visitors (with approximately one-third coming from outside the State). It is expected that capital investment and sales figures may exceed these numbers as additional destination attraction and commercial users are identified. A feasibility study prepared for the Project indicates that overall visitation may be as high as 3,500,000 annual visitors at full build-out. Principals of the Developer have substantial experience in developing large-scale commercial projects, including destination attraction based projects that have previously qualified for STAR Bonds. In particular, the principals have participated in the development of the Kansas Speedway STAR Bond Project in Kansas City, Kansas, which includes a national racetrack attraction, a professional soccer stadium, a professional baseball stadium, and a destination water park, as well as over 1,000,000 square feet of retail space, several hotels, and numerous large office buildings. Principals of the Developer have also served as the primary developers of the K-96 STAR Bond Project, which is currently underway in Wichita. That development similarly focuses on the youth sports market via the Fieldhouse sports complex, which will be supported by national level retail and restaurants. Outside of these destination attraction projects, the Developer’s principals have participated in dozens of commercial developments across the Midwest. The Developer feels that this background makes it particularly well-qualified to bring the unique development proposed under this Project Plan to fruition. It is proposed under this Project Plan that the Secretary will approve the issuance of $25,400,000 in net STAR Bond proceeds to be disbursed to the Developer for uses contemplated under this Project 42411810.9 Plan. The City will commit an additional $1,250,000 to be utilized for other costs associated with the Project Plan as described herein. The total of all public sources to be received by the Developer for completion of Phase I is $26,650,000. The Developer respectfully submits this Project Plan for consideration by the City’s Governing Body pursuant to the Kansas STAR Bond Financing Act, K.S.A. § 12-17,160 et seq. (the “Act”). At the completion of the Project, the City, region, and the State of Kansas will have a new and unique destination experience that will draw visitors on a statewide and regional basis, and, in turn, will create significant spin-off economic benefits both to the City and the State as a whole. STAR Bond Project Plan Pursuant to the Act, municipalities are authorized to utilize STAR Bond Financing for specific development projects through (1) the creation of a STAR Bond Project District, subject to a finding by the Secretary of the Department of Commerce (the “Secretary”) that the STAR Bond Project District Plan is eligible for STAR Bond Financing, and (2) the adoption of a STAR Bond Project Plan that is subsequently approved by the Secretary. On December 17, 2012, the City adopted Ordinance No. 736, under which a STAR Bond District (the “District”) encompassing the Project was created. By letter dated January 16, 2013, the Secretary deemed the District as an “eligible area” as defined under the Act. Based thereon, the following Project Plan is submitted for consideration by the City and, ultimately, the Secretary: A description and map of the project area to be redeveloped; A reference to the STAR Bond Project District Plan that identifies the project area that is set forth in the project plan that is being considered; A detailed description of the buildings and facilities proposed to be constructed or improved; A summary of the feasibility study done as defined in the Act, and amendments thereto; The relocation assistance plan; Documentation indicating that the Project will result in a capital investment in excess of $50,000,000 and will generate gross annual sales revenue in excess of $50,000,000; A market impact study establishing that (i) the Project will not have a substantial negative impact on other businesses in the project market area and (ii) the Project will not cause a default in the payment of any outstanding special obligation bonds authorized pursuant to the Act; and Information establishing that the Project will sufficiently promote, stimulate and develop the general and economic welfare of the State, as determined by the Secretary. A. Subject Property The property subject to this Project Plan consists of approximately 280 acres located generally at the intersection of North Goddard Road and West Kellogg Drive within the City of Goddard, Kansas. A - 2 - 42411810.9 legal description and map of the subject property are attached hereto as Exhibit B and Exhibit C, respectively. B. Established STAR Bond Project District The proposed STAR Bond Project Area is within an established STAR Bond Project District approved by the City on December 17, 2012 by adoption of Ordinance No. 736 (the “District”). The District Plan