Augusta Arena Market Analysis 9-17-20 Final Draft

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James Brown Arena Market Analysis

September 17, 2020 Prepared for: Augusta- Richmond County Coliseum Authority

1 v Executive Summary

v Chapter 1: Situation Analysis

v Chapter 2: Economic, Demographic & Tourism Analysis

v Chapter 3: Arena Market Analysis Table of Contents v Chapter 4: Case Studies v Chapter 5: Site Analysis

v Chapter 6: Recommendations

v Chapter 7: Demand and Financial Projections

v Chapter 8: Economic, Fiscal and Employment Impact

2 Executive Summary

3 4

Given the global public health crisis impacting the world’s economy, the data and analysis should be considered to be from, and applicable to, the pre-COVID-19 pandemic timeframe that began in February and March of 2020. Real estate development will likely be severely dampened during the recovery period. The trends in real estate usage may also adjust, such as a stronger work-from-home dynamic, lessening the need for large office spaces Pandemic generally. At-home delivery of retail and restaurant items may impact the future of such development, accelerating a trend that was already occurring, at least in the retail space. Caveat On a positive note, during any recessionary period, the cost of labor and materials for real estate development generally declines, making projects more viable from a cost perspective. HSP suggests planning for an update and/or next step analysis once the economy has generally recovered for a measurable period.

4 KEY QUESTIONS HSP EXPLORED THE FOLLOWING KEY QUESTIONS AND THEIR IMPLICATIONS:

What is the market opportunity for concerts and How will the market demographics in the 1 entertainment, indoor sports events, consumer 2 Augusta area and the region affect a new arena shows, and other kinds of events? development?

What capacity and premium seating How will each recommended scenario perform and 4 3 breakdown best addresses the local market what will their impact be on the city? demographics and the regional competition? CURRENT LANDSCAPE

In order to understand the viability of this new arena development in Augusta, Georgia it is critical to first understand the current situation of the local market, the condition of the current James Brown Arena, and the competitive landscape in the region.

CURRENT LOCAL MARKET SITE SUPPLY & DEMAND COMPETITORS JBA

The existing JBA is not There are numerous The local market is The existing James The site provides able to compete competitors in a 2-3 hour growing, has a strong Brown Arena is outdated, opportunity for a new effectively against its drive time. Most other healthcare and military outmoded and not development to create a peers, which are larger, cities in the region have presence. The competitive for many walkable destination that newer and have more developed new, larger community is looking for types of events. A new can host an array or amenities. There is arenas or renovated a gathering place and a arena will allow Augusta entertainment and event demand for larger arena existing arenas to the connection to the to compete for most offerings. A community events that the JBA cannot point that the JBA is one growing downtown area. events on a local and plaza can create pre- and accommodate. There is a of the oldest, least regional scale. post-event impact gap for a large ballroom, appealing and smallest opportunities. which can induce demand. venues in the region. ARENA DEVELOPMENT SWOT ANALYSIS 7 How External and Internal Factors Affect Project Viability

INTERNAL FACTORS EXTERNAL FACTORS

STRENGTHS OPPORTUNITIES

§ Existing book of Arena Business § James Brown Legacy § Georgia Cyber Center § Larger events

POSITIVE § Healthcare § Connection to improving downtown § Augusta National Golf Club § Religious market

WEAKNESSES THREATS

§ Lack of Attractions § Competition from Larger and Newer § Corporate Presence Facilities § NEGATIVE § Access Renovated Competitors § Existing JBA Size, Quality HEADLINES 8

The following slides summarize the key findings and headlines. In order to assess the viability of any project and make informed recommendations, there are six key elements that must be considered.

THE LOCAL MARKET THE PROJECT SITE THE INDUSTRY

The Augusta market has a strong The Project site presents The entertainment and hospitality military and healthcare presence. The tremendous opportunity to develop industries are changing rapidly due downtown area has slowly grown, a walkable environment, as well as to the COVID-19 pandemic. This due to the increased presence of an event plaza for pre- and post- pandemic has presented challenges quality culinary options and newly event activity (and impact). that these industries have never developed lodging options. seen before. A friendly, active environment The Augusta Marriott at the would make the James Brown While these industries will both Convention Center and the Augusta Arena development an extension of continue to evolve, one common National Golf Club are two demand the downtown area. theme seen across the country is the drivers in the local market, in addition overall focus on guest experience. to the military and corporate drivers. Creating connections to the Bell This theme includes making the Auditorium and the surrounding guest feel safe, while also offering Any new facility should be designed area with smart design is key. an array of price points, localized to leverage every strength and food experiences and pre- and post- mitigate as many weaknesses as event options that cater to many possible. demographics.

8 HEADLINES 9

The following slides summarize the key findings and headlines. In order to assess the viability of any project and make informed recommendations, there are six key elements that must be considered.

THE DEMAND THE SUPPLY THE CASE STUDIES

Mid-tier entertainment shows and Outside of the Augusta Marriott at the The analysis of comparable arenas concerts are generating strong Convention Center, the Augusta area around the country highlighted that demand in the Augusta area. Touring lacks quality, large meeting and the inclusion of modern amenities, routes for major shows and concerts entertainment facilities. especially premium spaces and will affect this demand, but market seating, whether as enclosed suites, professionals believe that a new, The supply of relevant competitive or open spaces, is a key to the larger and improved arena will be arenas is abundant outside of a two- success of arena development. The able to strongly compete as a hour drive from Augusta. The majority of the comparable arenas secondary venue to host more and competitive arenas are located in had sports tenants. These tenants larger events. Many shows need an major cities, university towns, and help with event demand and the end-stage capacity of 10,000 and so coastal areas. sale of premium options, as well as this drives design. naming rights. The reality is that the competitive The Convention Center is unable to Flexibility is another common theme accommodate all the demand from facilities are newer, higher quality and in new arena development. The regional organizations, religious offer more options than the JBA. If ability to host a diverse mix of event groups, state associations, and lost Augusta does nothing, it will fall types will enhance the chances of an business looking for meeting space. further behind. arena’s success.

9 Recommendations

A key development of the proposed recommendations is the inclusion of an outdoor event space/festival area that could be programmed for local community events or ancillary entertainment events to the events happening at the new arena or the Bell Auditorium. Due to this, HSP analyzed outdoor event spaces adjacent to major entertainment/event facilities around the country to better understand how these spaces increase community engagement and provide additional event days for the complex. Some key points from this analysis include: § Retail/Restaurant § Public Art § Indoor/Outdoor Flexibility § Walkability/Connection § Community Presence/Theme § Shade structures and greenspace to soften the urban fabric § Year-round programming of activities and events on the plaza to keep the complex activated

11 12 Naming Rights: Recommended

12 Recommendation 13 Scenarios Recommendations The primary recommendation for the development of the new James Brown Components Primary Secondary Arena includes the development of Arena rentable meeting space. This meeting End-Stage Capacity 10,000+ 10,000+ space will provide a connection from the Lower Bowl Capacity 6,500 6,500 James Brown Arena to the Bell Premium Seats 1,050 1,050 Auditorium. Suites 12 12 The secondary recommendation mimics Meeting Space (Bell Auditorium Connection) the preferred recommendation, without Ballroom (sf) 20,000 -- meeting space. Meeting Rooms 12 -- Meeting Rooms (sf) 1,200 -- Each recommendation includes a Boardroom (sf) 500 -- connection of the JBA to the Bell and an outdoor entertainment/festival area Other between the JBA and the Bell. Connection to Bell Auditorium Yes Yes Outdoor Event Plaza Yes Yes

Source: Hunden Strategic Partners, S.P.A.C.E, Perkins & Will

13 Projections With Meeting Space

14 Arena Projection & Proforma Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Events by Type Graduations 7 7 7 7 7 7 7 7 7 7 Conferences/Conventions 12 15 18 21 24 24 24 24 24 24 Concerts 11 11 10 10 10 10 10 10 10 10 Family Shows 23 23 23 23 23 23 23 23 23 23 Sports 8 11 14 15 15 15 15 15 15 15 Consumer Shows 4 6 8 10 10 10 10 10 10 10 Community Events 4 6 8 8 8 8 8 8 8 8 Banquets 40 64 88 112 112 112 112 112 112 112 Meetings 72 84 96 108 120 120 120 120 120 120 Total 181 227 272 314 329 329 329 329 329 329

Rental Hours ------

Event Days by Type Graduations 7 7 7 7 7 7 7 7 7 7 Conferences/Conventions 30 38 45 53 60 60 60 60 60 60 Concerts 11 11 10 10 10 10 10 10 10 10 Family Shows 23 23 23 23 23 23 23 23 23 23 Sports 12 17 21 23 23 23 23 23 23 23 Consumer Shows 10 15 20 25 25 25 25 25 25 25 Community Events 4 6 8 8 8 8 8 8 8 8 Banquets 40 64 88 112 112 112 112 112 112 112 Meetings 94 109 125 140 156 156 156 156 156 156 Total 231 289 347 400 424 424 424 424 424 424

Source: Hunden Strategic Partners

Arena The arena and meeting space complex is expected to host more than 300 events Events & Event Days per year during stabilization. Majority of these events are expected to be banquets and meetings. Arena Projection & Proforma Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Average Attendance by Event Type Graduations 6,750 6,750 6,750 6,750 6,750 6,750 6,750 6,750 6,750 6,750 Conferences/Conventions 200 200 200 200 200 200 200 200 200 200 Concerts 5,750 5,750 5,750 5,750 5,750 5,750 5,750 5,750 5,750 5,750 Family Shows 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 Sports 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Consumer Shows 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800 Community Events 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 Banquets 180 180 180 180 180 180 180 180 180 180 Meetings 45 45 45 45 45 45 45 45 45 45

Total Attendance by Event Type Graduations 47,250 47,250 47,250 47,250 47,250 47,250 47,250 47,250 47,250 47,250 Conferences/Conventions 2,400 3,000 3,600 4,200 4,800 4,800 4,800 4,800 4,800 4,800 Concerts 63,250 63,250 57,500 57,500 57,500 57,500 57,500 57,500 57,500 57,500 Family Shows 57,500 57,500 57,500 57,500 57,500 57,500 57,500 57,500 57,500 57,500 Sports 8,000 11,000 14,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 Consumer Shows 11,200 16,800 22,400 28,000 28,000 28,000 28,000 28,000 28,000 28,000 Community Events 9,600 14,400 19,200 19,200 19,200 19,200 19,200 19,200 19,200 19,200 Banquets 7,200 11,520 15,840 20,160 20,160 20,160 20,160 20,160 20,160 20,160 Meetings 3,240 3,780 4,320 4,860 5,400 5,400 5,400 5,400 5,400 5,400 Total 209,640 228,500 241,610 253,670 254,810 254,810 254,810 254,810 254,810 254,810

Source: Hunden Strategic Partners

Arena Attendance HSP projects that the arena and meeting space complex will attract approximately 254,000 attendees in the stabilized year. Most attendees are expected to come from concerts, family shows and graduations. Arena Projection & Proforma Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Arena-Only Proforma (does not include Bell Auditorium)

Revenue (000s) - Arena Only Rent/Net Ticket Rev $ 691 $ 804 $ 894 $ 994 $ 1,023 $ 1,041 $ 1,059 $ 1,078 $ 1,096 $ 1,115 Premium Seating $ 531 $ 536 $ 540 $ 544 $ 555 $ 537 $ 547 $ 558 $ 569 $ 581 Net Concessions/Catering $ 791 $ 923 $ 1,029 $ 1,158 $ 1,193 $ 1,217 $ 1,241 $ 1,266 $ 1,291 $ 1,317 Net Parking $ 151 $ 154 $ 150 $ 153 $ 156 $ 159 $ 162 $ 165 $ 168 $ 172 Naming Rights $ 275 $ 281 $ 286 $ 292 $ 298 $ 304 $ 310 $ 316 $ 322 $ 329 Advertising & Sponsorship (net) $ 260 $ 265 $ 271 $ 276 $ 281 $ 287 $ 293 $ 299 $ 305 $ 311 Facility Service Fee $ 386 $ 403 $ 403 $ 414 $ 422 $ 431 $ 439 $ 448 $ 457 $ 466 Other $ 54 $ 59 $ 63 $ 68 $ 70 $ 71 $ 72 $ 74 $ 75 $ 76 Total $ 3,138 $ 3,424 $ 3,635 $ 3,899 $ 3,998 $ 4,045 $ 4,123 $ 4,203 $ 4,284 $ 4,367

Expenses (000s) - Arena Only Salaries, Wages & Benefits $ 1,615 $ 1,647 $ 1,680 $ 1,714 $ 1,748 $ 1,783 $ 1,819 $ 1,855 $ 1,892 $ 1,930 General & Admin $ 255 $ 260 $ 265 $ 270 $ 275 $ 281 $ 287 $ 292 $ 298 $ 304 Utllities $ 466 $ 475 $ 485 $ 494 $ 504 $ 514 $ 525 $ 535 $ 546 $ 557 Repairs & Maintenance $ 257 $ 262 $ 268 $ 273 $ 278 $ 284 $ 290 $ 296 $ 301 $ 307 Insurance $ 180 $ 184 $ 188 $ 191 $ 195 $ 199 $ 203 $ 207 $ 211 $ 216 Advertising & Other $ 91 $ 93 $ 95 $ 97 $ 99 $ 101 $ 103 $ 105 $ 107 $ 109 Management Fee $ 212 $ 216 $ 221 $ 225 $ 229 $ 234 $ 239 $ 244 $ 248 $ 253 Total $ 3,077 $ 3,138 $ 3,201 $ 3,265 $ 3,330 $ 3,397 $ 3,465 $ 3,534 $ 3,605 $ 3,677

Net Operating Income $ 62 $ 286 $ 434 $ 634 $ 668 $ 648 $ 659 $ 669 $ 679 $ 690

Reserves (Authority Funded) $ 126 $ 137 $ 145 $ 156 $ 160 $ 162 $ 165 $ 168 $ 171 $ 175

Source: Hunden Strategic Partners

HSP projects that the arena and meeting space complex will generate total Arena annual revenue of $3.1 million in Year 1 and increase revenues to more than $4.3 Pro Forma million by Year 10. Expenses are projected to total more than $3 million in Year 1 and increase to more than $3.6 million by the end of the period. Current and Future JBA/Bell Complex Revenue & Expense - With Added Ballroom/Meeting Complex

2019 Actual (000s) New Arena Developed (as if 2019 dollars) (000s) JBA % Bell % Total Arena % Bell % Total Revenue Rent/Net Ticket Rev $ 200 51%$ 192 49%$ 392 $ 691 83%$ 144 17%$ 835 Premium Seating $ 103 100% $ - 0%$ 103 $ 531 100% $ - 0%$ 531 Net Concessions/Catering $ 292 49%$ 303 51%$ 596 $ 791 49%$ 227 22%$ 1,018 Net Parking $ 74 61%$ 47 39%$ 121 $ 151 61%$ 35 19%$ 186 Naming Rights $ - 0% $ - 0% $ - $ 275 0% $ - 0%$ 275 Advertising & Sponsorship (net) $ 120 60%$ 81 40%$ 201 $ 260 60%$ 61 19%$ 321 Facility Service Fee $ 168 40%$ 257 60%$ 425 $ 386 40%$ 193 33%$ 579 Other $ 12 32%$ 26 68%$ 38 $ 54 32%$ 20 27%$ 73 Total $ 969 52%$ 906 48%$ 1,876 $ 3,138 82%$ 680 18%$ 3,818

Expenses (000s) - Arena Only Salaries, Wages & Benefits $ 775 55%$ 642 45%$ 1,417 $ 1,615 77%$ 475 23% $ 2,090 General & Admin $ 160 61%$ 103 39%$ 263 $ 255 71%$ 103 29% $ 358 Utllities $ 180 67%$ 88 33%$ 268 $ 466 84%$ 88 16% $ 554 Repairs & Maintenance $ 116 78%$ 32 22%$ 148 $ 257 89%$ 32 11% $ 289 Insurance $ 80 70%$ 35 30%$ 115 $ 180 84%$ 35 16% $ 215 Advertising & Other $ 2 67% $ 1 33% $ 3 $ 91 99% $ 1 1% $ 92 Management Fee $ 135 54%$ 113 46%$ 248 $ 212 65%$ 113 35% $ 325 $ 1,448 59% $ 1,014 41% $ 2,462 $ 3,077 78% $ 847 22% $ 3,924 Net Operating Income $ (479) $ (108) $ (586) $ 62 $ (168) $ (106)

Source: Hunden Strategic Partners

Complex HSP projects that the complex of the new James Brown Arena, the attached meeting space, and the Bell Auditorium, will generate revenue of roughly $3.8 Pro Forma million in Year 1. Expenses are projected to total over $3.9 million in Year 1 for a net loss of roughly $106,000. Summary of 30-Yr. Summary of Impacts 30-Year Impacts Net New Spending (millions) Direct $951 Indirect $369 The Project is expected to generate roughly Induced $206 $1.5 billion in net new spending, $656 million Total $1,526 in net new earnings and 621 new full-time equivalent jobs at stabilization. Net New Earnings (millions) From Direct $446 Capturable fiscal impact is expected to total From Indirect $126 approximately $36 million from sales, hotel and beverage taxes. From Induced $84 Total $656 Net New FTE Jobs Actual From Direct 380 From Indirect 154 From Induced 86 Total 621

Capturable Taxes (millions) Sales Tax (4.0%) $22.1 SPLOST (1.0%) $5.5 Hotel Tax (6.0%) $5.1 Beverage Tax (3.0%) $3.3 Total $36.0

Source: Hunden Strategic Partners

19 Projections Without Meeting Space

20 Arena Projection & Proforma Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Events by Type Graduations 7 7 7 7 7 7 7 7 7 7 Conferences/Conventions ------Concerts 10 10 9 9 9 9 9 9 9 9 Family Shows 23 23 23 23 23 23 23 23 23 23 Sports 7 8 9 9 9 9 9 9 9 9 Consumer Shows 1 2 3 4 4 4 4 4 4 4 Community Events 2 3 4 4 4 4 4 4 4 4 Banquets 6 8 9 10 11 11 11 11 11 11 Meetings and Other 12 18 24 27 30 30 30 30 30 30 Total 68 79 88 93 97 97 97 97 97 97

Rental Hours ------

Event Days by Type Graduations 7 7 7 7 7 7 7 7 7 7 Conferences/Conventions ------Concerts 10 10 9 9 9 9 9 9 9 9 Family Shows 23 23 23 23 23 23 23 23 23 23 Sports 14 16 18 18 18 18 18 18 18 18 Consumer Shows 3 5 8 10 10 10 10 10 10 10 Community Events 2 3 4 4 4 4 4 4 4 4 Banquets 6 8 9 10 11 11 11 11 11 11 Meetings and Other 12 18 24 27 30 30 30 30 30 30 Total 77 90 102 108 112 112 112 112 112 112

Source: Hunden Strategic Partners

Arena The arena is expected to host between roughly 70 and 100 events per year Events & Event Days during the first 10 years of operation. Majority of these events are projected to be family shows and meetings/other. Arena Projection & Proforma Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Average Attendance by Event Type Graduations 6,750 6,750 6,750 6,750 6,750 6,750 6,750 6,750 6,750 6,750 Conferences/Conventions 37 37 37 37 37 37 37 37 37 37 Concerts 5,750 5,750 5,750 5,750 5,750 5,750 5,750 5,750 5,750 5,750 Family Shows 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 Sports 900 900 900 900 900 900 900 900 900 900 Consumer Shows 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 2,600 Community Events 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 Banquets 115 115 115 115 115 115 115 115 115 115 Meetings and Other 30 30 30 30 30 30 30 30 30 30

Total Attendance by Event Type Graduations 47,250 47,250 47,250 47,250 47,250 47,250 47,250 47,250 47,250 47,250 Conferences/Conventions ------Concerts 57,500 57,500 51,750 51,750 51,750 51,750 51,750 51,750 51,750 51,750 Family Shows 57,500 57,500 57,500 57,500 57,500 57,500 57,500 57,500 57,500 57,500 Sports 6,300 7,200 8,100 8,100 8,100 8,100 8,100 8,100 8,100 8,100 Consumer Shows 2,600 5,200 7,800 10,400 10,400 10,400 10,400 10,400 10,400 10,400 Community Events 4,800 7,200 9,600 9,600 9,600 9,600 9,600 9,600 9,600 9,600 Banquets 690 920 1,035 1,150 1,265 1,265 1,265 1,265 1,265 1,265 Meetings and Other 360 540 720 810 900 900 900 900 900 900 Total 177,000 183,310 183,755 186,560 186,765 186,765 186,765 186,765 186,765 186,765

Source: Hunden Strategic Partners

Arena Attendance HSP projects that the arena will attract approximately 187,000 attendees in the stabilized year. Most attendees are expected to come from graduations, concerts, consumer shows, family shows and community events. Arena Projection & Proforma Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Arena-Only Proforma (does not include Bell Auditorium)

Revenue (000s) - Arena Only Rent/Net Ticket Rev $ 517 $ 561 $ 580 $ 615 $ 627 $ 638 $ 649 $ 660 $ 672 $ 683 Premium Seating $ 531 $ 536 $ 540 $ 544 $ 555 $ 537 $ 547 $ 558 $ 569 $ 581 Net Concessions/Catering $ 570 $ 595 $ 588 $ 605 $ 620 $ 632 $ 645 $ 658 $ 671 $ 684 Net Parking $ 144 $ 147 $ 142 $ 145 $ 148 $ 151 $ 154 $ 157 $ 160 $ 163 Naming Rights $ 250 $ 255 $ 260 $ 265 $ 271 $ 276 $ 282 $ 287 $ 293 $ 299 Advertising & Sponsorship (net) $ 250 $ 255 $ 260 $ 265 $ 271 $ 276 $ 282 $ 287 $ 293 $ 299 Facility Service Fee $ 364 $ 374 $ 366 $ 374 $ 381 $ 389 $ 396 $ 404 $ 412 $ 421 Other $ 45 $ 47 $ 47 $ 49 $ 50 $ 50 $ 51 $ 52 $ 53 $ 54 Total $ 2,671 $ 2,770 $ 2,783 $ 2,863 $ 2,922 $ 2,948 $ 3,005 $ 3,064 $ 3,123 $ 3,184

Expenses (000s) - Arena Only Salaries, Wages & Benefits $ 1,425 $ 1,454 $ 1,483 $ 1,512 $ 1,542 $ 1,573 $ 1,605 $ 1,637 $ 1,670 $ 1,703 General & Admin $ 222 $ 226 $ 231 $ 236 $ 240 $ 245 $ 250 $ 255 $ 260 $ 265 Utllities $ 362 $ 369 $ 377 $ 384 $ 392 $ 400 $ 408 $ 416 $ 424 $ 433 Repairs & Maintenance $ 203 $ 207 $ 211 $ 215 $ 220 $ 224 $ 229 $ 233 $ 238 $ 243 Insurance $ 140 $ 143 $ 146 $ 149 $ 152 $ 155 $ 158 $ 161 $ 164 $ 167 Advertising & Other $ 74 $ 75 $ 77 $ 79 $ 80 $ 82 $ 83 $ 85 $ 87 $ 88 Management Fee $ 187 $ 191 $ 195 $ 198 $ 202 $ 206 $ 211 $ 215 $ 219 $ 223 Total $ 2,613 $ 2,665 $ 2,719 $ 2,773 $ 2,828 $ 2,885 $ 2,943 $ 3,002 $ 3,062 $ 3,123

Net Operating Income $ 58 $ 104 $ 65 $ 90 $ 93 $ 63 $ 63 $ 62 $ 62 $ 61

Reserves (Authority Funded) $ 107 $ 111 $ 111 $ 115 $ 117 $ 118 $ 120 $ 123 $ 125 $ 127

Source: Hunden Strategic Partners

Arena HSP projects that the arena will generate total annual revenue of nearly $2.7 Pro Forma million in Year 1. Expenses are projected to total roughly $2.6 million in Year 1 for a net income of $58,000. Current and Future JBA/Bell Complex Revenue & Expense

2019 Actual (000s) New Arena Developed (as if 2019 dollars) (000s) JBA % Bell % Total Arena % Bell % Total Revenue Rent/Net Ticket Rev $ 200 51%$ 192 49%$ 392 $ 517 78%$ 144 22%$ 661 Premium Seating $ 103 100% $ - 0%$ 103 $ 531 100% $ - 0%$ 531 Net Concessions/Catering $ 292 49%$ 303 51%$ 596 $ 570 49%$ 227 29%$ 797 Net Parking $ 74 61%$ 47 39%$ 121 $ 144 61%$ 35 20%$ 179 Naming Rights $ 250 0% $ - 0% $ - $ 250 0% $ - 0%$ 250 Advertising & Sponsorship (net) $ 120 60%$ 81 40%$ 201 $ 250 60%$ 61 20%$ 311 Facility Service Fee $ 168 40%$ 257 60%$ 425 $ 364 40%$ 193 35%$ 557 Other $ 12 32%$ 26 68%$ 38 $ 45 32%$ 20 30%$ 65 Total $ 1,219 65%$ 906 48%$ 1,876 $ 2,671 80%$ 680 20%$ 3,351

Expenses (000s) - Arena Only Salaries, Wages & Benefits $ 775 55%$ 642 45%$ 1,417 $ 1,425 75%$ 475 25% $ 1,900 General & Admin $ 160 61%$ 103 39%$ 263 $ 222 68%$ 103 32% $ 325 Utllities $ 180 67%$ 88 33%$ 268 $ 362 80%$ 88 20% $ 450 Repairs & Maintenance $ 116 78%$ 32 22%$ 148 $ 203 86%$ 32 14% $ 235 Insurance $ 80 70%$ 35 30%$ 115 $ 140 80%$ 35 20% $ 175 Advertising & Other $ 2 67% $ 1 33% $ 3 $ 74 99% $ 1 1% $ 75 Management Fee $ 135 54%$ 113 46%$ 248 $ 187 62%$ 113 38% $ 300 $ 1,448 59% $ 1,014 41% $ 2,462 $ 2,613 76% $ 847 24%$ 3,460 Net Operating Income $ (229) $ (108) $ (586) $ 58 $ (168) $ (109)

Source: Hunden Strategic Partners

Complex HSP projects that the complex of the new James Brown Arena and the Bell Pro Forma Auditorium will generate total annual revenue of $3.4 million in Year 1. Expenses are projected to total nearly $3.5 million in Year 1 for a net loss of $109,000. Summary of 30-Yr. Summary of Impacts Net New Spending (millions) 30-Year Impacts Direct $633 Indirect $245 The Project is expected to generate over $1 Induced $138 billion in net new spending, $436 million in Total $1,016 net new earnings and 420 new full-time equivalent jobs at stabilization. Net New Earnings (millions) From Direct $298 Capturable fiscal impact is expected to total From Indirect $82 approximately $23 million from sales, hotel From Induced $56 and beverage taxes. Total $436 Net New FTE Jobs Actual From Direct 257 From Indirect 104 From Induced 58 Total 420

Capturable Taxes (millions) Sales Tax (4.0%) $15.0 SPLOST (1.0%) $3.7 Hotel Tax (6.0%) $2.7 Beverage Tax (3.0%) $2.0 Total $23.4

Source: Hunden Strategic Partners 25 Chapter 1: Situation Analysis

26 Project Orientation

The Coliseum Authority is seeking to identify the market demand financial feasibility and impact of a new arena in Augusta. S.P.A.C.E. Venues, Hunden Strategic Partners and Perkins + Will are analyzing historical performance at the existing James Brown arena as well as current market realities and trends in mid-size arena development throughout the country. AECOM completed a feasibility and economic impact study in 2015. This study serves as an update to their findings.

27 28 The Site

The site of the new arena will be located on the existing arena site. TELFAIR ST. The site is located roughly 0.5 miles from the Augusta Convention Center 8TH STREET 7TH STREET 6TH STREET and other downtown amenities. The site will replace the existing James WALKER ST. Brown Arena, and will have a connection to the Bell Auditorium.

JAMES BROWN BLVD. BROWN JAMES WATKINS ST.

FENWICK ST.

CONCEPT DESIGN - AUGUST 2020 OVERALL SITE PLAN JAMES BROWN ARENA 23

28 James Brown Arena Profile

The James Brown Arena features 8,000 seats and was opened in 1974. Capacities can be adjusted for basketball, hockey and concert events. In addition to the arena bowl, the venue offers meeting space for local groups and community events. The arena has been home to several sports tenants in the ECHL, SPHL and indoor football leagues. However, the arena currently has no anchor tenants and mainly supports graduations, meetings and concerts. Technology in the arena has become outdated and overall capacity could and should be increased due to overall growth in the region and competitive and comparable arenas in the market.

29 James Brown Arena Visitor Profile

James Brown Arena visitors are compared to the MSA population in the adjacent table, which include data from Alexander Babbage. Education and income levels are higher for the arena visitors. The average age of those attending events is slightly lower than the MSA.

30 James Brown Arena Visitor Profile

An index of less than 100 means that the location gets less than its “fair share” compared to the MSA. The data show that the JBA is drawing beyond the metro area and index higher than 100% for those aged 18-54. It is more likely that those coming to events have a household income under $100,000 per year. One caveat: the data is based on the demographics of the zip code where the cell phone is based, which can suggest some high variability in the data versus the reality. For example, if an 18-year old from a high-income, high-education zip code goes to a concert, it will indicated the characteristics of the zip code of the household where the 18- year old lives. 31 James Brown Arena Visitor Profile

The top ten zip codes for purchasing event tickets are show in the adjacent map. Columbia County and northwest Augusta has the highest rate of purchases.

32 James Brown Arena Visitor Profile

Similar to the previous map, this map illustrates the total ticket pool color- coded according to the percent of the population within each ZIP code that regularly attends events at James Brown Arena.

33 James Brown Events

by Type James Brown Arena Events by Type Event 2015 2016 2017 2018 2019 Total Graduations and meeting room rentals Graduations 7 9 10 9 7 42 are the most common events at the Meeting Rooms 3 8 6 9 14 40 James Brown arena, but generate Futurity 7 7 7 7 7 35 relatively low revenues compared to Minor Concerts 3 10 5 5 4 27 other events. Consumer Shows 6 6 5 4 4 25 Disney on Ice -- 6 -- 6 6 18 Circus Shows 6 -- 5 -- 6 17 Major Concerts 5 6 2 2 1 16 Charity/Community Events 2 4 2 1 5 14 Monster Trucks 2 2 2 2 2 10 Cirque du Doleil ------6 6 WWE 1 1 2 -- 1 5 Globetrotters 1 1 1 1 1 5 Bull Riding 1 1 1 1 1 5 Comedy -- -- 2 1 1 4 Banquets 2 1 ------3 Cheerleading 1 1 ------2 Spring Social ------1 1 2 Total 47 63 50 49 67

Source: Spectra

34 James Brown Arena

Attendance by Type James Brown Arena Attendance by Type Event 2015 2016 2017 2018 2019 Total Graduations attract over three times as Graduations 54,000 76,027 67,569 40,200 43,146 280,942 many visitors as the next largest Major Concerts 26,120 31,527 11,394 11,779 6,365 87,185 category. However, graduation Minor Concerts 8,374 18,381 16,361 18,006 13,528 74,650 attendance will not generate ticket Disney on Ice -- 16,551 -- 14,089 14,331 44,971 revenues like concerts and family shows. Consumer Shows 7,616 10,883 11,382 7,269 6,310 43,460 Charity/Community Events 7,497 12,542 7,930 5,599 7,515 41,083 Monster Trucks 6,382 5,666 7,566 6,441 6,740 32,795 Circus Shows 17,136 -- 7,012 -- 1,408 25,556 Bull Riding 3,880 3,640 3,133 3,660 3,240 17,553 WWE 4,609 3,690 6,031 -- 3,211 17,541 Futurity 1,553 5,500 1,028 4,500 4,500 17,081 Comedy -- -- 6,879 2,921 4,499 14,299 Globetrotters 3,986 3,855 2,493 2,293 1,546 14,173 Banquets 5,005 5,700 ------10,705 Meeting Rooms 1,460 3,500 1,950 1,700 1,995 10,605 Spring Social ------4,500 4,041 8,541 Cirque du Doleil ------7,281 7,281 Cheerleading 2,046 1,823 ------3,869 Total 149,664 199,285 150,728 122,957 129,656

Source: Spectra

35 James Brown Arena Attendance per Event James Brown Attendance per Event Major concerts and graduations Event 2015 2016 2017 2018 2019 Average generate the attendance per event at Graduations 7,714 8,447 6,757 4,467 6,164 6,710 the arena, while meeting rooms attract Major Concerts 5,224 5,255 5,697 5,890 6,365 5,686 Spring Social ------4,500 4,041 4,271 an average of just over 300 attendees. Banquets 2,503 5,700 ------4,101 WWE 4,609 3,690 3,016 -- 3,211 3,631 Comedy -- -- 3,440 2,921 4,499 3,620 Charity/Community Events 3,749 3,136 3,965 5,599 1,503 3,590 Bull Riding 3,880 3,640 3,133 3,660 3,240 3,511 Monster Trucks 3,191 2,833 3,783 3,221 3,370 3,280 Minor Concerts 2,791 1,838 3,272 3,601 3,382 2,977 Globetrotters 3,986 3,855 2,493 2,293 1,546 2,835 Disney on Ice -- 2,759 -- 2,348 2,389 2,498 Cheerleading 2,046 1,823 ------1,935 Consumer Shows 1,269 1,814 2,276 1,817 1,578 1,751 Circus Shows 2,856 -- 1,402 -- 235 1,498 Cirque du Doleil ------1,214 1,214 Futurity 222 786 147 643 643 488 Meeting Rooms 487 438 325 189 143 316

Source: Spectra

36 James Brown Arena Lost Business

The arena average nearly 40 lost events annually over the three-year period. Reasons provided included location, meeting space available and rates. James Brown Arena Lost Business 2017 2018 2019 Average Total Lost Events 53 27 31 37 Total Lost Attendees 14,030 7,636 8,168 9,945 Total Lost Room Nights 17,223 10,882 11,116 13,074

Source: Visit Augusta

37 Augusta-Richmond Coliseum Authority Income Statement Augusta-Richmond County Coliseum Authority Income Statement 2016 2017 2018 2019 The existing James Brown Arena has Operating Revenue been operating at an annual operating Coliseum and auditorium service charges $5,281,994 $3,841,219 $3,073,601 $3,749,789 loss between roughly $667,000 and $907,000 million over the previous four Operating Expenses years. Personnel costs $2,046,223 $1,817,398 $1,880,418 $2,224,904 Utilities $368,484 $358,345 $340,611 $331,165 Materials and supplies $214,068 $97,429 $111,694 $92,304 Repairs and maintenance $110,717 $116,732 $117,377 $115,851 Motor equipment services $13,883 $11,301 $0 $0 Contractual services $2,868,719 $1,979,818 $1,157,693 $1,424,654 General services $326,410 $324,484 $372,592 $408,564

Total Operating Expenses $5,948,504 $4,705,507 $3,980,385 $4,597,442

Operating Loss ($666,510) ($864,288) ($906,784) ($847,653)

Source: Augusta-Richmond County Coliseum Authority

38 The Bell Auditorium

The adjacent table lists events at the James Brown Arena that could be The Bell Supportable Events supported at The Bell Auditorium if the Average Attendance per arena were to be closed during Event at JBA (2015 - 2019) construction. Event Graduations 6,710 Spring Social 4,271 Banquets 4,101 Comedy 3,620 Charity/Community Events 3,590 Minor Concerts 2,977 Consumer Shows 1,751 Meeting Rooms 316

Source: Spectra

39 Augusta CC Overview The Augusta Convention Center, located in downtown Augusta, opened in 2013. The Augusta Convention Center is a major driver of tourism to the area. The property sits on the Augusta Riverwalk and is attached to two Marriott properties that provide 372 hotel rooms.

HSP analyzed the current space that the center offers and interviewed CVB members to determine if there is additional opportunities for meetings in the Augusta market. Based on conversations, HSP believes that there is significant demand from groups that can’t fit in the Augusta Convention Center or from groups that need more of a specialized space rather than the Augusta Convention Center.

40 Augusta CC Space Breakdown The Augusta Convention Center has roughly 62,000 square feet of total sellable space. This sellable space is broken down into 37,658 square feet of exhibit space, 10,758 square feet of ballroom space, and 10 meeting rooms that equate to 13,803 square feet of meeting room space. The Augusta Convention Center is a quality facility that anchors the northeast part of downtown Augusta and is a large driver of tourism to the area. However, based off interviews with stakeholders and members of the Augusta CVB, analysis of the CVB lost business reports, and the location of the proposed James Brown Arena, HSP believes a complex, connecting the JBA and the Bell Auditorium, with larger and more flexible meeting space than the Augusta Convention Center would capture additional demand and bring new tourism to Augusta.

41 Interview Feedback – Visit Augusta

Conversations with Visit Augusta are summarized below: § There are several major conferences in Augusta that are outgrowing the Marriott including Tech Net and United Methodist.More multipurpose and flexible arena space could help to host such events. § The growing arts/entertainment scene should be a focus for the new arena. § Macon and Athens are considered the most direct competitors to Augusta for marketing purposes. § Collaboration between the new arena and convention center will be important. Ideally, the new arena will provide high tech spaces and breakout rooms while the convention center will remain the same. § Events have been lost in the past due to a lack of flexibility at the Marriott and the convention center.

42 Augusta CVB - Meeting Space Requirements

Total Exhibit Ballroom # of Meeting Meeting Room Organization Attendees SF SF Rooms Capacity Notes North Georgia United Methodist 4,000 ------AKA Sorority 3,500 -- 52,500 ------Georgia Republican Party 3,000 ------Use ATL - larger facilities and more parking WIDA 2,100 -- 30,000 -- 20-150 -- Gathering of Christ Church 2,000 ------Augusta CC too expensive GSTA 1,750 22,000 4,500 19 50-200 -- NNEP 1,000 25,000 -- 4 100+ -- GACS 1,000 46,000 -- 5 -- Marriott Space too intensive NFA 300 18,000 -- -- 25-100 -- GRPA -- 28,000 6,000 7 50-100 -- Source: Augusta CVB

HSP worked with the Augusta CVB to better understand their current events and lost business. This analysis and the analysis of Visit Augusta Meeting the current space that the Augusta Convention Center offers, Space Needs was used to recommend the meeting space at the new James Brown Arena complex. Up to 4,000 attendees and 50,000 square feet of meeting space would accommodate the largest event requests that the CVB receives. Interview Feedback – Economic Development Conversations with Augusta Economic Development are summarized below: § Healthcare and technology industries are growing rapidly in Augusta. § The US Army Cyber Command Center is bringing 4,800 soldiers and families (17,000 total) to Augusta. This development features $1.6 billion in construction costs. Additionally, the Navy, National Guard and Air Force are also moving some operations to the center. § The State of Georgia put $100M into the tech campus with two buildings of class A office space. § A 45-minute drive from the cyber center has a population of over 1M people. § Augusta has 3 – 4 projects unannounced to the public that would be likely suite holders at a new arena.

44 Interview Feedback – Augusta Marriott Conversations with the Augusta Marriott are summarized below: § The Augusta Marriott reported a RevPAR (revenue per available room) of $136 in January. § Marriott representatives would like to see an arena similar to Colonial Life Arena in Columbia, SC in terms of capacity to attract large tours. § Musical acts at the existing James Brown Arena like the proximity and amenities of the Marriott. § It is not believed that more rooms could be supported in the market. § Parking at the arena is an issue, but more people are finding alternatives to driving such as public transportation and ridesharing. § The hotel currently hosts some youth sports groups, but it is not one of their larger segments.

45 Chapter 2: Economic and Demographic Analysis

46 How do Economic, Demographic and Tourism Impact Various Project Types?

Every element of a community has some impact, either directly or indirectly, on the potential for a new destination asset. § Meeting facilities have a similar relationship to an area as hotels, though the local population is more likely to utilize meeting space than to stay in a hotel, so the presence of local associations and corporations will drive some demand to meeting facilities. Local companies and universities will also drive events. Proximity to major attractions, roads and airports will help meeting facilities. § Hotels rely heavily on tourism (leisure) and corporate visitation to a given area in order to fill rooms throughout the week. Typically, the presence of more and larger corporations in an area will drive weekday occupancy and leisure travelers will be more common during the weekends, though some overlap is to be expected.A more robust local economy helps support group business in hotels. § Sports facilities rely on accessibility to major population areas with strong incomes, as tend to locate in suburban areas, where land is plentiful and less expensive for the vast acreage needed for facilities and parking. § Retail/Restaurant is highly influenced by the median household income (HHI) and, therefore, employment in an area. There is also an important relationship between the cost of living in an area (housing, etc.) and median HHI as it points to what level of discretionary income is available for residents to spend on dining and non-essential retail goods. § Entertainment facilities typically rely on a large local and regional population (depending on size and nature of facility) and the spending power thereof. Demographics of residents (age, spending behaviors, etc.) will also affect the programming and potential success on an entertainment facility. 47 Augusta Overview

Augusta is a consolidated city-county that is located on Savannah River in central eastern Georgia. Augusta is the second largest city in Georgia and brings over 200,000 visitors from across the world when it hosts The Masters golf tournament at Augusta National Golf Club each spring. The city is also home to Fort Gordon, a major U.S. army base, and the Georgia Cryptologic Center of the National Security Agency. For leisure, residents and visitors can visit the Augusta Riverwalk, Savannah Rapids Park, Augusta Museum of History, several historical buildings and sites, and other attractions.

48 Demographic Analysis

49 Population and Growth Rates

Population Percent Change 2000 2010 2019 2024 Projected 2010 - 2019 United States 281,421,906 308,745,538 330,088,686 343,954,683 6.9% Georgia 8,186,453 9,687,653 10,655,025 11,253,742 10.0% South Carolina 4,012,012 4,625,364 5,148,714 5,526,057 11.3% Augusta-Richmond County, GA-SC MSA 508,032 564,873 622,778 655,330 10.3% Richmond County 199,775 200,549 206,785 209,061 3.1% Aiken County, SC 142,552 160,099 174,183 182,061 8.8% Columbia County, GA 89,288 124,053 158,412 179,189 27.7% Augusta 195,484 195,824 202,119 204,441 3.2%

Source: U.S. Census Bureau

The Augusta Metropolitan area grew by approximately 10.3 percent from 2010 to 2019 and is currently home to 623,000 people, of which 530,000 Population reside within the counties of Richmond and Columbia in Georgia, and Aiken in South Carolina. Columbia County is the 40th fastest growing county in the nation, gaining 34,000 in nine years. Since 2010, the metro has grown by 58,000, and is projected to grow by another 33,000 by 2024. Regional Drive- Times The city is the economic and cultural center of an area an hour in almost any direction comprising 862,500 people, averaging $52,250 per household annually. Residing within a two-hour drive are 3,189,000, and a three-hour drive captures Atlanta, Charlotte, Greenville, Charleston and Savannah, totaling over 15,000,000. Augusta is the largest urban complex within a one-hour drive-time of downtown. Four-lane highways bring long-distance travelers from Atlanta, Columbia, Macon, Savannah by way of Statesboro. Direct high-speed access from the Greenville and Uplands region and Charleston area is hampered by an outdated two-lane road network, and thus, Interstate 20 is the only true long- distance highway through Augusta. 51 Population Distribution

The Southeastern U.S. is not known for large cosmopolitan centers outside of Atlanta and Charlotte, however, as this nighttime light-sensitivity map illustrates, cities and towns cover the landscape, and the combined rural and mid-sized urban populations are far more substantial than it generally gets credited by outsiders. Many of the cities on this map are experiencing rapid growth, especially the larger urban areas, yet their growth is “flying under the radar" of national awareness. The television markets of Georgia and the Carolinas are show, with Augusta’s market outlined in red. The urban area’s sprawl is evident and appears to be similar in size to Savannah, Macon, and other cities, with room to grow. 52 Income, Spending and Other Demographic Data

Category United States Georgia Richmond County Columbia County, GA Aiken County, SC Homeownership rate, 2014-2018 63.8% 63.1% 53.3% 79.0% 71.7% Median value of owner-occupied housing units, 2014-2018 $204,900 $166,800 $104,700 $192,200 $142,200 Persons per household, 2014-2018 2.63 2.71 2.65 3.13 2.46 Median household income, 2014-2018 $60,293 $55,679 $40,644 $76,938 $50,036 Persons below poverty level, percent 11.8% 14.3% 21.9% 7.1% 15.0% Total employment, 2017 128,591,812 3,888,928 85,058 31,817 48,486 Total employment, percent change, 2016-2017 1.5% 2.2% -2.9% 11.5% -3.6% Retail sales per capita, 2012 $13,443 $12,077 $12,969 $12,008 $10,745

County's population as a percentage of the three-county total 38.2% 29.6% 32.2%

Source: US Census Bureau

Richmond County’s median household income and median home values are less than that of surrounding counties. However, the new Spending James Brown arena will be driving demand for all three counties displayed above.A variety of different demographics and income levels will be represented at the arena.

53 Augusta Metro Household Income

For any attendee-based project, the regional population and spending power is critical. Richmond County is dominated by the middle class and areas of lower incomes and older housing stock, while a large part of Columbia County is home to households that earn over $96,000 annually.

Sizable developments to the east of Augusta near Aiken, SC, extend growth to the east, especially in the Woodside Plantation and Cedar Creek golf areas. Growth is also expanding northwest and west of Augusta in Grovetown and Evans. Hammond’s Ferry and Ironwood apartments are an upscale enclave of new-urbanist housing in North Augusta, which is the closest new residential stock to the arena site. 54 Augusta Metropolitan Area

The Metropolitan area’s contiguous development straddles the Savannah River and the border between Georgia and South Carolina, covering seven counties; five in Georgia with the remaining two in South Carolina. Between the two states, Georgia contains two-thirds of the total population. The vast majority of growth in recent years is to the west and northwest of downtown, spilling west into Columbia County’s hillier terrain.

The Census has estimated that as of 2019, the Augusta metro had attracted 18,282 new domestic residents and 5,614 immigrants since 2010. Compared to nearby competing markets, this is similar to Savannah’s growth, while Columbia is growing faster, by 70,964, and Macon has shrunk by 2,249 in total. 55 Richmond County Richmond County Employment by Industry - 2018 Description Employees Percentage of Total Total employment (number of jobs) 147,751 100% Employment By type Wage and salary employment 127,442 86.25% Proprietors employment 20,309 13.75% By industry -- The table provides information on Nonfarm employment 147,624 99.91% Farm employment 127 0.09% Richmond County’s employment as of Private nonfarm employment 102,518 69.39% Health care and social assistance 16,770 11.35% 2018. The leading industries in Administrative and support and waste management and remediation services 13,435 9.09% Richmond County are Health care and Retail trade 12,649 8.56% Accommodation and food services 11,986 8.11% social assistance, Administrative and Manufacturing 8,186 5.54% Other services (except government and government enterprises) 7,677 5.20% support and waste management and Professional, scientific, and technical services 6,080 4.12% remediation services, and Retail trade. Construction 4,873 3.30% Transportation and warehousing 4,055 2.74% These top three industries employ Real estate and rental and leasing 3,666 2.48% Arts, entertainment, and recreation 3,228 2.18% approximately 29% of Richmond Wholesale trade 3,100 2.10% County’s workforce, which is equal to Finance and insurance 2,913 1.97% Information 1,854 1.25% 42,854 people. Governments at Educational services 1,402 0.95% Management of companies and enterprises 226 0.15% national, state and local levels employ Utilities 226 0.15% about 32% of Richmond County’s total Forestry, fishing, and related activities -- -- Mining, quarrying, and oil and gas extraction -- -- workforce, a very high percentage Government and government enterprises 45,106 30.53% among the nation’s metropolitan areas. State and local 25,561 17.30% State government 18,252 12.35% Local government 7,309 4.95% Military 11,893 8.05% Federal civilian 7,652 5.18%

Source: Bureau of Economic Analysis, Hunden Strategic Partners

56 Major Employers Augusta Metro Area Major Employers

Number of The largest employer in Augusta is the Company Name Industry Employees U.S. Army, employing over 2.2 times U.S. Army Cyber Center of Excellence & Fort Gordon Government 25,000 the amount of people compared to the Savannah River Site Government 11,200 second largest employer, Savannah Augusta University Education 6,000 River Site. The government is the Richmond County School System Education 4,000 largest provider of jobs, followed by the Augusta University Hospitals Health Care 4,000 education industry and then the health NSA Augusta Government 4,000 care industry. University Hospital Health Care 3,000 The list of Augusta County’s major Augusta-Richmond County Government 2,000 employers includes two hospitals that VA Medical Centers Health Care 2,000 comprise a major medical center in the Bridgestone Manufacturing 1,900 downtown area, and the $268 million EZ-GO Textron Manufacturing 1,500 Georgia Cryptologic Center of the Automatic Data Processing Management Services 1,500 National Security Agency, opened in Club Car Manufacturing 1,200 2012. The local economy is largely Source: Augusta Economic Development dependent on federal and state funding, which generally indicates some stability for the future. 57 Unemployment

Unemployment Rate by Region (January 2000 - January 2020) As of January 2020, the 14.0 unemployment rate in Augusta was 12.0 4.7%. On average, Augusta experienced about one percentage 10.0 point higher unemployment than the 8.0 nation, however the larger Augusta 6.0 metro area’s rate is more in-line with national and state averages. 4.0 COVID-19 is already responsible for 2.0 increasing unemployment numbers, 0.0 which will fluctuate by location and 0 00 01 2 02 03 4 04 05 6 06 07 8 08 09 0 10 11 2 12 13 4 14 15 6 16 17 8 18 19 0 n-0 y- n-0 y- n-0 y- n-0 y- n-0 y- n-1 y- n-1 y- n-1 y- n-1 y- n-1 y- n-2 the rate at which the overall national Ja Sep- Ma Ja Sep- Ma Ja Sep- Ma Ja Sep- Ma Ja Sep- Ma Ja Sep- Ma Ja Sep- Ma Ja Sep- Ma Ja Sep- Ma Ja Sep- Ma Ja and world economy can plateau and USA Georgia Augusta Augusta-Richmond County, GA-SC MSA stabilize.

58 Educational Attainment - 2018

Education Richmond Population Age 25+ United States Georgia County The top table demonstrates that there is Did Not Complete High School 13.0% 13.3% 15.6% a lower percentage of residents in Completed High School 27.5% 27.9% 31.7% Some College 21.0% 20.5% 22.1% Richmond County with bachelor and Completed Associate Degree 8.2% 7.6% 9.0% graduate degrees in comparison to Completed Bachelor Degree 18.8% 18.9% 13.6% Georgia and the nation as a whole. Completed Graduate Degree 11.5% 11.7% 8.0%

Roughly 22% of Richmond County’s Source: U.S. Census Bureau population over the age of 25 have either bachelor degrees or graduate Augusta Area Colleges & Universities degrees, compared to approximately Distance from Highest 30% in both Georgia and the U.S. Institution Location 30901 (Miles) Degree Offered Enrollment Paine College Augusta, Georgia 0.0 miles Bachelors 469 There are 13 colleges or universities Augusta University Augusta, Georgia 1.3 miles Doctorate 8,458 within 90 miles of the Site. While most Augusta Technical College Augusta, Georgia 5.5 miles Associates 4,409 Oconee Fall Line Technical College Sandersville, Georgia 58.7 miles Associates 1,428 are over fifty miles away, Augusta East Georgia State College Swainsboro, Georgia 63.4 miles Bachelors 2,942 University and Augusta Technical Ogeechee Technical College Statesboro, Georgia 71.2 miles Associates 2,014 College are sizable enough to ensure Georgia Southern University Statesboro, Georgia 71.4 miles Doctorate 26,408 Georgia College & State University Milledgeville, Georgia 78.0 miles Doctorate 6,989 the continued presence of thousands of Georgia Military College Milledgeville, Georgia 78.0 miles Bachelors 8,812 students and graduates in the metro University of Georgia Athens, Georgia 83.3 miles Doctoratae 38,652 area. More importantly, the Augusta Athens Technical College Athens, Georgia 87.6 miles Associates 4,567 Emmanuel College Franklin Springs, Georgia 89.1 miles Bachelors 920 University Medical Center, near Southeastern Technical College Vidalia, Georgia 90.0 miles Associates 1,817 downtown and the arena Site, is the Total 107,885 state’s only public academic medical Source: National Center for Education Statistics center, and has a workforce of 15,295. 59 Augusta Tourism

60 Augusta Attractions

Augusta is known outside of the Augusta Area Major Attractions community for hosting the Masters golf Name Type of Attraction tournament at the Augusta National Augusta National Golf Club Sports & Events Golf Club each year. The event makes Phinizy Swamp Nature Park Nature & Parks Augusta a golf destination featuring Augusta Riverwalk Nature & Parks several other golf courses, some of which are quite popular and others that Augusta Museum of History Museum have a deep golf history paralleling the Morris Museum of Art Museum legacy of The Masters. Augusta Canal Discovery Center Museum Savannah Rapids Park Nature & Parks Besides golf and The Masters annual The Boyhood Home of President Woodrow Wilson Museum events, visitors can explore the Augusta Sacred Heart Cultural Center Landmark Riverwalk, kayak on the Augusta Canal, visit one of Augusta’s museums, walk Source: Tripadvisor, Visit Augusta through a park, or visit President Woodrow Wilson’s boyhood home as he grew up in Georgia during the Civil War.

61 The Masters

The impact that the Masters has on Augusta is similar to the city-wide impacts from the Kentucky Derby, Indy 500, Daytona 500, and the Rose Bowl have on their respective cities. Over 200,000 out-of-town visitors spend up to two weeks in the Augusta area for the event, resulting in $120 million of economic impact from those 14 days. A new arena in Augusta will be able to support various entertainment events occurring throughout Masters week. Concurrent concerts and festivals are held during the tournament time period.

62 Augusta Area Attractions

Phinizy Swamp Nature Park – The Phinizy Swamp Nature Park covers 1,100 acres of land. It is open 365 days a year and is free to the public. At the park, visitors can see wildlife like great blue herons, red-shouldered hawks, river otters, and alligators. Augusta Riverwalk – The Augusta Riverwalk is a park along Savannah River in downtown. Visitors can attend concerts at the Jesse Norman Amphitheater, walk to the Morris Museum of Art, or visit booths at the Augusta Market. The Riverwalk attracted roughly 300,000 visitors in 2019. Augusta National Golf Club – The Augusta National Golf Club is one of the most famous and exclusive golf clubs in the world. It opened in 1932 and has hosted the Masters Tournament annually since then.

63 Augusta Area Attractions

Augusta Museum of History – The Augusta Museum of History was founded in 1937 and was created to preserve the history of Augusta. Each year, there are roughly 45,000 visitors. It is home to the permanent exhibition “Augusta’s Story”, which describes the region’s 12,000-year-old history. Augusta Canal Discovery Center – The Augusta Canal Discovery Center uses interactive exhibits, film, and models to describe the Industrial Revolution in the American South. Around 13,000 guests visit each year. The Augusta Canal is the oldest continuously operating hydropower canal in the nation. Morris Museum of Art – The Morris Museum of Art was created in 1985 and is located on the Augusta Riverwalk. It is the oldest museum in the country that is dedicated to the art and artists of the American South. Approximately 5,500 people visit the museum every year. It has a permeant collection of 5,000 works of art.

64 Augusta Area Attractions

Savannah Rapids Park – The Savannah Rapids park spans 33-acres and it is a passive recreation park that is set along the Augusta Canal and Reed Creek waterfall. Some activities available to visitors are running, biking, kayaking, paddle boarding, and hiking. The Boyhood Home of President Woodrow Wilson – The Boyhood Home of President Woodrow Wilson was built in 1859 and is the childhood home of the 28th president of the United States. Sacred Heart Cultural Center – The Sacred Heart Cultural Center is an events center and former Roman Catholic Church. Some activities hosted by the center are choral concerts, art exhibits, holiday events, and the annual Garden Festival. The center had 28,600 visitors in 2019.

65 Chapter 3: Regional Arena Market Analysis

66 Regional Competitive Arena Map

HSP identified the regional competitive arenas within a 3-hour drive from the new James Brown Arena. Colonial Life Arena, located roughly 76 miles from the new JBA, is the closest competitive arena. The supply of competitive arenas becomes abundant outside of a 2-hour drive time from the new James Brown Arena. The competitive set consists of an array of arena types such as major city arenas, university arenas and coastal arenas.

67 ` Augusta Regional Arena Competitors by Distance

# of Large Premium Anchor Employers Seats per Tenant TV Market TV Market in TV Market Distance from Capacity per Number Premium Large Venue Location Anchor Tenant? League Population Households (over 100) Augusta (mi) Capacity 1,000 TV Market* of Suites Seats *** Employer Opened Colonial Life Arena Columbia, SC University of South Carolina College 1,120,656 365,850 2,338 76 18,000 16.1 45 872 0.37 2002 Stegeman Coliseum Athens, GA University of Georgia College 213,750 76,300 515 96 10,500 49.1 ------1964 Bon Secours Wellness Arena Greenville, SC Greenville Swamp Rabbits ECHL 2,359,791 787,930 5,006 115 15,000 6.4 30 1,400 0.28 1998 Savannah Arena** Savannah, GA n/a n/a 967,051 315,400 2,544 121 9,437 9.8 13 617 0.24 2021 Macon Coliseum Macon, GA Macon Mayhem SPHL 650,576 211,110 1,792 121 9,000 13.8 ------1968 North Charleston Coliseum North Charleston, SC Multiple Multiple 933,068 309,250 2,048 143 13,000 13.9 ------1993 State Farm Arena Atlanta, GA Atlanta Hawks NBA 6,593,293 2,269,270 8,084 147 17,700 6.0 49 2,590 0.44 1999 McCamish Pavilion Atlanta, GA Georgia Tech College 6,593,293 2,269,270 8,084 148 8,600 6.0 -- 300 0.44 1956 Infinite Energy Arena Duluth, GA Multiple Multiple 6,593,293 2,269,270 8,084 160 13,000 6.0 32 680 0.44 1992 Spectrum Center Charlotte, NC Charotte Hornets NBA 3,358,721 1,125,970 5,440 163 18,812 8.7 64 3,680 0.68 2005 Bojangles' Coliseum Charlotte, NC Charlotte Checkers AHL 3,358,721 1,125,970 5,440 166 10,500 8.7 ------1955 Average 2,976,565 1,011,417 4,489 132 13,050 13.1 39 1,448 0.41 1987 Implied Augusta Arena Augusta, GA 748,759 241,000 1,934 -- 9,829 13.1 10 800 0.41 TBD

* Combined Arena Capacity per Market ** Under Construction *** Inclusive of Suite Seats Source: Pollstar, Various Venues

HSP identified these regional competitive arenas based on interviews with market Regional Competitors expert and distance from Augusta. The average capacity of this regional competitive arena set is roughly 13,000 seats, including 1,448 premium seating by Distance options. The newest arena in this competitive set is the Savannah Arena. It is currently under construction and set to open by the fall of 2021.

68 Augusta Regional Arena Competitors by Relevance and Capacity

# of Large Premium Employers in End- Capacity Seats per TV Market TV TV Market Miles from Stage per 1,000 Premium Large Venue Location Population Households (over 100) Augusta Capacity Capacity People Suites Seats Employer Colonial Life Arena Columbia, SC 1,120,656 365,850 1,934 76 18,000 13,000 16.1 45 872 0.45 Bon Secours Wellness Arena Greenville, SC 2,359,791 787,930 5,006 115 15,000 10,200 6.4 30 1,400 0.28 North Charleston Coliseum North Charleston, SC 933,068 309,250 2,048 143 13,000 8,200 13.9 ------Savannah Arena* Savannah, GA 967,051 315,400 2,544 121 9,437 8,300 9.8 13 617 0.24 Macon Coliseum Macon, GA 650,576 211,110 1,792 121 9,000 6,800 13.8 ------Average 1,206,228 397,908 2,665 115 12,887 9,300 12.0 29 963 0.32 Implied Augusta Arena Augusta, GA 748,759 241,000 1,934 -- 8,977 -- 12.0 17 627 0.32

*Under Construction Source: Pollstar, Various Venues

Regional Competitors HSP evaluated the regional arena competitive set and narrowed it down to these five regional competitors. HSP believes that these five competitors are by Relevance and the most relevant to the new James Brown Arena due to the type of shows they host, capacity, and markets that they are involved in. The average Capacity capacity for this competitive set is roughly 13,000.

69 Capturable Arena Market

Augusta’s current capturable area is shown in the adjacent map. Nearby arenas with higher quality amenities and larger capacities are pulling from the shared population between the existing arenas.

70 Current Arena Market

The map to the right shows the capturable area of 75% of the attendees to the JBA. Most visitors are heavily clustered within the Augusta area, but a small portion will drive from the southwest where highways are readily accessible.

71 Current Arena Market

The adjacent map indicates the origin of clusters of the top 75 percent of attendees at James Brown arena (show on the previous slide).

72 Capturable Arena Market

Augusta’s new capturable market relative to nearby arenas is shown in the adjacent map. This new capturable area factors in a new arena development.

73 Pollstar Event Summary

74 Pollstar – Event Summary Regional Arenas Pollstar Event Summary (2017-2019)

These five venues are the most relevant Average Average Average based on available Pollstar data. This Attendance Occupancy % Ticket Price data only represents the ticketed events Venue that report to Pollstar and does not Spectrum Center 13,813 73% $71 include athletic events. State Farm Arena 12,442 70% $90 HSP researched the event summary, Bon Secours Wellness Arena 8,808 59% $67 from 2017 to 2019, of these regional Colonial Life Arena 10,349 57% $61 arenas to better understand where the North Charleston Coliseum 6,595 51% $70 market is currently positioned, in terms Average 10,401 62% $72 of pricing and attendance. From 2017 to James Brown Arena 3,611 48% $38 2019, these venues, per event, averaged an attendance of roughly Source: Pollstar 10,400 guests, an arena occupancy of 62%, and a ticket price of $72.

75 Regional Venue Profiles

76 Colonial Life Arena

Location: Columbia, SC Owner: University of South Carolina

Operator: Spectra Year Open: 2002 Cost: $92.4M

Capacity: 18,000 End-Stage Capacity: 13,000 Notes: The University of South Carolina’s men’s and women’s basketball teams are the anchor tenants at Colonial Life Arena. The Arena has 41 executive suites, 4 entertainment suites, and 1 premium club (the Frank McGuire Club). There are 872 premium seats. The arena floor can host dinners for up to 800 people. Colonial Life Arena is relevant because it is a relatively new arena in a large MSA. The Arena is successful because it generates a strong mix of university, community, and touring events.

77 Colonial Life Arena Event Summary

Average Average Average Year # of Events Attendance Occupancy % Ticket Price 2019 23 9,405 52% $72 2018 14 10,088 56% $62 2017 13 11,554 64% $45 Total/Average 50 10,349 57% $61

Source: Pollstar

Over the three-year period, Colonial Life Arena hosted 50 ticketed events that reported to Pollstar. During this same period, these acts averaged roughly 10,300 guests per event and the average ticket price per event Colonial Life Arena was $61. The Colonial Life Arena saw an increase of big named performers and family shows in 2019. While the average attendance decreased in 2019, the average ticket price increased. Stegeman Coliseum

Location: Athens, GA Owner: University of Georgia Operator: University of Georgia Year Open: 1964 Cost: $34.6M Capacity: 10,500 Notes: The University of Georgia’s men’s and women’s basketball, gymnastics, and volleyball teams are the main tenants at Stegeman Coliseum. Ownership of the Coliseum is split 50/50 by the campus and the athletic department. The lower bowl of the Coliseum has 5,000 seats. There is a club area on the court level that can host up to 250 people, but does not have a line of sight to the court. Stegeman Coliseum is relevant due to its location from James Brown Arena. However, the Coliseum rarely hosts non-university events. There is also a new 5,500-seat arena that was just approved for downtown Athens. 79 Interview Feedback – Stegeman Coliseum HSP interviewed management at the Stegeman Coliseum to better understand the regional arena market, the Stegeman Coliseum’s business model and how a new James Brown Arena in Augusta would perform and compete in this regional market. Key findings from these interviews are listed below: § The ownership of the Stegeman Coliseum, unlike many other university arenas, is split between the campus and the athletic department. This creates scheduling issues. § Most events at the Coliseum are University of Georgia athletic events. The Coliseum hosts roughly 55 athletic events per year. § Stegeman Coliseum hosts 1-2 concerts per year and rarely hosts meetings or non-sporting events. There are other university and City of Athens entertainment and meeting venues that attract these non-sporting event types. § Management indicated that the addition of suites and additional locker rooms are key things that the Stegeman Coliseum needs to address. They indicated that 6-8 lockers rooms are needed for regional sporting events.

80 Bon Secours Wellness Arena

Location: Greenville, SC Owner: Greenville Arena District Operator: Greenville Arena District Year Open: 1998 Cost: $98.8M Capacity: 15,000 End-Stage Capacity: 10,200 Notes: The Greenville Swamp Rabbits, an East Coast Hockey League team, is the arena’s anchor tenant. There are 30 luxury suites that can hold between 16 and 24 guests each, and more than 800 club seats, for a total of 1,400 premium seats. More than 400,000 people visit the arena annually, creating a $60+ million impact on the Greenville metro area. Bon Secours Wellness Arena is relevant due to its proximity to the James Brown Arena, its design and premium seating offerings. Its much larger market size supports the large seat and premium count.

81 Bon Secours Wellness Arena Event Summary

Average Average Average Year # of Events Attendance Occupancy % Ticket Price 2019 20 9,106 61% $75 2018 15 8,493 57% $60 2017 13 8,827 59% $61 Total/Average 48 8,808 59% $67

Source: Pollstar

Over the three-year period, Bon Secours Wellness Arena hosted 48 Bon Secours ticketed events that reported to Pollstar. During this same period, these acts averaged roughly 8,800 guests per event and the average ticket price per event was $67. Bon Secours Wellness Arena saw an increase in popular Wellness Arena performers in 2019 and a decrease of non-ticketed family shows, which resulted in an increase in average attendance and ticket price. New Savannah Arena

Location: Savannah, GA Owner: City of Savannah Operator: Oak View Group Year Open: 2021 Cost: $155.5M Capacity: 9,437 End-Stage Capacity: 8,300 Notes: This new $160 million arena is being built to the west of the downtown Historic District in Savannah, GA. The arena is being constructed to have 12 suites, one party suite, and 4 loge boxes, for a total of 617 premium seating options. Max capacity includes approximately 4,834 seats in the lower bowl and 1,780 seats in the upper bowl. The new Savannah Arena is relevant because of its proximity, newness, design and similar market size (about 25 percent larger than Augusta).

83 Macon Coliseum

Location: Macon, GA Owner: Macon-Bibb County Operator: Spectra Year Open: 1968 Cost: N/A Capacity: 9,000 End-Stage Capacity: 6,800 Notes: The Macon Mayhem, a Southern Professional Hockey League team, anchors the Macon Coliseum. The Coliseum recently underwent remodeling that addressed the lobby, meeting space, and other minor renovations. The Coliseum has no premium seating options. The Macon Coliseum is relevant because of its size, location along touring routes, and management company. The Coliseum also has a similar setup to an auditorium in town, as the James Brown Arena does to the Bell Auditorium.

84 Interview Feedback – Macon Coliseum HSP interviewed management at the Macon Coliseum to better understand the regional arena market, the Macon Coliseum’s business model and how a new James Brown Arena in Augusta would perform and compete in this regional market. The Macon Coliseum complex is also managed by Spectra. Key findings from these interviews are listed below: § The Macon Coliseum is a 52-year-old arena, which makes it tough for major renovations to happen. § Management indicated that they draw events from a 70-mile radius. While they do not compete directly with State Farm Arena for top tier tours, State Farm Arena is their biggest competitor. § Management at the Macon Coliseum has found that routing with the current James Brown Arena in the past has shown success. § The Coliseum works with the local auditorium in town to drive events and offer a variety of spaces. Combined, the Coliseum and the auditorium hosted 133 events in 2019. Roughly 70% of these events took place at the Coliseum. § Management highlighted that if the Coliseum were to add premium seating, their market could support roughly 6-10 club suites and one premium restaurant/bar area. The Macon market is about 14% smaller than Augusta’s market.

85 Macon Macon Coliseum Net Operating Income (FY 2019) Actual Coliseum – Income Direct Event Income $553,014 Proforma Facility Fee $252,419 Suite Revenue $0 Net Ticketing Revenue $243,231 The Macon Coliseum realized a net loss Ancillary Income $960,645 of $600,000 in 2019. Event income Total Event Income $2,009,310 totaled over $2 million, despite no Other Income $176,890 Total Income $2,186,200 revenue from suites. Expenses General & Administration $337,872 Finance $200,459 Event Production $125,516 Marketing $99,997 Corporate Sales $54,820 Operations $613,075 Food and Beverage $189,540 Ticket Office $122,606 Overhead $1,046,450 Total Expenses $2,790,335 Net Operating Income (Loss) ($605,021)

Source: Macon Centreplex, Spectra

86 Macon Macon Coliseum Event Summary (June 2018 - June 2019) Total Attendance per Total Event Coliseum – Event Type # of Events Attendance Event Income Income per Event Hockey 29 42,374 1,461 $245,414 $8,463 Event Data Family Shows 19 -- -- $289,394 $15,231 High School Sports 17 26,264 1,545 $118,117 $6,948 Graduations 13 35,900 2,762 $67,054 $5,158 HSP received event data for the Macon Performing Arts 11 13,758 1,251 $151,081 $13,735 Coliseum from Spectra. This data breaks Minor Concerts 10 21,868 2,187 $351,077 $35,108 down arena income and attendance by Other Sports 7 9,727 1,390 $84,260 $12,037 event type from June 2018 to June Dance 6 2,400 400 $30,071 $5,012 Major Concerts 4 21,287 5,322 $332,225 $83,056 2019. During this period, the Macon Banquets 4 1,390 348 $32,117 $8,029 Coliseum hosted 145 events, resulting in Charity/Community Events 4 9,239 2,310 $23,310 $5,828 a total event income of $2,009,306. Football 3 1,034 345 $13,694 $4,565 Meetings 3 1,100 367 $1,796 $599 Average attendance for these events Special Events 3 925 308 $41,849 $13,950 was roughly 4,000 and event income per Comedy Shows 3 4,450 1,483 $71,588 $23,863 event was roughly $16,500. The Macon Other 3 2,610 870 $46,318 $15,439 Mayhem, the minor league hockey Consumer Shows 2 11,543 5,772 $33,310 $16,655 team, hosted the most events during Other Convention 2 11,000 5,500 $41,449 $20,725 this time period, although average Wrestling 1 1,575 1,575 $31,483 $31,483 Religious Events 1 36,000 36,000 $3,699 $3,699 attendance is less than 1,500 per game. Total/Average 145 254,444 3,747 $2,009,306 $16,479

Source: Spectra, HSP

87 North Charleston Coliseum

Location: North Charleston, SC Owner: City of North Charleston Operator: ASM Global Year Open: 1993 Original Cost: $44.2M Renovation Cost: $23.4M (2010-2012) Capacity: 13,000 End-Stage Capacity: 8,200 Notes: The Coliseum is part of a live entertainment and sports campus that also includes the North Charleston Performing Arts Center and the Charleston Area Convention Center. The South Carolina Stingrays, an East Coast Hockey League team, is the anchor tenant at the Coliseum. The North Charleston Coliseum is relevant due to its proximity, market size and connection to a performing arts center.

88 North Charleston Coliseum Event Summary

Average Average Average Year # of Events Attendance Occupancy % Ticket Price 2019 13 8,699 67% $78 2018 9 5,537 43% $67 2017 18 5,548 43% $61 Total/Average 40 6,595 51% $70

Source: Pollstar

Over the three-year period, North Charleston Coliseum hosted 40 ticketed North Charleston events that reported to Pollstar. During this same period, these acts averaged roughly 6,595 guests per event and the average ticket price per event was $70. North Charleston Coliseum saw a large increase in average Coliseum attendance and ticket price due to Phish performing there for a weekend in 2019. State Farm Arena

Location: Atlanta, GA Owner: Atlanta-Fulton County Recreation Authority Operator: Atlanta Hawks Year: 1999 Renovation Cost: $202M (2018) Capacity: 17,700 Notes: The NBA’s Atlanta Hawks is the anchor tenant at State Farm Arena. The arena underwent the 2nd largest renovation in NBA history in October of 2018. This included the addition of many premium options at an array of price ranges and enhanced food and beverage options. The arena hosts 130 events per year on average and attracts more than 2 million guests annually. While not directly competitive, State Farm Arena is relevant because of its location along tour routes and proximity to Augusta. 90 State Farm Arena Event Summary

Average Average Average Year # of Events Attendance Occupancy % Ticket Price 2019 60 11,357 64% $100 2018 23 12,375 70% $91 2017 33 13,592 77% $73 Total/Average 116 12,442 70% $90

Source: Pollstar

Over the three-year period, State Farm Arena hosted 116 ticketed events that reported to Pollstar. During this same period, these acts averaged roughly 12,442 guests per event and the average ticket price per event State Farm Arena was $90. The State Farm Arena underwent a more than $200 million renovation from the end of 2017 through October of 2018. This renovation has rapidly increased popularity of the venue and increased average ticket price. McCamish Pavilion

Location: Atlanta, GA Owner: Georgia Institute of Technology Operator: Georgia Institute of Technology Year Open: 2012 Cost: $50M Capacity: 8,600 Notes: The Georgia Tech men’s and women’s basketball teams are the anchor tenants at the McCamish Pavilion. The McCamish Pavilion was built on the same ground that the Alexander Memorial Coliseum (1956-2011) stood on. The lower level seating bowl has 6,935 seats, while the balcony level has 1,665 seats. The Callaway Club, the arena’s premium club section, has seating for roughly 300. The McCamish Pavilion is relevant because of its location and stadium configuration. From a competitive perspective, the facility is very similar to Stegeman Coliseum, in terms of mainly hosting university organized events. 92 Infinite Energy Arena

Location: Duluth, GA Owner: Gwinnett County Operator: AEG Year Open: 1992 Cost: $91.5M Capacity: 13,000 End-Stage Capacity: 11,600 Notes: The Atlanta Gladiators, a minor league hockey team, and the Georgia Swarm, a major league lacrosse team, are the anchor tenants at Infinite Energy Arena. The Arena has 30 club suites and 2 party suites. The Arena is part of an entertainment campus that includes a 50,000-square foot exhibit hall, and 708-seat theater. Infinite Energy Arena is relevant because of its supporting amenities and premium seating offerings.

93 Spectrum Center

Location: Charlotte, NC Owner: City of Charlotte Operator: Charlotte Hornets Year Open: 2005 Cost: $340M Capacity: 18,812 End-Stage Capacity: 15,236 Notes: The NBA’s Charlotte Hornets is the anchor tenant at Spectrum Center. The Center includes 64 premium suites that host 16 to 24 guests each plus other premium seat options for a total of 3,680. Spectrum Center hosts more than 60 sporting and non- sporting events per year. While not directly competitive or comparable, it is a major player in the region, similar to the State Farm Arena.

94 Spectrum Center Event Summary

Average Average Average Year # of Events Attendance Occupancy % Ticket Price 2019 31 14,149 75% $79 2018 23 13,143 70% $79 2017 24 14,146 75% $54 Total/Average 78 13,813 73% $71

Source: Pollstar

Over the three-year period, Spectrum Center hosted 78 ticketed events that reported to Pollstar. During this same period, these acts averaged Spectrum Center roughly 13,813 guests per event and the average ticket price per event was $71. Average attendance and average ticket price increased in 2019 due to an increase in popular music performers. Bojangles Coliseum

Location: Charlotte, NC Owner: City of Charlotte Operator: Charlotte Regional Visitors Authority Year Open: 1955 Original Cost: $38.2M Renovation Cost: $17.5M Capacity: 10,500 End-Stage Capacity: 8,600 Notes: The Charlotte Checkers, an American Hockey League team, is the anchor tenant of the Bojangles Coliseum. There are major renovations underway to connect the Bojangles Coliseum and the Ovens Auditorium. This connection will include 44,000 square feet of meeting space, new restrooms, increased entrances, and new concessions. There are currently no premium seating options. The Bojangles Coliseum is relevant due to its size and relationship with the Ovens Auditorium. 96 Interview Feedback – Bojangles Coliseum HSP interviewed management at the Bojangles Coliseum to better understand the regional arena market, the Bojangles Coliseum’s business model and how a new James Brown Arena in Augusta would perform and compete in this regional market. Key findings from these interviews are listed below: § The Bojangles Coliseum is a City-owned building that is adjacent to a 2,400-seat auditorium.A major renovation is underway to connect these two venues and add roughly 44,000 square feet of meeting space. These renovations also include the creation of additional entrances, upgraded concessions, and an increase of restroom capacity by 33%. § Management indicated that top-tier tours are going to the Spectrum Center, and that middle-tier tours make up most of the performing acts at the Coliseum. These middle-tier tours range in capacity from 4,000 to 6,000 guests. The Coliseum sees roughly 10 ticketed touring acts per year. Along with these middle-tier tours, the Coliseum hosts community events, graduations, meetings, and the Special Olympics. § Management indicated that their major competitors are Bon Secours Wellness Arena, in Greenville, and Colonial Life Arena, in Columbia.

97 Implications

98 Regional & Competitive Arena Implications

HSP examined many factors in the competitive regional market area to determine what new arena program to recommend, as well as how a new facility would perform: § The proposed Arena will be entering into a regional arena market that has an established and diverse competitive set. Most of the successful facilities are larger than the JBA. § While top-tier tours are not currently stopping in Augusta, a new, larger Arena will increase the appeal of Augusta to these tours. § There are many different physical aspects that go into a successful arena. Creating a quality experience for the fans, the performers, and any teams will induce repeat event and attract new event to the Arena. Better support amenities backstage and for guests will help. § Premium seating options such as suites, clubs, loge boxes, social areas and bars give an arena a competitive advantage in terms of fan experience. They also drive revenue for the building and can help create a financial incentive for events.

99 Potential Sports Tenant Overview

100 Sports Tenant Overview

HSP conducted an analysis of relevant minor league sports teams that could potentially become an anchor tenant of the James Brown Arena.A brief overview of how sports tenants impact arenas is detailed below. § The James Brown Arena has had minor league sports tenants in the past that have not been as successful as other teams in other arenas. The success of sports tenants, at any type of venue, is reliant on three things: having a supportable market, a popular and longstanding league, and a stable ownership group. § While it is not recommended to build an arena specifically for a tenant, having the option and flexibility to take on a home tenant is the best-case scenario. These sports tenants generate regular, annual fan income and suite leases are generally tied to fan loyalty. § A new arena, such as the proposed James Brown Arena, in a growing market like Augusta would most likely benefit from a minor league sports tenant and be able to be strategic with its relationship with this tenant.

101 Sports Tenant Overview Map

The adjacent map shows minor league hockey, lacrosse and G- League basketball in the southeast region. While Augusta and the James Brown Arena have not traditionally had success with sports tenants, a new arena could re-open the door to one of these leagues.

102 Minor League Hockey

103 Minor League Hockey Overview

Minor League Hockey, is comprised of many different leagues and system classifications. HSP identified these Minor League Hockey Overview - 2019 three, relevant minor league hockey leagues that could potentially become a tenant at the new James Brown League/Division Number of Teams Games Played Average Attendance Arena. These leagues are relevant due AHL 30 2,040 5,802 to their size, average attendance, and ECHL 26 1,872 4,521 current presence in comparable arenas around the country. SPHL 10 560 3,133

The American Hockey League (AHL) is Source: Various one step below the National Hockey League (NHL), in terms of competitive play. The AHL has the highest average attendance out of the relevant leagues, at roughly 5,800 fans per game. Teams in all three of these leagues are anchor tenants at many comparable arenas in the Southeast. 104 AHL 2019 Overview

2019 Home Average American Hockey Team Location Stadium Capacity Attendance Average Occupancy San Diego Gulls San Diego, CA 12,920 9,021 69.8% League Overview Hershey Bears Hershey, PA 10,500 8,907 84.8% Cleveland Monsters Cleveland, OH 18,926 8,901 47.0% Ontario Reign Ontario, CA 9,736 8,352 85.8% Grand Rapids Griffins Grand Rapids, MI 10,834 8,206 75.7% The AHL plays a 76-game schedule from Providence Bruins Providence, RI 11,075 8,045 72.6% October to April. Roughly half of the Chicago Wolves Rosemont, IL 16,692 7,929 47.5% Lehigh Valley Phantoms Allentown, PA 8,420 7,720 91.7% games are home and half of the games are Charlotte Checkers Charlotte, NC 8,600 6,682 77.7% on the road for each team. The San Diego Toronto Marlies Toronto, ON 7,851 6,419 81.8% Gulls, located in San Diego, CA led the Iowa Wild Des Moines, IA 15,181 6,409 42.2% league in average attendance in 2019. San Antonio Rampage San Antonio, TX 16,151 6,210 38.4% Syracuse Crunch Syracuse, NY 6,159 5,595 90.8% The AHL averaged a league-wide Wilkes-Barre/Scranton Penguins Wilkes-Barre, PA 8,300 5,549 66.9% Milwaukee Admirals Milwaukee, WI 9,652 5,412 56.1% attendance of 5,802 fans per home game Texas Stars Cedar Park, TX 8,000 5,406 67.6% and experienced roughly a 63 percent Rochester Americans Rochester, NY 11,215 5,263 46.9% arena occupancy for home games in 2019. Colorado Eagles Loveland, CO 5,829 5,140 88.2% The arenas that these AHL teams are Springfield Thunderbirds Springfield, MA 6,793 5,085 74.9% Bakersfield Condors Bakersfield, CA 8,751 5,034 57.5% playing in range in capacity from 3,860 to Manitoba Moose Winnipeg, MB 15,321 4,722 30.8% 18,926. The average capacity for an AHL Tucson Roadrunners Tucson, AZ 8,962 4,294 47.9% arena is 10,173. Bridgeport Sound Tiger Bridgeport, CT 8,412 4,107 48.8% Hartford Wolf Pack Hartford, CT 14,750 3,942 26.7% The teams highlighted in grey indicate a Utica Comets Utica, NY 3,860 3,917 101.5% Rockford IceHogs Rockford, IL 5,895 3,876 65.8% Southeastern arena tenant. The Charlotte Stockton Heat Stockton, CA 9,737 3,690 37.9% Checkers are anchor tenants at the San Jose Barracuda San Jose, CA 17,562 3,680 21.0% Bojangles Coliseum and averaged a home Bignhamton Devils Binghamton, NY 4,710 3,471 73.7% attendance of 6,682 fans per game in 2019. Bellevile Senators Belleville, ON 4,400 3,067 69.7% Average 10,173 5,802 62.9%

Source: Various 105 ECHL 2019 Overview East Coast Hockey 2019 Home Average Team Location Stadium Capacity Attendance Average Occupancy Fort Wayne Komets Fort Wayne, IN 10,480 7,932 75.7% League Overview Toledo Walleye Toledo, OH 7,389 7,783 105.3% Jacksonville Icemen Jacksonville, FL 13,141 5,993 45.6% Tulsa Oilers Tulsa, OK 17,096 5,762 33.7% The East Coast Hockey League (ECHL) Wichita Thunder Wichita, KS 13,450 5,679 42.2% plays a 72-game schedule from October to Orlando Solar Bears Orlando, FL 17,353 5,612 32.3% April. Roughly half of the games are home Florida Everblades Estero, FL 7,186 5,586 77.7% and half of the games are on the road for Utah Grizzlies West Valley City, UT 10,100 5,496 54.4% each team. The Fort Wayne Komets, Cincinnati Cyclones Cincinnati, OH 14,453 5,068 35.1% Kansas City Mavericks Independence, MO 5,800 4,859 83.8% located in Fort Wayne, IN led the league in Atlanta Gladiators Duluth, GA 11,355 4,686 41.3% average attendance in 2019. Idaho Steelheads Boise, ID 5,002 4,539 90.7% The ECHL averaged a league-wide South Carolina Stingrays North Charleston, SC 10,537 4,250 40.3% Worcester Railers Worcester, MA 12,239 4,233 34.6% attendance of 4,521 fans per home game Greenville Swamp Rabbits Greenville, SC 13,707 4,206 30.7% and experienced roughly a 55 percent Indy Fuel Indianapolis, IN 6,300 4,156 66.0% arena occupancy for home games in 2019. Allen Americans Allen, TX 6,275 4,073 64.9% The arenas that these ECHL teams are Newfoundland Growlers Newfoundland and Labrador 6,287 3,784 60.2% playing in range in capacity from 4,794 to Norfolk Admirals Norfolk, VA 8,701 3,590 41.3% 17,353. The average capacity for an ECHL Adirondack Thunder Glens Falls, NY 4,794 3,409 71.1% Reading Royals Reading, PA 7,083 3,166 44.7% arena is 9,082. Maine Mariners Portland, ME 6,733 2,998 44.5% Although the ECHL averages a lower home Rapid City Rush Rapid City, SD 5,132 2,897 56.4% Brampton Beast Brampton, OH 5,000 2,816 56.3% attendance per game than the AHL, the Kalamazoo Wings Kalamazoo, MI 5,133 2,720 53.0% ECHL currently has a larger presence in Wheeling Nailers Wheeling, WV 5,406 2,265 41.9% Southeastern arenas than the AHL does. Average 9,082 4,521 54.8%

Source: Various 106 Southern Professional Hockey League Overview SPHL 2019 Overview

The Southern Professional Hockey League 2019 Home Average (SPHL) plays a 56-game schedule from Team Location Stadium Capacity Attendance Average Occupancy October to April. Roughly half of the Huntsville Havoc Huntsville, AL 6,200 4,932 79.5% games are home and half of the games Knoxville Ice Bears Knoxville, TN 4,973 3,818 76.8% are on the road for each team. The Huntsville Havoc, located in Huntsville, AL Peoria Rivermen Peoria, IL 9,919 3,644 36.7% led the league in attendance in 2019. Pensacola Ice Flyers Pensacola, FL 8,150 3,597 44.1% Roanoke Rail Yard Dawgs Roanoke, VA 7,752 3,498 45.1% The SPHL averaged a league-wide Quad City Storm Moline, IL 9,200 3,181 34.6% attendance of 3,133 fans per home game Birmingham Bulls Pelham, AL 4,100 2,377 58.0% and experienced roughly a 45 percent arena occupancy for home games in Fayetteville Marksmen Fayetteville, NC 9,500 2,217 23.3% 2019. Evansville Thunderbolts Evansville, IN 9,000 2,041 22.7% Macon Mayhem Macon, GA 7,100 2,020 28.5% The arenas that these SPHL teams are Average 7,589 3,133 44.9% playing in range in capacity from 4,100 to 9,919. The average capacity for an SPHL Source: Various arena is 7,589. The SPHL relies on its presence in southeastern arenas to drive business. Out of the 10 teams in the SPHL, 7 teams are tenants at arenas in the Southeast. 107 National Lacrosse League

108 National Lacrosse League Overview NLL Overview

2019 Home Average The National Lacrosse League (NLL) is an Team Location Stadium Capacity Attendance Average Occupancy indoor lacrosse league that plays in arenas Calgary Roughnecks Calgary, AB 19,289 12,677 65.7% throughout North America. The popularity Buffalo Bandits Buffalo, NY 19,070 12,089 63.4% for the sport of lacrosse is rapidly growing Saskatchewan Rush Saskatoon, SK 15,190 12,007 79.0% throughout North America. The NLL Colorado Mammoth Denver, CO 18,007 11,586 64.3% currently consists of 13 teams that play 18 Toronto Rock Toronto, ON 18,819 8,339 44.3% games per season. Philadelphia Wings Philadelphia, PA 19,543 8,054 41.2% The NLL averaged a league-wide Halifax Thunderbirds Halifax, NS 10,595 7,642 72.1% attendance of 8,150 fans per home game Georgia Swarm Duluth, GA 11,355 7,613 67.0% and experienced roughly a 55 percent Vancouver Warriors Vancouver, BC 18,910 6,769 35.8% arena occupancy for home games in 2019. New England Black Wolves Uncasville, CT 7,700 5,132 66.6% The arenas that these NLL teams are Rochester Knighthawks Rochester, NY 11,200 5,050 45.1% playing in range in capacity from 7,700 to San Diego Seals San Diego, CA 12,920 4,829 37.4% 19,543. The average capacity for an NLL New York Riptide Uniondale, NY 13,917 4,157 29.9% arena is 15,117. The NLL is currently played Average 15,117 8,150 54.8% at the Infinite Energy Center in Duluth, GA. Source: Various Along with hosting NLL home games, the Infinite Energy Center also hosts ECHL home games for the Atlanta Gladiators. 109 G-League Basketball

110 G-League 2019 Overview

G-League Overview Team Location Stadium Capacity Iowa Wolves Des Moines, IA 16,110 Oklahoma City Blue Oklahoma City, OK 13,846 Long Island Nets Uniondale, NY 13,500 Fort Wayne Mad Ants Fort Wayne, IN 13,000 The National Basketball Association (NBA) Stockton Kings Stockton, CA 11,193 G League, formerly known as the NBA Agua Caliente Clippers Ontario, CA 10,832 Windy City Bulls Hoffman Estates, IL 10,000 Development League, is the the NBA’s Rio Grande Valley Vipers Edinburg, TX 9,000 official minor league that prepares Memphis Hustle Southaven, MS 8,362 players, coaches, officials, and front office Lakeland Magic Lakeland, FL 8,178 Austin Spurs Cedar Park, TX 7,200 staff for the NBA. The popularity for the Erie BayHawks Erie, PA 6,750 G-League has continued to grow during Canton Charge Canton, OH 5,200 the last couple of seasons. The G-League Northern Arizona Suns Prescott Valley, AZ 5,100 Raptors 905 Mississauga, ON 5,000 currently consists of 28 teams that play 50 Westchester Knicks White Plains, NY 5,000 games per season. Salt Lake City Stars Taylorsville, UT 5,000 Grand Rapids Drive Walker, MI 4,500 The G-League averaged a league-wide Texas Legends Frisco, TX 4,500 attendance of 2,465 fans per home games Capital City Go-Go Washington, D.C. 4,200 Wisconsin Herd Oshkosh, WI 3,500 in 2019. College Park Skyhawks College Park, GA 3,500 Sioux Falls Skyforce Sioux Falls, SD 3,250 The arenas that these G-League teams are Maine Red Claws Portland, ME 3,100 playing in range in capacity from 750 to Santa Cruz Warriors Santa Cruz, CA 2,505 16,110. The average capacity for a G- Delaware Blue Coats Wilmington, DE 2,500 Greensboro Swarm Greensboro, NC 2,500 League arena is 6,717. South Bay Lakers El Segundo, CA 750 Average 6,717

Source: Various 111 Sports Tenant Implications

HSP examined the many factors in the professional sports market to determine how a professional sports tenant would operate and perform at the new James Brown Arena: § The proposed James Brown Arena would meet capacity requirements for all the minor league sports profiled in this section. The design and capabilities of the proposed arena would have to reflect the needs of a proposed minor league sports tenant. § Average ticket prices for these minor league sporting events range from $10 - $15, in the cheapest seats, up to over $100 per ticket for courtside or on-the-glass seats. Premium seating options begin at roughly $35 per ticket per game. § Minor league sports tenants provide arenas with consistent income streams and event days to increase arena usage. These events have a local and regional appeal and can help arenas fill in scheduling gaps. § While attendance and popularity vary from team to team and city to city, minor league sports tenants help drive consistency at arenas and offer professional sports to areas that might not have a current, local option.

112 Demand

113 Interview Feedback – Live Nation

Conversation with representatives at Live Nation are summarized below: § A newer, nicer facility in Augusta will help generate more shows and events. Size is not the biggest issue, but the market can support up to 10,000 capacity. § The number one amenity is easy load-in access. Additional amenities to consider include: § Storage space § Dressing rooms § Parking § Augusta will likely continue to host second tier and up and coming tours. Routing is always a challenge being located near major markets. § A new arena could potentially see a 20 percent increase in shows.

114 Interview Feedback – Cirque Du Soleil

Conversation with representatives at Cirque Du Soleil are summarized below: § Cirque du Soleil has performed at the current JBA a total of three times. Their programming at the current JBA was setup for six performances over three event days. § They are happy with the current capacity of the JBA. The physical setup for their most common show is known as a half-house setup, where the upper bowl is usually not open and sellable capacity is between 4,000 and 6,000. § Their primary concern with Augusta is that they do not sell quite as strong in the South, due, in part, to decreased popularity. § Cirque Du Soleil management highlighted that they would be interested in up to 6-7 shows at a new arena in Augusta. § Some popular support amenities in arenas around the country that Cirque Du Soleil highlighted include many small meeting/changing rooms for 4-5 people, office space, physical medicine and training areas, and a space in the arena where they can setup their own kitchen. § Attendees usually travel up to a 45-minute drive time to see their shows. Travel time is longer in more rural areas. Population, education levels and household incomes are important in attracting fans. 115 Interview Feedback – Feld Entertainment

Conversation with representatives at Feld Entertainment are summarized below: § Feld Entertainment is a family show promoter that works with arenas around the country to host ice and dirt shows. Feld has worked at many of the competitive arenas in the Southeast. § Management at Feld Entertainment indicated that the arena should have a capacity of at least 6,000, but 10,000+ is preferred. One-third of the capacity goes away for backstage production. They also highlighted that having an ice floor is essential, because it is $40,000 for the week for Feld to bring in their own ice. § Some supportable amenities that Feld would like to see at the new JBA include modern restrooms, dressing rooms, and parking. § Management indicated that they would want to host at least two weekend events at the new JBA. One Disney on Ice event and one motor sports event.

116 Interview Feedback – Spectra

Spectra has managed the Augusta Entertainment Complex since 2008 and has had a very successful relationship with the Coliseum Authority and the Augusta community. The average annual operating deficit for the Complex prior to Spectra management was about $1.3M. Since then, the average deficit has been decreased to about $600k annually through increased booking, revenue production and management of expenses in coordination with the Coliseum Authority’s oversight. HSP interviewed representatives at Spectra to learn more about the Augusta Entertainment Complex and the arena market, in general. Conversation with representatives at Spectra are summarized below: § Spectra generally buys one or two shows each year, but typically the show will rent out the building for a flat rate of around $7,500. § There is not a lot of leverage in Augusta with the current arena situation to sway shows away from other regional markets. § The City of Augusta is showing promising market growth to support a larger and higher quality arena development. § Average ticket price would ideally be between $45 - $60 to maximize overall attendance. § Around $25,000 per suite per year is a reasonable target for the new arena. Could be adjusted based on potential anchor tenants or an increased number of concerts and family shows. 117 Interview Feedback – Red Mountain Entertainment Conversation with representatives at Red Mountain Entertainment are summarized below: § Red Mountain is joint-venture with Live Nation based out of Birmingham. They have held shows in Augusta in the past at the James Brown Arena and the Bell Auditorium. § Augusta seems to be comparable to Macon and Savannah in terms of their markets and overall ticket sales. § Support amenities are critical for markets like Augusta to sway promoters in a ”jump-ball” situation between similarly-sized markets. § Amenities and details to consider include: § Loading docks for 4 – 8 trucks at one time § Sufficient team rooms, dressing rooms and production offices § A large meal hall for the crew to share meals – ideally with an attached kitchen § Curtaining system to allow for flexibility and a variety of configurations § Basketball goals, ping pong, video games, massage tables, good local food and any other bonuses to sway tours

118 Chapter 4: Case Studies

119 National Comparable Mid-Size Arenas Premium Anchor Television # of Large Capacity per Seats per Tenant Market Employers in Arena 1000 TV Number of Premium Large Venue Location Anchor Tenant? League Households MSA (over 100) Capacity Households Suites Seats* Employer Opened PPL Center Allentown, PA Lehigh Valley Phantoms AHL 745,000 436 10,000 13.4 31 1,420 3.26 2014 American Bank Center Corpus Christi, TX Multiple Multiple 188,000 193 10,000 53.2 11 706 3.66 1967 Ford Center Evansville, IN Multiple Multiple 250,000 235 11,000 44.0 20 491 2.09 2011 Van Andel Arena Grand Rapids, MI Grand Rapids Griffins AHL 653,000 537 12,000 18.4 44 1,054 1.96 1996 Denny Sanford Premier Center Sioux Falls, SD Multiple Multiple 230,000 180 12,900 56.1 22 2,692 14.96 2014 Memorial Coliseum Fort Wayne, IN Fort Wayne Komets ECHL 240,000 281 13,000 54.2 25 842 3.00 1952 Intrust Bank Arena Wichita, KS Wichita Thunder ECHL 360,000 368 15,000 41.7 22 1,071 2.91 2010 Average 380,857 319 11,986 40.1 25 1,182 4.55 1995 Implied Augusta Arena Augusta, GA 241,000 233 9,671 40.1 10 1,059 4.55 TBD

*Inclusive of Suite Seats Source: Pollstar, US Census, Facilities

HSP assessed facilities around the US that are mostly new or recently renovated, are in similar markets and between 10- Case Studies 15,000 seats. The PollStar data show on the following slides only includes concert or family shows that reported data (not sports or non-ticketed events). Actual event counts including athletic events are higher. PollStar Event Summary National Arenas Event Summary (2017-2019)

This data only represents the ticketed Average Average Average events that report to Pollstar and does Venue Attendance Occupancy % Ticket Price not include athletic events. These five PPL Center 7,237 72% $59 venues are the most relevant based on Van Andel Arena 8,317 69% $70 available Pollstar data. Denny Sanford Center 7,430 62% $71 HSP researched the event summary, Ford Center 5,882 53% $54 from 2017 to 2019, of these national Memorial Coliseum 5,416 42% $53 arenas to better understand how similarly sized market around the Intrust Arena 6,246 42% $60 country are performing. From 2017 to Total/Average 5,831 58% $61 2019, these venues, per event, Source: Pollstar averaged an attendance of roughly 5,800 guests, an arena occupancy of 58%, and a ticket price of $61.

121 PPL Center

Location: Allentown, PA Owner: City of Allentown Operator: Spectra Year Open: 2014 Cost: $191.4M Capacity: 10,000 Notes: The PPL Center is part of a larger $282 million development. The arena was built primarily with tax money from the city’s neighborhood improvement zone (NIZ). The Lehigh Valley Phantoms of the AHL are the anchor tenant at the arena. The PPL Center has a unique structure in which the facility is managed by Spectra under a private ownership group that also owns the Lehigh Valley Phantoms.

122 PPL Center Event Summary

Average Average Average Year # of Events Attendance Occupancy % Ticket Price 2019 23 6,819 68% $55 2018 25 7,380 74% $63 2017 20 7,511 75% $60 Total/Average 68 7,237 72% $59

Source: Pollstar

The PPL Center has had an average occupancy of over 70 PPL Center Event percent and an average ticker price of nearly $60 over the three- Summary year period. Interview Feedback – PPL Center

HSP interviewed management at the PPL Center to better understand their operations and event mix. Key findings from these interviews are listed below: § The PPL Center has roughly 150 total dates each year, including 10 – 15 concerts and 40 home dates for the Lehigh Valley Phantoms (AHL). § The arena currently has 8,500 seats but believe they could use roughly 2,000 more. § Allentown has completely transformed since the development of the arena with billions of dollars invested downtown. § They arena has an attached hotel, but the two groups rarely put on events together. § Premium seating includes 25 executive suites, 9 loge suites, 6 party suites, 4 box suites and 1,000 club seats § Executive suites cost roughly $50,0000 per year and include home games for hockey and 12 other concert and event tickets § Loge suites cost between $25,000 - $30,000 per year § Other items that are desired at the arena include more storage and exterior loading dock space.

124 American Bank Center

Location: Corpus Christi, TX Owner: City of Corpus Christi Operator: SMG Year Open: 1967 (2005 Renovation) Cost: N/A Capacity: 10,000 Notes: The arena is home to Texas A&M-Corpus Christi and the Corpus Christi IceRays of the NAHL. In addition to the arena, the complex includes an auditorium and convention center. While the Bell Auditorium and Augusta Convention Center will not be attached to the new arena in Augusta, the two markets will have a comparable mix of assets.

125 Ford Center

Location: Evansville, IN Owner: City of Evansville Operator: Venuworks Year Open: 2011 Cost: $127.5 Capacity: 11,000 Notes: The arena has hosted concerts including Elton John, Lady Antebellum, Trans-Siberian Orchestra and Cirque du Soleil. Anchor tenants at the arena include the University of Evansville and the Evansville Thunderbolts of the SPHL. The facility replaced a non-downtown arena. No downtown parking was built to support the arena and it is connected to both the city’s convention center and convention hotel.

126 Ford Center Event Summary

Average Average Average Year # of Events Attendance Occupancy % Ticket Price 2019 18 5,424 49% $59 2018 20 5,989 54% $54 2017 27 6,233 57% $52 Total/Average 65 5,882 53% $54

Source: Pollstar

Ford Center Event While average attendance has decreased over the period, Summary average ticket price has increased at the Ford Center. Van Andel Arena

Location: Grand Rapids, MI Owner: Grand Rapids-Kent County Convention/Arena Authority Operator: SMG Year Open: 1996 Cost: $77M Capacity: 12,000 Notes: The Grand Rapids Griffins of the AHL are the anchor tenant of the arena. Grand Rapids is a growing city and metro and is one of a few markets that have developed a 12,000-seat+ venue that is not collegiate or for a major league franchise.

128 Van Andel Arena Event Summary

Average Average Average Year # of Events Attendance Occupancy % Ticket Price 2019 55 8,748 73% $75 2018 41 8,920 74% $70 2017 37 7,282 61% $61 Total/Average 133 8,317 69% $70

Source: Pollstar

Van Andel Arena has averaged an occupancy of 70 percent and Van Andel Arena an average ticket price of $70 over the period. Event Summary Denny Sanford Premier Center

Location: Sioux Falls, SD Owner: City of Sioux Falls Operator: SMG Year Open: 2014 Cost: $117 Capacity: 12,900 Notes: The arena is home to the Sioux Falls Storm (IFL) and the Sioux Falls Stampede (USHL). The facility has been extremely successful in drawing shows to the region, despite the local market’s relatively small size.

130 Denny Sanford Premier Center Event Summary

Average Average Average Year # of Events Attendance Occupancy % Ticket Price 2019 21 7,724 64% $93 2018 23 7,665 64% $70 2017 39 6,900 57% $62 Total/Average 83 7,430 62% $71

Source: Pollstar

Denny Sanford Average ticket price has increased by roughly $30 over the Premier Center Event period, while attendance has averaged 63 percent. Summary Memorial Coliseum

Location: Fort Wayne, IN Owner: Allen County Operator: Allen County Year Open: 1952 (2013 renovation) Capacity: 13,000 Notes: The arena is home to the Fort Wayne Komets (ECHL) and the Fort Wayne Mad Ants (NBA G League). The 2013 renovation/expansion upgraded LED lighting and no-touch sinks, no-touch toilets and no-touch urinals. Two new food courts with three vendors were also added. The expansion was potentially overbuilt, as very few shows fill the space. However, the market is one of the largest with just one arena-style venue, but would be one of the smallest with two, so it struggles being a market on the cusp.

132 Memorial Coliseum War Memorial Coliseum Net Operating Income (2018)

Proforma Actual Operating Revenues Memorial Coliseum had revenues of Miscellaneous $118,902 roughly $6 million in 2018 and a total Rent $1,258,706 net operating loss of roughly $370,000. Concessions $1,345,476 Salaries and wages accounted for over Parking $1,643,710 40 percent of expenses. Ticket Office $182,496 Advertising $393,311 Arena Maintenance Fee $311,889 Suite/club seats $8,750 Advance forfeiture rent $686,620 Total Operating Revenues $5,949,860 Operating Expenses Salaries and wages $2,580,537 Fringe benefits $693,188 Materials and supplies $214,998 Purchased Services $1,424,273 Utilities $864,836 Miscellaneous $213,233 Maintenance and repair $327,674 Total Expenses $6,318,739 Net Operating Income (Loss) ($368,879)

Source: Allen County Annual Financial Report

133 Memorial Coliseum Event Summary

Average Average Average Year # of Events Attendance Occupancy % Ticket Price 2019 28 5,330 41% $63 2018 21 4,847 37% $41 2017 17 6,072 47% $50 Total/Average 66 5,416 42% $53

Source: Pollstar

Average ticket price has increased by roughly $10 each year Memorial Coliseum during the period. Event Summary Intrust Bank Arena

Location: Wichita, KS Owner: Sedgewick County Operator: SMG Year Open: 2010 Cost: $205.5 Capacity: 15,000 Notes: The arena is home to the Wichita Thunder of the ECHL and has also hosted NCAA men’s and women’s basketball tournament events. The facility is very large for a non-major league venue or market, but as it anchors a large geographic area, similar to Sioux Falls, it performs well. The Intrust Bank Arena tax bill authorized the county to collect a one percent sales tax for 30 months prior to construction.

135 Intrust Arena Event Summary

Average Average Average Year # of Events Attendance Occupancy % Ticket Price 2019 20 7,805 52% $67 2018 39 5,152 34% $56 2017 43 5,779 39% $59 Total/Average 102 6,246 42% $60

Source: Pollstar

The Intrust Arena has the largest capacity in the comparable set Intrust Bank Arena and the lowest average occupancy. Average attendance and Event Summary average ticket price both increased from 2018 to 2019. Case Study Implications

HSP analyzed case studies of comparable arena developments across the country to determine the major trends in the arena market: § A variety of premium seating options are included in the national comparable seat ranging from traditional suites to loge boxes and floor-level clubs.A trend at arenas around the country is an atmosphere that encourages “hanging out” in addition to strictly focusing on the game or event. § All arenas in the competitive set have at least one anchor tenant, which James Brown Arena is currently lacking. Ideally, a new arena could attract an anchor tenant to contribute to concerts and other events. § Flexibility is key for arenas in mid-sized markets that need to balance sporting events, large concerts, small concerts, meetings and a variety of other events. These events can vary significantly in size and it is important to ensure that visitors are as comfortable as possible. § There are several options for funding mechanisms for these types of projects, and a new arena development can be a catalyst for additional real estate projects in the market.

137 Public Outdoor Event Space Examples

138 Fiserv Forum – Deer District

Location: Milwaukee, WI Plaza Size: 30 acres

Key Findings: The Fiserv Forum is one of the newest jewels of the NBA arena market. This $524 million arena opened in 2019. Outside of this arena, is the “Deer District” an outdoor plaza space that is utilized by the team and the community. The “Deer District” includes a beer garden with a jumbotron, retail space, and space for concerts and outdoor recreation. This plaza space outside of the Fiserv Forum presents ideas to how the JBA can create a synergy around the arena and further promote event days and community engagement.

139 Maple Leaf Square (Jurassic Park)

Location: Toronto, ON Plaza Size: 5,000 capacity

Key Takeaway: Maple Leaf Square, in Toronto, is a plaza space that connects Scotiabank Arena and the Rogers Centre. This area has been used for concerts and events, as well as watching major NHL and NBA games. Maple Leaf Square shows how an empty space between two entertainment destinations can be energized and formed into a community gathering space. Augusta could create a community gathering place between the new JBA and the existing Bell Auditorium.

140 Arts Festival Plaza

Location: El Paso, TX Plaza Size: N/A

Key Takeaway: The Arts Festival Plaza, located in Downtown El Paso, is situated in between the El Paso Museum of Art and the Plaza Theatre. This plaza has been used as a music venue, an outdoor theater, and a community gathering space. The Arts Festival Plaza is a great example showing how the plaza space outside the new JBA could be set up. The Arts Festival Plaza is very flexible and can host events year-round.

141 Midtown Plaza

Location: Carmel, IN Plaza Size: 14,000 square feet

Key Findings: The Midtown Plaza, located in Carmel, Indiana, is part of the City’s project to revitalize the old industrial area, just south of the Arts & Design District. This $4.4 million project anchors a mixed-use development of surrounding restaurants, breweries, apartments, and corporate headquarters. The plaza features green spaces, community tables, benches, a big video screen, a pool table, and several ping pong tables. The Midtown Plaza is a great example of how a simple space with furniture, nice landscaping, and recreation activities for all ages can activate surrounding developments and act as a community gathering space.

142 Sharon Prete Main Street Plaza

Location: Round Rock, TX Plaza Size: 14,000 square feet

Key Takeaway: The Sharon Prete Main Street Plaza, located in Round Rock, Texas, features a 610-square foot performance stage, 1,075-square foot interactive water feature, grass seating, custom shade structure, custom art panels, and an advanced lighting system. This plaza, along with the Centennial Plaza, also located in Round Rock, are used by the City for community events and private rentals. The Sharon Prete Main Street Plaza is a simple activation of empty space that provides the City of Round Rock with a community gathering space and rental income.

143 Texas Lottery Plaza

Location: Arlington, TX Plaza Size: 25,000+ square feet

Key Takeaway: The Texas Lottery Plaza, located in Arlington, Texas, is part of the Toyota Music Factory. This plaza is surrounded by restaurants and bars and is consistently activated by local bands playing on the plaza stage every weekend. The plaza acts as a community gathering space, an entertainment hub, and an event space. The Texas Lottery Plaza is relevant due to its location within the Toyota Music Factory and its flexibility to entertain and host events amongst larger ticketed event venues.

144 Commons Park

Location: Minneapolis, MN Plaza Size: 4.2 Acres

Key Takeaway: Common’s Park, located just outside of US Bank Stadium, offers green space for a variety of pre-game and post-game events. Additionally, the space supports concerts and other non-football events such as the X-games in 2017 – 2019. Due to the success of the event space, legislation was passed in May of 2020 to allow alcohol sales in the Park. This will generate more revenue for the team and extend the stay of visitors outside of events for longer periods.

145 Toshiba Plaza

Location: Las Vegas, NV Plaza Size: 2 Acres

Key Takeaway: Toshiba Plaza in Las Vegas offers two acres of entertainment activation space outside of the T-Mobile Arena. The plaza has three stages including the mezzanine stage attached to T-Mobile Arena. Events include fan fests, sponsorship activations, outdoor concerts and private parties. In addition to the space, a 175- foot wide and 45-foot tall video mesh wall on the side of the arena provides advertising space as well as an opportunity to show sporting events, movies and premiers.

146 Van Andel Arena Plaza

Location: Grand Rapids, MI Plaza Size: 0.75 acres

Key Takeaway: Currently, the existing exterior walkway at the Van Andel Arena is relatively plain and uninviting.A total of $2.1 million is being allocated to outfit the plaza with trees, benches, plants and more. The plaza will ultimately connect the arena to restaurants, theaters, breweries, parking garages and other areas of downtown. The plaza’s goal is to promote lingering before and after events, during a lunch break during work and other activations.

147 Klyde Warren Park

Location: Dallas, TX Plaza Size: 5.2 acres

Key Takeaway: Klyde Warren Park located in downtown Dallas is one of the most unique and recent city park developments in the country. The park is suspended above the Woodall Rodgers Freeway and sits on over 300 concrete beams. Officially opened in 2012, the park spans 5.2 acres and connects downtown Dallas to the arts district and Uptown. The park is owned by the City of Dallas and is privately operated by the Woodall Rodgers Park Foundation. Klyde Warren Park had a total budget of $110 million and was funded through a public-private partnership. The private sector contributed nearly $50 million, while public support included: $20 million in bond funds from the city of Dallas, $20 million in highway funds from the state, and $16.7 in stimulus funds.

148 Bankers Life Fieldhouse

Location: Indianapolis, IN Plaza Size: ~1.5 acres

Key Takeaway: Bankers Life Fieldhouse, where the NBA’s Indiana Pacers play their home games, is situated in downtown Indianapolis. The Fieldhouse is scheduled to go under a $360+ million renovation, that will include the development of a new indoor/outdoor plaza. This plaza will be converted into a skating rink in the winter. These renovations are scheduled to start in late 2020 and be completed by late 2022. While the development of this new, indoor/outdoor plaza at Bankers Life is part of a more than $300 million renovation, this inclusion of a plaza space and indoor/outdoor flexibility is something to take note of. An indoor/outdoor plaza space at the JBA would protect against weather and be able to host more events throughout the calendar year.

149 Naming Rights Overview and Trends

150 151 Naming Rights Overview & Trends

Naming rights have become more and more prevalent in the stadium/arena development market. These negotiations provide major brands/corporations with tremendous national exposure and encourage these businesses to engage in the local community where the venue is located. There have been many different types of naming rights deals executed in the past. Some examples of these past deals are the naming of an arena or stadium, the naming of a field or court, or the naming of an entertainment district or street. These deals can take many shapes and sizes and can be valued depending on an array of factors, such as market size, stadium capacity, historical earnings/future projections, national exposure potential, home sports tenants, and many other critical factors. Deal terms for naming rights deals typically range from five years to 25 years, in terms of length, and can be valued from roughly $100,000 per year to more than $20 million per year. These deals create an additional revenue line for stadiums/arenas that can make a big impact in the long run success of a stadium. As these venues will most likely sit empty for months to come, businesses are re-structuring contracts to include the event clauses and the potential extension of deals if no fans are allowed at home games. One trend tied to COVID-19 is the introduction of product sponsors tied to disinfectants, cleanliness, and sanitization.

151 ` Comparable Venue Naming Rights Deals

Per Year Revenue Per Year Revenue Anchor Tenant Venue Location Length (Years) Total Value (Gross) (Gross) Capacity Per Seat Anchor Tenant? League(s) Denny Sanford Premier Center Sioux Falls, SD 25 $18,750,000 $750,000 12,900 $58 Multiple Multiple Colonial Life Arena Columbia, SC 10 $6,500,000 $650,000 18,000 $36 Univeristy of South Carolina College Ford Center Evansville, IN 10 $4,200,000 $420,000 11,000 $38 Multiple Multiple Bon Secours Wellness Arena Greenville, SC 10 $4,110,000 $411,000 15,000 $27 Greenville Swamp Rabbits ECHL Intrust Bank Arena Wichita, KS 25 $8,750,000 $350,000 15,000 $23 Wichita Thunder ECHL Bojangles' Coliseum Charlotte, NC 10 $2,850,000 $285,000 10,500 $27 Charlotte Checkers AHL Average 15 $7,526,667 $477,667 13,733 $35

Source: Sports Business Journal, SponsorshipToday, Multiple Venue Management Groups, HSP

HSP identified these six naming rights deals, using the comparable arenas analyzed in this report, to better understand the market for naming rights. These deals range from 10 to 25 years and range, in total value, from roughly $3 million to $19 million. Comparable Venue The average per year gross revenue that these venues are receiving from these corporations is more than $477,000 per year. One key thing to note is that all these Naming Rights Deals comparable arenas have anchor tenants of some kind. Anchor tenants are key when trying to negotiate a favorable naming rights deal. These statistics further emphasize HSP’s belief that the James Brown Arena could 152 generate at least $250,000 per year from a naming rights deal. Case Studies: Comparable Arena Naming Rights Deals

Bon Secours Wellness Ford Center Denny Sanford

Full Name: Full Name: Full Name: Bon Secours Wellness Arena Ford Center Denny Sanford Premier Center Location: Location: Location: Greenville, SC Evansville, IN Sioux Falls, SD Deal Length: Deal Length: Deal Length: 10 years 10 years 25 years Deal Value: Deal Value: Deal Value: $411,000 per year $420,000 per year $750,000 per year Year Started: Year Started: Year Started:

2014 2011 2012 153 Case Studies: Comparable Arena Naming Rights Deals

Intrust Bank Arena Bojangles’ Coliseum Colonial Life Arena

Full Name: Full Name: Full Name: Intrust Bank Arena The BOplex Colonial Life Arena Location: Location: Location: Wichita, KS Charlotte, NC Columbia, SC Deal Length: Deal Length: Deal Length: 25 years 10 years 10 years Deal Value: Deal Value: Deal Value: $350,000 per year $285,000 per year $650,000 per year Year Started: Year Started: Year Started:

2008 2018 2015 154 155 Naming Rights - Preserving History

The legacy of the James Brown Arena has significant historic ties and is extremely important to the Augusta community. Due to this, HSP analyzed the opportunities behind selling naming rights to the JBA, but also preserving the James Brown name. The preservation of historic or significant names of stadiums/arenas has been seen recently at several venues throughout the country. Venues are making a variety of efforts across the country to achieve this preservation but also generate revenue. Some examples of this include selling rights to just the field or court, selling rights to a street or entertainment district, and the most common approach venues are taking is using historic names and sponsor names together i.e. “Historic Name…powered by Brand/Sponsor”. Many venues have taken one-time gifts from historic alumni or family’s that go towards the naming of venues, but many venue professionals recommend taking on a corporate sponsor rather than a one-time gift. Corporate names and the market for these names grow at roughly 6% - 7% per year, while one-time gifts experience stagnant growth. HSP profiled three venues, in the following slide, that have been historically off-limits, in terms of naming rights, but have recently negotiated or are seeking naming rights deals so that they can generate revenue and continue their existence through the 21st century. HSP understands that it is critical to the Augusta community to preserve the James Brown name.

155 Case Studies: Preserving Historic / Iconic Names in Naming Rights Deals

Rupp Arena Cotton Bowl Memorial Coliseum

Full Name: Full Name: Full Name: Rupp Arena at Central Bank Center Cotton Bowl Stadium presented by… United Airlines Field at LA Memorial Coliseum Location: Location: Location: Lexington, KY Dallas, TX Los Angeles, CA Deal Length: Deal Length: Deal Length: 14 years TBD 10 years Deal Value: Deal Value: Deal Value: $292,000 per year TBD N/A Year Started: Year Started: Year Started: 2016 TBD 2019 156 157 Naming Rights - No Anchor Tenant

The current James Brown Arena does not have an anchor tenant. The JBA has tried utilizing anchor tenants in the past, but has not experienced success with these tenants. It is not common for mid-size arenas to achieve a lucrative naming rights deal or a naming rights deal at all if the arena does not have an anchor tenant. Due to this, HSP identified arenas around the country that still achieved naming rights deals despite not having an anchor tenant. It is still a possibility to attract naming rights without an anchor tenant, but having an anchor tenant makes this process easier and most of the time more lucrative for the owner of the arena. HSP does not recommend that the new JBA be designed for a specific anchor tenant or that an anchor tenant be attracted just to secure a naming rights deal. However, an anchor tenant can help fill the calendar for many mid-sized arenas and help increase the monetary value of a potential naming rights deal.

157 Case Studies: Arenas Without Anchor Tenants Achieving Naming Rights

Sames Auto Arena Mountain Health Arena BanCorp South Arena

Full Name: Full Name: Full Name: Sames Auto Arena Mountain Health Arena BanCorp South Arena Location: Location: Location: Laredo, TX Huntington, WV Tupelo, MS Capacity: Capacity: Capacity: 9,622 9,000 10,000 Deal Length: Deal Length: Deal Length: 5 years 10 years N/A Deal Value: Deal Value: Deal Value: $120,000 per year $175,000 per year $200,000 per year Year Started: Year Started: Year Started: 158 2018 2019 2006 159 Naming Rights Implications

There are many ways for naming rights deals to be structured and to contribute to the success of a stadium/arena. There are an array of case studies surrounding these deals that should be considered when negotiating these deals. Highlights from these case studies are: § Historic / Iconic name preservation. The history of James Brown plays a major role in the Augusta community and the inclusion of his name in the new arena development needs to be addressed. Many arenas and stadiums have worked out negotiations with businesses to preserve historic/iconic names. The inclusion of James Brown in the naming of this facility can take place in many forms. § Increase the bottom line. Naming rights deals ultimately help venues increase their bottom line, by receiving yearly payments from sponsors. These deals help small - mid-size venues breakeven and increase their chances of turning an annual profit. HSP believes that naming rights for the James Brown Arena could be at least $250,000 per year towards the venues bottom line. § Promote community engagement. Finding the right business/brand to sponsor a venue is key. Looking at major, local corporations or local brands should be the first step in the process. Picking the right sponsor is critical when the venue is seen on a national level, but also when it is seen by the local community.A sponsor that is willing to promote local community engagement is the ideal situation. § Research and negotiation. Many factors need to go into determining the right venue sponsor and the appropriate deal terms. Researching comparable venue deals, analyzing the market potential, and engaging local businesses and residents are a few steps a venue can take to ensuring a successful naming rights deal. § Anchor Tenant(s). While it is not imperative that the new JBA attract an anchor tenant, anchor tenants tend to increase the monetary value of naming rights deals. 159 Chapter 5: Site Analysis

160 161 The Site

Two scenarios are presented, both BLVD. BROWN JAMES WATKINS ST. include the new arena connected to the Bell. The difference is that the larger scenario includes a ballroom and meeting rooms as part of the FENWICK ST. connection to the Bell, which will allow for more and varied events. The smaller scenario does not include the CONCEPT DESIGN - AUGUST 2020 OVERALL SITE PLAN ballroom/meeting space as part of the JAMES BROWN ARENA 23 connection. The larger scenario is more compelling in terms of impact relative to cost. 161 Chapter 6: Recommendations

162 Recommendations

§ HSP recognizes that the new arena is a once in a lifetime opportunity to reinvigorate the entertainment and event- hosting scene in Augusta. As such, there is an opportunity to accomplish several additional goals: § Expand the types and sizes of events that can be hosted in Augusta, including events beyond the typical arena event, such as larger conventions, consumer shows, tradeshows and tournaments that are too big to be held in existing local facilities. As such, HSP is recommending a connected multipurpose event complex that offers more types of spaces that, when combined, offer a menu of options for all manner of events that cannot be held today. § Enhance the pre- and post-event atmosphere and physical space so that going to event becomes an opportunity for attendees to “linger longer” before and after, spend more money and time, extend their stay and create more impact on Augusta. This will allow the project to enhance downtown Augusta and become a more impactful node of activity. § A new public space curated with shade trees and structures, as well as other public amenities, will allow for the area to be a true public asset year-round, not just during events. § Enlarge the new arena so it can host more and and larger events compared to the existing JBA. § Enhance the new arena with amenities, suites, club areas and other unique experiences currently not offered. These will allow the community a choice of experiences and price points that add value to their ticket, as well as the community at large. These options will also generate more potential income for acts and the facility, enhancing its popularity and sustainability. 163 Recommendation 164 Scenarios Recommendations The primary recommendation for the development of the new James Brown Components Primary Secondary Arena includes the development of Arena rentable meeting space. This meeting End-Stage Capacity 10,000+ 10,000+ space will provide a connection from the Lower Bowl Capacity 6,500 6,500 James Brown Arena to the Bell Premium Seats 1,050 1,050 Auditorium. Suites 12 12 The secondary recommendation mimics Meeting Space (Bell Auditorium Connection) the preferred recommendation, without Ballroom (sf) 20,000 -- meeting space. Meeting Rooms 12 -- Meeting Rooms (sf) 1,200 -- Each recommendation includes a Boardroom (sf) 500 -- connection of the JBA to the Bell and an outdoor entertainment/festival area Other between the JBA and the Bell. Connection to Bell Auditorium Yes Yes Outdoor Event Plaza Yes Yes

Source: Hunden Strategic Partners, S.P.A.C.E, Perkins & Will

164 Chapter 7: Demand and Financial Projections

165 With Meeting Space

166 Arena Projection & Proforma Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Events by Type Graduations 7 7 7 7 7 7 7 7 7 7 Conferences/Conventions 12 15 18 21 24 24 24 24 24 24 Concerts 11 11 10 10 10 10 10 10 10 10 Family Shows 23 23 23 23 23 23 23 23 23 23 Sports 8 11 14 15 15 15 15 15 15 15 Consumer Shows 4 6 8 10 10 10 10 10 10 10 Community Events 4 6 8 8 8 8 8 8 8 8 Banquets 40 64 88 112 112 112 112 112 112 112 Meetings 72 84 96 108 120 120 120 120 120 120 Total 181 227 272 314 329 329 329 329 329 329

Rental Hours ------

Source: Hunden Strategic Partners

Arena The arena and meeting space complex is expected to host over 300 events per Events & Event Days year during stabilization. Majority of these events are expected to be banquets and meetings. Arena Projection & Proforma Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Average Attendance by Event Type Graduations 6,750 6,750 6,750 6,750 6,750 6,750 6,750 6,750 6,750 6,750 Conferences/Conventions 200 200 200 200 200 200 200 200 200 200 Concerts 5,750 5,750 5,750 5,750 5,750 5,750 5,750 5,750 5,750 5,750 Family Shows 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 Sports 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 Consumer Shows 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800 2,800 Community Events 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 2,400 Banquets 180 180 180 180 180 180 180 180 180 180 Meetings 45 45 45 45 45 45 45 45 45 45

Source: Hunden Strategic Partners

Net Operating Income $ 62 $ 286 $ 434 $ 634 $ 668 $ 648 $ 659 $ 669 $ 679 $ 690

Reserves (Authority Funded) $ 126 $ 137 $ 145 $ 156 $ 160 $ 162 $ 165 $ 168 $ 171 $ 175

Source: Hunden Strategic Partners

HSP projects that the arena and meeting space complex will generate total Arena annual revenue of $3.1 million in Year 1 and increase revenues to more than $4.3 Pro Forma million by Year 10. Expenses are projected to total more than 3 million in Year 1 and increase to more than $3.6 million by the end of the period. Current and Future JBA/Bell Complex Revenue & Expense - With Added Ballroom/Meeting Complex

Source: Hunden Strategic Partners

Complex HSP projects that the complex of the new James Brown Arena, the attached meeting space, and the Bell Auditorium, will generate revenue of roughly $3.8 Pro Forma million in Year 1. Expenses are projected to total over $3.9 million in Year 1 for a net loss of roughly $106,000. Impact Inputs & Projections Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 % and # Daytrips Daily Rental ------Graduations 42,525 42,525 42,525 42,525 42,525 42,525 42,525 42,525 42,525 42,525 Conferences/Conventions 4,500 5,625 6,750 7,875 9,000 9,000 9,000 9,000 9,000 9,000 Concerts 56,925 56,925 51,750 51,750 51,750 51,750 51,750 51,750 51,750 51,750 Family Shows 51,750 51,750 51,750 51,750 51,750 51,750 51,750 51,750 51,750 51,750 Sports 9,000 12,375 15,750 16,875 16,875 16,875 16,875 16,875 16,875 16,875 Consumer Shows 27,440 41,160 54,880 68,600 68,600 68,600 68,600 68,600 68,600 68,600 Community Events 9,504 14,256 19,008 19,008 19,008 19,008 19,008 19,008 19,008 19,008 Banquets 6,624 10,598 14,573 18,547 18,547 18,547 18,547 18,547 18,547 18,547 Meetings 3,791 4,423 5,054 5,686 6,318 6,318 6,318 6,318 6,318 6,318 Total 212,059 239,637 262,040 282,616 284,373 284,373 284,373 284,373 284,373 284,373

% and # Overnights (in hotels) Daily Rental ------Graduations 4,725 4,725 4,725 4,725 4,725 4,725 4,725 4,725 4,725 4,725 Conferences/Conventions 1,500 1,875 2,250 2,625 3,000 3,000 3,000 3,000 3,000 3,000 Concerts 6,325 6,325 5,750 5,750 5,750 5,750 5,750 5,750 5,750 5,750 Family Shows 5,750 5,750 5,750 5,750 5,750 5,750 5,750 5,750 5,750 5,750 Sports 3,000 4,125 5,250 5,625 5,625 5,625 5,625 5,625 5,625 5,625 Consumer Shows 560 840 1,120 1,400 1,400 1,400 1,400 1,400 1,400 1,400 Community Events 96 144 192 192 192 192 192 192 192 192 Banquets 576 922 1,267 1,613 1,613 1,613 1,613 1,613 1,613 1,613 Meetings 421 491 562 632 702 702 702 702 702 702 Total 22,953 25,197 26,866 28,312 28,757 28,757 28,757 28,757 28,757 28,757

Source: Hunden Strategic Partners

Arena Daytrips are projected to increase from 212,000 in Year 1 to more than 284,000 in Year 5. Overnight stays are projected over 22,000 in Year 1 and roughly 28,000 Daytrips and Overnights during the stabilized year. Family shows, concerts and sports are projected to generate the most overnight stays. Impact Inputs & Projections Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Total Room Nights Generated Graduations 2,363 2,363 2,363 2,363 2,363 2,363 2,363 2,363 2,363 2,363 Conferences/Conventions 750 938 1,125 1,313 1,500 1,500 1,500 1,500 1,500 1,500 Concerts 3,163 3,163 2,875 2,875 2,875 2,875 2,875 2,875 2,875 2,875 Family Shows 2,875 2,875 2,875 2,875 2,875 2,875 2,875 2,875 2,875 2,875 Sports 1,500 2,063 2,625 2,813 2,813 2,813 2,813 2,813 2,813 2,813 Consumer Shows 280 420 560 700 700 700 700 700 700 700 Community Events 48 72 96 96 96 96 96 96 96 96 Banquets 288 461 634 806 806 806 806 806 806 806 Meetings 234 273 312 351 390 390 390 390 390 390 Total 11,500 12,626 13,464 14,191 14,417 14,417 14,417 14,417 14,417 14,417

Source: Hunden Strategic Partners

Arena Annual room night demand from events is expected to stabilize at more than Room Nights 14,000. Without Meeting Space

173 Arena Projection & Proforma Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Events by Type Graduations 7 7 7 7 7 7 7 7 7 7 Conferences/Conventions ------Concerts 10 10 9 9 9 9 9 9 9 9 Family Shows 23 23 23 23 23 23 23 23 23 23 Sports 7 8 9 9 9 9 9 9 9 9 Consumer Shows 1 2 3 4 4 4 4 4 4 4 Community Events 2 3 4 4 4 4 4 4 4 4 Banquets 6 8 9 10 11 11 11 11 11 11 Meetings and Other 12 18 24 27 30 30 30 30 30 30 Total 68 79 88 93 97 97 97 97 97 97

Rental Hours ------

Source: Hunden Strategic Partners

Net Operating Income $ 58 $ 104 $ 65 $ 90 $ 93 $ 63 $ 63 $ 62 $ 62 $ 61

Reserves (Authority Funded) $ 107 $ 111 $ 111 $ 115 $ 117 $ 118 $ 120 $ 123 $ 125 $ 127

Source: Hunden Strategic Partners

Complex HSP projects that the complex of the new James Brown Arena and the Bell Pro Forma Auditorium will generate total annual revenue of $3.4 million in Year 1. Expenses are projected to total nearly $3.5 million in Year 1 for a net loss of $109,000. Impact Inputs & Projections Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 % and # Daytrips Daily Rental ------Graduations 42,525 42,525 42,525 42,525 42,525 42,525 42,525 42,525 42,525 42,525 Conferences/Conventions ------Concerts 51,750 51,750 46,575 46,575 46,575 46,575 46,575 46,575 46,575 46,575 Family Shows 51,750 51,750 51,750 51,750 51,750 51,750 51,750 51,750 51,750 51,750 Sports 9,450 10,800 12,150 12,150 12,150 12,150 12,150 12,150 12,150 12,150 Consumer Shows 6,370 12,740 19,110 25,480 25,480 25,480 25,480 25,480 25,480 25,480 Community Events 4,752 7,128 9,504 9,504 9,504 9,504 9,504 9,504 9,504 9,504 Banquets 635 846 952 1,058 1,164 1,164 1,164 1,164 1,164 1,164 Meetings and Other 324 486 648 729 810 810 810 810 810 810 Total 167,556 178,025 183,214 189,771 189,958 189,958 189,958 189,958 189,958 189,958

% and # Overnights (in hotels) Daily Rental ------Graduations 4,725 4,725 4,725 4,725 4,725 4,725 4,725 4,725 4,725 4,725 Conferences/Conventions ------Concerts 5,750 5,750 5,175 5,175 5,175 5,175 5,175 5,175 5,175 5,175 Family Shows 5,750 5,750 5,750 5,750 5,750 5,750 5,750 5,750 5,750 5,750 Sports 3,150 3,600 4,050 4,050 4,050 4,050 4,050 4,050 4,050 4,050 Consumer Shows 130 260 390 520 520 520 520 520 520 520 Community Events 48 72 96 96 96 96 96 96 96 96 Banquets 55 74 83 92 101 101 101 101 101 101 Meetings and Other 36 54 72 81 90 90 90 90 90 90 Total 19,644 20,285 20,341 20,489 20,507 20,507 20,507 20,507 20,507 20,507

Source: Hunden Strategic Partners

Arena Daytrips are projected to increase from roughly 170,000 in Year 1 to roughly 190,000 in Year 10. Overnight stays are projected at 20,000 in Year 1 and nearly Daytrips and Overnights 21,000 during the stabilized year. Family shows, concerts, and graduations are projected to generate the most overnight stays. Impact Inputs & Projections Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Total Room Nights Generated Graduations 2,363 2,363 2,363 2,363 2,363 2,363 2,363 2,363 2,363 2,363 Conferences/Conventions ------Concerts 2,875 2,875 2,588 2,588 2,588 2,588 2,588 2,588 2,588 2,588 Family Shows 2,875 2,875 2,875 2,875 2,875 2,875 2,875 2,875 2,875 2,875 Sports 1,575 1,800 2,025 2,025 2,025 2,025 2,025 2,025 2,025 2,025 Consumer Shows 65 130 195 260 260 260 260 260 260 260 Community Events 24 36 48 48 48 48 48 48 48 48 Banquets 28 37 41 46 51 51 51 51 51 51 Meetings and Other 20 30 40 45 50 50 50 50 50 50 Total 9,824 10,145 10,174 10,249 10,259 10,259 10,259 10,259 10,259 10,259

Source: Hunden Strategic Partners

Arena Annual room night demand from arena events is expected to stabilize at more Room Nights than 10,000. Chapter 8: Economic, Fiscal and Employment Impact Analysis

180 With Meeting Space

181 Direct Net New/Recaptured Spending to Augusta (000s)

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 20 Year 30 Total Food & Beverage $ 5,916 $ 6,792 $ 7,549 $ 8,280 $ 8,508 $ 8,678 $ 8,852 $ 9,029 $ 9,209 $ 9,394 $ 11,451 $ 13,958 $ 315,013 Lodging$ 1,599 $ 1,790 $ 1,947 $ 2,093 $ 2,169 $ 2,213 $ 2,257 $ 2,302 $ 2,348 $ 2,395 $ 3,149 $ 3,838 $ 85,131 Retail $ 2,218 $ 2,547 $ 2,831 $ 3,105 $ 3,191 $ 3,254 $ 3,319 $ 3,386 $ 3,454 $ 3,523 $ 4,294 $ 5,234 $ 118,130 Transportation $ 5,423 $ 6,226 $ 6,920 $ 7,590 $ 7,799 $ 7,955 $ 8,114 $ 8,276 $ 8,442 $ 8,611 $ 10,497 $ 12,795 $ 288,762 Other $ 2,711 $ 3,113 $ 3,460 $ 3,795 $ 3,900 $ 3,978 $ 4,057 $ 4,138 $ 4,221 $ 4,305 $ 5,248 $ 6,398 $ 144,381 Total $ 17,867 $ 20,467 $ 22,708 $ 24,862 $ 25,567 $ 26,078 $ 26,599 $ 27,131 $ 27,674 $ 28,228 $ 34,639 $ 42,224 $ 951,416

Source: Hunden Strategic Partners

Direct net new, including recaptured, spending falls into five categories: food & Direct Net New & beverage, lodging, retail, transportation and other. Recaptured Spending The total for these categories during the 30-year period shown is roughly $950 million. $315 million of this total is expected to come from food and beverage spending, while transportation spending is expected to also generate more than $288 million. Direct, Indirect & Induced Spending to Augusta

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 20 Year 30 Total Direct $ 17,867 $ 20,467 $ 22,708 $ 24,862 $ 25,567 $ 26,078 $ 26,599 $ 27,131 $ 27,674 $ 28,228 $ 34,639 $ 42,224 $ 951,416 Indirect $ 6,928 $ 7,937 $ 8,806 $ 9,641 $ 9,914 $ 10,113 $ 10,315 $ 10,521 $ 10,732 $ 10,946 $ 13,432 $ 16,373 $ 368,932 Induced $ 3,869 $ 4,435 $ 4,923 $ 5,394 $ 5,545 $ 5,656 $ 5,769 $ 5,885 $ 6,002 $ 6,122 $ 7,496 $ 9,138 $ 206,011 Total $ 28,664 $ 32,838 $ 36,437 $ 39,897 $ 41,026 $ 41,847 $ 42,683 $ 43,537 $ 44,408 $ 45,296 $ 55,567 $ 67,736 $ 1,526,359

Source: Hunden Strategic Partners

All three levels of spending are expected to combine for over $1.5 billion during Direct, Indirect & Induced the Project’s first 30 years. As mentioned on the previous slide, $950 million of Net New Spending spending will come directly from onsite visitation, while indirect and induced spending are projected to produce roughly $368 million and $206 million, respectively. Net New Earnings & FTE Jobs from Direct, Indirect & Induced Spending (000s)

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 20 Year 30 Total Net New Earnings From Direct $ 8,380 $ 9,604 $ 10,660 $ 11,675 $ 12,004 $ 12,244 $ 12,489 $ 12,739 $ 12,994 $ 13,254 $ 16,240 $ 19,797 $ 446,220 From Indirect $ 2,364 $ 2,702 $ 2,993 $ 3,271 $ 3,366 $ 3,434 $ 3,502 $ 3,572 $ 3,644 $ 3,717 $ 4,589 $ 5,595 $ 125,873 From Induced $ 1,581 $ 1,810 $ 2,008 $ 2,198 $ 2,261 $ 2,306 $ 2,352 $ 2,399 $ 2,447 $ 2,496 $ 3,066 $ 3,737 $ 84,183 Total $ 12,324 $ 14,116 $ 15,660 $ 17,145 $ 17,631 $ 17,984 $ 18,343 $ 18,710 $ 19,084 $ 19,466 $ 23,895 $ 29,128 $ 656,276 Net New FTE Jobs Average From Direct 287 323 351 378 380 380 380 380 380 380 382 382 375 From Indirect 116 131 142 153 154 154 154 154 154 154 155 155 152 From Induced 65 73 80 86 86 86 86 86 86 86 87 87 85 Total 469 527 574 616 621 621 621 621 621 621 623 623 613

Source: Hunden Strategic Partners

Jobs will be created onsite as well as onsite and offsite from the direct, indirect and induced spending, which are expected to produce net new earnings of $656 Net New Earnings and Full- million during the period shown. Time Equivalent Jobs Net new full-time equivalent jobs are expected to be created directly within the Project, as well as direct, indirect and induced jobs from earnings. During the 30- year period, the Project is expected to support an average of 613 jobs. Fiscal Impact - Tax Impacts from New District Spending (000s)

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 20 Year 30 Total Capturable Taxes Sales Tax (4.0%) $ 414.1 $ 475.4 $ 528.4 $ 579.6 $ 595.6 $ 607.5 $ 619.6 $ 632.0 $ 644.7 $ 657.6 $ 801.6 $ 977.1 $ 22,051 SPLOST (1.0%) $ 103.5 $ 118.9 $ 132.1 $ 144.9 $ 148.9 $ 151.9 $ 154.9 $ 158.0 $ 161.2 $ 164.4 $ 200.4 $ 244.3 $ 5,513 Hotel Tax (6.0%) $ 95.9 $ 107.4 $ 116.8 $ 125.6 $ 130.2 $ 132.8 $ 135.4 $ 138.1 $ 140.9 $ 143.7 $ 188.9 $ 230.3 $ 5,108 Beverage Tax (3.0%) $ 61.3 $ 70.9 $ 78.9 $ 87.5 $ 90.0 $ 91.8 $ 93.6 $ 95.5 $ 97.4 $ 99.4 $ 121.1 $ 147.7 $ 3,329 Total $ 25.8 $ 772.6 $ 856.3 $ 937.6 $ 964.6 $ 983.9 $ 1,003.6 $ 1,023.7 $ 1,044.1 $ 1,065.0 $ 1,312.0 $ 1,599.3 $ 36,001

Source: Hunden Strategic Partners

Fiscal Impact The Project is expected to generate roughly $36 million in taxes collected in the first 30 years. The bulk of tax dollars will be generated through the 4 percent sales tax. Summary of 30-Yr. Summary of Impacts 30-Year Impacts Net New Spending (millions) Direct $951 Indirect $369 The Project is expected to generate roughly Induced $206 $1.5 billion in net new spending, $656 million Total $1,526 in net new earnings and 621 new full-time equivalent jobs at stabilization. Net New Earnings (millions) From Direct $446 Capturable fiscal impact is expected to total From Indirect $126 approximately $36 million from sales, hotel and beverage taxes. From Induced $84 Total $656 Net New FTE Jobs Actual From Direct 380 From Indirect 154 From Induced 86 Total 621

Capturable Taxes (millions) Sales Tax (4.0%) $22.1 SPLOST (1.0%) $5.5 Hotel Tax (6.0%) $5.1 Beverage Tax (3.0%) $3.3 Total $36.0

Source: Hunden Strategic Partners

186 Without Meeting Space

187 Direct Net New/Recaptured Spending to Augusta (000s)

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 20 Year 30 Total Food & Beverage $ 4,729 $ 5,103 $ 5,337 $ 5,616 $ 5,734 $ 5,849 $ 5,966 $ 6,085 $ 6,207 $ 6,331 $ 7,717 $ 9,407 $ 213,850 Lodging$ 1,366 $ 1,438 $ 1,471 $ 1,512 $ 1,543 $ 1,574 $ 1,606 $ 1,638 $ 1,671 $ 1,704 $ 1,438 $ 1,753 $ 44,754 Retail $ 1,773 $ 1,914 $ 2,001 $ 2,106 $ 2,150 $ 2,193 $ 2,237 $ 2,282 $ 2,327 $ 2,374 $ 2,894 $ 3,528 $ 80,194 Transportation $ 4,334 $ 4,678 $ 4,892 $ 5,148 $ 5,256 $ 5,361 $ 5,468 $ 5,578 $ 5,689 $ 5,803 $ 7,074 $ 8,623 $ 196,029 Other $ 2,167 $ 2,339 $ 2,446 $ 2,574 $ 2,628 $ 2,681 $ 2,734 $ 2,789 $ 2,845 $ 2,902 $ 3,537 $ 4,312 $ 98,015 Total $ 14,369 $ 15,471 $ 16,147 $ 16,956 $ 17,312 $ 17,658 $ 18,011 $ 18,371 $ 18,739 $ 19,114 $ 22,660 $ 27,622 $ 632,842

Source: Hunden Strategic Partners

Direct net new, including recaptured, spending falls into five categories: food & Direct Net New & beverage, lodging, retail, transportation and other. Recaptured Spending The total for these categories during the 30-year period shown is roughly $632 million. $214 million of this total is expected to come from food and beverage spending, while transportation spending is expected to also generate nearly $196 million. Direct, Indirect & Induced Spending to Augusta

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 20 Year 30 Total Direct $ 14,369 $ 15,471 $ 16,147 $ 16,956 $ 17,312 $ 17,658 $ 18,011 $ 18,371 $ 18,739 $ 19,114 $ 22,660 $ 27,622 $ 632,842 Indirect $ 5,572 $ 5,999 $ 6,261 $ 6,575 $ 6,713 $ 6,847 $ 6,984 $ 7,124 $ 7,266 $ 7,412 $ 8,788 $ 10,713 $ 245,430 Induced $ 3,105 $ 3,346 $ 3,494 $ 3,672 $ 3,749 $ 3,824 $ 3,900 $ 3,978 $ 4,058 $ 4,139 $ 4,952 $ 6,037 $ 137,952 Total $ 23,046 $ 24,816 $ 25,903 $ 27,203 $ 27,774 $ 28,329 $ 28,896 $ 29,474 $ 30,063 $ 30,664 $ 36,400 $ 44,372 $ 1,016,223

Source: Hunden Strategic Partners

All three levels of spending are expected to combine for over $1 billion during Direct, Indirect & Induced the Project’s first 30 years. As mentioned on the previous slide, $632 million of Net New Spending spending will come directly from onsite visitation, while indirect and induced spending are projected to produce nearly $245 million and $138 million, respectively. Net New Earnings & FTE Jobs from Direct, Indirect & Induced Spending (000s)

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 20 Year 30 Total Net New Earnings From Direct $ 6,730 $ 7,250 $ 7,570 $ 7,953 $ 8,120 $ 8,282 $ 8,448 $ 8,617 $ 8,789 $ 8,965 $ 10,694 $ 13,035 $ 298,137 From Indirect $ 1,912 $ 2,054 $ 2,140 $ 2,243 $ 2,290 $ 2,335 $ 2,382 $ 2,430 $ 2,478 $ 2,528 $ 2,917 $ 3,556 $ 82,105 From Induced $ 1,272 $ 1,370 $ 1,429 $ 1,500 $ 1,532 $ 1,562 $ 1,594 $ 1,625 $ 1,658 $ 1,691 $ 1,997 $ 2,434 $ 55,831 Total $ 9,915 $ 10,674 $ 11,139 $ 11,696 $ 11,941 $ 12,180 $ 12,424 $ 12,672 $ 12,926 $ 13,184 $ 15,608 $ 19,026 $ 436,072 Net New FTE Jobs Average From Direct 230 243 249 257 257 257 257 257 257 257 253 253 253 From Indirect 93 99 101 104 104 104 104 104 104 104 103 103 103 From Induced 52 55 57 58 58 58 58 58 58 58 58 58 58 Total 376 397 407 419 420 420 420 420 420 420 414 414 413

Source: Hunden Strategic Partners

Jobs will be created onsite as well as onsite and offsite from the direct, indirect and induced spending, which are expected to produce net new earnings of $436 Net New Earnings and Full- million during the period shown. Time Equivalent Jobs Net new full-time equivalent jobs are expected to be created directly within the Project, as well as direct, indirect and induced jobs from earnings. During the 30- year period, the Project is expected to support an average of 413 jobs. Fiscal Impact - Tax Impacts from New District Spending (000s)

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 20 Year 30 Total Capturable Taxes Sales Tax (4.0%) $ 331.0 $ 357.2 $ 373.6 $ 393.1 $ 401.4 $ 409.4 $ 417.6 $ 425.9 $ 434.5 $ 443.1 $ 540.2 $ 658.5 $ 14,970 SPLOST (1.0%) $ 82.7 $ 89.3 $ 93.4 $ 98.3 $ 100.3 $ 102.4 $ 104.4 $ 106.5 $ 108.6 $ 110.8 $ 135.0 $ 164.6 $ 3,742 Hotel Tax (6.0%) $ 81.9 $ 86.3 $ 88.3 $ 90.7 $ 92.6 $ 94.5 $ 96.4 $ 98.3 $ 100.2 $ 102.2 $ 86.3 $ 105.2 $ 2,685 Beverage Tax (3.0%) $ 47.0 $ 50.1 $ 51.2 $ 53.5 $ 54.6 $ 55.7 $ 56.9 $ 58.0 $ 59.2 $ 60.3 $ 73.5 $ 89.7 $ 2,042 Total $ 18.6 $ 582.9 $ 606.5 $ 635.6 $ 649.0 $ 662.0 $ 675.2 $ 688.7 $ 702.5 $ 716.5 $ 835.1 $ 1,017.9 $ 23,439

Source: Hunden Strategic Partners

Fiscal Impact The Project is expected to generate more than $23 million in taxes collected in the first 30 years. The bulk of tax dollars will be generated through the 4 percent sales tax. Summary of 30-Yr. Summary of Impacts Net New Spending (millions) 30-Year Impacts Direct $633 Indirect $245 The Project is expected to generate over $1 Induced $138 billion in net new spending, $436 million in Total $1,016 net new earnings and 420 new full-time equivalent jobs at stabilization. Net New Earnings (millions) From Direct $298 Capturable fiscal impact is expected to total From Indirect $82 approximately $23 million from sales, hotel From Induced $56 and beverage taxes. Total $436 Net New FTE Jobs Actual From Direct 257 From Indirect 104 From Induced 58 Total 420

Capturable Taxes (millions) Sales Tax (4.0%) $15.0 SPLOST (1.0%) $3.7 Hotel Tax (6.0%) $2.7 Beverage Tax (3.0%) $2.0 Total $23.4

Source: Hunden Strategic Partners 192 Hunden Strategic Partners is a full-service real estate development advisory practice specializing in destination assets.

With professionals in Chicago, San Diego, Indianapolis and Minneapolis, HSP provides a variety of services for all stages of destination development in:

- Real Estate Market & Financial Feasibility - Economic, Fiscal & Employment Impact Analysis (Cost/Benefit) - Organizational Development - Public Incentive Analysis - Economic and Tourism Policy/Legislation Consulting - Research & Statistical Analysis For further information about Hunden Strategic - Developer Solicitation & Selection Partners, please contact:

Hunden Strategic Partners 213 W. Institute Place, Suite 707 The firm and its principal have performed more than 700 studies Chicago, Illinois 60610 over the past 20 years, with more than $4.5 billion in built, 312.643.2500 www.hundenpartners.com successful projects.