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Feasibility Report MULTI-PURPOSE FIELD COMPLEX | COLUMBIA COUNTY, FL Feasibility Report MAY 2019 ···ttJU • · ' � . ' ",• 1"t'. ·.,,.,. .. · � : · .. - l' � ,.,,,' · ._. ,\;,._ PREPARED FOR: COLUMBIA COUNTY, FL COLUMBIA COUNTY MULTI-PURPOSE FIELD COMPLEX FEASIBILITY REPORT T ABLE O F C ONTENTS EXECUTIVE SUMMARY 2 INTRODUCTION 7 MARKET OVERVIEW 9 DEMOGRAPHIC & SOCIOECONOMIC ANALYSIS 10 SPORTS IN THE REGION 13 EXISTING SERVICE PROVIDERS AND EVENTS 14 SPORTS TOURISM INDUSTRY INSIGHTS 18 FACILITY PROGRAM & OPINION OF COST 22 PROGRAMMING, PRODUCTS, & SERVICES 27 FINANCIAL OVERVIEW 29 ECONOMIC IMPACT ANALYSIS 33 CONCLUSION & NEXTS STEPS 37 APPENDIX 38 DRAFT 1 COLUMBIA COUNTY MULTI-PURPOSE FIELD COMPLEX FEASIBILITY REPORT E XECUTIVE S UMMARY Scope of Work In October of 2018, Sports Facilities Advisory, LLC (SFA) was engaged by Columbia County, FL to complete an analysis related to the development of an outdoor multi-purpose field complex focused on hosting tournaments and events that will be a driver of new visitor spending to the area as well as serving the needs of the local community and existing sports organizations. SFA’s engagement consisted of the following steps: • Project Kick-Off Call • Existing Data Review & Market Study • Site Visit/Market Tour with Business Development Planning Session (BDPS) • Detailed Financial Forecast (Pro Forma) • Economic Impact Analysis • Feasibility Report • Presentation of Findings This feasibility report provides an overview of the process used for the analysis, results of the pro forma and economic impact analysis, and recommendations for next steps. Definitions of Success SFA facilitated a business development planning and strategy session with representatives from Columbia County (Project Team) to determine the definitions of success for the Columbia County Multi-Purpose Field Complex. As a result of that exercise, it was determined that a new sports complex in Columbia County must meet the below criteria to be deemed successful: 1. Become a premiere multi-purpose field complex that attracts, hosts, and retains multi-purpose field sports tournaments and events. 2. Create a significant driver of economic impact, generating new spending from non- local visitors who would not be in Columbia County but for events held at the Complex. 3. Enhance the sense of place and quality of life in the community by improving local access to sports and recreation in terms of time, cost, and location. Facility Features In consideration of the Project Team’s definitions of success and based on the information outlined throughout this report related to the market opportunity, SFA created two facility program options for the Columbia County Multi-Purpose Field Complex. The “12 Field Model” would become one of the regional leaders for outdoor multi-purpose field facilities and has the greatest ability to generate economic impact, non-local visitation, and new tax revenue generation. The “8 Field Model” reduces the cost of development, operating expenses, and the amount of land required. Additionally, the 8 Field Model generates less economic impact, non-local visitation, and new tax revenue generation. However, the 8 Field Model would still be a regional destination for multi-purpose field tournaments and events. It is important to note while SFA analyzed site locations provided by the Project Team, for the purposes of this study SFA utilized a central location within the County to analyze the market. As a result, SFA developed both models without utilizing a particular site, but rather based on SFA’s research,DRAFT analysis, and knowledge in the region. 2 COLUMBIA COUNTY MULTI-PURPOSE FIELD COMPLEX FEASIBILITY REPORT A summary of the facility program options, which have been detailed later in this report, are provided below: Facility Program – 12 Field Model The 12 Field Model features an outdoor athletic complex that is approximately 73.3 acres. Included over that acreage are the following spaces and amenities: • Multi-Purpose Fields o Eight full-size synthetic turf multi-purpose fields o Four full-size natural grass multi-purpose fields • Guest Amenities o One children’s playground • Primary Support, Secondary Support, and Maintenance Buildings • Two Pavilion Seating Areas Facility Development Opinion of Cost – 12 Field Model As detailed in the full financial forecast, the following table demonstrates a summary of the projected cost of development for the 12 Field Model. As mentioned before, while a particular site was not utilized, SFA estimated the cost of land based on market rates as communicated to SFA during the Business Development Planning Session. USES OF FUNDS – 12 FIELD MODEL Land Cost $2,930,307 Hard Cost $10,033,943 Field and Sport Equipment Cost $10,362,609 Furniture, Fixtures, and Equipment $1,400,438 Soft Costs Construction $1,758,338 Soft Costs Operations $970,040 Working Capital Reserve TBD Total Uses of Funds $27,455,674 The opinion of cost is based on the cost of developing similar projects throughout the country and adjusted to reflect current market conditions and costs specific to development in the state of Florida. Facility Program – 8 Field Model The 8 Field Model features an outdoor athletic complex that is approximately 49.0 acres. Included over that acreage are the following spaces and amenities: • Multi-Purpose Fields o Two full-size synthetic turf multi-purpose fields o Six full-size natural grass multi-purpose fields • Guest Amenities o One children’s playground • Primary Support, Secondary Support, and Maintenance Buildings • Two Pavilion Seating Areas Facility Development Opinion of Cost – 8 Field Model As detailedDRAFT in the full financial forecast, the following table demonstrates a summary of the projected cost of development. 3 COLUMBIA COUNTY MULTI-PURPOSE FIELD COMPLEX FEASIBILITY REPORT Similar to the 12 Field Model, the cost of land estimates are based on market rates as communicated to SFA during the Business Planning and Strategy Session. USES OF FUNDS – 8 FIELD MODEL Land Cost $1,960,492 Hard Cost $7,102,954 Field and Sport Equipment Cost $5,132,605 Furniture, Fixtures, and Equipment $1,232,963 Soft Costs Construction $1,190,775 Soft Costs Operations $962,755 Working Capital Reserve TBD Total Uses of Funds $17,582,543 The opinion of cost is based on the cost of developing similar projects throughout the country and adjusted to reflect current market conditions and costs specific to development in the state of Florida. Summary of Financial Performance (Years 1-5) – 12 Field Model The following table is a summary of the forecasted revenues, cost of goods sold, operating expenses, new tax revenue, and net financial impact for the 12 Field Model through the first five years of operation. The details of the complex’s financial performance breakdown have been provided in the full financial forecast documents. New tax revenue is calculated based on the revenue directly to the County through the lodging and sales tax rates on visitor spending as forecasted in the pro forma. Year 1 Year 2 Year 3 Year 4 Year 5 Total Revenue $395,742 $527,592 $616,370 $640,515 $661,735 Total Cost of Goods Sold $152,480 $209,010 $240,761 $248,719 $253,118 Gross Margin $243,262 $318,581 $375,608 $391,797 $408,618 Total Operating Expenses $437,302 $457,960 $475,583 $483,925 $491,381 EBITDA ($194,039) ($139,379) ($99,975) ($92,128) ($82,764) New Tax Revenue - County $98,729 $147,054 $174,301 $178,883 $178,883 Net Financial Impact ($95,310) $7,676 $74,326 $86,754 $96,119 Summary of Economic Impact (Years 1-5) – 12 Field Model As detailed in the full financial forecast, the following table demonstrates a summary of the economic impact of the 12 Field Model. For the purposes of this study, economic impact is defined as new direct spending by visitors coming to Columbia County, FL from more than 90 minutes away to participate in tournaments and events held at the Complex. SFA’s economic impact projections do not include any assumptions for visitors extending their stay beyond the event and do not include any indirect or induced spending projections. Year 1 Year 2 Year 3 Year 4 Year 5 Total Direct Spending $5,294,726 $7,876,316 $9,323,321 $9,569,970 $9,569,970 Total Indirect Spending $0 $0 $0 $0 $0 Total Economic Impact $5,294,726 $7,876,316 $9,323,321 $9,569,970 $9,569,970 DRAFT 4 COLUMBIA COUNTY MULTI-PURPOSE FIELD COMPLEX FEASIBILITY REPORT Summary of Financial Performance (Years 1-5) – 8 Field Model The following table is a summary of the forecasted revenues, cost of goods sold, operating expenses, new tax revenue, and net financial impact for the 8 Field Model through the first five years of operation. The details of the complex’s financial performance breakdown have been provided in the full financial forecast documents. Year 1 Year 2 Year 3 Year 4 Year 5 Total Revenue $370,342 $443,752 $471,130 $495,275 $514,867 Total Cost of Goods Sold $141,210 $171,538 $176,791 $184,749 $188,985 Gross Margin $229,132 $272,213 $294,338 $310,527 $325,883 Total Operating Expenses $401,682 $413,141 $420,554 $428,511 $435,446 EBITDA ($172,550) ($140,928) ($126,215) ($117,985) ($109,563) New Tax Revenue - County $84,313 $105,391 $105,391 $109,974 $109,974 Net Financial Impact ($88,237) ($35,537) ($20,824) ($8,011) $410 Summary of Economic Impact (Years 1-5) – 8 Field Model As detailed in the full financial forecast, the following table demonstrates a summary of the economic impact of the 8 Field Model. Year 1 Year 2 Year 3 Year 4 Year 5 Total Direct Spending $4,538,336 $5,672,920 $5,672,920 $5,919,569 $5,919,569 Total Indirect Spending $0 $0 $0 $0 $0 Total Economic Impact $4,538,336 $5,672,920 $5,672,920 $5,919,569 $5,919,569 Determination of Feasibility As outlined by the Project Team, the Columbia County Multi-Purpose Field Complex must be capable of achieving three definitions of success in order to be considered a feasible project.
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