HomeMy WebLinkAboutPACKET Town Board Special Meeting 2013-02-07The Mission of the Town of Estes Park is to plan and provide reliable,
high-value services for our citizens, visitors, and employees. We take
great pride ensuring and enhancing the quality of life in our community
by being good stewards of public resources and natural setting.
BOARD OF TRUSTEES - TOWN OF ESTES PARK
SPECIAL MEETING
Thursday, February 7, 2013
3:00 p.m.
AGENDA
PLEDGE OF ALLEGIANCE.
(Any person desiring to participate, please join the Board in the Pledge of Allegiance).
TOWN BOARD COMMENT.
PUBLIC COMMENT. (Please state your name and address).
1. ACTION ITEMS:
1. BUILDING STALL BARN AND/OR MULTI-PURPOSE EVENT CENTER (MPEC).
• Johnson Consulting (MPEC Pro forma).
• MPEC Uses.
• Stall Barn.
• Financial Options.
2. ADJOURN.
Prepared 1/28/13
*Revised
Administration Memo
To: Honorable Mayor Pinkham
Board of Trustees
Town Administrator Lancaster
From: Lowell Richardson, Assistant Town Administrator
Date: 02/07/2013
RE: MPEC Pro Forma
Background:
At the January 22, 2013 Town Board Study Session staff presented the Draft MPEC Pro
Forma prepared by Johnson Consulting. From that meeting staff received direction to
schedule a meeting between the Town Board and Johnson Consulting so they could
present the report and answer any questions the Town Board would have regarding
their report.
Also, on that same evening the bids were presented to the Town Board for the MPEC
and Stall Barn. Now that staff has the bid numbers to apply to a potential project at the
fairgrounds Director McFarland, Coordinator Winslow and Director Zurn will be available
to discuss project financing (if any), cash funding, the fairgrounds master plan related to
the MPEC and Stall Barn(s) and to answer any project construction questions.
Staff is presenting to the Town Board one of four possible scenarios 1) Approve building
a stall barn only; 2) Approve building a stall barn and the MPEC together; 3) build the
MPEC only or 4) Do not build anything. Depending on the decision of the Town Board in
regards to the first three options staff is prepared to present the most relevant financial
option for that project.
Budget:
Staff Recommendation:
N/A
Sample Motion:
Staff has provided a series of motion options for the project being considered before the
Town Board.
1) I move for the approval/denial of constructing the stall barn at the Stanley
Fairgrounds as presented by staff with the following add alternates (name those
alternates).
2) I move for the approval/denial of constructing the stall barn and MPEC at the
Stanley Fairgrounds as presented by staff with the following ad alternates (name
those alternates).
3) I move for the approval/denial of constructing the MPEC at the Stanley
Fairgrounds as presented by staff.
4) I move for the approval/denial of funding the (state the project) by (state the
method of the funding, ex. Cash from the CRF, COPS financing etc.)
5) I move to deny the funding and construction of the stall barn and/or the MPEC at
the Stanely Fairgrounds.
DRAFT F ibilit St d f YRdDRAFT Feasibility Study of a Year-Round Multi-Purpose Event CenterStanley Park Fairgrounds–Estes Park COStanley Park Fairgrounds Estes Park, CO.Presented By:yCharles H. Johnson IV, Johnson ConsultingFebruary 7, 2013
Vision & ObjectivesVision & ObjectivesNew Event Center would support Fairground’s summer use & serve as a year-round facility for a variety of shows, events of all types, sports, & other indoor uses. More diversified revenue stream & operating profile of overall complex.Host current events better & attract new business to market.Expand the season for demand, add more tourism, help hotel & retail establishments attract more business, & help increase sales tax collections.,pPart of larger masterplan that includes almost four times the first phase of development.2
Key QuestionsKey Questions1. Market & Industry Potential: Who will utilize the facility & what are their needs, desires, & expectations? Which venues will the facility compete pypwith, or complement? What is the overall market potential of the proposed facility?1Program Considerations:If a facility is warranted what size should it be?1.Program Considerations: If a facility is warranted, what size should it be? What physical attributes should it have? What is the facility’s optimal configuration to capitalize on market trends?3. Operations: How will the facility operate from a demand & financial perspective, as well as from a management & business-planning standpoint?4. Impacts: What will be the economic impact of the facility on Estes Park & the broader region? What will fiscal impacts will the facility have?3
Demographic & Market OverviewDemographic & Market OverviewLack of attractive 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.yPossible association with The Ranch, a sister property in the same county, which would help on marketing, equipment sharing and referral of unaccommodated demand.Strategic location at the gateway to Rocky Mountain National Park &abundant recreational opportunities.Adjacency to sports complex, which could be used to help attract indoor t titi t th M ltiPEtCtsports 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.Community interest in developing a new facility.4
Regional FacilitiesRegional FacilitiesKey Characteristics of Regional Facilities and Markets - FairgroundsBoulder County FairgroundsThe Ranch Events Complex (Larimer County Fairgrounds)Island Grove FairgroundsJefferson County FairgroundsArapahoe County FairgroundsDouglas County Fairgrounds & Events CenterColorado State FairgroundsEagle County Fairgrounds LocationLocation Longmont, CO Loveland, CO Greeley, CO Golden, CO Aurora, CO Castle Rock, CO Pueblo, CO Eagle, CODistance from Stanley Park Fairgrounds33 miles 38 miles 50 miles 65 miles 85 miles 95 miles 180 miles 184 milesMetropolitan Area Boulder Fort Collins-Loveland Greeley Denver Denver Denver Pueblo EdwardsDemographic Characteristics (2012)Metroplitan Area Population 298,312 306,080 262,784 2,611,271 2,611,271 2,611,271 161,769 60,112Median Age (Years) 36.0 34.0 36.0 36.0 36.0 39.0 35.0Median Household Income $65,624 $58,422 $55,804 $61,079 $61,079 $61,079 $39,159 $69,537Facilities (SF)Function Space35,000 SF Exhibit Building36,000 SF & 12,500 SF Exhibition Halls; 7,200-seat Bud Events Center58,200 SF & 24,200 SF Exhibit Halls; 8,122 SF Additional Space10,440 SF Exhibit Hall23,690 SF29,000 SF Events Center; 4,800 SF Hall14,747 SF Creative Arts Building; 5,917 SF Auditorium; 7,800 SF DiningRoom5,000 SF Exhibit HallpgMeeting Rooms(s) 1 Room (672 SF)5,760 SF + Larimer Conference Center (96,000 SF)4,325 SF4 Rooms (Max.Capacity 100 people)1,200 SF3,300 SF Conference Room1,711 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);32 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);232,500 SF Eagle River Center (Indoor Arena with Dirt Floor);1Outdoor ()Arenas (Dirt);3Outdoor Arenas (Dirt)()Arena(Dirt);2Outdoor Arenas (Dirt));Arena (Dirt)Other (Barns/Pavilions etc.) 6 Barns 4 Pavilions30,000 SF Livestock Building; 2 Pavilions155 Convered Stalls - 2 Barns; Pavilion2 Pavilions (128,000 SF & 81,171 SF); Outdoor Amphitheater-Source: Relevant Facilities,Demographics Now, JohnsonConsulting5
Comparable FacilitiesComparable FacilitiesKey Characteristics of Regional Facilities and Markets - FairgroundsProposed Multi-Purpose Events CenterTheRanch Events Complex(Larimer County Fairgrounds)Douglas County Fairgrounds & Events CenterEagle County Fairgrounds La Plata County Fairgrounds & Events CenterPuyallup Fair & Events CenterLocationLocation Estes Park, CO Loveland, CO Castle Rock, CO Eagle, CO Durango, CO Puyallup, WAMetropolitan Area Fort Collins-Loveland Fort Collins-Loveland Denver Edwards Durango Seattle-Tacoma-BellevueDemographic Characteristics (2012)Metroplitan Area Population 306,080 306,080 2,611,271 60,112 52,142 3,503,118Median Age (Years) 36.0 36.0 36.0 35.0 39.0 37.0Median Household Income $58,422 $58,422 $61,079 $69,537 $57,791 $68,121Facilities (SF)84972SFAmericraftFunction Space 29,929 SF36,000 SF & 12,500 SF Exhibition Halls; 7,200-seat Bud Events Center29,000 SF Events Center; 4,800 SF Hall5,000 SF Exhibit Hall 10,000 SF Exhibit Hall84,972SFAmericraftShowPlex; 45,200 SF Pavilion; 19,500 SF Expo Hall;2,800 SF Fair View Club; 13,400 SF Centennial Building; 5,265 SF Fair Farm; 12,354 SF Restaurant BuildingMeeting Rooms(s) 978 SF5,760 SF + Larimer Conference Center (96,000 SF)3,300 SF Conference Room -5 Meetring Rooms (5,270 SF)12,768 SF32500SFEagleRiverCenter1Outdoor Arena(Dirt/Grass);Arena(s) Existing Arenas On-Site 2 Outdoor Arenas (Dirt)1 Indoor Arena (Dirt); 1 Outdoor Arena (Dirt)32,500 SF Eagle River Center (Indoor Arena with Dirt Floor); 1 Outdoor Arena (Dirt)1 Outdoor Arena (Dirt)();25,000 SF Indoor Arena (Dirt); 18,696 SF Open-Air Covered Arena (Dirt/Asphalt)Other (Barns/Pavilions etc.)Proposed Barns in SubsequentPhases; Adjacent Sports Complex4 Pavilions 2 Barns; Pavilion -33,000 SF Pavilion; 2 BaseballField; Outdoor Recreation SpaceBarn Complex; 5-acres ofLandscaped Grounds (SillyVille)Events and Attendance# Events (per annum) Refer to Demand Projections 2,268* 126 124 388 145Total Attendance (per annum) Refer to Demand Projections - 10,000+ - 1.6 millionRevenue and ExpensesNet Income (Loss) ($'000s) - Most Recent YearRefer to Financial Projections ($635) ($1,000) - - $1,300Source: Relevant Facilities, Statistics Canada, Demographics Now, JohnsonConsulting* Total bookings including move in and move out days6
Interviews Summary/ Survey ResultsInterviews Summary/ Survey ResultsThe current Estes Park Conference Center is attractive, however:– There is insufficient exhibit space–Rocky Mountain Park Hotel needs upgradingIf these two variables change, market opportunities would improve substantiallyTh th ti f th it dThe aesthetics of the site are good.– Direct road access– Lake and mountain viewsThere is supplemental demand from events that may be too large forThere is supplemental demand from events that may be too large for existing hotel meeting space & Conference Center.There is opportunity for proposed Multi-Purpose Event Center to serve as a yearround regional facilityyear-round, regional facility.As the survey indicated, potential users support the development of a true multi-purpose venue that can be adapted to suit needs of a variety of diff fdifferent types of events.7
Interviews Summary/ Survey ResultsInterviews Summary/ Survey ResultsUsers want state-of-the-art technology, flexible space, & design that maximizes, & takes advantage of, high quality views = most important/ desirable elements.Users require quality food & beverage offerings, accessibility, ample & attractive pre-function space, affordable rental rates, a true multi-purpose ‘feel, & high quality acoustics = fundamental for ensuring return business.There is interest from range of groups & particularly for events that rotate throughout the region.Adding a new facility will open up a category of demand that would not have previously considered Estes Park.A robust sales effort and familiarization of Estes Park as an eventA robust sales effort and familiarization of Estes Park as an event destination is imperative.The majority of those that are familiar with Estes Park think of it favorably.8
Proposed Facility Program/ RecommendationsProposed Facility Program/ RecommendationsMulti-Purpose Room: 26,929 SF of flexible space, offering a concrete floor, & divisible into numerous smaller sections.Meeting Rooms: 978 SF of meeting & breakout space, in 2 separate conference rooms.Additional Support Facilities:628 SF of office space 346 SFAdditional Support Facilities: 628 SF of office space, 346 SF concession/ catering kitchen, restrooms, & other storage & support amenities.Fairgrounds could support larger venue but the Event Center, as proposed, will serve the market well, given budget considerations & existing inventory of hotel meeting space in the marketplace. Upon review of plan, concourse areas could be larger.9
Current Events &Sample of Lost BusinessCurrent Events & Sample of Lost Business2008200920102011AttendanceEventEvents & Attendance - Stanley Park Fairgrounds (2008-2011)2008200920102011Jazz Fest 1,235 1,500 1,250 628Wool Market 7,258 7,850 8,000 7,791Miniature Horse Show 200 283 275 250Rooftop Rodeo 8,560 10,773 11,642 13,489Elk Fest 9,000 10,000 11,000 11,500Arabian Horse Show 350 500 400 168Christmas Parade 18,000 25,000 22,000 20,000Dressage Horse Show 350 400 538 527Hunter Jumper Shows 5,000 4,200 3,500 3,000p,,,,Scottish Festival 75,000 50,000 80,000 45,000Draft Horse Show - - 1,000 1,500Other Events 6,395 6,401 5,754 -Downtown Events 85,898 110,073 125,984 122,640Wti1 525Westernaires ---1,525Senior Rodeo - - 1,000 1,200TOTAL 217,246 226,980 272,343 229,218% Change - 4.5% 20.0% -15.8%10Source: Town of Estes Park, Johnson Consulting
Projected EventsProjected EventsEvent Type 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024ExhibitionEventsProjected Events at Proposed Multi-Purpose Event CenterExhibition EventsTradeshows, 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 EventsMeetings & 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 100 106 112 118 124 124 124 124 124 124 Source: Johnson ConsultingAdditional Equestrian EventsTrain show and other specialty events, wrestling and other sporting tournaments/events,Train show and other specialty events, wrestling and other sporting tournaments/events, outdoor equipment shows, arts and craft showsConcerts & live entertainment, associated with events or independentAssociation conferences/niche & overflow from Conference Center, area hotels & The RanchWeddings & social functions11Weddings & social functions
Projected AttendanceProjected AttendanceEvent Type 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024ExhibitionEventsProjected Attendance at Proposed Multi-Purpose Event CenterExhibition EventsTradeshows, 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 EventsMeetings & Seminars 3,000 3,200 3,400 3,600 3,800 3,800 3,800 3,800 3,800 3,800 g,,,,,,,,,,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 101,600 112,100 118,100 126,000 134,200 136,500 138,900 141,300 143,700 146,700 Source: Johnson Consulting12
Existing OperationsExisting Operations2008 2009 2010 2011Events Revenues & Expenses - Stanley Park Fairgrounds (2008-2011)Revenues $509,673 $555,680 $600,001 $580,115Expenses ($1,000,173) ($971,228) ($1,088,758) ($1,097,526)Net Operating Income (Deficit) ($490,500) ($415,548) ($488,757) ($517,411)STfEtPkJhCltiSource: Town of Estes Park,JohnsonConsulting13
Financial ProjectionFinancial Projection2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024RevenueEvent RevenueProposed Multi-Purpose Event Center - Pro Forma Operating Statement of Revenue and Expenses (Inflated Dollars)Space Rental -- $214,821 $226,801 $238,780 $269,594 $290,927 $298,238 $304,207 $310,329 $316,594 $322,895Net Food and Beverage -- 205,263 223,635 241,536 265,415 290,857 303,881 317,805 332,234 347,494 363,429Equipment Rentals -- 44,754 48,431 52,264 60,484 66,902 70,298 73,497 76,851 80,362 84,011Event Services -- 1,432 1,550 1,672 1,935 2,141 2,250 2,352 2,459 2,572 2,688Advertising Revenue -- 56,250 57,656 59,098 60,575 62,089 63,642 65,233 66,864 68,535 70,249Other Revenue -- 40,000 41,000 42,025 43,076 44,153 45,256 46,388 47,547 48,736 49,955Land Lease IncomeGrant Income$$$$$$$$$$$Total Operating Revenue$0$562,520$599,073$635,376$701,080$757,068$783,565$809,481$836,284$864,293$893,226Direct Operating ExpensesContract Services -- 63,060 68,572 74,044 82,585 90,749 94,973 99,316 103,832 108,594 113,559 Utilities -- 120,000 123,000 126,075 129,227 132,458 135,769 139,163 142,642 146,208 149,864Maintenance & Repairs -- 42,964 46,494 50,174 58,065 64,226 67,486 70,557 73,777 77,148 80,650Supplies -- 7,161 7,749 8,362 9,677 10,704 11,248 11,760 12,296 12,858 13,442Other Expenses -- 540 580 630 730 800 840 880 920 960 1,010Sub-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 ExpensesSalaries 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 Expenses500,000$ 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 Consulting14
Net Operating EffectNet Operating EffectCurrent operations are part of Town budget and include event activity at Stanley Park and Downtown.The proposed facility will improve the overall portfolio of offerings.At this point management is passive due to current inventory of facilities.Annual contribution to current operations - $500,000Incremental required contribution - $135,000Strategies to improve both contribution requirements are:– More aggressive management– Participation in more revenue streams$Potential net effect –combined support of $400,00015
Economic ImpactEconomic ImpactMulti-Purpose Event Center, Estes Park, ColoradoSummary of Economic and Fiscal ImpactsTransfer ImpactNet New to Estes ParkNet New to ColoradoTotalDirect Spending $7.4 $14.0 $8.4 $21.4IndirectSpending21402461Indirect Spending2.14.02.46.1Induced Spending 1.4 2.7 1.6 4.1Total Spending$11.0 $20.6 $12.4 $31.6Earnings $3.1 $5.9 $3.5 $9.0Employment (Full-Time Equiv. Jobs) 110 200 120 310Source: Johnson ConsultingEvery year $20 million is imported to Estes ParkThi i b t i tThis is over an above current impacts 200 jobs in all facets of businesses in the community– Show production & ownership–Event setup & tear down16Event setup & tear down– Hotel, Retail, Services– Outside show vendors (A/V & F&B)
Fiscal ImpactFiscal ImpactMulti-Purpose Event Center, Estes Park, ColoradoEstimatedAnnual Fiscal Impacts ($000's) (Stabilized Year)TaxableTaxTax RatesTaxableSpendingTaxRevenuesGeneral Sales TaxState Sales Tax2.90%$19,556 $567County Sales Tax0.60%$19,556 117City Sales Tax4.00%$19,556 782ySubtotal7.50%$1,467Hotel/ Motel TaxLocal Hotel Tax2.00%$2,234 $45Total$1,511SJhCltiSource: JohnsonConsultingTax revenue is based on a subset of the $31.6 millionThis is incremental and does not include current operations or spending at ppgStanley Park or Estes ParkBig picture, total tax revenue for the complex after expansion is about double our projections.17
Feasibility Study ConclusionFeasibility Study Conclusion1. Does the proposed Multi-Purpose Event Center make sense for the community & the Fairgrounds? Absolutely! 2. Will the Multi-Purpose Event Center cause demand & revenue diversification to improve year-round operation of the Fairgrounds?ffYes, if targeted and marketed appropriately –potential for promotional alliance with The Ranch. Concrete floor will maximize multi-purpose potential of Event Center.3If built how will the facility be operated/ managed & what would the3.If built, how will the facility be operated/ managed & what would the demand & operating profile be?Need for unified & collaborative approach to sales & marketing.Projected to host 100 events & 101 600 attendees in Year 1; stabilizingProjected to host 100 events & 101,600 attendees in Year 1; stabilizing at 124 events & 134,200 attendees in Year 5.Projected operating deficit that is consistent with comparable facilities.18
Feasibility Study ConclusionFeasibility Study Conclusion4. Is such a facility consistent with the profile of the market & will it contribute to economic development, tourism & social growth?Yes. Estes Park is a popular tourist destination but it lacks necessary infrastructure to support year-round visitation. The new facility could:Serve as a year-round sporting, entertainment, cultural, & consumer show destinationshow destination.Host current events better & attract new events.Summer will always be the strongest season but the facility will attract demand throughout the yeardemand throughout the year.5. Does the community have the resource base to fund such a project &what other resources can be brought to bear to fund the project?Identified $5-6 million budget is consistent with similar projectsIdentified $5-6 million budget is consistent with similar projects.New facility will improve operating efficiencies across the Fairgrounds & reduce required operating subsidies.19
Implementation StrategyImplementation StrategyDevelop confidence that this is the right thing to do.This is not an either or proposition, equestrian events and a pp ,qdiversified set of events is warranted. Additional investment may be required to round out equestrian demand (horse barns).FAM trips for event and convention plannersDevise strategy to reduce congestion from downtown (parking), while at the same time engender visitors to Stanley Park to visit downtown.Association with Conference Center is a plus and the Stanley Hotel dth ti hihi tt t ith tand other area properties are a high image attractor with a strong sales force. 20
Questions & Next StepsQuestions & Next Steps21
To: Honorable Mayor Pinkham
Town Board of Trustees
Town Administrator Lancaster
From: Bo Winslow, Community Services Coordinator
Date: February 7, 2013
RE: MPEC – Stall Barn Report
Report:
While we have shared the history of these projects several times, staff feels
with the changing Boards, it is important to present a brief recap of the
projects before you.
Kinney and Associates was hired to design a multi-purpose building that
would house horses in the summer season and allow for other event
type uses the remainder of the year. This building’s design includes
modest features that would encourage year around uses and also be
durable enough to handle the equestrian uses.
Norris Design was hired to both finalize a Master Plan* of the property
and design a Stall Barn. Norris Design looked at the facility and
produced a Master Plan that would establish a long range final decision
to accommodate the eventual replacement of 500 stalls and allow for
safe, efficient and practical flow for the facility with consideration for
equestrian use, the visitor and maintenance. The Master Plan Norris
Design developed takes into consideration the already designed MPEC
as well as the arenas constructed in 2006. This plan meets the needs of
the current facility users as well as looks at the future opportunities.
Johnson Consulting was hired to provide an economic assessment for
the MPEC alone. The proforma has been provided.
Community Services Memo
Remember our goal, to maintain current events, grow new events and
remove the dangerous – outdated stalls on the property and build new.
We currently have 400 stalls and the goal is to have 500. We also
decided we should build buildings with multi use capabilities to maximize
the economic potential of the citizen’s investment in the property and
help with economic growth in the community.
Whether the MPEC is built first or the Stall Barn is built first, per the
Master Plan, the combined square footage of both buildings is
imperative to the ultimate stall count. Staff agrees removing the modest
features of the MPEC would make the facility less marketable and would
end up costing more in the end.
• YTD Town has paid approximately $300,000 for the
design of the MPEC.
• If the MPEC would just be used as a stall barn and did
not have “other amenities” Town would save
approximately $220,000 on the construction cost,
however it would then need to be redesigned costing
approximately $150,000. If you look at the square
footage of the MPEC and use a multiplier of $80 per sf,
add in redesign fees of $150,000 and 2% per year for
increase in construction cost, you are at approximately
$3.3 million for a stall barn the size of the MPEC.
It is important to remember we need to replace the old stalls with new.
Norris Design has given a Master Plan that shows the placement and
square footages of the buildings necessary to replace the old with new
and increase overall stall count from 400 to 500.
• The Hunter Jumper agreement gives incentives
in their contract to build new stalls over and
above 400.
• The MPEC starts to generate new money in the
community and is the keystone of the multi-use
stall barns.
FF& E estimates
MPEC Stall Barn
Used for both
buildings
Quantity/Size Price Quantity/Size Price Quantity/Size Price
Stalls (140) ‐10x10 $137,980 (95)‐10x12 $106,695
Mats (1459) ‐ 4x6 $55,442 (958) ‐ 4x6 $36,404
Chairs 800 $32,000 400 $16,000
Tables 140 $13,228 100 $9,449
Pipe and Drape 200'$5,000 100'$2,500
Office Furniture/Conference
areas 3 offices $12,500
Man Lift 1 $10,000
Elect. Distribution Boxes 5 $3,500
Event Fence 200'$3,300
Stanchions $1,000
Storage racks $3,500
Cord Covers 10 $1,000
Floor Cleaning Machine 1 $5,000
Manure Carts 10 $3,000
Moving Carts 5 $1,000
Total $256,150 $171,048 $31,300
Stalls ‐ Rental (140) – 1 month $14,000 (100) ‐ 1 month $10,000
IT ‐ (these numbers are
estimates) and not included
in either building $175,000 $25,000
*See attached Master Plan drawing
STANLEY PARK FAIRGROUNDFACILITY MASTER PLAN - JULY 2012
Ex. Arena
Arena
Ex. Arena
Ex. Arena
Ex. Arena
FUTURE BUILDING
PHASE I STALL BARN
THOROUGHFARE
FUTURE ARENA
CIRCULATION
FACILITIES
PEDESTRIAN
TRANSPORTATION
Parking
Enhanced
Landscape
Area
Senior
Center
Museum
Ex. Detention/
Stock Fourth StreetMa
n
f
o
r
d
A
v
e
n
u
e
Ex. RV
Parking
Future Use
TBD
Ex. Parking
MASTER PLAN
U.S. HIGHW
A
Y
3
6
Warm Up
Area
Feed
4,800 SF
Stall Barn
44,200 SF
Stall
Barn
11,200 SF
PHASE 1
STALL BARN
26,230 SF
MPEC
38,000 SF
140
95
210
50
Tent Community DriveCONS
FINANCE Memo
To: Honorable Mayor Pinkham
Board of Trustees
Town Administrator Lancaster
From: Steve McFarland, Finance Officer
Date: February 7, 2013
RE: Building Stall Barn and/or Multi-purpose Event Center (MPEC)
Background:
Financial events of the last month:
• Jim Manire of BLX Capital, discussed funding options in the January 9, 2013 Study
Session.
• Staff presented an estimate of available cash for capital spending in 2013, at the
January 22, 2013 Study Session. Costs for the Stall Barns and MPEC were also
discussed at this meeting, as was the CH Johnson MPEC proforma.
• Following the preliminary visit by CliftonLarsonAllen (auditors) in late January 2013, Staff
has issued DRAFT financial statements for December 2012.
• Directors Zurn and McFarland met on January 31, 2013 and reviewed the rollover
document to be presented at the February 12, 2013 Board meeting, to ensure that
Community Reinvestment Fund (CRF) projects are accounted for as accurately as
possible for 2012/2013.
The following data is derived from the above events:
• The forecasted costs for the Stall Barn ($1,684,000) and MPEC ($4,418,000) total
$6,102,000. Combining the projects and adding alternatives raises the cost to
$6,187,550. This does not include FF&E estimated at $195,000 for the Stall Barns and
$425,000 for the MPEC.
• The MPEC pro-forma reports that the MPEC will operate indefinitely at loss, ranging at
around $140,000/year for the foreseeable future. However, the study also suggests that
new sales tax of $782,000 annually may be generated.
• Staff assumes that the primary funding options would involve a combination of cash and
Certificates of Participation (COPs). Other funding options requiring public vote involve
a much longer time horizon.
• Subsequent analysis confirms $2,300,000 million in cash available collectively from the
General, Community Reinvestment, and Community Service Funds. There do not
appear to be material differences between the estimates of ending fund balances of the
revised 2012 Budget and estimates as of 01/31/2013. The following caveats should be
noted when considering spending all of the $2,300,000:
o This action will reduce the General (GF) and Community Service Funds (CSF)
ending fund balances as of 12/31/2013 to 25%.
o The 25% includes the 3% Tabor reserve of ~$460,000. That is, the Tabor
reserve is part of, and not separate, from the remaining funds in GF and CSF.
o The most likely issues with potential shortfall in fund balances would involve
2013 sales tax not realizing the forecasted $7,800,000.
o CRF fund balance would be reduced to the $200,000 set aside for the museum
storage facility. This means that there would be no available cash for flexibility.
Cash flexibility might be important depending upon unforeseen needs and
opportunities, such as results from the Elm Road study, monies needing to be
“fronted” for grants, etc.
• COPs are most likely going to be the preferred method of finance. COPs are usually
issued from periods of 10-20 years. Rates vary (currently 2.25%-10 years; 3.50%-20
years) depending upon duration. The shorter term, the less complicated it is to obtain
the COPs. A 10-year COPs might be as simple as engaging a bank. A 20-year COPs
would involve underwriting, RFPs, being rated by S&P/Moodys/Fitch, etc., and will take
longer to obtain.
• A 10-year COPs is going to cost about $110,000/year for every $1,000,000 borrowed. A
20-year COPs is going to cost about $70,000/year for every $1,000,000 borrowed. For a
$5,000,000 loan, the difference in interest expense over the life of the loan would be
about $1,400,000 ($600,000 for a 10-year COPs; $2,000,000 for a 20-year COPs).
Staff stands ready to implement whatever course of action the Town Board decides to
pursue.
Budget:
N/A
Staff Recommendation:
N/A
Sample Motion:
N/A
AVAILABLE CASHGeneral Fund (GF) Expenditures (2013 budget) $13,078,564Community Service Fund (CSF) Expenditures (2013 budget) 2,577,468 Transfer between GF/CSF(1,945,000) Total 13,711,032 x25% for fund balances 3,427,758General Fund fund balance (2013 budget) 3,724,085CSF fund balance (2013 budget) 249,455 Net available funds from calculations 545,782 assumes $462,500 TABOR now part of 25%Community Reinvestment (CRF) ‐ fund balance 2013 Budget1,765,954 subtotal: 2,311,736 NEW CONSIDERATIONS: $ transferred to CRF from GF ‐ Streets?(346,789) Parking structure loan: Addback: ($3.3285m grant; $4.460m project) 1,131,500 New: ($3.7285m grant; $4.661m project)(932,500)$2,163,947
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.
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
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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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SECTION III
ECONOMIC AND DEMOGRAPHIC ANALYSIS
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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.
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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.
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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).
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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)
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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)
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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)
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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
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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)
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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.
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Section 3 Economic and Demographic Overview | DRAFT January 2013
Feasibility Study of a Year Round Multi-Purpose Event Center at Stanley Park
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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)
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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)
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Section 3 Economic and Demographic Overview | DRAFT January 2013
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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.
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Section 3 Economic and Demographic Overview | DRAFT January 2013
Feasibility Study of a Year Round Multi-Purpose Event Center at Stanley Park
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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).
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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
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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
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Feasibility Study of a Year Round Multi-Purpose Event Center at Stanley Park
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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
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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
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Feasibility Study of a Year Round Multi-Purpose Event Center at Stanley Park
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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.
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SECTION IV
INDUSTRY TRENDS
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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
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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.
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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.
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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
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Section 4 Industry Trends | DRAFT January 2013
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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
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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.
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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
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Section 4 Industry Trends | DRAFT January 2013
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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
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Section 4 Industry Trends | DRAFT January 2013
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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
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Section 4 Industry Trends | DRAFT January 2013
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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
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www.chjc.com | cjohnson@chjc.com
Section 4 Industry Trends | DRAFT January 2013
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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
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www.chjc.com | cjohnson@chjc.com
Section 4 Industry Trends | DRAFT January 2013
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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
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Section 4 Industry Trends | DRAFT January 2013
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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
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Section 4 Industry Trends | DRAFT January 2013
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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
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Section 4 Industry Trends | DRAFT January 2013
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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
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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
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Section 4 Industry Trends | DRAFT January 2013
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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
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Section 4 Industry Trends | DRAFT January 2013
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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
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www.chjc.com | cjohnson@chjc.com
SECTION V
COMPRABLE FACILITIES ANALYSIS
DRAFT
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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GREEN
RV
PARKING
GREEN
PARKING
GREEN
PARKING 7th St SW
9th Ave SW5th St SW15th Ave SW9th St SW
BARN
GATE ORANGE
GATE
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SillyVille
NORTHBARN
GATESERVICE
GATE
Enter/ExitGreen Parking
Entrance forPurple andOrange Gatesand Parking
Entrance forGreen Gateand Parking
18
6
7
8
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M
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H
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G
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J
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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PAGE 102
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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
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PAGE 103
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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
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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
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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
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PAGE 106
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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
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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
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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
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SECTION IX
FEASIBILITY STUDY CONCLUSION
DRAFT
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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
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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
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PAGE 111
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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
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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.