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HomeMy WebLinkAboutPACKET Town Board Study Session 2013-01-22* Revised NOTE: The Town Board reserves the right to consider other appropriate items not available at the time the agenda was prepared. STUDY SESSION TOWN BOARD Tuesday, January 22, 2013 4:30 p.m. Rooms 202/203 170 MacGregor Ave. AGENDA 4:30 p.m. Stall Barn/MPEC Bids. MPEC Draft Pro Forma. 5:30 p.m. Break for Dinner 5:45 p.m. Transportation Grants. Future Study Session Agenda Items. 6:30 p.m. Meeting Adjourn PUBLIC WORKS Report To: Honorable Mayor Pinkham Board of Trustees Town Administrator Lancaster From: Scott Zurn, PE, Public Works Director Date: January 22, 2013 RE: Stall Barn/MPEC Bids Background: Per Town Board direction, staff proceeded to bid both the proposed Stall Barn and the proposed Multipurpose Event Center, with the bid opening held on January 15th, 2013. Both building designs were developed with the Board’s involvement and input and are consistent with the Master Plan of the northwest quadrant of the Stanley Fairgrounds, which was completed in the summer of 2012.The following tabulation shows schedule A (the MPEC base bid only), schedule B (the Stall Barn base bid only), and Schedule C (both combined including alternates). Again, the presented numbers are for buildings only and do not include offsite required improvements. See attached bid comparison for more detail. BIDDER Schedule A MPEC Schedule B Stall Barn Schedule C Schedule A MPEC and Schedule B Stall Barn including Alternates Dohn Construction, Inc.* $3,629,000.00 $1,464,000.00 $5,171,500.00 Heath Construction $3,870,000.00 $1,517,000.00 $5,481,000.00 Taylor Kohrs LLC $3,955,513.00 $1,634,205.00 $5,714,518.00 Krische Construction, Inc. $4,071,000.00 $1,598,000.00 $5,741,000.00 Sampson Construction Co., Inc. $4,187,000.00 $1,715,000.00 $5,988,400.00 McCauley Constructors, Inc. $4,239,600.00 $1,622,500.00 $5,797,400.00 Buildings by Design LLC $4,982,985.00 $1,840,224.00 $6,823,289.00 Growling Bear Co., Inc. $5,300,000.00 $2,136,000.00 $7,621,700.00 *Apparent Low Bidder for Base Bids.     Based on the apparent low bidder, Public Works recommends the following budget allocations if the Town Board chooses to proceed with awarding the project. 1. Stall Barn ( base bid only) A. Building only $1,464,000.00 B. Sidewalks, Drives and minor grading $ 67,000.00 10 % contingency $ 153,000.00 Total Stall Barn $1,684,000.00 2. MPEC A. Building only $3,629,000.00 B. Sidewalks, Drives and minor grading $ 139,000.00 C. Offsite turn lanes $ 250,000.00 10 % contingency $ 400,000.00 Total MPEC $4,418,000.00 3. MPEC & Stall Barn (with alternates) D. Buildings only $5,171,550.00 E. Sidewalks, Drives and minor grading $ 206,000.00 F. Offsite turn lanes $ 250,000.00 10 % contingency $ 560,000.00 Total MPEC & Stall Barn $6,187,550.00 As a reminder, the MPEC design is grandfathered under the 2003 codes only until March of 2013. If the project is not awarded by this date, the project will have to be redesigned to the 2009 codes and re-bid. Stanley Park Fairgrounds Stall Barn and MPEC - Bid ComparisonBid Opening January 15, 2013BIDDER Schedule A MPECSchedule B Stall BarnAdd Alternate B.1 CupolasAdd Alternate B.2 Wood Trim and Truss AccentsAdd Alternate B.3 Restroom Interior FinishesAdd Alternate B.4 Public Address SystemTotal of Schedule B Stall Barn Including Alternates Schedule C Schedule A MPEC and Schedule B Stall Barn including Alternates Bid Bond Dohn Construction, Inc.* 3,629,000.00$ 1,464,000.00$ 32,000.00$ 33,000.00$ 11,000.00$ 28,500.00$ 1,568,500.00$ 5,171,500.00$ xHeath Construction 3,870,000.00$ 1,517,000.00$ 52,750.00$ 30,500.00$ 15,000.00$ 25,000.00$ 1,640,250.00$ 5,481,000.00$ xTaylor Kohrs LLC 3,955,513.00$ 1,634,205.00$ 56,458.00$ 22,058.00$ 11,004.00$ 35,280.00$ 1,759,005.00$ 5,714,518.00$ xKrische Construction, Inc. 4,071,000.00$ 1,598,000.00$ 21,100.00$ 12,900.00$ 15,000.00$ 23,000.00$ 1,670,000.00$ 5,741,000.00$ xSampson Construction Co., Inc. 4,187,000.00$ 1,715,000.00$ 62,000.00$ 44,000.00$ 13,000.00$ 40,000.00$ 1,874,000.00$ 5,988,400.00$ xMcCauley Constructors, Inc. 4,239,600.00$ 1,622,500.00$ 53,300.00$ 23,600.00$ 13,900.00$ 29,100.00$ 1,742,400.00$ 5,797,400.00$ xBuildings by Design LLC 4,982,985.00$ 1,840,224.00$ 59,304.00$ 13,238.00$ 6,354.00$ 16,885.00$ 1,936,005.00$ 6,823,289.00$ xGrowling Bear Co., Inc. 5,300,000.00$ 2,136,000.00$ 70,000.00$ 61,500.00$ 24,200.00$ 30,000.00$ 2,321,700.00$ 7,621,700.00$ x*Apparent Low Bidder for Base Bids.     Town Board Study Session  January 22, 2012  Item 1 ‐ Stall Barn / MPEC Bids    I. Financial Picture  ‐ Frank  2.  Bid Results ‐ Scott and Bo   Bid Results   How this compares to estimates   What's included, what is not included   Building Code issue  3.  MPEC Draft Proforma ‐ Lowell   Direct costs   Indirect benefit to the town  4. Financing ‐ Steve     Financial Background – 2013 Adopted Budget Board Discussion of Stall Barns and MPEC  January 22, 2013 Available General Tax  Beginning Balance   2013 Revenues   2013 Expenses  Net Available before reserves 25% Operating Reserve Available funds                     General Fund  $ 5,075,776    $ 11,726,873.0  $  13,078,564  $ 3,724,085   $3,269,641.0  $   454,444  Community Services Fund  $  169,110    $2,657,813.0    $  2,577,468    $  249,455    $ 158,117.0    $ 91,338  Community Reinvestment Fund  $ 2,350,665    $  5,015,289.0    $  5,600,000    $ 1,765,954  n/a  $   1,765,954   $  5,739,494.0   $   3,427,758.0   $ 2,311,736    Financial Background – 2013 Adopted BudgetgBoard Discussion of Stall Barns and MPECAvailableGeneralTaxBeginningBalanceAvailable General TaxBeginning Balance GeneralFund$5 075 776General Fund$5,075,776 Community Services Fund $169,110 Community Reinvestment Fund $2,350,665  Financial Background – 2013 Adopted BudgetgBoard Discussion of Stall Barns and MPECAilblGlT2013RAvailable General Tax2013RevenuesGeneralFund$11 726 873General Fund$       11,726,873Community Services Fund $         2,657,813CommunityReinvestmentFund$5,015,289Community Reinvestment Fund$         5,015,289 Financial Background – 2013 Adopted BudgetgBoard Discussion of Stall Barns and MPECAilblGlT2013OEAvailable General Tax2013 OpExpensesGeneralFund$13 078 564General Fund$13,078,564 Community Services Fund $2,577,468 CommunityReinvestmentFund$5,600,000Community Reinvestment Fund$5,600,000  Financial Background – 2013 Adopted BudgetgBoard Discussion of Stall Barns and MPECAilblGlTNAilblAvailable General TaxNet Available(before reserves)GeneralFund$3 724 085General Fund$ 3,724,085 Community Services Fund $ 249,455 CommunityReinvestmentFund$1,765,954Community Reinvestment Fund$ 1,765,954 $ 5,739,494 Financial Background – 2013 Adopted BudgetgBoard Discussion of Stall Barns and MPECAilblGlT25%OiAvailable General Tax25% OperatingReservesGeneralFund$3 269 641 0General Fund$   3,269,641.0 Community Services Fund $       158,117.0 CommunityReinvestmentFundn/aCommunity Reinvestment Fundn/a$   3,427,758.0  Financial Background – 2013 Adopted BudgetgBoard Discussion of Stall Barns and MPECAilblGlTAilblAvailable General TaxAvailable Unencumbered FundsGeneralFund$454 444General Fund$  454,444 Community Services Fund $ 91,338 CommunityReinvestmentFund$1,765,954Community Reinvestment Fund$   1,765,954 $ 2,311,736  Financial Background – 2013 Adopted BudgetgBoard Discussion of Stall Barns and MPECBii20132013Net Available bf25%OiAvailable General TaxBeginning Balance 2013 Revenues 2013 Expenses before reserves25% Operating Reserve Available fundsGeneral Fund $  5,075,776 $11,726,873.0 $13,078,564 $ 3,724,085 $   3,269,641 $  454,444 CiSiCommunity Services Fund $ 169,110 $ 2,657,813.0 $ 2,577,468 $249,455 $       158,117 $  91,338 Community Reinvestment Fund $ 2,350,665 $ 5,015,289.0 $  5,600,000 $ 1,765,954 n/a $ 1,765,954 $ 5,739,494 $   3,427,758.0 $ 2,311,736 $,,$,,$,, Administration Memo To: Honorable Mayor Pinkham Board of Trustees Town Administrator Lancaster From: Lowell Richardson, Assistant Town Administrator Date: 01/22/2012 RE: MPEC Draft Pro Forma Background: Johnson Consulting was retained to conduct an economic and feasibility study for the development of a Multi-Purpose Event Center (MPEC) at Stanley Fairgrounds. Johnson Consulting was asked to present their findings in a Pro Forma style report. The report was intended to identify operating costs, revenues and economic benefits to the community and identify what the economic viability of an MPEC would be to the Estes Park community. For the purposes of the study session staff is presenting the Pro Forma Draft document prepared by Johnson Consulting to the Town Board for discussion and any follow up work the Board would like completed before Johnson Consulting presents the final report to the Town Board at a regular meeting. The Johnson Consulting Group’s report is comprised of seven primary components; economic and demographic analysis, industry trends, comparable facilities analysis, interviews and demand potential, economic and fiscal impact analysis, program recommendations and projections and final recommendations. A brief review of the financial analysis of the facility assumes the following for the first five years if built: MPEC Operations 2015 2016 2017 2018 2019 Estimated Revenues $562,520 $599,073 $635,376 $701,080 $757,068 Expenses/Replacement ($721,864) ($749,794) ($776540) ($812,623) ($896,955) Net Income ($159,344) ($150,721) ($141,164)($111,543) ($139,887) Excluding debt service it is projected the MPEC would operate at a negative balance for the first ten years of operation and most likely beyond that time frame. However, it is estimated the return on investment through sales tax revenues generated would cover those negative expenses as reported in the Economic and Fiscal Impact Analysis section: Estimated Sales Tax Generated Tax Rate Taxable Spending Tax Revenues Generated Town Sales Tax 4% $19,556,000 $782,000 Lodging Tax 2% $19,556,000 $45,000 The estimated taxable spending generated by the MPEC would result in collected sales tax for the Town of $782,000 annually and $45,000 annually for the Local Marketing District. This financial snapshot demonstrates Johnson Consulting’s estimations of the economic and financial impacts to the Town if the facility is built. This model is similar to the business model of the Conference Center when it was constructed. The facility itself would operate in the negative but the economic multipliers of lodging, retail spending and restaurant spending generated through sales tax would recover those net operating losses. Staff Recommendation: After review and comments staff would recommend a final report presentation by Johnson Consulting to the Town Board at a regular Town Board meeting and that would include actual debt service ratios based on the bids recently received by the Town’s Public Works Department. DRAFT Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds SUBMITTED TO Town of Estes Park SUBMITTED BY C.H. Johnson Consulting, Incorporated January 14, 2013 DRAFT DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com TABLE OF CONTENTS SECTION I TRANSMITTAL LETTER SECTION II INTRODUCTION AND EXECUTIVE SUMMARY…...............……………….……….....1 SECTION III ECONOMIC AND DEMOGRAPHIC ANALYSIS.....………………………….…………..13 SECTION IV INDUSTRY TRENDS……………….….…………………………………………….……...31 SECTION V COMPARABLE FACILITIES ANALYSIS….……………………………….…..………......49 SECTION VI INTERVIEWS SUMMARY AND DEMAND POTENTIAL.........……………….………....71 SECTION VII PROGRAM RECOMMENDATIONS AND PROJECTIONS……….……………..………..84 SECTION VIII ECONOMIC AND FISCAL IMPACT ANALYSIS…………………………………………...100 SECTION IX FEASIBILITY STUDY CONCLUSION………………...………………………………….....109 DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com SECTION I TRANSMITTAL LETTER DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com January 14, 2013 Mr. Lowell Richardson Assistant Town Administrator Town of Estes Park, Administration Department P.O. Box 1200 Estes Park, CO 80517 lrichardson@estes.org Re: DRAFT Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO Dear Mr. Richardson: Johnson Consulting is pleased to submit this draft report to the Town of Estes Park regarding the proposed Multi-Purpose Event Center at Stanley Park Fairgrounds. Pursuant to Johnson Consulting’s engagement with the Town of Estes Park, this draft report provides an analysis of the economic and demographic characteristics of Estes Park and the broader region; reviews trends in the fairgrounds and meetings industry; identifies and analyzes key characteristics of competitive and comparable venues; summarizes key observations from interviews with potential users; provides facility program recommendations; provides an assessment of the feasibility of the proposed Multi-Purpose Event Center, including demand and financial projections; and analyzes the economic and fiscal impacts of the proposed development. Johnson Consulting has no responsibility to update this report for events and circumstances occurring after the date of this report. The findings presented herein reflect analyses of primary and secondary sources of information. Johnson Consulting used sources deemed to be reliable, but cannot guarantee their accuracy. Moreover, some of the estimates and analyses presented in this study are based on trends and assumptions, which can result in differences between the projected results and the actual results. Because events and circumstances frequently do not occur as expected, those differences may be material. This report is intended for the clients’ internal use and cannot be used for project underwriting purposes without Johnson Consulting’s written consent. We have enjoyed serving you on this engagement and look forward to providing you with continuing service. Sincerely, C.H. JOHNSON CONSULTING, INC. DRAFT CHARLES H. JOHNSON IV, PRESIDENT DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com SECTION II INTRODUCTION AND EXECUTIVE SUMMARY DRAFT 1 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 2 Introduction and Executive Summary | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 1 INTRODUCTION Situated approximately 70 miles to the northwest of Denver, on Lake Estes, the Town of Estes Park is located at the eastern entrance to Rocky Mountain National Park. Estes Park is an energetic and dynamic community, known for its abundance of outdoor recreational offerings and the high quality of life that is provided to both residents and its 2 million annual visitors. The Town also features a vibrant downtown shopping district that offers a variety of restaurants and lodging facilities. PROJECT DESCRIPTION AND VISION Johnson Consulting was retained by the Town of Estes Park to prepare a market and financial feasibility study pertaining to a proposed Multi-Purpose Event Center at Estes Park. Situated in downtown Estes Park, to the south of Lake Estes, the Stanley Park Fairgrounds relates to a 42-acre site featuring 582 horse stalls, 5 “arenas”, 18,230 square feet of covered exhibition space, and a grandstand with capacity for 2,700 spectators. The 15,836 square foot Barn W is one of the most utilized, year-round facilities at the Fairgrounds. It is envisaged that a new Multi-Purpose Event Center would support the Fairground’s summer use, which has a strong equestrian and livestock event orientation, and also serve as a year-round facility for a variety of shows, events of all types, sports, and other indoor uses. This could provide a more diversified revenue stream and operating profile for the overall complex, by allowing the Fairgrounds to host current events better and attract new business to the market. The overall goal is to expand the season for demand, add more tourism, help hotel and retail establishments attract more business, and help increase sales tax collections. The initial development program for the proposed Multi-Purpose Event Center, as prepared by Kenney and Associates Architects, includes 26,929 square feet of contiguous multi-purpose events space, along with two conference rooms of 471 and 507 square feet, and additional support facilities. This is part of a larger masterplan that includes almost four times this first phase of development. OBJECTIVES In order to assess the opportunity for a new Multi-Purpose Event Center at Stanley Park Fairgrounds, Johnson Consulting prepared a financial feasibility study, with a focus on addressing the following framework questions: 1. Market and Industry Potential: Who will utilize the facility and what are their needs, desires and expectations? Which existing and proposed venues will the facility compete with, or complement? What is the overall market potential of the proposed facility? 2. Program Considerations: If a facility is warranted, what size should the facility be? What physical attributes should the facility have? What is the facility’s optimal configuration to capitalize on the market trends? DRAFT 2 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 2 Introduction and Executive Summary | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 2 3. Operations: How will the facility operate from a demand and financial perspective, as well as from a management and business-planning standpoint? 4. Impacts: What will be the economic impact of the facility on the Estes Park marketplace and the broader region? What fiscal impacts will the facility have? The key objective of this analysis is to provide Client representatives with recommendations relating to appropriate program elements, an estimate of demand, a projection of financial operations, and an indication of the economic and fiscal impacts of the project. With this information in hand, the Client group can then begin addressing an operational business plan. METHODOLOGY In order to complete the analysis required for this project, Johnson Consulting performed the following tasks: 1. Interviewed and surveyed various Client representatives, event facility operators and managers, hotel managers and operators, and independent concert and event promoters, along with other relevant representatives, in order to gather information about expectations for the proposed project. 2. Examined and projected regional economic and demographic trends that may influence demand for the proposed venue. 3. Analyzed current and expected future trends in the fairgrounds and meetings industry, including locations, event types, and event attributes. 4. Identified and examined relevant competitive and comparable facilities, regionally and nationally. 5. Developed recommendations regarding the optimum size and mix of spaces for the new Multi- Purpose Event Center. 6. Projected future demand for the proposed venue, in terms of annual events and attendance. 7. Utilized proven local, regional, and national formulas to forecast revenue and expense models. 8. Projected the economic and fiscal impacts of the proposed venue. EXECUTIVE SUMMARY The proposed Multi-Purpose Event Center at Stanley Park Fairgrounds presents a unique and appropriate opportunity to capitalize on a number of key characteristics of the location and the local and regional economies, including: DRAFT 3 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 2 Introduction and Executive Summary | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 3  A lack of multi-purpose space in the surrounding local and regional areas.  Existing demand that could grow if better facilities were provided.  Easy access to the site, via the established road network.  Location within a tourism-based community.  Possible association with The Ranch, a sister property in the same county, which would help on marketing and equipment sharing.  Strategic location at the gateway to Rocky Mountain National Park and abundant recreational opportunities.  Adjacency to sports complex, which could be used to help attract indoor sports competitions to the new Multi-Purpose Event Center.  A good number of hotel rooms that need more demand.  A need for tourism demand drivers during the non-peak season.  Strong community interest in developing a new facility. These factors, along with many others, provide a strong case for the development of a Multi-Purpose Event Center at Stanley Fairgrounds. Johnson Consulting is of the opinion that the proposed facility, if targeted and marketed appropriately, has the potential to become a real focal point in the community, enhancing the overall role and contribution of the Fairgrounds to the local and regional economies by creating a year-round venue that fills a void in the marketplace. We do agree with management that the equestrian niche is viable for expansion. We also expect special events, consumer shows and hotel marketed events to use the complex, particularly during the non-peak season. COMPARABLE FACILITIES The following table summarizes the key attributes of the comparable facilities identified as part of this analysis. DRAFT Section 2 Introduction and Executive Summary | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 4 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Table 2 - 1 Key Characteristics of Regional Facilities and Markets - Fairgrounds Proposed Multi-Purpose Events Center The Ranch Events Complex (Larimer County Fairgrounds) Douglas County Fairgrounds & Events Center Eagle County Fairgrounds La Plata County Fairgrounds & Events Center Puyallup Fair & Events Center Location Location Estes Park, CO Loveland, CO Castle Rock, CO Eagle, CO Durango, CO Puyallup, WA Metropolitan Area Fort Collins-Loveland Fort Collins-Loveland Denver Edwards Durango Seattle-Tacoma-Bellevue Demographic Characteristics (2012) Metroplitan Area Population 306,080 306,080 2,611,271 60,112 52,142 3,503,118 Median Age (Years)36.0 36.0 36.0 35.0 39.0 37.0 Median Household Income $58,422 $58,422 $61,079 $69,537 $57,791 $68,121 Facilities (SF) Function Space 29,929 SF 36,000 SF & 12,500 SF Exhibition Halls; 7,200-seat Bud Events Center 29,000 SF Events Center; 4,800 SF Hall 5,000 SF Exhibit Hall 10,000 SF Exhibit Hall 84,972 SF Americraft ShowPlex; 45,200 SF Pavilion; 19,500 SF Expo Hall;2,800 SF Fair View Club; 13,400 SF Centennial Building; 5,265 SF Fair Farm; 12,354 SF Restaurant Building Meeting Rooms(s)978 SF 5,760 SF + Larimer Conference Center (96,000 SF) 3,300 SF Conference Room -5 Meetring Rooms (5,270 SF)12,768 SF Arena(s)Existing Arenas On-Site 2 Outdoor Arenas (Dirt)1 Indoor Arena (Dirt); 1 Outdoor Arena (Dirt) 32,500 SF Eagle River Center (Indoor Arena with Dirt Floor); 1 Outdoor Arena (Dirt) 1 Outdoor Arena (Dirt) 1 Outdoor Arena (Dirt/Grass); 25,000 SF Indoor Arena (Dirt); 18,696 SF Open-Air Covered Arena (Dirt/Asphalt) Other (Barns/Pavilions etc.) Proposed Barns in Subsequent Phases; Adjacent Sports Complex 4 Pavilions 2 Barns; Pavilion - 33,000 SF Pavilion; 2 Baseball Field; Outdoor Recreation Space Barn Complex; 5-acres of Landscaped Grounds (SillyVille) Events and Attendance # Events (per annum)Refer to Demand Projections 2,268*126 124 388 145 Total Attendance (per annum)Refer to Demand Projections -10,000+-1.6 million Revenue and Expenses Net Income (Loss) ($'000s) - Most Recent Year Refer to Financial Projections ($635)($1,000)--$1,300 Source: Relevant Facilities, Statistics Canada, Demographics Now, JohnsonConsulting * Total bookings including move in and move out days DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 2 Introduction and Executive Summary | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 5 Each of the facilities profiled above were developed in response to a community’s desire to generate significant benefits for local and regional economies, to stimulate year-round tourism, and for urban renewal purposes. Although there is significant variation in the size, orientation, and role that each of these facilities play in their communities, most are firmly grounded in their mission to encourage agricultural advancement and demonstrate how a simple fair/rodeo operation can evolve into a year round exhibition and tradeshow destination with the right facilities and leadership. FACILITY RECOMMENDATIONS Based upon our assessment of the market opportunity for the proposed Multi-Purpose Event Center, our analysis of competitive and comparable facilities, and budget considerations, it is our opinion that the Town’s proposed development program should be implemented as follows:  Multi-Purpose Room: 26,929 square feet of flexible space, offering a concrete floor, and divisible into numerous smaller sections.  Meeting Rooms: 978 square feet of meeting and breakout space, in two separate conference rooms.  Additional Support Facilities: 628 square feet of office space, 346 square foot concession/ catering kitchen, restrooms, and other storage and support amenities. Although in our considered opinion there is an opportunity to support a larger venue at the Fairgrounds, the Multi-Purpose Event Center, as proposed, will serve the market well, particularly given budget considerations and the existing inventory of hotel meeting space in the marketplace. Consideration should be given to adding more meeting and breakout space, however not at the expense of exhibit space. Expansion should be contemplated, as referenced in the facility masterplan. We also suggest making the concourse somewhat wider. Not analyzed by us is the proposed technology platform. This is important and should be of a competitive quality allowing for WIFI, and good cell phone service. DEMAND PROJECTION The proposed Multi-Purpose Event Center will be designed to be sufficiently flexible to accommodate the needs of numerous diverse entities. The following table summarizes the projected event schedule, by event type, for the proposed Multi-Purpose Event Center over a 10-year period from 2015, which is assumed to be the first full year of operation of the facility. DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 2 Introduction and Executive Summary | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 6 Table 2 - 2 The Multi-Purpose Event Center is projected to host 100 events in 2015 (Year 1), of which 35 events are projected to be Exhibition Events and 65 events are projected to be Cultural and Social Events. The following table shows projected attendance at the proposed Multi-Purpose Events Center from 2015 through 2024. Table 2 - 3 Total attendance is projected to be 101,600 persons in 2015, increasing to 134,200 persons in 2019. Attendance is projected to increase with increases in the number of events, as shown in the previous table, but average attendance at individual events is also projected to increase year-on-year. As such, when the event schedule remains steady, as is assumed beyond 2019 (Year 5), total attendance is still projected to increase slightly. Our figures do not include people days, or attendees that come to the venue on multiple days for one event, which may be included in visitor counts at other venues. Event Type 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Exhibition Events Tradeshows, Equestrian & Competitive Arts 15 16 17 18 19 19 19 19 19 19 Consumer & Specialty Shows, & Festivals 20 21 22 23 24 24 24 24 24 24 Sub-total Exhibition Events 35 37 39 41 43 43 43 43 43 43 Cultural and Social Events Meetings & Seminars 15 16 17 18 19 19 19 19 19 19 Banquets 15 16 17 18 19 19 19 19 19 19 Concerts, Entertainment & Sporting Events 20 21 22 23 24 24 24 24 24 24 Other/ Civic Events 15 16 17 18 19 19 19 19 19 19 Sub-total Cultural and Social Events 65 69 73 77 81 81 81 81 81 81 Total 100 106 11 2 11 8 124 124 124 124 124 124 Source: Johnson Consulting Projected Events at Proposed Multi-Purpose Event Center Event Type 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Exhibition Events Tradeshows, Equestrian & Competitive Arts 12,500 13,300 14,100 15,200 16,400 16,700 17,100 17,500 17,900 18,300 Consumer & Specialty Shows, & Festivals 34,000 40,700 42,700 45,200 47,700 48,300 48,900 49,400 50,100 51,100 Sub-total Exhibition Events 46,500 54,000 56,800 60,400 64,100 65,000 66,000 66,900 68,000 69,400 Cultural and Social Events Meetings & Seminars 3,000 3,200 3,400 3,600 3,800 3,800 3,800 3,800 3,800 3,800 Banquets 4,500 4,800 5,100 5,600 6,100 6,300 6,500 6,700 6,800 7,000 Concerts, Entertainment & Sporting Events 34,800 36,500 38,300 40,800 43,500 44,400 45,200 46,100 47,000 48,000 Other/ Civic Events 12,800 13,600 14,500 15,600 16,700 17,000 17,400 17,800 18,100 18,500 Sub-total Cultural and Social Events 55,100 58,100 61,300 65,600 70,100 71,500 72,900 74,400 75,700 77,300 Total 101,600 11 2,100 11 8,100 126,000 134,200 136,500 138,900 141,300 143,700 146,700 Source: Johnson Consulting Projected Attendance at Proposed Multi-Purpose Event Center DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 2 Introduction and Executive Summary | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 7 OPERATING PROJECTION The following table presents a summary of the projected operating statement for the first 10 full years of operation of the Multi-Purpose Event Center. Revenues include all revenues that can be used for operations. Expenses are categorized into two groups – 1) Direct Operating Expenses, which are expenses related directly to the operation of, and demand, for the facility and vary depending on the volume of activity, and 2) Indirect Expenses, which are incurred regardless of the level of activity at the facility. All revenues and expenses are inflated at a 2.5 percent annual rate. DRAFT Section 2 Introduction and Executive Summary | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 8 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Table 2 - 4 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Revenue Event Revenue Space Rental --$214,821 $226,801 $238,780 $269,594 $290,927 $298,238 $304,207 $310,329 $316,594 $322,895 Net Food and Beverage --205,263 223,635 241,536 265,415 290,857 303,881 317,805 332,234 347,494 363,429 Equipment Rentals --44,754 48,431 52,264 60,484 66,902 70,298 73,497 76,851 80,362 84,011 Event Services --1,432 1,550 1,672 1,935 2,141 2,250 2,352 2,459 2,572 2,688 Advertising Revenue --56,250 57,656 59,098 60,575 62,089 63,642 65,233 66,864 68,535 70,249 Proposed Multi-Purpose Event Center - Pro Forma Operating Statement of Revenue and Expenses (Inflated Dollars) Other Revenue --40,000 41,000 42,025 43,076 44,153 45,256 46,388 47,547 48,736 49,955 Land Lease Income Grant Income Total Operating Revenue $0 $562,520 $599,073 $635,376 $701,080 $757,068 $783,565 $809,481 $836,284 $864,293 $893,226 Direct Operating Expenses Contract Services --63,060 68,572 74,044 82,585 90,749 94,973 99,316 103,832 108,594 11 3,559 Utilities --120,000 123,000 126,075 129,227 132,458 135,769 139,163 142,642 146,208 149,864 Maintenance & Repairs --42,964 46,494 50,174 58,065 64,226 67,486 70,557 73,777 77,148 80,650 Supplies --7,161 7,749 8,362 9,677 10,704 11 ,248 11 ,760 12,296 12,858 13,442 Other Expenses --540 580 630 730 800 840 880 920 960 1,010 Sub-total Operating Expenses $0 233,724$ 246,395$ 259,285$ 280,284$ 298,937$ 310,315$ 321,676$ 333,467$ 345,768$ 358,524$ Indirect Expenses Salaries and Wages --230,000 235,750 241,644 247,685 253,877 260,224 266,729 273,398 280,233 287,238 Employee Benefits --57,500 58,938 60,411 61,921 63,469 65,056 66,682 68,349 70,058 71,810 Sales and Marketing --50,000 51,250 52,531 53,845 55,191 56,570 57,985 59,434 60,920 62,443 General and Administrative --40,000 41,000 42,025 43,076 44,153 45,256 46,388 47,547 48,736 49,955 Insurance --40,640 45,961 49,632 54,275 59,253 61,775 64,433 67,185 70,034 73,283 Other Expenses 500,000 20,000 20,500 21,013 21,538 22,076 22,628 23,194 23,774 24,368 24,977 Sub-total Indirect Expenses 500,000$ 438,140$ 453,399$ 467,255$ 482,339$ 498,018$ 511,510$ 525,411$ 539,687$ 554,349$ 569,706$ Total Expenses 500,000$ 671,864$ 699,794$ 726,540$ 762,623$ 796,955$ 821,825$ 847,087$ 873,154$ 900,117$ 928,231$ Net Operating Income (Deficit)(500,000)$ (109,344)$ (100,721)$ (91,164)$ (61,543)$ (39,887)$ (38,260)$ (37,606)$ (36,870)$ (35,823)$ (35,004)$ Reserve for Replacement -$ 50,000$ 50,000$ 50,000$ 50,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ Net Income (Deficit) Before Debt Service (500,000)$ (159,344)$ (150,721)$ (141,164)$ (111,543)$ (139,887)$ (138,260)$ (137,606)$ (136,870)$ (135,823)$ (135,004)$ Source: Johnson Consulting DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 2 Introduction and Executive Summary | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 9 As shown, the proposed Multi-Purpose Event Center is expected to operate at a deficit of ($109,344) in Year 1, improving to a deficit of ($39,887) Year 5, and ($35,004) in Year 10. After accounting for the deposit to the maintenance reserve account, the facility is expected to operate at a larger deficit throughout the projection period. However, the projected deficits are consistent with those observed at multi-purpose facilities of similar size and orientation, as is explained in greater detail at the end of this section. It is noted that land lease and grant income, if any, have not been included in these revenue projections, as assessing the value of this income stream is outside the scope of this assignment. It is our considered opinion, however, that opportunities exist for capturing both of these revenue streams and this should be explored in further detail as the project progresses. ECONOMIC AND FISCAL IMPACTS The following table summarizes the total estimated economic impacts of the new Event Center, including transfer impacts and net new impacts. Table 2 - 5 As shown in the table above, the new Event Center is estimated to generate $31.6 million of total spending, $9 million of increased earnings, and support 310 full-time equivalent jobs in its stabilized year of operation. Transfer impacts are projected to include $11 million in total spending, $3.1 million in increased earnings, and support 110 jobs. Net new impacts to Estes Park are projected to include $20.6 million in total spending, $5.9 million in increased earnings, and support 200 jobs. Net new impacts to the State of Colorado are projected to include $12.4 million in total spending, $3.5 million in increased earnings, and support 120 jobs. The following table shows the estimated annual fiscal impact of Event Center. Multi-Purpose Event Center, Estes Park, Colorado Summary of Economic and Fiscal Impacts Transfer Impact Net New to Estes Park Net New to Colorado Total Direct Spending $7.4 $14.0 $8.4 $21.4 Indirect Spending 2.1 4.0 2.4 6.1 Induced Spending 1.4 2.7 1.6 4.1 Total Spending $11.0 $20.6 $12.4 $31.6 Earnings $3.1 $5.9 $3.5 $9.0 Employment (Full-Time Equiv. Jobs)11 0 200 120 310 Source: Johnson Consulting DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 2 Introduction and Executive Summary | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 10 Table 2 - 6 As shown on the table, activities at the proposed Event Center are estimated to generate approximately $1.51 million of tax revenues, annually, which include $1.47 million of sales tax revenues and $45,000 of hotel/ motel tax revenues. This benefit is well over what the capital budget debt service would be for the facility. Outside of the indicated fiscal benefits, the Town of Estes Park is likely to incur some expenses related to providing services to the improved facilities that are not estimated in this analysis. These expenses include slight increases in police, fire protection, emergency medical services, traffic control, street maintenance, sanitation, and other ongoing operating expenses required to maintain the environment around the facility. As property tax is not projected in this fiscal impact analysis, it is expected that such taxes would be more than sufficient to fund the marginal costs in these areas. FEASIBILITY STUDY CONCLUSION Based on the foregoing analyses, our findings and recommendations relating to the overall feasibility of the proposed facility are summarized as follows: 1. DOES THE PROPOSED MULTI-PUPOSE EVENT CENTER MAKE SENSE FOR THE COMMUNITY AND THE FAIRGROUNDS? Absolutely. The proposed Multi-Purpose Event Center at Stanley Park Fairgrounds presents a unique and appropriate opportunity to capitalize on a number of key characteristics of the location and the local and regional economies. 2. WILL THE MULTI-PURPOSE EVENT CENTER CAUSE DEMAND AND REVENUE DIVERSIFICATION TO IMPROVE YEAR-ROUND OPERATION OF THE FAIRGROUNDS? Yes, if targeted and marketed appropriately. In order to serve as a true year-round, multi-purpose venue, the proposed Event Center should have a concrete floor. As demonstrated by the Eagle River Center, a dirt floor Multi-Purpose Event Center, Estes Park, Colorado Estimated Annual Fiscal Impacts ($000's) (Stabilized Year) Tax Rates Ta xable Spending Ta x Revenues General Sales Tax State Sales Tax 2.90%$19,556 $567 County Sales Tax 0.60%$19,556 11 7 City Sales Tax 4.00%$19,556 782 Subtotal 7.50%$1,467 Hotel/ Motel Tax Local Hotel Tax 2.00%$2,234 $45 Total $1,511 Source: Johnson Consulting DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 2 Introduction and Executive Summary | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 11 limits the flexibility of use of an Event Center. In the summer months, when Stanley Park Fairgrounds is already heavily utilized, the Event Center could enhance overall operations and allow events to grow and expand. A dirt floor, which would support equestrian and rodeo events, among others, could be brought in. During the non-summer months, when there is a desire to attract new events to the facility, a concrete floor will have much broader appeal. As part of Larimer County, opportunity is seen if the proposed facility has a marketing alliance with The Ranch. The Ranch has a very good reputation and could help Estes Park, just by referring business to the new venue. Joint promotional efforts by both venues could help the overall Stanley Park Fairgrounds complex as well. 3. IF BUILT, HOW WOULD THE FACILITY BE OPERATED/ MANAGED AND WHAT WOULD THE DEMAND AND FINANCIAL OPERATING PROFILE BE? Stanley Park Fairgrounds is owned by the Town of Estes Park and operated as part of a City department, and this model seems to be working generally well. Our concern would be that the new facility would be a positive paradigm shift in the quality and role of the overall complex. As such, it is our considered opinion that there will need to be a more unified approach to sales and marketing, involving a collaborated effort between Visit Estes Park, the sales and marketing team at the Estes Park Conference Center, and management of Stanley Park Fairgrounds. The Multi-Purpose Event Center, based upon the proposed development program that includes a 26,929 square foot multi-purpose room, 978 square feet of meeting and breakout space, 628 square feet of office space, 346 square foot concession/ catering kitchen, restrooms, and other storage and support amenities, is projected to host 100 events in 2015 (Year 1), attracting a total of 101,600 attendees. The event schedule is projected to stabilize at 124 events in 2019 (Year 5), with a total attendance of 134,200 people. These demand projections are in line with comparable facilities. The proposed Multi-Purpose Event Center is expected to operate at a deficit of ($109,344) in Year 1, improving to a deficit of ($39,887) Year 5, and ($35,004) in Year 10. After accounting for the deposit to the maintenance reserve account, the facility is expected to operate at a larger deficit throughout the projection period. However, the projected deficits are consistent with those observed at multi-purpose facilities of similar size and orientation. 4. IS SUCH A FACILITY CONSISTENT WITH THE PROFILE OF THE MARKET AND WILL IT CONTRIBUTE TO ECONOMIC DEVELOPMENT, TOURISM AND SOCIAL GROWTH? Estes Park is a popular tourist destination, however it lacks the necessary infrastructure to support year-round visitation. It is envisaged that a new Multi-Purpose Event Center could serve as a year-round sporting, entertainment, cultural, and consumer show destination. It would host current events better and attract new business to the market. The Event Center will attract new tradeshows, consumer shows, and entertainment DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 2 Introduction and Executive Summary | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 12 and sporting events to the market, while also helping to retain and grow the current inventory of events and festivals in the Town and particularly at Stanley Park. There will still be seasonal dips, and Summer will always be the strongest season, but this facility will attract demand throughout the year. 5. DOES THE COMMUNITY HAVE THE RESOURCE BASE TO FUND SUCH A PROJECT AND WHAT OTHER RESOURCES CAN BE BROUGHT TO BEAR TO FUND THE PROJECT? The $5-$6 million budget that has been identified for the development of the proposed Multi-Purpose Event Center is comparable to similar projects, and reflects the size, orientation and risk profile of the type of venue that is being proposed. The new venue will improve overall operating efficiencies across the entire Stanley Park campus, and will reduce the level of subsidy currently required to operate the Fairgrounds. Smaller counties have funded similar venues, and Stanley Park has better potential than exists in some other counties analyzed as part of this assignment. Further, sales tax, which is the anticipated funding source is growing in the Town and in the County. The Ranch used a small increase in their sales tax to fund their venues. DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com SECTION III ECONOMIC AND DEMOGRAPHIC ANALYSIS DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 3 Economic and Demographic Overview | DRAFT January 2013 Feasibility Study of a Year Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 13 ECONOMIC AND DEMOGRAPHIC ANALYSIS In order to analyze the market opportunity for the proposed Multi-Purpose Event Center, Johnson Consulting undertook a comprehensive review of market conditions in Estes Park and Larimer County, relative to the broader metropolitan area, as well as state and national averages. The key objectives of this analysis were to identify structural factors, opportunities and weaknesses that may affect the market’s ongoing competitive situation, and to gauge the level of support that exists for the development of a Multi-Purpose Event Center. While characteristics such as population, employment and income are not strict predictors of the performance of cultural, community or event facilities, they provide insight into the capacity of a market to provide ongoing support for facilities and activities. In addition, the size and role of a marketplace, its civic leadership, proximity to other metropolitan areas, transportation concentrations, and the location of competing and/ or complementary attractions, directly influence the scale and quality of facilities that can be supported within that particular market. MARKET OVERVIEW Situated approximately 70 miles to the northwest of Denver, on Lake Estes, the Town of Estes Park is located at the eastern entrance to Rocky Mountain National Park. Estes Park is an energetic and dynamic community, known for its abundance of outdoor recreational offerings and the high quality of life that is provided to both residents and its 2 million annual visitors. The Town also features a vibrant downtown shopping district that offers a variety of restaurants and lodging facilities. The following figure provides an overview map of the Town of Estes Park. DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 3 Economic and Demographic Overview | DRAFT January 2013 Feasibility Study of a Year Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 14 Figure 3 - 1 STANLEY PARK FAIRGROUNDS Situated in downtown Estes Park, to the south of Lake Estes, the Stanley Park Fairgrounds relates to a 42- acre site featuring 582 horse stalls, 5 arenas, 18,230 square feet of covered exhibition space, and a grandstand with capacity for 2,700 spectators. The 15,836 square foot Barn W is one of the most utilized, year-round facilities at the Fairgrounds. The 2012 Masterplan for the site include the development of a new Multi-Purpose Event Center, which is the subject of this feasibility study, along with additional stall barns in subsequent phases. The following figure shows the location of the proposed Multi-Purpose Event Center. DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 3 Economic and Demographic Overview | DRAFT January 2013 Feasibility Study of a Year Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 15 Figure 3 - 2 The initial development program for the proposed Multi-Purpose Event Center, as prepared by Kenney and Associates Architects, includes 26,929 square feet of contiguous multi-purpose events space, along with two conference rooms of 471 and 507 square feet, and additional support facilities. Renderings of the proposed floorplans are included in Section 6 of this report. CURRENT POPULATION In 2010 the Town of Estes Park had an estimated resident population of 5,858 persons, representing 2.0 percent of the total population of Larimer County, which is coextensive with the Fort Collins-Loveland Metropolitan Statistical Area (MSA). Estimates for 2012 indicate that the population of the Estes Park has increased to 6,139 persons. Between 2000 and 2012, the population of the Town increased at an average annual rate of 0.8 percent, which was substantially lower than figures recorded for Larimer County (1.5 percent per annum) and Colorado (1.7 percent), but generally consistent with the national average (0.9 percent). DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 3 Economic and Demographic Overview | DRAFT January 2013 Feasibility Study of a Year Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 16 Table 3 - 1 It is noted that the population of Estes Park is seasonal, with estimates included in the 2012 impact study of tourism, prepared for Visit Estes Park, indicating that the population may dip well below 5,000 persons in the winter months, and swell to in excess of 10,000 persons in the summer months. The role of the Town as a regional attraction, with its many recreational opportunities and destinations, including the Fairgrounds, and its numerous hotels, means that it enjoys a much higher level of demand than the base population would otherwise justify. PROJECTED POPULATION GROWTH Population projections prepared by the U.S. Census Bureau indicate that the population of the Town of Estes Park will reach 6,769 persons in 2017, representing an average annual rate of growth of 2.0 percent over 2012. This rate of growth is substantially higher than that recorded during 2000-2012 (0.8 percent per annum) and is also higher than the projected rates of growth in Larimer County (1.3 percent per annum), Colorado (1.1 percent), and the U.S. as a whole (0.7 percent). Table 3 - 2 2000 2010 2012 % Growth 2000-2012 CAGR* 2000-2012 U.S.281,399 308,746 312,839 11 .2%0.9% Colorado 4,284 5,029 5,149 20.2%1.5% Larimer County 251 300 306 21.7%1.7% Town of Estes Park 6 6 6 9.5%0.8% * Compounded Annual Growth Rate Source: Demographics Now, Johnson Consulting Historic & Current Population - Town of Estes Park (2000-2012) ('000s) 2012 2017 % Growth 2012-2017 CAGR* 2012-2017 U.S.312,839 324,004 3.6%0.7% Colorado 5,149 5,448 5.8%1.1% Larimer County 306 326 6.5%1.3% Town of Estes Park 6 7 10.3%2.0% * Compounded Annual Growth Rate Source: Demographics Now, Johnson Consulting Projected Population - Town of Estes Park (2012-2017) ('000s) DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 3 Economic and Demographic Overview | DRAFT January 2013 Feasibility Study of a Year Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 17 Longer-term projections for Colorado indicate that the states population will increase at an average annual rate of 0.9 percent between 2020 and 2030, reaching 5.8 million people in 2030. This rate of growth is consistent with the rate of increase forecast throughout the U.S. (0.8 percent), reflecting a return to long-term growth rates in the state. Table 3 - 3 AGE CHARACTERISTICS The age characteristics of Estes Park differ from those of Larimer County, Colorado, and the U.S., primarily on the basis of a much higher concentration of older persons aged in 55 years and over. Residents in this age group account for 46.2 percent of the population of the Town, compared to 25.6 percent of residents of Larimer County, 24.0 percent of persons throughout Colorado, and 25.9 percent of the U.S. The Town comprises a lower proportion of adults aged between 25 and 44 years (18.4 percent) than the County (26.5 percent), State (28.1 percent), and national (26.3 percent) averages, as well as a lower proportion of children and teenagers aged 19 years and under, accounting for 18.2 percent of the resident population of Estes Park, compared to 24.8 percent of residents of Larimer County, 26.6 percent of residents of Colorado, and 26.4 percent of persons throughout the U.S. 2020 2025 2030 CAGR* 2020-2030 U.S.335,805 349,439 363,584 0.8% Colorado 5,495 5,749 6,029 0.9% Source: U.S. Census Bureau, Johnson Consulting Population Projection - Colorado (2020-2030) ('000s) DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 3 Economic and Demographic Overview | DRAFT January 2013 Feasibility Study of a Year Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 18 Table 3 - 4 MEDIAN AGE In 2012 the median age of residents of the Town of Estes Park was 53.0 years, which was substantially higher than figures recorded for Larimer County (36.0 years), Colorado (36.0 years), and the U.S. (38.0 years). Between 2000 and 2012, the median age of residents of Estes Park increased at a rapid rate of 15.2 percent per annum, reflecting an influx of retirees to the Town, as well as the broader shift towards an ageing population. This rate of growth was substantially higher than those recorded throughout the County (8.1 percent per annum), State (5.0 percent), and the U.S. as a whole (7.2 percent). Table 3 - 5 No.%No.%No.%No.% 0-4 274 4.5%17,328 5.7%340,134 6.6%20,032,821 6.4% 5-14 540 8.8%36,057 11 .8%696,869 13.5%41,074,715 13.1% 15-19 306 5.0%22,577 7.4%335,293 6.5%21,432,065 6.9% 20-24 232 3.8%29,412 9.6%358,792 7.0%22,000,671 7.0% 25-34 576 9.4%44,156 14.4%740,103 14.4%41,697,654 13.3% 35-44 556 9.1%37,028 12.1%706,287 13.7%40,643,746 13.0% 45-54 818 13.3%41,261 13.5%735,234 14.3%44,802,989 14.3% 55-64 1,192 19.4%39,634 12.9%638,333 12.4%38,561,197 12.3% 65-74 943 15.4%22,068 7.2%346,011 6.7%23,445,792 7.5% 75-84 505 8.2%11 ,288 3.7%176,572 3.4%13,273,728 4.2% 85+197 3.2%5,271 1.7%75,840 1.5%5,873,382 1.9% TOTAL 6,139 306,080 5,149,468 312,838,760 Source: Demographics Now, Johnson Consulting Age Distribution - Town of Estes Park (2012) Age Group (Years) Town of Estes Park Colorado U.S.Larimer County 2000 2010 2012 2017 Growth 2000-2012 Growth 2012-2017 U.S.35.3 37.0 38.0 38.0 7.6%0.0% Colorado 34.3 36.0 36.0 37.0 5.0%2.8% Larimer County 33.3 35.0 36.0 36.0 8.1%0.0% Town of Estes Park 46.0 52.0 53.0 53.0 15.2%0.0% Source: Demographics Now, Johnson Consulting Median Age - Town of Estes Parl (2000-2017) DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 3 Economic and Demographic Overview | DRAFT January 2013 Feasibility Study of a Year Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 19 The age characteristics of a local population are an important consideration when analyzing long-term demand for a new public assembly facility, such as the proposed Multi-Purpose Event Center, as these characteristics could impact demand for certain types of public events, and would likely influence the types of events that promoters would bring to the area. The Town’s relatively small, older population is somewhat of a negative in terms of supporting a new public assembly facility because it means that the Town must rely on attracting more regional residents and visitors than other markets. However, this is in fact how the market survives, and succeeds, today. There are an above average number of retail, restaurant and hotel offerings in Estes Park that are supported, in large measure, by tourism, rather than the local population. Hence, having venues, such as the proposed Multi-Purpose Event Center, that add to the inventory of tourism drivers is very important to the Town. EDUCATIONAL ATTAINMENT The population of Estes Park is very well educated, with almost half of residents (49.9 percent) holding a Bachelor’s degree or higher. This figure is slight higher than that recorded across Larimer County (48.4 percent), and considerably higher than the State (36.4 percent) and national (28.3 percent) averages. Table 3 - 6 EMPLOYMENT In 2010 (which is the most current data available) the predominant industry of employment in Estes Park was Services (45.1 percent of employed residents aged 15 years and older), predominantly Health Care and Social Assistance, Professional, Technical and Scientific Services, and Accommodation and Food Services, followed No.%No.%No.%No.% Less than High School 210 4.4%10,306 5.1%353,691 10.3%30,085,045 14.4% High School Graduate 603 12.6%36,699 18.3%778,005 22.8%59,130,996 28.4% Some College, No Degree 1,219 25.5%43,615 21.7%772,063 22.6%44,304,131 21.3% Associates Degree 364 7.6%16,951 8.4%268,981 7.9%15,928,866 7.6% Bachelor's Degree 1,224 25.6%56,644 28.2%799,893 23.4%37,001,254 17.8% Graduate Degree 1,167 24.4%36,491 18.2%445,747 13.0%21,848,196 10.5% TOTAL 4,787 200,706 3,418,380 208,298,488 Source: Demographics Now, Johnson Consulting Educational Attainment - Town of Estes Park (2012) U.S.ColoradoTown of Estes Park Larimer County DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 3 Economic and Demographic Overview | DRAFT January 2013 Feasibility Study of a Year Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 20 by Government (15.5 percent), Retail Trade (11.3 percent), and Finance, Insurance and Real Estate (10.8 percent). Between 2008 and 2010 decreases in employment were recorded across all industries except Finance, Insurance and Real Estate, Services, and Government, which recorded increases of 3.4 percent, 0.5 percent and 0.3 percent per annum, respectively. The largest decreases in employment were recorded in the Construction (-9.8 percent per annum) and Manufacturing (-4.4 percent) sectors. Table 3 - 7 UNEMPLOYMENT The following table shows the annual unemployment rates for Larimer County, relative to Colorado and the U.S., for the period of 2000-2011 (note that unemployment data is not available at the city or town level outside of Census periods). 2008 2009 2010 CAGR* 2008-2010 Construction 14,770 13,106 12,018 (9.8%) % of Total 7.8%7.0%6.4% FIRE**18,905 19,752 20,200 3.4% % of Total 10.0%10.6%10.8% Government 28,549 28,866 28,715 0.3% % of Total 15.0%15.5%15.4% Manufacturing 12,984 12,142 11 ,933 (4.1%) % of Total 6.8%6.5%6.4% Other 1,687 1,595 1,679 (0.2%) % of Total 0.9%0.9%0.9% Retail Trade 22,118 21,487 21,174 (2.2%) % of Total 11 .6%11 .5%11 .3% Services 83,490 82,575 84,373 0.5% % of Total 44.0%44.3%45.1% Transport & Utilities 3,350 3,162 3,193 (2.4%) % of Total 1.8%1.7%1.7% Wholesale Trade 4,005 3,791 3,725 (3.6%) % of Total 2.1%2.0%2.0% TOTAL 189,858 186,476 187,010 (0.8%) * Compounded Annual Growth Rate ** Finance, Insurance & Real Estate Source: BEA, Johnson Consulting Non-Farm Employment by Industry - Fort Collins-Loveland MSA (2008-2010) DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 3 Economic and Demographic Overview | DRAFT January 2013 Feasibility Study of a Year Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 21 Table 3 - 8 Between 2000 and 2011 the unemployment rate in Larimer County has consistently remained below that recorded across Colorado and the U.S. In 2011, the unemployment rate in Larimer County was 6.8 percent, which was substantially lower than the State (8.3 percent) and national (8.9 percent) averages, and represents a decrease of 0.6 percent over 2010. HOUSEHOLD INCOME In 2010 the median household income in Estes Park was $52,421, which was lower than figures recorded for Larimer County ($56,914) and Colorado ($56,113) but higher than the national average ($51,362). Estimates for 2012 indicate that the median household income in Estes Park increased to $53,909, which still remains lower than the County ($58,422) and State ($57,178) averages, but higher than the national average ($52,822). Between 2000 and 2012, the median household income in the Town increased at an average annual rate of 0.9 percent, which was lower than the rates of growth recorded throughout Larimer County (1.5 percent per annum), Colorado (1.6 percent), and the U.S. as a whole (1.9 percent). Rate Change Rate Change Rate Change 2000 2.5%-2.7%-4.0%- 2001 3.2%0.7 3.8%1.1 4.7%0.7 2002 4.7%1.5 5.7%1.9 5.8%1.1 2003 5.1%0.4 6.1%0.4 6.0%0.2 2004 4.7%(0.4)5.6%(0.5)5.5%(0.5) 2005 4.5%(0.4)5.1%(0.5)5.1%(0.4) 2006 3.9%(0.6)4.3%(0.8)4.6%(0.5) 2007 3.4%(0.5)3.8%(0.5)4.6%0.0 2008 4.2%0.8 4.8%1.0 5.8%1.2 2009 7.0%2.8 8.1%3.3 9.3%3.5 2010 7.4%0.4 8.9%0.8 9.6%0.3 2011 6.8%(0.6)8.3%(0.6)8.9%(0.7) Source: Bureau of Labor Statistics, Johnson Consulting Unemployment Rate - Larimer County (2000-2011) Larimer County Colorado U.S. DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 3 Economic and Demographic Overview | DRAFT January 2013 Feasibility Study of a Year Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 22 Table 3 - 9 Going forward, growth in median household incomes in Estes Park is expected to increase, relative to 2000- 2012 (1.2 percent between 2012 and 2017), with the median household income projected to reach $58,979 per annum in 2017. Nevertheless, the rate of growth forecast in the Town remains below projections for the Larimer County (1.7 percent per annum), Colorado (1.7 percent), and the U.S. (2.2 percent). CORPORATE PRESENCE A strong corporate and business presence can be an important factor in the success of a new public assembly facility, such as the proposed Multi-Purpose Event Center, because local businesses can attract residents to an area, provide disposable income, and support facilities through donations, advertising, and their requirement for event space. The following table shows the largest public and private employers throughout Larimer County. As shown, the largest employers in the County are concentrated within the Education, Health Care, Government, and Technology sectors. The largest single employer is Colorado State University (6,183 employees), followed by Poudre Valley Health Care (4,414), Poudre School District (4,030) and Thompson School District (3,388). 2000 2010 2012 2017 CAGR* 2000-2012 CAGR* 2012-2017 U.S.$42,257 $51,362 $52,822 $60,730 1.9%2.2% Colorado $47,297 $56,113 $57,178 $63,182 1.6%1.7% Larimer County $48,807 $56,914 $58,422 $64,589 1.5%1.7% Town of Estes Park $48,198 $52,421 $53,909 $58,979 0.9%1.2% * Compounded Annual Growth Rate Source: Demographics Now, Johnson Consulting Median Household Income - Town of Estes Park (2000-2017) DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 3 Economic and Demographic Overview | DRAFT January 2013 Feasibility Study of a Year Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 23 Table 3 - 10 UNIVERSITY AND COLLEGE PRESENCE Universities within close proximity of Estes Park include:  University of Colorado: The flagship campus of the public research university is located in Boulder, approximately 40 miles to the southeast of Estes Park. CU-Boulder offers a range of undergraduate and graduate degree programs in Arts and Science; Business; Education; Engineering and Applied Science; Law; Music; Environmental Design; and Journalism and Mass Communication. Total enrollment is estimated at close to 30,000 students.  Colorado State University: The flagship campus of the land grant university is located in Fort Collins, approximately 40 miles to the northeast of Estes Park. CSU undergraduate and graduate degree programs across eight colleges including Agricultural Sciences; Applied Human Sciences; Business; Engineering; Liberal Arts; Natural Sciences; Veterinary Medicine and Biomedical Sciences; and Natural Resources. Current enrollment is estimated at around 27,000 students.  University of Northern Colorado: A public university based in Greeley, approximately 50 miles to the east of Estes Park, with satellite campuses in Loveland and Lowry (Denver). UNC offers undergraduate and graduate degree programs across Education and Behavioral Sciences; Humanities and Social Sciences; Business; Natural and Health Sciences; and Performing and Visual Arts. Total enrollment is estimated at around 12,000 students. Industry Employees Colorado State University Education 6,183 Poudre Valley Health Care Health Care 4,414 Poudre School District Education 4,030 Thompson School District Education 3,388 Larimer County Government 2,224 Center Partners Technology 2,000 Wal-Mart (including Greeley)Retail Trade 2,000 City of Fort Collins Government 1,643 Hawlett Packard Technology 1,500 Banner Health Systems Health Care 1,180 Source: Larimer County, Johnson Consulting Largest Employers - Larimer County (2010) DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 3 Economic and Demographic Overview | DRAFT January 2013 Feasibility Study of a Year Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 24 Additional higher education institutions within close proximity of Estes Park include Colorado School of Mines in Golden; Metropolitan State College in Denver; University of Denver in Denver; Front Range Community College in Fort Collins; and Aims Community College in Greeley. ACCESSIBILITY The strategic location of Estes Park, within 1.5 hours (drive time) of Denver means that it is easily accessible via numerous modes of transportation, and as such can draw visitors from a wide catchment area:  Airports: Denver International Airport (DEN), which is situated 75 miles to the southeast of Estes Park, is the main airport serving the Town. DEN is the largest airport in the U.S., in terms of total area, and in 2011 it served 52.7 million passengers, making it the fifth busiest airport in the world, in terms of passenger movement.  Rail: Amtrak provides daily rail services along the California Zephyr line, between Chicago, IL and San Francisco, CA, via Denver. There is 1 daily arrival and departure from Denver in each direction of travel.  Road: Estes Pak is accessible via U.S. Highways 34 and 36, which bisect the Town in an east-west direction, and Colorado State Highway 7, which provides access from the south.  Shuttle Buses: Free shuttle buses operate throughout Estes Park and Rocky Mountain National Park operate during summer. Year-round shuttle buses also operate between Estes Park and Denver. TOURISM Similarly to the seasonal shifts in Estes Park’s residential population base, visitation levels vary significantly. The summer months, and particularly from June to September, represent the peak tourism season. The following figure shows the average number of visitor days per month between 2002 and 2011. DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 3 Economic and Demographic Overview | DRAFT January 2013 Feasibility Study of a Year Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 25 Figure 3 - 3 Data from a tourism study completed for Visit Estes Park in August 2012 indicates that general leisure tourism accounts for 82 percent of visitors to Estes Parks, with visitors attending special events accounting for 5 percent. Only 7 percent of visitors to Estes Park are business travellers. The following table provides a list of annual special events held in Estes Park, primarily at the Town’s two main venues – Stanley Park Fairgrounds, and Performance Park, which is located at the west end of downtown. As shown, the vast majority of the Town’s special events occur between May and September (not shown in the table are a number of horse shows that occur at the Fairgrounds, which are also concentrated in the summer months). DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 3 Economic and Demographic Overview | DRAFT January 2013 Feasibility Study of a Year Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 26 Table 3 - 11 The origin of visitors to Estes Park is heavily skewed towards Colorado and the surrounding region, with 43 percent of visitors originating from within Colorado, and 28 percent originating from the western U.S. and proximate Mid-Western states. Approximately 27 percent of visitors come from elsewhere in the U.S., with only 2 percent of travelers to Estes Park being international visitors. HOTEL INVENTORY In response to tourism demand, Estes Park has developed infrastructure to accommodate visitors, including a strong service industry and a large inventory of hotels and other lodging facilities. Data from the Town of Estes Park indicates that the local lodging inventory throughout Estes Valley is comprised of 128 facilities, Month Event January Winter Festival February Model Railroad Show May Jazz Festival/ Art Walk Classic Auto Show Antiques and Collectibles Show Art Market June Wool Market Fishing Derby Marathon Scandinavian Festival July Rooftop Rodeo July 4 Fireworks Coolest Car Show August Heritage Festival September Scottish/ Irish Highland Festival Fine Arts and Crafts Festival Brats, Bands 'n Beer Elk Fest November Holiday Celebration and Parade Special Events - Estes Park (2012) Source: Town of Estes Park, Visit Estes Park, 2012 Official Visitor Guide, Summit Economics LLC, Johnson Consulting DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 3 Economic and Demographic Overview | DRAFT January 2013 Feasibility Study of a Year Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 27 offering a total 2,938 rooms. The following table provides a summary of the Town’s largest lodging facilities (offering 50 or more rooms). These facilities offer a total of 905 guest rooms and approximately 37,000 square feet of meeting space, with the largest hotel being the Rocky Mountain Park Inn, which is located in close proximity to Stanley Park Fairground. The Rocky Mountain Park Inn, which adjoins the Estes Park Conference Center (which is owned by the Town, but operated by the Hotel), and The Stanley Hotel both offer the largest inventory of hotel meeting space (16,000 square feet at each). Table 3 - 12 The YMCA Estes Park Center offers an additional 655 lodging rooms, along with 60,000 square feet of meeting and event space, which is predominantly utilized for corporate retreats and similar types of events. The seasonality of tourist demand in Estes Park is further reflected in average annual occupancy rates, versus peak occupancy rate in June. The following figure shows peak and annual average occupancy rates in Estes Park between 2003 and 2011. Hotel Guest Rooms Meeting Space (SF) Rocky Mountain Park Inn 150 16,000 The Stanley Hotel 140 16,000 Rodeway Inn 132 - Comfort Inn & Suites 75 - EconoLodge Inn & Suite 72 - Estes Park Resort 60 2,500 Aspen Lodge 59 2,500 Discovery Lodge 57 - Best Western Plus Silver Saddle 55 - Four Winds Motor Lodge 53 - Hotel Estes 52 - Total 905 37,000 Inventory of Lodging Facilities (50+ Rooms) - Estes Park (2012) Source: Visit Estes Park, mpoint, Relevant Facilities, Johnson Consulting DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 3 Economic and Demographic Overview | DRAFT January 2013 Feasibility Study of a Year Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 28 Figure 3 - 4 As shown, peak lodging occupancy rates in Estes Park have generally averaged 22 percentage points higher than the annual average occupancy rates since 2003. One of the primary objectives of the proposed Multi- Purpose Event Center is to increase year-round visitation to Estes Park, thereby helping increase hotel occupancy rates during the non-peak months. REGIONAL AND COMPETITIVE FACILITIES The following table provides a summary of fairgrounds facilities throughout the region. 63.4% 65.9% 71.2% 79.9% 75.0% 75.4% 67.9% 71.1% 69.2% 46.2% 44.2% 44.4% 51.8% 53.0% 53.2% 49.2% 48.1% 50.9% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 2003 2004 2005 2006 2007 2008 2009 2010 2011 Peak Season & Average Annual Lodging Occupancy Rates (2003-2011) - Town of Estes Park June Occupancy Average Annual Occupancy Source: Summit Economics LLC, Visit Estes Park, Johnson Consulting DRAFT Section 3 Economic and Demographic Overview | DRAFT January 2013 Feasibility Study of a Year Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 29 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Table 3 - 13 Key Characteristics of Regional Facilities and Markets - Fairgrounds Boulder County Fairgrounds The Ranch Events Complex (Larimer County Fairgrounds) Island Grove Fairgrounds Jefferson County Fairgrounds Arapahoe County Fairgrounds Douglas County Fairgrounds & Events Center Colorado State Fairgrounds Eagle County Fairgrounds Location Location Longmont, CO Loveland, CO Greeley, CO Golden, CO Aurora, CO Castle Rock, CO Pueblo, CO Eagle, CO Distance from Stanley Park Fairgrounds 33 miles 38 miles 50 miles 65 miles 85 miles 95 miles 180 miles 184 miles Metropolitan Area Boulder Fort Collins-Loveland Greeley Denver Denver Denver Pueblo Edwards Demographic Characteristics (2012) Metroplitan Area Population 298,312 306,080 262,784 2,611,271 2,611,271 2,611,271 161,769 60,112 Median Age (Years)36.0 34.0 36.0 36.0 36.0 39.0 35.0 Median Household Income $65,624 $58,422 $55,804 $61,079 $61,079 $61,079 $39,159 $69,537 Facilities (SF) Function Space 35,000 SF Exhibit Building 36,000 SF & 12,500 SF Exhibition Halls; 7,200- seat Bud Events Center 58,200 SF & 24,200 SF Exhibit Halls; 8,122 SF Additional Space 10,440 SF Exhibit Hall 23,690 SF 29,000 SF Events Center; 4,800 SF Hall 14,747 SF Creative Arts Building; 5,917 SF Auditorium; 7,800 SF Dining Room 5,000 SF Exhibit Hall Meeting Rooms(s)1 Room (672 SF) 5,760 SF + Larimer Conference Center (96,000 SF) 4,325 SF 4 Rooms (Max.Capacity 100 people) 1,200 SF 3,300 SF Conference Room 1,711 SF - Arena(s) 2 Indoor Arenas (Dirt); 1 Outdoor Arena (Dirt) 2 Outdoor Arenas (Dirt)2 Outdoor Arenas (Dirt) 20,500 SF Events Center (Indoor Arena with Dirt Floor); 2 Additional Indoor Arenas (Dirt); 3 Outdoor Arenas (Dirt) 2 Outdoor Arenas (Dirt) 1 Indoor Arena (Dirt); 1 Outdoor Arena (Dirt) 8,225-seat Events Center (Indoor Arena with Dirt Floor); 1 Additional Indoor Arena (Dirt); 2 Outdoor Arenas (Dirt) 32,500 SF Eagle River Center (Indoor Arena with Dirt Floor); 1 Outdoor Arena (Dirt) Other (Barns/Pavilions etc.)6 Barns 4 Pavilions 30,000 SF Livestock Building; 2 Pavilions 155 Convered Stalls -2 Barns; Pavilion 2 Pavilions (128,000 SF & 81,171 SF); Outdoor Amphitheater - Source: Relevant Facilities,Demographics Now, JohnsonConsulting DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 3 Economic and Demographic Overview | DRAFT January 2013 Feasibility Study of a Year Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 30 It is anticipated that the proposed Multi-Purpose Event Center at Stanley Park Fairgrounds will complement existing offerings within the region. Specifically, the proposed venue will be able to host smaller events that cannot be accommodated at The Ranch, thereby absorbing some of the turned away business that is currently lost from the County. In fact, it is our suggestion that the Town of Estes Park work very closely with its prime hotels, as well as with its sister property in the County (The Ranch) as part of its marketing strategy. Island Grove Fairgrounds does not share the same locational attributes as Stanley Park, and serves a particular niche marker, as does the Boulder County Fairgrounds. Therefore, the proposed venue would not be expected to compete directly with Island Grove or Boulder County Fairgrounds. The remaining fairgrounds shown in the table are far enough removed from Estes Park, geographically, that the proposed Multi-Purpose Event Center could expect to attract events that rotate through these other complementary fairgrounds venues. In addition to the fairgrounds facilities listed above, the Colorado Convention Center (CCC) in Denver serves as a primary event facility for the region, offering close to 700,000 square feet of meeting and exhibit space. The CCC serves a very different market to the proposed Multi-Purpose Event Center, being focused on conventions and trade shows, and much larger consumer shows, and as such, the proposed venue would not be expected to compete with it. IMPLICATIONS The Town of Estes Park is very small, but very attractive. It has a good base of business es and has many of the key characteristics and requirements necessary to support a new Multi-Purpose Event Center. These include a role as a gateway and tourism hub, forecast population growth locally and throughout the County, low unemployment, an established service industry, a large inventory of lodging facilities, proximity to abundant recreational opportunities, and a need for tourism demand drivers during the non-peak season. It is anticipated that the proposed Multi-Purpose Event Center will serve to complement existing facilities in Estes Park and Larimer County (particularly The Ranch), and throughout the surrounding region, rather than compete with them. Its target market will differ from that of the existing hotel meeting space and the YMCA. Indeed, the area hotel supply has a comparatively small amount of meetings space, meaning that the proposed Multi-Purpose Event Center could be used to supplement the meeting space at larger hotels, and will create demand for smaller hotel properties as well. The new Event Center will also serve as a potential venue for rotating events that currently utilize fairgrounds facilities throughout the broader region. DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com SECTION IV INDUSTRY TRENDS DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 4 Industry Trends | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 31 EVENT INDUSTRY TRENDS Virtually all categories of meeting activities have experienced rapid worldwide growth since the early 1970s, with moderate downturns and rebounds reflective of national and international economic shifts. Notwithstanding the most recent global recession, the economic efficiency of using tradeshows to sell products, and for the pursuit of education and commerce, has fueled the creation of new events and the growth of existing events, in terms of both size and attendance. Cities throughout the world have responded and are still responding, albeit at a subdued pace, to this demand, along with efforts to bolster trade and development, by supplying millions of square feet of new or renovated exhibition and meeting space in both small and large markets. In order to understand the long-term market demand for public assembly facilities, an analysis of entertainment, social event, and meeting industry trends is important. This subsection provides a general overview of the types of meeting facilities that exist in the industry, as well as the types of events that are commonly hosted. Also discussed are the general requirements that meeting planners look for in a prospective location, as well as an overview of current and likely future market trends, focusing on the impact of broader economic conditions on the meetings and events industry. TYPES OF FACILITIES Each event type has unique facility needs. Certain events require large amounts of contiguous space, while others require many smaller meeting rooms. Often a single meeting will use many different types of spaces, such as large exhibit halls, banquet facilities, breakout meeting rooms, and theater seating. As societies mature and become more sophisticated, so too does the meetings market. The diverse nature of the meetings industry, and the characteristics of various event types, necessitates a variety of alternative facilities. The main types of public assembly facilities are summarized as follows:  Hotel and Meeting Room Facilities: Many markets have developed a multipurpose or small convention or conference center complex within or adjacent to a hotel, as a means of improving the lure of the hotel and subsidizing its operations. These facilities, which have been undertaken in markets of varying sizes, are frequently developed through public-private partnerships whereby the public sector may assemble land, build parking, and fund meeting space components as a way to execute a project. Often the various project elements are developed as a joint project, in terms of timing, but in some markets, the public elements have been built first with the hotel coming later.  Conference Centers: Conference centers provide a specialized combination of meeting spaces, high- tech amenities, and services in support of training and education initiatives. Most conference centers DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 4 Industry Trends | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 32 are operated in conjunction with a hotel, although some are part of a university and a small number operate as stand-alone venues.  Convention Centers: On a larger scale, convention centers combine the meeting capabilities of a conference center with exhibit space. These facilities are designed to meet the broad needs of the Meetings, Incentive, Convention, and Exhibition (M.I.C.E.) industry and primarily serve as economic development enterprises for the community. Their mission is to bring outside visitors and associated spending into the community, although they may also host large locally oriented consumer events.  Exposition Halls: These facilities focus exclusively on product and consumer shows that require little meeting space. Pure exposition halls generally exist in markets that have other convention and/or meeting venues available or in situations where the private sector has responded to a lack of supply by developing an inexpensive facility. Fairgrounds also offer facilities that are exposition-oriented.  Trademarts: Trademarts or merchandise marts typically combine an exhibit facility, permanent display space that is occupied by businesses under long-term lease agreements, and specialized office space. These facilities provide space for the wholesale distribution of products in specific industries, including furniture, clothing, sporting goods, and computers. These facilities occur in large cities that serve as regional wholesale and marketing centers.  Fairgrounds: Fairgrounds combine a number of assembly and exposition elements on a large campus. Facilities may include one or more exhibition halls, along with arena and meeting hall functions, although little meeting space is usually offered on the property. Typically located away from downtown areas, fairgrounds provide acres of parking for large events.  Events Centers: Events centers, or arenas, are used as multi-purpose facilities to host a wide range of events, from small to mid-size conventions, and trade shows, to sporting events, concerts, and banquets. These facilities typically host many more locally oriented events than dedicated exhibit and ballroom space within convention centers. Events centers also incorporate breakout and meeting rooms, and often have a full commercial kitchen to cater banquet events. TYPES OF EVENTS As outlined above, the events industry is comprised of various different types of events, including:  Conventions or Congresses: These are privately held meetings of professional groups and associations that commonly take place in hotels, convention centers, or civic centers. These meetings attract association members and/or affiliates wishing to meet similar professionals and share ideas. DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 4 Industry Trends | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 33 A convention can consist of a single meeting or a number of concurrent meetings during the event period, and are increasingly featuring exhibits to communicate ideas. These types of conventions are known as “conventions with exhibits.” The term “convention” is generally used in North America, and “congress” is used in Europe, and sometimes in Asia, to describe the same type of events. However, conventions typically use more exposition space and have a more social nature than congresses, but this distinction is narrowing as congresses are becoming more like North American-style conventions. Conventions are generally “high-impact” events since attendees normally stay several nights in the host city, generating hotel room nights. In addition to hotel expenditures, attendees purchase other goods and services while in the city such as food and beverage, souvenirs, and transportation that not only contribute to local business but also increase local and state tax revenues.  Temporary Expositions and Trade Shows: These events are designed to bring buyers and sellers of industry-specific products together. Trade shows usually cater to a specific industry, however, multi- industry “trade fairs” also occur. Most trade show events are not open to the public. Like conventions, trade shows offer a forum for exchanging industry ideas. They differ from conventions, however, because they are more product-and sales-oriented. Tradeshows are exhibit- intensive, and exhibitors prefer column-free, single-story, open-space facilities in which they construct temporary custom booths for product display. Tradeshows typically attract a large number of attendees, who originate from outside the host city but tend to have a shorter average stay than convention attendees. The event programs run for a period of three to six days, with equal or slightly less time allocated to setting up and tearing down the event booths. Therefore, individual attendees may have less impact on the host city’s economy than a convention attendee. Temporary exposition events are increasing the number of meetings held during an exhibition in an attempt to educate buyers about products, and as a result, are becoming more like “conventions with exhibits” (see previous point). However, in comparison to more formal conventions with exhibits, temporary expositions tend to maintain higher attendance figures, but a shorter average length of stay for attendees. The following table displays the most frequent event categories for conventions with exhibits and trade shows. DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 4 Industry Trends | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 34 Table 4 - 1  Assemblies: These are largely association, fraternal, or religious events that require a large plenary hall, arena, or stadium. Similar to conventions, they are characterized by large numbers of attendees originating from outside the host city.  Conferences: These are smaller convention-type events and are typically held in meeting rooms and ballrooms or in formal conference centers. Like conventions and congresses, they are often sponsored by associations and corporations, and address current issues and information. Attendees and users typically demand high-quality facilities and most originate from out of town.  Incentive Meetings: The corporate market uses incentive meetings as a way to reward employees, combine recreation and business meetings, or to mix employees and clients in a business and recreational setting. Product launches, key account conferences, and award events are all-important aspects of this type of event.  Consumer Shows: These are public, ticketed events featuring exhibitions of merchandise, such as clothing, food, and antiques. These events are typically held in public assembly facilities such as hotels, convention centers, and exposition centers. They normally attract large numbers of attendees, and depending upon the size, location, and type of merchandise being displayed, these shows normally attract primarily local residents. The following table displays a summary of the most prevalent types of consumer shows. Aerospace & Aviation Energy & Mining Police & Fire Fighters Agriculture & Farming Facilities, Engineering & Maintenance Printing & Graphics Apparel & Fashion Food & Beverage Radio, TV & Cable Art & Architecture Forest Products Religious Associations Funeral Industry Safety & Security Building & Construction Government Sanitation & Waste Management Business & Finance Home & Garden Furnishings & Supplies Science Chemicals Libraries Stores & Store Fittings Communications Manufacturing & Industrial Textiles Computers & Computer Applications Medical & Health Care Transportation Education Military Travel Industry Electrical & Electronics Ocean Supplies & Equipment Veterinary Source: Trade Show Week Data Book Top Event Categories - Conventions with Exhibits & Trade Shows DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 4 Industry Trends | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 35 Table 4 - 2  Entertainment Events: Including performing arts, concerts, sporting events, and circuses that can be accommodated by a variety of facilities. Although entertainment facilities will typically be dedicated to one or more specific uses, multipurpose venues, such as convention centers, can accommodate a large variety of events, especially if they are designed appropriately. Entertainment event promoters require unobstructed space to arrange the performance and to allow attendees to view the show.  Permanent Expositions: Permanent expositions are designed to promote commerce by establishing permanent exhibit areas for manufacturers. Although these facilities cater primarily to businesses, the general public is usually allowed to enter. Show promoters, however, discourage public attendance, as the primary intent of the exhibition is to promote wholesale trade. Permanent expositions use three types of product promotions: - Sample Showcases: These are small advertising displays of various new products. While company representatives do not staff the permanent facility of the showcase, personnel are usually available to provide buyers with information regarding the companies and their products. - Export Marts: These are facilities with staffed booths displaying domestic manufactured products. Export marts are typically arranged by industries and are meant to be one-stop-shops for prospective domestic and international buyers. The display areas are typically 200 to 600 square feet in size and are staffed with three to five people. In industries such as fashion, where seasonal sales patterns occur, booths are only staffed during peak sales periods, despite the fact that annual rents are collected for the space. - Import Marts: Foreign manufacturers use these to display their products to domestic buyers. Like export marts, they are typically arranged by industries, are 200 to 600 square feet in size, and are sometimes staffed (only during buying seasons). Often, trade associations representing mart Antique Golf RV & Camping Art Health & Beauty Sewing & Needlework Auto Holiday Sports Good & Guns Boat Home & Garden Super Sale Computer Jewelry & Gem Toys & Hobbies Ethnic Jobs, Career & College Travel Film Motorcycle Weddings Flower Outdoor Sports Woodworking Gift & Craft Pets Source: Trade Show Week Data Book Top Event Categories - Consumer Shows DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 4 Industry Trends | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 36 tenants sponsor temporary expositions, thereby creating a regional draw for the mart. If significant exposition space is provided, these events can become the dominant industry event in the country or region. EVENT SPONSORS The meetings industry includes a wide variety of event types that are sponsored by different types of businesses and organizations, including:  Corporations: Business meetings are an integral part of the meetings industry. They represent the majority of meetings held throughout the world, and topics can be as wide-ranging as the industries themselves. For the purposes of this report, corporate meetings will refer to off-site conferences, sales, and incentive meetings, such as the events that are often held at hotels.  Associations: Trade and business associations represent certain industries and strive to keep members informed about current issues related to their industry. Associations sponsor meetings and conventions to serve this educational and informational purpose, and also assist in marketing efforts by holding trade shows where members can display and sell their products.  Educational Institutions: Universities are increasingly recognizing that more continuing education occurs at meetings, rather than in classroom settings, and are becoming an important player in developing and sponsoring continuing education activities and conferences.  Government: All levels of government hold meetings for the purpose of education, discussion of issues, and policy deliberation. In many countries, governments also create and sponsor trade shows in order to support sectors of the economy.  Independent Show Organizers, Incentive Houses, and Publishing Companies: The meetings industry has grown so large that it now supports a growing number of organizations that specialize in the business of producing meeting events. These businesses may work on behalf of corporations and associations, and handle all aspects of a meeting, from booking attendees to event operations. Many publishing companies have trade show and convention management divisions, while incentive houses not only work for their corporate and association clientele, but may also develop programs and conferences as moneymaking ventures.  Social, Military, Education, Religious, Fraternal, and Ethnic (SMERFE) Organizations: These organizations typically sponsor convention or assembly events that are not always business-related and tend to be geared more towards social networking and discussion of issues. DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 4 Industry Trends | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 37 MEETING PLANNER SELECTION CRITERIA The American Society of Association Executives (ASAE), which is a membership organization of more than 22,000 association executives in 50 countries throughout the world, recently surveyed its members regarding their criteria for selecting a convention center destination. These executives are responsible for selecting destination(s) for a variety of events, ranging from small meetings to large exhibitions. The following figure illustrates the average responses of members who placed events in convention centers, including both regional and local events, as well as national and international events. Figure 4 - 1 The survey respondents gave a high level of importance to the following criteria when selecting a convention center for either a regional, state or local event, or a national or international event:  Availability and size of meeting facilities,  Quality of service,  Overall affordability,  Membership appeal, and  Availability of hotel rooms. 0% 10% 20% 30% 40% 50% 60% 70% Meeting Facilities Quality of Service Overall Affordability Membership Appeal Hotel Rooms Rotation Policy Driving Accessibility Facility Type Climate ADA Facilities Dining / Entertainment Meeting Venue Selection Criteria Regional / State / Local Events National / International Events Source: ASAE, Johnson Consulting DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 4 Industry Trends | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 38 Meeting planners considered climate, ADA facilities, and dinning/entertainment options as least important when selecting a venue. In situations where there are only a limited number of cities with sufficient exhibit space to meet a planner’s requirements, data from TradeShow Week, indicates that the most important selection criteria relates to hotel supply. More specifically, the top five criteria when selecting a city, as opposed to a venue, are:  Hotel room prices and quality (69 percent of respondents);  Open Dates (66 percent);  Number of Hotel Rooms and Capacity (60 percent);  Hotel Block Attrition Rates and Issues (56 percent), and  Labor Costs and Service Issues (43 percent). A competitive advantage for cities is gained by having an established and effective tourism and hospitality industry that provides event producers and attendees with high quality experiences and encourages interest in returning for subsequent events and meetings. IMPACT OF ECONOMIC CONDITIONS A recent survey of event planners, conducted by Red 7 Media, indicates that 75 percent of respondents have changed their site selection process due to the recent recession. Perhaps the most significant, and expected, change is that more than 50 percent of planners are now looking for value locations and lower costs for venues, hotels and services, with 46 percent of respondents stating that they are also now booking smaller hotel blocks. The top five criteria currently used for selecting a city for an event are:  Hotel Room Prices (72 percent of respondents);  Convention Center and Exhibition Hall Size (66 percent);  Airport Capacity and Airfares (64 percent);  Hotel Room Availability (60 percent), and  Availability of Open Dates (57 percent). DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 4 Industry Trends | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 39 When compared to the Tradeshow Week data discussed previously, it is apparent that hotels continue to play an important role in differentiating cities. Concurrently, the importance of airlift has grown significantly, reflecting restricted travel budgets for many organizations, along with service and capacity cuts by many airlines. Approximately 64 percent of planners who have changed their selection criteria believe that the changes will remain in place for at least the next two years. EVENT ATTRIBUTES The following analysis of event attributes is based primarily upon data obtained from the Professional Convention Management Association’s (PCMA) 2010 survey, which is the most current survey data available at this time. NUMBER OF ATTENDEES An important element to consider in terms of the appropriate size and scope of meeting facilities is the size distribution of the events it will pursue. Based on the PCMA’s 2010 survey, 44 percent of respondents hosted less than 1,000 persons at their largest convention, meeting or exposition in 2009 (which is the most recent data available). The following figure shows the distribution of attendees based on the PCMA’s survey responses. Figure 4 - 2 Between 2008 and 2009, close to half of survey respondents (48 percent) saw a decrease in the number of attendees at their largest convention, meeting or exhibition, a consequence of broader economic downturn. It is worth noting, however, that attendance is not always negatively impacted by an economic downturn because attendees seek different things from events during periods of economic growth versus periods of decline. More specifically, during a period of economic prosperity, attendees are typically motivated to attend a convention, meeting or exhibition by a desire to gain new industry information and technology that may < 500, 25.0% 500-999, 19.0% 1,000-2,499, 17.0% 2,500-4,999, 13.0% 5,000-9,999, 12.0% 10,000-24,999, 9.0% 25,000+, 4.0% No response, 1.0% Attendance at Largest Convention/ Meeting/ Exhibition (2009) Source: PCMA, Johnson Consulting DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 4 Industry Trends | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 40 give them an advantage over their competitors. During periods of economic downturn and recession, attendees are motivated by a desire to understand what is happening in their market and stay abreast of the latest opportunities and challenges facing their industry. This means that key personnel will continue to attend what they consider to be their industry’s most important conventions, trade shows and meetings, even during periods of economic decline. A recent survey of major global convention center executives, conducted by the International Association of Congress Centers (AIPC) and Red 7 Media (Research and Consulting), indicates that total attendance contracted by 6.3 percent throughout North America in 2010. Notwithstanding this, venues were optimistic about attendance levels in 2011, forecasting robust growth of 8.3 percent. Analysis of the distribution of international meeting events by number of attendees reveals a trend towards smaller events. This finding is consistent with a movement towards smaller events in the worldwide convention, exhibition, and meeting industries. The following figure displays the distribution of international meeting events by number of attendees. Figure 4 - 3 The majority of international meeting events (57.5 percent) are in the 100-500 attendee range. Very few of these meeting events have over 3,000 attendees (4.5 percent), while 86 percent have 1,000 or fewer attendees. EVENT SPACE REQUIREMENTS The following figure highlights the distribution of shows by required exhibit space. As shown, the majority of events (nearly 66 percent) utilize less than 100,000 square feet of space. Figure 4 - 4 < 100, 13.1% 100-500, 57.5% 501-1,000, 15.4% 1,001-3,000, 9.5% 3,000+, 4.5% International Meetings by Number of Attendees Source: UIA, Johnson Consulting DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 4 Industry Trends | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 41 Recent surveys by Red 7 Media (Research and Consulting) indicate that the number of exhibitors has grown slightly (by 1-2 percent) in 2010, while total net square footage requirements have remained flat. The following figure presents the importance of various specifications and amenities of event space to convention and exhibition producers based upon data from a recent Red 7 Media study. As shown, the most important factors relate to column-free exhibit space (94 percent of respondents), efficient loading dock facilities (94 percent), Wi-Fi (87 percent), meeting rooms (82 percent), state-of-the-art audio-visual capabilities (79 percent), and quality restaurants (69 percent). The following figure shows the importance of various convention center specifications and attributes. 65.60% 19.60% 7.70% 2.50% 1.50% 1.30% 0.03% 1.70% Distribution of Events by Required Exhibit Space (sq.ft) < 100,000 sq.ft 100,000-199,999 sq.ft 200,000-299,999 sq.ft 300,000-399,999 sq.ft 400,000-499,999 sq.ft 500,000-599,999 sq.ft 600,000-699,999 sq.ft 700,000+ sq.ft Source: Tradeshow Week, Johnson Consulting DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 4 Industry Trends | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 42 Figure 4 - 5 SEASONALITY Meetings occur throughout the year. However, just as the number of people taking vacations displays distinct seasonal patterns, so does the level of meeting activity vary from month-to-month. Since 2000, the first and fourth quarters have generally seen the most stable growth. Second and third quarters saw contraction during the beginning of the decade but growth in the past several years, with demand fluctuating much more during the second and third quarters as opposed to the first and fourth. LENGTH The average length of events recorded by the Union of International Associates (UIA) is four days. The increasing trend in meeting events is to concentrate activities into a shorter period of time. However, the UIA’s criterion of a minimum of three days causes its data to exclude a growing number of shorter meeting events from its analysis. PURPOSE OF EVENTS Corporate activity is responsible for a large share of overall meeting events, with demand often being generated from the local region, although cities and regions that are particularly attractive as destinations can attract meeting attendees from a much broader area. The following figure displays the distribution of corporate meeting types by purpose of meeting. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Column-Free Exhibit Space Efficient Loading Dock Wi-Fi Meeting Rooms State-of-the-Art Audio-Visual Quality Restaurant(s) High-Teach Meeting Rooms "Green" Initiatives Ballroom(s) Business Center High Ceilings in Meeting Theater for Presentations Entertainment Stages/ Staging Space for Fashion Show Boardroom(s) Importance* of Various Convention Center Specifications & Amenities to Convention & Exhibition Producers (2010) "Essential" or "Very Important" Source: Red7Media, Johnson Consulting DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 4 Industry Trends | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 43 Figure 4 - 6 Training seminars, sales meetings, and incentive trips account for the largest share of overall meeting attendees. As shown, the meeting industry is diversified, with no single meeting type accounting for over 25 percent of overall attendees, and seven distinct categories of meetings all contributing significant volumes of attendees. This diversification helps to stabilize overall event demand, as the demand from each individual sub-sector of meeting events ebbs and flows with changes in business cycles and technology. Overlaying and adding to this is the university training and conference sectors. There are hundreds of conference centers internationally that are affiliated with four year and community college institutions. They host some of the above events, but also create a huge volume of business in their own right. ECONOMIC IMPACT The PCMA’s 2010 survey indicates that the average economic impact of respondents’ largest convention, meeting or exposition was $3.6 million to the host destination in 2009, up from $3.0 million in 2008. The following figure shows the economic value of survey respondents’ meetings to host communities in 2009. Training Seminars, 23% Sales, 22% Incentive Trips, 18% Professional / Technical, 10% Management, 10% Other, 10% Product Introductions, 6% Stockholder, 1% Purpose of Corporate Meeting Events Source: Tradeshow Week, Johnson Consulting DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 4 Industry Trends | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 44 Figure 4 - 7 The average economic impact per trade show attendee is estimated to be $1,000 per visit, with each convention or trade show attendee generating, on average, 1.8 total hotel room nights. Generally, association conventions generate the greatest economic impact, reflecting high levels of attendance and associated hotel, restaurant, retail and transportation spending. Exhibitors and corporate sponsors also contribute significantly to the overall impact of an event. The following figure shows the ‘Convention and Meetings Eco-System’ as defined by Tradeshow Week, which identifies the activities that attendees will typically engage in outside of the convention center and hotel. Less than $1 mil, 40.0% $1 mil - $4.9 mil, 31.0% $5 mil - $9.9 mil, 15.4% $10+ mil, 12.0% No Response, 2.0% Economic Value of Largest Meeting to Host Destination (2009) Source: PCMA, Johnson Consulting DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 4 Industry Trends | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 45 Figure 4 - 8 MARKET CONDITIONS RECENT TRENDS As a whole, the meeting industry has experienced sporadic growth in the past ten years, dipping slightly in the early 2000’s, then experiencing a significant period of growth followed by another wave of decline over recent years, reflecting broader economic conditions and the negative publicity associated with hosting meetings in upscale or resort destinations. The impact of the recession on the global meetings industry was widespread - new hotel and meeting facility construction was delayed, and in many cases abandoned, corporations and associations dramatically reduced their meetings and events budgets, attendance levels fell sharply, and negative perceptions of the value of face-to-face meetings prevailed across governments, media and the general public. Conditions in North America’s convention and meetings industry generally remained flat through 2011, in line with the broader economy, however 2012 is seeing the transition of the industry towards recovery. The following figure shows the typical recovery and growth cycle experienced in the convention and meetings industry. Ve nue & Hotel Activities Visit Restaurants 92% Entertain- ment 52% Stay Over Post-Event 25% Cultural & Education 17% Outdoor Recreation 6% Other Activities 10% Family Events 2% Sports Events 12% Pre-Event Site-Seeing 19% Shopping 44% Source: TradeShow Week, Red 7 Media, Johnson Consulting DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 4 Industry Trends | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 46 Figure 4 - 9 While new construction in the global convention center market remains slow, renovations are increasing, with the recent AIPC survey revealing that 60 percent of respondents having a new building or expansion project currently underway or in the planning stages. In North America, 59 percent of survey respondents are currently considering an expansion, refurbishment or development project. Client demand and competitive pressure, including increasing investment by hotels in properties with quality exhibition and meeting space, is driving development in the industry. OUTLOOK As identified by Red 7 Media (Research and Consulting), and further commented on by Johnson Consulting, key indicators of improvement in the industry include:  Consumer spending: 70 percent of business events serve markets in which consumers ultimately purchase the products and services.  Attendance vs. Exhibitors: Attendance is continuing to perform better than exhibitor participation, which is a good sign.  Exhibitor spending: This will likely remain soft throughout the remainder of 2012;  Hotel rates: 2011 rates for rooms blocks were level with, or slightly higher, than 2010 rates. Rates remained flat in 2011 but are expected to show slight increases in 2012; Slowdown 2-3 Years Expansion 2-3 Years Peak Recovery 3-4 Years Growth Cycle Source: Red 7 Media, Johnson Consulting DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 4 Industry Trends | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 47  Corporate events market: There is potentially significant pent-up demand, as 50 percent of major global convention center managers consider meetings to be the second strongest sector, after associations, for near-term growth.  New events: a sure sign of recovery will appear when new shows outside of the medical and IT sectors, and not just limited to conventions, are launched. In 2011, PCMA survey respondents expect a 24 percent increase in the number of meetings and a 38 percent increase in attendance over 2009 figures. Almost 90 percent of respondents (89 percent) were not planning to cancel any events through 2010-2011, compared to only 54 percent in 2009. The following figure shows recent and forecast trends in the meetings and exhibition industry, based on the Center for Exhibition Industry Research (CEIR) 2010 Index Report. The Index considers utilization (net square footage), number of exhibitors, number of attendees, and revenue and shows positive momentum beginning in mid-2009 and continuing through 2013 (the end of the forecast period). Figure 4 -10 The emergence of positive indicators within the market, along with continued improvement in the broader economy, is expected to drive a recovery in North America’s convention and meetings market. Industry forecasts indicate that the market will return to pre-recession levels by 2015. 90 95 100 105 110 115 120 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Index Historic & Forecast Conditions Index - Meetings & Exhibition Industry Net SF Exhibitors A endees Revenue Source: CEIR, Johnson Consulting DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 4 Industry Trends | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 48 SUMMARY There are literally millions of conventions, tradeshows, and meetings happening annually throughout North America and around the world. The number of associations is changing, as is the number of corporations, but meetings will continue to occur. Although 2011 was a flat year and there may have been a slight structural change in meeting formats, and hence volume, the convention market saw signs of stabilization since the downturn in 2008-2009 with the majority of meeting planners and event organizers maintaining current event levels and anticipating event attendance to remain consistent or improve going forward. Furthermore, the rationale for meetings and associations still exists and will continue to do so. DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com SECTION V COMPRABLE FACILITIES ANALYSIS DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 5 Comparable Facilities Analysis | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 49 COMPARABLE FACILITIES ANALYSIS In order to understand the market opportunity for the proposed Multi-Purpose Event Center, this section presents case study profiles of a set of regional and national comparable facilities. The key operating characteristics of these facilities are provided in the following profiles, and include:  Size and character of facility program spaces.  Recent and/ or planned expansions.  A demand and financial profile, including the number and types of events and operating revenues and expenses, where available. Information about event demand and the financial performance of comparable facilities provides insight into the general parameters within which the proposed Multi-Purpose Event Center can reasonably expect to operate. The following table summarizes the key attributes of the comparable facilities identified as part of this analysis. DRAFT Section 5 Comparable Facilities Analysis | FINAL DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 50 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Table 5 - 1 Key Characteristics of Regional Facilities and Markets - Fairgrounds Proposed Multi-Purpose Events Center The Ranch Events Complex (Larimer County Fairgrounds) Douglas County Fairgrounds & Events Center Eagle County Fairgrounds La Plata County Fairgrounds & Events Center Puyallup Fair & Events Center Location Location Estes Park, CO Loveland, CO Castle Rock, CO Eagle, CO Durango, CO Puyallup, WA Metropolitan Area Fort Collins-Loveland Fort Collins-Loveland Denver Edwards Durango Seattle-Tacoma-Bellevue Demographic Characteristics (2012) Metroplitan Area Population 306,080 306,080 2,611,271 60,112 52,142 3,503,118 Median Age (Years)36.0 36.0 36.0 35.0 39.0 37.0 Median Household Income $58,422 $58,422 $61,079 $69,537 $57,791 $68,121 Facilities (SF) Function Space 29,929 SF 36,000 SF & 12,500 SF Exhibition Halls; 7,200-seat Bud Events Center 29,000 SF Events Center; 4,800 SF Hall 5,000 SF Exhibit Hall 10,000 SF Exhibit Hall 84,972 SF Americraft ShowPlex; 45,200 SF Pavilion; 19,500 SF Expo Hall;2,800 SF Fair View Club; 13,400 SF Centennial Building; 5,265 SF Fair Farm; 12,354 SF Restaurant Building Meeting Rooms(s)978 SF 5,760 SF + Larimer Conference Center (96,000 SF) 3,300 SF Conference Room -5 Meetring Rooms (5,270 SF)12,768 SF Arena(s)Existing Arenas On-Site 2 Outdoor Arenas (Dirt)1 Indoor Arena (Dirt); 1 Outdoor Arena (Dirt) 32,500 SF Eagle River Center (Indoor Arena with Dirt Floor); 1 Outdoor Arena (Dirt) 1 Outdoor Arena (Dirt) 1 Outdoor Arena (Dirt/Grass); 25,000 SF Indoor Arena (Dirt); 18,696 SF Open-Air Covered Arena (Dirt/Asphalt) Other (Barns/Pavilions etc.) Proposed Barns in Subsequent Phases; Adjacent Sports Complex 4 Pavilions 2 Barns; Pavilion - 33,000 SF Pavilion; 2 Baseball Field; Outdoor Recreation Space Barn Complex; 5-acres of Landscaped Grounds (SillyVille) Events and Attendance # Events (per annum)Refer to Demand Projections 2,268*126 124 388 145 Total Attendance (per annum)Refer to Demand Projections -10,000+-1.6 million Revenue and Expenses Net Income (Loss) ($'000s) - Most Recent Year Refer to Financial Projections ($635)($1,000)--$1,300 Source: Relevant Facilities, Statistics Canada, Demographics Now, JohnsonConsulting * Total bookings including move in and move out days DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 5 Comparable Facilities Analysis | FINAL DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 51 THE RANCH EVENTS COMPLEX (LARIMER COUNTY FAIRGROUNDS) LOVELAND, COLORADO LOCATION: The Larimer County Fairgrounds and Events Complex, officially named ‘The Ranch’, is located just off Interstate Highway 25, approximately 55 miles north of Denver and 80 miles south of Cheyenne. The first phase of the Complex opened in September 2003. OWNERSHIP/ MANAGEMENT: The Ranch is owned and operated by Larimer County, with the exception of the Budweiser Events Center, which is privately managed by Global Spectrum. Development and operations of The Ranch was made possible through two ballot initiatives, as follows:  In 1998, voters approved a one-year sales tax of 0.1 percent to buy 150 acres for the new fairgrounds.  In 1999, voters approved a sales tax of 0.15 percent for 20 years to finance construction and operations of the Complex. FACILITIES: Facilities at The Ranch include:  Budweiser Events Center: Opened in September 2003 at a cost of $26 million. The 250,000 square foot Center seats 5,300 for hockey and other ice events, 6,000 for basketball, and 7,200 for end-stage concerts. The facility also offers 777 private club seats and 24 private luxury suites. The facility sold the naming rights to Eagle Distributing for $1.5 million over 20 years. The Center is home to the Central Hockey League’s (CHL) Colorado Eagles and the Colorado ICE indoor football team. In addition, the center hosts concerts, rodeos, ice shows, conventions and trade shows, family shows, and other entertainment and attractions. According to the Center’s management, the complex hosts an average of 850,000 guests annually.  First National Bank Exhibition Hall: A 55,000 square foot (gross) facility that opened in the fall of 2003. The facility includes the 18,000 square foot North Hall and the 18,000 square foot South Hall, which can be divided into the 6,000 square foot Morehouse Hall and the 12,000 square foot Cowley Hall. The North and South Exhibition Halls can be used separately or together, accommodating up to 2,000 people in theater-style seating or 176 10’ by 10’ booths, and can be further subdivided into areas of 12,000 square feet and 6,000 square feet. Both Halls are heated and air-conditioned, and have easy loading access. DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 5 Comparable Facilities Analysis | FINAL DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 52 Adjacent to the Exhibition Hall is the Larimer County Conference Center, which comprises five meeting rooms, ranging in size between 510 and 625 square feet. The entire facility also includes three restrooms, three lobbies, ticket booth, concession area, and offices. The following figure provides a pictorial overview of facilities at the First National Bank Exhibition Hall and the Larimer County Conference Center. Figure 5 - 1 The First National Bank Exhibition Hall is used to host a variety of events including trade shows, meetings, parties, expositions, and festivals. The Exhibition Hall is owned by Larimer County and managed by the staff of the Larimer County Fairgrounds.  Thomas M. McKee 4-H, Youth and Community Building: Opened in 2006, and comprises 25,000 square feet of exhibition and multi-purpose space. The facility includes the McKee Exhibition Hall (12,500 square feet, further divisible into three areas of between 2,000 square feet and 7,500 square feet), 3 multi-purpose rooms (1,117 square feet each), and 3 4-H classrooms (870 square feet each). DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 5 Comparable Facilities Analysis | FINAL DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 53 In its inaugural year (2006), the facility hosted 704 meetings. In the following year, this figure more than doubled to 1,460 meetings.  Ranch-Way Feeds Indoor Arena: The Ranch-Way Feeds Arena and Pavilions opened in the fall of 2003. The facility includes three buildings that comprise a total of 172,000 sq. ft. of exhibit space, as follows: - Ranch-Way Feeds Indoor Arena: 76,000 square feet, 1,300 seating capacity; - Ranch-Way Feeds East Livestock Pavilion: 48,000 square feet, with approximately 38,000 square feet of concrete floorspace that can accommodate up to 196 10’ by 10’ booths, and; - Ranch-Way Feeds West Livestock Pavilion: 48,000 square feet, with the same capacity as the East Pavilion. The East and West Pavilions can be used separately or together. Immediately adjacent to the arena and pavilions are the Longhorn Outdoor Arena and the Round Up Outdoor Arena, both of which have arena floors of 150’ by 240’ and seating capacity for 100 people. The Arena and Pavilions are owned by Larimer County and managed by the staff of the Larimer County Fairgrounds. Total attendance averages around 900,000 people annually, across the three facilities. Events held at the venue include trade shows, all types of agricultural shows, equestrian events, concerts, family shows (Disney/Sesame Street/Circus), motocross, graduations, boat/ RV shows, car shows, motorcycle rallies, meetings, hockey, and basketball and volleyball games and tournaments.  Round-Up Outdoor Arena: 150’ x 240’ arena with dirt flooring.  Longhorn Outdoor Arena: 120’ x 240’ arena with dirt flooring.  Two Ranch-Way Feeds Livestock Pavilions: 48,000 square feet each, with over 300 stalls. The following figure provides a pictorial overview of facilities at The Ranch. DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 5 Comparable Facilities Analysis | FINAL DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 54 Figure 5 - 2 In 2009 the Embassy Suites Loveland – Hotel, Spa and Conference Center opened on the grounds of The Ranch. The 263-room Hotel is managed by John Q. Hammons. Additional facilities comprise 40,000 square feet of flexible meeting space, including a 28,000 square foot grand ballroom, designed to accommodate a wide range of events from auto and boat shows, to high-tech exhibitions, graduations, special events and business meetings. DEMAND SCHEDULE: The number of events at The Ranch is measured by bookings, which includes move in and move out days. In 2012, there were 2,269 bookings across the entire campus. The following table provides a breakdown of total bookings by facility for 2012. DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 5 Comparable Facilities Analysis | FINAL DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 55 Table 5 - 2 The Ranch Estimated # Events* (2012) Facility/ Building Bookings Budweiser Events Center 220 Indoor Arena/ Pavilions/ Outdoor Arena 308 4H, Youth & Community Building 1,046 First National Exhinition Hall/ Conference Center 419 Outdoor Space/ Parking Lots/ RV Space 276 TOTAL 2,269 Source: The Ranch, Johnson Consulting * Relates to number of bookings, including move in and move out days The following table provides a breakdown of events held at the First National Exhibition Hall and Conference Center, by season. Table 5 - 3 First National Exhibition Hall & Conference Center The Ranch Estimated # Events* by Season (2012) Season # Bookings % Bookings Winter 76 18% Spring 97 23% Summer 11 6 28% Fall 130 31% TOTAL 419 100% * Relates to number of bookings, including move in and move out days Source: The Ranch, Johnson Consulting As shown, the First National Exhibition Hall and Conference Center is busiest in Fall (31 percent of bookings), followed closely by Summer (28 percent) and Spring (23 percent). Although total bookings ar e lowest in Winter (18 percent), the facilities are still highly utilized. REVENUE & EXPENSES: The following table provides The Ranch’s revenue and expense statement for the most recent year. DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 5 Comparable Facilities Analysis | FINAL DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 56 Table 5 - 4 The Ranch Revenue & Expense Statement (Most Recent Year) ($'000s) Most Recent Ye ar Revenues Operations $1,239 Thomas M. McKee Building 36 Budweiser Events Center 2,962 Campus-Wide Events 633 Facility Rental 648 Total Revenues $5,518 Expenses Operations $2,119 Thomas M. McKee Building 298 Budweiser Events Center 2,637 Campus-Wide Events 813 Facility Rental 287 Total Expenses $6,153 Net Operating Income (Loss)($635) Source: The Ranch, Johnson Consulting OBSERVATIONS: The Ranch presents an example of a highly utilized facility within Larimer County. It is a very successful operation and has received national acclaim for its design. Seasonality of usage of the National Bank Exhibition Hall and Conference Center is fairly evenly dispersed. This has important implications for likely demand at the proposed Multi-Purpose Events Center at Stanley Park Fairgrounds, and particularly the ability of the new facility to attract significant demand outside of the Summer months, if targeted and marketed correctly. It is thought that some organizational linkage between The Ranch and the proposed Multi-Purpose Event Center at Stanley Park Fairgrounds could help Stanley Park attract demand. Investigating strategies for such a marketing, and perhaps financial, association is encouraged. DOUGLAS COUNTY FAIRGROUNDS AND EVENTS CENTER CASTLE ROCK, COLORADO LOCATION: The Douglas County Fairgrounds and Events Center (DCFEC) is located between Denver and Colorado Springs, just off Interstate 25. OWNERSHIP/ MANAGEMENT: The DCFEC is owned and operated by Douglas County. DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 5 Comparable Facilities Analysis | FINAL DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 57 FACILITIES: Facilities at the DCFEC include:  Events Center: The Events Center opened in 2001 at a total cost of $6.4 million, including land purchase costs of $1 million. The 49,390 square foot facility includes a 29,066 square foot Exhibit Hall, with a sealed concrete floor, along with 2 Conference Rooms totaling 3,296 square feet. The Exhibit Hall is utilized for banquets, concerts, trade shows, conventions, seminars, meetings, weddings, and sporting events. The Exhibit Hall can accommodate up to 1,208 people in banquet seating, 3,284 guests for concerts, and 130 exhibit booths (10’ by 10’). The Conference Rooms have a combined maximum 200 people and serve as breakout space, as well as being utilized for meetings, networking, training sessions, social gatherings, and weddings.  Indoor Arena: 118’ by 280’ sand base arena, with bleacher seating for 2,005 spectators. The Arena is utilized for equine events, dog shows, trade shows, training, and rodeos.  Outdoor Arena: 135’ by 300’ sand base arena, with a covered grandstand with capacity for 2,441 spectators, and additional bleacher seating for 360 people.  Kirk Hall: 4,800 square foot Hall, accommodating up to 280 people in banquet seating. The Hall is utilized for receptions, reunions, conferences, and club activities, and offers a 1,200 square foot outdoor patio, along with a full-service kitchen.  East Grounds: Large Animal Barn (150 Horse Stalls; Dirt Floor); Brown Horse Barn (64 Stalls; Dirt Floor); Green Horse Barn (28 Stalls; Dirt Floor).  Multi-Purpose Barn: Comprises the 6,600 square foot North Section, with a maximum occupancy of 440 people, and the 3,500 square foot South Section, with a maximum occupancy of 233 people.  Whitman-Lowell Pavilion: 60’ by 120’ covered outdoor show area, with portable bleacher seating for 250 spectators.  CSU Extension Building: Includes 2 conference rooms of 785 square feet (maximum capacity 55 persons), and 660 square feet (maximum capacity 44 persons).  Louivers Village Clubhouse: Includes a 1,447 square foot Auditorium (maximum capacity 96 persons), 568 square foot Billiard Room (maximum capacity 38 persons), and the 311 square foot Card Room (maximum capacity 15 persons). The following figure provides a pictorial overview of facilities at the DCFEC. DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 5 Comparable Facilities Analysis | FINAL DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 58 Figure 5 - 3 DEMAND SCHEDULE: The DCFEC’s event schedule indicates that there were a total of 126 events booked at the venue in 2012, totalling 620 event days. With specific regard to the Event Center, there were 55 event bookings, totalling 85 event days. REVENUE & EXPENSES: Operations and maintenance of the DCFEC are supported by Douglas County’s General Fund. Revenues generated from the use of public facilities and rental of facilities at the DCFEC, which are paid into the General Fund, totalled $207,195 in 2010 and $200,000 in 2011. Total expenditures related to DCFEC operations were $1.1 million in 2010 and $1.2 million in 2011. The DCFEC has a staff of 6 full-time equivalent employees. DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 5 Comparable Facilities Analysis | FINAL DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 59 OBSERVATIONS: The DCFEC provides an example of a fairgrounds that incorporates a true multi-purpose venue. Although the Events Center at DCFEC is slightly larger than the venue envisaged for Stanley Park, and serves a slightly different market, it attracts a diversity of events, reflecting, in part, the flexibility created by a sealed-concrete floor. EAGLE COUNTY FAIRGROUNDS EAGLE, COLORADO LOCATION: Situated approximately 125 miles to the west of Denver, the Eagle County Fairground (ECF) relates to a 15-acre site built on the west bank of the Eagle River, just off Interstate 70. Development of the site began in in the 1970s, although the Eagle County Fair and Rodeo, which is held at the ECF each year, dates back to 1939. OWNERSHIP/ MANAGEMENT: The ECF is owned and operated by Eagle County. FACILITIES: Facilities at the ECF include:  Eagle River Center: A 45,000 square foot building comprised of a 125’ by 260’ dirt floor indoor arena, with capacity for 2,260 persons and seating for 650 spectators. The Center is utilized for banquets, dog shows, circuses, barrel racing, team roping, bike races, rodeos, and trade shows. Built in 2005 at a total cost of $4 million, plans are currently being considered for a $3 million expansion to the Eagle River Center to add RV hook-ups, at least 100 covered horse stalls, enclosed warm-up facilities, and upgraded footing for the arena to attract larger, more prestigious equestrian events. The expansion would be funded primarily through local sales tax revenues.  Pro-Rodeo Arena and Grandstand: A 135’ by 250’ outdoor dirt floor arena, with seating for 2,200 spectators for rodeos and up to a maximum of 4,000 spectators for concerts. The Arena is utilized for rodeos, team roping, concerts, demolition derbies, barrel races, and jeep crawling.  Exhibit Hall: 5,000 square foot hall with capacity for 214 people in banquet seating and 160 exhibit booths (10’ by 10’). The following figure provides an overview of facilities at the ECF. DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 5 Comparable Facilities Analysis | FINAL DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 60 Figure 5 - 4 DEMAND SCHEDULE: The ECF is home to the Eagle County Fair, which attracts an average of 10,000 attendees each year over a 4-day period, of whom an estimated 70 percent are local residents. Management of the ECF does not maintain any other demand data, however the event schedule indicates that there are 124 events booked at the ECF during 2012, totalling 570 event days. Of these, the majority of event and event days relate to events held in the Eagle River Center (70 events and 400 event days), with a total of 43 events being held in the Exhibit Hall, totalling 134 event days. Information from Management indicates that the Eagle River Center is currently operating at 50 percent utilization. REVENUE & EXPENSES: Specific revenue and expense statements for the ECF were not available. However, Eagle County’s Facilities Management Department, which is responsible for operations at the ECF along 9 other facilities throughout the County, generated $90,800 in revenues in 2011 and incurred $2.7 million in expenses, including debt service. During the same period, the Eagle County Fair and Rodeo generated $141,500 in revenues and incurred $313,991 in expenses. Operations of both the Facilities Management Department and the Fair and Rodeo are supported by the General Fund. DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 5 Comparable Facilities Analysis | FINAL DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 61 Information from Management indicates that recent operating deficits at the Eagle River Center have ranged between $15,000 and $52,000 annually. It costs $3,200 to change the flooring from dirt to carpet for non- animal shows, and takes four days to complete. The Center covers approximately 32 percent of its annual costs. OBSERVATIONS: As indicated by Management, it is generally perceived that the Eagle River Center is an under-performing regional asset that has great promise. The Center was initially built as a multi-purpose venue, but without a clear business plan or understanding of the facility’s potential niche. Its dirt floor restricts its flexibility, and expansion plans are now seeking to re-focus the venue primarily on indoor equestrian events. Management envisages that the facility could be utilized for equestrian events during the summer and the dirt floor could be removed in the winter for non-animal shows. More broadly, Eagle County and specifically the Town of Vail provide an example of a location that has successfully leveraged its tourism assets to become a true year-round destination. In 2008, the Vail Town Council adopted the Vail Economic Development Strategic Plan, with one of the key objectives being to “focus on building a year-round economy; reduce economic seasonality by growing the summer economy (May – October) at a rate greater than the winter economy (November – April).” Although this is the inverse of the seasonality of tourism demand in Estes Park, both locations share the same underlying desire to create a year-round destination. The proposed Multi-Purpose Event Center in Estes Park has real potential to increase overall demand during the non-summer months, if targeted and marketed correctly. LA PLATA COUNTY FAIRGROUNDS AND EVENTS CENTER DURANGO, COLORADO LOCATION: Situated in Durango, the La Plata County Fairgrounds and Events Center (LPCFEC) relates to a 32-acre site that is home to the annual La Plata County Fair. OWNERSHIP/ MANAGEMENT: The LPCFEC is owned and operated by La Plata County. FACILITIES: Facilities at the LPCFEC include:  Exhibit Hall: A 10,000 square foot Exhibit Hall, along with two 1,300 square foot meetings rooms (La Plata Room and Lightner Room), and an additional three meeting rooms that can be used separately or combined to offer 2,670 square feet of meeting space. The Exhibit Hall building also includes a commercial kitchen.  Fred W. Klatt, III, Arena: An outdoor (dirt floor) rodeo arena with grandstand seating for 1,600 spectators, along with livestock pens.  Pavilion: 33,000 square foot pavilion utilized for livestock shows and exercising horses. DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 5 Comparable Facilities Analysis | FINAL DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 62  Outdoor Recreation Facilities: Two baseball fields, along with open space for outdoor and recreational activities. DEMAND SCHEDULE: Annual events at the LPCFEC include the La Plata County Fair and Fiesta Days, with year-round events including business and social functions (training classes, business meetings, receptions and community fundraisers), consumer and hobby shows (auctions, trade shows, bazaars and carnivals), equestrian activities, rodeos and livestock events, and recreational activities including baseball, soccer and aerobics classes. In 2012 there were 388 events scheduled at the LPCFEC, totalling 1,307 event days. Of these, it is estimated that 322 events, totalling 934 event days, utilize the Exhibit Hall building for part of their event. The following table provides an estimated breakdown of scheduled events, by event type, at the entire fairgrounds facility and specifically at the Exhibit Hall. Table 5 - 5 La Plata Fairgrounds & Events Center Estimated # Events (2012) Entire Facility Exhibit Hall Building Trade Shows 6 6 Consumer Shows/ Fairs 14 13 Conferences/ Seminars 21 21 Meetings 210 210 Banquets 13 5 Sports/ Entertainment 42 13 Social Events 13 10 4H Events 24 14 Other 45 30 TOTAL 388 322 Source: La Plata Fairgrounds & Events Center, Johnson Consulting REVENUE & EXPENSES: Operations and maintenance of the LPCFEC are supported by La Plata County’s General Fund. In 2011 expenditures totalled $746,629, representing a slight decrease from 2010 ($765,324 of expenses) and continues the general downward trend observed since 2009, when expenditures totalled $787,821. The LPCFEC has a staff of 10 full-time equivalent employees. OBSERVATIONS: LPCFEC provides an example of an attractive fairgrounds facility that incorporates a highly utilized, multi-purpose events center, albeit on a smaller scale than the Event Center proposed at Stanley Park. Durango is a popular year-round tourism destination that, similarly to Estes Park, boasts a variety of outdoor recreational offerings. DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 5 Comparable Facilities Analysis | FINAL DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 63 PUYALLUP FAIR AND EVENTS CENTER PUYALLUP, WASHINGTON LOCATION: Situated in Puyallup, approximately 10 miles to the southeast of Tacoma, the Puyallup Fair and Events Center (PFEC) relates to a 160-site that is home to the Puyallup Fair and the Spring Fair. These grounds are of comparable size to what is envisaged for Stanley Park Fairgrounds once the masterplan is completed. OWNERSHIP/ MANAGEMENT: The PFEC is owned and operated by the Puyallup Fair (officially known as the Western Washington Fair). FACILITIES: Facilities at the PFEC include:  Americraft ShowPlex: A 122,000 square foot Exhibition and Conference Center that is the newest facility at the PFEC, having opened in 2005. The Center is utilized for musical and performance events, ceremonies, recitals, athletic events, and seminars, and can be configured to accommodate up to 3,400 attendees in for concerts and other spectator events. The following table provides a breakdown of meeting and event space within the Center. Table 5 - 6 Payallup Fair & Events Center - Americraft ShowPlex Summary of Exhibit and Meeting Space Size (SF)Capacity (# of Persons) Individual (Smallest) Combined (Largest)Theater Classroom Banquet Exhibition Center Exhibit Hall - 84,972 7,400 4,200 5,300 West Bay 23,400 - 2,000 1,100 1,400 Center Bay 38,272 - 3,400 2,000 2,500 East Bay 23,300 -2,000 1,100 1,400 Subtotal Exhibit Hall SF 84,972 Meeting Rooms Number of Rooms 6 5 Smallest Room 1,440 - 100 60 80 Largest Room - 2,880 225 130 160 Subtotal Meeting Room SF 12,768 Total 97,740 Source: Payallup Fair & Events Center - Americraft ShowPlex, Johnson Consulting The following figure provides an overview of the floorplan of the Center. DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 5 Comparable Facilities Analysis | FINAL DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 64 Figure 5 - 5  Pavilion: An indoor, multi-purpose Pavilion with concrete flooring. The two-story venue offers 21,150 square feet of exhibit space on the First Floor, along with and a 1,550 square foot dining area, and an additional 22,500 square feet of exhibit space on the Second Floor. The Pavilion is utilized for consumer and trade shows, auto shows, parties, receptions, seminars and meetings. The following figure provides an overview of the floorplan of the Pavilion. DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 5 Comparable Facilities Analysis | FINAL DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 65 Figure 5 - 6  Expo Hall: A multi-purpose venue offering 19,500 square feet of exhibit space. The Expo Hall is utilized for consumer and trade shows, private parties, receptions, seminars and meetings. The following figure provides an overview of the floorplan of the Expo Hall. DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 5 Comparable Facilities Analysis | FINAL DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 66 Figure 5 - 7  Fair View Club: Offers approximately 2,800 square feet of event space that can accommodate up to 160 guests for receptions or 150 guests for banquets, and is utilized for business seminars, social gatherings, wedding receptions, and private parties.  Centennial Building: Offers 13,400 square feet of column free events space, with a concrete floor. The Centennial Building is utilized for consumer and trade shows, auto shows, conventions, parties, and meetings.  SillyVille: An open area comprising 5-acres of park-like, landscaped grounds that can accommodate groups of 100 or more. SillyVille is utilized for corporate events, weddings, receptions, reunions, and outdoor picnics.  Northwest Concert Center: An open-air arena, with grandstand seating for 5,500 spectators, and additional bleacher, box and ground level seating for 4,868 spectators (maximum capacity 10,368 persons). The Center is utilized for concerts, rodeos, bull riding, graduations, and cultural festivals.  W.H. Paulhamus Arena: A 25,000 square foot indoor arena, with dirt flooring. The Arena offers permanent seating for 1,961 attendees, and additional temporary seating, and is utilized for equestrian events, livestock shows and auctions, swap meets, equipment shows, and motorcycle racing. There are four meeting rooms attached to the Arena, ranging in size from 1,875 square feet to 4,985 square feet, and comprising a total of 14,685 square feet of meeting space.  Barn Complex: Comprises Draft Horse Barn (23 stalls), two 4H Horse Barns (125 stalls in total), and the Poultry/ Rabbit Barn (55 stalls), which can be utilized separately or combined to offer a total of 203 stalls (23,260 square feet of stall space), along with office and storage space. DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 5 Comparable Facilities Analysis | FINAL DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 67  Fair Farm: A 5,265 square foot facility with concrete flooring. The Fair Farm is utilized banquets and meetings (maximum capacity of 240 persons), as well as animal shows and can accommodate portable horse stalls.  Show Arena: An 18,696 square foot open-air, covered arena with dirt/asphalt flooring. The Arena is utilized as commercial exhibit space during October-May, and for livestock and horse shows during May-August, and can accommodate up to 1,000 persons in potable bleacher seating. Attached to the Show Arena is the Beef Barn, which is a partially enclose building that can accommodate 55 box stall or tie stall for up to 150 cattle.  Restaurant Building: A 12,354 square foot facility, with concrete flooring, that is utilized for auctions, bazaars, meetings and seminars. The following figure provides an overview of facilities at the PFEC. DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 5 Comparable Facilities Analysis | FINAL DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 68 Figure 5 - 8 PURPLE GATE GREEN GATE REDGATE GATEBLUE GATE Meridian St S GOLDPARKING BLUEPARKING REDPARKING 15th Ave SWHigh w a y 5 1 2 5th St SW 2nd St SW 3rd St SW 4th St SW pond GREEN PARKING ORANGE RV PARKING PURPLE PARKING PURPLE PARKING PURPLE PARKING PURPLE PARKING PURPLE PARKING EXITONLY ORANGE PARKING ORANGE PARKING ORANGE PARKING GREEN RV PARKING GREEN PARKING GREEN PARKING 7th St SW 9th Ave SW5th St SW15th Ave SW9th St SW BARN GATE ORANGE GATE EXITONLY SillyVille NORTHBARN GATESERVICE GATE Enter/ExitGreen Parking Entrance forPurple andOrange Gatesand Parking Entrance forGreen Gateand Parking 18 6 7 8 17 M PN H 34 14 37 G 32 J F F K 50 20A 20C 20E I L Q E B C D A 41 4 39 LIVESTOCK FACILITIES & ARENAS A.Poultry & Rabbit s Barn B.4-H Horses Barn C.4-H Horses Barn D.Draft Horses Barn E.Puyallup Fair Farm F.Meeting Rooms / Arena Office G.W.H. Paulhamus Arena H.Small Livestock Bar n I.Town & Countr y Arena J.Large Livestock Barn K.Loading Arena L.Small Show Arena M.Dairy Barn Complex N.Beef Barn P.Large Show Arena Q.Rodeo Barn revised 02/22/07 - subject to change Fair Operations 4. Contest Arena 7. Showplace Stage 8. ShowPlex - Food Cour t 6. ShowPlex Exhibition Center 14. Pavilion - (2nd floor)17.Pavilion - (1st floor) 18. Tent 20A. Fair Administration (2nd floor) 20C. Expo Hall (1st floor) 20E. Northwest Concert Center 32. Restaurant Building 34. Oldfield Western Heritage Center 37. ShowPlex Conference Center 41.SillyVille Train Station 50. Centennial Building Restrooms Telephones Reserved for Food Concessions Crosswalk Crosswalk Pedestriansuse Crosswalkwhen crossingthe street GOLD 39. DEMAND SCHEDULE: The most recent data for the PFEC indicates that the venue hosted 145 events, totalling 247 event days. The PFEC attracts an average of 1.6 million attendees annually, of whom approximately 1.1 million attend the Puyallup Fair. REVENUE & EXPENSES: The most recent data for the PFEC indicates that revenues totalled $23.7 million, with expenses totalling $22.4 million. Over $2.4 million of expenses accounted for property taxes, city taxes, and insurance, as well as reimbursement to the City of Puyallup for police, public work, and fire and rescue services. The balance of expenses related to operations, with all remaining revenue being put back into improvements at the PFEC for future growth. The PFEC has a staff of 55 employees, with an addition 1,900 temporary staff hired annually for the Puyallup Fair. OBSERVATIONS: Although PFEC is much larger than Stanley Park Fairgrounds, and offers a larger amount of multi-purpose event space than the proposed Event Center, it provides an example of an attractive and DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 5 Comparable Facilities Analysis | FINAL DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 69 successful fairgrounds that incorporates multi-purpose venues. Puyallup is located at a similar distance from a major city (Seattle) as Estes Park. It sets the stage for visualizing what Stanley Park Fairgrounds could evolve to after several generations of tradition pass, and once better facilities are provided and the management team expands as new facilities are added. CONCLUSIONS Each of the facilities profiled above were developed in response to a community’s desire to generate significant benefits for local and regional economies, to stimulate year-round tourism, and for urban renewal purposes. Although there is significant variation in the size, orientation, and role that each of these facilities play in their communities, most are firmly grounded in their mission to encourage agricultural advancement and demonstrate how a simple fair/rodeo operation can evolve into a year round exhibition and tradeshow destination with the right facilities and leadership. The proposed Multi-Purpose Event Center at Stanley Park Fairgrounds presents a unique and appropriate opportunity to capitalize on a number of key characteristics of the location and the local and regional economies, including:  A lack of multi-purpose space in the surrounding local and regional areas.  Existing demand that could grow if better facilities were provided.  Easy access to the site, via the established road network.  Location within a tourism-based community.  Possible association with The Ranch, a sister property in the same county, which would help on marketing and equipment sharing.  Strategic location at the gateway to Rocky Mountain National Park and abundant recreational opportunities.  Adjacency to sports complex, which could be used to help attract indoor sports competitions to the new Multi-Purpose Event Center.  A good number of hotel rooms that need more demand.  A need for tourism demand drivers during the non-peak season.  Strong community interest in developing a new facility. DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 5 Comparable Facilities Analysis | FINAL DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 70 These factors, along with many others, provide a strong case for the development of a Multi-Purpose Event Center at Stanley Fairgrounds. Johnson Consulting is of the opinion that the proposed facility, if targeted and marketed appropriately, has the potential to become a real focal point in the community, enhancing the overall role and contribution of the Fairgrounds to the local and regional economies by creating a year-round venue that fills a void in the marketplace. We do agree with management that the equestrian niche is viable for expansion. We also expect special events, consumer shows and hotel marketed events to use the complex, particularly during the non-peak season. DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com SECTION VI INTERVIEWS SUMMARY AND DEMAND POTENTIAL DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 6 Interviews Summary and Demand Potential | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 71 INTERVIEWS SUMMARY AND DEMAND POTENTIAL To evaluate the market potential for the proposed Multi-Purpose Event Center, Johnson Consulting conducted a variety of interviews and surveys with potential users of the facility, business leaders, economic development officials, operators of existing facilities, and area hotel managers, among others. This section presents a summary of feedback provided to Johnson Consulting. INTERVIEWS SUMMARY Johnson Consulting conducted a variety of interviews in person and over the telephone. Notable individuals, groups and organizations interviewed included:  Members of the Estes Park Hotel Community  The Town of Estes Park  Members of the Downtown Business Community  National/Regional Show Promoters & Organizers  The Scottish Irish Festival  Operator of the Estes Park Conference Center  Horse event producers  Consumer event producers  Rooftop Rodeo  Stanley Park Management The above groups represent a broad spectrum of the Estes Park business, hospitality and tourism sectors and are intimately familiar with the market area and sources of demand that may support an expo and event facility. Some of the key issues and observations identified by the interviewees are summarized under the following subheadings. CURRENT MARKET DYNAMICS  There are a lack of facilities to host corporate meetings and social functions. The Stanley Hotel mentioned it could host numerous meetings in a shared format between its hotel and facilities at the Fairgrounds, including corporate events, weddings and association events.  The current Estes Park Conference Center is attractive, but there is insufficient exhibit space. The adjacent hotel, The Rocky Mountain Park Inn, is at a quality level that is inferior to the quality of the Conference Center. If the hotel was improved, and if exhibit space were added at Stanley Park Fairgrounds, the two facilities could work together, as the distance between the two facilities works. Some events use the existing complex that way. The incidence of this occurring would increase over time with expanded and improved facilities.  The community loses events to other communities due to a lack of meeting space and a lack of funds for incentives to attract events, as happens in other locations. DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 6 Interviews Summary and Demand Potential | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 72  The reformatted CVB has experienced leadership and is focused on the destination development of Estes Park. If the new Multi-Purpose Event Center is built, there will need to be greater emphasis on the selling and booking of the facility by all parties in the Town. Current sales efforts, community- wide, are disjointed and are potentially leaving event and attendance demand on the table, especially for the Estes Park Conference Center. The sales efforts of the new venue and other existing assets should be seamless and well coordinated with a stronger sales team organization than is currently in place.  Input from the management team at The Ranch confirmed that Estes Park is attractive for equestrian events. It is their recommendation to continue targeting these events, but supplement this demand category with consumer shows oriented to the outdoors, sports competitions that generate room nights, more festivals, and come conventions and tradeshows. SITE DYNAMICS AND EXISTING OPERATIONS  Management operates the Stanley Park Fairgrounds as part of the City’s Community Services Department. This has been good in the past because the current facility is not heavily utilized during certain times of the year, which reduces operating overhead, and allows facilities and equipment to be shared between downtown events and events held at Stanley Park. Also, privately promoted events, such as the Scottish Irish Festival, have started downtown and then relocated to the Fairgrounds. We see this happening more in the future. Some interviewees were concerned that once events leave downtown, some economic impact shifts to the Fairgrounds area. This is true, so strategies, such as trolley and shuttle bussing between the two areas should be enhanced.  The existing site is well located. The area closest to the lake is reserved for car and RV parking. The sports complex to the east of the site was originally part of the Fairgrounds holding. It is now dedicated to sports, and plays a supplemental role for the project by offering open land and parking, both of which are used.  The aesthetics of the site are good, with road access around the site, good visibility of the lake and mountains, and adjacent businesses that can benefit from the attendees at the fairgrounds.  The upper land, furthest from the lake and closest to the hotel supply is where the expansion will occur. The logic for this is the facilities will be less intrusive on adjacent homes and businesses than the RV parking would be. This area is generally closer to the Conference Center and support businesses, however this part of the site is tighter than the RV parking area and could affect the ease of future expansion. Regardless, the proposed site for expansion and redevelopment does offer locational advantages over the RV parking area.  Linking the hotels, the adjacent businesses and the downtown area, by paths and trolleys, is encouraged. DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 6 Interviews Summary and Demand Potential | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 73 The interviews overall revealed support for the development of the new Multi-Purpose Event Center to promote increased economic development and greater year-round visitation. Speaking with members of the hotel community, it became clear that they are very much behind the development of this project and that the impacts created by the new facility will improve the performance of their respective hotel properties. The development of the new facility will elevate the need for a stronger sales organizational structure for both the Multi-Purpose Event Center and the Estes Park Conference Center, which will complement each other. There is some concern by members of the community that the new facility will not achieve the intended results, but a strong sales team, with convention and event expertise, will largely mitigate this. POTENTIAL USERS SURVEY In order to gauge overall interest in the proposed Multi-Purpose Event Center, and assist in determining the attributes that will make the venue most appealing to potential users, Johnson Consulting conducted a survey of members of the meetings and event planning industry. Survey recipients included state, regional, national and corporate users, who are currently active in Colorado and the broader western U.S. market, have been active in the past or may have an interest in entering the market in the future. Our survey instrument was developed utilizing a web-based program and was distributed electronically. The survey sent to each recipient was identical. The survey remained ‘active’ for a period of three weeks, during which time recipients were sent multiple survey reminders. We achieved a response rate of 15 percent. Industry standards indicate that a 10 percent response rate is generally outstanding for this type of analysis. As such, our sample size is considered to be statistically sound. FAMILIARITY WITH ESTES PARK The following figure provides a breakdown of the familiarity of survey respondents with the destination of Estes Park. DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 6 Interviews Summary and Demand Potential | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 74 Figure 6 - 1 As shown, the majority of survey respondents (60 percent) were familiar with Estes Park, with half (50 percent) being ‘Very Familiar’ or ‘Familiar’ with the destination, and 10 percent being ‘Somewhat Familiar’ with Estes Park. The remaining 40 percent of respondents were not familiar with Estes Park. The majority of survey respondents (60 percent) have visited Estes Park before. QUALITY AND ATTRACTIVENESS The following figure provides a breakdown of the ratings assigned to Estes Park, by survey respondents, when asked to rate the destination in terms of quality and attractiveness, from an event planner’s perspective. 0% 5% 10% 15% 20% 25% 30% 35% 40% Not Sure Not Familiar Somewhat Familiar Familiar Ve ry Familiar 0% 40% 10% 20% 30% Are you familiar with the destination of Estes Park, CO? Source: Johnson Consulting DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 6 Interviews Summary and Demand Potential | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 75 Figure 6 - 2 As shown, the predominant rating was ‘Good’ (40 percent), followed by 30 percent of survey respondents who were ‘Not Sure’ about the quality of Estes Park and its offerings. A further 20 percent of respondents classified Estes Park’s quality and attractiveness as ‘Fair’, and 10 percent of respondents classified Estes Park as ‘Excellent’, indicating that half of respondents (50 percent) classified Estes Park as ‘Good’ or better in terms of quality and attractiveness. The following observations were made with regard to specific elements of Estes Park’s quality and attractiveness:  Image: The predominant response was ‘Good’ (44 percent), followed by ‘Not Sure’ (33 percent). A further 33 percent of respondents classified Estes Park’s image as ‘Excellent’, indicating that approximately two-thirds of respondents (67 percent) classified Estes Park as ‘Good’ or better in terms of image.  Destination Appeal: Equal proportions of respondents (22 percent) classified Estes Park’s destination appeal as ‘Excellent’, ‘Good’ or ‘Fair’, indicating that 44 percent of survey respondents classified Estes Par as ‘Good’ or better in terms of destination appeal. The remaining 34 percent were ‘Not Sure’ about Estes Park’s destination appeal.  Hotel Room Availability: The predominant response was ‘Not Sure’ (44 percent), followed by ‘Fair’ (22 percent) with regard to Estes Park’s hotel room availability. Equal proportions of respondents (11 percent) stated that Este Park’s hotel room availability was ‘Excellent’, ‘Good’, or ‘Poor’. 0% 5% 10% 15% 20% 25% 30% 35% 40% Not Sure Poor Fair Good Excellent 30% 0% 20% 40% 10% How would you rate Estes Park overall in terms of quality and attractiveness? Source: Johnson Consulting DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 6 Interviews Summary and Demand Potential | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 76  Quality of Food and Beverage: Excluding respondents who were unsure about the quality of Estate Park’s food and beverage offerings (44 percent), the predominant response was ‘Fair’ (33 percent), followed by ‘Good’ (22 percent).  Safety/ Security: More than half of respondents (56 percent) were unsure about t he levels of safety and security in Estes Park, with all other respondents (44 percent) indicating that safety and security is ‘Good’.  Accessibility: The predominant response was ‘Fair’ (44 percent), with 33 percent of respondents being unsure about Estes Park’s accessibility. The remaining 22 percent of respondents rated Estes Park’s accessibility as ‘Good’.  Air Travel/ Car Travel: The predominant response was ‘Fair’ (56 percent), followed by ‘Not Sure’ (33 percent). The remaining 11 percent of respondents classified Estes Park as bring as being ‘Good’ with respect to air and car travel.  Entertainment/ Nightlife: Aside from the 56 percent of respondents who were unsure about Estes Park’s entertainment and nightlife offerings, equal proportions of respondents (22 percent) identified Estes Park’s entertainment and nightlife as ‘Fair’ or ‘Poor’.  Appropriateness for Events you Manage: The predominant response was ‘Not Sure’ (44 percent), with equal proportions of respondents (22 percent) classifying Estes Park as ‘Good’ or ‘Poor’ w ith respect to appropriateness for the events they manage. The remaining 11 percent of respondents stated that Estes Park’s appropriateness for their events was ‘Excellent’, indicating that approximately one-third of respondents (33 percent) consider Estes Park to be ‘Good’ or better for their events. In summary, Estes Park faired best (predominantly ‘Good’ or higher) with respect to image and destination appeal, followed by appropriateness for the events managed by survey respondents. Estes Park faired slightly worse (‘Good’ or ‘Fair’) with respect to hotel room availability, and safety and security, followed by quality of food and beverage offerings, accessibility, and air and car travel. Estes Park faired worst (predominantly ‘Fair’ or ‘Poor’) with respect to entertainment/ nightlife. The most important finding was the lack of awareness. If new facilities are added, they must be accompanied by a strong and ongoing marketing campaign. This is where tie in with The Ranch could be most helpful, representing Stanley Park Fairgrounds as part of the portfolio of facilities offered in the County. Additionally, associating the project with the sales staff at the Conference Center, the Stanley Hotel and the YMCA would also aid in expanding awareness of the Fairgrounds and the Estes Park community. SELECTION CRITERIA Survey respondents were asked to rate the importance of various factors in selecting a destination and venue as ‘Not Important’, ‘Somewhat Important’, ‘Important’, ‘Very Important’, or ‘Extremely Important’. Key observations relating to survey responses are summarized as follows: DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 6 Interviews Summary and Demand Potential | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 77  Image: The predominant response was ‘Somewhat Important’ (38 percent), followed by equal proportions of respondents (25 percent) who consider image to be ‘Important’ or ‘Very Important’. The remaining 12 percent of respondents classified image as being ‘Extremely Important’ when selecting a destination or venue.  Destination Appeal: More than half of respondents (52 percent) stated that destination appeal is ‘Very Important’ when selecting a destination. A further 12 percent classified it as ‘Not Important’, ‘Somewhat Important’, ‘Important’, or ‘Extremely Important’, indicating that almost three-quarters of respondents (74 percent) consider appeal to be ‘Very Important’ or higher when selecting a destination.  Hotel Room Availability: The predominant response was ‘Extremely Important’ (45 percent). A further 22 percent of respondents indicated that hotel room availability is either ‘Very Important’ or ‘Important’ when selecting a destination, indicating that more than three-quarters of respondents (77 percent) consider hotel room availability to be ‘Very Important’ or higher.  Quality of Food and Beverage: The predominant response was ‘Very Important’ (38 percent), followed by equal proportions of respondents (25 percent) who classified the quality of food and beverage as being ‘Extremely Important’ or ‘Important’ when selecting a destination. This indicates that 63 percent of respondents consider the quality of food and beverage to be ‘Very Important’ or higher.  Safety/ Security: The predominant responses were Extremely Important’ (34 percent) and ‘Very Important’ (33 percent), indicating that 67 percent of respondents consider safety and security to be ‘Very Important’ or higher when selecting a destination.  Accessibility: Almost two-thirds of respondents (63 percent) classify accessibility as being ‘Extremely Important’, with a further 25 percent classifying it as ‘Very Important’, indicating that 88 percent of respondents consider accessibility to be ‘Very Important’ or higher when selecting a destination. The remaining 12 percent of respondents consider safety and security to be ‘Important’.  Air Travel/ Car Travel: The predominant response was ‘Extremely Important’ (45 percent), followed by ‘Very Important’ (33 percent), indicating that 78 percent of respondents classify air and car travel as being ‘Very Important’ or higher. The remaining 22 percent of respondents consider air and car travel to be ‘Important’.  Entertainment/ Nightlife: The predominant response was ‘Somewhat Important’ (38 percent), followed by equal proportions of respondents (25 percent) who consider entertainment and nightlife to be ‘Very Important’ and ‘Important’. The remaining 12 percent of respondents identified entertainment and nightlife to be ‘Not Important’.  Technology at Facility: More than half of respondents (51 percent) consider technology to be ‘Extremely Important’ when selecting a facility. A further 15 percent classify it as being ‘Very DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 6 Interviews Summary and Demand Potential | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 78 Important’, indicating that more than three-quarters of respondents (76 percent) consider technology to be ‘Very Important’ or higher. In summary, the factors considered by survey respondents to be most important in selecting a destination are accessibility, air and car travel, technology, and hotel room availability, followed by safety and security. In the preceding analysis, it was revealed that survey respondents rate Estes Park fairly well with respect to safety and security. However, Estes Park is only considered to rate as ‘Fair’ to ‘Good’ with respect to accessibility, air and car travel, and hotel room availability. These limitations require the venue to have realistic expectations about demand, and to upgrade hotels closest to the Fairgrounds. It would also be beneficial if the proposed redevelopment has a thoughtful technology background, and perhaps more meeting space than is currently proposed (978 square feet of meeting space). ATTRACTIVENESS OF PROPOSED MULTI-PURPOSE EVENT CENTER The following figure provides a breakdown of the perceived attractiveness of the proposed Multi-Purpose Event Center, based upon the proposed facility program of 38,000 square feet of flexible multi-purpose space, along with 978 square feet of meeting space, and additional support facilities. Figure 6 - 3 Equal proportions of respondents (33 percent) indicated that the proposed Multi-Purpose Event Center would be ‘Attractive’ or ‘Somewhat Attractive’. Only 11 percent of respondents indicated that the proposed facility would not be attractive, with the remaining 22 percent of respondents being unsure about its attractiveness. 0% 5% 10% 15% 20% 25% 30% 35% Not Sure Not Attractive Somewhat Attractive Attractive Very Attractive 22% 11% 33% 33% 0% How attractive would the proposed Multi-Purpose Event Center be to you? Source: Johnson Consulting DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 6 Interviews Summary and Demand Potential | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 79 The following figure provides a breakdown of responses when survey recipients were asked whether the addition of the proposed Multi-Purpose Event Center to the marketplace would impact the frequency or size of their events. Figure 6 - 4 Equal proportions of respondents (22 percent) indicated that the new Multi-Purpose Event Center would result in them additional events or the expansion of current events. A further 11 percent of respondents stated that the new venue would result in both more events and an expansion of current events, while the same proportions stated that the venue would have no impact on the number or size of their events. Almost one-third of respondents (33 percent) were unsure of the impact the venue would have on their events. The following figure provides a breakdown of responses when survey recipients were asked if there were any design and/ or operational features that would make the proposed Multi-Purpose Event Center stand out from other facilities (note: this was an open ended question). 0% 5% 10% 15% 20% 25% 30% 35% Not Sure Neither More Events NOR Expansion of Current Events Both More Events AND Expansion of Current Events Expansion of Current Events More Events 33% 11% 11 % 22% 22% How would the proposed Multi-Purpose Event Center Impact your Event Schedule? Source: Johnson Consulting DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 6 Interviews Summary and Demand Potential | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 80 Figure 6 - 5 As shown, the most desirable features of the Multi-Purpose Event Center are flexible space, state-of-the-art technology, including screens and projectors, and a design that maximizes, and takes advantage of, the high quality views (each 17 percent of respondents). Additional features that were identified as being desirable include quality food and beverage offerings, accessibility, ample and attractive pre-function space, a true multi-purpose ‘feel’, affordable rental rates, and high quality acoustics (each 8 percent of respondents). The following figure provides a breakdown of responses when recipients were asked how likely they would be to return to the proposed Multi-Purpose Event Center following a successful and enjoyable experience at the venue. 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% Accoustics Affordability True Multi-Purpose Feel Ample Pre-Function Space Accessibility Quality F&B Quality Views Te chnology Flexibility of Space 8% 8% 8% 8% 8% 8% 17% 17% 17% Are there any design and/ or operational features that would make the proposed facility stand out from other facilities?? Source: Johnson Consulting DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 6 Interviews Summary and Demand Potential | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 81 Figure 6 - 6 As shown, more than half of respondents (51 percent) would be ‘Very Likely’ or ‘Likely’ to return to the proposed Multi-Purpose Event Center following a successful and enjoyable event. A further 13 percent of respondents stated that they would be ‘Unlikely’ to return, while 38 percent of respondents were unsure. WESTERN U.S. AND PREFERRED VENUES Survey respondents were asked which western U.S. venues they utilize for their events and how they would rate them in terms of overall quality and attractiveness. The top venues among survey respondents were as follows:  Stanley Park Fairgrounds – rated by respondents predominantly as ‘Good’.  Arapahoe County Fairgrounds – ‘Good’.  Island Grove Fairgrounds – ‘Good’.  Douglas County Fairgrounds – ‘Good’.  Jefferson County Fairgrounds – ‘Good’.  Colorado Convention Center – ‘Good’ to ‘Excellent’. DEMAND POTENTIAL Based upon our discussions with management and sales staff at The Stanley Hotel, it is understood that over the past 12 months, the hotel has lost eight groups of an average size of 300+ people. This lost business has occurred due to insufficient meeting and event space, insufficient breakout space, and/ or lack of available 0% 5% 10% 15% 20% 25% 30% 35% 40% Not Sure Unlikely Somewhat Likely Likely Very Likely 38% 13% 0% 13% 38% If you had a successful and enjoyable experience at the proposed facility, how likely would you be to return? Source: Johnson Consulting DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 6 Interviews Summary and Demand Potential | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 82 hotel rooms to accommodate large overnight groups. The following table provides a summary of The Stanley Hotel’s lost business. Table 6 - 1 These are major events and if they were attracted to the new Multi-Purpose Event Center the Town would benefit greatly. In addition to potentially accommodating the hotel’s lost business, and thereby reducing the number of events that are lost from the Town to other venues throughout the region, sales staff at The Stanley Hotel provided the following comments with respect to the proposed Multi-Purpose Event Center:  There is a perception among meeting and event planners that Estes Park can only accommodate small events, and that even those are difficult to plan because accommodation is fully booked in the summer months and many businesses do not open in the non-peak seasons. The goal of the proposed Event Center is to drive year-round business to the Town by changing this perception.  A dedicated Event Center would cater to tradeshows, corporate and association events, and SMERF groups. The Event Center could also spur growth in the number of sporting events/ tournaments and weddings held in the Town, which cannot be accommodated at The Stanley Hotel. There is also potential for high exposure events, such as the Governor’s Conference.  A new Event Center could attract City-wide conferences to the market, which would generate revenue for smaller motels, bed and breakfasts, resorts, restaurants, and retail facilities. Client Group Arrival Date 2 Night Average # Rooms Bella Spark Productions 10/20/11 500 So Dist Men.Churches 7/26/13 460 Church of God 9/30/12 600 Mini Cooper Car 8/7/13 400 Air National Guard 11 /1/12 450 Davita 10/1/12 322 NO. Wild Sheep and Goat Council 6/2/12 490 American Public Gas Assn 7/24/12 840 Source: The Stanley Hotel, Johnson Consulting The Stanley Hotel - Lost Business (2012) DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 6 Interviews Summary and Demand Potential | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 83 CONCLUSION The general consensus among interviewees and survey respondents, who included a mix of local, state, and national users, is that there is an opportunity for the proposed Multi-Purpose Event Center to serve as a year- round, regional facility, if designed, equipped and marketed appropriately. State-of-the-art technology, flexible space, and a design that maximizes, and takes advantage of high quality views, along with quality food and beverage offerings, accessibility, ample and attractive pre-function space, affordable rental rates, a true multi- purpose ‘feel’, and high quality acoustics were identified by survey respondents as being fundamental in encouraging repeat business. Our survey revealed interest in the proposed venue from a range of groups, and specifically for events that rotate throughout the region. Particular interest was expressed from groups who host regular seminars, conferences, and meetings, many of which may be too large for the existing hotel meeting space and the Conference Center. These events will supplement demand at the new venue, which will also attract tradeshows, consumer shows, and entertainment, equestrian and sporting events. This further supports the need for a true multi-purpose venue that can be adapted to suit the needs of a variety of different types of events. DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com SECTION VII PROGRAM RECOMMENDATIONS AND PROJECTIONS DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 7 Program Recommendations and Projections | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 84 PROGRAM RECOMMENDATIONS AND PROJECTIONS Johnson Consulting has developed broad recommendations relating to the proposed Multi-Purpose Event Center, based upon the research and analyses presented in prior sections of this report. This section presents these recommendations, along with demand and operating projections for the proposed venue. Our projections relate solely to the proposed Multi-Purpose Event Center and do not consider its relationship within the broader operations of the overall Stanley Park Fairgrounds site and other assets managed by the Community Services Department. FACILITY RECOMMENDATIONS Based upon our assessment of the market opportunity for the proposed Multi-Purpose Event Center, our analysis of competitive and comparable facilities, and budget considerations, it is our opinion that the Town’s proposed development program should be implemented as follows:  Multi-Purpose Room: 26,929 square feet of flexible space, offering a concrete floor, and divisible into numerous smaller sections.  Meeting Rooms: 978 square feet of meeting and breakout space, in two separate conference rooms.  Additional Support Facilities: 628 square feet of office space, 346 square foot concession/ catering kitchen, restrooms, and other storage and support amenities. Although in our considered opinion there is an opportunity to support a larger venue at the Fairgrounds, the Multi-Purpose Event Center, as proposed, will serve the market well, particularly given budget considerations and the existing inventory of hotel meeting space in the marketplace. Consideration should be given to adding more meeting and breakout space, however not at the expense of exhibit space. Expansion should be contemplated, as referenced in the facility masterplan. We also suggest making the concourse somewhat wider. Not analyzed by us is the proposed technology platform. This is important and should be of a competitive quality allowing for WIFI, and good cell phone service. The following figure provides the preliminary floorplans for the Main and Upper Levels of the proposed Multi-Purpose Event Center, as prepared by Kenney and Associates Architects. These floorplans relate to the facility program as described above. DRAFT Section 7 Program Recommendations and Projections | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 85 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Figure 7 - 1 DRAFT Section 7 Program Recommendations and Projections | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 86 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Figure 7 - 2 DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 7 Program Recommendations and Projections | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 87 DEMAND PROJECTION The following demand projections are based upon the recommended development program for the proposed Multi-Purpose Event Center, as described above. These projections relate solely to incremental demand at Multi-Purpose Events Center, and do not take into account existing events at the Fairgrounds. The current operation is essentially seasonal. The Community Services Department operates the Fairgrounds and the downtown event facility, and oversees the contract to manage the Conference Center. The data keeping for the current operation is limited and a comprehensive demand summary and attendance profile was not provided. Generally the venue is used late Spring, Summer and early Fall. Since the facilities today are so limited, historical operations do not reflect what will occur if a dedicated Multi-Purpose venue is provided. The following table provides an overview of existing events and attendance, including events held in downtown. Table 7 - 1 As shown, total attendance at the Fairgrounds was 229,218 people in 2011, representing a slight decrease over 2010 figures, when attendance peaked at 272,343 people. It is assumed that existing events will stay, and grow, and additional events will occur throughout the year and will result in a year round operation. 2008 2009 2010 2011 Jazz Fest 1,235 1,500 1,250 628 Wool Market 7,258 7,850 8,000 7,791 Miniature Horse Show 200 283 275 250 Rooftop Rodeo 8,560 10,773 11 ,642 13,489 Elk Fest 9,000 10,000 11 ,000 11 ,500 Arabian Horse Show 350 500 400 168 Christmas Parade 18,000 25,000 22,000 20,000 Dressage Horse Show 350 400 538 527 Hunter Jumper Shows 5,000 4,200 3,500 3,000 Scottish Festival 75,000 50,000 80,000 45,000 Draft Horse Show --1,000 1,500 Other Events 6,395 6,401 5,754 - Downtown Events 85,898 11 0,073 125,984 122,640 AttendanceEvent Events & Attendance - Stanley Park Fairgrounds (2008-2011) Westernaires ---1,525 Senior Rodeo --1,000 1,200 TOTAL 217,246 226,980 272,343 229,218 % Change -4.5%20.0%-15.8% Source: Town of Estes Park, Johnson Consulting DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 7 Program Recommendations and Projections | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 88 PROJECTED EVENTS The proposed Multi-Purpose Event Center will be designed to be sufficiently flexible to accommodate the needs of numerous diverse entities. The following table summarizes the projected event schedule, by event type, for the proposed Multi-Purpose Event Center over a 10-year period from 2015, which is assumed to be the first full year of operation of the facility. Table 7 - 2 The Multi-Purpose Event Center is projected to host 100 events in 2015 (Year 1), of which 35 events are projected to be Exhibition Events and 65 events are projected to be Cultural and Social Events, as follows:  Tradeshows, Equestrian Events and Competitive Arts: Generally held by associations, professional groups, and other membership organizations. In 2015, the proposed Multi-Purpose Event Center is projected to host 15 tradeshows, equestrian events and competitive arts events, the latter of which may include national and international, cheerleading, and music and dance showcases, tournaments and competitions, among others. In 2019, tradeshows and competitive arts events are projected to stabilize at 19 events.  Consumer Shows, Specialty Shows and Festivals: Generally larger events than trade shows, in terms of average attendance. Consumer shows, specialty shows, and festivals are projected to account for 20 events at the proposed venue 2015, and stabilize at 24 events in 2019. There will be a wide array of such events, ranging from arts and craft shows, car shows, and hobby events, such as gastronomy, gardening, sports, hiking, among others.  Meetings and Seminars: Generally require less space and attract fewer attendees than events in exhibition halls or multi-purpose rooms. It is projected that the venue will host 15 meetings/ Event Type 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Exhibition Events Tradeshows, Equestrian & Competitive Arts 15 16 17 18 19 19 19 19 19 19 Consumer & Specialty Shows, & Festivals 20 21 22 23 24 24 24 24 24 24 Sub-total Exhibition Events 35 37 39 41 43 43 43 43 43 43 Cultural and Social Events Meetings & Seminars 15 16 17 18 19 19 19 19 19 19 Banquets 15 16 17 18 19 19 19 19 19 19 Concerts, Entertainment & Sporting Events 20 21 22 23 24 24 24 24 24 24 Other/ Civic Events 15 16 17 18 19 19 19 19 19 19 Sub-total Cultural and Social Events 65 69 73 77 81 81 81 81 81 81 Total 100 106 11 2 11 8 124 124 124 124 124 124 Source: Johnson Consulting Projected Events at Proposed Multi-Purpose Event Center DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 7 Program Recommendations and Projections | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 89 conferences in 2015, increasing to 19 meetings in 2019. These meetings would be room night generating events that have small trade show components and educational sessions.  Banquets: Generally smaller events that utilize a facility’s breakout or meeting space, but the differ from meetings because they feature catered meals and relate primarily to gatherings such as luncheons and award dinners. It is projected that the venue will host 15 banquets in 2015, increasing to 19 banquets in 2019.  Concerts, Entertainment, and Sporting Events: Concerts and entertainment events, including touring concerts, family shows such as circuses and truck rallies, cultural festivals, and other similar events, along with other sporting events including regional high school and college tournaments, and indoor amateur tournaments that can sell tickets, among others. Concerts, entertainment, and sporting events are projected to total 20 events in 2015, and stabilize at 24 events in 2019.  ‘Other’ Events: These are events that are not considered to be part of the categories discussed above and may include, for example, community events such as graduations, school functions, and other public events that are not consumer shows, as well as rotary meetings, 4-H and FFA events. It is projected that the venue will host 15 ‘other’ events in 2015, increasing to 19 ‘other’ events in 2019. PROJECTED ATTENDANCE The following table shows projected attendance at the proposed Multi-Purpose Events Center from 2015 through 2024. Table 7 - 3 Total attendance is projected to be 101,600 persons in 2015, increasing to 134,200 persons in 2019. Attendance is projected to increase with increases in the number of events, as shown in the previous table, but average attendance at individual events is also projected to increase year-on-year. As such, when the event Event Type 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Exhibition Events Tradeshows, Equestrian & Competitive Arts 12,500 13,300 14,100 15,200 16,400 16,700 17,100 17,500 17,900 18,300 Consumer & Specialty Shows, & Festivals 34,000 40,700 42,700 45,200 47,700 48,300 48,900 49,400 50,100 51,100 Sub-total Exhibition Events 46,500 54,000 56,800 60,400 64,100 65,000 66,000 66,900 68,000 69,400 Cultural and Social Events Meetings & Seminars 3,000 3,200 3,400 3,600 3,800 3,800 3,800 3,800 3,800 3,800 Banquets 4,500 4,800 5,100 5,600 6,100 6,300 6,500 6,700 6,800 7,000 Concerts, Entertainment & Sporting Events 34,800 36,500 38,300 40,800 43,500 44,400 45,200 46,100 47,000 48,000 Other/ Civic Events 12,800 13,600 14,500 15,600 16,700 17,000 17,400 17,800 18,100 18,500 Sub-total Cultural and Social Events 55,100 58,100 61,300 65,600 70,100 71,500 72,900 74,400 75,700 77,300 Total 101,600 11 2,100 11 8,100 126,000 134,200 136,500 138,900 141,300 143,700 146,700 Source: Johnson Consulting Projected Attendance at Proposed Multi-Purpose Event Center DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 7 Program Recommendations and Projections | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 90 schedule remains steady, as is assumed beyond 2019 (Year 5), total attendance is still projected to increase slightly. Our figures do not include people days, or attendees that come to the venue on multiple days for one event, which may be included in visitor counts at other venues. Projected attendance by event type is summarized as follows:  Tradeshows, Equestrian Events and Competitive Arts: In 2015, attendance at the venue’s tradeshows equestrian events and competitive arts events is projected to total 12,500 people, representing an average approximately 833 persons per event. This will relate to association conventions, shows relating to the outdoors and more and better equestrian events. This demand level is consistent with the type and size of trade shows and competitive arts events that the facility is expected to accommodate. Trade shows will mostly be vendor shows where companies set up booths and sell products to regional buyers. Exhibitors will be in the market for several days, while buyers may come for a day or two, unless there is an educational curriculum associated with the event. Attendees at competitive arts events would stay over multiple days and will often bring family members. The schedule of events is projected to stabilize in 2019, with average attendance projected to be approximately 863 persons per event, including attendees, exhibitors, set up personnel and media.  Consumer Shows, Specialty Shows and Festivals: Average attendance at consumer shows is projected to be 1,700 persons per event in 2015, increasing to 1,988 persons per event in 2019. This equates to a total attendance of 34,000 persons in 2015, increasing to 47,700 persons in 2019. It is noted that attendance at the existing Scottish Irish Festival alone exceeds the total anticipated for the remainder of the year for more “typical” events.  Meetings and Seminars: In 2015 average attendance at meetings held at the proposed Multi-Purpose Event Center is estimated at 200 persons per event, totaling 3,000 attendees. The demand schedule for meetings is projected to stabilize in 2019, with attendance averaging 200 persons per event and totaling 3,800 persons across all meetings. This is consistent with meeting attendance observed at comparable venues.  Banquets: In 2015, the 15 banquets projected at the Multi-Purpose Event Center are expected to attract a total of 4,500 attendees, representing an average attendance of 300 people per event. Attendance at banquets in projected to increase to 6,100 people in 2019, representing an average of 321 persons per event. We do not show a lot of banquets because the facilities elsewhere (including the Conference Center and Stanley Hotel) are very attractive. The Fairgrounds will host larger events that cannot be accommodated within existing facilities. This banquet projection is for independent banquets and social events and does not include events that are related to trade shows, or competitive arts events. DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 7 Program Recommendations and Projections | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 91  Concerts, Entertainment, and Sporting Events: The 20 concerts, entertainment, and sporting events projected in 2015 are expected to attract a total of 34,800 attendees, representing an average of 1,740 spectators per event. The demand schedule for concerts, entertainment and sporting events is projected to stabilize at 24 events in 2019, with attendance averaging 1,813 persons per event.  ‘Other’ Events: In 2015, ‘other’ events at the Multi-Purpose Event Center are projected to attract 12,800 attendees, representing an average attendance of approximately 853 people per event. Total attendance at ‘other’ events is projected to increase to 16,700 persons in 2019. Example events could include a media center for events held at Rocky Mountain National Park, marathon end and start point, or mayoral announcements. DEMAND SUMMARY In summary, the proposed Multi-Purpose Event Center is projected to host 100 events in 2015 (Year 1), attracting a total of 101,600 attendees. The event schedule is projected to stabilize at 124 events in 2019 (Year 5), with a total attendance of 134,200 people. These demand projections are in line with comparable facilities. When one compares this level of demand to the previously profiled case studies, we conclude this facility and market will perform very well. The market is very attractive and the Fairgrounds themselves have excellent locational attributes and other amenities on and near the site. FINANCIAL PROJECTION This section describes the assumptions and methodologies used to estimate the financial performance of the proposed Multi-Purpose Event Center. The operating projections presented in this section are based upon the demand projections for the venue, as described above. In most cases when projections are developed, existing operations provide perspective on what an “expansion” would operate like. Current operations are so different to the proposed operations of this new Multi-Purpose Event Center, however, that the projections focus on the operation of the new venue solely. Current events at the Fairgrounds generated revenues of $580,115 in 2011, and incurred expenses of ($1.1 million), resulting in a net operating loss of ($517,411). This deficit is generally consistent with the levels of deficit incurred during the preceding years. The following table provides a summary of event revenues and expenses at the Fairgrounds. DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 7 Program Recommendations and Projections | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 92 Table 7 - 4 SUMMARY The following table presents a summary of the projected operating statement for the first 10 full years of operation of the Multi-Purpose Event Center. Revenues include all revenues that can be used for operations. Expenses are categorized into two groups – 1) Direct Operating Expenses, which are expenses related directly to the operation of, and demand, for the facility and vary depending on the volume of activity, and 2) Indirect Expenses, which are incurred regardless of the level of activity at the facility. All revenues and expenses are inflated at a 2.5 percent annual rate. 2008 2009 2010 2011 Revenues $509,673 $555,680 $600,001 $580,115 Expenses ($1,000,173)($971,228)($1,088,758)($1,097,526) Events Revenues & Expenses - Stanley Park Fairgrounds (2008-2011) Net Operating Income (Deficit)($490,500)($415,548)($488,757)($517,411) Source: Town of Estes Park, Johnson Consulting DRAFT Section 7 Program Recommendations and Projections | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 93 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Table 7 - 5 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Revenue Event Revenue Space Rental --$214,821 $226,801 $238,780 $269,594 $290,927 $298,238 $304,207 $310,329 $316,594 $322,895 Net Food and Beverage --205,263 223,635 241,536 265,415 290,857 303,881 317,805 332,234 347,494 363,429 Equipment Rentals --44,754 48,431 52,264 60,484 66,902 70,298 73,497 76,851 80,362 84,011 Event Services --1,432 1,550 1,672 1,935 2,141 2,250 2,352 2,459 2,572 2,688 Advertising Revenue --56,250 57,656 59,098 60,575 62,089 63,642 65,233 66,864 68,535 70,249 Proposed Multi-Purpose Event Center - Pro Forma Operating Statement of Revenue and Expenses (Inflated Dollars) Other Revenue --40,000 41,000 42,025 43,076 44,153 45,256 46,388 47,547 48,736 49,955 Land Lease Income Grant Income Total Operating Revenue $0 $562,520 $599,073 $635,376 $701,080 $757,068 $783,565 $809,481 $836,284 $864,293 $893,226 Direct Operating Expenses Contract Services --63,060 68,572 74,044 82,585 90,749 94,973 99,316 103,832 108,594 11 3,559 Utilities --120,000 123,000 126,075 129,227 132,458 135,769 139,163 142,642 146,208 149,864 Maintenance & Repairs --42,964 46,494 50,174 58,065 64,226 67,486 70,557 73,777 77,148 80,650 Supplies --7,161 7,749 8,362 9,677 10,704 11 ,248 11 ,760 12,296 12,858 13,442 Other Expenses --540 580 630 730 800 840 880 920 960 1,010 Sub-total Operating Expenses $0 233,724$ 246,395$ 259,285$ 280,284$ 298,937$ 310,315$ 321,676$ 333,467$ 345,768$ 358,524$ Indirect Expenses Salaries and Wages --230,000 235,750 241,644 247,685 253,877 260,224 266,729 273,398 280,233 287,238 Employee Benefits --57,500 58,938 60,411 61,921 63,469 65,056 66,682 68,349 70,058 71,810 Sales and Marketing --50,000 51,250 52,531 53,845 55,191 56,570 57,985 59,434 60,920 62,443 General and Administrative --40,000 41,000 42,025 43,076 44,153 45,256 46,388 47,547 48,736 49,955 Insurance --40,640 45,961 49,632 54,275 59,253 61,775 64,433 67,185 70,034 73,283 Other Expenses 500,000 20,000 20,500 21,013 21,538 22,076 22,628 23,194 23,774 24,368 24,977 Sub-total Indirect Expenses 500,000$ 438,140$ 453,399$ 467,255$ 482,339$ 498,018$ 511,510$ 525,411$ 539,687$ 554,349$ 569,706$ Total Expenses 500,000$ 671,864$ 699,794$ 726,540$ 762,623$ 796,955$ 821,825$ 847,087$ 873,154$ 900,117$ 928,231$ Net Operating Income (Deficit)(500,000)$ (109,344)$ (100,721)$ (91,164)$ (61,543)$ (39,887)$ (38,260)$ (37,606)$ (36,870)$ (35,823)$ (35,004)$ Reserve for Replacement -$ 50,000$ 50,000$ 50,000$ 50,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ Net Income (Deficit) Before Debt Service (500,000)$ (159,344)$ (150,721)$ (141,164)$ (111,543)$ (139,887)$ (138,260)$ (137,606)$ (136,870)$ (135,823)$ (135,004)$ Source: Johnson Consulting DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 7 Program Recommendations and Projections | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 94 As shown, the proposed Multi-Purpose Event Center is expected to operate at a deficit of ($109,344) in Year 1, improving to a deficit of ($39,887) Year 5, and ($35,004) in Year 10. After accounting for the deposit to the maintenance reserve account, the facility is expected to operate at a larger deficit throughout the projection period. However, the projected deficits are consistent with those observed at multi-purpose facilities of similar size and orientation, as is explained in greater detail at the end of this section. It is noted that land lease and grant income, if any, have not been included in these revenue projections, as assessing the value of this income stream is outside the scope of this assignment. It is our considered opinion, however, that opportunities exist for capturing both of these revenue streams and this should be explored in further detail as the project progresses. OPERATING REVENUE The following table summarizes the assumptions applied to the various revenue stream line items included in the facility’s operating pro forma. Table 7 - 6 Key elements of these assumptions and revenue projections include:  Space Rentals: Include the temporary rental of multi-purpose and meeting space, and other facilities, utilized for events. Assumptions of rental revenue per square foot are based upon a per-event or per- square foot rate. Gross Square Foot Days (GSFD) relate to the number of square feet of occupied exhibit space multiplied by the total number of event days. The projections assume an average rental rate of $0.06 per GSFD. Space rental revenue is projected to be $214,821 in 2015, which is the Multi- Purpose Event Center’s first full year of operation, increasing to $290,927 in 2019.  Net Food and Beverage: Our projections assume that an outside organization is contracted to provide concessions and catering services. Revenue projections are based upon event attendance and reflect a percentage of gross sales that the organization will pay to the venue for the right to be the exclusive provider of concessions, novelties, and catered meals. Net food and beverage revenue is projected to be $205,263 in 2015, increasing to $290,857 in 2019. It is noted that current operations Line Item Units 2014 Base Year Revenue Space Rental per GSFD*0.06$ Revenue Assumptions Equipment Rental Rate per thousand GSFD 12.50$ Event Services % of total revenue 40% * Gross Square Foot Days Source: Johnson Consulting DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 7 Program Recommendations and Projections | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 95 allow outside promoters to conduct food and alcohol sales, with little revenue going to the venue. This is typical for operations at this scale. Food and beverage policy must be reviewed. Revenue could be as low as half the net revenue shown if current policies are extended to an expanded operation. The following table provides a breakdown of food and beverage assumptions used for this projection. Table 7 - 7  Equipment Rentals: Includes the rental of furniture, audio/visual, and other equipment. The projections are based upon the total GSFD of rental, with equipment rental revenue projected to be $44,754 in 2015, increasing to $66,902 in 2019.  Event Services: Includes revenue from services and reimbursements for labor provided to exhibitors, concert promoters, and other facility users. Facilities typically charge their users for a range of services, including electrical, cleaning, telephone, internet, decorating, audio/visual, and security. The facility will receive revenue from the provision of these services, either through direct charges provided by facility staff or through shared revenues from services provided through third-party vendors. The costs of temporary labor for stagehands, police, ushers, and paramedics, among others, are also recovered from facility tenants. Event services and cost-recovery revenue is projected to be $1,432 in 2015, increasing to $2,141 in 2019.  Advertising: Revenues are generated from the inventory of signage strategically located in the exhibition hall, concourses and other areas. Typically, advertising revenues are split between a facility owner and a private manager or marketing firm that sells the space. The total value of the advertising inventory is assumed to be $100,000 and, of this amount, 90 percent is assumed to be sold each year. Many advertising contracts are long-term, for a constant amount until renewal, however, for the Line Item Units 2014 Base Year Revenue F&B Revenue (Gross) Conventions/ Trade Shows per attendee 4.25$ Consumer Shows/ Specialty Expos per attendee 0.25$ Meetings & Seminars per attendee 3.25$ Banquets per attendee 14.00$ Entertainment Events per attendee 3.25$ Other/ Civic Events per attendee 1.25$ Source: Johnson Consulting Food & Beverage Revenue Assumptions DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 7 Program Recommendations and Projections | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 96 purpose of this projection advertising revenues have been inflated each year. Net advertising revenue retained by the facility owner is projected to be $56,250 in 2015, increasing to $62,089 in 2019.  Other Revenues: Represents miscellaneous revenues, such as those generated from vending machines. Other revenues are projected to be $40,000 in 2015, inflated to $44,153 in 2019. In 2015 total operating income for the proposed Multi-Purpose Event Center is projected to be $562,520, increasing to $757,068 in 2019. These figures are consistent with those recorded for comparable venues, as is the distribution of revenues, which shows that approximately half of revenues are attributable to space rentals and half are attributed to general operations. DIRECT EXPENSES Direct expenses are those that fluctuate based on the usage of facilities. These expenses are contract services, utilities, building maintenance and repair, supplies, and other direct expenses. The following table presents a summary of assumptions utilized to project direct expenses for the Multi-Purpose Event Center. Table 7 - 8 Key elements of these assumptions and expense projections include:  Contract Services: Depend on the level of facility utilization and are calculated based upon the number of rented GSFD. Contract services include cleaning, security, and electrical services and are projected to be $63,060 in 2015, increasing to $90,749 in 2019.  Utilities: Reflect the facility’s utility cost and are based upon the volume of activity within the venue. Utility expenses are projected to be $120,000 in 2015 and increasing to $132,458 in 2019.  Building Maintenance and Repair: Reflects unscheduled maintenance associated with particular events occurring at the facility. This expense is calculated based on the GSFD of facility use and is projected to be $42,964 in 2015, increasing to $64,226 in 2019. Line Item Units 2014 Base Year Direct Expenses Contract Services per thousand GSFD 5.00$ Direct Expense Assumptions Maintenance & Repair per thousand GSFD 12.00$ Supplies per thousand GSFD 2.00$ Insurance per attendee 0.40$ Other Expenses % of direct expenses 15% Source: Johnson Consulting DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 7 Program Recommendations and Projections | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 97  Supplies: Expenses relating to supplies are projected to be $7,161 in 2015, increasing to $10,704 in 2019.  Other Expenses: Relatively small expenditures that may vary based upon facility usage. Direct ‘other’ expenses are projected to be $540 in 2015, increasing to $800 in 2019. In 2015 total direct expenses for the proposed Multi-Purpose Event Center is projected to be $233,724, increasing to $298,937 in 2019. These figures are consistent with those recorded for comparable venues, as is the distribution of direct and indirect expenses. INDIRECT EXPENSES Indirect expenses are those that do not vary based upon the number of events or attendance levels. These expenses include:  Salaries and Wages: The projections assume that the Multi-Purpose Event Center will open with a staff of 6 full-time equivalent employees, as shown in the following table. Table 7 - 9 Total payroll is assumed to be $230,000 in 2015, increasing to $23,877 2019, although it is noted that payroll is another expense that is highly dependent on decisions made by the Town.  Employee Benefits: Estimated as a percentage of Salaries and Wages, and including workers’ compensation, taxes, health and life insurance, vacation, and pension benefits. Benefits are assumed to be 25 percent of Salaries and Wages, equating to $57,500 in 2015 and increasing to $63,469 in 2019.  Sales and Marketing: Reflect the expense incurred by the facility for marketing in addition to efforts made by outside agencies, such as the Convention and Visitors Bureau. This expense is comprised of the purchase of media and direct marketing and is projected to be $50,000 in 2015, increasing to $55,191 in 2019. This expense is inflated throughout the projection period. Position # of Employees Projected Staffing at Proposed Multi- Purpose Event Center Sales Manager 1 Event Manager 1 Engineer 1 Clerical 1 Maintenance & Set Up Staff 2 Total 6 Source: Johnson Consulting DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 7 Program Recommendations and Projections | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 98  General and Administrative: Expenses relating to expenditures for staff training, travel, and registrations and memberships, along with printing, postage, and other small expenses. Based on the experience of similar facilities, general and administrative expenses are projected to be $40,000 in 2015, increasing to $44,153 in 2019. This amount is inflated throughout the projection period.  Insurance: This expense is projected to be $40,640 in 2015, increasing to $59,253 in 2019. This amount is inflated throughout the projection period.  Other Expenses: Small expenses that are not considered general and administrative, such as uniforms, tools and equipment, and gasoline. ‘Other’ expenses are projected to be $20,000 in 2015, increasing to $22,076 in 2019. A pre-opening budget of $500,000 is also included in ‘other’ expenses. In 2015 total indirect expenses for the proposed Multi-Purpose Event Center is projected to be $438,140, increasing to $498,018 in 2019. These figures are consistent with those recorded for comparable venues, and reflect an appropriate distribution of direct and indirect expenses at the proposed venue. TOTAL EXPENSES Total expenses at the proposed Multi-Purpose Event Center, including direct and indirect expenses, are projected to be $671,864 in 2015, increasing to $796,955 in 2019. The ratio of revenues to expenses at the proposed venue is consistent with similar facilities. NET OPERATING INCOME (DEFICIT) After consideration of all operating revenues and expenses, the proposed Multi-Purpose Event Center is projected to experience a pre-opening net operating deficit of ($500,000), followed by a net operating deficit of ($109,344) in 2015, and improving to a deficit of ($39,887) in 2019. The Reserve for Replacement account funds major planned projects, such as carpet, equipment, and roof replacement, as well as other scheduled maintenance programs that are not routine or paid for by the Building Maintenance and Repair account. Although facilities usually have unique schedules for funding their Reserve for Replacement accounts, the annual amount deposited typically increases as the facility ages. For the proposed Multi-Purpose Event Center, the total deposit is assumed to be $50,000 in 2015, increasing to $100,000 in 2019. After consideration of all revenues, expenses, and the deposits to the Reserve for Replacement account, the proposed Multi-Purpose Event Center’s net operating deficit is projected to be ($159,344) in 2015 and improving to a deficit of ($139,887) in 2019. It is noted that our projections do not include grant income or land lease income, however it is recommended and assumed that there will be continual capital and grant seeking activities that can result in annual operating DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 7 Program Recommendations and Projections | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 99 resources for the venue. It is also noted that our projections relate solely to the proposed venue and do not consider its relationship within the broader operations of the overall Fairgrounds site. CONCLUSION As highlighted in the case studies presented Section 5 of this report, multi-purpose events centers typically incur an operating deficit each year. However, the economic impact that these facilities have on their local and regional communities usually far outweighs the loss incurred. The preceding projections are in line with comparable facilities, from both a demand and operating statement perspective, and are considered to be fair and reasonable. There are a myriad of policy, management and operating decisions to be made from this point forward. Many of these are material and could affect demand and financial performance of the proposed Multi-Purpose Event Center. Notwithstanding this, Johnson Consulting is of the opinion that the type of project that is being proposed would be an outstanding addition to Stanley Park Fairgrounds, Estes Park, the County, and the broader metropolitan area. DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com SECTION VIII ECONOMIC AND FISCAL IMPACT ANALYSIS DRAFT Section 8 Economic and Fiscal Impact Analysis | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 100 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com ECONOMIC AND FISCAL IMPACT ANALYSIS This section analyzes total economic and fiscal benefit that would be generated by the proposed addition of a Multi-Purpose Event Center to Stanley Park Fairgrounds. Economic impact is defined as incremental new spending in an economy that is the direct result of certain activities, facilities, or events. The projections are based on Johnson Consulting’s prior development of economic analyses for other exposition and convention centers, sporting facilities, and events, and specific knowledge of Estes Park area marketplace. While these are mathematical calculations, which are based on experience seen in numerous other settings, perhaps the most important thing to visualize is what will happen to Estes Park as a community. By adding a new Multi- Purpose Event Center to Stanley Park Fairgrounds, the Town of Estes Park, Larimer County, and State of Colorado are investing in greater downtown Estes Park, and will both attract people from outside the region to Estes Park and also play host to hundreds of thousands of residents in the region. DEFINITIONS For the purpose of this analysis, impact totals are discussed in terms of Town of Estes Park economy. The levels of impacts are described as follows:  Direct – are an expression of the spending that occurs as a direct result of the events and activities that occur in the Event Center. For example, a convention attendee’s expenditures on hotel rooms, shopping, and meals are a direct economic impact.  Indirect – consist of re-spending of the initial or direct expenditures, or, the supply of goods and services resulting from the initial direct spending in the Event Center. For example, an Event Center patron’s direct expenditure on a restaurant meal causes the restaurant to purchase food and other items from suppliers. The portion of these restaurant purchases that are within the local, regional, or state economies is counted as an indirect economic impact.  Induced – represent changes in local consumption due to the personal spending by employees whose incomes are affected by direct and indirect spending. For example, a waiter at the restaurant may have more personal income as a result of the convention attendee’s visit. The amount of the increased income the waiter spends in the local economy is considered an induced impact.  Increased Earnings – measures increased employee and worker compensation related to the project being analyzed. This figure represents increased payroll expenditures, including benefits paid to workers locally. It also expressed how the employees of local businesses share in the increased outputs.  Employment impact – measures the number of jobs supported in the study area related to the spending generated as a result of the events occurring in the convention center, theater, and arena. Employment impact is stated in a number of full-time equivalent jobs. DRAFT Section 8 Economic and Fiscal Impact Analysis | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 101 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com This analysis differentiates impacts from spending by people coming from out-of-town and by local residents, as defined below:  Net New Spending – is spending by attendees and patrons who come from outside the subject area, e.g., Tampa residents who come to Estes Park and spend represents the amount of “new dollars” that flow into the Estes Park economy. It is assumed that 40 percent of room nights generated by the Event Center are net new to the market.  Transfer Spending – In strict economic terms, spending by those who live in the market area, i.e., Estes Park residents, represents “transfer” spending, because they would only transfer income from one sector of the Town’s economy to another, and therefore is not bringing new dollars into the Town’s economy. Some of the Event Center attendees will be Estes Park residents. ECONOMIC IMPACTS OF THE MULTI-PURPOSE EVENT CENTER The economic impacts of the new Multi-Purpose Event Center are based on market and financial analysis as described in Section 7 of this report. As summarized in the following table, in its stabilized year of operation (2019), the Multi-Purpose Event Center is projected to host 124 events, generating approximately 134,200 attendees. Table 8 - 1 Multi-Purpose Event Center, Estes Park, Colorado Events and Attendance (Stabilized Year 2019) # of Events # of Attendees Exhibition Events Tradeshows, Equestrian & Competitive Arts 19 16,400 Consumer & Specialty Shows, & Festivals 24 47,700 Sub-total Exhibition Events 43 64,100 Cultural and Social Events Meetings & Seminars 19 3,800 Banquets 19 6,100 Concerts, Entertainment & Sporting Events 24 43,500 Other/ Civic Events 19 16,700 Sub-total Cultural and Social Events 81 70,100 Total 124 134,200 Source: Johnson Consulting The number of days that an attendee spends in the market (person-days) serves as the basis of the economic impact estimate. Based on the assumed event attributes shown in the following table, the Event Center’s events and attendance translate to approximately 55,000 local attendee-days, 107,600 non-local attendee-days, and 22,700 room nights. DRAFT Section 8 Economic and Fiscal Impact Analysis | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 102 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Table 8 - 2 Multi-Purpose Event Center, Estes Park, Colorado Calculation of Attendee-Days and Room Nights Assumptions Person-Days Room Nights # of Attendees Event Length (Days) Spouse Ratio Attendees' Length of Stay in Florence % Local Total Attendee Days # of Local Attendee- Days # of Non- Local Attendee- Days % Require Lodging # of Room Nights* Exhibition Events Tradeshows, Equestrian & Competitive Arts 16,400 2.8 25%2.4 15%39,360 5,904 33,456 50%13,940 Consumer & Specialty Shows, & Festivals 47,700 2.1 0%1.1 40%52,470 20,988 31,482 15%4,293 Sub-total 64,100 91,830 26,892 64,938 18,233 Cultural and Social Events Meetings & Seminars 3,800 1.0 0%1.2 35%4,560 1,596 2,964 20%494 Banquets 6,100 1.0 0%1.0 40%6,100 2,440 3,660 10%366 Concerts, Entertainment & Sporting Events 43,500 1.0 0%1.0 40%43,500 17,400 26,100 10%2,610 Other/ Civic Events 16,700 1.0 0%1.0 40%16,700 6,680 10,020 10%1,002 Sub-total 70,100 70,860 28,116 42,744 4,500 Total 134,200 162,690 55,008 107,682 22,733 Source: Johnson Consulting In addition to the event attendees, there will be exhibitors, or booth personnel, attending the exhibition events (conventions, trade shows, and consumer shows). Given the nature of events to be held at the Event Center, we have assumed an additional personnel ratio of 10 percent. As a result, the number of exhibitors is estimated to be 6,500, as shown in the following table. The table also shows the assumptions and calculation for the estimated exhibitor-days and exhibitor-related room nights. Table 8 - 3 Multi-Purpose Event Center, Estes Park, Colorado Calculation of Exhibitor-Days and Room Nights of Non-Spectator Events Assumptions Person-Days Room Nights Total Exhibitors Event Length (Days) Spouse Ratio Exhibitors' Length of Stay in Florence % Local Total Exhibitor- Days # of Local Exhibitor- Days # of Non- Local Exhibitor- Days % Require Lodging # of Room Nights Tradeshows, Equestrian & Competitive Arts 4,700 2.8 0%3.1 35%14,400 5,040 9,360 100%3,510 Consumer & Specialty Shows, & Festivals 1,800 2.1 0%2.3 35%4,200 1,470 2,730 100%870 Total 6,500 18,600 6,510 12,090 4,380 Source: Johnson Consulting As shown in the table, the estimated 6,500 exhibitors at the events are estimated to generate approximately 18,600 exhibitor-days, which is 6,510 local and over 12,090 non-local. These non-local exhibitor-days are estimated to generate 4,380 total room nights. DRAFT Section 8 Economic and Fiscal Impact Analysis | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 103 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com As the basis for direct spending estimates for the economic impact analysis, Johnson Consulting used the average daily spending per attendee and per exhibitor as shown in the following table. The estimates were derived from an economic impact study completed for Visit Estes Park in August 2012; per diem rate per U.S. General Services Administration for Fort Collins / Loveland market in Larimer County, Colorado; and Destination Marketing Association International (DMAI) estimates. Also shown is daily spending by associations that the attendees belong to, presented in a per-attendee basis, as estimated by DMAI. Again, the table shows reasonably modest amounts of daily spending to avoid over-estimating the impact. Table 8 - 4 Multi-Purpose Event Center, Estes Park, Colorado Assumptions of Daily Spending Attendees Associations*Exhibitors Lodging and Incidentals $84.00 $0.00 $84.00 Eating and Drinking 29.82 11 .67 47.84 Recreation and Entertainment 9.35 0.00 0.00 Sporting Events 0.52 0.00 0.00 General Retail 42.37 0.00 0.00 Local Transit and Car Rental 17.57 0.50 8.78 Booth Rental and Event Services 0.00 30.63 11 4.63 Total Daily Spending per Person $183.64 $42.80 $255.25 *Represents association spending per delegate/ attendee. Source: Destination Marketing Association International, US General Services Adminstration, Johnson Consulting Multiplying the number of attendee-days, exhibitor-days, and room nights calculated above by the appropriate daily spending will result in the total amount of direct spending, both “transfer” (incurred by locals) and “net new” (incurred by non-locals). The result is shown in the following table. DRAFT Section 8 Economic and Fiscal Impact Analysis | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 104 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Table 8 - 5 Multi-Purpose Event Center, Estes Park, Colorado Estimates of Spending by Attendees, Associations, and Exhibitors by Category of Events (Stabilized Year) Atendee Spending Association Spending Exhibitor Spending Total Attendee, Association, Exhibitor Spending Local Non-Local Total Local Non-Local Total Local Non-Local Total Local Non-Local Total Tradeshows, Equestrian & Competitive Arts Lodging and Incidentals $0 $1,170,960 $1,170,960 $0 $0 $0 $0 $294,840 $294,840 $0 $1,465,800 $1,465,800 Eating and Drinking 176,074 997,753 1,173,827 68,891 390,384 459,275 241,105 447,766 688,870 486,070 1,835,903 2,321,973 Recreation and Entertainment 55,226 312,947 368,173 0 0 0 0 0 0 55,226 312,947 368,173 Sporting Events 3,085 17,481 20,566 0 0 0 0 0 0 3,085 17,481 20,566 General Retail 250,176 1,417,662 1,667,838 0 0 0 0 0 0 250,176 1,417,662 1,667,838 Local Transit 76,046 430,929 506,975 2,969 16,825 19,794 22,121 41,082 63,203 101,137 488,836 589,973 Car Rental 0 156,912 156,912 0 0 0 0 41,082 41,082 0 197,994 197,994 Booth Rental and Event Services 0 0 0 180,834 1,024,723 1,205,557 577,738 1,072,941 1,650,679 758,571 2,097,664 2,856,235 To tal $560,607 $4,504,644 $5,065,251 $252,694 $1,431,932 $1,684,626 $840,963 $1,897,711 $2,738,675 $1,654,264 $7,834,288 $9,488,552 Consumer & Specialty Shows, & Festivals Lodging and Incidentals $0 $360,612 $360,612 $0 $0 $0 $0 $73,080 $73,080 $0 $433,692 $433,692 Eating and Drinking 625,922 938,883 1,564,805 244,900 367,350 612,250 70,322 130,598 200,921 941,144 1,436,831 2,377,976 Recreation and Entertainment 196,321 294,482 490,804 0 0 0 0 0 0 196,321 294,482 490,804 Sporting Events 10,967 16,450 27,417 0 0 0 0 0 0 10,967 16,450 27,417 General Retail 889,344 1,334,016 2,223,360 0 0 0 0 0 0 889,344 1,334,016 2,223,360 Local Transit 270,335 405,503 675,838 10,555 15,833 26,388 6,452 11 ,982 18,434 287,342 433,318 720,660 Car Rental 0 147,654 147,654 0 0 0 0 11 ,982 11 ,982 0 159,636 159,636 Booth Rental and Event Services 0 0 0 642,841 964,262 1,607,103 168,507 312,941 481,448 811,348 1,277,203 2,088,551 To tal $1,992,889 $3,497,599 $5,490,488 $898,296 $1,347,444 $2,245,741 $245,281 $540,584 $785,865 $3,136,466 $5,385,628 $8,522,094 Any Others Lodging and Incidentals $0 $334,152 $334,152 $0 $0 $0 $0 $0 $0 $0 $334,152 $334,152 Eating and Drinking 790,902 11 8,635 909,537 0 0 0 0 0 0 790,902 11 8,635 909,537 Recreation and Entertainment 248,068 37,210 285,278 0 0 0 0 0 0 248,068 37,210 285,278 Sporting Events 13,857 2,079 15,936 0 0 0 0 0 0 13,857 2,079 15,936 General Retail 1,123,756 168,563 1,292,320 0 0 0 0 0 0 1,123,756 168,563 1,292,320 Local Transit 341,590 51,238 392,828 0 0 0 0 0 0 341,590 51,238 392,828 Car Rental 124,381 18,657 143,039 0 0 0 0 0 0 124,381 18,657 143,039 Booth Rental and Event Services 0 0 0 0 0 0 0 0 0 0 0 0 To tal $2,642,554 $730,535 $3,373,090 $0 $0 $0 $0 $0 $0 $2,642,554 $730,535 $3,373,090 Total All Events $5,196,050 $8,732,778 $13,928,829 $1,150,990 $2,779,377 $3,930,367 $1,086,244 $2,438,295 $3,524,540 $7,433,285 $13,950,451 $21,383,735 Source: Johnson Consulting DRAFT Section 8 Economic and Fiscal Impact Analysis | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 105 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com It is estimated that the new Event Center will add a great deal to the local economy. As shown on the table, event activities at the Event Center are estimated to generate approximately $21.4 million of spending from attendees, exhibitors, and associations. The impacts of this direct spending is subsequently calculated by utilizing the IMPLAN input-output model to estimate indirect and induced impacts. IMPLAN is a nationally recognized model commonly used to estimate economic impacts. An input-output model analyzes the commodities and income that normally flow through the various sectors of the economy. The indirect and induced spending and employment effects represent the estimated changes in the flow of income and goods caused by the direct spending associated with the new facility. The multiplier set is shown in the following table. Table 8 - 6 Multi-Purpose Event Center, Estes Park, Colorado Economic Impact Multipliers Impact Multiplier Base Indirect Spending 0.29 of direct spending Induced Spending 0.19 of direct spending Increased Earnings 0.42 of direct spending Increased Employment 15.46 per $1 million of direct spending Source: Implan, Johnson Consulting The table shows that for every dollar spent by people in Estes Park, it results in an additional 90 cents of value to the economy. Also, for every million dollars spent result in 15.48 jobs in the market. Based on the calculations and assumptions described thus far, the following table summarizes the total estimated economic impacts of the new Event Center, including transfer impacts and net new impacts. Table 8 - 7 Multi-Purpose Event Center, Estes Park, Colorado Summary of Economic and Fiscal Impacts Transfer Impact Net New to Estes Park Net New to Colorado Total Direct Spending $7.4 $14.0 $8.4 $21.4 Indirect Spending 2.1 4.0 2.4 6.1 Induced Spending 1.4 2.7 1.6 4.1 Total Spending $11.0 $20.6 $12.4 $31.6 Earnings $3.1 $5.9 $3.5 $9.0 Employment (Full-Time Equiv. Jobs)11 0 200 120 310 Source: Johnson Consulting DRAFT Section 8 Economic and Fiscal Impact Analysis | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 106 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com As shown in the table above, the new Event Center is estimated to generate $31.6 million of total spending, $9 million of increased earnings, and support 310 full-time equivalent jobs in its stabilized year of operation. Transfer impacts are projected to include $11 million in total spending, $3.1 million in increased earnings, and support 110 jobs. Net new impacts to Estes Park are projected to include $20.6 million in total spending, $5.9 million in increased earnings, and support 200 jobs. Net new impacts to the State of Colorado are projected to include $12.4 million in total spending, $3.5 million in increased earnings, and support 120 jobs. FISCAL IMPACTS OF THE MULTI-PURPOSE EVENT CENTER Fiscal impacts are tax revenues that result from the spending and income related to the activities at the new Multi-Purpose Event Center. This analysis estimates fiscal impacts for the governmental units that levy taxes in the jurisdiction. The fiscal impacts are the public sector’s return on investment. Fiscal impacts provide a partial offset to the capital and operating expenditures required to support the development of the facility. Although the incremental tax revenues cannot be expected to pay for a publicly-funded project in full, fiscal impacts are important because they improve the ability of the public sector to pay for the project. The overall economic impacts, including the fiscal impacts, provide a rationale for public participation in a project. Based on the spending estimates, Johnson Consulting projected the fiscal impacts from major categories of tax revenues that are directly affected by event visitors’ activity: general sales tax and hotel/ motel tax.  General Sales Tax – is 7.50 percent, which include 2.90 percent State sales tax, 0.60 percent County sales tax, and 4.00 percent County tax, and  Hotel/ Motel Tax – is a local marketing tax of 2.00 percent on lodging services. The fiscal impacts represent only a fraction of the overall spending impact to the economy, as they are only the public sector’s increase in tax revenue resulting from the overall increased spending in the economy. Additionally, not included in the analysis are property tax and income tax estimates. Spending outside the proposed Event Center would increase some of the values of commercial establishments in the Town, which result in increased property tax supported by the project. The following table shows the estimated annual fiscal impact of Event Center. DRAFT Section 8 Economic and Fiscal Impact Analysis | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 107 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Table 8 - 8 Multi-Purpose Event Center, Estes Park, Colorado Estimated Annual Fiscal Impacts ($000's) (Stabilized Year) Tax Rates Ta xable Spending Ta x Revenues General Sales Tax State Sales Tax 2.90%$19,556 $567 County Sales Tax 0.60%$19,556 11 7 City Sales Tax 4.00%$19,556 782 Subtotal 7.50%$1,467 Hotel/ Motel Tax Local Hotel Tax 2.00%$2,234 $45 Total $1,511 Source: Johnson Consulting As shown on the table, activities at the proposed Event Center are estimated to generate approximately $1.51 million of tax revenues, annually, which include $1.47 million of sales tax revenues and $45,000 of hotel/ motel tax revenues. This benefit is well over what the capital budget debt service would be for the facility. Outside of the indicated fiscal benefits, the Town of Estes Park is likely to incur some expenses related to providing services to the improved facilities that are not estimated in this analysis. These expenses include slight increases in police, fire protection, emergency medical services, traffic control, street maintenance, sanitation, and other ongoing operating expenses required to maintain the environment around the facility. As property tax is not projected in this fiscal impact analysis, it is expected that such taxes would be more than sufficient to fund the marginal costs in these areas. ONE-TIME IMPACT OF MULTI-PURPOSE EVENT CENTER CONSTRUCTION In addition to the on-going impacts from the operation of the facilities, the construction of the proposed Multi-Purpose Event Center would create a one-time influx of spending. This construction spending results in one-time economic and fiscal impact. Typically, only hard construction costs are included in impact analysis. The impact analysis is based on $6 million of hard costs, which is based on the preliminary construction cost estimates as provided by Kenney and Associates Architects, which has been adjusted (from the initial $5 million estimate) to allow for escalation, and our recommended addition of more meeting space and quality enhancements. In absence of an actual construction cost detailed rundown, labor costs are assumed to amount to 45 percent of construction hard costs, while the remaining 55 percent goes to material costs. This 45 percent-55 percent split is a typical construction industry standard. Applying this ratio to the $6 million construction hard cost DRAFT Section 8 Economic and Fiscal Impact Analysis | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 108 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com amount, labor costs are estimated to amount to $2.7 million, while material costs are estimated to amount to $3.3 million. The following table shows the calculation of the construction impact, showing the calculation from construction hard costs to the resulted construction jobs, ripple effects, and tax revenues. Please note that in calculating the impact of construction, the distinction between net new spending and transfer spending is not necessary, because the “true” origin of funding is not necessarily known. Therefore, for analytical purposes, all construction spending can reasonably be considered as net new. Table 8 - 9 Multi-Purpose Event Center, Estes Park, Colorado Calculation of One-Time Impact of Construction Amount (in $000's) Sources of Impact: Hard Costs* Total Hard Costs $6,000 l i Labor Cost Material Cost 45%55% $2,700 $3,300 One-Time Economic and Fiscal Impact of Construction i i Average Construction Laborer Salary $41,000 Construction Jobs 70 Jobs % of Spending that Occurs in Larimer County 80% Direct Construction Spending in Larimer County $2,640 Multipliers or Rate Indirect and Induced Spending 0.48 $1,262 Increased Earnings 0.42 $1,116 Employment 15.46 41 Jobs General Sales Tax State Sales Tax 2.90%$77 County Sales Tax 0.60%16 City Sales Tax 4.00%106 To tal $198 Source: Kenney and Associates Architects, Johnson Consulting On the labor side, the construction is estimated to generate 70 construction jobs. On the material side, this analysis conservatively assumes that 80 percent of material costs is spent in Larimer County, equating to $2.6 million (as clearly, not all of the construction material is purchased within Estes Park, and an actual construction vendor/ supplier list, which would indicate where each of the material is purchased from, is not available). Applying the multipliers to this amount, such spending on material is estimated to generate $1.3 million of indirect and induced spending, $1.1 million of increased earnings, and 41 jobs (over and above the 70 construction jobs) in the economy. Tax revenues from the $2.6 million in material costs are estimated to generate $198,000 of tax revenues, which include $77,000 of State sales taxes, $16,000 of County sales tax, and $106,000 of City sales tax. DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com SECTION IX FEASIBILITY STUDY CONCLUSION DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 9 Feasibility Study Conclusion | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 109 FEASIBILITY STUDY CONCLUSION As stated in the introduction to this report, a number of key framework questions need to be analyzed and addressed as the Town and community contemplate the development of a Multi-Purpose Event Center at Stanley Park Fairgrounds. Based on the foregoing analyses, our findings and recommendations relating to the overall feasibility of the proposed facility are summarized as follows: 1. DOES THE PROPOSED MULTI-PUPOSE EVENT CENTER MAKE SENSE FOR THE COMMUNITY AND THE FAIRGROUNDS? Absolutely. The proposed Multi-Purpose Event Center at Stanley Park Fairgrounds presents a unique and appropriate opportunity to capitalize on a number of key characteristics of the location and the local and regional economies, including:  A lack of multi-purpose space in the surrounding local and regional areas.  Existing demand that could grow if better facilities were provided.  Easy access to the site, via the established road network.  Location within a tourism-based community.  Possible association with The Ranch, a sister property in the same county, which would help on marketing and equipment sharing.  Strategic location at the gateway to Rocky Mountain National Park and abundant recreational opportunities.  Adjacency to sports complex, which could be used to help attract indoor sports competitions to the new Multi-Purpose Event Center.  A good number of hotel rooms that need more demand.  A need for tourism demand drivers during the non-peak season.  Strong community interest in developing a new facility. These factors, along with many others, provide a strong case for the development of a Multi-Purpose Event Center at Stanley Fairgrounds. Johnson Consulting is of the opinion that the proposed facility, if targeted and marketed appropriately, has the potential to become a real focal point in the community, enhancing the overall role and contribution of the Fairgrounds to the local and regional economies by creating a year-round venue that fills a void in the marketplace. DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 9 Feasibility Study Conclusion | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 110 2. WILL THE MULTI-PURPOSE EVENT CENTER CAUSE DEMAND AND REVENUE DIVERSIFICATION TO IMPROVE YEAR-ROUND OPERATION OF THE FAIRGROUNDS? Yes, if targeted and marketed appropriately. In order to serve as a true year-round, multi-purpose venue, the proposed Event Center should have a concrete floor. As demonstrated by the Eagle River Center, a dirt floor limits the flexibility of use of an Event Center. In the summer months, when Stanley Park Fairgrounds is already heavily utilized, the Event Center could enhance overall operations and allow events to grow and expand. A dirt floor, which would support equestrian and rodeo events, among others, could be brought in. During the non-summer months, when there is a desire to attract new events to the facility, a concrete floor will have much broader appeal. As part of Larimer County, opportunity is seen if the proposed facility has a marketing alliance with The Ranch. The Ranch has a very good reputation and could help Estes Park, just by referring business to the new venue. Joint promotional efforts by both venues could help the overall Stanley Park Fairgrounds complex as well. 3. IF BUILT, HOW WOULD THE FACILITY BE OPERATED/ MANAGED AND WHAT WOULD THE DEMAND AND FINANCIAL OPERATING PROFILE BE? Stanley Park Fairgrounds is owned by the Town of Estes Park and operated as part of a City department, and this model seems to be working generally well. Our concern would be that the new facility would be a positive paradigm shift in the quality and role of the overall complex. As such, it is our considered opinion that there will need to be a more unified approach to sales and marketing, involving a collaborated effort between Visit Estes Park, the sales and marketing team at the Estes Park Conference Center, and management of Stanley Park Fairgrounds. The Multi-Purpose Event Center, based upon the proposed development program that includes a 26,929 square foot multi-purpose room, 978 square feet of meeting and breakout space, 628 square feet of office space, 346 square foot concession/ catering kitchen, restrooms, and other storage and support amenities, is projected to host 100 events in 2015 (Year 1), attracting a total of 101,600 attendees. The event schedule is projected to stabilize at 124 events in 2019 (Year 5), with a total attendance of 134,200 people. These demand projections are in line with comparable facilities. The following table presents a summary of the projected operating statement for the first 10 full years of operation of the proposed Multi-Purpose Event Center. Revenues include all revenues that can be used for operations. DRAFT Section 9 Feasibility Study Conclusion | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 111 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Table 9 - 1 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Revenue Event Revenue Space Rental --$214,821 $226,801 $238,780 $269,594 $290,927 $298,238 $304,207 $310,329 $316,594 $322,895 Net Food and Beverage --205,263 223,635 241,536 265,415 290,857 303,881 317,805 332,234 347,494 363,429 Equipment Rentals --44,754 48,431 52,264 60,484 66,902 70,298 73,497 76,851 80,362 84,011 Event Services --1,432 1,550 1,672 1,935 2,141 2,250 2,352 2,459 2,572 2,688 Advertising Revenue --56,250 57,656 59,098 60,575 62,089 63,642 65,233 66,864 68,535 70,249 Proposed Multi-Purpose Event Center - Pro Forma Operating Statement of Revenue and Expenses (Inflated Dollars) Other Revenue --40,000 41,000 42,025 43,076 44,153 45,256 46,388 47,547 48,736 49,955 Land Lease Income Grant Income Total Operating Revenue $0 $562,520 $599,073 $635,376 $701,080 $757,068 $783,565 $809,481 $836,284 $864,293 $893,226 Direct Operating Expenses Contract Services --63,060 68,572 74,044 82,585 90,749 94,973 99,316 103,832 108,594 11 3,559 Utilities --120,000 123,000 126,075 129,227 132,458 135,769 139,163 142,642 146,208 149,864 Maintenance & Repairs --42,964 46,494 50,174 58,065 64,226 67,486 70,557 73,777 77,148 80,650 Supplies --7,161 7,749 8,362 9,677 10,704 11 ,248 11 ,760 12,296 12,858 13,442 Other Expenses --540 580 630 730 800 840 880 920 960 1,010 Sub-total Operating Expenses $0 233,724$ 246,395$ 259,285$ 280,284$ 298,937$ 310,315$ 321,676$ 333,467$ 345,768$ 358,524$ Indirect Expenses Salaries and Wages --230,000 235,750 241,644 247,685 253,877 260,224 266,729 273,398 280,233 287,238 Employee Benefits --57,500 58,938 60,411 61,921 63,469 65,056 66,682 68,349 70,058 71,810 Sales and Marketing --50,000 51,250 52,531 53,845 55,191 56,570 57,985 59,434 60,920 62,443 General and Administrative --40,000 41,000 42,025 43,076 44,153 45,256 46,388 47,547 48,736 49,955 Insurance --40,640 45,961 49,632 54,275 59,253 61,775 64,433 67,185 70,034 73,283 Other Expenses 500,000 20,000 20,500 21,013 21,538 22,076 22,628 23,194 23,774 24,368 24,977 Sub-total Indirect Expenses 500,000$ 438,140$ 453,399$ 467,255$ 482,339$ 498,018$ 511,510$ 525,411$ 539,687$ 554,349$ 569,706$ Total Expenses 500,000$ 671,864$ 699,794$ 726,540$ 762,623$ 796,955$ 821,825$ 847,087$ 873,154$ 900,117$ 928,231$ Net Operating Income (Deficit)(500,000)$ (109,344)$ (100,721)$ (91,164)$ (61,543)$ (39,887)$ (38,260)$ (37,606)$ (36,870)$ (35,823)$ (35,004)$ Reserve for Replacement -$ 50,000$ 50,000$ 50,000$ 50,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ 100,000$ Net Income (Deficit) Before Debt Service (500,000)$ (159,344)$ (150,721)$ (141,164)$ (111,543)$ (139,887)$ (138,260)$ (137,606)$ (136,870)$ (135,823)$ (135,004)$ Source: Johnson Consulting DRAFT 6 East Monroe Street | Fifth Floor | Chicago, Illinois 60603 | Phone: 312.447.2010 | Fax: 312.444.1125 www.chjc.com | cjohnson@chjc.com Section 9 Feasibility Study Conclusion | DRAFT January 2013 Feasibility Study of a Year-Round Multi-Purpose Event Center at Stanley Park Fairgrounds – Estes Park, CO PAGE 112 As shown, the proposed Multi-Purpose Event Center is expected to operate at a deficit of ($109,344) in Year 1, improving to a deficit of ($39,887) Year 5, and ($35,004) in Year 10. After accounting for the deposit to the maintenance reserve account, the facility is expected to operate at a larger deficit throughout the projection period. However, the projected deficits are consistent with those observed at multi-purpose facilities of similar size and orientation. It is noted that the food and beverage amounts are higher than what would occur under current operating approaches. Today, many larger events bring in their own food service to make money for that event. We assume in our projection that the Multi-Purpose Event Center will do more of the food service for events. If this is not the case in the future, food and beverage revenue could be as low as half of what is projected. 4. IS SUCH A FACILITY CONSISTENT WITH THE PROFILE OF THE MARKET AND WILL IT CONTRIBUTE TO ECONOMIC DEVELOPMENT, TOURISM AND SOCIAL GROWTH? Estes Park is a popular tourist destination, however it lacks the necessary infrastructure to support year-round visitation. It is envisaged that a new Multi-Purpose Event Center could serve as a year-round sporting, entertainment, cultural, and consumer show destination. It would host current events better and attract new business to the market. The Event Center will attract new tradeshows, consumer shows, and entertainment and sporting events to the market, while also helping to retain and grow the current inventory of events and festivals in the Town and particularly at Stanley Park. There will still be seasonal dips, and Summer will always be the strongest season, but this facility will attract demand throughout the year. 5. DOES THE COMMUNITY HAVE THE RESOURCE BASE TO FUND SUCH A PROJECT AND WHAT OTHER RESOURCES CAN BE BROUGHT TO BEAR TO FUND THE PROJECT? The $5-$6 million budget that has been identified for the development of the proposed Multi-Purpose Event Center is comparable to similar projects, and reflects the size, orientation and risk profile of the type of venue that is being proposed. The new venue will improve overall operating efficiencies across the entire Stanley Park campus, and will reduce the level of subsidy currently required to operate the Fairgrounds. Smaller counties have funded similar venues, and Stanley Park has better potential than exists in some other counties analyzed as part of this assignment. Further, sales tax, which is the anticipated funding source is growing in the Town and in the County. The Ranch used a small increase in their sales tax to fund their venues. PUBLIC WORKS Report To: Honorable Mayor Pinkham Board of Trustees Town Administrator Lancaster From: Scott Zurn, PE, Public Works Director Date: January 22, 2013 RE: Transportation Grants Update: Current transportation funding legislation designated as Moving Ahead for Progress in the 21 Century (MAP-21) has given the transportation needs between the Town and Rocky Mountain National Park a unique opportunity for funding. Currently there is scheduled call for projects under the Office of Federal Lands Highway Federal Lands access program in January. This program goal is to improve state and local transportation facilities within or adjacent to, or that provides access to, Federal land. The programming decisions are made by a committee of three in each state, and currently there are $18,335,540 dollars programmed for Colorado during the two-year federal allocation. This grant has specific correlation with a proposed realignment of the state highway out of downtown and around the Riverside Drive alignment. Both the 2003 Estes Park Transportation Study and the recent Transportation Visioning Committee reports recommend these projects as a solution to congestion and the various detrimental effects of congestion to the economy, visitor experience and the environment. Eligibility – Funds made available under the Access Program shall be used to pay the cost of: A) Transportation planning, research, engineering, preventive maintenance, rehabilitation, restoration, construction, and reconstruction of Federal Lands Access Transportation Facilities located on or adjacent to, or that provide access to, Federal land, and – • Adjacent vehicular parking areas • Acquisition of necessary scenic easements and scenic or historic sites • Provisions for pedestrians and bicycles • Environmental mitigation in or adjacent to Federal land to improve public safety and reduce vehicle caused wildlife mortality while maintaining habitat connectivity • Construction and reconstruction of roadside rest areas, including sanitary and water facilities and • Other appropriate public road facilities, as determined by the Secretary B) Operation and maintenance of transit facilities; and C) Any transportation project eligible for assistance under Title 23 that is within or adjacent to, or that provides access to, Federal land. As requested, staff is bringing forward additional information regarding this opportunity and is researching three different possible projects that fit within the grant criteria. The three projects researched are: 1. A one-way couplet utilizing the existing state highway through downtown and an additional one-way alignment in the Riverside Drive area. 2. A two-way state highway redirected to the Riverside Drive area and eliminating the state highway designation downtown. 3. A multi-use trail from the downtown area along the Big Thompson River out to the entrance of RMNP. Staff will present potential road and trail alignments, correlating budgets, and pros and cons of each project alternative. Discussion and direction regarding the grant opportunities is needed in order to provide adequate time to present a competitive application, if the Town Board desires to apply for funding. X-XX-XX X-XX-XX Numbers Structure No Revisions: Revised: Void:Sheet Subset: Detailer: Designer: XXXXXXX XXXXXXXX XXXXXXXX Code Project Number Sheet NumberSubset Sheets:XXX of XXX Init.CommentsDate: R-X Sheet Revisions As Constructed XXX 1/17/2013Print Date: Horiz. Scale:1:100 010913Display.dgn Vert. Scale: As Noted Unit Leader Initials Project No./Code File Name: Unit Information PLAN SHEET Jennica 10:46:54 AM K:\113001-01\Roadway\Drawings\Displays\010913Display.dgnN0 50 100 SCALE: 1"=100’MATCHLINEMATCHLINEUS 3 6 US 36 / MORAINE AVE. W. RIVERSIDE DR. E. RIVERSIDE DR.ROCKWELL ST.E. RIVERSIDE DR.US 36 / BIG THOMPSON AVE. OPTION - 2C (20-25 MPH, TWO-WAY) (SPLIT ALIGNMENT) To: Honorable Mayor Pinkham Board of Trustees Town Administrator Lancaster From: Jackie Williamson, Town Clerk Date: January 18, 2013 RE: Future Town Board Study Session Items February 12, 2012 Policy Governance III – Staff Limitations – Part 1 Policy on Town Real Property Assets Role of Shuttle Committee and Transportation Committee February 26, 2013 Policy Governance III – Staff Limitations – Part 2 Downtown Colorado, Inc. Presentation March 12, 2013 Policy Governance II – Board/Staff Linkage – Part 1 Economic Development (Town’s Role & Task Force Update) March 26, 2013 Policy Governance II – Board/Staff Linkage – Part 2 Revision to Stanley Historic District Agreement April 9, 2013 April 23, 2013 Strategic Initiatives – Review of Citizen Engagement Other Items Not Currently Scheduled for Town Board Study Sessions • Support for Highland Festival • Board Training – Quasi-judicial • Capital Planning and Management Town Clerk’s Office Memo