Naming Rights & Sponsorship Valuations

Naming Rights & Sponsorship Valuations Railroad Park Performing Arts Center Western Day December 21, 2009 Draft Copy Subject to Change

Table of Contents City of Lewisville.... Railroad Park. Performing Arts Center..... Western Day..... Marketing Plan. Founders Partnership... 3 4 28 34 38 41 Summary.... 43 Next Steps / Issues 45 2

City of Lewisville Lewisville, Texas, is a city in Denton County, in the northern area of the Dallas Fort Worth Metroplex, along the vital Interstate 35E and Texas Highway 121 corridors. Founded in 1844 and incorporated in 1925, Lewisville is just a short drive from Dallas/Fort Worth International Airport and downtown Dallas, readily accessible to major shopping, tourism and employment destinations. As of the 2000 census, Lewisville had a population of 77,737, but with strong population growth continuing into the new millennium, the U.S. Census Bureau gives a 2008 population estimate of 101,624, meaning Lewisville has grown at the remarkable rate of 30% in less than a decade. 3

Railroad Park 4

Overview Railroad Park, located at 1301 South Railroad Street in Lewisville, Texas, is a 250 acre, $20 million outdoor athletic complex and the largest capital project in the City of Lewisville s history. The park is bordered on the west side by the former Katy Railroad Line and future track of the DCTA Commuter Line. The complex, which opened in November 2009, features eight soccer fields, four football fields, four baseball/softball fields, three permanent concession/restroom pavilions, three manmade lakes, a perimeter walking/jogging trail, the city s first skate park and the city s first dog park. The theme of the park is based on a deep tradition of the rail service, with structures patterned after the original Katy depots. Boxcars will be placed in the park, including one at the main entrance, to remind guests of the railroad heritage. 5

Dog Park The 6 1/2 acre dog park, which is the largest dog park in the Metroplex, features two areas for dogs and owners. A 5 1/2 acre area is reserved for large breeds, while one acre is dedicated to smaller breeds. Covered seating areas are provided in both sections so owners can comfortably monitor their animals. Transition areas near the entrances provide leashing/unleashing, waste disposal, wash stations and drinking and watering fountains. Potential programs to be developed could include dog obedience classes and agility training courses. Future plans call for the possible construction of an animal shelter and adoption center adjacent to Railroad Park. 6

Skate Park Designed by world renowned Site Design Group with input from local skateboarding enthusiasts, the recently opened 33,000 sq. ft. skate park is the largest hybrid skating facility in the Metroplex. Features include deep bowl skating, plaza skating (handrails, a fun box, vertical ramps, pyramids, banked ramps and stairs) and above ground features for skaters of all ages and abilities. A restroom/vending pavilion and bleachers are provided for spectators. The skate park will host numerous regional competitions and demonstrations, including the Regional Amateur Skateboard Tour (RAT), which will host a kick off event March 27 at Railroad Park. It will be my home away from home. I truly believe I will stop by there every day on my way home from work. BMX rider Barry Stokes, 31 7

Baseball/Softball Complex The baseball/softball complex contains four ball diamonds that will allow a variety of play and tournaments to be held in Lewisville. The Premier Field, with a grass infield, is dedicated to baseball and championship play. The covered seating area is designed to create a nostalgic band shell stadium effect. The other three fields have skinned infields, allowing flexibility to convert between baseball and softball of various age groups. Although there are permanent outfield fences at each field, temporary outfield fencing will also be utilized to vary the outfield distances depending on the age group. Each field also features a scoreboard and covered spectator seating. Negotiations are ongoing with youth baseball/softball organizations and two collegiate conferences for potential tournament scheduling. Those discussions include regional, state and national competitions. Railroad Park has also signed a deal to host the Dallas Tigers select baseball program, which includes several age brackets. Additionally, Lewisville will be hosting the 2010 Texas Firefighter Olympics softball tournament. The event has been held twice previously in Lewisville, each time drawing 24 teams from across the state. 8

Soccer Complex Eight soccer fields have been constructed at Railroad Park seven 120 yard regulation fields and one 100 yard youth field. The complex also features a permanent concession/restroom pavilion. Railroad Park becomes the official home of the Greater Lewisville Area Soccer Association (GLASA), which counts more than 5,000 members in age groups from Under 5 to Under 19 and has two separate seasons each year one in the fall and one in the spring. Negotiations are ongoing with two collegiate conferences regarding the possibility of hosting men s and women s conference tournaments, events that would bring teams from across Texas and also include schools from Oklahoma, Arkansas and Mississippi. Beginning in March 2010, Railroad Park will host the Panda Cup, an international soccer event that could bring as many as 150 teams, including several collegiate teams and elite club teams. Panda Cup organizers have signed a three year agreement with Lewisville with the possibility of holding the event at Railroad Park for an even longer term. The complex will also host the 2010 Texas Firefighter Olympics soccer tournament, an event that was held once previously in Lewisville and brought in 24 teams from across the state. 9

Football Complex The football complex will include four fields two 100 yard fields and two 80 yard fields for younger ages and flag football and a permanent concession/restroom pavilion. Each field has covered bleachers and a scoreboard. In addition to serving as the first full time home of the Lewisville Football Association, Railroad Park will also host FlagFootballX adult leagues. FlagFootballX typically plays three seasons per year, with each session averaging 30 teams. There are currently discussion underway about hosting 7 on 7 leagues, passing leagues and summer camps and clinics. 10

Lakes and Trails Three manmade lakes located within the park will provide a system for flood control and will be the irrigation source for the athletic fields, dog park and turf areas. No treated water will be used for irrigation. All drainage and run off is designed to flow back into the lake system. Rights have been obtained to pump water from the Trinity River to maintain a constant level in the event of a dry season or drought conditions. Liquid fertilization will be injected into the irrigation system, saving costs by providing a more accurate application and preventing waste. Texas Parks & Wildlife will be stocking the main lake with fish native to the region. Potential programming will include fishing clinics and small water craft classes for kayaks and canoes. A perimeter trail encompasses Railroad Park. Participants are encouraged to jog or walk around the park on the 1.5 mile track. The trail was designed to connect to the area wide Trinity Trail System, once developed. Upon completion, the Trinity Trail will stretch from Dallas to Denton. A drop in / take out canoe and kayak entry is planned for the future and would be located at the north end of the of the park. 11

Comparables Dick s Sporting Goods Sportsplex at Graham Park Cranberry Township, PA (23 miles north of Pittsburgh) Opened 2009 115 acres Three campuses Football/Lacrosse Baseball/Softball Soccer 13 lighted fields 2.5 miles of paved bicycle and walking trails Parking for 694 vehicles Three permanent concession/ restroom facilities Dick s Sporting Goods paid $200,000/year for 10 years 12

Comparables Riley Skate Park Farmington Hills, MI 29,000 sq. ft. all concrete park designed by Site Design Group Generated $800,000 in donations and sponsorships, mainly prior to construction $620,000 from local philanthropist $110,000 during two week pledge $30,000 from brick program $30,000 from Bright House Networks (plus $20,000 in kind) Created sponsor wall for which donors who gave at least $5,000 received a brass plaque Still seeking $100,000 donation for skater alley, $100,000 for landscaping and $50,000 for naming rights to skate park shelter 13

Attendance Model Total Attendance The table shown at right displays projected attendance levels, broken down by areas of the park. Railroad Park is expected to attract more than a halfmillion visitors annually, with actual attendance projected to be approximately 582,000. As shown in the pie chart below, the soccer complex is expected to account for nearly half of all visitors to Railroad Park, with the skate park being the second highest draw. 14

Soccer Attendance 15

Baseball Attendance 16

Football Attendance 17

Skate Park Attendance Skate Park The City of Allen collects data on attendance patterns at its skate park, which is similar in size to the new skate park at Railroad Park. Based on the numbers observed in Allen, it is reasonable to expect attendance at Lewisville s skate park to be approximately 90,000 per year. 18

Naming Rights Valuation Tangible Benefits Benefit Description Total Value Guaranteed Sponsor ID in Measured Media ID in Railroad Park Media Buy $6,000 Guaranteed Sponsor ID in Non-Measured Media Off-Site Signage/ID: State Highway 121 Railroad Park Sign $26,015 Hebron Parkway Railroad Park Sign $16,363 On-Site Signage/ID: ID at Entrance of Railroad Park $5,824 ID on Railroad Park Wayfinding Signs $5,824 ID on Outfield Fence at (4) Baseball Fields $12,000 ID on (3) Concession/Restroom Pavilions $4,825 ID on Skate Park Restroom/Vending Building $999 ID on (1) Football Scoreboard $5,000 ID at Soccer Complex $10,000 ID on Backstop at Championship Baseball Field $5,000 ID on Scoreboard at Championship Baseball Field $10,000 Publications/Collateral Material: ID on GLASA Web Site $33,204 ID on Lewisville Football Association Web Site $4,847 ID on Lewisville Baseball Association Web Site $8,855 Mentions in Lewisville Leader (100 mentions) $2,530 Mentions in Dallas Morning News (25 mentions) $18,416 Rights Fee Description Amount Face Value of Tangible and Intangible Benefits $175,701 Cost/Benefit Ratio 1.5 Subtotal $117,134 Total Estimated Annual Rights Fee (Rounded) $100,000 19

Soccer Valuation Tangible Benefits Benefit Description Total Value Guaranteed Sponsor ID in Non-Measured Media Off-Site Signage/ID: State Highway 121 Railroad Park Sign $1,041 Hebron Parkway Railroad Park Sign $655 On-Site Signage/ID: ID at the Entrance of Railroad Park $5,824 ID on the Back of Goal Nets $2,784 ID on Sideline Sandwich Board $2,784 ID at the Top of Each Set of Bleachers $2,784 ID on Wayfinding Signs at Railroad Park $5,824 ID at Soccer Complex Concession/Restroom Pavilion $2,784 Publications/Collateral Material: ID on GLASA Web Site $33,204 Rights Fee Description Amount Face Value of Tangible and Intangible Benefits $57,684 Cost/Benefit Ratio 1.5 Subtotal $38,456 Total Estimated Annual Rights Fee (Rounded) $40,000 20

Baseball Valuation Tangible Benefits Benefit Description Total Value Guaranteed Sponsor ID in Non-Measured Media Off-Site Signage/ID: State Highway 121 Railroad Park Sign $1,041 Hebron Parkway Railroad Park Sign $655 On-Site Signage/ID: ID at the Entrance of Railroad Park $5,824 ID on Outfield Fence at (4) Baseball Fields $20,000 ID at the Top of Each Set of Bleachers $743 ID on Wayfinding Signs at Railroad Park $5,824 ID at Baseball Complex Concession/Restroom Pavilion $743 Publications/Collateral Material: ID on Lewisville Baseball Association Web Site $8,855 Rights Fee Description Amount Face Value of Tangible and Intangible Benefits $43,682 Cost/Benefit Ratio 1.5 Subtotal $29,122 Total Estimated Annual Rights Fee (Rounded) $30,000 21

Football Valuation Tangible Benefits Benefit Description Total Value Guaranteed Sponsor ID in Non-Measured Media Off-Site Signage/ID: State Highway 121 Railroad Park Sign $1,041 Hebron Parkway Railroad Park Sign $655 On-Site Signage/ID: ID at the Entrance of Railroad Park $5,824 ID on Scoreboard at (4) Football Fields $20,000 ID at the Top of Each Set of Bleachers $499 ID on Wayfinding Signs at Railroad Park $5,824 ID at Football Complex Concession/Restroom Pavilion $499 Publications/Collateral Material: ID on Lewisville Football Association Web Site $4,847 Rights Fee Description Amount Face Value of Tangible and Intangible Benefits $39,189 Cost/Benefit Ratio 1.5 Subtotal $26,126 Total Estimated Annual Rights Fee (Rounded) $30,000 22

Skate Park Valuation Tangible Benefits Benefit Description Total Value Guaranteed Sponsor ID in Non-Measured Media Off-Site Signage/ID: State Highway 121 Railroad Park Sign $1,041 Hebron Parkway Railroad Park Sign $655 On-Site Signage/ID: ID at the Entrance of Railroad Park $5,824 ID at Entrance of Skate Park $933 ID on Wayfinding Signs at Railroad Park $5,824 ID at Skate Park Restroom/Vending Pavilion $933 ID at the Top of Bleachers $933 Rights Fee Description Amount Face Value of Tangible and Intangible Benefits $16,142 Cost/Benefit Ratio 1.5 Subtotal $10,761 Total Estimated Annual Rights Fee (Rounded) $10,000 23

Dog Park Valuation Tangible Benefits Benefit Description Total Value Guaranteed Sponsor ID in Non-Measured Media Off-Site Signage/ID: State Highway 121 Railroad Park Sign $1,041 Hebron Parkway Railroad Park Sign $655 On-Site Signage/ID: ID at the Entrance of Railroad Park $5,824 ID at Entrance of Dog Park $500 ID on Wayfinding Signs at Railroad Park $5,824 ID on Fence at Dog Park $500 Rights Fee Description Amount Face Value of Tangible and Intangible Benefits $14,343 Cost/Benefit Ratio 1.5 Subtotal $9,562 Total Estimated Annual Rights Fee (Rounded) $10,000 24

Pouring Rights Potential Revenue Based on industry trends, research of comparable facilities, and the attendance forecast, the value of pouring rights at Railroad Park is estimated to be worth approximately $30,000. The table below shows revenue potential if 5% / 7.5% / 10% of the approximately 400,000 visitors to the soccer, baseball/softball and football complexes were to purchase a soft drink at $2/cup. Revenue generated at 5% Revenue generated at 7.5% Revenue generated at 10% $40,000 $60,000 $80,000 25

Intangible Benefits Prestige of Property: Railroad Park is a 250 acre outdoor athletic complex and the largest capital project in the City of Lewisville s history. It will be the official home of Lewisville s youth soccer, baseball and football associations, as well as a 0.75 acre skate park and two dog parks that together comprise more than six acres. It will also host the international Panda Cup soccer event from 2010 2012 and the 2010 Texas Firefighter Olympics. Railroad Park s commitment to youth sports and promotion of an active lifestyle for its community carry a lot of goodwill. Recognizability / Awareness: As the largest capital project in Lewisville history and a destination for numerous athletic and recreational activities, Railroad Park will be highly visible within the local community and to a lesser extent throughout the entire Dallas Fort Worth Metroplex, the fourth largest metropolitan statistical area (MSA) in the United States. Railroad Park is also expected to attract out of town participants and spectators for various tournaments and events. Category Exclusivity: Package offers exclusivity within Sponsor s product/service category. Level of Audience Interest / Loyalty: Annual attendance at Railroad Park is projected to exceed more than a half million visitors, drawing football, baseball, softball and soccer participants, plus spectators, skateboarders, joggers, in line skaters, pet owners and other outdoor enthusiasts. Ability to Activate: Sponsor receives on site sampling, can pass through rights to third parties with prior approval, and has the right to conduct consumer research on site. 26

Intangible Benefits Limited Degree of Sponsor Clutter: The Sponsor will not share athletic complex naming rights status with any other sponsor. The athletic complex will be very clean. There may be some sponsor signs/banners present on outfield fences and an ID at the top of a scoreboard if another sponsor purchases the naming rights to an individual field. Non ambushibility of Property: Exclusivity extends to collateral, sampling/display, on site signage and official Web sites of each respective Lewisville youth sports association. Furthermore, ambush marketing at similar facilities is not common. Media Coverage Potential: It is anticipated that Railroad Park events would receive regular coverage in the twice weekly Lewisville Leader (circulation of 10,118) and occasional mentions in the Dallas Morning News (368,313) and local TV stations. Events at Railroad Park will also receive significant coverage on Lewisville s local access channel, which is viewed by 25% of Lewisville residents view at least once per month, according to a recent survey. Established Track Record: Although Railroad Park is a brand new athletic complex it has already attracted noteworthy events, such as a three year deal with the international Panda Cup soccer event, plus the 2010 Texas Firefighter Olympics. 27

Lewisville Center for the Creative Arts 28

Overview The new Lewisville Center for the Creative Arts, scheduled for a grand opening in 2011, includes a classic Proscenium theater, a black box theater, a multi purpose hall, an art gallery and five classrooms. The 297 seat Proscenium theater features a 2,200 square foot stage; a 50 foot fly loft; sounds, light and director booths; two multi station dressing rooms; two green rooms; a scene prep area; direct access to rehearsal areas; ticket/concession booths in the lobby; and a retractable movie screen. The 3,000 square foot black box theater will have 150 175 seats but can hold up to 270 seats. The room contains an 18 foot lighting grid, two dressing rooms, access to other dressing rooms and ticket/concession booths in the lobby. The multi purpose room is a 2,400 square foot room with dance bars, mirrors, access to dressing/green rooms and a wood floor. The classroom wing features five classrooms (560 square feet each), collapsible dividing walls and direct exterior access. This wing will be primarily used for studio art classes, with a focus on children. The gallery wing is a 2,400 square foot art gallery with adjustable display walls, reception and office space, and a hallway with art displays. The 13,000 square foot courtyard opens toward Charles Street and Old Town. It features landscaping, lighting, power sources and an arbor type covered walkway. The area is adaptable to many uses. 29

Comparables Estes Park Performing Arts Center Estes Park, CO (66 miles northwest of Denver) Auditorium with 433 climate controlled seats Lobby with concession stand and performance space for up to 50 people Men s and women s dressing rooms Two star dressing rooms Green room Seeking $2.5M for naming rights 30

Comparables Bank of America Theatre Richardson, TX 368 seat auditorium Part of Charles W. Eisemann Center for Performing Arts and Corporate Presentations, which includes the 1,500 seat Hill Performance Hall Countrywide (now Bank of America) paid $750,000 in 2005 for naming rights in perpetuity to the 368 seat auditorium Countrywide also paid $500,000 for naming rights to the banquet hall at the Eisemann Center 31

Sponsorship Opportunities Available List of Assets Performing Arts Center Proscenium Theater Black Box Theater Multi Purpose Hall Classroom Wing Art Gallery Courtyard Name A Seat (Proscenium Theater) Quotes in Stained Concrete 32

Sponsorship Opportunities Asset Performing Arts Center Proscenium Theater Black Box Theater Multi Purpose Hall Art Gallery Courtyard Classroom Wing *Proscenium Name a Seat (297 at $150) *Quotes in Stained Concrete (36 at $400) Total revenue potential Conservative $50,000 15,000 15,000 5,000 5,000 5,000 5,000 44,550 14,400 $153,950 Aggressive $100,000 25,000 25,000 7,500 7,500 7,500 7,500 44,550 14,400 $238,950 *Denotes opportunities that are a one time revenue; all other opportunities are listed on an annual basis. 33

Western Day 34

Overview Lewisville s highly successful Western Day festival is held annually on a Saturday in late September, although there are currently talks about the possibility of making the event into a two day festival. The family oriented, western themed event takes place in Old Town Lewisville and showcases the city s rich history. Festival stages feature live country music and entertainment while festival goers partake in the unique arts and crafts vendors, gunfight re enactments, trick ropers, Tailwaggers Ranch, antique car show, national tamale eating championship and longhorn cattle drive. Children s activities include a petting zoo, playland area, face painting, sketch artists and more. Eli Young Band played in 2008, and Western Day had its largest turnout ever with a crowd of 25,000. Western Day followed up strong in 2009 with an attendance of 19,600, the second largest crowd ever. 35

Comparable Events Mesquite s Real Texas Festival Overview Attractions Mesquite, TX (Population: 136,000) Two day festival held each April since 2007 Mesquite Championship Rodeo Musical acts Battle of the bands Car show Attendance Three year average is approximately 17,000 Attendance in 2009 was 23,000 Projected attendance in 2010 is 25,000 to 30,000 Sponsorships Title sponsor, plus 3 to 4 official sponsors Sponsorship revenue has averaged approximately $75,000 the first three years Sponsorship revenue projected to exceed $135,000 for 2010 Title sponsor accounts for 20% to 25% of all sponsorship revenue Official sponsors account for most of remaining sponsorship revenue 36

Sponsorship Opportunities Asset Title Sponsor Premier Sponsors (3 at $12,500 each) Distinguished Sponsors (3 at $7,500 each) Total revenue potential Value $25,000 37,500 22,500 $85,000 Title Sponsor package includes exclusive presenting sponsor status at Western Day, plus category exclusivity, plus naming rights to one of the following activities: the main stage, community stage, parade, children s area, tree lighting ceremony and food court. Premier Sponsor opportunities include category exclusivity, plus naming rights to one of the following activities: the main stage, community stage, parade, children s area, tree lighting ceremony and food court. Distinguished Sponsor opportunities include category exclusivity, plus naming rights to one of the following activities: Tailwaggers Ranch, Antique Car Show, Gunfighter Re enactments, World Tamale Eating Championship, Parking Shuttle, Classic Looks Quilt Show, Artist Showcase and Petting Zoo. 37

Marketing Plan 38

Marketing Plan To maximize participation from the private sector and achieve the revenue objective the following strategies will be pursued: 1. Strategic sequencing of sales program is imperative. By selectively selling inventory corporate participation will be enhanced. Every sales step should be communicated as an essential component to guarantee the success of the properties. 2. Naming rights to each property need to be put on the market as soon as possible with a goal of securing partners prior to selling additional inventory. The sale of naming rights has to be communicated as a musthave for the projects to be successful. Positioning the naming rights package this way allows companies to step up and become White Horses in Lewisville. The successful sale of naming rights demonstrates interest in the new projects and gives us the opportunity to enlist the support of the new partners in ongoing marketing efforts. 3. Use the sale of the naming rights to create urgency to purchase sponsorship packages. 4. Market customized sponsorships to companies as the most cost effective medium to reach customers and receive repeated exposure to large audiences. 39

Marketing Plan Customized packages will be developed for each prospect that includes signage / visibility, media promotions, and amenities. The prices for each package will vary depending on the level of participation and the amount of signage, media, promotions and amenities included. Produce and distribute strong promotional piece for naming rights and sponsorships. Current sponsors (Western Day) Local, regional and national companies Schedule on site visits to review sponsorship opportunities. CSLMG will look at offering multiple levels of sponsorships for each property and will look to create packages combining opportunities with two or more properties. The objective of sponsorships at one or more of the properties is to: 1. Increase brand name visibility and awareness 2. Enhance community relevance 3. Reinforce brand image in the marketplace by utilizing sports and fitness as a platform 4. Provide meaningful, relevant business building promotional tie in opportunities 5. Increase goodwill with the contribution to the quality of life for Lewisville 6. Further evidence of each companies commitment to the community and its position as a local and regional corporate leader 7. Create revenue generating marketing platform 40

Founders Partnership 41

Founders Partnership The Founders Partnership will be a unique opportunity available to a select number of organizations four to eight. The program will be designed to spotlight each Founders Partner as an organization that has made a commitment to the City of Lewisville as well as having a vested interest in the community and future of Lewisville. Founders Partners must commit to a minimum annual payment (TBD) as well as a minimum term (five years). The packages will include entitlement to a signature space at Railroad Park, Performing Arts Center and Western Day, a major presence on the City of Lewisville Web site, significant signage at all three properties and special recognition, as well as additional opportunities, including pouring rights, preferred pour (malt beverages only at Western Day) and special events, such as Holiday at the Hall. In order to accomplish our objectives, CSL Marketing Group will create a turnkey corporate partner approach that incorporates the following: 1.Entitlement (i.e., title sponsorship to a signature space; the signature space is a branded area that includes significant signage, display and opportunities for promotions 2.On premise advertising 3.Promotions (i.e., activation at Railroad Park, Performing Arts Center or Western Day) 4.Additional benefits (i.e., company event at Railroad Park) 5.Amenities 42

Summary 43

Summary Below is the summarized total valuation of three properties Railroad Park, Performing Arts Center and Western Day. However, the table at right shows the expected revenue that can be generated from the sale of sponsorship assets pertaining to these properties. Railroad Park: CSL Marketing Group (CSLMG) values the total revenue potential at $250,000, with $100,000 coming from the naming rights to the athletic complex. Performing Arts Center: CSLMG values the revenue potential of all previously identified sponsorship assets to be a range from $153,950 (conservative) to $203,950 (aggressive). Western Day: CSLMG values the revenue potential of all sponsorship assets at $85,000. In conclusion, Railroad Park, Performing Arts Center and Western Day have a total revenue potential of $528,950. 44

Next Steps / Issues 45

Next Steps / Issues Following are the next steps and issues to review: Develop collateral / presentation materials March 1 15 Create sponsorship agreements March 1 15 Target prospects March 15 and beyond Sales execution March 15 and beyond Manage contract execution March 15 and beyond 46