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HomeMy WebLinkAbout6.B.(2)C o m m u n i t y & E c o n o m i c D e v e i o p m e n t 227 west Jefferson. Sufie 1200, South Bend. Indiano 46601 -1830 Phone 574/235 -9371 Fox 574/235 -9021 To: Redevelopment Commission From: Jitin Kain, Senior CED Specialist Subject: Reimbursement for Economic Impact Analysis Date: October 19- 2012 (P 8 (29 Attached with this memo is a proposal from AECOM Economics for the study and analysis of three City - owned assets: The Morris Performing Arts Center, Palais Royale and Century Center. AECOM Economics is a global leader with a history of 50+ years in analyzing and planning facilities such as convention centers, theaters, and other types of public -use facilities for this purpose. The goal of this study is to determine the economic impacts of these facilities on the downtown area as well as provide a case study of facilities in similar sized communities in regards to their operations and management. In order to expedite the process and complete the study prior to the end of the year, the proposal from AECOM was presented to the Board of Public Works with the City's Administration & Finance department covering the contract amount. Staff requests Commission approval to reimburse Administration & Finance for the Study in the amount of $15,000. a. -cony Proposal for Economic and Fiscal Impact Analyses and Benchmarking Analysis for South Bend's Century Center, Morris Performing Arts Center, Palais Royale, and Other Downtown Assets Submitted to Mr. Scott Ford, Executive Director Community & Economic Development, City of South Bend Submitted by Al Technical Services, Inc (Al September 21, 2012 303 East Wacker Drive stale L06 chicaq., IL 00601 312373.7556 FAX 212 , 373.680U www.aecom.COa+fetonomics AECOM September 21, 2012 Mr. Scott Ford Executive Director Community & Economic Development City of South Bend 227 W. Jefferson Blvd. South Bend, IN 46601 Submitted via email: sford@southbendin.gov Dear Mr. Ford: AECOM Economics is pleased to present this proposal to prepare an economic and fiscal impact analysis of South Bend's three publicly -owned events facilities (the Century Center, Morris Theater for Performing Arts, and Palais Royale), as well as a peer community and benchmarking analysis. AECOM Economics (formerly Economics Research Associates) has a history of 50+ years in analyzing and planning facilities such as convention centers, theaters, and other types of public -use facilities. In addition, in comparison to other firms that focus on event facilities, we also offer expertise in broader economic development and downtown planning, as evidenced by our extensive experience in downtown planning studies. For this project, we offer staff whose work focuses on both downtownleconomic development as well as public - assembly facilities. The remainder of this document contains our proposal, based on our understanding of the project and your needs. If you have any questions, please feel free to contact Chris Brewer at (312) 373 -6931 or David Stone at (312) 373 -7601. Thanks in advance for your consideration, and for the opportunity to work with you. Sincerely, °, -p "`- Chris Brewer David Stone Principal Associate Principal ANOM Table of Contents ProposedScope of Work .............................................................. ..............................4 Task 1 — Project Kickoff .................... .............................. ..............................4 Task 2 — Economic and Fiscal Impact Analyses of Facility Operations ............4 Task 3 — Peer Market/Facillty Benchmarking Analysis ....... ..............................5 OptionalTasks .................................................................... ..............................6 Timelineand Fees ......................................................................... ..............................7 Timeline for Completion ...................................................... ..............................7 Feesand Expenses ..................................................... ............................... .. 7 RelevantExperience ..................................................................... ..............................8 Acceptance................................................................................. ............................... 27 STANDARD PROPOSAL ADDENDUM ........................................ .............................28 Proposed Scope of Work The primary intent of this scope of work is to estimate the economic and fiscal impacts attributable to the Century Center, the Morris Theater for Performing Arts, and the Palais Royale, in a manner that is consistent with your anticipated budget for this study. As a result, we will provide a preliminary set of impact analyses for the facilities in a consistent format, utilizing all actual past data that is available. We will also provide analyses of similar markets that have a similar collection of public assets, and comment on implications related to operations and management. Our analysis will also include a benchmarking analysis of the Century Center in relation to other similar convention centers. These will also be prepared in a manner that will assist the work of the group of community stakeholders, and would inform later tasks to help guide the planning for an improved downtown South Bend. We also provide a menu of options regarding other potential services. The following describes our proposed scope of work, based on our understanding of your needs and our conversations with you. Task 1 — Project Kickoff In this task, we will meet with client representatives and will begin to identify, accumulate, and analyze relevant information. Soon after selection, we will meet with client representatives and others in South Bend to complete the following tasks, among others: • Final agreement on scope of work, timing, and other matters, • Meetings with stakeholders, such as client representatives, facility management and staff, public officials, and others, • Data collection and identification of appropriate contacts, and • Tours of the relevant facilities, downtown South Bend, and the surrounding area. Task 2 — Economic and Fiscal Impact Analyses of Facility Operations The intent of the economic and fiscal impact analyses will be to measure various impacts attributable to the presence and operations of the Century Center, Morris Theater for Performing Arts, and the Palais Royale. These impacts will be quantified at the City level, and all three facilities will be analyzed and documented separately in our report. As much as possible, assumptions will be based on actual historical information from facility operations (such as events, attendance, attendee days, revenues and expenses, ticket sales by location, and others), including past studies completed for the facilities, and supplemented, as needed, from our experience with similar facilities in other markets as well as data from groups such as Destination Marketing Association International, the Convention Industry Council, Americans for the Arts, and local and state tourism departments. ALCom We will estimate the following (for the most recently completed fiscal or calendar year of operations): • Actual facility revenues that are considered to be local impacts, • Visitation and attendee /participant origin, and resulting length of stay, • Daily spending by local and non -local residents (within and outside of the facilities), by category, and the resulting total spending, • Number of hotel room nights generated, and • Employment and income impacts (number of jobs supported /created by the operations of the facilities, and the associated payroll). The following graph summarizes the types of operational impacts we would measure and how they relate to one another. Inside the facility (tickets, F &B, Throughout the City (meals, hotel, merchandise, etc.) entertainment, transportation, etc.) Indirect Induced Economic (Spending) Impacts Others (Local Employment and Income, Hotel Rooms, Tax Revenues) Task 3 — Peer Market/Facility Benchmarking Analysis In this task, we will provide the following analyses: • Facility management in peer communities — with input from client representatives, we will select a set of markets with similar characteristics to South Bend that have a similar collection of public - assembly facilities under ownership. For these communities, we will interview public AXOM representatives, facility management, and/or others in order to better understand 'best practices" in terms of issues such as shared or individual management, public vs. private management, competition or lack thereof between the individual facilities and any existing privately -owned facilities, and others. We will also supplement this task with information from our own experience with these types of facilities and markets, as it relates to South Bend. • Century Center benchmarking — based on available data from the Century Center, we will provide a set of benchmark comparisons to industry norms as well as results from individual comparable facilities. Based on input from client representatives regarding its goals for this Process, we would complete analyses for items such as profitability/subsidy levels, event levels, operating ratios for individual line items, staffing levels, square footage, and/or others. Optional Tasks Based on our discussions with you and our understanding of your needs, we can also offer the following services: • More comprehensive economic and fiscal impact analyses, • A broader assessment of management options and implications that include other downtown assets, such as parking garages and retail, and • Operational benchmarking analyses for the Morris PAC and Palais Royale. We are more than happy to discuss these tasks with you. A=COM Timeline and Fees Timeline for Completion Based on our proposed scope of services and your needs for a final report by early December, we commit to completing all work and a final report by the end of November. This assumes that the project can begin by late Septemberlearly October. Fees and Expenses For the proposed scope of work, we propose a fee of $15,000, which includes all anticipated expenses. Expenses include travel to South Bend on two occasions — one for kickoff meetings, and a second to present the final report to clienticity representatives. ISCOM Relevant Experience The following pages summarize our relevant work experience in preparing economic impact and other planning studies for similar facilities and complexes, as well as in downtown planning /economic development analysis. ASCOM Rushmore Plaza Civic Center Operating and Economic impact Analysis - Rapid City, South Dakota AECOM Economics recently completed an analysis for a new multipurpose events center on the campus of Rapid City's Rushmore Plaza Civic Center, which currently includes a 10,00 -seat arena, a 7,000 -seat arena, a theater, and multipurpose meeting /convention space. The analysis focused on the future operations of a new multipurpose arena to replace the obsolete f 0,000 -Seat Barnett Arena. The analysis included forecasts of the future operations of the entire Civic Center complex, such as events by type and facility, attendance, and revenues and expenses under two scenarios: an "as -is" scenario that assumed no new development at the Civic Center, and a second scenario that assumes the development of a new events center. Based on these detailed forecasts, we estimated the economic and fiscal impacts to be captured within Rapid City under the two scenarios. Following the presentation of our final report in July, Rapid City's City Council unanimously approved project funding, AlCOM Sioux Falls Events Center, Convention Center, and Arena Demand /Operating and Economic Impact Study - Sioux Falls, South Dakota AECOM Economics recently worked on behalf of the City of Sioux Falls in the planning of its 12,000 -seat Events Center. AECOM prepared a comprehensive demand and economic impact analysis that helped to guide site selection for the new facility. The impact analyses also considered future operations of both the existing Sioux Falls Convention Center and Sioux Falls Arena, as they would be affected by the presence of the new Events Center. We also considered the operations of downtown's Orpheum Theater, which is jointly managed by the Arena manager. Our analysis compared the following at two sites within the city (a downtown site and the location of the current arena and convention center): • Economic and fiscal impacts from facility construction and operations, • The potential for new spinoff development through opportunities for new construction and renovation of surrounding land uses, • Potential operating efficiencies from cc- location with the existing facilities, compared to the downtown site, The effect of the construction project on the sites' immediate surroundings, and • The experience of other arenas located at downtown and non - downtown sites. The impacts were based on forecasts of facility demand and revenues and expenses at both sites, which we also developed in concert with SMG and Global Spectrum, managers of Sioux Falls' existing arena and convention center. The city selected the preferred site based on our study, and local voters approved the project in November 2011. AXOM Iowa Events Center, Feasibility and Economic /Fiscal Impacts Analyses - Des Moines, Iowa More than ten years ago, AECOM conducted an extensive evaluation of public assembly venues in Des Moines to determine if existing facilities were adequately serving the market for events such as sporting events, conventions, and meetings AECOM determined that new public assembly venues were needed to effectively serve current and future markets. We forecasted the events, attendance, operating costs and revenues for the proposed facilities over a 20 -year period. An economic impact assessment considered the impact of the project to Des Moines and the State. The project concept included public and private financing strategies for a $200- million development program. AECOM was later engaged multiple times, to review three revised arena and convention center options. AECOM updated market information to arrive at demand implications and economic impact estimates for each revised development option. Based in part on this document, local officials decided to build new arena and exhibition hall components, and renovate Veterans Memorial Ball, with state support for a portion of the development cost. The resulting Iowa Events Center includes the 17,000 -seat Wells Fargo Arena, the 200,000- square foot Hy -Vee Hall, and the renovated Veterans Memorial Auditorium (with approximately 100,000 square feet and 7,200 seats). More recently, we have assisted in recommending future expansion plans related to adding more event space at the IEC (as our original development recommendations were not fully built). A=COM Tacoma Dome Renovation Feasibility, Economic Impact, and Planning Analyses - Tacoma, Washington AECOM's Economics, design, planning, and cost consulting experts are currently completing a comprehensive analysis of the future of the Tacoma Dome and its surrounding district in downtown Tacoma, which includes the arena, its adjacent exhibit hall, parking, and other land uses. Our analysis is generally helping to frame the future of the facility and the Dome District, through analysis of two renovation scenarios: one in which the Dome attracts a major professional sports tenant, and a second in which the facility continues to host civic sports and entertainment events and exhibitions. Both scenarios include analyses of the local market, the competitive regional environment for events and facilities, design and cost implications for the arena and exhibit hall, forecasts of future operations and economic impacts of both facilities, and recommendations regarding future opportunities for redevelopment in the District and downtown Tacoma. A=COM Downtown Urban Village Analysis - State College and Ferguson Township, Pennsylvania AECOM Economics was engaged by the Borough of State College and Ferguson Township on a market feasibility assessment for the urban village area, a neighborhood directly adjacent to Penn State University and downtown State College. The approach included a specific assessment of the impact of Penn State University students on local demand for residential and retail development, along with interviews with local stakeholder groups, demographic comparisons, and fiscal impacts of residential versus retail development. The approach evaluated overall retail inventories, current sales, and vacancy levels. Project recommendations for the neighborhood focused on issues associated with considerable student housing in the defined neighborhood, which reduced retail market potentials. The approach included identification of near -term strategy efforts to reposition the neighborhood for potential revitalization. Subsequent to the study, the client moved to engage a planning firm to evaluate linkage and connection opportunities within the UV study area, as land use conflicts remain a key challenge for the neighborhood. A=COM West Village Phase 11 Market/ Financial Analysis - Durham, North Carolina AECOM Economics was engaged by the City of Durham, North Carolina to analyze the adaptive reuse of a 900,000 - sqaure -foot complex of former tobacco warehouses called West Village Phase II. We analyzed the developer proforma, with the intent of estimating the project's return on investment based on varying levels of public incentive support. The approach evaluated local residential, retail, and office real estate markets, along with basic demographic analysis. In addition, we explored similar downtown housing markets around the country to understand the competitiveness of downtown locations for housing development. As part of the financial analysis, we reviewed developer financial assumptions, conducted interviews with downtown development officials, and evaluated competing adaptive reuse projects in downtown Durham, including American Tobacco as well as the Phase I component of West Village. Relevant secondary data regarding real estate market performance, including vacancy, demand drivers, operating expenses, and lease rates was also collected. The approach also considered the use of historic tax credits and assessed benchmark developer returns on investment, assuming both 100% equity investment and a combination of debt and equity investment. The above steps were used to help develop a preliminary financial analysis of the Phase II project. Based on our analysis, the City moved to approve an agreement with the developer to move the project forward. At build -out, the project will have 366 loft apartments and about 225,000 square feet of office and commercial space. A=COM Downtown Retail Strategy - Traverse City, Michigan AECOM Economics was engaged by the Downtown Development Authority (DDA) to conduct a real estate market analysis of downtown Traverse City, evaluating current trends regarding retail, residential and once development in the downtown business district. The approach included an examination of local demographics, including an analysis of migration patterns since 1997. This region included the city of Traverse City with about 15,000 residents as well as a larger five- county trade area that encompassed 154,000 residents. The local and regional retail market was also evaluated, focusing on a downtown inventory of about 450,000 sq. ft., and a regional retail inventory of about 4 million sq. ft. Vacancy and lease rate data was collected and compared with national retail industry trends. Similar approaches were followed for the office market, which saw growth of about 350,000 sq. ft. of new space since 1997, and the downtown residential market, which grew by 200 units in the same period. Several critical findings for downtown Traverse City were identified, including concerns about store performance in relation to rent levels, as well as speculation, which has driven up prices for downtown buildings above levels supported by commercial and office rents. Core recommendations focused on ways to expand evening events to boost pedestrian traffic in the evenings, and on the formation of a non -profit entity to facilitate downtown reinvestment and land assembly. Other Relevant Work Experience Convention /Conference and Meetings Facilities Expansion of Washington State Convention 8 Trade Center Seattle, Washington Client: WA State Convention & Trade Center San Diego Convention Center Expansion San Diego, California Client: San Diego Convention Center Corporation Pocatello Events Center Pocatello, Idaho Client: Pocatello Auditorium District Phoenix Convention Center Expansion Phoenix, Arizona Client: Office of Auditor General, Slate of Arizona Expansion of the Moscone Center San Francisco, California Client: City of San Francisco Northern Kentucky Convention Center Covington, Kentucky Client NKCC Myrtle Beach Convention Center Expansion Myrtle Beach, South Carolina Client: BRI Reno - Sparks Convention Center Expansion Reno, Nevada Client: Reno - Sparks Convention & Visitors Authority Convention Corridor Market Analysis New York, New York Client: NYC & Company Convention Center Expansion Hershey, Pennsylvania Client: HERCO A=COM El Paso Convention Center Expansion El Paso, Texas Client: City of El Paso Palm Springs Convention Center Expansion Palm Springs, California Client: City of Palm Springs Economic Impact Analysis of the Miami Beach Convention Center Miami Beach, Florida Client: Miami Beach Convention Center Management Study for Jacob i Javits Convention Center New York City, New York Client: Jacob K. Javits Convention Center San Jose Convention Center Expansion San Jose, Califomia Client: City of San Jose Anaheim Convention Center Expansion Anaheim, California Client: City of Anaheim /Anaheim Convention Center Authority Mobile Convention Center Mobile, Alabama Client: City of Mobile New Convention Center Providence, Rhode Island Client: City of Providence, Rhode Istand /Greater Providence Convention & Visitor Bureau Baltimore Convention Center Expansion Baltimore, Maryland Client: Charles Center -Inner Harbor Management Lewiston ConventionlConference Center Lewiston, Maine Ctient: City of Lewiston New Convention Centre Halifax, Nova Scotia Client: Trade Centre Limited Knoxville Convention and Other Facilities Knoxville, Tennessee Client: Public Building Authority of Knoxville & Knox County Sioux Falls Coliseum and Convention Hall Sioux Falls, South Dakota Client: City of Sioux Fails New Conference Center Jackson Hole, Wyoming Client: Town of Jacksonrreton County, Wyoming Vail Congress Hall Vail, Colorado Client: City of Vail, Colorado Santa Fe Conference Center Expansion Santa Fe, New Mexico Client: City of Santa Fe A;COM New Convention Center Atlantic City, New Jersey Client: Resorts International Hotels, Inc. Rochester Convention Center Complex Rochester, New York Client: City of Rochester Hartford Convention Center Hartford, Connecticut Client: Hartford Development Commission/ City of Hartford Lake George Convention Center Lake George, New York Client: HNTB South Salt Lake County Exhibition Hall Salt Lake City, Utah Client: County of Salt Lake Oshkosh Convention Center Oshkosh, Wisconsin Client: Oshkosh Chamber of Commercel City of Oshkosh/ Oshkosh Area Community Foundation Wisconsin State Fair Park Exposition Facility West Allis, Wisconsin Client: Wisconsin State Fair Park Project Team Detroit Lakes Events Center Detroit Lakes, Minnesota Client: ROG Amphitheaters, Performing Arts. and Cultural Facilities Dillon Amphitheater Dillon, Colorado Client: Sink Combs Dethlefslfown of Dillon Lone Tree Performing Arts Center Lone Tree, Colorado Client: City of Lone Tree Greek Theater Los Angeles, California Client: City of Los Angeles Louisiana Music Experience New Orleans. Louisiana Client: State Of Louisiana Bill Graham Civic Auditorium Repositioning San Francisco, California Client: SMG, Inc. House of Blues Concert Hall Santa Clara, California Client: County of Santa Clara Theater Row Development New York, New York Client: 42nd Street Development Corporation Performing Arts Center Vancouver, British Columbia Client: City of Vancouver Scottsdale Performing Arts Center Scottsdale, Arizona Client: City of Scottsdale Performing Arts Complex Las Vegas. Nevada Client: Las Vegas Performing Arts Center, Inc Orpheum Theater Memphis, Tennessee Client: Memphis Development Foundation Pacific Amphitheater Costa Mesa, California Client: Orange County Fairgrounds Performing Arts Center Sacramento, California Client: City of Sacramento Performing Arts Center Elgin, Illinois Client: City of Elgin Performing Arts Center Expansion Elgin, Illinois Client: City of Elgin Performing Arts Center Texarkana, Arkansas Client: City Of Texarkana Performing Arts and Events Center Muskego, Wisconsin Client: City of Muskego kfj l I Performing Arts Center Vail, Colorado Client: Town of Vail, Colorado Arts Center Fremont, Michigan Client: Arts Center for Newaygo County Performing Arts Assessment Ottumwa, Iowa Client: Bridgeview Center, Inc. Alternative Uses for Ford Auditorium Detroit, Michigan Client: Friends of the Ford Auditorium Renovation of City Opera House Traverse City, Michigan Client: Arts Council of Traverse City Performing Arts District Analysis Pittsburgh, Pennsylvania Client: Pittsburgh Trust for Cultural Resources North Park Theater San Diego, California Client: City of San Diego Facilities Planning Study Staten Island, New York Client: Staten Island Council of the Arts Cultural Arts Center Columbia, Maryland Client: Columbia Association Cultural Arts Facility White Plains, New York Client: Westchester County Cultural Affairs Downtown Arts/Cultural Venue Study Tucson, Anzona Client: Tucson Arts Council Capitol Theater New London, Connecticut Client: Center for the Performing Arts Pacific Northwest Performing Arts Festival Washington State Client: Seattle Opera Association Elmira Theater Reuse Elmira, New York Client: New York State Council on the Arts Pan Pacific Park Los Angeles, California Client: County of Los Angeles Performing Arts Center Queens, New York Client: Borough of Queens, New York Downtown and Urban Revitalization Studies Marketability Study for Downtown Harrison Harrison, New York Client: Town of Harrison, New York Downtown Stamford Retail Revitalization Program City of Stamford, Connecticut Downtown Retail Strategy Burlington, Vermont Client: City of Burlington, Vermont South Silver Spring Revitalization Strategies Silver Spring, Maryland Client: Montgomery County. Maryland �U� Performing Arts Complex Prince George's County, Maryland Client: Prince George's County Proctor's Theater Reuse Schenectady, New York Client: Arts Center and Theater. Inc. Proposed Arts Center Fayetteville, North Carolina Client: Arts Council of Fayetteville Anchorage Performing Arts Center Anchorage, Alaska Client: Municipality of Anchorage, Alaska Asheville Performing Arts Center Asheville, North Carolina Client: Susan Marcus Collins Foundation Lynn Blue Line Economic Development Study Lynn, Massachusetts Client: City of Lynn, MassachusetlWMBTA Hiram Street Revitalization New Brunswick, New Jersey Client: City of New Brunswick, New Jersey Downtown Economic Development Study Gloucester, Massachusetts Client: City of Gloucester, Massachusetts Market Analysis for Neighborhood Business District Montgomery County, Maryland Client: Montgomery County, Maryland Department of Community and Economic Development Oceanside Downtown Redevelopment Oceanside, California Client: City of Oceanside, California Redevelopment Agency Bowie New Town Center Bowie, Maryland Client: Levitt Corporation Monroe Center Feasibility Study Grand Rapids, Michigan Client: City of Grand Rapids, Michigan Corvallis Downtown Revitalization Corvallis, Oregon Client: City of Corvallis, Oregon Economic Analysis of Comprehensive Plan of Development: Overall Central City Area San Bernardino, California Client: San Bernardino, California Redevelopment Agency A=COM Downtown Waterfront Development Potential Portsmouth, Virginia Client: City of Portsmouth, Virginia Development of Northwest Industrial Triangle Feasibility Study Lancaster, Pennsylvania Client: City of Lancaster, Pennsylvania Retail Tenant Plan Lincoln, Nebraska Client: City of Lincoln, Nebraska Revitalization of Central Business District Roanoke, Virginia Client" Downtown Roanoke, Inc. Battle Creek Downtown Plan Battle Creek, Michigan Client: City of Battle Creek, Michigan North Avenue Business District Revitalization Wauwatosa, Wisconsin Client: City of Wauwatosa AECOM Page 20 MCOMEconomics Chris Brewer Principal Education MS. Resource Economics. University of New Hampshire, 1993 BS Intemational Relations and EcorcmiC peveblxnant. Orake University. 2001 Pmfessional History 1994 - 1995 -Thome Conauhante. Washington DC 1995 -1999 - Associate, Economics Research Associates 1999 -2007 - Senior Associate - Economics Research Associates 2008 - Promoted to Principal 2008 - ERA acquired by AECOM I ERA Becomes AECOM Economics 2009 - Promoted to Managing Principal of the Chicago office Mr. Brewer has 15 years of experience in the economic analysis of real estate and land use issues, with specific experience in downtown markets, ranging from smaller communities to larger Midwestern cities. Projects include: Downtown - Transit - Oriented Devglooment Lowertown Master Plan Market Analysis, St. Paul, MN Mr. Brewer took part in a masterplanning effort for the Lowertown area in downtown St. Paul, Minnesota, working with the City of St. Paul. Need for the study was driven by significant public investment in a light rail system, which would terminate at the Union Depot in Lowertown. The market analysis component started with a full inventory of retail, residential, and office space in the study area, as well as an analysis of key demand drivers, which included an extensive arts community and a large farmers market. The assessment considered availability of on- and off - street parking in the study area, as well as the availability of infill sites for redevelopment. These analyses were used to shape recommendations for how the Lowertown area should react to key investments schedulediproposed for the near future, including light rail, commuter rail, regional high -speed rail, and minor - league baseball_ Downtown Tinley Park Market Analysis, Tinley Park, IL For the Village of Tinley Park, Mr. Brewer completed an evaluation of transit oriented development, focused on retail, and residential real estate market conditions in the downtown area. The approach summarized key findings with regard to demographic and economic trends for the community, as well as demand for retail, office, and residential uses in the downtown core. The residential analysis reinforced opportunities for walkable/transit-oriented residential development, highlighting relevant market segments that are looking for a suburban housing option with greater walkability. The analysis evaluated current economic conditions, and the extent to which downtown merchants were weathering the challenging economic climate. Downtown - Retail & Residential Market Analysis Downtown Retail Market Analysis, Traverse City, MI For the City of Traverse City, Michigan, Mr. Brewer completed an assessment of downtown and regional retail and office inventories, growth in demand for retail spending, and implications for the competitive position of downtown. The approach evaluated the distinct summer, fall, and Winter tourist markets that Traverse City serves, as well as the larger regional population base who views Traverse City as their urban center. An extensive inventory of downtown commercial and residential space was completed, factoring in street level inventory, as well as upper -story space. Chns Brewer Downtown Corridor Master Plan Market Analysis, Kansas City, MO For the Civic Council of Kansas City, Mr. Brower completed a real estate market assessment in support of the downtown corridor master plan. The effort focused on opportunities for redevelopment along Grand Boulevard and Main Street, which link together several distinct downtown neighborhoods. Downtown Market Analysis and Master Plan, Clayton, MO For the City of Clayton, an affluent suburblbusiness center in Metropolitan St. Louis, Mr. Brewer completed an analysis of market opportunities for the downtown area, focused on retail, residential, and office market development. The analysis looked at opportunities for development associated with proximity to the new MetroLink light rail station that opened in downtown Clayton. Downtown Market Analysis, Concord, NC For the City of Concord, NC, a suburb of Charlotte, Mr. Brewer completed an analysis of Downtown market opportunities, building from a detailed inventory of downtown commercial space. The assessment highlighted modest vacancy levels for street level space, offset by increased vacancies for upper floors. The analysis also identified a surprising concentration of office space in the downtown area, anchored by county administrative and legal functions, which was driving relevant lunch and dinner business. Recommendations focused on the need to further develop store clusters in restaurants, apparel, and home furnishings, and expand on entertainment options. Discussion also focused on the future role of the downtown business improvement district. Downtown — College Towns Downtown /Urban Village Market Analysis, State College, PA For the Borough of State Collage, Mr. Brewer completed a market study and redevelopment plan for the Urban Village neighborhood, which is directly adjacent to both downtown State College and Penn State University campus. The effort built from a full inventory of downtown retail and residential Space, as well as assessment of retail spending potentials for the historic neighbourhood, along with linkage to downtown, and the impact of its significant student population on retail spending. Downtown Durham Adaptive Reuse Analysis, Durham, NC Working with the City of Durham, Mr Brewer completed a financial review of the adaptive reuse of several historic R6sum® tobacco warehouses in downtown Durham called West Village Phase II. The financial analysis incorporated a review of developer financial assumptions, interviews with downtown development officials, and analysis of competing adaptive reuse projects, including American Tobacco as well as the Phase I component of West Village. Secondary data regarding market real estate performance, including vacancy, demand drivers, operating expenses, lease rates, and market segments, was collected. The approach also reviewed the use of historic tax credits and assessed benchmark developer returns on investment, assuming both 100% equity investment (unieveraged) and a combination of debt and equity investment (leveraged). The above steps were used to help develop a preliminary financial analysis of the Phase II project. Based on this analysis, the City moved to approve an agreement with the developer to move the project forward, with completion and occupancy by 2008. Maguire Street Corridor Analysis, Warrensburg, MO As part of a larger team, Mr. Brewer was engaged by the City of Warrensburg to evaluate the demographic, real estate market, and financial implications for Maguire Street, otherwise known as Business Route 13. The corridor, a long- standing connection between Kansas City and resort destinations such as Truman Reservoir and Lake of the Ozarks, has for many years carried considerable local and regional traffic. For this reason, MoDOT is in the process of building an eastern by- pass route for Highway 13. When the bypass is completed in 2 -3 years, ownership and maintenance costs for the existing business Route 13 will be conveyed from MoDOT to the City of Warrensburg. The City is motivated to plan the future of the corridor, to understand how changing traffic levels will impact land use, adjacent neighborhoods, and the Central Missouri State campus. Downtown Master Plan Market Analysis, De Pere, WI For the City of De Pere, a suburb of Green Bay, Mr. Brewer completed an evaluation of the downtown area on both sides of the Fox River, covering retail, office, and residential markets. The approach included a detailed inventory of commercial space in the downtown area, as well as identification of demand drivers that would influence market opportunities. Demand drivers associated with tourism were evaluated, covering broader visitation to the Upper Peninsula and Door County, as well as demand linked to the Fox River. The impact of St. Norbert College was specifically evaluated, covering the seasonality of students, and the overall direction of university policy as it related to downtown revitalization. Chris Brewer Downtown — Attractions & Venues Downtown Dallas Farmers Market Master Plan, Dallas, TX For the City of Dallas, Mr. Brewer completed a market and financial assessment for the Dallas Farmers Market. The effort included evaluation of recent downtown housing trends in downtown Dallas, as weB as a review of recent retail, office, transportation, and tourism development trends in the city. The approach led to identification of repositioning strategies for the market. Iowa Events Center, Des Moines, IA Between 1997 and 2009, Mr. Brewer worked with Polk County, and the Greater Des Moines Convention and Visitors Bureau. to evaluate Veterans Auditorium, the Polk County Convention Center (the Plex), and the Des Moines Civic Center theater, to determine if these venues were adequate to serve existing and future markets. Our 1997 master plan identified a $250 - million convention and arena development program, along with event, attendance, business plan, and economic impact forecasts for the proposed complex. In 2000, we were engaged to review three revised convention and arena development options. Based in part on our work, local officials began construction of the Wells Fargo Arena and the HyVee Exhibit Hall; the two venues opened by 2006. In 2008, we were engaged by the Polk County Board of Supervisors to evaluate further expansion of the IEC, with about 60,000 sq. fl, of new meeting and ballroom space. Subsequent to this study, the county approved plans to expand the IEC again. Convention Center Assessment, Kalamazoo, MI An evaluation of the market for a new convention center in the downtown area, built in proximity to a renovated Radisson Hotel. The assessment considered existing meeting space in the market, competition from other destinations in Michigan, and a full survey of meeting planners active in the state, to Confirm the current destinations of groups, their sizes, room demands, and space requirements. Convention Center Assessment, Dayton, OH The Dayton Convention Center's strategic market position was assessed. This venue had already been expanded once since its opening in the 1SN's. The assessment considered the available number of downtown hotel rooms, proximate parking availability, costs of air travel, and proximity to Columbus, the State's primary destination for state level conventions. Case studies of competing Midwestern cities were also completed. The neighborhood around the convention center was also R9surne studied, evaluating it as a potential area for broader development of urban entertainment functions. The assessment focused on recent operating revenue and expense trends at the facility, as well as implications for capital improvement needs. The assessment considered how changes in event activity may impact the convention centers mandate to cover its operating costs in the future. Downtown f Arena District Master Plan Wichita, KS For the City of Wichita, Mr. Brewer evaluated downtown real estate market and demographic conditions, as pan of a broader downtown master planning effort, centered on plans to build a new mufti- purpose arena in the downtown area. The approach included evaluation of real estate market conditions for downtown housing and retail, factoring in the evolution of projects such as Waterwalk and the proximate historic district. dr COM Economics David Stone Associate Principal Education BS. Accounting, Indiana University, 1994 MBA. Finance. Economics, and Strategic Decision Making. Loyola University Chicago, 2000 Publications+ Technical Papers 'Urban Thnlls,' Author, Stadia, May 2001 'Keep the Cash Flowing,' Author. Stadia, November 2001 'And the Gold Winner is.. Sell Lake City," Stadia, Febmarp 2002 'Riders and Running Backs,' Stadia, July 2002 'Charging Ahead: Hosting the 2003 Super Bost: Stedia. January 2DO3 'Profit or Kudos? Generating Revenues from Bowl Games,' Stadia, January 2004 'Best Seats in the House: Adding Value to Boost Premium Seat Sales in the USA; Stadia, July 2004 'Election Day Brings Construction Decisions,- Venues Today, December 2004 Worm's Eye View,' Venues Today, January 2005 'Bawls Over,' Venues Today, February 2005 Multiple articles. Football Digest, Soccer Digest, Basketball Digest, Hockey Digest, Auto Racing Digest Presentations Facility Financing and Contractually Obligated Income, Association of Luxury Suite Directors. 2001 Public vs. Private FaGllly Management, International Economic Development Council, 2002 Golf Courses. More than Just a Tee Time, Imematp al Economic Development Council, 2003 Enecutive Speaker series, Indiana University Kelley MEA Sports and Entertainment Academy, 2004 Economic and Fiscal Impede of Sports and MubirUse Events Facihdes. Central Hockey League Annual Meetings, 2005 Guest Speaker, Northwestern University Sports Administration Program, 2005- 2007 Guest Speaker. Loyola University MBA Sport Management Club, 2007 PrOfO45ional Sports Teams Make it Feasible. Inlematlonal Economic Devalopmenl Council, 2007 Minor League Sports Facilities: The Critical Factors for Success, International Association of Assembly Managers, 2006 LOCtures + Instruction Adjunct Professor. Loyola University Chicago, Sport Finance, 2007 -2009 Resin 6 Professional History 2007 - Current Economics at AECOM Senior Associate, Associate Principal 2004 —2D07 The Leib Group Senior Consultant 1999 —2004 C.H. Johnson Consulting ASS00010. Senior Associate. Project Director. Director of Spore Consulting 1996-1999 The Sports Business Daily, Muth pia Other Pu Gications Staff Writer and Freelance Writer 1994-1996 C hockOrs. Simon & ROSner CPAs (currently RSM Ml my) Staff Accountant. Semi- Senior Accountant David Stone joined AECOM Economics (formerly Economics Research Associates) in 2007 and has more than 12 years of experience in the analysis of real estate projects. His Consulting practice focuses primarily on market and financial feasibility and economic and fiscal impact analyses of sports, entertainment, and convention projects for public agencies. private developers, financial institutions, and colleges and universities. He also has experience with a variety of other project types, including hotels, amphitheaters, and others, He is also a commissioner of Chicago's Old Town Special Service Area and the author of "Chicago's Classical Architecture: The Legacy of the White City" and "Chicago's 1893 World's Fair." David Stone Project Experience Sioux Falls Events Center, Sioux Falls, SD David completed an economic, fiscal, and development impact analysis for the planned 12,000 -seat Events Center, The study estimated the annual operational impacts of the facility and the construction impacts at two different sites in Sioux Falls. One site is adjacent to the city's convention center, and therefore incorporated its operations into our analysis. In addition, the study also quantified the anticipated value of spinoff development and its impact on property tax revenues, as well as other, qualitative impacts that the City could capture. The facility was approved by local voters in November 2011, Rushmore Plaza Civic Center, Rapid City, SD David recently completed an economic and fiscal impact analysis of the Rushmore Plaza Civic Center complex, which inciudes two arenas, a convention center, and a theatre. The analysis estimated impacts under two scenanos; one that assumes that a new arena replaces the larger of the existing arenas, and another that assumes no changes at the complex. Valparaiso Arena and Meeting Space Study, Valparaiso, IN Feasibility study for a potential multipurpose arena in Valparaiso. The facility would replace the current Athletics- Recreation Center and host a wide range of sports, entertainment, and meeting events. The study also addressed a potential new hotel, the need for additional meeting space, and Valparaiso University's recreational sports needs. Tacoma Dome Renovation Feasibility and Economic Impact Analysis, Tacoma, WA David is currently working on a feasibility and economic impacts study of a renovation of the Tacoma Dome (arena and exhibit hall). The analysis includes a comprehensive market analysis (including analyses of existing and planned competitive venues in the region), the market for professional sports at the Dome, development opportunities in the surrounding district, renovation recommendations, and forecasts of future operations and economic impacts. New Attractions/Events Facilities, Green Bay, WI David completed comprehensive feasibility and economic impact analyses for a number of new ptiblic-assembly facilities in Green Bay, including a convention center, youth sports complex, ballpark, hotel, retail, a health and wellness facility, and renovations to Lambeau Field. These analyses studied the market for new facilities, recommended a building program, R €sumF and forecasted future facility use, operations, and economic and fiscal impacts. Bangor Auditorium and Civic Center, Bangor, ME Feasibility study for a new Auditorium and Civic Center. Based on comprehensive market and financial analyses and available funding, a feasible construction schedule was recommended. The $65- million, 5,800 -seat arena was approved by local voters as a first phase of development and is now under construction. Detroit Lakes Event Center, Detroit Lakes, MN David completed a feasibility and economic impact study for a Potential multipurpose meetings and events center in Detroit Lakes. The study included comprehensive surveys of potential facility users, facility recommendations, and estimates of future operations and impacts. Phoenix Convention Center, Phoenix, AZ Economic and fiscal impact analysis of the facility's recent expansion. The analysis estimated new spending captured in Arizona by the construction project, and recommended future methods for capturing impact- related data from facility events. Ocean Center, Daytona Beach, FL Market and financial feasibility, and economic impact analysis, for a facility expansion. The project was part of a $250 - million redevelopment initiative and was completed in 2009. Washington State Convention & Trade Center, Seattle, WA Feasibility and economic impact study of a facility expansion. Working with project architects, we refined the expansion plan and forecasted the expanded facility's use, operations, and economic and fiscal impacts. Sears Centre, Hoffman Estates, IL On behalf of the Village of Hoffman Estates, David completed a comprehensive operational and financial analysis of the multipurpose Sears Centre. The facility had significantly underperformed since its opening and the Village was seeking to maximize its potential and hire new management. Our assessment included review of the facility's contractual agreements, demand. and revenues and expenses, and comparisons to the operations of a large set of comparable facilities across the country. David stone Dillon Amphitheater, Dillon, CO David performed a feasibility study for the renovation of Dillon's amphitheater, which is located on Lake Dillon. The current facility is extremely basic and is not equipped to host ticketed events. The study analyzed the feasibility of improving the facility for touring acts, based on the dynamics of the regional amphitheater market, the performance of comparable facilities, and other analyses. Event Center Feasibility Study, Pocatello, ID Feasibility study for new multipurpose event space in Pocatello. The study included analysis of existing local and regional facilities, surveys of regional businesses and associations, and facility recommendations. Based on a recommended 30,000 - SF multipurpose facility, we forecasted future usage and operations, and developed a timeline for facility construction based on available funding sources and amounts. KFC Yumf Center and Freedom Hall, Louisville, KY David completed multiple studies for the new 22,000 -seat KFC Yum! Center and the existing Freedom Hall. First, an analysis of the viability of the new arena's finance plan was completed. Also, an economic and fiscal impact study estimated the incremental impacts of the new arena beyond the impacts currently being generated by Freedom Hall. Lastly, David prepared a comprehensive financial feasibility study that appeared in bond documents that financed the $2%million arena. R6..w AECOM Acceptance Acceptance of this proposal may be indicated by signing below and returning this document to AECOM. We greatly appreciate the opportunity to be of service and assistance to you. If modifications to this proposal would better suit your needs, we would be happy to discuss them with you. ACCEPTED BY: DATE: City of South Bend, Indiana ACCEPTED BY DATE: AECOM Technical Services, Inc. MCI.VIYI Page 27 AECOM STANDARD PROPOSAL ADDENDUM It is understood by the client that AECOM Technical Services, Inc., ( AECOM) can make no guarantees concerning the recommendations which will result from the proposed assignment, since these recommendations must be based upon facts discovered by AECOM during the course of the study and those conditions existing as of the date of the report. To protect you and other clients, and to ensure that the research results of AECOM's work will continue to be accepted as objective and impartial by the business community, it is understood that our fee for the undertaking of this project is in no way dependent upon the specific conclusions reached or the nature of the advice given by us in our report to you. it is agreed by the client that the report is not to be used in conjunction with any public or private offering of debt or equity securities without prior written consent. 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