THE MARKET FOR THE CENTER Exhibit 3. Household Income, Primary Market Area and Oregon, 2013 Columbia River Gorge region is for the outdoors, visitor populations. This section provides more Resident and Visitor Spending Forecast closely followed by touring. Top “activities and detail on how ECONorthwest used the primary The primary data source for the resident experiences” include visiting a state park; market area demographics and other industry spending forecast is the Consumer Expenditure hiking and backpacking; swimming and other data to forecast resident and visitor spending on Survey, administered by the Bureau of Labor water sports; camping; shopping; visiting a performing arts. Statistics. It provides household expenditures on landmark or historic site; fine dining; and visiting Methods and Data fees and admissions at the state level. breweries, museums, and wineries.4 Statistics on theater spending are sparse. No Household expenditures on fees and On an average day, Hood River County hosts organization surveys Oregonians about theater admissions vary by household income. Based 2,900 day-trip and overnight visitors, equal to spending. It must be estimated from data on the distribution of household incomes in about 12.5% of the resident population.5 The available in three sources: Oregon, ECONorthwest estimates that Oregon largest share (37%) of overnight marketable Households pay $885 million in fees and 1. The United States Bureau of Labor Statistics visitors to the Mt. Hood/Columbia River Gorge admissions per year. region are from other areas of Oregon. Nineteen (BLS) produces a consumer survey. It is percent come from Washington, and 10% come national data and includes all forms of Fees and admissions is a broad category; it from California. Thirty-six percent of overnight paid fees and admissions—so it is not just includes expenditures like movie tickets, country visitors come from the Portland-designated purchases of theater tickets. The BLS reports clubs, sports, Disneyland tickets, etc. The market area.6 this data by household income, which is Bureau of Economic Analysis estimates that useful for this analysis. 17% of fees and admissions expenditures are The majority (64%) of marketable overnight for live entertainment. visits to the Mt. Hood/Columbia Gorge region 2. The United States Bureau of Economic occur between April and September. The Analysis (BEA) reports entertainment Therefore, ECONorthwest estimates that remaining 36% of visits occur during what would spending by United States residents in Oregon households spend $153 million in live be the Center’s peak season (October through greater detail than the BLS, allowing us to entertainment each year, about $49 per adult. March). Visitors to the region stay 4.3 nights, estimate the portion of fee and admission This is higher than the national average of on average.7 spending done for live theater entertainment. $41.54 per adult. However, the Oregon estimate Like the BLS, the BEA measures spending includes spending out of state. DEMAND ASSESSMENT by United States households. Therefore, ECONorthwest must isolate the The viability of the Center depends first and 3. The U.S. Census reports total receipts of in-state from out-of-state spending. The foremost on the demand for performing arts Oregon theaters. Economic Census indicates that Oregon live theaters made $67 million in 2012—the last among residents in and visitors to the primary ECONorthwest uses all three sources to year for which data are available. If one were market. Demand, measured in terms of dollars estimate spending in Oregon. Greater detail to falsely assume no non-residents spent spent on performing arts events, is a function of on specific calculations is provided in any money at any Oregon theater, one would the size and characteristics of the resident and subsequent sections. 4 Longwoods International, Regional Visitor Report, Mt. Hood-Columbia River Gorge Region, 2015. 5 Calculated based on estimates from STR, Dean Runyan, and Longwoods International. 6 Longwoods International, Regional Visitor Report, Mt. Hood-Columbia River Gorge Region, 2015. 7 Longwoods International, Regional Visitor Report, Mt. Hood-Columbia River Gorge Region, 2015. PERFORMING ARTS CENTER BUSINESS CONCEPT | 5 THE MARKET FOR THE CENTER conclude that 44% of Oregonian purchases of theater entertainment went in-state and 56% went out of state. This, of course, is unrealistic. To get a better estimate, ECONorthwest assumes 20% of theater revenues in Oregon come from non-residents. If one assumes that, one would then have to conclude that Oregonians spent $54 million at Oregon theaters in 2012. Therefore, of the $153 million spent by Oregonians on live theater, $99 million was spent out of state (65%). There were approximately 3.1 million Oregon residents age 18 and above. Thus, the per capita adult spending was $17.20. Exhibit 6 shows this calculation. Using this assumption, ECONorthwest estimates Exhibit 6. Oregonian Expenditures and Live Theater Receipts, 2012 that the 78,716 adults living in the primary market area—including both Oregon and Oregon Adult Population 3,109,968 Washington residents—spent approximately Oregonian Expenditures Fees and Admissions $ 884,616,530 $1.36 million dollars in Oregon on live theater % Live Entertainment Expenditures 17% entertainment in 2012. Expenditures on Live Entertainment $ 153,234,985 Residents will spend a portion of this $1.36 Expenditures on Live Entertainment - Per Adult $ 49 Oregon Live Theater Receipts $ 66,881,000.00 million at theaters in other parts of Oregon, like Assumption: Live theater receipts from non-Oregon-residents 20% Portland and Ashland. ECONorthwest does Live Theater Receipts from Oregonians $ 53,504,800.00 not parse out spending in the market area from Live Theater Receipts from Oregonians - Per Adult $ 17.20 spending in other parts of Oregon. Source: Bureau of Labor Statistics, Bureau of Economic Analysis, United States Economic Census Visitors to the market area will also spend money at the Center. These revenues are not captured visitors in the primary market area. This is the Methods and Data in the $1.36 million. Since the data to estimate total market potential for the Center. ECONorthwest worked with PAI to identify visitor spending at the Center are not available, comparable facilities in the market area. ECONorthwest assumes that visitor spending at SUPPLY ASSESSMENT ECONorthwest conducted internet research and the Center will cancel out the loss from resident There are 17 performing arts and event venues reviewed Form 990 tax returns, when available, spending outside the market area. in the market area. This section describes those to gather information on those facilities.8 In total, Oregon venues get $1.36 million in live venues and then summarizes trends in the entertainment spending from residents and supply assessment. 8 Form 990 Tax Returns are required for all nonprofits. 6 | ECONorthwest THE MARKET FOR THE CENTER Local Venues amenities include lighting, a sound booth, gallery, café, and theater. The 140-seat The region has 11 performing arts venues and and green room. theater is generally used for educational six event venues. The Dalles Civic Auditorium, The Dalles, talks, meetings, and debates. The River ▪ Gallery, sometimes known as “the great Hood River Middle School Auditorium, Hood OR: The Civic Auditorium was built in 1917, ▪ but has been used as a community center room,” is used for events, but is not suitable River, OR. With 1,200 seats, this space is for most performing arts. the largest venue for performing arts in the since 1991. It is operated by a nonprofit. area and is connected to the middle school. The theater has not been restored. The Civic ▪ Rockford Grange, Hood River, OR. As Originally built in 1927, it features a large Auditorium has three spaces for events: the a branch of a national organization, the stage and balcony. The theater is primarily ballroom (400 people), community room (200 Rockford Grange supports agriculture in used for music performances, theater and people) and fireside room (smaller events). Hood River, but other events are also held dance productions, lectures, and other ▪ Columbia Gorge Discovery Center and at the Grange. Past events have included a school and community events. There are Museum, The Dalles, OR. The Discovery film festival, lecture series, meetings, dances, no wing or loft spaces, and classrooms Center includes a boardroom, classroom, and fundraisers. substitute as green rooms. ▪ Wy’East Performing Arts Center, Odell, OR. This 276-seat performing arts center is used by the community and for school events.9 The space connects to a music classroom, used as a green room. The space is primarily used for music performances, lectures, meetings, and other school events.10 ▪ The Bowe Theater, Hood River, OR. This 400-seat auditorium is located in Hood River Valley High School. Amenities include dressing rooms and lighting and sound equipment. The space is used for theater and dance productions, music performances, and other school and community events. ▪ Columbia Center for the Arts, Hood River, OR: This 160-seat theater is in downtown Hood River and hosts various local and regional theater and dance performances, films, lectures, and presentations. The theater is home to CAST theater troupe and its 9 http://www.opsisarch.com/wp-content/uploads/Case-Study_Hood-River_WyEast.pdf. 10 https://www.columbiaarts.org/theatre/. PERFORMING ARTS CENTER BUSINESS CONCEPT | 7 THE MARKET FOR THE CENTER ▪ Goldendale Amphitheater at Maryhill Winery, ▪ Fort Dalles Readiness Center, The Dalles, Adult residents in the market area spend Goldendale, WA. This amphitheater hosts OR. This venue was built for the National $1.4 million on live theater in Oregon.11 Some higher profile performers during the summer Guard in 2014. A small amount of space is residents will spend their portion outside of the months. Previous performers have included available to the public. There is no suitable market area. But, if there is a performing arts John Legend, Counting Crows, and Willie theater space, but it can be used for events.