Feasibility Study of a Potential New Conference & Community Center in Palmer, Alaska

Transcription

1 Feasibility Study of a Potential New Conference & Community Center in Palmer, Alaska January 6, 2010 Page 1

2 Presentation Outline I. Introduction/Background 3 II. Local Market Conditions 5 A. Location & Transportation 5 B. Demographics 10 C. Lodging 16 D. Local Facilities 20 E. Visitation 22 III. Competitive & Comparable Facilities 26 A. Competitive Meeting Facilities 26 B. Comparable Event Venues 31 IV. Industry Characteristics & Trends 59 A. Events & Facilities 59 B. Macro Issues 63 C. Industry Trend Conclusions 67 V. Market Demand Analysis 68 A. Non-local Event Survey 69 B. Market Demand Conclusions 79 VI. Development Options & Program Issues 81 VII. Site/Location Issues 85 VIII. Estimated Utilization 88 IX. Costs & Benefits Analysis 89 X. Funding Alternatives Analysis 94 Page 2

3 I. INTRODUCTION / BACKGROUND Study Outline PHASE ONE PHASE TWO Local interviews Local market conditions Competitive/comparable facilities Industry trends Market surveys Market conclusions Supportable program Draft presentation Event and use levels Preliminary construction costs Site/location analysis Financial operations Economic impacts Funding alternatives Presentation Written Report Page 3

4 I. INTRODUCTION / BACKGROUND The Question of Feasibility Typical measurements used to determine project feasibility: Market Financial Economic spending Tax generation Costs/benefits/return on investment Intangible benefits/public good Page 4

5 II. LOCAL MARKET CONDITIONS Location & Transportation Roadways/Nearby Cities Matanuska Susitna Borough Palmer, AK Source: Microsoft MapPoint. Page 5

6 II. LOCAL MARKET CONDITIONS Location & Transportation Mat-Su Valley Area DENALI COUNTRY Talkeetna Trapper Creek/Petersville Denali State Park Mount McKinley LAKE COUNT RY Wasilla Big Lake Houston Willow GOLD RUSH COUNTRY Independence Mine State Park Hatcher Pass Rec. GLACIER COUNTRY Palmer Sutton Lake Louise Glenn Highway OFF THE BEAT EN PATH Source: Mat-Su CVB. Page 6

7 II. LOCAL MARKET CONDITIONS Location & Transportation Driving Times/Distances Driving Distance To/From Palmer Distance Distance Destination Drive Time in Miles Butte, AK 13 min 7 Wasilla, AK 16 min 13 Chickaloon, AK 51 min 32 Willow, AK 55 min 41 Anchorage, AK min 43 Talkeetna, AK 2 hrs 14 min 84 Soldotna, AK 4 hrs 24 min 188 Kenai, AK 4 hrs 45 min 199 Valdez, AK 6 hrs 25 min 257 Homer, AK 6 hrs 17 min 263 Fairbanks, AK 8 hrs 5 min 329 Source: Google Maps. Page 7

8 II. LOCAL MARKET CONDITIONS Location & Transportation Ted Stevens International Airport Enplanements 3,000,000 Yearly Passenger Boardings 2,599,313 2,617,964 2,500,000 2,367,390 2,430,081 2,439,969 2,246,683 2,388,563 2,419,261 2,000,000 1,500,000 1,000, , Year US Airport Rank: Source: FAA, Page 8

9 II. LOCAL MARKET CONDITIONS Location & Transportation Geographic Rings Palmer, AK 25-Miles 100-Miles 200-Miles Source: Microsoft MapPoint. Page 9

10 II. LOCAL MARKET CONDITIONS Demographics Palmer Area Summary Palmer Mat-Su 25-Mile 100-Mile 200-Mile State of Demographic Variable City Borough Ring Ring Ring Alaska U.S. Population (1990) 2,896 39,683 33, , , , ,709,873 Population (2000) 4,533 59,322 47, , , , ,421,906 Population (2009 est.) 7,557 86,054 68, , , , ,624,699 % Change ( ) 160.9% 116.9% 102.5% 39.4% 37.1% 26.3% 23.3% Population (2014 est.) 9, ,896 79, , , , ,320,436 % Change ( ) 21.0% 17.2% 16.9% 8.0% 7.4% 5.6% 5.1% Avg. Household Inc. (1990) $36,121 $46,221 $50,445 $52,207 $51,900 $49,586 $38,453 Avg. Household Inc. (2000) $50,270 $59,782 $64,552 $66,383 $64,698 $62,475 $56,644 Avg. Household Inc. (2009 est.) $59,500 $77,696 $83,656 $84,050 $82,076 $80,133 $69,376 % Change ( ) 64.7% 68.1% 65.8% 61.0% 58.1% 61.6% 80.4% Avg. Household Inc. (2014 est.) $70,268 $87,388 $93,854 $93,816 $91,703 $89,896 $76,521 % Change ( ) 18.1% 12.5% 12.2% 11.6% 11.7% 12.2% 10.3% Median Age (2009, in years) Source: Claritas, 2009; US Census Bureau. Page 10

11 II. LOCAL MARKET CONDITIONS Demographics Palmer Area Population by Age Palmer Mat-Su 25-Mile 100-Mile 200-Mile State of Demographic Variable City Borough Ring Ring Ring Alaska Population by Age Younger than 10 1,289 12,039 9,886 55,167 62, , ,196 12,442 10,247 54,525 63, , ,319 13,648 10,897 59,201 68, , ,168 11,523 9,238 53,940 61,160 95, ,930 10,144 57,270 66, , ,962 10,088 54,364 65, , ,372 4,824 28,059 33,973 52, ,916 2,141 11,915 14,554 21, and Older 228 1, ,646 6,871 10,692 Total Population 7,557 86,054 68, , , ,441 Population by Age Younger than % 14.0% 14.5% 14.5% 14.2% 14.4% % 14.5% 15.0% 14.3% 14.3% 14.7% % 15.9% 15.9% 15.6% 15.4% 15.7% % 13.4% 13.5% 14.2% 13.8% 13.7% % 15.0% 14.8% 15.1% 15.0% 14.9% % 15.1% 14.7% 14.3% 14.7% 14.4% % 7.4% 7.1% 7.4% 7.7% 7.5% % 3.4% 3.1% 3.1% 3.3% 3.2% 80 and Older 3.0% 1.4% 1.4% 1.5% 1.6% 1.5% Source: Claritas, 2009; US Census Bureau. Page 11

12 II. LOCAL MARKET CONDITIONS Demographics Population Density by Zip Code Population by Census Tract Source: Microsoft MapPoint. Page 12

13 II. LOCAL MARKET CONDITIONS Demographics Median Age Density by Census Tract Median Age by Census Tract Source: Claritas, 2009; US Census Bureau. Page 13

14 II. LOCAL MARKET CONDITIONS Demographics Avg HH Income Density by Census Tract Avg. HH Income by Census Tract Source: Claritas, 2009; US Census Bureau. Page 14

15 II. LOCAL MARKET CONDITIONS Demographics Mat-Su Largest Employers Average Rank Firm Name Employment 1 Mat Su Borough Schools 1,814 2 State Government Mat-Su Regional Medical Center Wal-Mart Fred Meyer Matanuska Susitna Borough Matanuska Telephone Association Carrs/Safeway First Student Federal Government Spenard Builders Supply Laidlaw Transit Services Mat Su Services For Children & Adults University Of Alaska Lowe's Alaska Hotel Properties (Princess Hotels) Advanced Concepts In Education Wasilla City Of Mcdonald's Home Depot Nye Frontier Ford Matanuska Electric Association Matanuska Telephone Association (MTA) Alaska Home Care Job Ready When two or more employers had the same number of employees, they were ranked by unrounded employment. Source: Alaska Department of Labor & Workforce Division, Research & Analysis Division Page 15

16 II. LOCAL MARKET CONDITIONS Lodging Mat-Su Valley Area DENALI COUNTRY Talkeetna Trapper Creek/Petersville Denali State Park Mount McKinley LAKE COUNT RY Wasilla Big Lake Houston Willow GOLD RUSH COUNTRY Independence Mine State Park Hatcher Pass Rec. GLACIER COUNTRY Palmer Sutton Lake Louise Glenn Highway OFF THE BEAT EN PATH Source: Mat-Su CVB. Page 16

17 II. LOCAL MARKET CONDITIONS Lodging Mat-Su Lodging Properties Hotel Area Rooms Mt. McKinley Princess Wilderness Lodge Denali Country 460 Talkeetna Alaskan Lodge Denali Country 212 Grand View Inn & Suites Lake Country 79 Best Western Lake Lucille Inn Lake Country 54 Valley Hotel Glacier Country 43 Alaska Choice Inn Glacier Country 30 Gold Miner's Hotel Glacier Country 28 Kashwitna Ridge Lodging Denali Country 28 Pioneer Motel & Apartments Glacier Country 28 Talkeetna Hideaway Denali Country 24 Swiss Alaska Inn Denali Country 20 The Point Lodge LLC Glacier Country 17 Mary's McKinley View Lodge Denali Country 16 Alaska's Select Inn Motel Lake Country 15 Sheep Mountain Lodge Glacier Country 14 Agate Inn Lake Country 13 Colony Inn Glacier Country 12 Hatchers Pass Lodge Gold Rush Country 12 Latitude 62 LLC Denali Country 12 Maclaren Enterprises, Inc. Off the Beaten Path 12 Mat-Su Resort Lake Country 12 Motherlode Lodge Gold Rush Country 12 Lake Louise Lodge Glacier Country 11 Sunset View B&B/Resort Lake Country 11 Eureka Lodge Glacier Country 10 King Mountain Lodge Glacier Country 10 Majestic Valley Wilderness Lodge Glacier Country 10 Note: Lodging Properties with more than 10 sleeping rooms. Source: Mat-Su CVB Page 17

18 II. LOCAL MARKET CONDITIONS Lodging Primary Glacier Country Lodging Properties Hotel City Rooms Valley Hotel Palmer 43 Alaska Choice Inn Palmer 30 Gold Miner's Hotel Palmer 28 Pioneer Motel & Apartments Palmer 28 The Point Lodge LLC Glennallen 17 Sheep Mountain Lodge Palmer 14 Colony Inn Palmer 12 Lake Louise Lodge Glennallen 11 Eureka Lodge Glennallen 10 King Mountain Lodge Chickaloon 10 Majestic Valley Wilderness Lodge Sutton 10 Note: Lodging Properties with more than 10 sleeping rooms. Source: Mat-Su CVB Page 18

19 II. LOCAL MARKET CONDITIONS Lodging Primary Palmer Lodging Properties Sheep Mtn. Lodge (14 Rms) Pioneer Motel (28 Rms) Valley Hotel (43Rms) Gold Miner s Hotel (28Rms) Colony Inn (12 Rms) Alaska s Choice Inn (30 Rms) Note: Lodging Properties with more than 10 sleeping rooms. Source: Mat-Su CVB Page 19

20 II. LOCAL MARKET CONDITIONS Local Facilities Mat-Su Meeting Facilities Number of Meeting Rooms Largest Event Space ( in Sq. Ft.) Largest Event Space Capacity (Banquet) Total Event Space (in Sq. Ft.) Facility Location Alaska State Fairgrounds Palmer 1 20,000 1,333 n/a Wasilla Multi-Use Sports Complex Wasilla 3 40,000 2,667 43,000 Settler's Bay Lodge Wasilla 4 3, ,200 Motherlode Lodge Hatcher Pass 2 3, ,900 Museum of Alaska Transportation & Industry Wasilla 1 4, ,250 Talkeetna Alaskan Lodge Talkeetna 4 1, ,100 Evangelo's Restaurant Wasilla 1 4, ,500 Best Western Lake Lucille Inn Wasilla 3 3, ,200 Willow Area Community Center Willow 1 3, ,900 Meier Lake Conference Center Wasilla 2 1, ,100 Palmer Depot Palmer 1 3, ,000 Majestic Valley Wilderness Lodge Glenn Highway 1 2, ,500 Mat-Su Resort Wasilla 2 1, ,250 Grand View Inn & Suites Wasilla 2 1, ,100 Agate Inn Wasilla 1 1, ,800 Homestead RV Park Palmer 1 1, ,500 Denali Overlook Inn Talkeetna ,300 Executive Conference Room Wasilla 1 1, ,200 Sunset View B&B/Resort Big Lake 1 1, ,100 Fireweed Station Inn Talkeetna ,025 Gate Creek Cabins Trapper Creek The Point Lodge Lake Louise Within the Wild Lodges Lake Clark/Winter Lake Hatcher Pass Lodge Hatcher Pass Riversong Lodge Yenta Sheep Mountain Lodge Glenn Highway Source: Mat-Su CVB Page 20

21 II. LOCAL MARKET CONDITIONS Local Facilities Palmer Lodging & Event Facilities Sheep Mtn. Lodge (14 Rms / 300 sqft) Pioneer Motel (28 Rms) Valley Hotel - (43Rms) Palmer Depot / Comm. Ctr. - (3,000 sqft) Gold Miner s Hotel (28 Rms) Colony Inn - (12 Rms) Alaska s Choice Inn (30 Rms) Alaska State Fairgrounds Homestead RV Park (1,500 sqft) Source: Mat-Su CVB Page 21

22 II. LOCAL MARKET CONDITIONS Visitation Mat-Su Attractions Wildlife & Parks (Lake Louise, Denali State Park, Independence Mine State Historical Park, Hatcher Pass, Nancy Lake State Recreation Area, Palmer Hay Flats) Annual Events (Iron Dog Snowmachine Race, Iditarod Sled Dog Race, Talkeetna Winterfest, Colony Christmas in Palmer) Alaska State Fairgrounds Museums (Talkeetna Historical Society Museum, Palmer Museum of History & Art, Dorothy Page Museum, Fort Green Museum, Museum of Transportation & Industry) North Star Speedway Windy Valley Musk Ox Sports & Recreation (Fishing, biking, hiking, skiing, boating, camping) Page 22

23 II. LOCAL MARKET CONDITIONS Visitation Alaska Visitor Statistics Program FALL/WINTER SUMMER 2006 Source: State of Alaska Department of Commerce, Community & Economic Development; McDowell Group. Page 23

24 II. LOCAL MARKET CONDITIONS Visitation Alaska Visitor Statistics Program FALL/WINTER SUMMER 2006 REGION/COMMUNITY NO. OF VISITORS Southcentral 190,000 Anchorage 181,000 Palmer/Wasilla 36,000 Kenai Peninsula 35,000 Seward 19,000 Kenai/Soldotna 19,000 Homer 9,000 Girdwood/Alyeska 27,000 Portage 12,000 Whittier 6,000 Talkeetna 5,000 Interior 69,000 Fairbanks 56,000 Denali 9,000 Southeast 30,000 Juneau 16,000 Ketchikan 10,000 Sitka 5,000 Southwest 16,000 Kodiak 6,000 Far North 11,000 REGION/COMMUNITY NO. OF VISITORS Southeast 1,160,000 Juneau 1,034,000 Ketchikan 871,000 Sitka 286,000 Southcentral 907,000 Anchorage 814,000 Kenai Peninsula 439,000 Seward 341,000 Kenai/Soldotna 173,000 Homer 153,000 Whittier 232,000 Talkeetna 207,000 Palmer/Wasilla 139,000 Girdwood/Alyeska 135,000 Portage 98,000 Interior 534,000 Denali 450,000 Fairbanks 385,000 Southwest 54,000 Kodiak 20,000 Far North 49,000 Source: State of Alaska Department of Commerce, Community & Economic Development; McDowell Group. Page 24

25 II. LOCAL MARKET CONDITIONS Local Market Strengths & Weaknesses STRENGTHS Proximity to largest metropolitan area in the state. Population of more than 300,000 within 50 miles. Strong population growth trends. Seasonal visitation to regional area. Outdoor recreational/sightseeing/leisure opportunities. Palmer s distinct destination brand and history. Lack of an upscale conference/community center facility. WEAKNESSES Significant limitations in local hotel inventory Limitations in destination appeal and visitor amenities (i.e., restaurants, nightlife, retail w/character, attractions, entertainment, etc.). Excluding Anchorage metro, low local market population. Small corporate base. Lack of major airport directly servicing community. Large number of resorts (cruise and non-cruise) in state servicing rotating event demand. Page 25

26 III. COMPETITIVE & COMPARABLE FACILITIES Alaska Event Venues All Alaska Meeting Facilities Facility City Type Year Estab. Sleeping Rooms Meeting Rooms UAA Conference Services Anchorage Conference Center Egan Civic & Convention Center Anchorage Convention Center Hilton Anchorage Anchorage Hotel Hotel Captain Cook Anchorage Hotel Sheraton Anchorage Hotel Anchorage Hotel Dena'ina Civic & Convention Center Anchorage Convention Center Westmark Fairbanks Hotel & Con. Center Fairbanks Hotel Alyeska Resort Girdwood Hotel Anchorage Marriott Downtown Anchorage Hotel Harrigan Centennial Hall Sitka Convention Center Centennial Hall Convention Center Juneau Convention Center Millennium Alaskan Hotel Anchorage Anchorage Hotel Westmark Baranof Hotel Juneau Hotel Alaska SeaLife Center Seward Cultural/Museum Chena Hot Springs Resort Fairbanks Resort Embassy Suites Anchorage Hotel Howard Johnson Plaza Hotel Anchorage Hotel Valdez Convention & Civic Center Valdez Civic/Convention Center Carlson Center Fairbanks Arena/Convention Center Fairbanks Princess Riverside Lodge Fairbanks Hotel Kenai Landing Kenai Hotel Pike's Waterfront Lodge Fairbanks Hotel Westmark Anchorage Hotel Anchorage Hotel Source: Alaska Business Monthly, Page 26

27 III. COMPETITIVE & COMPARABLE FACILITIES Alaska Event Venues All Alaska Meeting Facilities Facility City Type Year Estab. Sleeping Rooms Meeting Rooms Alaska State Fair Palmer Fairgrounds Anchorage Museum at Rasmuson Center Anchorage Cultural/Museum Best Westen Kodiak Inn Kodiak Hotel Best Western Landing Ketchikan Hotel Nolan Center Wrangell Civic/Cultural Center n/a Tanana Valley State Fair Association Fairbanks Other The Coast International Inn Anchorage Hotel Alaska Native Heritage Center Anchorage Cultural/Museum Best Western Golden Lion Anchorage Hotel Best Western Lake Lucille Inn Wasilla Hotel Goldbelt Hotel Juneau Juneau Hotel Grand Aleutian Hotel Dutch Harbor Hotel Hilton Garden Inn Anchorage Hotel Homewood Suites by Hilton Anchorage Hotel Juneau Travelodge Hotel Juneau Hotel O'Malley's on the Green Anchorage Other Salmon Falls Resort Ketchikan Hotel Settlers Bay Lodge, Inc. Wasilla Restaurant Talkeetna Alaskan Lodge Talkeetna Hotel The Cape Fox Lodge Ketchikan Hotel The Chariot Group Anchorage Conference Center Westmark Sitka Sitka Hotel Source: Alaska Business Monthly, Page 27

28 III. COMPETITIVE & COMPARABLE FACILITIES Alaska Event Venues All Alaska Meeting Facilities Facility City Type Year Estab. Sleeping Rooms Meeting Rooms Alaska Aviation Heritage Museum Anchorage Cultural/Museum Anchorage Airport Courtyard by Marriott Anchorage Hotel Anchorage Historic Hotel Anchorage Hotel Bristol Inn Dillingham Hotel n/a 32 2 Dimond Center Hotel Anchorage Hotel Hawthorn Suites Anchorage Hotel n/a Hotel North Pole North Pole Hotel Kenai Convention & Visitors Bureau Kenai Other Kennicott Glacier Lodge Anchorage Hotel Land's End Resort Homer Hotel Mat-Su Resort & Frontier Steakhouse Wasilla Hotel Quality Inn & Suites/Econo Lodge Anchorage Hotel Regency Fairbanks Hotel Fairbanks Hotel Westmark Inn Skagway Skagway Hotel Anchorage Residence Inn by Marriott Anchorage Hotel Aspen Hotels Valdez Hotel Aurora Inn Nome Hotel Clarion Suites Anchorage Hotel Hilltop Ski Area Anchorage Other Hotel Edgewater Seward Hotel Tanglewood Lakes Golf Club Anchorage Golf Club n/a 0 1 The Ramada Anchorage Downtown Anchorage Hotel Valdez Harbor Inn Valdez Hotel Source: Alaska Business Monthly, Page 28

29 III. COMPETITIVE & COMPARABLE FACILITIES Alaska Event Venues All Alaska Meeting Facilities Page 29

30 III. COMPETITIVE & COMPARABLE FACILITIES Alaska Event Venues - Competitive Event Venues Driving Distance to Palmer Exhibit Space (in sq. ft.) Meeting Space (in sq. ft.) Ballroom Space (in sq. ft.) Sellable Space (in sq. ft.) Market Facility Anchorage, AK Sheraton Anchorage Hotel ,350 9,400 15,750 Anchorage, AK Hilton Anchorage ,200 7,700 19,900 Anchorage, AK The Dena'ina Convention Center 37 50,000 10,700 25,300 86,000 Anchorage, AK Egan Center ,750 19,300 34,050 Anchorage, AK Hotel Captain Cook ,500 9,000 18,500 Anchorage, AK Anchorage Marriott Downtown , ,000 Anchorage, AK Sullivan Arena 43 32, ,000 Girdwood, AK Alyeska Prince Hotel ,250 13,400 22,650 Talkeetna, AK Talkeetna Alaskan Lodge , ,100 Soldotna, AK Soldotna Sports Center ,000 4, ,350 Valdez, AK Valdez Civic & Convention Center ,700 6,500 8,200 Fairbanks, AK River's Edge Resort , ,100 Fairbanks, AK Pike's Waterfront Lodge , ,300 Fairbanks, AK Pioneer Park ,800 6,200 12,000 Fairbanks, AK Carlson Center ,000 2,400 6,200 43,600 Fairbanks, AK Wedgewood Resort , ,500 Fairbanks, AK Westmark Hotel ,500 5,400 12,900 Fairbanks, AK Chena Hot Springs Resort ,000 2,100 5,100 Juneau, AK Centennial Hall Center n/a 0 3,000 11,300 14,300 Juneau, AK Westmark Baranof - Juneau n/a 0 5, ,100 Juneau, AK Alaska Native Brotherhood Hall n/a 0 6, ,150 Ketchikan, AK Ted Ferry Center n/a ,300 5,000 Sitka, AK Harrigan Centennial Hall n/a 0 4, ,450 Wrangell, AK Wrangell Convention Center/Nolan Center n/a 0 1,200 4,000 5,200 Page 30

31 III. COMPETITIVE & COMPARABLE FACILITIES Comparable Event Venues Facility Summary Exhibit Space (in SqFt) Meeting Space (in SqFt) Ballroom Space (in SqFt) Sellable Space (in SqFt) City, State Facility Ardmore, OK Ardmore Convention Center 24,300 2, ,400 Detroit Lakes, MN Detroit Lakes Community & Cultural Center 8,300 2,600 6,000 16,900 Grand Junction, CO Two Rivers Convention Center 0 2,100 18,600 20,700 Juneau, AK Centennial Hall 0 3,000 11,300 14,300 Ketchikan, AK Ted Ferry Civic Center ,300 5,000 Layton, UT Davis Conference Center 18,000 12,800 12,600 43,400 Montrose, CO Montrose Pavilion 0 4,300 3,000 7,300 New Albany, IN Paul Ogle Cultural & Community Center (IUS) 0 2, ,000 Norcross, GA Cultural Arts & Community Center 0 6,600 3,000 9,600 Ogden, UT Ogden Eccles Conference Ctr. & Peery Theater 0 9,000 19,600 28,600 Pueblo, CO Pueblo Convention Center 0 7,300 16,200 23,500 Quincy, IL Oakley-Lindsay Civic Center 29,500 1, ,300 Salem, OR Salem Conference Center 0 12,900 11,400 24,300 Sitka, AK Harrigan Centennial Hall 0 4, ,450 Statesville, NC Statesville Civic Center 0 2,400 12,000 14,400 Valdez, AK Valdez Civic & Convention Center 0 1,700 6,500 8,200 Wenatchee, WA Wenatchee Convention Center & Perf. Arts Center 7,600 11,600 10,100 29,300 Wrangell, AK Nolan Center 0 1,300 4,000 5,300 Page 31

32 III. COMPETITIVE & COMPARABLE FACILITIES Comparable Event Venues Exhibit Square Feet Quincy, IL Ardmore, OK Layton, UT Detroit Lakes, MN Wenatchee, WA Wrangell, AK Valdez, AK Statesville, NC Sitka, AK Salem, OR Pueblo, CO Ogden, UT Norcross, GA New Albany, IN Montrose, CO Ketchikan, AK Juneau, AK Grand Junction, CO ,300 7,600 18,000 24,300 Average = 17,540 Median = 18,000 29, ,000 10,000 15,000 20,000 25,000 30,000 35,000 Note: Average and median figures only include facilities incorporating exhibit space. Page 32

33 III. COMPETITIVE & COMPARABLE FACILITIES Comparable Event Venues Ballroom Square Feet Ogden, UT Grand Junction, CO Pueblo, CO Layton, UT Statesville, NC Salem, OR Juneau, AK Wenatchee, WA Valdez, AK Detroit Lakes, MN Ketchikan, AK Wrangell, AK Norcross, GA Montrose, CO Sitka, AK Quincy, IL New Albany, IN Ardmore, OK ,500 6,000 4,300 4,000 3,000 3,000 12,600 12,000 11,400 11,300 10,100 19,600 18,600 16,200 Average = 9,900 Median = 10, ,000 10,000 15,000 20,000 25,000 Note: Average and median figures only include facilities incorporating ballroom space. Page 33

34 III. COMPETITIVE & COMPARABLE FACILITIES Comparable Event Venues Meeting Square Feet Salem, OR Layton, UT Wenatchee, WA Ogden, UT Pueblo, CO Norcross, GA Sitka, AK Montrose, CO Juneau, AK Detroit Lakes, MN Statesville, NC Grand Junction, CO Ardmore, OK New Albany, IN Quincy, IL Valdez, AK Wrangell, AK Ketchikan, AK 4,450 4,300 3,000 2,600 2,400 2,100 2,100 2,000 1,800 1,700 1, ,300 6,600 9,000 Average = 4,900 Median = 2,800 12,900 12,800 11, ,000 4,000 6,000 8,000 10,000 12,000 14,000 Page 34

35 III. COMPETITIVE & COMPARABLE FACILITIES Comparable Event Venues Sellable Square Feet Layton, UT Quincy, IL Wenatchee, WA Ogden, UT Ardmore, OK Salem, OR Pueblo, CO Grand Junction, CO Detroit Lakes, MN Statesville, NC Juneau, AK Norcross, GA Valdez, AK Montrose, CO Wrangell, AK Ketchikan, AK Sitka, AK New Albany, IN 31,300 29,300 28,600 26,400 24,300 23,500 20,700 16,900 14,400 14,300 9,600 8,200 7,300 5,300 5,000 4,450 2,000 Average = 17,500 Median = 15,650 43, ,000 20,000 30,000 40,000 50,000 Page 35

36 III. COMPETITIVE & COMPARABLE FACILITIES Comparable Event Venues Market Population County/ Market City Borough 25-Mile 100-Mile 200-Mile Norcross, GA 10, ,743 3,511,415 8,248,863 19,286,041 New Albany, IN 35,797 73,719 1,070,571 5,477,049 18,407,838 Layton, UT 66, , ,031 2,416,230 3,151,551 Salem, OR 152, , ,983 3,467,974 7,972,880 Ogden, UT 82, , ,852 2,414,084 3,177,879 Statesville, NC 26, , ,000 6,480,926 17,892,562 Pueblo, CO 104, , ,854 2,147,404 5,143,606 Grand Junction, CO 47, , , ,148 3,691,936 Quincy, IL 39,414 66, ,820 2,095,217 11,517,840 Wenatchee, WA 29,219 72,129 92,556 3,632,818 8,843,750 Ardmore, OK 24,677 48,092 75,509 6,055,754 12,459,857 Palmer, AK 7,557 86,054 68, , ,251 Montrose, CO 17,048 41,059 60, ,121 4,799,326 Detroit Lakes, MN 7,668 32,361 49, ,497 5,185,919 Juneau, AK 30,640 30,640 30,647 45,325 51,587 Ketchikan, AK 7,318 13,188 14,557 20,706 33,843 Sitka, AK 8,794 8,794 8,766 45,409 69,117 Valdez, AK 3,877 9,482 3, , ,318 Wrangell, AK 2,025 5,961 2,161 24,537 66,022 Average (excluding Palmer) 38, , ,136 2,459,222 6,788,326 Palmer Rank (out of 19) Note: Sorted by 25-Mile Population Source: Claritas, 2009; US Census Data, Page 36

37 III. COMPETITIVE & COMPARABLE FACILITIES Comparable Event Venues Market Avg. HH Income County/ Market City Borough 25-Mile 100-Mile 200-Mile Juneau, AK $89,124 $89,124 $89,114 $83,758 $82,101 Valdez, AK $84,732 $72,575 $84,182 $90,610 $82,081 Palmer, AK $59,500 $77,696 $83,656 $84,050 $82,076 Norcross, GA $64,250 $77,847 $82,583 $68,956 $61,149 Sitka, AK $79,242 $79,242 $79,401 $83,804 $79,312 Wrangell, AK $75,761 $73,226 $74,826 $70,473 $79,596 Ketchikan, AK $64,864 $75,484 $73,803 $70,203 $72,365 Ogden, UT $52,324 $65,049 $71,587 $72,272 $69,213 Layton, UT $75,578 $79,960 $69,899 $72,260 $69,152 Wenatchee, WA $61,147 $64,760 $64,930 $79,508 $71,695 Grand Junction, CO $62,113 $64,119 $64,038 $67,924 $75,343 New Albany, IN $49,106 $67,865 $62,672 $60,953 $59,549 Statesville, NC $50,271 $64,386 $61,385 $58,699 $56,953 Salem, OR $55,924 $56,790 $58,483 $66,807 $71,004 Detroit Lakes, MN $48,635 $55,014 $55,582 $55,314 $71,174 Montrose, CO $52,533 $54,893 $55,381 $67,198 $73,655 Quincy, IL $49,429 $55,164 $53,175 $61,441 $62,484 Pueblo, CO $46,350 $53,649 $52,987 $77,926 $73,206 Ardmore, OK $50,041 $48,563 $49,295 $73,016 $65,379 Average (excluding Palmer) $61,746 $66,539 $66,851 $71,173 $70,856 Palmer Rank (out of 19) Note: Sorted by 25-Mile Average Household Income Source: Claritas, 2009; US Census Data, Page 37

38 III. COMPETITIVE & COMPARABLE FACILITIES Comparable Event Venues Market Median Age County/ Market City Borough 25-Mile 100-Mile 200-Mile Ogden, UT Layton, UT Palmer, AK Salem, OR Norcross, GA Pueblo, CO Grand Junction, CO Wenatchee, WA Sitka, AK Ardmore, OK Statesville, NC New Albany, IN Montrose, CO Quincy, IL Ketchikan, AK Juneau, AK Valdez, AK Detroit Lakes, MN Wrangell, AK Average (excluding Palmer) Palmer Rank (out of 19) Note: Sorted by 25-Mile Median Age Source: Claritas, 2009; US Census Data, Page 38

39 III. COMPETITIVE & COMPARABLE FACILITIES Comparable Event Venues Market Business Estab. County/ Market City Borough 25-Mile 100-Mile 200-Mile Norcross, GA 1,824 33, , , ,839 New Albany, IN 1,734 2,514 40, , ,367 Layton, UT 2,036 8,294 26,527 83, ,508 Salem, OR 7,149 12,407 19, , ,732 Ogden, UT 3,775 7,276 15,844 82, ,670 Statesville, NC 1,968 6,122 15, , ,773 Grand Junction, CO 4,654 6,784 6,661 23, ,449 Pueblo, CO 4,326 5,783 5,596 84, ,678 Quincy, IL 2,149 2,979 5,010 87, ,986 Wenatchee, WA 1,855 3,765 4, , ,621 Ardmore, OK 1,740 2,475 3, , ,413 Palmer, AK 862 4,377 3,689 22,587 27,479 Montrose, CO 1,522 2,312 3,460 33, ,520 Detroit Lakes, MN 815 1,628 2,749 39, ,000 Juneau, AK 2,300 2,300 2,300 3,737 4,313 Ketchikan, AK 740 1,105 1,188 1,695 2,787 Sitka, AK ,503 5,738 Valdez, AK ,047 27,048 Wrangell, AK ,033 5,199 Average (excluding Palmer) 2,218 5,632 17, , ,369 Palmer Rank (out of 19) Note: Sorted by 25-Mile Number of Business Establishments Source: Claritas, 2009; US Census Data, Page 39

40 III. COMPETITIVE & COMPARABLE FACILITIES Comparable Event Venues Case Studies NOLAN CENTER WRANGELL, ALASKA The James & Elsie Nolan Center opened in Wrangell, Alaska in July The 20,000-square foot complex is home to the 3,000-square foot Wrangell Museum, the Wrangell Visitor Center, 4,000-square foot Civic Center, 24- seat theater and additional meeting space. In total, the facility cost over $9.0 million to construct, which was funded by: $3.2 million from the City of Wrangell, $3.0 million provided by the Nolan Trust, and an additional $1.25 million from the Rasmuson Foundation, $675,000 from the Denali Commission, $629,000 USDA, $250,000 from the MJ Murdock Charitable Trust and $50,000 from public friends or supporters of the facility. Initially, the Civic Center was deemed one of the more successful small conference operations in Alaska, hosting more than 220 events in the first two years of operation, with many non-local events occupying its space. With the recent economic downturn, and increase in travel costs, the facility has been struggling to meet its high expectations to accommodate out of town events. As such, the Center has been focusing on more communitybased events. An example of which would be the newly added riser seating to accommodate first-release movie showings on their large projector screen. In the last year, it is expected that the Center hosted 80 events, 55 of which were events that collected event revenue, and operated at a $310,000 deficit. This operating figure does not include any public sector funds and other donations. Page 40

41 III. COMPETITIVE & COMPARABLE FACILITIES Comparable Event Venues Case Studies TED FERRY CIVIC CENTER KETCHIKAN, ALASKA Constructed in 1994 at a cost of $2.9 million, the Ted Ferry Civic Center has served the Ketchikan community for 15 years. Designed with multipurpose in mind, the Center is situated hillside above the downtown Ketchikan area, offering great views. The hillside location also has positioned the Center to be situated near Ketchikan s historical attractions and shopping. The community of Ketchikan offers 400 guest rooms. The Center is owned and operated by the City of Ketchikan and event space incorporated into the Center includes a 4,300-square foot multipurpose ballroom and 700 square feet of meeting space. Additionally, the Center has a stage adjacent to the ballroom/multipurpose area, fullyequipped kitchen, and A/V and teleconference equipment. In recent years, the Center has operated at a deficit ranging from $220,000 to $300,000. Operational revenues for the Center on average have reached up to $80,000, while the balance required to match expenditures has been covered by general funds money from the City and sales and bed tax revenue. Over the last ten years, the Center has hosted as many as 225 events, however in 2008, the Center hosted 148 events, which accounted for 186 use days for the Center. The Ketchikan CVB has one employee dedicated to convention sales; and estimates that the Center s convention and meeting events have generated slightly greater than $1 million each year in economic impact for the community. Page 41

42 III. COMPETITIVE & COMPARABLE FACILITIES Comparable Event Venues Case Studies HARRIGAN CENTENNIAL HALL SITKA, ALASKA Built in 1967, the Sitka Harrigan Centennial Hall is located on the ocean shoreline and within walking distance to many community restaurants, shopping, attractions and hotels. The facility is a publiclyowned venue that is utilized for social and cultural events. The multipurpose facility incorporates a 4,340-square foot auditorium, which seats 500 in a theater setting, as well as an onsite community visitor information booth, wildlife display, Sitka Historical Society s Isabel Miller Museum and in the summer months, a live-feed from St. Lazaria Island National Wildlife Reserve, which is home to thousands of nesting marine birds. The event space is used for a variety of events, including meetings, conventions, tradeshows, workshops, seminars, concerts, recitals, family shows and festivals. Additionally, the New Archangel Dancers call the Harrigan Centennial Hall home during the summer months, when not touring across the globe in the winter. The facility s largest event is the Sitka Summer Music Festival, which is a three-week celebration held in June since The Hall is owned and operated by the City and Borough of Sitka. In recent years, the Hall has operated at an annual operating deficit ranging from $250,000 to $300,000. Page 42

43 III. COMPETITIVE & COMPARABLE FACILITIES Comparable Event Venues Case Studies VALDEZ CIVIC & CONVENTION CENTER VALDEZ, ALASKA Owned and operated by the City of Valdez, the Convention and Civic Center was dedicated in The Center is situated between the mountains and Prince William Sound, offering great views of the Valdez community. The Center offers 8,200 square feet of event space, including 6,500 square feet of multipurpose ballroom space, 1,700 square feet of meeting space and a 487-seat theater. Other amenities offered at the Center include: green room, lobby, concession area, modern lighting and sound equipment, dressing rooms and Steinway piano. The main ballroom can be subdivided into three separate rooms and the hallway has often been used for additional exhibit space. The Valdez Convention and Civic Center hosts hundreds of events each year, and has welcomed many meetings, banquets, conferences, trade shows and professional modern dance, theater and ballet groups. In a recent year, it was reported that the Center hosted 480 functions, however, the number is misleading as there can be several functions within one event. It is estimated that 90% of the events hosted at the Center are local in nature. According to facility management, the Center operates at an average annual deficit of $250,000. The annual operating budget is approximately $380,000, with payroll expenses comprising the greatest expense (65-70%). Each year the Center s goal is to generate $120,000 in revenues each year from rental fees. The remaining balance is subsidized by the City s general fund. Page 43

44 III. COMPETITIVE & COMPARABLE FACILITIES Comparable Event Venues Case Studies CENTENNIAL HALL JUNEAU, ALASKA Located three blocks from the heart of downtown Juneau, the Centennial Hall Convention Center has been a staple of the downtown landscape of Juneau since its completion in This downtown location has the Center within a short distance of the historic town center, hotels, restaurants, shopping, art galleries, theaters, museums and other entertainment. Further, the proximity of Centennial Hall to the State s office buildings has made it ideal for government-related meetings. The Center offers 14,300 square feet of total event space, including the11,300-square foot Sheffield Ballroom, and 3,000 square feet of meeting space. In addition, the Center has two lobbies that are 4,200 square feet of congregation space and a commercial kitchen for catered events. There are seven hotel properties within a ten minute walk of the Hall, including the 195-room Westmark Baranof Hotel, 61-room Prospector Hotel, and 106-room Goldbelt Hotel. It is estimated that the Center hosts an average of 75 events each year, with 75% of those events are local. Page 44

45 III. COMPETITIVE & COMPARABLE FACILITIES Comparable Event Venues Case Studies ARDMORE CONVENTION CENTER ARDMORE, OKLAHOMA Surrounded by the Arbuckle Mountains, the Ardmore Convention Center is conveniently located off of Interstate 35, between the Dallas and Oklahoma City metropolitan areas. The Center is situated within a short drive from over 900 hotel rooms, restaurants, outdoor recreation, shopping and historic attractions. The Center opened in 2004, at a cost of $8.2 million and is currently owned and operated by the Ardmore Tourism Authority. The Center incorporates a 24,300-square foot exhibit hall and two 1,050-square foot meeting rooms into its 26,400 square feet of total sellable event space, During its first full year of operation, 2005, the Center hosted 141 events, with an estimated 20 events being conferences or conventions. Since then, the Center has on average hosted more than 200 events annually. Page 45

46 III. COMPETITIVE & COMPARABLE FACILITIES Comparable Event Venues Case Studies CULTURAL ARTS & COMMUNITY CENTER NORCROSS, GEORGIA Constructed in 2008 from a $2 million renovation to an old two-story church, the Norcross Cultural Arts & Community Center is located in the heart of Norcross, Georgia. The 30,000-square foot facility offers a ballroom, two meeting rooms, classrooms, computer lab, 75-seat College Street Playhouse, a dance/exercise studio and full kitchen capacity for outside caterers. The theater is home to the Lionheart Theater Company, a community theater group which produces family-oriented plays. Total sellable event space includes nearly 7,000 square feet of meeting space and 3,000 square feet of ballroom space. Typical community events held at the Center include the Valentine s Day Celebration, Norcross Art Fest, Ghost Tours, concerts, yoga and physical education classes, meetings, weddings, youth group and church events, summer camps and corporate meetings. Page 46

47 III. COMPETITIVE & COMPARABLE FACILITIES Comparable Event Venues Case Studies DAVIS CONFERENCE CENTER LAYTON, UTAH Located off of Interstate 15 in Layton, Utah, this state-of-the-art conference center opened in September Just three years following the Center s opening, the County broke ground for an expansion that nearly doubled the Center s size. In May 2008, the Center opened a new 18,000-square foot exhibit hall and an additional 7,000-square foot junior ballroom, which has the ability to open into each other. Following the expansion, the facility offers 18,000 square feet of exhibit space, 12,600 square feet of ballroom space and 12,800 square feet of meeting space. The Davis Center is attached to the Hilton Garden Inn which offers 145 sleeping rooms, and additional outdoor event space, including the Solstice Courtyard and Cirrus Atrium. The Conference Center is owned by Davis County, but operated by Western States Lodging, which also owns and operates the attached Hilton Garden Inn. A public/private partnership was established to make the Conference Center and hotel a reality. Since its opening, the Davis Conference Center has hosted an estimated 700 events on average, with the vast majority consisting of small, local meetings, banquets, receptions and conferences. Page 47

48 III. COMPETITIVE & COMPARABLE FACILITIES Comparable Event Venues Case Studies DETROIT LAKES COMMUNITY & CULTURAL CENTER DETROIT LAKES, MINNESOTA The Detroit Lakes Community & Cultural Center opened in 2001 and is a 501(c)(3) non-profit entity. Detroit Lakes is located 45 minutes east of Fargo, ND and four hours northwest of the Twin Cities, MN area. The Center was developed as a result of over 20 years of planning, redevelopment of an abandoned school building, renovation of the downtown historic theater, and new construction to tie the 105,000-square foot facility & vision together. Today, the Center currently houses a fitness and aquatic center, senior citizens center, an alternative learning center, meeting space, multipurpose fieldhouse, multiple daycare facilities and the renovated 837-seat Historic Holmes Theatre and Event Center. Total project costs reached $9.5 million, and was helped by a $1.5 million construction loan from the City of Detroit Lakes and $4 million in community support. The Center has many multipurpose rooms to accommodate an array of events including a ballroom, fieldhouse for recreation activities and tradeshows, conference rooms, and party rooms. Total sellable event space offered at the Center is nearly 17,000 square feet. The facility is managed by Holmes Center, Inc. and has a board of directors with 8 representatives from the city, school, community and the Midwest MN Community Development Corporation. The facility has more than 60 employees. Page 48

49 III. COMPETITIVE & COMPARABLE FACILITIES Comparable Event Venues Case Studies MONTROSE PAVILION MONTROSE, COLORADO Located in Montrose, Colorado, the Montrose Pavilion opened in Montrose is located 300 miles southwest of Colorado s largest city, Denver. The Center is owned and operated by the City of Montrose, and situated just one mile from the downtown market area. While not offering any dedicated exhibit space, the Center offers 4,300 square feet of meeting space, and a 3,000-square foot ballroom, in addition to the 602-seat auditorium. Further, the facility offers 4,000 square feet of gallery space typically used for art functions and a 1,000-square foot outdoor courtyard that is furnished by the Montrose Botanical Gardens. Facility funding was derived from sales tax revenue bonds, with the help of $275,000 was granted by the Colorado State Impact Committee and over $363,000 was raised in local fundraising efforts. Additional funds were provided by the City of Montrose Capital Improvements Program, and a private land donation. The Montrose market offers 17 hotels, motels and bed and breakfast accommodations, 44 restaurants and 4 major air carriers servicing the Montrose Regional Airport. Page 49

50 III. COMPETITIVE & COMPARABLE FACILITIES Comparable Event Venues Case Studies OAKLEY-LINDSAY CIVIC CENTER QUINCY, ILLINOIS Located just three blocks from the Mississippi River, on the far west edge of Illinois, the Oakley-Lindsay Center that is accessible by car, plane, bus and boat. The $8.5 million facility is multipurpose in nature, offering both convention and performing arts space, and was completed in The Center offers 29,500 square feet of exhibit space and 1,800 square feet of meeting space, in addition to the 500-seat Quincy s Community Theater. The Theater has hosted musical, mystery, comedy and drama productions since its opening, providing a focal community arts gathering place for the Quincy community, while the Center s meeting space has provided an opportunity for local meetings, receptions, banquets, and lectures, as well as non-local conferences, conventions and tradeshows. Page 50

51 III. COMPETITIVE & COMPARABLE FACILITIES Comparable Event Venues Case Studies OGDEN ECCLES CONFERENCE CENTER & PEERY THEATER OGDEN, UTAH Located in downtown Ogden, Utah, the Ogden Eccles Conference Center is a two level structure offering 19,600 square feet of ballroom/multipurpose space and 9,000 square feet of meeting space. The Conference Center complex is also home to the Peery s Egyptian Theater, an ornately furnished 750-seat performing arts theater, which hosts live theater, dance and music performances as well as film showings. Further, located adjacent to the Complex is the 137-room Ogden Marriott Hotel. The Theater was originally constructed as a movie showplace in 1924 after a fire demolished the Arlington Hotel. Since then, the Theater underwent remodels, renovations and closure until Weber County, Ogden City, Weber State University, Egyptian Theater Foundation and the Ogden/Weber Chamber of Commerce partnered to restore the Theater and reopen it alongside the new Conference Center development in The day-to-day operations of the Center are handled by the private management company, SMG. In 2007, the Conference Center and Theater hosted 72 events, accounting for 716 event days. Specifically, in the month of December alone, the Conference Center held 32 events, and was utilized 44 event days, bringing nearly 5,800 attendees to the complex and accounted for over $163,000 in event revenue, while the Theater hosted six events, being in use 12 event days, bringing in over 5,950 attendees and accounting for $18,050 in event revenue. The dance rehearsal room accounted for the remaining 16 event days. Page 51

52 III. COMPETITIVE & COMPARABLE FACILITIES Comparable Event Venues Case Studies PAUL OGLE CULTURAL & COMMUNITY CENTER NEW ALBANY, INDIANA Located on the Indiana University Southeast campus in New Albany, Indiana, the $10.5 million Paul W. Ogle Cultural and Community Center is a state-of-the-art arts and music venue that is the home to not only IUS, but the New Albany community as well. The Center opened in Major funding contributions came in the form of $3 million from the Indian state legislature, $2 million gift from a southern Indian charitable foundation, and $2.7 million in contributions from alumni, students, friends, faculty and staff members. The Facility is home to the 500-seat Richard Stem Concert Hall, 338-seat Robinson Theater, and 96-seat Recital Hall, in addition to an art gallery, classrooms, faculty offices, practice studios and a scenery shop. The Center hosts many creative event series in conjunction with IUS and other community organizations, including the Different Drummer Series, Discovery Series, Global Village, Common Experience, Chase Bank Children s Series, IUS Music Department, IUS Theater Department, and Louisville Orchestra Nightlites. Page 52

53 III. COMPETITIVE & COMPARABLE FACILITIES Comparable Event Venues Case Studies PUEBLO CONVENTION CENTER PUEBLO, COLORADO The Pueblo Convention Center is located in historic downtown Pueblo and situated 40 miles south of Colorado Springs and 100 miles south of Denver. In total, the Center offers over 23,500 square feet of event space, which includes 16,200 square feet of ballroom space and 7,300 square feet of meeting space. Further, the Center is connected to a 164- room Marriott and constructed in The Colorado State University Pueblo campus is located in close proximity to the Center, as well as other Pueblo attractions, including the El Pueblo Museum, Pueblo Greyhound Park and the Lake Pueblo State Park/Reservoir. In 2007, the Center hosted approximately 544 events, with 70,400 attendees, generating $1.45 million in gross income. Of the 544 events, the Center hosted 22 conventions, 12 consumer shows, 116 banquets, 354 meetings, 2 tradeshows and 38 other events. The Center is privately managed by Global Spectrum. Page 53

54 III. COMPETITIVE & COMPARABLE FACILITIES Comparable Event Venues Case Studies SALEM CONFERENCE CENTER SALEM, OREGON The Salem Conference Center and adjoining 193-room Phoenix Grand Hotel opened in 2005, located approximately 48 miles south of Portland. The Conference Center has a total sellable space of 24,300 square feet, including 12,900 square feet of meeting space and 11,400 square feet of ballroom space. Entire project costs for the Center totaled $32 million, including $22.7 million in hard construction costs, while the hotel cost $17 million. The project partnership consists of the Urban Renewal Agency of the City of Salem (public) and the presidents of VIP s Industry (private) and the Phoenix Grand Hotel (private). The Conference Center is owned by the Urban Renewal Agency and operated by VIP s Industry, which owns and operates the Hotel. It is estimated that the Conference Center and Hotel generates $2 million in additional spending in the City of Salem and hosts an average of 450 events each year. In 2007, the Center hosted its 1,000th event. Since its opening, approximately 179,000 guests have attended 1,294 events. During it s a recent fiscal year, the Center generated an operating income of $506,585. Page 54

55 III. COMPETITIVE & COMPARABLE FACILITIES Comparable Event Venues Case Studies STATESVILLE CIVIC CENTER STATESVILLE, NORTH CAROLINA The Statesville Civic Center opened in The City of Statesville currently owns and operates the Civic Center. Located in the downtown area of Statesville, the Center is within walking distance of historic attractions, restaurants and shopping. However, the facility is not within walking distance of any hotel inventory, which impacts its ability to attract nonlocal conventions, conferences and meetings. The Center incorporates 12,000 square feet of ballroom/ multipurpose space, and an additional 2,400 square feet of meeting space. Located in the lobby of the Center is the Images at the Crossroads, a fresco produced by artist Ben Long, portraying the mythological goddess of the crossroads. On a yearly basis, this facility hosts over 400 events, including many meetings and banquets, consumer shows, tradeshows and some association events. Policies and procedures at the facility are more aligned with a traditional civic/community center model, without preferential treatment for non-local events. Page 55

56 III. COMPETITIVE & COMPARABLE FACILITIES Comparable Event Venues Case Studies TWO RIVERS CONVENTION CENTER GRAND JUNCTION, COLORADO The Two Rivers Convention Center opened in Renovation and expansion of the facility was completed in 2001 and the facility now offers approximately 20,700 square feet of total sellable space, including 18,600 square feet of multipurpose ballroom space; and 2,100 square feet of meeting space throughout six meeting rooms. In fiscal year 2006, the Center hosted 954 total events with an estimated attendance of 135,400 total people. The facility reported revenues of nearly $2.1 million and total overall expenses of nearly $2.2 million for a net operating loss of approximately $126,000 for the year. However, new markets have developed to help spur this increase in revenue such as boxing and mixed martial arts public events, expanded demand for weekly safety meetings, parties and other events for local oil and gas companies, increased demand from the energy industry as a whole to conduct trade shows and employment recruiting events and other such events. According to the Two Rivers Organization, City Parks and Recreation Department, 2006 fiscal year events at the TRCC accounted for approximately 4,000 total hotel room nights, nearly $275,000 in hotel guest room revenue and a total economic impact of nearly $444,000. Page 56

57 III. COMPETITIVE & COMPARABLE FACILITIES Comparable Event Venues Case Studies WENATCHEE CONV. CENTER & PERF. ARTS CENTER WENATCHEE, WASHINGTON Located in downtown Wenatchee, the Wenatchee Convention Center & Hotel and Wenatchee Performing Arts Center are adjoined by skyway. The Convention Center was constructed in 1980 through a $2.6 million Economic Development Administration grant. Since that time, the Center has evolved, being renovated and expanded upon to what it is today. The Center incorporates a 7,600-square foot exhibit hall, 11,600 square feet of meeting space, 10,100 square feet of ballroom space and 147 guest rooms. The Center is part of a public/private partnership between the City of Wenatchee and Coast Hotels. The Center is owned by the City and operated by Coast Hotels, which also operates the Wenatchee Coast Hotel that is part of the complex. The PAC was built in October 2000 for $7.5 million and owned and operated by a board of directors. The PAC s main theater has a fixed audience capacity of 496, while there is additional space to add temporary seats to reach a max capacity of 605. During the initial start up years, the Center was only being utilized once or twice a month. In 2008, the Center hosted over 80 local and touring events. Total attendance at the Center has continued to grow each year, with the season reaching 23,000 patrons, and the season grew to 28,000 people. Page 57

58 III. COMPETITIVE & COMPARABLE FACILITIES Comparable Event Venues Facility Summary Sellable Space Fixed Building Year Construction # of Financial City, State Facility (in SqFt) Seats Type Owner Operator Opened Costs Events Operation Ardmore, OK Ardmore Convention Center 26,400 n/a CC Authority Authority 2004 $8.2 million 200 n/a Detroit Lakes, MN Detroit Lakes Comm. & Cultural Ctr. 16, CC/PAC 501(c)(3) 501(c)(3) 2001 $9.5 million n/a n/a Grand Junction, CO Two Rivers Convention Center 20,700 n/a CC City City 1975 n/a 950 ($126,000) Juneau, AK Centennial Hall 14,300 n/a CC City City 1983 n/a 75 n/a Ketchikan, AK Ted Ferry Civic Center 5,000 n/a CC City City 1994 n/a 150 ($300,000) Layton, UT Davis Conference Center 43,400 n/a Hotel/CC County Hotel 2004 $20.0 million 700 ($400,000) Montrose, CO Montrose Pavilion 7, CC/PAC City City 1991 n/a 391 ($450,000) New Albany, IN Paul Ogle Cultural & Comm. Ctr (IUS) 2, PAC IUS IUS 1996 $10.5 million n/a n/a Norcross, GA Cultural Arts & Community Center 9, Comm.C City City 2008 $2.0 million n/a n/a Ogden, UT Ogden Eccles Conf. Ctr. & Peery Thtr. 28, CC/PAC County SMG 1997 n/a 72 ($549,900) Pueblo, CO Pueblo Convention Center 23,500 n/a CC City Global Spectrum 1997 n/a 544 ($352,200) Quincy, IL Oakley-Lindsay Civic Center 31, CC/PAC Authority Authority 1995 $8.0 million n/a n/a Salem, OR Salem Conference Center 24,300 n/a Hotel/CC Agency Hotel 2005 $22.7 million 450 n/a Sitka, AK Harrigan Centennial Hall 4, CC/PAC City/Borough City/Borough 1967 n/a n/a ($300,000) Statesville, NC Statesville Civic Center 14,400 n/a CC City City 1999 n/a 400 ($350,000) Valdez, AK Valdez Civic & Convention Center 8, CC/PAC City City 1982 n/a 400 ($250,000) Wenatchee, WA Wenatchee Conv. Ctr. & Perf. Arts Ctr. 29, Hotel/CC/PAC City/Authority Hotel/Authority 1980/2000 $2.6 m/$7.5 m n/a n/a Wrangell, AK Nolan Center 5, CC/Comm.C City City 2004 $9.0 million 80 ($310,000) Page 58

59 IV. INDUSTRY CHARACTERISTICS & TRENDS Events & Facilities Traditional Event Types Event Types Primary Purpose Key Facility Requirements Typical Facility Used Attendee Characteristics Conventions Information exchange, Exhibit, Ballroom Convention Center, Predominently sales & networking & Meeting space Conference Center non-local Conferences Information exchange, Ballroom and Conference Center, Depends on scope of sales & networking Meeting space Hotel, Convention group, many are Center meeting space predominently non-local Tradeshows Sales & Advertising Exhibit space Convention Center, Depends on scope of Exhibition Center, show, can have large Tradeshow Facility percentage non-local Consumer Shows Sales & Advertising Exhibit space Convention Center, Mostly local Exhibition Center Social, Military, Information exchange, Meeting, banquet, Civic/Community Ctr., Depends on scope of Educational, Religious, civic, social, networking multipurpose space Exhibition Center, group, some are Fraternal Events Conv./Conf. Center predominently non-local Meetings / Banquets Information exchange, Meeting and Ballroom Conference Center, Typically local training, incentive Hotel Spectator Events Entertainment Seating, stage/event floor Arena, Civic Center, Typically local Exhibition Center Page 59

60 IV. INDUSTRY CHARACTERISTICS & TRENDS Events & Facilities Typical Facility Characteristics Convention Conference Expo Community/ Spectator Equestrian Fairgrounds Center Center Center Civic Center Arena Center Complex Type of Space Exhibit, Meeting, Ballroom Meeting, Ballroom Exhibit, Limited Meeting Multipurpose Space Spectator Seating, Flat Floor Space Multiple Indoor & Outdoor Facilities, Dirt & Concrete, Spectator Seats Multiple Indoor & Outdoor Facilities, Dirt & Concrete, Spectator Seats Typical Events Conventions, Trade Shows, Meetings, Banquet, Public Shows Conferences, Meetings, Banquets Public Shows, Trade Shows, Mis cellaneous Local Meetings & Banquets, Recreation, Other Events Spectator and Other Events Horse, Rodeo, Ag., Livestock, Public Shows Fair, Ag., Horse, Livestock, Public Shows, Festivals, Other Typical Ancillary Characteristics Adjacent Headquarters Hotel Adjacent Headquarters Hotel Parking, Accessibility, Vis ibility Parking, Accessibility, Vis ibility Parking, Accessibility, Vis ibility Parking, RV Hookups, Large Acreage Parking, RV Hookups, Large Acreage Economic Impact Generating Ability High Moderate Limited to Moderate Limited to Moderate Limited to Moderate Moderate Limited to Moderate Page 60

61 IV. INDUSTRY CHARACTERISTICS & TRENDS Events & Facilities Typical Facility Requirements High Exhibit/ Upscale Nearby Quality Lg. Event Banquet Breakout Spectator Nearby Secondary Visitor Finish Facility Hall Rooms Seating Parking Hotels Facilities Amenities Conventions HIGH HIGH HIGH HIGH LOW MED HIGH LOW HIGH Conferences HIGH MED HIGH HIGH LOW MED HIGH LOW HIGH Meetings HIGH LOW MED HIGH LOW LOW LOW LOW MED Banquets/Receptions HIGH LOW HIGH MED LOW MED LOW LOW MED Tradeshows MED HIGH LOW LOW LOW HIGH MED LOW HIGH Consumer/Public Shows LOW HIGH LOW LOW LOW HIGH LOW LOW MED Agricultural Shows LOW HIGH LOW LOW LOW HIGH LOW HIGH LOW Equestrian Events LOW HIGH LOW LOW MED HIGH LOW HIGH LOW Rodeos LOW HIGH LOW LOW HIGH HIGH LOW MED LOW Tractor Pulls LOW HIGH LOW LOW HIGH HIGH LOW MED LOW Sporting Events LOW HIGH LOW LOW HIGH HIGH LOW LOW LOW Concerts LOW MED LOW LOW HIGH HIGH LOW LOW MED Festivals LOW HIGH LOW LOW LOW HIGH LOW LOW LOW Page 61

62 IV. INDUSTRY CHARACTERISTICS & TRENDS Events & Facilities Traditional Booking Models Convention Center Private Conference Center Civic/Community Center Booking priorities Room night, economic Selective, based on profitability All events impact-generating events calculatons (and room night considerations if a hotel conf. ctr.) Primary booking agency CVB Center Center Secondary booking agency Center None None Control of facility calendar CVB long-term booking Center Center (i.e., 12 months and out), Center for short-term booking (i.e., 12 months and in) Booking timing Room night associated events Varies None, other than certain recurring over a certain threshold events that sometimes are given typically can book "long-term", booking precedence local or limited room night events often may only book in "short term" Marketing and leads Handled by CVB Handled internally, some Handled internally, some marketing referrals may come from CVB and referrals may come from CVB Page 62

63 IV. INDUSTRY CHARACTERISTICS & TRENDS Macro Issues Growth of Large U.S. Tradeshows Net Square Feet Exhibiting Companies Attendance Real GDP Growth Index 1987=100 Base Year Source: Tradeshow Week; U.S. Department of Commerce; Bureau of Economic Analysis, 2009 Page 63

64 IV. INDUSTRY CHARACTERISTICS & TRENDS Macro Issues Growth of All U.S. Exhibit Events Net Square Feet Exhibiting Companies Attendance Real GDP Growth Index 2000=100 Base Year Source: CEIR, US Bureau of Economic Analysis, Page 64

65 IV. INDUSTRY CHARACTERISTICS & TRENDS Macro Issues Conv Ctr Supply vs. Large TS Demand Supply: Venue Exhibit Space Demand: Net Square Feet Growth Index 1989=100 Base Year Source: Tradeshow Week Major Exhibit Hall Directory, Page 65

66 IV. INDUSTRY CHARACTERISTICS & TRENDS Macro Issues CC Supply vs. All Exhibit Event Demand CEIR Demand Index vs. Tradeshow Week Exhibit Supply Exhibit Space Supply Net Square Feet Growth Index 2000=100 Base Year Source: CEIR Index Report, 2009; Tradeshow Week Major Exhibit Hall Directory, Page 66

67 IV. INDUSTRY CHARACTERISTICS & TRENDS Small Market Convention Industry Trend Conclusions The market success of a convention/conference center can be partially attributed to the characteristics of the industry as a whole. Broad industry changes, characterized by sometimes significant retraction and expansion in convention and tradeshow demand have taken place within the industry over the past decade. In 2009, the U.S. economy fell into a significant recession. Metrics for 2008 illustrated deteriorating economic conditions that led to a decline in macro industry-wide demand. The speed in which the U.S. economy recovers will determine the extent of the likely negative impact on convention industry demand. However, the practical manifestations for smaller communities of the downturn in the economy should be more limited, as they tend to be more economical and drive-in regional destinations. These types of third-tier destinations often have lower costs of living (including lower priced hotels, restaurant meals, taxes, etc.) that become more appealing during hard economic times. Additionally, it is critical to recognize that every community and destination is unique, and application of blanket industry-wide, macro assessments of supply and demand phenomena do not consider the uniqueness of individual markets. Like nearly everything in a free market society, individual convention/conference centers operate in a survival of the fittest environment. Destination appeal is normally the common denominator with successful projects. Convention centers located in the strongest destinations tend to be the most successful, while facilities located in destinations with weak appeal and/or deficient visitor amenities more often struggle or underperform industry averages. Recognizing that the convention/conference center facility itself is only one piece of a larger puzzle that nonlocal event planners tend to consider when selecting sites, more and more communities have been focusing on ways to strengthen the appeal of the proximate area surrounding the box. This often involves comprehensively master planning a mixed-use or entertainment district containing the convention center, whereby an attractive pedestrian-friendly environment is created to welcome convention center attendees, through offerings of restaurants, retail, nightlife, entertainment and attractions. Connectivity issues are often addressed that physically and perceptually bring together the district to other nearby attractions and districts. Healthy, vibrant and exciting environs surrounding the convention center are normally viewed very attractively by event planners and can provide important advantages in marketing a destination and its convention center. Page 67

68 V. MARKET DEMAND ANALYSIS Summary of Methods In-person visit at the outset of the study and tours of community and existing facilities. Meetings with local groups and individuals: - City officials - Business leaders - Visitor industry representatives - Reps from local arts, cultural & historical organizations Telephone survey of 40 local and state organizations with rotating conferences and meetings, including Anchoragebased corporations. Interviews with management of more than 20 competitive and comparable event facilities. Page 68

69 V. MARKET DEMAND ANALYSIS Non-Local Event Survey Likelihood of Utilizing a New Palmer Conference Center Definitely 15% Positive Response = 49% Negative Response = 51% Likely 13% Possibly 21% Not Likely 28% Definitely Not 23% 0% 5% 10% 15% 20% 25% 30% Source: CSL State Organization Survey, Page 69

70 V. MARKET DEMAND ANALYSIS Non-Local Event Survey Reasons for Not Considering a New Palmer Conference Facility No Membership 23% Too Small/Remote No Airport 20% 20% Prefer Anchorage 13% Lack of FS Hotels No Amenities 10% 10% Other 3% 0% 10% 20% 30% Note: Of those respondents with a negative interest in Palmer Source: CSL State Organization Survey, Page 70

71 V. MARKET DEMAND ANALYSIS Non-Local Event Survey Event Seasonality 26% 24% 22% 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 24% 18% 16% 11% 11% 8% 5% 3% 3% 3% 0% 0% January February March April May June July August September October November December Note: Of those respondents with a positive interest in Palmer Source: CSL State Organization Survey, Page 71

72 V. MARKET DEMAND ANALYSIS Non-Local Event Survey Requirement of Headquarters Hotel within Close Walking Proximity No, 24% Yes, 76% Note: Of those respondents with a positive interest in Palmer Source: CSL State Organization Survey, Page 72

73 V. MARKET DEMAND ANALYSIS Non-Local Event Survey Total Exhibit Space Required 15,000 Gross Square Feet of Exhibit Space 12,000 9,000 6,000 3,000 0 Average 4,600 sq ft. Median 3,000 sq ft. 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% Percent of Market Captured 70% 75% 80% 85% 90% 95% 100% Note: Of those respondents with a positive interest in Palmer Source: CSL State Organization Survey, Page 73

74 V. MARKET DEMAND ANALYSIS Non-Local Event Survey Total Meeting Space Required 25,000 Gross Square Feet of Meeting Space 20,000 15,000 10,000 5,000 Average 6,900 sq ft. Median 4,950 sq ft. 0 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% Percent of Market Captured 75% 80% 85% 90% 95% 100% Note: Of those respondents with a positive interest in Palmer Source: CSL State Organization Survey, Page 74

75 V. MARKET DEMAND ANALYSIS Non-Local Event Survey Total Ballroom Space Required 8,000 Gross Square Feet of Ballroom Space 6,000 4,000 2,000 0 Average 3,300 sq ft. Median 3,000 sq ft. 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% Percent of Market Captured 70% 75% 80% 85% 90% 95% 100% Note: Of those respondents with a positive interest in Palmer Source: CSL State Organization Survey, Page 75

76 V. MARKET DEMAND ANALYSIS Non-Local Event Survey Total Sellable Space Required 35,000 Gross Square Feet of Sellable Space 30,000 25,000 20,000 15,000 10,000 5,000 0 Average 14,900 sq ft Median 13,500 sq ft 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% Percent of Market Captured 75% 80% 85% 90% 95% 100% Note: Of those respondents with a positive interest in Palmer Source: CSL State Organization Survey, Page 76

77 V. MARKET DEMAND ANALYSIS Non-Local Event Survey Average Attendance Delegate Attendance Average 320 Median 295 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% Percent of Market Captured 70% 75% 80% 85% 90% 95% 100% Note: Of those respondents with a positive interest in Palmer Source: CSL State Organization Survey, Page 77

78 V. MARKET DEMAND ANALYSIS Non-Local Event Survey Peak Hotel Rooms Required 600 Peak Hotel Rooms Required Average 103 Median % 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% Percent of Market Captured 70% 75% 80% 85% 90% 95% 100% Note: Of those respondents with a positive interest in Palmer Source: CSL State Organization Survey, Page 78

79 V. MARKET DEMAND ANALYSIS Market Demand Conclusions Non-Local Meeting Demand: Surveys of non-local groups with recurring events suggest moderate demand for a new conference facility in Palmer. However, the breadth and quality of local hotels will work to limit the number of non-local conventions, conferences and tradeshows attracted. At a minimum, a new quality HQ hotel would be required in order to maximize non-local event attraction. Day-trip meetings/retreats originating from Anchorage metro could represent a niche, along with periodic small conferences. Local Meeting Demand: Local event demand is typically correlated with local area population, number of local corporations and competitive venues. While not possessing hotels with significant meeting space, the greater Palmer/Wasilla marketplace does offer the Fairgrounds facilities and the Sports Complex that can accommodate a wide variety of local events. Comparing Palmer s population with that of Wrangell, Sitka, Valdez and Ketchikan, along with their local event levels, provides inferences for local event levels at a new Palmer facility. Page 79

80 V. MARKET DEMAND ANALYSIS Market Demand Conclusions (continued) Other Uses: Like many communities, there are a number of local arts (performing and visual) and cultural/historical groups that expressed an interest in using a new facility. The local arts community is presently small and somewhat fragmented, but opportunities could exist to grow elements with a new facility. Opportunity to create museum space to have permanent or rotating arts exhibits. Having a single facility home for meetings, civic events, arts, cultural and visitor services has intangible merit in maximizing use, exposure and marketability (to local constituents). Overall Market Demand Issues: Market demand among both non-local and local segments is estimated to be lower than comparable facilities throughout the country, but similar to other Alaskan facilities (i.e., Wrangell, Sitka, Juneau, Valdez, Ketchikan, etc.). Some variances in usage characteristics will likely exist, given (a) Palmer s proximity to Anchorage and Wasilla, and (b) presence of the Fairgrounds and Wasilla multi-use sports facilities (that can accommodate certain large local events). The attraction of a private sector HQ hotel partner would be considered very challenging, given the latent hotel demand and performance characteristics in the local marketplace. A significant public sector incentive would likely need to be offered before such consideration would be made by the private sector. Page 80

81 VI. DEVELOPMENT OPTIONS & PROGRAM ISSUES Facility Type & Focus All small market facilities benefit from a significant focus on flexibility. However, it is very difficult to be everything to everybody. Given the existing the hotel inventory and the unlikelihood of attracting an appropriate HQ hotel, it is suggested that any new Palmer facility have a civic/community center focus. Event profile will be strongly local-oriented. Events will include: meetings, banquets, wedding receptions, retreats, board meetings, civic events, seminars, academic symposiums, educational classes, training sessions, art exhibits and performances, and other such activities. Facility must be affordable for local events and uses, significant discounts should be offered for non-profit, government and civic groups. Focus on exploring possibility of long-term civic, educational, arts and government tenants. Consideration of integrating equity return vehicles could improve the facility s financial bottom line. These could include: (1) leasable office/retail space, (2) permanent sponsor display areas, and (3) long-term facility usage agreements. Page 81

82 VI. DEVELOPMENT OPTIONS & PROGRAM ISSUES Programmatic Considerations Market Supportable Space Levels: Multipurpose Hall 7,000 to 8,000 SF subdividable, column-free, upscale space Minimum of 20-foot ceiling heights Modern technology & portable stage Breakout Meeting/Classroom Space Between 3,000 and 4,000 SF Subdividable, multipurpose, upscale Museum/Display/Cultural Space Would include gallery, gift shop, visitor center Between 5,000 and 6,000 SF (not including storage) Small fixed-seat auditorium could be an added amenity, but might significantly add to costs and would likely have lower utilization Sufficient pre-function, circulation, support and storage/archive space. Warming kitchen/food prep area. Est. facility footprint = 30,000 to 36,000 SF (<1 acre), with acreage for parking, ingress/egress, green space, loading, etc. Page 82

83 VI. DEVELOPMENT OPTIONS & PROGRAM ISSUES Considering the Wrangell Example Components Space levels Use levels Financial operations Page 83

84 VI. DEVELOPMENT OPTIONS & PROGRAM ISSUES Facility Scenarios Analyzed SCENARIO 1: Multi-purpose conference/community center with fixed-seat auditorium SCENARIO 2: Multi-purpose conference/community center with fixed-seat auditorium and Borough as a contracted tenant Page 84

85 VII. SITE/LOCATION ISSUES Site/Location Important Factors 1. Proximity to quality full-service hotel inventory 2. Requirements of private partner (if applicable) 3. Size, cost and ownership complexity of site 4. Proximity to restaurants, retail, nightlife, entertainment 5. Pedestrian-friendly walking environment 6. Parking availability 7. Ingress/egress 8. Site visibility 9. Synergy with other development initiates 10.Compatibility with surroundings 11.Other considerations Page 85

86 VII. SITE/LOCATION ISSUES Targeted Site and Location Issues 1 Pioneer Motel (28 rms) 2 Gold Miner's Hotel (28 rms) 3 Valley Hotel (43 rms) 4 Colony Inn (12 rms) 5 Alaska's Choice Inn (30 rms) A Site A A 4 5 Page 86