ENTERTAINMENT FACILITY STUDY. August 14, 2018 City Council Briefing David Stone, Stone Planning
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1 ENTERTAINMENT FACILITY STUDY August 14, 2018 City Cuncil Briefing David Stne, Stne Planning
2 LIVE MUSIC/ ENTERTAINMENT INDUSTRY TRENDS 2
3 LIVE MUSIC/ ENTERTAINMENT INDUSTRY TRENDS THE TOURING EVENTS INDUSTRY The live entertainment industry is thriving music, sprts, cmedy, speakers, and ther frms f entertainment Fr music in particular, technlgy has increased the imprtance f live perfrmances t artists: Lss f revenue frm physical sales Number f cncerts has increased dramatically Increasing ticket prices and ticket sales Tp 200 turs: 36% average 5,000 r fewer attendees 18% average 5,000 t 7,500 attendees Cnslidatin f prmters: Live Natin sells 40%+ f wrldwide tickets AEG 12%, all thers 46% 3
4 LIVE MUSIC/ ENTERTAINMENT INDUSTRY TRENDS COMPARABLE FACILITIES The indr/utdr mdel is becming mre ppular, particularly within brader mixed-use/entertainment develpments Facilities analyzed: Clumbus, OH Clumbus Arena District Pittsburgh, PA Nrth Shre Irving, TX Tyta Music Factry 5,200 utdr / 2,200 indr Adjacent venues: 300 and 400 seats Perfrmance: Indr/Outdr: ~85 events, 2,100 avg. atten, $33 avg. ticket price The Basement: 85 events, 200 avg. atten., $14 avg. ticket price A&R Music Lunge: 67 events, 290 avg. atten., $16 avg. ticket price 5,000 utdr / 2,300 indr Other indr capacities: 400, 450, and 1,500 Perfrmance: Indr/Outdr: 100 events (70 indr/30 utdr), 1,800 avg. atten, $33 avg. ticket price The Club: ~15 events, 270 avg. atten., $18 avg. ticket price 55 private events 8,000 utdr / 2,500 and 4,000 indr Perfrmance: First 8 Mnths: 59 events, 3,400 avg. atten, $55 avg. ticket price 4
5 FEASIBILITY AND ECONOMIC IMPACT STUDY SUMMARY 5
6 FEASIBILITY AND ECONOMIC IMPACT STUDY SUMMARY THE LOCAL MARKET Virginia Beach has 450,000+ residents, and the Designated Market Area has 1.5 millin residents The area is a majr turist market 19 millin persn trips in 2017 Characteristics f the DMA market cmpared t the US: Demgraphics: Yung lwer average age Affluent higher husehld incme Educated higher percent f pst-high schl educatins Emplyed higher percent f full-time emplyees Activities: Mre likely t attend cncerts (rck, cuntry, and hiphp/rap) Mre likely t attend cmedy clubs 6
7 FEASIBILITY AND ECONOMIC IMPACT STUDY SUMMARY THE LOCAL/REGIONAL ENTERTAINMENT MARKET Multiple indr and utdr facilities hst ticketed and free events in the area Indr facilities: The need fr a 2,500-t-3,500-seat venue at the beachfrnt was identified in 2002 Outdr facilities: A new facility wuld cmpete smewhat with the Chrysler Hall and The NrVa, and t a lesser extent, the Sandler Center A new facility wuld cmpete smewhat with Unin Bank & Trust Pavilin, and t a lesser extent, Veterans United Hme Lans Amphitheater Free prgramming: there is a significant amunt f free event fferings in the market, but the new venue is expected t cmplement current fferings and wrk with the City t prvide mre 7
8 FEASIBILITY AND ECONOMIC IMPACT STUDY SUMMARY CONCLUSIONS AND RECOMMENDATIONS Virginia Beach/Hamptn Rads is a strng and attractive market Demand fr live entertainment is increasing The Event Center is sized t attract mre than half f turing events There has lng been an identified need fr a new indr entertainment venue at the beachfrnt Cmpetitin with existing venues (particularly within Virginia Beach) will be minimal Market feasibility fr 3,200-seat indr venue and 5,000-seat utdr venue Flexibility with capacities and cnfiguratins OVG s invlvement Ruting fr turing events Open bking plicy Built-in sund and light Ability t hst free and ticketed events utdrs 8
9 FEASIBILITY AND ECONOMIC IMPACT STUDY SUMMARY OPERATING AND ECONOMIC IMPACT FORECASTS PROJECTED EVENTS AND ATTENDANCE # f Events Avg. Atten. Ttal Atten. Cncerts - Indr Reserved 30 2,167 65,000 Cncerts - Indr GA 40 2, ,750 Cncerts - Outdr 20 3,600 72,000 Cncerts - Minr ,000 Other Ticketed Sprts/Entertainment 5 2,250 11,250 Cmmunity Events 32 1,500 48,000 Private/Scial Events ,500 Festivals 3 3,000 9,000 Surf Park Events ,500 TOTAL ,000 Surce: Stne Planning SUMMARY PRO FORMA ($000S) Operating Revenues Event Revenues $8,496 Nn-Event Revenues 743 Ttal Operating Revenues $9,239 Operating Expenses Event Expenses $6,641 Nn-Event Expenses 1,497 Ttal Operating Expenses $8,138 Net Operating Incme (Lss) $1,101 Surce: Stne Planning SUMMARY OF ECONOMIC/FISCAL IMPACTS FROM OPERATIONS ($000s) Operatins (Annual) Ttal Spending - Direct and Indirect $18,249 Ttal Jbs (Full-Time Equivalent) 105 Ttal Earnings $4,398 Rm Nights 20,970 New Tax Revenues t the City $232 Cnstructin (One-Time) Labr Expenditures $18,255 Sales f Materials $7,947 Emplyment 314 New Tax Revenues t the City $201 Surce: Stne Planning 9
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