Indoor Sports Center Market Demand Report Prepared
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Indoor Sports Center Market Demand Report Prepared for: Hopkinsville, Kentucky May 2016 Prepared by: Pinnacle Indoor Sports P I Sports, LLC. 2714 W. Rainmaker, Prescott, Arizona, 86305 Contact: Steve Michener: (928) 308-2230; [email protected] Table of Contents EXECUTIVE SUMMARY ......................................................................................... 1 Assumptions .................................................................................................. 1 Findings ........................................................................................................ 2 Recommendations ........................................................................................ 4 Methodology .......................................................................................................... 6 Quantitative ................................................................................................... 6 Qualitative ..................................................................................................... 7 Performance Steps to Assess Feasibility ....................................................... 8 Market Area Description ........................................................................................ 9 Community Survey .............................................................................................. 11 Demographic Market Analysis ............................................................................ 14 Census Data ............................................................................................... 14 Local & Regional Sports Market ................................................................. 19 The Recreational Sports Communities ........................................................ 28 Sports Event Market .................................................................................... 35 Event Center Market ................................................................................... 46 Ancillary Revenue ................................................................................................ 49 Competition ......................................................................................................... 53 SWOT Analysis .................................................................................................... 54 Contributors to Project Success .................................................................. 55 Challenges to Project Success .................................................................... 56 Snapshot ..................................................................................................... 57 CONCLUSION/RECOMMENDATIONS ................................................................. 59 Exhibits: I Selected Interview Notes II Existing Competition Attachments: A Community Survey Report & Comments B Detailed Demographic Reports C NASC Rights Holder Study EXECUTIVE SUMMARY In February 2016, Pinnacle Indoor Sports (PI Sports, LLC) was commissioned by the Hopkinsville, Kentucky, Parks and Recreation Division, to assess the feasibility of an indoor sports center as part of a plan to: 1. Add measurably to the number of out-of-town visitors who will stay overnight locally while participating in programmed sports and other recreational events; 2. To be financially self-sustaining to cover operational costs through user fees, and; 3. Provide an indoor participatory sports amenity to the local populace. Assumptions The conclusions and recommendations of the study are based on the following assumptions: That information received from sources, including other facilities, is accurate and complete. That the supply of these types of facilities in the local and regional market area will not differ significantly from what already exists in the area today. That the general national, state and regional economic outlook will not change markedly. If such a facility is developed, then competent and professional management will operate and market the facility. 1 Pinnacle Indoor Sports – Market Feasibility Study Report for Hopkinsville, KY. May, 2016 Findings The study was accomplished over the course of 60 days of investigation. Several key conclusions have been made in the areas of the three stated objectives: Out-of-Town/Regional Emphasis The Hopkinsville, KY, area is an attractive location for sports tournaments and other events in terms of a prospective regional draw. Any new facility should be designed with a multi-sport emphasis targeting the court sports of basketball and volleyball primarily; and an indoor turf component for the field sports. A multi-sport surface can also be used as practice and recreation space for the turf sports if a turf venue is not available, as well as for non-sports activities. The addition of such a facility has the potential to positively impact the local economy. The single most important factor in assuring a financially successful indoor sports venue will be the establishment of a professional marketing effort to promote Hopkinsville as an attractive sports event destination to bring in sports teams from the larger regional communities such as Louisville, Nashville, etc. An adjacent (or nearby) family-friendly hotel with amenities would increase the likelihood of attracting out-of-town tournament participants. Financially Self-Sustaining A modest, well-planned facility should generate sufficient revenue to support itself operationally. It will also add to the collection of local sales and hotel taxes by attracting outside visitors and guests. Three regulation basketball courts (convertible to other uses) with multi-use flooring in an open concept layout would be needed at minimum. Highest revenue opportunities are from local sports associations and Parks and Recreation Division programming Monday – Thursday; and weekend tournaments targeting out-of-town sport groups. Additional revenue opportunities exist through potential collaboration/cooperation with the James E. Bruce Convention Center for general facility rentals. Local Needs The community is in need of an expanded sports and recreation facility with space for both private and public recreation groups and municipal (Parks and Recreation Division) programming. 2 Pinnacle Indoor Sports – Market Feasibility Study Report for Hopkinsville, KY. May, 2016 Members of the community surveyed and contacted by Pinnacle were overwhelmingly in favor of having a new indoor center. The facility will allow the existing Parks & Recreation Division to expand their current program offerings to local residents and regional sports teams. The highest needs appear to be (per the Community Survey, personal interviews and focus group meetings): Indoor hard courts Indoor baseball/softball training (cages, tunnels, etc.) Indoor turf field Expanded Parks & Rec programs 3 Pinnacle Indoor Sports – Market Feasibility Study Report for Hopkinsville, KY. May, 2016 Recommendations From an analysis of these findings Pinnacle has determined that there is justification for, at a minimum, a new, open concept multi-sport facility (approximately 32,000+ SF) with the ability to convert to additional expo/convention space as needed. The most appropriate location is deemed to be adjacent, or connected, to the current conference center. This would allow for additional revenue opportunities during the non-sports- centric months through general space rentals combined with the conference space, as well as for possible efficiencies of operations staff by reducing the need for additional maintenance and janitorial staff by sharing staff already in place at the conference center. Such a facility would be utilized for: Sports events and tournaments (operated both by the facility and outside providers) Sports leagues and training (operated both by the facility and outside providers) Facility sports usage rentals by area and regional organizations Local summer camps, youth programs and other area sports activities Exposition, tradeshow, convention and conference rentals (operated both by the facility and outside providers) Daytime recreation programs for seniors and pre-school children The proposed facility should include, at a minimum: Three regulation high school basketball courts, which could convert to an equivalent of six youth basketball or regulation volleyball courts (or any combination thereof) with multipurpose sports flooring Automated baseball/softball pitching machines with drop-down cages for batting practice and pitching tunnels Meeting/team rooms Full food/drink concession area with seating Offices Amenities to accommodate tradeshows/conventions (overhead doors, ample electrical, Wi-Fi, etc.) 4 Pinnacle Indoor Sports – Market Feasibility Study Report for Hopkinsville, KY. May, 2016 Access to one or two hotel facilities Designed in a fashion, and with enough adjacent land, to plan for future phased- in expansion based on success of initial development and future opportunities. Based on indications of revenue generation from the various sports, Pinnacle can recommend development of a hard court venue with multiple sports applications, and separate batting cage/tunnel amenities. A turf field would be welcomed and used by the turf sports organizations; however, at this time it is not certain that revenue from a turf venue would fully cover the additional costs of an expanded facility. The local market for turf sports is small when compared to those of other communities with successful indoor turf