Capital Improvements. Practical Solutions for Aging Venues / Planning for Future Needs. Planner: Brailsford & Dunlavey Architect: Generator Studio

Transcription

1 Capital Improvements Practical Solutions for Aging Venues / Planning for Future Needs S u n d a y, A u g u s t 1, Planner: Brailsford & Dunlavey Architect: Generator Studio Builder: Turner Construction Operator: Spectra Venue Management

2 Agenda Introductions Case Studies Panel Discussion Q&A

3 Tom Proebstle Partner & Design Director for Kansas City-based sports architecture firm Generator Studio Partner & Design Director: Crawford Architects Master Plan to save Fenway Park Renovations to Centurylink Field Virginia Mason Athletic Center Associate & Lead Project Designer: AECOM Lambeau Field Renovation & Expansion Banker s Life Fieldhouse Projects Amalie Arena Master Plan, Expansion & Renovation Tampa Bay Lightning Scottrade Center Master Plan and Renovation St. Louis Blues Xcel Energy Center Loge Boxes & Technology Upgrades Minnesota Wild U.S. Bank Stadium Various Projects Minnesota Vikings

4 Case Study: Amalie Arena 2014 Master Plan - Renovate or build new? - Integration into 27-acre master plan - Assessment of a 20-year old building - Phased approach - Renovations and deferred maintenance

5 Case Study: Amalie Arena 2015 Renovation - Club & Suite Level focus - Increase seating types and price points - Heavy theming and corporate partnerships - Create a unique and authentic premium experience

6 Case Study: Amalie Arena 2015 Club Level - New Lofts - Break into seating bowl - Group sales for 120 or two groups of 60

7 Case Study: Amalie Arena 2015 Club Level - 40 new loge boxes, 160 seats total - Shoot twice and open for end stage concerts - Unique food & bev including action stations, self serve food, self serve beers - All inclusive

8 Case Study: Amalie Arena 2015 Club Level - 40 new loge boxes, 160 seats total - Shoot twice and open for end stage concerts - Unique food & bev including action stations, self serve food, self serve beers - All inclusive

9 Case Study: Amalie Arena 2015 Club Level - Outdoorsman s Lounge - Unique food & bev in addition to improved regular fare - Bourbon, craft beers - Heavy leather chairs, dark wood, many tv s and art.

10 Case Study: Amalie Arena 2015 Club Level - New VIP arrival - Underutilized smoking patio converted to premium covered outdoor space - Fieldturf seating area - Unique signature cocktails

11 Top 50 Renovation Issues We Face Refresh venue to be relevant and useful for the next 20 years for: Neighborhood and community Metropolitan region National markets Specific sport and other sports fans Promoters of other events Improve revenue streams Improve, refresh and integrate the team and venue brand: Heart and soul of the city Family friendly Food and beverage service Retail merchandising Fan media experiences Integration of community outreach Repurpose venue to attract and maintain interest of fans: Create gathering spaces Develop community zones Alternate seating options Exterior enhancements Connection to adjacent facilities Upper level public spaces Administrative offices Add value to premium seat experiences Radio broadcast partners Connect fans to areas of service Improve suites Renovate, upgrade and overhaul an important public asset: Address issues that improve safety of guests and users Escalators, elevators and lifts Life safety components Use of stairs Team and league-oriented improvements Locker room renovations Weight and training rooms League compliance Restore, replace and maintain infrastructure Waste water piping Seating Retractable seating systems Lighting systems Sports lighting systems Other mechanical, electrical, plumbing systems Ice plant and ice sheet systems in arenas Replace outdated systems and add new systems Electronic display systems Center hung scoreboard (arenas) and video boards Video and sound production facilities WiFi IPTV system Signage and wayfinding graphics Recognize sponsorship partners Exterior signs and LED systems Improve or install new systems to attract events Special events space provisions Curtaining systems Sound system and acoustical treatment Back of house Organize existing and add new storage areas Staff circulation Kitchen improvements

12 Tom Paci, LEED AP, PE Born in Chicopee, Massachusetts, Graduate of Rensselaer Polytechnic Vice President, Director of Preconstruction Turner Construction Sports, 44 years with Turner Has worked on more than 150 sports and public assembly projects in last 30 years Most Memorable Project: Charlotte Coliseum, 1985 Most Recent Project: Florida Citrus Bowl, 2015

13 Madison Square Garden $800 million over three (3) 18-week dark summers periods Key stats Removal & replacement of upper bowl Addition of two club bridges Suites relocated to mid bowl Addition of bunker suites All new concessions/toilets Technology upgrades Building hardening Haz mat abatement New ice floor & scoreboard Work over Amtrak Penn Station

14 Madison Square Garden $800 million over three (3) 18-week dark summers periods Key stats Removal & replacement of upper bowl Addition of two club bridges Suites relocated to mid bowl Addition of bunker suites All new concessions/toilets Technology upgrades Building hardening Haz mat abatement New ice floor & scoreboard Work over Amtrak Penn Station

15 Madison Square Garden $800 million over three (3) 18-week dark summers periods Key stats Removal & replacement of upper bowl Addition of two club bridges Suites relocated to mid bowl Addition of bunker suites All new concessions/toilets Technology upgrades Building hardening Haz mat abatement New ice floor & scoreboard Work over Amtrak Penn Station

16 Florida Citrus Bowl Reconstruction $207 million project cost in 10 months Key stats Complete removal & replacement of lower bowl Addition of sideline vertical transportation towers All new concessions/toilets Suite & press renovation New clubs New scoreboards January New plaza and site work

17 Florida Citrus Bowl Reconstruction $207 million project cost in 10 months January February

18 Florida Citrus Bowl Reconstruction $207 million project cost in 10 months June

19 Florida Citrus Bowl Reconstruction $207 million project cost in 10 months November

20 Phil Laws Senior Director of Operations, Philadelphia, PA Based in Philadelphia, PA 15 years of experience Primary responsibilities: Event operations guidelines Capital planning Labor management policies Union contracts Projects Flyers Training Facility, Voorhees, NJ (completed 2013) XL Center, Hartford, CT (completed 2014) Wells Fargo Center, Philadelphia, PA (planning phase) Flyers Skills Addition and Weight Training Renovation (construction phase) Nationals Park, Washington DC Sporting Park, Kansas City, KS

21 XL Center Key stats 39 year-old arena 15,600 seats (hockey) Harford Wolf Pack (AHL) UCONN basketball & Hockey $35 million renovation (2014) Building systems Seating bowl Locker rooms Concourse & atrium Video boards Premium seating

22 XL Center - Seating Bowl

23 XL Center - Atrium

24 XL Center - Concourse

25 XL Center - Concourse

26 Bryan Slater Project Manager with B&D (Orange County, CA) Public Finance Background 5.5 years with B&D and 45 + public assembly venue assignments Former lecturer at George Washington University Sports and Events Facility Management First Project: University of Houston Football Stadium Most Recent: LJVM Coliseum Projects Nationals Park Capital Improvement Planning Events DC Amalie Arena Capital Improvement Planning Tampa Bay Lightning Scottrade Center Renovation Advisory Services St. Louis Blues Lawrence Joel Veterans Memorial Coliseum Renovation Advisory Services Wake Forest

27 Step 1: Needs Assessment Reveals major opportunities for reconfiguration or re-purposing $3,000,000 $2,859,200 Loge Box Inventory Value $2,710,200 $2,465,000 Owners often have audits / wish lists that serve as basis for non-revenue improvements $2,500,000 $2,000,000 $2,444,000 $1,664,000 Net 75% - $1.4MM $1,500,000 The market analysis should serve as the platform for the entire process: $1,000,000 $1,100,000 $500,000 $360,000 $300,000 Demographic Comparisons Premium Seating Analyses Primary Research Benchmarking $0 Columbus St. Paul Pittsburgh Tampa Phoenix Denver Nashville Raleigh

28 Step 2: Project Concepts Project Concept Elements: Outline seating programs F&B additions / subtractions Miscellaneous changes (LED Ribbon boards, IPTV, scoreboards, etc.) SEATING CONCEPT A - Elements Quantity Seats / Unit Total Seats SF / Seat Total SF Price Point Revenue Potential Club Seats ,000 $2,900 $2,610,000 Loge Boxes ,448 $4,750 $684,000 Luxury Suites (Revenue) ,880 $62,500 $750,000 Two concepts are selected for further testing Planners, A / E, and builder start operating on parallel tracks Project scope should become clear, along with need for potential funding support Luxury Suites (Non-revenue) $0 $0 Party Suites ,600 $2,500 $90,000 Group Area ,880 $65 $187,200 TOTAL 1,448 39,788 $4,321,200

29 Step 3: Financial Analysis Financial Analysis models bottom line impact of project concepts Budget is fully developed that includes escalation and contingency for unknowns Revenues are reconciled with capital costs to discern public / donor support needed (if any) Highlights areas of risk with the improvement CONCEPT A - Moderate Year Percent of Total Tickets / Lease Premiums Loge Boxes $220,000 $227,000 $234,000 9% Club Suites $325,000 $335,000 $345,000 8% Luxury Suites $450,000 $464,000 $478,000 12% Penthouse Club $120,000 $124,000 $128,000 7% Group Areas $85,000 $88,000 $91,000 5% Ticket/Lease $1,200,000 $1,238,000 $1,276,000 41% F&B / Novelties Permanent Stands $425,000 $438,000 $451,000 9% Portable Carts $125,000 $129,000 $133,000 2% IPTV Per Cap Increase $85,000 $88,000 $91,000 4% Premium Areas $217,000 $224,000 $231,000 14% F&B/Novelties $852,000 $879,000 $906,000 29% Advertising Loge Boxes $100,000 $100,000 $100,000 3% Club Suites $75,000 $75,000 $75,000 4% Penthouse Club $150,000 $150,000 $150,000 4% Group Areas $50,000 $50,000 $50,000 2% IPTV Spots $375,000 $375,000 $375,000 15% LED Board $150,000 $150,000 $150,000 5% Advertising $900,000 $900,000 $900,000 30% Net Revenue $2,950,000 $3,020,000 $3,080,000

30 Process Outcomes OPERATOR A/E BUILDER Outcomes Marketresponsive, practical concept(s) Building Needs Assessment Operator / Stakeholder Interviews Market Analysis Primary Research Project Concept Development Project Concepts (2 to 3) Owner Presentations Concept Refinement Financial Analysis Budgeting & Constructability Revenue & ROI Projections Project Phasing Understanding of financial implications Roadmap for implementation Benchmarking

31 So where should you be looking within your building? Main point of ingress and egress first and last impressions Available real estate on the event level Loge boxes a good solution but not a universal one Pay attention to the nose bleeds Local F&B partnering and branding opportunities Wi-Fi now belongs in the utilities expense line item

32 Capital Improvements Practical Solutions for Aging Venues / Planning for Future Needs S u n d a y, A u g u s t 1, Planner: Brailsford & Dunlavey Architect: Generator Studio Builder: Turner Construction Operator: Spectra Venue Management