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Project Report Event Center Feasibility Study/Business Plan

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Project Report Event Center Feasibility Study/Business Plan Project Report Event Center Feasibility Study/Business Plan Prepared for The Twin Falls County Fair Twin Falls, Idaho Submitted by AECOM Technical Services, Inc. (AECOM) March 2, 2016 Project No. 60446800 303 East Wacker Drive Suite 600 Chicago, IL 60601 312.373.7558 FAX 312.373.6800 www. aecom.com Table of Contents I. Introduction and Executive Summary ................................................................................. 5 Introduction ............................................................................................................................... 5 Executive Summary ................................................................................................................. 5 II. Economic and Demographic Analysis................................................................................. 9 Population................................................................................................................................. 9 Age ......................................................................................................................................... 10 Households............................................................................................................................. 11 Income .................................................................................................................................... 11 Employment............................................................................................................................ 12 Visitor Infrastructure and Tourism .......................................................................................... 13 Climate ................................................................................................................................... 14 Downtown Twin Falls and Local Economic Growth ............................................................... 15 Housing .................................................................................................................................. 15 III. Facilities and Events Industry Analysis ............................................................................. 17 The Twin Falls Fairgrounds and a Potential New Arena ....................................................... 17 Existing/Competitive Facilities in the Surrounding Area and Region .................................... 19 The Twin Falls Area ............................................................................................................... 19 The Broader Region ............................................................................................................... 22 Stakeholder Interviews ........................................................................................................... 23 Potential Tenants ................................................................................................................... 25 IV. Comparable Facilities ........................................................................................................... 33 Douglas County Fairgrounds – Castle Rock, CO .................................................................. 33 Swiftel Center – Brookings, South Dakota ............................................................................. 36 Claremore Expo Center – Claremore, Oklahoma .................................................................. 37 Eihusen Arena/Heartland Events Center, Grand Island, Nebraska ...................................... 39 United Wireless Arena, Dodge City, Kansas ......................................................................... 42 Comparisons to Twin Falls ..................................................................................................... 44 V. Market Conclusions and Recommendations .................................................................... 46 Market-Based Conclusions .................................................................................................... 46 Facility Recommendations and Assumptions ........................................................................ 47 VI. Operating and Financial Analysis ....................................................................................... 49 Events and Attendance .......................................................................................................... 49 AECOM Project No. 60446800 Page 1 Operating Revenues and Expenses ...................................................................................... 52 VII. Economic and Fiscal Impacts ............................................................................................. 57 Introduction to Economic and Fiscal Impacts from Facility Operations ................................. 57 Economic Impacts from Operations ....................................................................................... 58 Economic Impacts from Construction .................................................................................... 66 AECOM Project No. 60446800 Page 2 Index of Tables and Figures Table 1: Summary of Projected Future Annual Usage.................................................................... 7 Table 2: Projected Operating Revenues and Expenses ................................................................. 7 Table 3: Summary of Economic and Fiscal Impacts ....................................................................... 8 Table 4: Twin Falls Employment by Sector, 2014 ........................................................................ 13 Table 5: Local Facilities ................................................................................................................. 19 Table 6: NBA D-League Franchises and Arenas .......................................................................... 26 Table 7: AIFA Franchises and Arenas .......................................................................................... 27 Table 8: IFL Franchises and Arenas ............................................................................................. 28 Table 9: CIF Franchises and Arenas ............................................................................................. 29 Table 10: ECHL Franchises and Arenas ....................................................................................... 30 Table 11: WSHL Franchises and Arenas ...................................................................................... 31 Table 12: MASL Franchises and Arenas ....................................................................................... 32 Table 13: Douglas County Fairgrounds, Indoor Arena Event Days .............................................. 35 Table 14: Claremore Expo Center Events ..................................................................................... 38 Table 15: Claremore Expo Center Revenues and Expenses ($000s) .......................................... 39 Table 16: Eihusen Arena Event Demand ...................................................................................... 41 Table 17: Eihusen Arena Revenues and Expenses ($000s) ........................................................ 42 Table 18: United Wireless Arena 2013 Revenues and Expenses ($000s) ................................... 44 Table 19: Demographics of Comparable Arena Markets and Twin Falls ..................................... 44 Table 20: Forecasted Annual Events and Usage .......................................................................... 49 Table 21: Forecasted Annual Attendance ..................................................................................... 49 Table 22: Projected Annual Operating Revenues and Expenses (000s) ..................................... 52 Table 23: Event and Attendance Assumptions ............................................................................. 53 Table 24: Gross Facility Revenues................................................................................................ 58 Table 25: Total Gross Direct Spending Impacts ........................................................................... 60 Table 26: Total Net Direct Spending Impacts ................................................................................ 62 Table 27: Estimated Twin Falls Multipliers .................................................................................... 63 Table 28: Total Net Direct and Indirect Spending Impacts ........................................................... 63 Table 29: Local Wage and Employee Characteristics .................................................................. 64 Table 30: Estimated Employment-Related Multipliers .................................................................. 64 Table 31: Total Net Direct and Indirect Employment and Income Impacts ................................... 65 Table 32 – Assumed Construction Costs ($000s) ......................................................................... 66 Table 33 – Construction Spending and Employment Multipliers .................................................. 67 Table 34 – Total Net Economic and Fiscal Impacts of Events Center Construction ($000s) ....... 67 Figure 1: Twin Falls and Regional Map .......................................................................................... 9 Figure 2: Population Annual Growth Rate Comparisons .............................................................. 10 Figure 3: Median Age, 2010 to 2020 ............................................................................................
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