CITY OF COLUMBIA, SC NEW BALLPARK PLANNING STUDY CITY COUNCIL PRESENTATION JANUARY 7, 2014
BRAILSFORD & DUNLAVEY Rich Neumann, Vice President Major Accounts 26 Years of Experience in Professional Sports and Facility Management 12 Years with Mandalay Baseball Properties Jason Thompson, Regional Vice President 13 Years of Experience in Sports Planning and Implementation Opened Detroit-based B&D Venues Office Managed 80% of B&D s Baseball Planning and Management Contracts
BRAILSFORD & DUNLAVEY Paul Brailsford Chris Dunlavey Relevant Experience: 20 Years Serving the Sports Venue Industry Worked for over 125 Governmental Entities Consulted or Managed on Sports Venues Worth over $3 Billion in Completed Construction Value Provided Services for Over 60 Ballpark Projects at Every Level of Baseball Services: Planning Through Implementation
EXPERIENCE Work at Every Level of Baseball MLB AAA AA A Amateur University Unique Client Perspectives Cities Counties Authorities Team Owners Leagues
THE BUSINESS OF MiLB How Does MiLB Operate? Affiliation System Each MLB Franchise has One AAA, One AA, and Two A and One Rookie Level Affiliates Number of MiLB teams is Fixed Level of Play not an Indicator of Success Class A Dayton Outdrew 100% of all AA Teams and 80% of all AAA Teams Class A Greensboro Outdrew 80% of all AA Teams and 33% of all AAA Teams Appropriate Regional Leagues South Atlantic League (A) Includes Existing Teams in Greenville, Charleston, Greensboro, and Asheville Carolina League (A) Includes Existing Teams in Myrtle Beach and Winston - Salem
MiLB MARKET Affordable Family Entertainment Targeting: Families Community Groups Neighborhood Associations Company Outings Retirees Baseball Fans Game Presentation with: Pre- and Post- Game Activities Promotions In-Game Contests & Exhibitions Full Complement of Food and Beverage Options MLB Teams have Implemented Many of the Concepts Pioneered in MiLB
MiLB BALLPARK TRENDS No Longer Selling a Ticket for a Seat Development and Refinement of Ballpark Neighborhoods Offering Various Seating Configurations at Different Price Points Traditional Fixed Seats Premium Seating (Club Seats / Loge Seats) Luxury Suites Picnic Tables Group Areas / Party Decks Grass Berm Seating 360 Degree Open Concourses Other Entertainment Options, i.e. Kids Zones
MiLB BALLPARK TRENDS Old Outfield Seats New Outfield Seats Old Seating Bowl New Seating Bowl
MiLB BALLPARK TRENDS Enclosed Concourse Open Concourse
MiLB BALLPARK TRENDS Old Concourse New Concourse
Modern Ballpark Seating Options and Features BALLPARK TRENDS
MARKET ANALYSIS Can Columbia Support a MiLB Team? Size: Among the Largest of the Existing Carolina and South Atlantic League Markets; Population of 713,702 within 30-Minute Drive Time Projected to Grow 4.3% to 745,00 by 2018 Second Largest Market in Continental U.S. Without Professional Sports Target Market: Large Household Size Fits Family Target Market Wealth: Percentage of Households with Income Over $50,000 Higher than all but Two of the Comparable Markets Business Market: Significant Corporate Presence with 376 Companies Employing Over 100 People, Indicating Capacity for up to 3,900 Additional Premium Seats Presence: State Capital, Four Television Stations, and Daily Newspaper
MARKET POSITION MiLB in Columbia can Complement USC Baseball Limited Regular Season Schedule Overlap USC Baseball: February through May MiLB: April through September Distinct Target Markets USC Targeting Baseball Supporters, Season Ticket Holders, and Marketing the Players and the Success of the Team MiLB Targeting Families, Large Groups, and Marketing the Entertainment Value Opportunity to Promote and Follow Former USC Baseball Players Professional Baseball Presence Created by the MiLB Team 19 Former USC Players are Currently in MiLB and Another 5 are on MLB rosters
MARKET DRIVEN CONCEPT Ballpark Concept 8,000 Capacity 16 Suites 200 Club Seats 360 Concourse Integral Catalyst to the Bull Street Property Master Plan
BALLPARK CONCEPT - FEATURES
CONSTRUCTION COST TRENDS What do MiLB Ballparks Cost to Develop and Build? Nine Class A Ballparks Built in the Past Ten Years Average Cost of $38M in 2014 Dollars High of $63M and Low of $27M Most Recent MiLB Construction Bid: December 2013, $43M for a 10,000 Capacity Ballpark in Nashville Includes Hard Construction Only Projected New Columbia Ballpark Comprehensive Budget: $41.8M Includes All Hard Costs and Fees Includes All Soft Costs Includes 10% Contingency Includes Financing and Legal Costs
FUNDING TRENDS How are MiLB Ballparks Typically Funded? Among the 19 Comparable Class A Ballparks Built Since 1996, the Average Split of Funding is 17% Private and 83% Public* Typical Private Sources: Lease Payment Revenue Sharing Equity Surcharges Typical Public Sources G.O. Debt Visitor Taxes Sales Taxes Grants Private, 17% Public, 83% * Does not include ballparks with non profit organizations as primary funding sources or team owners
PROJECT PROFILES Facility: State Mutual Stadium Location: Rome, GA Year Opened: 2003 Capacity: 6,000 Public %: 92% Private %: 8% Public Source: Sales Tax Increase Private Source: FF&E Purchase Lease Terms: 18 Years with Options $15K / Year with Revenue Splits $134K Average Annual Payment Team Pays Operating Expenses
PROJECT PROFILES Facility: Bowling Green Ballpark Location: Bowling Green, KY Year Opened: 2009 Capacity: 6,000 Public %: 100% Private %: 0% Public Source: Tax Increment Financing Private Source: NA Lease Terms: 20 Years $110K Annual Lease Payment Team Pays Operating Expenses
PROJECT PROFILES Facility: Fifth Third Field Location: Dayton, OH Year Opened: 2000 Capacity: 8,700 Public %: 77% Private %: 23% Public Source: Grant, Cash, Revenue Bonds, Transportation Funds Private Source: Equity, FF&E Lease Terms: 20 Years $25K Annual Lease Payment Team Pays Operating Expenses
BENEFITS ANALYSIS What are the Benefits of MiLB? Projected Ballpark Operations Projected Development Budget Construction Impacts Direct Indirect Operating Impacts Direct Indirect On-site and Off-site Qualitative Impacts Employment Wages Economic Activity Fiscal Benefits
BENEFITS One-Time Construction Impacts Supports 915 Jobs Supports $21M in Earnings $2.0M in Tax Revenues Recurring Annual Operating Impacts Supports 715 Jobs Supports $9.0M in Earnings $18.5M in Total Tax Revenues Other Benefits Generates 35,000 Annual Room Nights Supports $5.0M in Annual Hotel Spending Supports $5.2M in Annual Food and Beverage Spending
30-YEAR BENEFITS PRESENT VALUE $18.5M in Tax Revenue $192.0M in Personal Earnings $98.0M in Hotel Spending $103M in Food and Beverage Spending
BASEBALL CAMPS
SPECIAL EVENTS
WEDDINGS
CONCERTS
COMMUNITY EVENTS
BOY SCOUT CAMPOREE
BOXING
BINGO AT THE BALLPARK
NETWORKING GALA
NON-PROFIT FUNDRAISERS
MIRACLE LEAGUE GAMES
ALS WALK
FIREWORKS
QUESTIONS AND ANSWERS
CITY OF COLUMBIA, SC NEW BALLPARK PLANNING STUDY CITY COUNCIL PRESENTATION JANUARY 7, 2014