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Public Presentation of the Schmitt Island Development & Sports Complex Feasibility Study Copyrighted March 17, 2025 City of Dubuque WORK SESSION # City Council ITEM TITLE: 5:15 PM - Public Presentation of the Schmitt Island Development & Sports Complex Feasibility Study SUMMARY: RDG Planning & Design and Johnson Consulting will present on the Schmitt Island Development & Sports Complex Feasibility Study. SUGGUESTED DISPOSITION: ATTACHMENTS: 1. MVM Memo 2. DRA Donation of Study Letter 3. Dubuque Initiatives Letter 4. Sport Complex Feasibility Study Presentation 5. Schmitt Island Sport Complex Feasibility Study_Final Version_Uploaded 3.24.25 6. Schmitt Island Development & Sports Complex Feasibility Study_Previous Version_Updated 3.17.25 7. Schmitt Island Development & Sports Complex Feasibility Study_Previous Version Page 10 of 959 TO:The Honorable Mayor and City Council Members FROM:Michael C. Van Milligen, City Manager SUBJECT:Public Presentation of the Schmitt Island Development & Sports Complex Feasibility Study DATE:March 11, 2025 The Dubuque Racing Association (DRA) commissioned a sports complex facility feasibility study with funding support from Dubuque Initiatives. The DRA has donated the study results to the City of Dubuque so the information will be available to anyone in the community considering working on such a project. The public presentation of the Schmitt Island Development & Sports Complex Feasibility Study by RDG Planning & Design and Johnson Consulting will be held at the work session at 5:15 p.m. on March 17, 2025. _____________________________________ Michael C. Van Milligen MCVM:sv Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Brian Rakestraw, Interim President and CEO Dubuque Racing Association Page 11 of 959 Page 12 of 959 March 4, 2025 City Hall 50 W 13th Street Dubuque, Iowa 52001 City Manager Michael Van Milligen Honorable Members of the Dubuque City Council Dubuque Initiatives, Inc. is a sustainable, non-profit organization, working as a community partner and catalyst, to undertake challenging projects involving job creation and/or community revitalization that supports a viable, livable and equitable community. In that role our Board of Directors consider a wide range of community needs and opportunities. Recently we have come to believe that the development of enhanced sports facilities and sports tourism capacity is an important part of Dubuque being a “community of choice” for residents and newcomers. However, while we are open to being part of the solution to increasing that capacity, we do not believe that there is a comprehensive community strategy on the issue and such a vision needs to exist in order for Dubuque Initiatives to effectively engage. Given the level of complexity and cost, and sometimes conflicting visions, that come with major sports facilities we felt it appropriate to assist in helping inform such a comprehensive vision. Dubuque Initiatives provided funding assistance to the Dubuque Racing Association to undertake a Sports Facility Feasibility Study, the results of which were to be made available to the City. It is our hope that this study will help inform a comprehensive vision for sports facilities and sports tourism capacity in the community. Dubuque Initiatives will continue to be engaged in this important discussion. Sincerely, Kevin Lynch Dubuque Initiatives, President (563) 582-2655 klynch@net-smart.net Page 13 of 959 June 20, 2017 SPORTS COMPLEX FEASIBILITY STUDY MARCH 2025 Page 14 of 959 2Schmitt Island Agenda 1.Project Background & Overview 2.Stakeholder Engagement 3.Market Overview 4.National Trends 5.Public Input Survey 6.Analysis & Opportunities 7.Facility Design 8.Economic Impacts Page 15 of 959 3 Acknowledgements Participants City of Dubuque Court One Dream Center Dubuque Community Schools Dubuque County Basketball Academy Dubuque Fighting Saints Hockey Dubuque Figure Skating Dubuque Initiatives Dubuque Soccer Club Dubuque Volleyball Fossils Hockey Greater Dubuque Development Holy Family Catholics Schools ImOn Arena Loras College Miller Development Group Northeast Iowa Community College Q Casino + Resort Senior Saints Hockey Travel Dubuque University of Dubuque Project Partners Design Team 2,031 Survey Respondents Schmitt Island Page 16 of 959 4Schmitt Island Project Background & Overview Page 17 of 959 5Schmitt Island The Why Project Context Over the past several years, numerous Dubuque community leaders, parents and youth have expressed a desire to have a destination facility within the region that can help satisfy the demands for local sports organizations while also serving as a destination facility to host regional tournaments for club sports, university athletics and high school activities. While the growth of sports tourism related activities has been steadily increasing – with more than 200 million sports tourism travelers in 2023 – the benefits of a sports complex go beyond visitation and the associated spending, including: 1.Promote Fulfillment. Improving the quality of life for all Dubuque Citizens.2.Desirable Location. Creating a community of first choice, helping to attract and retain talent that use athletic facilities. Objectives RDG Planning & Design in partnership with Johnson Consulting, was retained to evaluate the feasibility of a sports complex within Dubuque, specifically on Schmitt Island. Key objectives of the feasibility study include the following: 1.Market Assessment. To determine if there is a market for sports tourism related athletics within Dubuque.2.Improvement Initiatives. To create a sports complex development program that addresses the gaps and opportunities within the marketplace, while also serving as a key asset for the community.3.Growth Strategy. To outline an actionable, implementable and financially feasible development plan.4.Profitability and Rewards. To identify the economic impacts and benefits of a sports complex.5.Financial Ability. To establish the costs and steps necessary to move the project forward. Page 18 of 959 6Schmitt Island The Why Page 19 of 959 7Schmitt Island Stakeholder Engagement Page 20 of 959 8Schmitt Island Stakeholder Engagement Key Themes Evident Gap in the Sports Market Participant & Economic Leakage Sports Tourism Potential Partnership Opportunity (P3) Employer/ Employee Recruitment/ Retention Paradigm Shift from Local Facilities Key Takeaway: Majority of stakeholders agreed that Dubuque would benefit from additional athletic offerings. Page 21 of 959 12Schmitt Island Market Overview Page 22 of 959 13Schmitt Island Market Overview Population 2024  59,635 2029  59,356 Median Income 2024  $66,647 2029  $75,612 Key Takeaway: As the drive-time radius is expanded, the average propensity to spend on sports increases. Dubuque Population, Income & Sports Spending Page 23 of 959 14Schmitt Island Market Overview Comparable Geographies- Population •The population of Dubuque is just under 60,000 residents. •There is a large population to pull from when expanding to the larger region. •Within 4 hours of Dubuque, there are nearly 20 million people. = 50,000 people Dubuque 30 minutes 90 minutes 2000 2010 2024 2029 CAGR* 2010-2024 CAGR* 2024-2029 USA 281,421,906 308,745,538 338,440,954 344,873,411 0.7%0.4% Iowa 2,926,324 3,046,355 3,236,114 3,275,570 0.4%0.2% Dubuque 57,816 57,617 59,635 59,356 0.2%-0.1% Schmitt Island (30 minutes)113,850 120,003 124,963 125,000 0.3%0.0% Schmitt Island (90 minutes)1,149,389 1,207,838 1,267,049 1,269,561 0.3%0.0% Schmitt Island (240 minutes)18,448,309 19,285,244 19,567,095 19,454,997 0.1%-0.1% *Compounded Annual Growth Rate Sources: Esri, Johnson Consulting Population Key Takeaway: a new sports and recreation complex in Dubuque should be regionally oriented to capture a larger pool of participants. Page 24 of 959 15Schmitt Island Market Overview Key Takeaway: As the drive-time radius is expanded, the average propensity to spend on sports increases Comparable Geographies-Population, Income & Sports Spending •Despite having a comparatively lower median household income, the percentage of disposable income on sports is only 4% under the national average, demonstrating a high propensity to spend extra household income on sports and recreation. Median Disposable Income Fees for Participant Sports Membership Fees for Social/Recreation/ Health Clubs Admission to Sports Events Total Sports Spending % of Disposable Income Spent on Sports Events % of Disposable Income Spent on Sports Events, Indexed to National Average* United States $63,562 $133 $302 $79 $515 0.810%100 Iowa $59,890 $116 $266 $79 $461 0.771%95 Dubuque $55,427 $107 $251 $73 $431 0.777%96 Schmitt Island (30 minutes)$60,617 $118 $273 $80 $472 0.778%96 Schmitt Island (90 minutes)$60,671 $121 $279 $82 $482 0.794%98 Schmitt Island (240 minutes)$63,297 $130 $300 $84 $514 0.812%100 *Where 100 is average, 110 is 10% above average, and 90 is 10% below average Sources: Esri, Johnson Consulting Disposable Income and Average Household Sports Spending 2024 2029 CAGR* United States $79,068 $91,442 3.0% Iowa $74,738 $83,750 2.3% Dubuque $66,647 $75,612 2.6% Schmitt Island (30 minutes)$75,102 $84,530 2.4% Schmitt Island (90 minutes)$76,143 $86,177 2.5% Schmitt Island (240 minutes)$79,873 $91,365 2.7% *Compound annual growth rate Sources: Esri, Johnson Consulting Median Household Income Page 25 of 959 16Schmitt Island Market Overview Hotel Inventory (100+ rooms or more) As reported by CoStar:•50 total hotel properties; 6 hotels with more than 100 rooms.•2,682 total hotel rooms in the market.•2 proposed hotels (160 rooms and 97 rooms) Key Takeaway: Hotel supply may be a limiting factor in attracting regional and national events and visitors. On the other hand, a regional sports complex would positively impact the local hotel market. Schmitt IslandSources: CoStar, Johnson Consulting Local Hotel Market Performance 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Oc c u p a n c y AD R & R e v P A R Average Daily Rate (ADR)Revenue per Available Room (RevPAR)Occupancy $120.51 $68.17 56.6% *Map includes hotels with 100 or more hotel rooms. Page 26 of 959 17Schmitt Island Market Overview Regional Sports & Recreation Market Baseball/Softball Diamonds:•Dubuque is missing a high-quality concentration of baseball/softball diamonds.•Largest facility in the region: Prairie Ridge Sports Complex with 17 diamonds. •Prospect Meadows is the closest tournament quality in Cedar Rapids with 8 fields. •Largest facilities in Dubuque is the Dubuque Sports Complex and McAleece Park - 4 diamonds each. Key Takeaway: Dubuque does not have a sufficient baseball/softball facility; existing facilities have limited availability due to demand and quality. Facility Fields 1 Prairie Ridge Youth Sports Complex 17 2 Grimes Sports Complex 13 3 TBK Bank Sports Complex 10 4 Janesville Youth Sports Complex 10 5 Haban Park 12 Source: Relevant Facilities, Johnson Consulting Notable Baseball Facilities Dubuque # of surfaces 1 2 3 4 5 Page 27 of 959 18Schmitt Island Market Overview Regional Sports & Recreation Market Indoor Facilities•Dubuque lacks a large indoor recreation facility with more than 4 courts within one facility.•The local school district offers the highest concentration of indoor courts but the level demand and availability at the schools result in limited utility across all user groups. Key Takeaway: Dubuque lacks sufficient baseball/softball facility; existing facilities have limited availability due to demand and quality. Dubuque # of surfaces Facility Courts 1 TBK Bank Sports Complex 8 2 Game on Sports/Sandlot Sports CR 5 3 Pleasant Prairie Rec Plex 12 4 Community First Champion Center 8 5 Romeoville Athletic & Events Center 8 Source: Relevant Facilities, Johnson Consulting Notable Indoor Facilities 1 2 3 4 5 Page 28 of 959 20Schmitt Island Market Overview Regional Sports & Recreation Market Multipurpose Outdoor Fields: •Dubuque does not offer a sufficient number of quality multipurpose outdoor fields. •The two largest soccer complexes within the region have over 30 fields, Fond Du Lac Soccer Complex and Stuart Sports Complex, but are both located approximately 160 miles away from Schmitt Island. •The largest concentration of outdoor fields are located on school grounds, presenting similar challenges as the indoor court space. Key Takeaway: Dubuque does not have sufficient outdoor, quality field supply for local or regional use. Dubuque # of surfaces Facility Fields 1 Tuma Sports Complex 22 2 Fond Du Lac Soccer Complex 32 3 Mercyhealth Sportscore One 18 4 Stuart Sports Complex 31 Source: Relevant Facilities, Johnson Consulting Notable Soccer Facilities 1 2 3 4 Page 29 of 959 21Schmitt Island Market Overview Regional Sports & Recreation Market Regional Ice:•The ImOn Arena is the only Ice sheet within 30-minutes of Dubuque and one of 4 facilities within a 90-minute drivetime of Dubuque. •The closest two rink facilities are in Madison and Cedar Rapids. •Largest facility in the region is Graham Arena Complex with 4 sheets. •A second sheet of ice would double the number of peak ice hours and make Schmitt Island’s ImOn Arena eligible to compete with those facilities in Madison and Cedar Rapids for tournaments. •The Chicagoland area has a large number of rinks, but the sport is so popular that ice time is still limited and costly. A second sheet of ice might be able to attract tournaments from the Chicagoland area. Key Takeaway: Dubuque could attract more events and tournaments with a higher concentration of ice sheets. Dubuque # of surfaces Facility Rinks 1 Graham Arena Complex 4 2 ImOn Ice Arena 2 3 Capitol Ice Arena 2 4 Canlan Ice Sports 3 5 Woodman's Sports & Convention Center 2 Source: Relevant Facilities, Johnson Consulting Notable Hockey Facilities 2 1 3 4 5 Page 30 of 959 22Schmitt Island Market Overview Regional Sports & Recreation Market Local Ice Facility Usage:•ImOn Arena on Schmitt Island is the only ice sheet in Dubuque.•The ImOn Arena is booked almost every weekday from 6am to 9pm, indicating there is enough participation in the Dubuque area to expand to two rinks. •An extra sheet of ice would allow more practice time for local organizations, allowing for the growth of ice sports and events.•ImOn would also be able to double their peak ice hours bringing in more revenue, which is 5pm-10pm daily. Key Takeaway: An additional ice sheet on Schmitt Island would enable expanded programming, increasing participation and opportunities for new events at ImOn Arena, transforming it from a local hub to a regional destination. Winter 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 6:00 AM 6:30 AM 7:00 AM 7:30 AM 8:00 AM 8:30 AM 9:00 AM 9:30 AM 10:00 AM 10:30 AM 11:00 AM 11:30 AM 12:00 PM 12:30 PM 1:00 PM 1:30 PM 2:00 PM 2:30 PM 3:00 PM 3:30 PM 4:00 PM 4:30 PM 5:00 PM 5:30 PM 6:00 PM 6:30 PM 7:00 PM 7:30 PM 8:00 PM 8:30 PM 9:00 PM 9:30 PM 10:00 PM 10:30 PM 11:00 PM 11:30 PM 12:00 AM DYHA - Dubuque Youth Hockey DBQ High School Northern Lights DBQ Figure Skating Dubuque Senior Saints Hockey Fossils UWP Loras PSE ( Chad Remakel) East Iowa Hockey (Chris Burch) University of Dubuque Fighting Saints Public Skate Stick and Puck Learn to Skate Figure Skating Lesson El Paso Rhinos Zamboni/Maintenance USHL Brett Boeing Private Lesson Senior Skate Fossils League Tournament Prime NonPrme Special 5pm-10pm 9am-5pm 6am-9am $289 $200 Varies Source: ImOn Arena, Johnson Consulting 2024 ImOn Arena Rentla Rates Page 31 of 959 23Schmitt Island National Trends Page 32 of 959 24Schmitt Island Participation Trends Sports Participation •Sports per participant has dropped from 2.14 to 1.73 from 2012 to 2023. •Total sports participation has increased by 10.4M since 2020 and has reached a new high since 2012. •With the trend of specialization in sports, participants are continuing to hone into one sport but in more year- round fashion as opposed to seasonally. Source: SFIA, Johnson Consulting Team Sport Participation & Sports Per Participant 131.6M 131.6M 129.7M 132.3M 133.5M 132.6M 131.7M 130.3M 126.0M 126.4M 128.9M 136.3M 2.14 2.06 2.02 1.99 1.94 1.97 1.92 1.84 1.88 1.85 1.82 1.73 0 0.5 1 1.5 2 2.5 3 0 40 80 120 160 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Total Sport Participants Sports Per Participant Page 33 of 959 25Schmitt Island Participation Trends Sports Trends •Nationally, baseball, softball, and football are seeing decreases in participation. It should be noted that the Dubuque participation rates may be higher or increasing, but nonetheless are limited due to availability facilities. •Ice hockey, figure skating, basketball, volleyball, cheerleading, and gymnastics are all seeing significant increases in participation levels. Baseball*Softball*Football Lacrosse Outdoor Soccer -4.9%-0.6%-5.1%6.5%4.5% Source: NSGA Sports Participation Survey, Johnson Consulting Percentage Change *These are national participation trends and not representative of Dubuque's local increased popularity in Baseball and Softball Change in Outdoor Sports Participation Trends (2020-2023) Sport Ice Hockey Figure Skating 8.7%8.4% Source: NSGA Sports Participation Survey, Johnson Consulting Percentage Change Sport Basketball Volleyball Cheerleading Gymnastics 1.1%8.5%8.5%22.8% Sources: NSGA Sports Participation Survey, Johnson Consulting Change in Indoor Sports Participation Trends (2020-2023) Sport Percentage Change Change in Ice Sports Participation Trends (2020-2023) Page 34 of 959 26Schmitt Island Participation Trends Sports Penetration Methodology •Total Population multiplied by individual sport participation rate to get each sport’s total potential market penetration. •Total potential market penetration was multiplied by each sports custom penetration rate. •Custom penetration rates were determined by •Sports surfaces deficiency rate, which measures how well Dubuque provides facilities to residents relative to other similarly sized communities. •Dubuque’s market share of sports tourism facilities in the area. Population National Participation Rates by Sport Total Estimated DemandXX=CHJC Estimated Market Penetration RatePopulationNational Participation Rates by Sport CHJC Estimated Market Penetration Rate Total Estimated Demand Page 35 of 959 28Schmitt Island Participation Trends Sports Penetration Methodology •The chart shows the increase in utilization to Dubuque sports facilities if additional surfaces were built. •A facility that competes for tournaments and events within a 90-Minute drivetime radius would have a minimum of •4 indoor basketball courts •8 baseball/softball diamonds •A facility that competes for tournaments and events within a 240-Minute drivetime radius would have a minimum of •8 indoor basketball courts •12 baseball/softball diamonds •Adding additional surfaces would greatly increase Dubuque facilities’ total sport participation number with the largest being in Indoor Sports and Baseball Diamonds. •2 sheets of ice •8 soccer fields •3 sheets of ice •12 soccer fields Key Takeaway: The potential market penetration significantly increases when considering a regional or national sports complex. Page 36 of 959 29Schmitt Island Public Input Survey Page 37 of 959 30Schmitt Island Public Input Survey 2,031 Survey Respondents Page 38 of 959 31Schmitt Island Public Input Survey Page 39 of 959 32Schmitt Island What Can the Dubuque Market Support? Indoor Multipurpose Courts Indoor Multipurpose (Turf) Ice Rinks Baseball/ Softball Diamonds Outdoor Multipurpose Rectangular Field Market Demand Opportunity in Dubuque  Sports Tourism Opportunity in Dubuque  Development Opportunity on Schmitt Island  Page 40 of 959 33Schmitt Island Comparative Analysis Page 41 of 959 34Schmitt Island Comparative Market Analysis Selected Facilities Community First Champions Center Appleton, WI TBK Bank Sports Complex Bettendorf, IA MidAmerican Energy Company RecPlex West Des Moines, IA FunCity Turf & FunCity Courts Burlington, IA 1 2 3 4 Page 42 of 959 39Schmitt Island Comparative Market Analysis Market Attributes (90- minute radius) •Within 30-minutes, Dubuque ranks at or below average for population, median age, household income, and sports spending. •Within 90-minutes, Dubuque is at or above average. Key Takeaway: The total population in the 90-minute market also exceeds 1.2 million residents, significantly expanding the pool of users a sports development on Schmitt Island may draw from. Source: ESRI, Johnson Consulting MidAmerican Energy Company RecPlex West Des Moines, IA FunCity Courts & FunCity Turf Burlington, IA 2024 Market Attributes (90-Minute Drive-Time Catchment) Schmitt Island Dubuque, IA Community First Champion Center Appleton, WI TBK Bank Sports Complex Bettendorf, IA 1,267,245 1,832,088 1,458,294 1,143,981 661,200 Total Population $76,160 $75,395 $70,027 $79,768 $65,521 Median Household Income 40 41 40 37 39 Median Age $616 $590 $554 $645 $503 Average Household Spend on Sports Page 43 of 959 40Schmitt Island Comparative Market Analysis Placer.Ai Benchmarking •Schmitt Island is already an established local destination. •Highest dwell time and highest visitor frequency •TBK Bank Sports Complex & MidAmerican Energy Company RecPlex attract the most visitors and most non-local visitors. •Sports tourism orientation Key Takeaway: Not only is Dubuque failing to attract more visitors than neighboring markets, Dubuque residents are leaving the community and visiting competing markets to access athletic facilities. ImOn Arena, McAleece Park, & Petrakis Park Community First Champion Center TBK Bank Sports Complex MidAmerican Energy Company RecPlex FunCity Courts & FunCity Turf 2023 Total Visitation 135,318 592,382 1,421,860 875,335 118,167 Avg. Dwell Time (minutes)213 151 134 129 157 Visitor Frequency*6.4 3.8 4.7 4.4 3.3 2023 % Non-local Visitors**6%14%20%22%24% *Visitor Frequency defined by average times a visitor attends a facility **Defined as visitors traveling from over 100 miles away Note: Data for Mercyhealth Sportscores only reflects visitation to Sportscore Two Source: Placer.ai, Johnson Consulting Placer.ai Data Comparison Page 44 of 959 41Schmitt Island Comparative Market Analysis Placer.Ai Benchmarking •TBK Bank Sports Complex received over 18,000 visits from Dubuque residents in the last 12 months. Key Takeaway: Competitive regional facilities are attracting Dubuque athletes and families, leaking sports tourism economic and fiscal impacts outside of Dubuque. *Visitors to Facility from Nov 1, 2023 - Nov 1, 2024 Source: Placer.AI, Johnson Consulting MidAmerican Energy Company RecPlex West Des Moines, IA FunCity Courts & FunCity Turf Burlington, IA TBK Bank Sports Complex Bettendorf, IA # of Visitors from the Dubuque Metro Area Community First Champion Center Appleton, WI 881 18,201 6,372 3,889 Page 45 of 959 42Schmitt Island Analysis & Opportunities Page 46 of 959 43Schmitt Island Analysis & Opportunities Page 47 of 959 44Schmitt Island Scenarios A B C D E F Page 48 of 959 45A Page 49 of 959 46B Page 50 of 959 47C Page 51 of 959 48D Page 52 of 959 49E Page 53 of 959 50F Page 54 of 959 Scenarios Grading Criteria •Project Goals / Vision •Market Projections – Usage, Revenue •Construction Cost •Operations Cost •Life Cycle Cost •Future Considerations •Site Considerations – Access, Views, Parking, Utilities, Floodway •Building Considerations – Construction Type, Soils, Connections •LWCF 51 Schmitt Island Diagram Legend •Blue Buildings: Entry, Offices, Lockers (Aggregate Area) •Orange: Court Sports Basketball, VB, Pckl , Wrstlg •Yellow Turf Sports – Softball, Soccer, LAX •Purple Ice Sheet •Green Fields – Baseball, Softball, Soccer, Lax, FB Page 55 of 959 52Schmitt Island Scenarios Initial Viability A B C D E F •Doesn’t capture the opportunity •Over-ambitious target goal •Cost doesn’t align with market targets •Indoor turf •Two Facilities •Doesn’t capture the opportunity potential • Field-only development Page 56 of 959 53Schmitt Island Scenarios Initial Target A B C D E F Scenario F •Creates the Wow factor •Aligns with Development Plan - Focuses on Schmitt Island •Captures the opportunity – Indoor Ice & Courts •Scale aligns with initial cost models – Site costs, LWCF •Funding Streams •Shared Operations with ImOn Arena •Leaves space for the Field •New Baseball / Softball •Potential Multipurpose Field •Potential Indoor Fieldhouse Page 57 of 959 54Schmitt Island Facility Design Page 58 of 959 55Schmitt Island Facility Design Page 59 of 959 56Schmitt Island Facility Design Page 60 of 959 57Schmitt Island Facility Design Page 61 of 959 58Schmitt Island Facility Design Page 62 of 959 59Schmitt Island Facility Design Page 63 of 959 61Schmitt Island Program Ice Facility Page 64 of 959 63Schmitt Island Program Multipurpose Court Facility Page 65 of 959 64Schmitt Island Economic Impacts Page 66 of 959 65Schmitt Island Economic Impacts Page 67 of 959 66Schmitt Island One Time Construction Impact Page 68 of 959 67Schmitt Island Summary Page 69 of 959 68Schmitt Island Summary, Next Steps •Clear Local and Regional Demand •Facility Must Have Regional Appeal, Scale •Economic Impacts Can Be Substantial •Adjacent Amenities •Equity •Will Need Public Private Partnership •Funding! Page 70 of 959 69Schmitt Island Thank You Page 71 of 959 70Schmitt Island Operating Model Public Private Public/Private Public/Nonprofit Public Amenity Revenue Generation Varies Community Interest & Social Responsibility 10 1 5 6 Deficit Profit Varies Breakeven Sports Complex Ownership/Operating Models Intended Purpose Level of Public Access (Scale of 1 to 10) Financial Outcomes Public Usage Revenue Generating Public Usage Revenue Generating Public Usage Revenue Generating Public Usage Revenue Generating Page 72 of 959 Schmitt Island Development & Sports Complex Feasibility Study February 2025 Page 73 of 959 TABLE OF CONTENTS 2 SE C T I O N 2 PAGE 17: Market Assessment & Regional Facility Audit SE C T I O N 1 PAGE 3: Introduction SE C T I O N 3 PAGE 47: Participation Trends & Comparative Market Analysis SE C T I O N 5 PAGE 90: Demand Projections , Economic & Fiscal Impacts, and Funding Strategies SE C T I O N 4 PAGE 80: Market Supportable Program Recommendations Page 74 of 959 1.1 Introduction Page 75 of 959 4 Introduction Transmittal Letter Re: Schmitt Island Development & Sports Complex Market Feasibility Study DRA: C.H. Johnson Consulting, Inc. (Johnson Consulting) is pleased to submit this report to you regarding the Market Feasibility Study for Schmitt Island Development & Sports Complex. Pursuant to our engagement, this report update fulfills the scope of work outlined in the statement of work submitted by Johnson Consulting to The Dubuque Racing Association on June 8th, 2024. Johnson Consulting has no responsibility to update this report for events, plan modifications, 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 projected results and actual results. Because events and circumstances frequently do not occur as expected, those differences may be material. This report is intended for the Client’s 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 Page 76 of 959 5 Introduction Study Introduction & Methodology Johnson Consulting was retained by the Dubuque Racing Association (DRA) to conduct a market feasibility study for a potential sports complex on Schmitt Island. The study aims to foster the ability of the DRA and the City, as well as any local partner organizations, to make informed decisions regarding the development and continuing operation of a complex. The proposal document submitted to the DRA by Johnson Consulting outlines detailed services for the study. Broadly, the objective of this study is to answer the following questions: What do the characteristics of the local market suggest about Schmitt Island/Dubuque’s ability to support this potential complex? What trends within the sports and entertainment industry could impact the project? What is the overall market opportunity for a new sports complex in Dubuque? What approach positions the DRA to advance the planning and development of the project? In order to answer the questions above, Johnson Consulting developed and executed a comprehensive methodology for the study, which is illustrated by the figure on the right. The observations, analysis, and conclusions of the study will be presented throughout the remaining sections of this report. Market Opportunity Assessment Market Analysis Real Estate Analysis Industry Trends Implementation Roadmap Page 77 of 959 6 Introduction Project Overview Schmitt Island is a part of Dubuque which is a mid-sized city in Iowa on the Mississippi river bordering Wisconsin and Illinois. Dubuque has recently focused on tourism as it is able to attract regional visitors partially due to its picturesque bluffs, proximity to the Field of Dreams Movie Site and other local attractions. Schmitt Island’s Q Casino and ImOn Ice Arena serve as entertainment destinations for the city. Schmitt Island also serves the community as a recreation hub as the Ice Arena and four baseball diamonds at McAleece Park provides practice times for local sports organizations. Longstanding plans to further development Schmitt Island have included expanding these two sports related assets to enhance the functionality of the island. Not only would extra or updated fields provide the community with an asset but could potentially serve to attract sports tourism to the island and city. Additionally, any new complex on the island’s south side would pair well with the Q Casino’s updated family entertainment center and amphitheater, further cementing Schmitt Island as a regional destination. Page 78 of 959 1.2 Executive Summary Page 79 of 959 8 Introduction Executive Summary - Market Assessment Johnson Consulting recognizes that sports complexes are crucial to community sports organizations and are highly beneficial to a community’s tourism industry. The Dubuque region lacks any large-scale sports complex and currently the community uses any available inventory of school and park facilities in Dubuque, but these facilities often face challenges with availability and quality. Through our market analysis, stakeholder engagement, industry trends research, and case study research, Johnson Consulting believes that there is an opportunity to introduce a new venue to the Dubuque market with a unique opportunity to serve the area’s residents and visitors. The Dubuque metro area has positive economic indicators such as above average median household income and low unemployment rates. While these factors would indicate future economic growth in Dubuque, the city is losing young families to larger markets. The exodus from Dubuque is partially due to manufacturing jobs leaving the market, but it is also due to the lack of family focused assets, like a sports complex. This is also evident in the region’s below average spending on sports participation fees, which can indicate either a lack of willingness to spend on fees or a lack of facilities on which to spend those dollars. Page 80 of 959 9 Introduction Executive Summary - Facility Audit As seen by the map on the right, the Dubuque region is deficient in all types of major sports facilities. Other metro areas such as Des Moines, Cedar Rapids, the Quad Cities, Chicago or Milwaukee have venues with large concentrations of surfaces which provides assets for the communities and are used to attract large youth sports tournaments. Dubuque’s local organizations rely on school and park courts for practices and games but the lack of surfaces at a single location and the lack of quality surfaces prevents the region from hosting youth sports tournaments. Local organizations indicated that the lack of available surface time prevents the growth of their organizations and inhibits them from hosting regional tournaments. Dubuque’s inability to host youth sports tournaments has led to participants and their families traveling to different markets for tourism, resulting in dollars leaking to other markets for local use and sports tourism. Legend Dubuque # of surfaces Baseball Hockey Basketball Soccer Page 81 of 959 10 Introduction Executive Summary - Stakeholder Engagement Johnson Consulting met with a wide variety of local organizations in order to gauge the level of interest for a new sports complex on Schmitt Island. It is crucial to engage with a wide variety of individuals and organizations throughout the area and industry to better inform the study’s observations and conclusions. The list to the right details to whom Johnson Consulting spoke through the course of the project. •Northern Iowa Community College •Mayor of Dubuque •Miller Development •Court One •City of Dubuque City Manager •City of Dubuque Leisure Services Director •City of Dubuque Director of Office of Shared Prosperity and Neighborhood Support •City of Dubuque Recreation Division Manager •Dubuque Youth Volleyball •Dubuque Senior Saints Hockey •Dubuque Fossils Hockey •Dubuque Fighting Saints Hockey •Loras College Athletic Director and VP Student Services •Holy Family Catholic Schools •ImOn Arena (Dubuque) •University of Dubuque Soccer •Dubuque Soccer Club •Greater Dubuque Development Corp •Dubuque Community Schools •Travel Dubuque •Q Casino •Dubuque Dream Center •Dubuque Figure Skating •Peosta Community Center •Dubuque County Basketball Academy Page 82 of 959 11 Introduction Executive Summary - Sports Participation Trends Specialization has led to a decrease in sports per participant. Athletes are dedicating themselves to one or two sports rather than playing multiple sports. This has led to the increased popularity of club teams that compete in weekend tournaments that often require traveling. Nationally, sports historically dominated by girls (like volleyball, gymnastics and cheerleading) are increasing in popularity in part due to the rise of female sports stars like Caitlin Clark and Simone Biles. Ice sports have also increased their national popularity as the high fixed costs associated with sports like hockey are easier to justify, if an athlete is playing year- round rather than seasonally. Locally, the popularity of sports is often capped by the number of facilities available. Indoor sports and ice sports in Dubuque are capped due to the lack of courts and ice rinks. Additional surfaces would likely grow the popularity of these sports in Dubuque. Source: SFIA, Johnson Consulting Team Sport Participation & Sports Per Participant 132M 132M 130M 132M 133M 133M 132M 130M 126M 126M 129M 136M 2.14 2.06 2.02 1.99 1.94 1.97 1.92 1.84 1.88 1.85 1.82 1.73 0 0.5 1 1.5 2 2.5 3 0 40 80 120 160 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Total Sport Participants Sports Per Participant Page 83 of 959 12 Introduction Executive Summary - Case Studies Johnson Consulting analyzed 4 case studies in order to inform recommendations for a sports and recreation complex in Dubuque relative to development, operations, financing, and best practices. When comparing Dubuque, and further, Schmitt Island to the case study set, Schmitt Island offers positive attributes such as proximity to existing entertainment options. However, limiting conditions were also identified, such as hotel supply and proximity to a major airport. The design of the case study facilities also offered examples of how a multipurpose sports complex can serve multiple sports and other uses, such as the seasonal ice rink in Appleton. Additionally, case study research provided examples on initial and ongoing development and financing structures that have been successful in other markets, including public-private-partnerships and municipal funding tools. Detailed profiles of each case study facility, as well as a benchmarking exercise, can be found in Section 3 of this report. Page 84 of 959 13 Introduction Executive Summary – Market Supportable Recommendations The Consulting team developed several different scenarios for potential developments on Schmitt Island. The optimal scenario involves 6 additional basketball courts and an additional ice rink to the existing ImOn Arena. This would provide local sports organizations that use either ice rinks or hardwood surfaces a place to practice and host tournaments. The price elasticity of rental rates in the market may prove to be a challenge for the indoor courts, but their ability to host tournaments for multiple sports like basketball, volleyball, wrestling and cheerleading should increase the demand for the facility. While outdoor sports like baseball and soccer are important to the city and locally popular, Schmitt Island’s size and development attributes restrict any sizeable development of outdoor fields. Page 85 of 959 14 Introduction Executive Summary – Development Impacts To properly estimate the demand and associated fiscal and economic impacts for a new development on Schmitt Island including a multipurpose indoor court facility and an addition to the ice arena complex, the historical operations at existing athletic facilities were extensively analyzed, paired with feedback from local user groups. This information was synthesized to develop recommendations relative to the facility program which informed the demand projections and the resulting impacts of the development. A detailed analysis of this work can be found in section 5 of this report. As shown in Year 5, often considered the year of stabilization for sports complex facilities, the ice arena complex is projected to generate $5.7 million in total spending and $600,000 in tax revenues, while the indoor sports complex is projected to generate $16.6 million in total spending and $1.1 million in total tax revenues. Ice Arena Complex - Dubuque, IA Economic and Fiscal Impacts - Local and Regional Tournaments / Special Events Year 5 Economic Impact ($M) Direct Spending $4.0 Indirect Spending 0.9 Induced Spending 0.8 Total Spending $5.7 Increased Earnings $1.1 Employment (FTE jobs)53 Fiscal Impact ($000) State Sales Tax $0.2 County Sales Tax 0.04 County TOT 0.3 Total $0.6 Source: Johnson Consulting Page 86 of 959 15 Introduction Executive Summary - Observations Johnson Consulting recognizes that sports complexes are crucial to community sports organizations and highly beneficial to a community’s tourism industry. The Dubuque region lacks any large-scale sports complex and currently the community uses any available inventory of school and park facilities in Dubuque. Through our market analysis, stakeholder engagement, industry trends research, and case studies Johnson Consulting believes that there is an opportunity for Schmitt Island to introduce a new venue to the Dubuque market with a unique opportunity to serve the area’s residents and visitors. The Dubuque metro area has positive economic indicators such as above average median household income and low unemployment rates. While these factors would indicate future economic growth in Dubuque, the city is losing young families to larger markets. The slight decline in the Dubuque population base can be attributed partially due to manufacturing jobs leaving the market, but it can also be due in part to the lack of family focused assets like a sports complex. This is also evident in the regions below average spending on sports participation fees which indicates either a lack of willingness to spend on fees or a lack of a facility on which to spend those fees. The Dubuque region is severely lacking in all kinds of sports surfaces. Other metro areas such as Des Moines, Cedar Rapids, the Quad Cities, Chicago or Madison have large concentrations of surfaces which provides assets for the communities and are used to attract large youth sports tournaments. Dubuque’s local organizations rely on school and park courts for practices and games and the lack of surfaces at a single location and the lack of quality surfaces prevents the region from hosting sports tournaments. Local organizations indicated to us that the lack of available surface time prevents the growth of their organizations and inhibits them from hosting regional tournaments. With Dubuque’s inability to host youth sports tournaments, parents travel to different markets every week which not only frustrates parents but it means large amounts of spending is leaving the region for other markets. Page 87 of 959 16 Introduction Executive Summary - Observations Specialization has led to a decrease in sports per participant. Kids are dedicating themselves to one or two sports rather than playing a wide variety of sports, year- round. This has led to the increased popularity of club teams that play in weekend tournaments that often requires traveling. Nationally, sports historically dominated by girls (like volleyball, gymnastics and cheerleading) are increasing in popularity in part due to the rise of female sports stars like Caitlin Clark and Simone Biles. Ice sports have also increased their national popularity as the high fixed costs associated with sports like hockey are easier to justify if (due to specialization) an athlete is playing year-round rather than seasonally. Locally, the popularity of sports is often capped by the number of facilities available. Indoor sports and ice sports in Dubuque are capped due to the lack of courts and ice rinks. Additional courts would likely grow the popularity of these sports in Dubuque. When analyzing case studies, Schmitt Island has a lot of positive attributes especially their proximity to existing entertainment options. Commonly, these facilities are located in close proximity to entertainment and retail; the upcoming family entertainment center at the Q Casino will complement a potential new sports complex on Schmitt Island. However, Dubuque is behind in several key factors like number of nearby hotels and distance to a major airport compared to markets with a similar development such as Appleton, Des Moines and the Quad Cities. Any space should be built with multi-sport capabilities like the Community First Champion Center in Appleton, Wisconsin which has an ice rink that can be converted into basketball courts. Most of these facilities operate using a public-private-partnership and were financed through a variety of methods such as hotel taxes, TIFs and city bonds. Johnson Consulting helped develop several different scenarios for potential developments on Schmitt Island. The optimal scenario involves 6 additional basketball courts and an additional ice rink to the existing ImOn Arena. This would allow local sports organizations that use either ice rinks or hardwood surfaces a place to practice and host tournaments. While outdoor sports like baseball and soccer are important to the city and locally popular, Schmitt Island’s size restricts any sizeable development of outdoor fields. The price elasticity of rental rates in the market may prove to be a challenge for the indoor courts, but their ability to host multiple sports like basketball, volleyball, wrestling and cheerleading should increase the demand for the facility. Page 88 of 959 2. Market Assessment Page 89 of 959 2.1 Economic & Demographic Trends Page 90 of 959 19 Market Assessment Overview Dubuque is located in Eastern Iowa on the Mississippi River bordering Wisconsin and Illinois. As of 2024, Dubuque has a population of 59,635 making it the 11 th biggest city in the state of Iowa. Unlike the rest of Iowa which is relatively flat, Dubuque is located in the Driftless Region and is situated on bluffs, giving it a hilly terrain compared to the rest of Iowa. While Dubuque’s economy has traditionally relied on manufacturing, the city needs to diversify its economy to grow. The region has a modest tourism draw, partially because of the “Field of Dreams” movie site which is located in nearby Dyersville. However, Dubuque can be difficult to travel to: •Air: Dubuque lost its air service back in January of 2024, but its regional airport regained limited service in November of 2024 with flights to Chicago. Previously, Dubuque residents had to drive to nearby markets to fly. Now, travel to and from Dubuque can be done completely via air. •Highway: Dubuque is not connected to any major Interstate, so in order to drive to Dubuque only major highways like U.S Highway 20 and U.S Highway 151 are available. As shown by the map on the right the 30-, 90-, and 240-minute drivetime catchments reach as far East as Chicago, as far South as Springfield, IL, as far West as Des Moines and as far North as Wausau, WI. Page 91 of 959 20 Market Assessment Population The resident population of the city of Dubuque was 59,635 persons in 2024. The 30-, 90-, and 240-minute drive time catchment areas, reflecting the draw of a potential new Schmitt Island Sports Complex, had populations ranging from 124,963 to 19,567,095. Between 2010 and 2024, the population of the city of Dubuque increased at an average rate of 0.2 percent per annum. These growth rates were below that of Iowa and the nation. From 2024 to 2029, the population of Dubuque is forecasted to grow at an average rate of negative 0.1 percent per annum. Growth rates in these markets are consistent with the 240-minute drivetime catchment but well below the state and national forecasts. As regional deindustrialized continues, jobs and workers will continue to leave the region at larger rates. 2000 2010 2024 2029 CAGR* 2010-2024 CAGR* 2024-2029 USA 281,421,906 308,745,538 338,440,954 344,873,411 0.7%0.4% Iowa 2,926,324 3,046,355 3,236,114 3,275,570 0.4%0.2% Dubuque 57,816 57,617 59,635 59,356 0.2%-0.1% Schmitt Island (30 minutes)113,850 120,003 124,963 125,000 0.3%0.0% Schmitt Island (90 minutes)1,149,389 1,207,838 1,267,049 1,269,561 0.3%0.0% Schmitt Island (240 minutes)18,448,309 19,285,244 19,567,095 19,454,997 0.1%-0.1% *Compounded Annual Growth Rate Sources: Esri, Johnson Consulting Population Page 92 of 959 21 Market Assessment Age Age is an important demographic indicator to consider when evaluating the market. Some markets seek to combat “brain drain,” a phenomenon where primarily college-educated young professionals are leaked to larger or different metropolitan markets. Other markets seek to attract wealthier retirees, which bring economic spending, leisure time, and philanthropic dollars with them to these markets. Dubuque has a lack of well-paying jobs which has increased an exodus of young workers, furthering the issue of “brain drain.” The Dubuque area has a much younger age distribution relative to state and national averages. 29% of the people in the 30-minute drivetime catchment around Schmitt Island are ages 15-34, representing a much higher proportion than the state and nation. This is likely due to the three major colleges in the city that bring large numbers of young people to the city. However, the proportion of middle age populations (ages 30-54) are significantly lower than state and national averages. These demographics are particularly important because they represent heads of families. The lack of this age group indicates Dubuque may have a lack of quality family-friendly amenities. A sports facility could help to retain and attract families to the region. ` Sources: Esri, Johnson Consulting 2024 Age Distribution 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% Pe r c e n t a g e o f P o p u l a t i o n United States Iowa Schmitt Island (30 minutes) 29% 2010 2024 2029 CAGR* 2010- 2024 CAGR* 2024-2029 USA 37.1 39.3 40.4 0.4%0.6% Iowa 38 38.9 39.9 0.2%0.5% Dubuque 37.9 37.9 39.2 0.0%0.7% Schmitt Island (30 minutes)37.4 38.6 39.4 0.2%0.4% Schmitt Island (90 minutes)38.8 40.2 41.2 0.3%0.5% Schmitt Island (240 minutes)36.8 39.3 40.3 0.5%0.5% *Compounded Annual Growth Rate Sources: Esri, Johnson Consulting Median Age Page 93 of 959 22 Market Assessment Education & Income Education and income, although not strict predictors of sports, recreation and entertainment facility performance, are important market attributes for benchmarking the level of activity. Markets with higher educational attainment and income levels are more likely to have a robust economic base and healthy education system, which are key components of ensuring long-term growth and resiliency. Well-educated, higher income markets have a significant advantage when it comes to attracting new businesses, and are also more likely to have the nightlife, retail, and tourism products that appeal to event planners. The 30-minute drivetime radius around Schmitt Island has below average educational attainment levels among adults age 25+ for high levels of educational attainment. 35.4% of people in the area around Schmitt Island have a Bachelor’s or higher educational attainment. This is lower than national levels but higher than the state average. The Dubuque area has a low proportion of adults age 25+ without a high school education and high proportion of adults 25+ with a high school education. The median household income in the 30-minutes around Schmitt Island is $66,647 per annum, significantly below that of the U.S. ($79,068). Income levels in the city of Dubuque are projected to grow at a rate of 2.6 per annum over the next five years, which is less than the United States. These education and income statistics reflect a weak economic trajectory. Sources: Esri, Johnson Consulting 2024 Educational Attainment 9.4% 26.8%27.1% 36.8% 5.9% 29.6%30.8% 33.7% 5.2% 31.7% 27.7% 35.4% 0% 5% 10% 15% 20% 25% 30% 35% 40% Less than High School High School or Equivalent Some College / Associate's Bachelor's or Higher Pe r c e n t o f A d u l t s A g e 2 5 + United States Iowa Schmitt Island (30 minutes) 2024 2029 CAGR* USA $79,068 $91,442 3.0% Iowa $74,738 $83,750 2.3% Dubuque $66,647 $75,612 2.6% Schmitt Island (30 minutes)$75,102 $84,530 2.4% Schmitt Island (90 minutes)$76,143 $86,177 2.5% Schmitt Island (240 minutes)$79,873 $91,365 2.7% *Compounded Annual Growth Rate Sources: Esri, Johnson Consulting Median Household Income Page 94 of 959 23 Market Assessment Dubuque Regional Average Sports Spend Each number in the dots to the right represent an index of spending within that region, where 110 represents 10% higher than the national average and 95 representing 5% less than the national average. The 30-minute drivetime catchment spends roughly 11 % less than the national average on fees for participant sporting events. This indicates a lack of disposable income allocated towards sports. The 90-minute drivetime catchment spends 8% less than the national average and the 4-hour drivetime catchment spends 2% less than national average most likely due to its inclusion of major markets like Chicago, Milwaukee and Des Moines. Dubuque area residents spend far less than the national average on fees for participant sporting events (including trips and local events). This could either be due an unwillingness to spend on expensive sports tournaments and events or due to the lack of available venues, tournaments and opportunities in the Dubuque area. A new venue may bring higher rates of spending as there would be more sporting opportunities in the Dubuque area. Page 95 of 959 24 Market Assessment Disposable Income and Sports Spending The table below shows the differences between different cities, states and regions’ median disposable income and other sports spend related statistics. Dubuque and the drivetime catchments closest to Dubuque have below average median disposable income as well as below average other sports spending categories. This likely means that the ability and desire to pay for a quality athletic facility will be less than national averages. However, the 240-minute drivetime catchment is on-par with national averages meaning there are a large number of people within driving distance who are willing to spend on sports tourism. These people are likely concentrated in large metro areas such as Chicago, Milwaukee and Des Moines. Median Disposable Income Fees for Participant Sports Membership Fees for Social/Recreation /Health Clubs Admission to Sports Events Total Sports Spending % of Disposable Income Spent on Sports Events % of Disposable Income Spent on Sports Events, Indexed to National Average* United States $63,562 $133 $302 $79 $515 0.81%100 Iowa $59,890 $116 $266 $79 $461 0.77%95 Dubuque $55,427 $107 $251 $73 $431 0.78%96 Schmitt Island (30 minutes)$60,617 $118 $273 $80 $472 0.78%96 Schmitt Island (90 minutes)$60,671 $121 $279 $82 $482 0.79%98 Schmitt Island (240 minutes)$63,297 $130 $300 $84 $514 0.81%100 *Where 100 is average, 110 is 10% above average, and 90 is 10% below average Sources: Esri, Johnson Consulting Disposable Income and Average Household Sports Spending Page 96 of 959 25 Market Assessment Major Employers & Unemployment A strong corporate and business presence can be important in the success of a sports, recreation, event and entertainment facility, because local businesses support facilities by attracting residents to the area, and providing disposable income, as well as through their requirement for event space, and through donations, sponsorships and advertising. Dubuque has attempted to diversify its market away from a manufacturing focus to a wide range of sectors. However, the rate of lost manufacturing jobs is outpacing the gain of new non- manufacturing jobs. Despite having issues diversifying their economy, Dubuque has maintained relatively low unemployment numbers. Both Iowa and Dubuque’s unemployment rates have consistently tracked lower than that of the United States. In 2024, Dubuque and Iowa’s unemployment rate was 2.9% and 3.0% respectively; the United States had a higher rate of 4.3%. However, unemployment rates don’t always capture the entire picture as they ignore variables like underemployment and labor participation rate. For example, stakeholder engagement and reports on the region indicated high paying jobs in Dubuque was less than compared to the rest of Iowa. This is also indicated by Dubuque’s low median household income. Employer Industry Employees John Deere Dubuque Works Manufacturing 2,810 Dubuque Community Schools Education 2,000 MercyOne Dubuque Medical Center Health Care 1,438 HODGE Industrial Services 1,102 Medical Associates Clinic Health Care 1,069 University of Wisconsin-Platteville Education 1,062 UnityPoint Health - Finley Hospital Health Care 940 Cottingham & Butler, Inc.Insurance 851 City of Dubuque Government 737 Sedgwick CMS Insurance 725 Rainbo Oil Company Retail Trade 558 Western Dubuque County Community School District Education 551 Hormel Manufacturing 550 Medline Industries Health Care 500 Mi-T-M Corporation Industrial Services 465 Source: Greater Dubuque Development Corp, Johnson Consulting Major Employers in Dubuque, IA Sources: Bureau of Labor Statistics, Johnson Consulting Unemployment Rate 0% 2% 4% 6% 8% 10% 12% 2007 2009 2011 2013 2015 2017 2019 2021 2023 United States Iowa Dubuque (MSA) Page 97 of 959 26 Market Assessment Location Quotient by Industry Sector As of 2024, the largest industry in Dubuque was Manufacturing. With increasing costs and automation, keeping manufacturing jobs in Dubuque (and the United States) will only get more difficult. There is a want and a need to diversify Dubuque’s economy away from an industry that is not projected to grow domestically. The top 5 industries with the most employees are: •Manufacturing •Health Care and Social Assistance •Retail Trade •Educational Services •Accommodation/Food Service The table on the right provides a location quotient analysis of the number of employees in the Dubuque area by industry sector relative to that of the U.S. as a whole. Location quotients of 1 indicate a similar relative concentration of that particular industry in the region, while values higher than 1 indicate higher concentrations of that industry, and values lower than 1 indicate lower concentrations of that industry. The location quotient values are color-coded accordingly. The Dubuque region has a high concentration of Manufacturing and Agriculture related jobs relative to that of the United States. Page 98 of 959 27 Market Assessment Implications Dubuque is a mid-sized city that is having problems with maintaining a robust population. The city of Dubuque currently has a population of 59,635 and the population of the city is projected to slightly decline while the metro area of Dubuque is projected to remain stagnate. Dubuque’s largest industry, manufacturing, has been on a decline ever since the deindustrialization of the 1980’s, which has led to a mass-exodus of working-class residents. Dubuque also faces a problem with losing younger college-educated residents to larger markets (aka “Brain Drain”). Dubuque does not have as many family-friendly community assets as larger markets. The construction of additional sports surfaces or a sports facility on Schmitt Island would help to lessen that drain away from the city. Dubuque’s economic and demographic profile has some extremely positive attributes. The Dubuque metro area has a strong median household income of $75,102 and it is expected to increase by 2.4% by 2029. Dubuque also has an extremely young population due to the number of universities located within the city. The City of Dubuque’s median age is 37.9, which is much lower than the national average of 39.3. Dubuque also has an Unemployment rate of 2.9% which is in-line with Iowa’s (3.0%) and well below the national average of 4.3%. A sports facility on Schmitt Island could greatly help to improve these already positive attributes. Young college graduates from one of Dubuque’s universities who are deciding where to settle down and start a family will see a youth sports complex as a positive reason for staying in Dubuque. Dubuque residents are less likely to spend on participation sporting events. Residents in a 30-minute drivetime around Schmitt Island spend 11 % less than the national average on fees for participant sporting events. Dubuque’s current inventory of rentable sports facilities is largely run by the school district and is purposefully inexpensive so that teams and organizations can get cheap practice times. This may be part of what drives down Dubuque’s average spend on participation sporting events. This also indicates a high market elasticity, the higher the rental costs, the less likely people are willing to spend. Page 99 of 959 2.2 Regional Facility Audit Page 100 of 959 29 Regional Facility Audit Hotel inventory Data from CoStar, which is an independent hotel research firm whose statistics are widely used in the industry, indicates that within a 30-minute drivetime radius of Schmitt Island, there are 50 hotels with a total of 2,682 rooms. There are only six hotels with 100 or more rooms. The table to the right shows these hotels along with their exact number of rooms, hotel class, total meeting space and largest meeting space. The largest hotel by number of rooms and most meeting space is the Grand Harbor Resort & Waterpark, which has 193 Upper Upscale rooms and over 86,000 SF of meeting space. Dubuque’s inventory of large hotels is on the higher end with three of their six largest hotels classified as Upper Upscale or Upscale. The other three hotels are more affordable options that range from Economy to Upper Midscale. The map to the right shows the location of the hotels within a 30-minute drivetime of Schmitt Island that are greater than 100 rooms. All major hotels in the Dubuque region are located within Dubuque with most being in Downtown Dubuque or on Schmitt Island itself. If the proposed Schmitt Island facility is going to host traveling youth sports tournaments, additional hotel rooms will likely be necessary in meeting the demand these tournaments can bring. Hotel Class Year Built (Renovated)Rooms Largest Meeting Space (SF) Total Meeting Space (SF) Grand Harbor Resort & Waterpark Upper Upscale 2002 193 9,000 86,000 Holiday Inn Dubuque Galena Upper Midscale 1991 (2003)193 3,075 9,599 Days Inn Dubuque Economy 1961 162 1,000 1,000 Best Western Plus Dubuque Hotel & Conference Center Upper Midscale 1978 (2018)150 4,127 12,845 Hotel Julien Dubuque Upper Upscale 1914 (2012)133 6,566 18,786 Hilton Garden Inn Dubuque Downtown Upscale 2005 116 1,225 1,545 Hotels <100 Rooms 1,735 17,711 20,778 Total 2,682 42,704 150,553 Sources: CoStar, Johnson Consulting Dubuque Hotel Inventory Schmitt Island Page 101 of 959 30 Regional Facility Audit Hotel Pipeline There are two hotels within a 30-minute drivetime radius of Schmitt Island with a total of 257 rooms set to enter the market by 2026. One of the hotels is an addition to the hotel already at the Q Casino, while the other will be a 160 room Marriott hotel near the Port of Dubuque. The Marriott in the Port of Dubuque will be split into two hotels, one of which will be dedicated to more long-term stays. The map on the right shows where the new hotels will be located within Dubuque. The blue circles are the incoming hotels while the orange circles are the existing hotels. The map shows that Schmitt Island and the Port of Dubuque are the two popular areas for hotels in the city, indicating that these are popular areas for tourism. Schmitt Island Property Name Hotel Class Phase Year Opening Rooms Courtyard by Marriott TBD Approved 2026 160 Tapestry Collection by Hilton Upper Upscale Final Planning 2025 97 Total 257 Sources: CoStar, Johnson Consulting Dubuque Area Hotel Pipeline Page 102 of 959 31 Regional Facility Audit Hotel Market Dubuque’s hotel market has rebounded from the dip incurred by the COVID-19 pandemic. The chart to the right shows the Dubuque area’s ADR, RevPAR and Occupancy since 2013. Dubuque area’s RevPAR and ADR have climbed back up to levels higher than before the pandemic. The market’s occupancy rate was slightly declining before the pandemic and despite recovering from lows in 2020, it has stagnated post-pandemic. Sources: CoStar, Johnson Consulting Dubuque Hotel Market Performance 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Oc c u p a n c y AD R & R e v P A R Average Daily Rate (ADR)Revenue per Available Room (RevPAR)Occupancy $120.51 $68.17 56.6% Page 103 of 959 32 Regional Facility Audit Local & Regional Supply Overview In order to identify if a market is primed or not for a sports complex, it is important to look at both local and regional facility supply to determine the level of competition for events such as games, practices, tournaments, and outside events. The challenges that any new sports complex will face depend on market and facility saturation, and an evaluation of whether the local and regional supply already exceeds local and regional demand for both indoor and outdoor sports. Johnson Consulting compiled a comprehensive list of local and regional sports facilities. The facilities have been classified based on their proximity to Schmitt Island. Local facilities are those within a 30-minute drive time of Schmitt Island and regional facilities are those located within a 4-hour drive time, although this facility is perceived to also draw from outside this radius. We also identified sports complexes that would qualify as tournament-quality facilities – those with 4 or more courts under one roof. The potential Schmitt Island Sports Complex would likely compete with these facilities for demand on either a local or regional level. Page 104 of 959 33 Regional Facility Audit Dubuque Regional Baseball Facilities The 30-minute drivetime from Schmitt Island has a low quantity of large baseball facilities. The number of baseball facilities are limited to large areas of flat land which are hard to come by in Dubuque. In the 30-minute drivetime catchment outside the City of Dubuque there is plenty of flat land, but there is far less population to support a large number of ball fields. Small towns will have one or two ball fields for little league and high school use, but not large complexes like the Prairie Ridge Youth Sports Complex in Ankeny which has 17 baseball fields. This is the largest facility in the 240- minute drivetime catchment. Larger metro areas like Milwaukee, Chicago and Des Moines all have a larger concentration of baseball diamonds. Specifically, the Des Moines metro area has a much larger concentration of baseball complex than the other major metro areas in the 240-minute drivetime catchment. There is a need for a larger baseball facility in the Dubuque region. The lack of diamonds force families to drive 90+ minutes to larger facilities in Cedar Rapids and the Quad Cities. 1 2 3 4 5 Facility Fields 1 Prairie Ridge Youth Sports Complex 17 2 Grimes Sports Complex 13 3 TBK Bank Sports Complex 10 4 Janesville Youth Sports Complex 10 5 Haban Park 12 Source: Relevant Facilities, Johnson Consulting Notable Baseball Facilities Dubuque # of surfaces Page 105 of 959 34 Regional Facility Audit Dubuque Regional Indoor Court Facilities Dubuque lacks one large basketball facility, rather there are smaller facilities scattered across the city. The courts that the city does have are mostly single courts in schools and community centers, so sports organizations not only compete with other organizations for court time, but also the schools and community centers who run the courts. There is a larger concentration of high inventory court facilities on the outskirts of the 90-minute drivetime catchment in the Quad Cities, Madison and Cedar Rapids. Parents expressed frustration at routinely driving to these metro areas for not just games on the weekend but routine weekday practices as well. In the 240-minute drivetime catchment there is a high concentration of basketball facilities to the east namely in the Chicago metro area. However, the area West of Dubuque doesn’t have as large of an inventory of indoor court facilities. A new facility could draw families from the Des Moines area or from the North like La Crosse where there is a similar lack of courts. Dubuque # of surfaces 1 2 3 4 5 Facility Courts 1 TBK Bank Sports Complex 8 2 Game on Sports/Sandlot Sports CR 5 3 Pleasant Prairie Rec Plex 12 4 Community First Champion Center 8 5 Romeoville Athletic & Events Center 8 Source: Relevant Facilities, Johnson Consulting Notable Indoor Facilities Page 106 of 959 35 Regional Facility Audit Dubuque Regional Soccer Facilities Similar to baseball facilities, large soccer facilities require large swaths of flat land; Dubuque’s hilly terrain hinders the city’s ability to have one large facility. The Dubuque Soccer Complex is the largest soccer complex in Dubuque with 7 soccer fields and is also the third largest within the 90-minute drivetime catchment, behind the Tuma Sports Complex (22 fields) in Marion, IA and the Reddan Sports Complex (11 fields) in Verona, WI. The largest facilities are in the 240-minute drivetime catchment like the Fond Du Lac Soccer Complex (32 fields) in Wisconsin or the Stuart Sports Complex (31 fields) in Montgomery, Illinois. In order to compete with these facilities, a new Dubuque soccer facility would need to be similarly large and given the competitive facilities comparative proximity to larger markets, a new Dubuque Soccer Facility would still have trouble drawing families from Chicago or Milwaukee. 1 2 3 4 Dubuque # of surfaces Facility Fields 1 Tuma Sports Complex 22 2 Fond Du Lac Soccer Complex 32 3 Mercyhealth Sportscore One 18 4 Stuart Sports Complex 31 Source: Relevant Facilities, Johnson Consulting Notable Soccer Facilities Page 107 of 959 36 Regional Facility Audit Dubuque Regional Hockey Facilities The ImOn Arena on Schmitt Island is Dubuque’s lone rink and the only sheet of ice within an hour of Dubuque. The closest competitive facilities are all close to the 90-minute drivetime catchment like the Capital Ice Arena in Madison or the ImOn Arena in Cedar Rapids. Many cities in Eastern Iowa like Cedar Rapids, Iowa City, and Mason City have at least one sheet of ice. A second sheet of ice could prevent leakage from the Dubuque market to larger ice facilities like the ImOn Arena in Cedar Rapids. A second sheet of ice would double the number of peak ice hours and make Schmitt Island’s ImOn Arena eligible to compete with those facilities in Madison and Cedar Rapids for tournaments. The Chicagoland area has a large number of rinks, but the sport is so popular that ice time is still limited and costly. A second sheet of ice might be able to attract tournaments from the Chicagoland area. 1 2 3 4 5 Dubuque # of surfaces Facility Rinks 1 Graham Arena Complex 4 2 ImOn Ice Arena 2 3 Capitol Ice Arena 2 4 Canlan Ice Sports 3 5 Woodman's Sports & Convention Center 2 Source: Relevant Facilities, Johnson Consulting Notable Hockey Facilities Page 108 of 959 37 Regional Facility Audit Dubuque Facilities Rental Rates Currently, the hourly rental rates for McAleece Park fields are affordable enough to easily accommodate residents and community non-profits. The $30/hour rental rate for non-residents or for profits is the highest rate and still extremely affordable. Similarly, pickleball and tennis court rates are very low and affordable. Basketball court rentals are run through the local school district and are similarly affordable. School Districts do not rent out courts on an hourly basis, rather, they sell weekly 75-minute time slots for 10 weeks for $110 . These rates are likely not market prices; they are set at a low price point to accommodate for community organizations and sports leagues. These affordable rental rates may indicate that the popularity of sports in Dubuque may be largely fueled by its affordability and accessibility to large swaths of citizens. Dubuque Local Schools & Colleges Resident Organizations / Nonprofits Resident Private Users/ For Profits Non Residents/For Profit Baseball/Softball Fields* McAleece Field #1 Per Agreement $20 $25 $30 McAleece Field #2 Per Agreement $20 $25 $30 McAleece Field #3 Per Agreement $20 $25 $30 Petrakis Per Agreement $20 $25 $30 Veteran's Memorial Park Field #1 Per Agreement $20 $25 $30 Veteran's Memorial Park Field #2 Per Agreement $20 $25 $30 Valentine Park Per Agreement $20 $25 $30 Pickleball/Tennis/Volleyball Courts Outdoor Pickleball/Tennis Per Agreement $3 $5 Outdoor Volleyball Per Agreement $5 $8 Source: City of Dubuque, Johnson Consulting *Baseball/Softball Field prep is an added cost and includes dragging the infield, chalking, and setting bases; $10/field on weekdays, $20/field on weekends/holidays. Lights are an additional $15/hour/field. Dubuque Facilities Rental Rates Facility Type Hourl Rental Rates Page 109 of 959 38 Regional Facility Audit Field of Dreams The Field of Dreams movie site is a 40-minute drive from Schmitt Island in nearby Dyersville, Iowa. The youth baseball tournament series that is run in coordination with the movie site is by far the area’s largest Sports Tourism attraction. The table to the right shows the impact of the Field of Dreams tournaments. In 2024 there were 10 tournament weekends that brought in 453 teams from across the country. The economic impact of the tournaments was not just limited to players and coaches as each coach and player was likely to bring family members along as well. There was an estimated $1.5 million in accommodation spending and another $6.8 million in estimated total visitor spending. The Field of Dreams fields bring in far more visitors than any other sports tourism asset in the Dubuque area. However, the lack of ancillary Field of Dreams youth fields means that teams end up playing at other facilities. Many of the facilities are in flood plains and are susceptible to rain outs as seen by the footnote on the chart. If additional fields are added, they must be carefully placed to minimize the impact of flooding/weather. However, additional fields would allow the Field of Dreams tournament to bring in more teams per tournament, thus increasing economic impact. 453 Teams 857 Games 15 Skills Competitions 28 Champions 106,677 Miles Traveled $1,546,104 Accomodation Spending $6,805,833 Total Visitor Spending 93 Jobs Created *Rain delays 9 out of 10 weekends 2024 Summary Field of Dreams Source: Field of Dreams, Travel Dubuque, Johnson Consulting Page 110 of 959 39 Regional Facility Audit ImOn Arena ImOn Arena, formerly known as Mystique Ice Center and Dubuque Ice Arena, is located on Schmitt Island and is the primary ice rink that serves the City of Dubuque and surrounding communities. The facility is owned by the City of Dubuque and operated by Schmitt Island Development Corporation. The arena was originally opened in 2010 for approximately $10 million and was renovated in 2022 for $6 million to address foundation concerns. ImOn Arena is a 3,200-seat, single sheet ice rink and event space. The arena features concessions, luxury box suites, press boxes, a lounge with a full bar, meeting rooms, restrooms, and a small pro shop. The arena is home to the Dubuque Fighting Saints of the USHL, Dubuque Youth Hockey, and the Dubuque Saints, the Dubuque High School hockey team, and the University of Dubuque men’s and women’s hockey teams. The facility hosts youth, adult, and senior hockey, as well as figure skating, public skate, and other ice activities. Being the area’s first and only dedicated ice arena, the facility is in high demand. Key user group usage over the 2023 calendar year compared to available hours of operation are charted below. As shown, the winter months have a much higher utilization rate than the summer months. This is further illustrated by the seasonal calendars on the following pages. Page 111 of 959 40 Regional Facility Audit ImOn Arena The following calendars are samples of an average month during the winter, spring, and summer seasons at the arena. As the schedule shows, the ImOn Arena is booked almost every week day from 6am to 9pm, indicating there is enough participation in the Dubuque area to expand to two rinks. An extra sheet of ice would allow more practice time for local organizations, allowing for the growth of ice sports and events. ImOn would also be able to double their peak ice hours (5pm-10pm daily) allowing them to bring in more revenue. Winter 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 6:00 AM 6:30 AM 7:00 AM 7:30 AM 8:00 AM 8:30 AM 9:00 AM 9:30 AM 10:00 AM 10:30 AM 11:00 AM 11:30 AM 12:00 PM 12:30 PM 1:00 PM 1:30 PM 2:00 PM 2:30 PM 3:00 PM 3:30 PM 4:00 PM 4:30 PM 5:00 PM 5:30 PM 6:00 PM 6:30 PM 7:00 PM 7:30 PM 8:00 PM 8:30 PM 9:00 PM 9:30 PM 10:00 PM 10:30 PM 11:00 PM 11:30 PM 12:00 AM Page 112 of 959 41 Regional Facility Audit ImOn Arena Page 113 of 959 42 Regional Facility Audit ImOn Arena The arena currently only has one sheet of ice. With the number of regular user groups, local demand, and regional demand, there is likely an opportunity to expand programming if an additional sheet of ice was available. Revenues at the arena also align with busier seasons as a main revenue source is food and beverage sales during events. Page 114 of 959 43 Regional Facility Audit Implications Dubuque is severely lacking in large sports facilities when compared to other neighboring markets. The facility inventory maps indicate that other markets such as Cedar Rapids, Des Moines, Quad Cities and Madison have a higher number of facilities and fields than compared to Dubuque. This is understandable as Dubuque’s terrain makes it far more difficult to build large baseball and soccer complexes in the city. Baseball is an extremely popular sport in the region and the Field of Dreams tournaments is a large draw to the region; however, the inadequate inventory of fields near the facility leads to Dubuque’s poorly irrigated fields to be used. Sports Facility Rental rates are extremely affordable in Dubuque to cater to local organizations and not towards large tournament teams. Available surfaces are often scattered throughout the city and are not in one central location. These fields and courts are of varying qualities and many are not capable of hosting large scale tournaments. A new facility would increase the supply of quality surfaces, but likely at the expense of affordability. A new higher quality facility will likely have a higher rental rate than other facilities in the area that are ran by schools or the parks department. Dubuque’s ice arena is a prime candidate for an additional surface. The rink is booked from open to close during the winter months and has to accommodate multiple teams of all ages. Currently there isn’t enough ice time to accommodate for additional hockey or figure skating athletes and the growth of ice sports in Dubuque is capped. A new sheet of ice would allow additional participants to form new teams and to expand the popularity of hockey and figure skating in the region. An additional sheet of ice would also allow the facility to double their prime ice sheet time. This prime ice sheet time that runs from 5pm-10pm generates far more hourly revenue than 6am practice times which some organizations are forced to use due to the lack of ice time. An additional sheet of ice would also put Dubuque on par with other markets like Cedar Rapids and Madison that have a facility with two sheets of ice. This would allow Dubuque to bring in larger hockey tournaments to Schmitt Island. While the ImOn ice arena is currently used heavily during the winter, the sheet of ice isn’t heavily utilized in the summer. If an additional sheet of ice is to be added to the arena, it should have multipurpose capabilities. Being able to convert the second sheet of ice to courts or turf during the summer months would increase utilization of Schmitt Island even more. Page 115 of 959 2.3 Stakeholder Engagement – Key Findings Page 116 of 959 45 Stakeholder Engagement Overview The engagement of potential users of a new venue on Schmitt Island was emphasized as a priority of this study from the outset. As with any project of this importance, it is crucial to engage with a wide variety of individuals and organizations throughout the industry to foster a sense of buy-in and inform the study’s observations, conclusions, and recommendations. Johnson Consulting’s outreach strategy involved conducting supplemental, targeted focus groups and interviews with key stakeholders in the proposed project, potential project partners, and local, regional, and national industry experts in the realm of sports tourism facilities. These focus groups and interviews began with in-person sessions in August 2024 and continued throughout the remainder of the study. Johnson Consulting conducted interviews and focus groups with individuals representing 27 different organizations, including local sporting organization leaders, local government leadership, and regional venues. These engagements helped us to understand the popularity and trajectory of the youth sports in the region, the needs of its stakeholders, and whether the proposed venue would help meet those needs. They also provided important context on local government, current attempts at a similar facility, and the market opportunities that exist for the proposed venue. The diagram to the right outlines the scope of the stakeholder engagement effort. Community Engagement Key Stakeholders Potential Partners Industry Experts Local Sporting Organizations Local Governments Local Venues Page 117 of 959 46 Stakeholder Engagement Key Themes There is an apparent need for additional, quality athletic surfaces in Dubuque. The existing limited availability results in participants and dollars leaking into neighboring markets. A sports and recreation development on Schmitt Island has the potential to create opportunity for sports tourism in Dubuque with the ability to host tournaments and other large-scale events. However, a tournament quality facility may present a challenge to shift the status quo of local use. Input from various stakeholders suggest there is not only an opportunity to leverage programming partnerships for this project, but the majority of stakeholders agreed that a public-private partnership would be ideal for the development of this project. Further, it was noted that sports complexes and similar developments may have ripple effects on the local economy, such as workforce recruitment and retention and local business growth. Key Themes Evident Gap in the Sports Market Participant & Economic Leakage Sports Tourism Potential Partnership Opportunity (P3) Employer/Employee Recruitment/Retention Paradigm Shift from Local Facilities Page 118 of 959 3. Participation Trends & Comparative Market Analysis Page 119 of 959 3.1 Participation Trends Page 120 of 959 49 Participation Trends & Comparative Market Analysis Sports Industry Facility Trends Throughout the past decade, youth sports facilities aimed at generating tourism through large multi-day tournaments have become increasingly common, as their magnitude is often able to draw demand from surrounding states, and sometimes the entire country. While generating sports tourism demand relies on several factors, the widely accepted standards for a facility to qualify as a sports tourism facility for each surface type are as follows: •Indoor Facility: 4 or more surfaces in a single venue •Outdoor Facility: 10 or more surfaces at a single venue The number of surfaces is not necessarily the only determining factor for whether a facility will generate sports tourism. Other factors that influence the success of sports tourism facilities include: •Strategic location: Facilities that have major metropolitan areas within close proximities (~4-hour drive time) are accessible to a larger number of people, and thus have more opportunities to host larger events, and can rely on steady local and regional events to provide consistent demand and out of town visitors. •Proximity to other competitive sports tourism facilities: While a sports tourism facility with an ideal strategic location near a major US city may initially seem like an ideal development, it is possible that similar facilities have already been developed nearby and would represent significant competition for a new facility. •Quality: The quality of the surfaces is often a major selling point for the most prominent sports tourism facilities in the country. Significant investment in the development and upkeep of top-quality surfaces and buildings, as well as other features such as lighting, parking, and management are essential for acquiring major events that bring in visitors from further destinations. •Partnerships and sponsorships: Gaining recognition through an affiliation with a well-known sports team (e.g., NBA, NFL, or MLB team) or prominent athletic/sports- based company (e.g., Nike, Under Armour, Gatorade) can help propel a facility to national recognition, depending on the prominence of the sponsor/partner. Page 121 of 959 50 Participation Trends Sports Industry Participation Trends Total team sports participation had been stagnating if not decreasing from 2012 to 2022, but there was an increase of 7M participants from 2022 to 2023. 2020 was a 10 year low in total team sports participants, but since then that number has increased every year and even exceeded pre-COVID levels at 136 million team sports participants. The chart to the right also shows the gradual decline in Sports per Participant. This underlies the gaining popularity of specialization. As more kids choose to focus on a single sport, they no longer participate in multiple sports. While this can lead to the decrease in total sport participation, it can lead to higher commitment participation. For example, a little league may only have one tournament a year, but travel ball leagues may have a tournament every week. Source: SFIA, Johnson Consulting Team Sport Participation & Sports Per Participant 132M 132M 130M 132M 133M 133M 132M 130M 126M 126M 129M 136M 2.14 2.06 2.02 1.99 1.94 1.97 1.92 1.84 1.88 1.85 1.82 1.73 0 0.5 1 1.5 2 2.5 3 0 40 80 120 160 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Total Sport Participants Sports Per Participant Page 122 of 959 51 Participation Trends Indoor Sports Trends Participation There has been a sharp increase in indoor sports participation in sports such as basketball, cheerleading and gymnastics. The rapid increase in participation is likely due a post-COVID rebound. The two sharpest increases in indoor sports have been in majority female participation sports. The recent popularity of female sports figures like Simone Biles and Caitlin Clark have increased sports participation among girls. Volleyball is the only major indoor alternative to basketball and it’s likely that as sports participation recovers from COVID that volleyball will continue its increase in participation. Basketball Volleyball Cheerleading Gymnastics 1.1%8.5%8.5%22.8% Sources: NSGA Sports Participation Survey, Johnson Consulting Change in Indoor Sports Participation Trends (2020-2023) Sport Percentage Change Page 123 of 959 52 Participation Trends Outdoor Sports Trends Participation The post-COVID rebound among outdoor sports is similarly sharp among Lacrosse and Soccer which in addition to gaining participation since the lifting of COVID restrictions have seen long term success in gaining participation since 2010. Both Lacrosse and Soccer have seen a growing popularity in the United States as seen by the addition and growth of the Professional Lacrosse League, Major League Soccer and United Soccer League. These sports are gaining in visibility and are similarly popular entertainment options for children who are deciding what sports they want to play. Baseball has seen a sharp decline in participation from 2020 to 2023, which is in line with its decline since 2010. As travel ball leagues take over Little Leagues, baseball has become more expensive and less accessible to more and more Americans. Softball has seen a less dramatic decrease, but participation has still dropped. This is likely due to the increasing popularity of pickleball which has replaced softball as the sport of leisure for young adults. Baseball*Softball*Football Lacrosse Outdoor Soccer -4.9%-0.6%-5.1%6.5%4.5% Source: NSGA Sports Participation Survey, Johnson Consulting Percentage Change *These are national participation trends and not representative of Dubuque's local increased popularity in Baseball and Softball Change in Outdoor Sports Participation Trends (2020-2023) Sport Page 124 of 959 53 Participation Trends Ice Sports Trends Participation Ice sports such as Ice Hockey and Figure Skating have seen a similar increase in popularity from 2020 to 2023. One factor that contributed to this is the popularity of the 2022 Winter Olympics. Ice and Snow Sports such as hockey, figure skating, skiing and snowboarding all saw an average increase in participation by 10.9% since the Winter Olympics in 2022. Ice hockey and figure skating were some of the only outdoor sporting activities people were able to participate in during COVID which drew a lot of new participants to the sport. Additionally, the popularity of the National Hockey League is leading to the popularity of hockey in previously untapped markets. The Stanley Cup playoffs had a record high first round viewership numbers and the Stanley Cup continues to increase in total viewership in contrast with other professional sporting championships. The expansion of teams to Las Vegas and Seattle along with a team moving to Utah has drawn more visibility on the sport of hockey to markets where hockey typically wasn’t a popular sport. Ice Hockey Figure Skating 8.7%8.4% Source: NSGA Sports Participation Survey, Johnson Consulting Percentage Change Change in Ice Sports Participation Trends (2020-2023) Sport Page 125 of 959 54 Market Penetration Sports Penetration Methodology The flow chart below summarizes the methodology used to determine the Total Estimated Demand for sports Participation/visitation in Dubuque. Each drivetime catchment Population was multiplied by a custom individual sports participation rate to get a total number of participants in each drivetime catchment. The total sport participants in each drivetime catchment were multiplied by a custom estimated Market Penetration Rate. For the 90- and 240-Minute drivetime catchments, this is a measure of how many competitive facilities within a drivetime catchment are in Dubuque. For the 30-Minute drivetime catchment, a Sports Surfaces Deficiency Rate was used to measure how adequately Dubuque provides sports surfaces compared to other communities of a similar size. X X =Population National Participation Rates by Sport CHJC Estimated Market Penetration Rate Total Estimated Demand Page 126 of 959 55 Market Penetration Current Dubuque Market Penetration Rate The table on the right shows the current Total Estimated Demand by each drivetime catchment. Currently, most of the sporting activity that occurs in Dubuque comes from local users rather than sports tourism. Dubuque does not have the facilities to attract outside sports tourism. The Field of Dreams youth baseball tournaments does bring in a large portion of the city’s sports tourism. Youth baseball teams are coming to Dubuque because of the nearby Field of Dreams movie site and not because there is a facility with a large inventory of fields. Dubuque does not have any major facility that would attract large regional tournaments, which is why the penetration rates for the 90-minute and 240-minute drivetime catchments were so low. Sports like basketball are able to attract a couple of tournaments every year, but these tournaments are often split between multiple facilities. Most tournament organizers want to utilize one single facility for their tournaments to limit travel time for parents. A large facility with multiple fields is necessary for attracting larger tournaments or in the case of baseball, maintaining large tournament attendance. Page 127 of 959 56 Market Penetration Projected Dubuque Market Penetration Rate The table on the right shows Dubuque’s potential market penetration if regionally competitive facilities for each sport were built. These facilities would mainly compete with other facilities with a similar number of fields within a 90-minute drivetime catchment. For example, if ImOn Arena were to add an extra sheet of ice, they would be able to compete with other two sheet facilities in Madison and Cedar Rapids. The table on the bottom shows how the minimum number of fields necessary to be considered a competitive facility within the 90-minute drivetime catchment. Creating a facility that is more catered towards sports tourism would also provide additional court/field space for local organizations. Tournaments are likely only to occur during the weekends; this leaves the facilities to local organizations during the week days. Whenever a sports tourism facility is built, a community asset is added. Source: Johnson Consulting Ice Hockey/ Ice Skating Baseball/Softball 8 Diamonds Soccer/Lacrosse/ Football 8 Rectangular Fields Basketball/ Volleyball/ Cheerleading/ Wrestling 4 Courts Minimum Facility Threshold (90-Minute) 2 Rinks Page 128 of 959 57 Market Penetration Projected Dubuque Market Penetration Rate The table on the right shows Dubuque’s potential market penetration if a regionally competitive facility for each sport were to be built. These facilities would mainly compete with other facilities with a similar number of fields within a 240-minute drivetime catchment. The table on the bottom shows the minimum number of fields necessary to be considered a competitive facility within the 240- minute drivetime catchment. As mentioned on the previous slide whenever more surfaces are added so is a community asset as local sports organizations can use the surfaces whenever tournaments are in town. Source: Johnson Consulting Minimum Facility Threshold (240-Minute) Ice Hockey/ Ice Skating 3 Rinks Baseball/Softball 12 Diamonds Soccer/Lacrosse/ Football 12 Rectangular Fields Basketball/ Volleyball 8 Courts Page 129 of 959 58 Market Penetration Total Market Penetration Across Different Scenarios The chart to the right shows how many total participants (from both community use and sports tourism) each kind of facility would attract under each scenario. Under every scenario, an indoor sports venue generates the most additional visitors. This is likely due to the number of different indoor sports. An indoor space does not have to just be programmed with basketball or volleyball, but can also have sports like wrestling, cheerleading and dance. If a four or eight court facility were to be added to Dubuque, there would be a total participation of 33,206 and 79,882 users respectively. An 8 and 12 field baseball facility would attract 22,633 and 52,624 users respectively. Given the popularity of the Field of Dreams tournament, any number of high-quality fields that are built in the Dubuque area would be used for tournaments. The indoor facility would have more sports uses and less weather constrictions than the baseball fields but would have to market the facility more actively. Adding a sheet of ice to the ImOn arena would certainly bring more visitation to the arena than there currently is, but they would have to compete with other facilities such as the ImOn Arena in Cedar Rapids and the Capital Ice Arena in the Madison area. Adding two sheets of ice would position the facility to be at a competitive advantage to the other two sheet facilities. However, due to the concentration of facilities in the Chicago and Milwaukee areas, it will be much harder to attract teams from these metro areas to come all the way to Dubuque. Source: Esri, NSGA Sports Participation Survey, NRPA, Johnson Consulting Market Penetration by Sport and Scenario *Sports Include Baseball, Softball, Ice Hockey, Figure Skating, Volleyball, Basketball, Cheerleading, Gymnastics, Wrestling, Soccer, Tennis, Pickleball, Lacrosse 9,008 33,206 79,882 3,212 10,706 39,567 8,515 22,633 52,624 2,180 7,321 46,366 0 20,000 40,000 60,000 80,000 100,000 Existing Facilities Regional Facility National Facility Indoor Sports Rectangular Fields Diamonds Ice 73,866 218,440 22,916 Page 130 of 959 59 Industry Trends Iowa Sports Trends The table to the right shows the Average Economic Impact of Sporting Events in Iowa. While baseball does not have the largest impact per event, due to the number of events, it generates a sizable amount of income. While national trends have seen decreases in baseball and softball partially due to specialization, Dubuque has seen an increase in participation due to the nearby Field of Dreams movie site field as well as the success of local high school and college baseball teams. More broadly, most sports are seeing an increase in participation since COVID. Paired with Dubuque’s high sports participation rate, Dubuque’s low inventory of facilities in the area is an issue for Dubuque residents who are eager to play. According to the National Recreation and Park Association (NRPA), Dubuque is drastically underserved for a community of its size. Dubuque’s current market penetration rate tells a similar story. Currently, Dubuque attracts a very small amount of sports tourism with the Field of Dreams tournaments being the only regional attraction. The addition of a large, centralized indoor court space would have the largest economic impact for the Dubuque area due to its year-round usability and number of sports the facility could host. Sport Average Impact Per Event Baseball $294,566 Multi-Sport*$1,059,878 Football $147,522 Wrestling $406,557 Basketball $309,215 Volleyball $241,095 Cheer & Dance $373,397 Soccer $317,127 Golf $68,800 Cycling $93,935 Source: Huddle Up Group, Travel Iowa, iTIP Average Economic Impact of Sporting Events in Iowa *Multi-Sport includes events like the Special Olympics, AAU Junior Olympics, Iowa Senior Games, etc. Page 131 of 959 60 Industry Trends Implications Despite specialization’s decrease in the number of sports per participant, total youth team sports participation has overall increased. Participation in a single sport is typically more intense and involves more practices, games and tournaments than casual participation in multiple sports. This contributes to an increase in sports tourism. Additionally, most sports have seen an increase in participation since 2020, as more restrictions lifted there was a boost in participation. Notably there has been an increase in women’s sports including basketball, volleyball and gymnastics. Dubuque residents show an affinity towards sports with their high participation numbers. However, Dubuque does not have the requisite facilities to handle the community’s desired level of participation. Local organizations are forced to use the limited number of school gymnasiums for indoor sports, outdoor soccer organizations struggle to find enough space for their growing organizations and the ImOn Arena is not big enough for the hockey and figure skating organizations in Dubuque. The lack of facilities not only indicates that the local organizations’ needs aren’t being met, but also the city’s sports tournaments aspirations are harder to meet. Dubuque is extremely lacking in hosting sports tourism events. The Dubuque region is able to attract a strong number of visitors for baseball tournaments due to the popularity of the Field of Dreams tournament and movie site. However, the Field of Dreams Tournament isn’t attracting teams because of the high-quality fields and the construction of more fields would lead to increased sports tourism. Page 132 of 959 3.2 Comparative Market Analysis Page 133 of 959 62 Comparative Market Analysis Case Studies Overview The following case studies were chosen as examples of leading industry trends and best practices in relation to proposed development improvements based in sports and recreation on Schmitt Island. The case study set includes a variety of facilities that may include indoor, outdoor, and multipurpose programming. This subsection of the report includes detailed profiles of each destination that describe key programming, development, and operating characteristics as well as a benchmarking exercise to compare each of the venue’s markets and other attributes to that of Dubuque. Dubuque Key Facility 1 Community First Champions Center - Appleton, WI 2 TBK Bank Sports Complex - Bettendorf, IA 3 MidAmerican Energy RecPlex - West Des Moines, IA 4 FunCity Courts & FunCity Turf - Burlington, IA Map Legend Page 134 of 959 63 Comparative Market Analysis Community First Champion Center Year Opened: 2019 Ownership/ Management: The Town of Grand Chute owns the facility while Fox Cities Sports Development, Inc. manages the facility with 7 full time employees. Size: The 164,000 SF indoor facility sits on approximately 11 acres. Cost: The cost of construction in 2019 was $30 million, which would translate to approximately $37 million today. The cost of construction was provided by a 3% hotel tax, which also helped fund the Fox Cities Exhibition Center. Facilities: The Community First Champion Center is a preeminent indoor sports facility in the Midwest, located in the Fox Cities region of northeastern Wisconsin. The facility features a year- round ice rink, a fieldhouse, and an arena that transitions from an ice rink and hardwood courts, depending on the season. The rink is NHL-sized, and has seating for 1,000. The fieldhouse has 4 basketball courts, which can be converted to 8 volleyball courts, and has seating for 800. The seasonal arena switches between an NHL-sized ice rink and 4 basketball courts (or 6 volleyball courts), and has seating for 300. In addition to these sports spaces, the venue has 10 locker rooms, 3 team meeting rooms, a Champion Links Golf Simulator, an on-site physical therapy clinic, a trainer’s room, concessions, and an observation deck and mezzanine for spectators Page 135 of 959 64 Comparative Market Analysis Community First Champion Center Rental Rates: •Basketball courts: $60/hour •Pickleball courts: $15/hour •Open skate: $7/hour •Other surfaces and event rentals are negotiable. Demand: The Community First Champion Center attracts regional and national tournaments for hockey, basketball, and volleyball, and hosts youth sports camps and community events. The facility is truly multi-purpose in its design and programming, with flexible sports spaces as well as space devoted to services (i.e., physical therapy, massage, personal training, etc.) and to meetings. In 2022, the facility was activated 357 days out of the year with a total of 66 tournaments, 37,000 participants, and 57,000 spectators. Those 66 tournaments held at the facility generated 13,725 room nights and nearly $4.3 million in direct visitor spending in the Fox Cities. Page 136 of 959 65 Comparative Market Analysis TBK Bank Sports Complex Year Opened: 2018 Ownership/ Management: The complex is privately owned by a coalition of private residents and business leaders TBK Bank Sports Complex and JP Sports. Size: The 273,000 SF indoor complex, accompanied by the outdoor fields, sits on 76 acres. In 2022, plans for expansion will add on an additional 109 acres to the development. The expansion plans include two new multiuse fields, a 3-story golf facility, a new hotel, as well as retail, dining, and bars. Cost: The original development in 2018 cost $50 million. The planned expansion, to be completed by the end of 2024, is expected to cost approximately $75 million. The city has agreed to $5.8 million in economic development grants and a 75% tax increment finance rebate over the next 20 years. Facilities: TBK Bank Sports Complex is a facility built for players and families alike to enjoy participating in youth sports. On their 76-acre campus, there are two (2) lighted turf soccer fields, two (2) full-size grass fields, ten (10) turf baseball/softball fields that are convertible into 6 more turf soccer fields, and five (5) sand volleyball courts as a part of their outdoor facility. In their indoor, there is a multi-purpose field, eight (8) regulation sized basketball/ (16) volleyball courts, a physical therapy facility, team training areas, and fitness center. Additionally, there is a TBK Entertainment Center with thirty-two (32) bowling lanes, a two- story laser tag room, escape rooms, VR sports, and an arcade. Page 137 of 959 66 Comparative Market Analysis TBK Bank Sports Complex Future plans originally were outdoor turf fields near the new Iron Tee Golf Range. However, announced in fall of 2023, developers now plan to build a 100,000 SF building to house indoor turf fields just east of the TBK Bank Sports Complex. The fields would be utilized for baseball, softball, soccer, football, and lacrosse. Rental Rates: Rates are negotiable with facility staff depending on event type and size. Demand: The TBK Bank Sports Complex hosts a number of tournaments, leagues, clubs, and clinics. The facility also offers in-house club teams for baseball, softball, volleyball, basketball, and soccer. Some of the affiliated sports organizations include the Barnstormer Baseball Club, Texas Glory Fastpitch Softball, Iowa Swarm Basketball, Sporting Iowa East Soccer Club, Quad City Strikers, Platform Elite Basketball Club, TBK Bank Sports Academy, and other TBK Bank leagues. On any given weekend, the complex sees anywhere from 3,000 to 4,000 visitors. The outdoor complex is booked nearly every weekend for baseball, so the planned expansion should provide tournament opportunity for more sports such as rugby and soccer. Page 138 of 959 67 Comparative Market Analysis MidAmerican Energy Company RecPlex Year Opened: 2021 Ownership/ Management: The RecPlex was developed as a unique destination to enhance the quality of life for Central Iowans of all ages and abilities. The City of West Des Moines owns and operates the facility and built a public-private partnership to develop the site to address the demand for a regional, year-round sports facility and the opportunity to grow youth sports programming. Size: The 300,000 SF RecPlex facility, accompanied by three outdoor multipurpose fields, sits on 66 acres. There is a possibility for expansion in adding an additional sheet of ice. Cost: The public-private partnership the city developed allowed for the construction of the facility. Most of the funding came from city bonds, hotel motel tax revenue, loans, local option sales tax revenue, tax increment financing, and state and local grants. Staff has also leveraged the sponsorship and naming rights opportunities available, such as Hy-Vee, Kum & Go, and private donors, as another funding mechanism for the RecPlex. The total cost in 2021 was $59.8 million, including $16.5 million in city bonds backed by future local option sales tax revenue, $16.4 million in city bonds backed by future hotel-motel tax revenue, $12.4 million in corporate and individual donations and pledges, and mix of other grants, loans and tax revenue. The additional sheet of ice would cost north of $30 million and would be funded through private donations, a bond funded through local option sales tax, and grants. Page 139 of 959 68 Comparative Market Analysis MidAmerican Energy Company RecPlex Facilities: The RecPlex features 2 indoor ice arenas, the 150,000 SF Hy-Vee fieldhouse with 3 full sized basketball courts (6 volleyball courts), a multipurpose court, 3 pickleball courts, and a full-sized indoor turf. Each of the hardcourts feature a scoreboard, shot clocks, and seating. There is also a warm up and batting area, an Esports Center, and multipurpose rooms for teams, meetings, and other events such as birthday parties. There are two ice arenas, the Abel Ice Arena with a capacity of 2,400 people, and can double as a 20,000 SF convention space, and the Patty & Jim Cownie Family Arena has seating for 300 spectators. There is parking for 1,200 vehicles on site. Outside, the complex offers three full size turf fields with lighting, restrooms, and internet access. The venue is focused on youth sports and offers soccer, ice hockey, skating, soccer, volleyball, pickleball, basketball, baseball, softball, lacrosse, football, and other athletic, educational, and adaptive programming. The RecPlex has proven to offer access to sports and recreation programs to all ages as well as being an economic driver for the area, impacting almost every business including hotels, restaurants, and retail. The facility is closely located to other key attractions in West Des Moines and there are future plans to continue development adjacent to the RecPlex, including athletic surfaces and commercial development. Page 140 of 959 69 Comparative Market Analysis MidAmerican Energy Company RecPlex Rental Rates: Rental rates for spaces at the facility are listed on the right. Demand: In its first year open, the facility was fully booked with approximately 40 events, 90 event days, and 120,000 attendees, and the high demand for the facility continues today. According to Placer.ai, the facility attracts nearly 900,000 annual visitors, with 22% traveling from over 10 miles away. The ice arena is available to the community for public skating and other programming, such as curling and broomball. The indoor turf is also used for a variety of activities such as Toddler Time and 55+ softball and the outdoor turf is used for ultimate frisbee. The Esports center features 30 computers and 6 gaming consoles, providing for additional programming for all ages. Page 141 of 959 70 Comparative Market Analysis FunCity Turf & FunCity Courts Year Opened: FunCity Turf opened across from the outdoor Burlington Regional RecPlex in 2019 and FunCity Courts opened in 2023. The two facilities are located 3 miles apart. Ownership/ Management: Both facilities are owned and operated by the Greater Burlington Area Sports Facilities organization, a 501(c)(3) nonprofit organization incorporated in the State of Iowa. Management of the facilities are overseen by a 9-person board of directors. The RecPlex across from FunCity Turf is not affiliated with FunCity and is owned by the City of Burlington. FunCity Courts are also a separate entity from the FunCity/Catfish Bend Casino, which is owned and operated by Great River Entertainment. Size: FunCity Turf is a 78,500 SF turf within a dome. FunCity Courts portion of the resort is approximately 27,000 SF (3 basketball courts and 4 dedicated pickleball courts). Cost: The FunCity Turf Air-Supported Dome cost $4.3 million to build. FunCity Courts was the second and final phase of a project aimed at increasing sports tourism in the Burlington Area. $6.1 million has been raised for the project through the Imagine Campaign and $3.1 million was invested by a private investor who also helped fund the feasibility studies. Page 142 of 959 71 Comparative Market Analysis FunCity Turf & FunCity Courts Facilities: FunCity Turf is a 94,000 SF facility with a 78,500 SF artificial turf. The turf can convert into up to 8 soccer fields, two youth softball fields, and other sports. There are also bating and pitching cages available for local teams. This facility offers a variety of concessions and also serves Anheuser Busch products as of 2019. FunCity Courts are located at Catfish Bend Casino FunCity Resort. There is a hotel, casino, waterpark, bowling, an arcade, dining options, and other entertainment housed on the same site as the FunCity Courts. FunCity Courts offers three full-sized collegiate basketball courts that can also be used for volleyball, as well as four pickleball courts. FunCity operated a Snack Shake in the courtside area in addition to the other dining options in the complex. Page 143 of 959 72 Comparative Market Analysis FunCity Turf & FunCity Courts Rental Rates: The FunCity Turf offers Open Dome times when there are no scheduled practices, games our tournaments. Entry is $5 for everyone entering the facility. FunCity Courts also offer Open Play sessions; $5 for basketball and volleyball and $10 for pickleball. Rental rates for both facilities are shown at right. Demand: Despite opening last year, FunCity Turf is booked nearly every weekend, especially in the winter months, for tournaments. Weekdays are filled with organized practices and games. FunCity Courts are planned to host over two dozen basketball, volleyball, and pickleball tournaments and leagues for the 2024-2025 season. FunCity Courts are located at the FunCity Resort and Casino and is utilized by local athletes, SCC students, and weekend tournaments. Page 144 of 959 73 Comparative Market Analysis Benchmarking – Facility Development The balance of this subsection will provide a benchmarking analysis across the case study facilities and where applicable, Schmitt Island. As shown at right, the development size, cost, and locational attributes are compared across each case study. TBK Bank Sports Complex covers the largest footprint and was also the most expensive facility. Despite the high cost, an expansion is still underway and nearby development has been catalyzed by the complex. FunCity Courts and FunCity Turf is located furthest away from an international airport and has the lowest number of nearby hotel rooms. This may suggest that primary users are locals, but this could also be a frequent drive-to destination with the FunCity Resort attached to FunCity Courts. This is also a newer facility, and more hotel development may follow. Page 145 of 959 74 Comparative Market Analysis Benchmarking – Athletic Surfaces To understand the athletic surface offerings at each facility, the number of hard courts, fields, diamonds, and ice sheets are benchmarked at right. The courts are counted as basketball courts, meaning this number often doubles in terms of volleyball courts. Fields are any multipurpose grass or turf rectangle, indoor or outdoor. It is important to note that there is a seasonal arena at the Community First Champion Center that is either an arena or can be transitioned into 4 basketball courts (6 volleyball courts) depending on the time of year. This type of multifunctionality running parallel to sports seasons may be an effective design consideration for improvements on Schmitt Island. Pickleball courts, sand volleyball courts, and other additional amenities are also featured across these facilities. Page 146 of 959 75 Comparative Market Analysis Benchmarking – Placer.ai Placer.ai collects geolocational data from mobile devices and extrapolates that data to provide site traffic analyses. Total visitation, average dwell time, visitor frequency, and visitor origin were analyzed for the entire year of 2023. Schmitt Island is already an established destination, attracting over 135,000 visitors annually and has the highest reported dwell times and visitor frequency. TBK Bank Sports Complex and the MidAmerican Energy Company RecPlex both attract over 6 times as many visitors, likely due to the volume of tournaments these destinations attract. Schmitt Island falls behind when looking at out of town visitors. Non-local visitors are defined as those traveling to the destination from over 100 miles away, suggesting they may book a hotel room for the visit. If Schmitt Island develops a sports tourism destination that attracts athletic tournaments, it is likely that the percentage of non-local visitors will increase. Furthermore, as shown on the bottom right graph, TBK Bank Sports Complex has attracted over 18,000 visits from the Dubuque market in the last 12 months. *Visitors to Facility from Nov 1, 2023 - Nov 1, 2024 Source: Placer.AI, Johnson Consulting MidAmerican Energy Company RecPlex West Des Moines, IA FunCity Courts & FunCity Turf Burlington, IA TBK Bank Sports Complex Bettendorf, IA # of Visitors from the Dubuque Metro Area Community First Champion Center Appleton, WI 881 18,201 6,372 3,889 ImOn Arena, McAleece Park, & Petrakis Park Community First Champion Center TBK Bank Sports Complex MidAmerican Energy Company RecPlex FunCity Courts & FunCity Turf 2023 Total Visitation 135,318 592,382 1,421,860 875,335 118,167 Avg. Dwell Time (minutes)213 151 134 129 157 Visitor Frequency*6.4 3.8 4.7 4.4 3.3 2023 % Non-local Visitors**6%14%20%22%24% *Visitor Frequency defined by average times a visitor attends a facility **Defined as visitors traveling from over 100 miles away Source: Placer.ai, Johnson Consulting Placer.ai Data Comparison Page 147 of 959 76 Comparative Market Analysis Benchmarking – 30-Minute Market Analysis The chart at right focuses on the 30-minute radius around each case study facility as well as Schmitt Island. As shown, the comparative markets are somewhat similar as far as age, income, and average household spend on sports. However, Schmitt Island has the 2nd lowest population behind the Burlington market. This suggests that the facility should be designed to serve local demand, but also be oriented for sports tourism to draw in users from a larger catchment area. Page 148 of 959 77 Comparative Market Analysis Benchmarking – 90-Minute Market Analysis When expanding the market analysis to a 90-minute radius around each case study site and Schmitt Island, Schmitt Island comes in above average for median age, median household income, and average household spend on sports. The total population in the 90-minute market also exceeds 1.2 million residents, significantly expanding the pool of users a sports development on Schmitt Island may draw from. Page 149 of 959 78 Comparative Market Analysis Implications The color-coded ranking matrix on this page illustrates a high-level overview of key attributes when considering a sports complex oriented for sports tourism. As shown, the two facilities in Burlington, FunCity Courts and FunCity Turf are ranked the lowest in market, locational, and tournament attributes. Burlington is top-ranked for non- local visitors, but this is likely attributed to FunCity Courts being co-located with FunCity Resort, which includes a casino. This proves that a casino paired with a sports complex, which Schmitt Island has the ability to leverage, may attract more overnight visitors. The other three case studies rank higher than Schmitt Island as far as locational and tournament attributes. Community First Champion Center, TBK Bank Sports Complex, and MidAmerican Energy Company are all located much closer to an international airport and hotel clusters as compared to Schmitt Island and the FunCity facilities. Further, while Schmitt Island or Dubuque does not currently have a high capacity for tournaments, especially indoor, there is substantial acreage on Schmitt Island that may offer a development opportunity for additional indoor surfaces. However, there is also a gap in the market for more high-quality diamonds. The four baseball/softball diamonds on Schmitt Island may be able to host baseball/softball tournaments, but there are opportunities for facility improvement to attract more regional events, but factors such as a hotel supply may be a limiting condition. Market research and stakeholder engagement suggest that there is desire and demand for more athletic surfaces in Dubuque, and becoming a preeminent destination for one or two sports, similar to the models at TBK Bank Sports Complex and Community First Champion Center. Page 150 of 959 79 Comparative Market Analysis Implications The case study facilities were largely financed through partnerships, such as public-private-partnerships with the local municipality. Funding strategies used include hotel tax, TIFs, city bonds, local options sales tax, loans, grants and donations. Another way to fund ongoing operations of a facility is naming rights, of which all four case studies have taken advantage. ImOn Arena on Schmitt Island has already been able to attract a naming rights sponsor and has historically partnered with the City of Dubuque for capital improvements. Communities view sports complexes as local assets but also as economic development catalysts, resulting in government appetite to partner with other entities to develop these projects in their communities. Another key takeaway from the case studies, namely Community First Champion Center, is multifunctionality and flexibility. The seasonal arena at Community First Champion Center allows for an ice sheet during hockey season or additional indoor courts during off-peak ice seasons. This model should be considered when proposing improvements for ImOn Arena in Schmitt Island as there is demand for more ice, but the space can also be utilized in the off -season for other sports or non-sporting events. Success across the case studies and sports complexes nationwide typically relates back to the ability to attract events and host tournaments at the facility, while also serving as a community amenity. A new sports and recreation development on Schmitt Island should be high quality and designed with sports tourism in mind in order to program the facility on the weekends and maintain a revenue stream, but also be accessible to the community on weekdays for single surface rentals for organized practice and games. Page 151 of 959 4. Program Recommendations Page 152 of 959 81 Program Recommendations Overview The Consulting Team has conducted market research, analyzed local and national sports trends, and engaged with the community and local sports organizations in order to evaluate what the Dubuque market can support in regards to sports and recreation. Furthermore, the Consulting Team assessed the site on Schmitt Island to determine what is the most logical development based on the site, market needs, and the opportunity to influence sports tourism in Dubuque. Overall, there is a high level of demand for additional athletic facilities across all sports in Dubuque. Participation rates and the propensity to spend on sports are both projected to increase, but the market is lacking a sufficient number of quality athletic surfaces to support the existing and future demand. Based on sports participation trends and input from local users, there is an inclination towards indoor sports such as basketball, volleyball, and hockey. While other sports such as baseball and softball are reported to be nationally trending down, there is a recognized need for quality baseball and softball diamonds in Dubuque to serve the local school district and higher educational institutions. When considering development on Schmitt Island, there is the advantage of leveraging the existing destination. Not only are there existing athletic offerings on Schmitt Island, including ImOn Arena, McAleece Park & Recreation Complex, and Petrakis Park, the site also offers the Q Casino, a hotel, marina, and planned family entertainment offerings. Schmitt Island is the type of development that traditionally supports sports complexes nationally, offering amenities for daily and overnight visitors. Also, while there is an identified need for quality baseball and softball facilities in Dubuque, it is the judgement of the Consulting Team that due to site constraints, the most appropriate sports and recreation development on Schmitt Island should be based in indoor athletic programming, despite the existing baseball and softball diamonds on site at McAleece Park & Recreation Complex and Petrakis Park. Page 153 of 959 82 Program Recommendations Overview (Continued) On the other hand, there are potential risks when considering a sports and recreation development in Dubuque, and furthermore on Schmitt Island. For example, the hotel supply in the market may be a limiting condition for tournaments and attracting overnight visitors, as most tournament holders require room blocks for their participants and spectators. Additionally, there are existing parking limitations on the Schmitt Island site, which will have to be addressed in order to absorb the projected increased traffic to the site. Other than support infrastructure such as hotel rooms and parking, there are a few factors that will be key to the development and ongoing success of this project, such as exploring partnership opportunities. It will be important to develop the appropriate partnerships for financing, operating, and programming a new sports development on Schmitt Island. Furthermore, the orientation and success of this development will fall under two primary buckets: community use and sports tourism. While the majority of programming for sports tourism will occur on the weekends, the community will be utilizing the facility on weekdays. Base on input from existing local sports participants, there may be a paradigm shift relevant to the rental model that will be required to support a tournament quality facility. Despite these challenges, there is arguably a more significant risk of not developing a sports tourism quality facility in Dubuque, which would result in the persistence of a gap in the local market for athletic facility offerings and the continuation of sports tourism dollars being leaked into other markets. In achieving the goal of evaluating potential sports and recreation development scenarios for the Dubuque market and further, on Schmitt Island, the following Scenarios A-F were assessed. Each scenario was considered in relation to the market demand, feasibility, and viability of development on Schmitt Island. Page 154 of 959 83 Program Recommendations Schmitt Island Development Scenarios Scenario A: Maintaining the site on Schmitt Island including ImOn Arena, McAleece Park & Recreation Complex, and Petrakis Park as-is. The Consulting Team has concluded that there is a strong market opportunity for a facility in Dubuque and on Schmitt Island and there is an abundance of need for additional athletic facilities across all sports. Not developing a sports and recreation complex would be a missed opportunity for the market. Page 155 of 959 84 Program Recommendations Schmitt Island Development Scenarios Scenario B: Developing a small sports complex in addition to ImOn Arena as well as improving the existing baseball and softball diamonds at McAleece Park & Recreation Complex and Petrakis Park. This scenario also plans for a future expansion of ice at ImOn Arena. One goal of the sports and recreation development on Schmitt Island is to encourage year-round site activation. Due to the seasonal limitations of baseball and softball, there will be less site activation as a result of baseball and softball programming compared to indoor sporting events. This scenario also restricts the capability of developing a full-fledged multipurpose indoor facility as there are only 4 basketball courts in this scenario. Page 156 of 959 85 Program Recommendations Schmitt Island Development Scenarios Scenario C: A focus on the fields with improvements and upgrades to two of the existing baseball and softball diamonds at McAleece Park & Recreation Complex and Petrakis Park and converting the other two diamonds into multipurpose fields. No improvements to ImOn Arena. Similarly to Scenario B, while there is an identified need in the community for improved baseball and softball diamonds, Scenario C will result in a challenge to stimulate year-round foot traffic to the site compared to an indoor facility. While there is demand for quality baseball and softball diamonds in Dubuque, it is of the judgement of the Consulting Team that baseball and softball diamonds may not be the highest and best use of the Schmitt Island site. Further, this Scenario does not include upgrades or expansion plans to ImOn Area, resulting in the persistence of an unmet demand in the market for indoor athletic space. Page 157 of 959 86 Program Recommendations Schmitt Island Development Scenarios Scenario D: A full indoor sports court and turf complex buildout on one existing baseball/softball diamond at McAleece Park & Recreation Complex and Petrakis Park while preserving and upgrading the other three diamonds. There will also be an addition to ImOn Arena to develop one seasonal ice sheet that has the capability to transition from ice to courts or turf during the off-season for ice sports. The size and scale of this development scenario may be too robust for the Dubuque market and the regional draw for indoor turf may be limited. Scenario D would also require the displacement of one of the existing baseball and softball diamonds at McAleece Park & Recreation Complex and Petrakis Park and a relocation effort would be necessary in order to continue to serve key user groups. Page 158 of 959 87 Program Recommendations Schmitt Island Development Scenarios Scenario E: A large indoor sports complex on two of the four existing baseball and softball diamonds at McAleece Park & Recreation Complex and Petrakis Park. One baseball diamond and one softball diamond would be maintained and improved and one seasonal ice sheet that has the capability to transition from ice to courts or turf during the off -season for ice sports would be added to ImOn Arena. The Consulting Team considers this scenario to be the most appropriate for the market opportunity and feasibility of development on Schmitt Island due to the development of the additional ice sheet and volume of indoor court space. However, due to the cost associated with two separate facilities, this scenario would likely only be viable if key baseball and softball diamond users are project partners, such as the local school district and higher education institutions. Page 159 of 959 88 Program Recommendations Schmitt Island Development Scenarios Scenario F: A small indoor sports complex and one seasonal ice sheet that has the capability to transition from ice to courts or turf during the off-season for ice sports, both attached to ImOn Arena. One baseball diamond and one softball diamond would be maintained and improved at McAleece Park & Recreation Complex and Petrakis Park while the other two diamonds will transition to multipurpose outdoor fields. Scenario F, while limited by not developing a full-fledged indoor facility and necessitating key baseball and softball programming partners, this scenario is likely the most viable for not only the Dubuque market, but particularly for the Schmitt Island development site. This scenario addresses the local need for additional athletic surfaces without fully displacing the baseball and softball facilities on Schmitt Island, and enabling the site to attract indoor athletic tournaments without overloading site capacity Page 160 of 959 89 Program Recommendations Observations It is of the opinion of the Consulting Team that Scenarios A-C are the least effective options to achieve the goal of catalyzing Sports Tourism in the market. Due to the limitations of the baseball/softball season, existing regional facilities, and other proximate developments in the pipeline, it is suggested that other athletic surfaces, such as multipurpose indoor and ice, be the focus of a new sports complex in Dubuque. While there is a demand for baseball and softball facilities in Dubuque, Schmitt Island is not the ideal site, and an indoor sports and recreation complex is more logical to be located on Schmitt Island. Looking through the lens of sports tourism, the Consulting Teams views Scenarios D-F as the most viable options to advance the sports tourism market in Dubuque. There is a strong case for additional indoor surfaces such as indoor courts and ice. Existing facilities that are offered in Dubuque are often unavailable for use due to availability and quality challenges. Further, Scenario F is positioned to be the highest and best use of the site on Schmitt Island to develop a sports and recreation complex to serve local demand while also attracting regional and national events to the market. This scenario preserves the baseball/softball diamonds to allow for continued use by key user groups, while also developing an indoor complex with a seasonal arena to expand local utilization and event opportunity. This will result in year-round site activation from all sports programming without putting strain on the site limitations. From a financial feasibility standpoint, Scenario F is a culmination of the research conducted by the Consulting Team to right-size the business model to be viable from both community and sports tourism perspectives. Overall, the outcome of the market analysis makes a strong case for programming for indoor courts and ice on Schmitt Island. One challenge for indoor courts may be the price elasticity of the market and the practicality of local users shifting to higher rental rates. Further, there will be operational cost savings for a development additional ice sheet, suggesting that if the development approach were to be phased, ice should be the primary focus. In the vein of viability, leveraging public-private partnerships will be essential for an improved sports and recreation destination on Schmitt Island from development to operations. Beyond Schmitt Island, this project should catalyze community-wide economic development, such as the growth in hotel room supply and other supporting infrastructure in response to the projected increased market visits. Page 161 of 959 5. Demand Projections, Economic & Fiscal Impacts, and Funding Strategies Page 162 of 959 5.1 Demand Projections Page 163 of 959 92 Demand Projections Overview To properly estimate the potential demand for a new indoor sports complex, the historical operations at existing athletic facilities, including ImOn Arena, were extensively analyzed in order to understand the existing conditions. The historical operation data was then used to develop recommendations relative to the proposed facility’s program (e.g., number of surfaces, community space, and other amenities). Based upon this program, and considering the historical and existing demand, we projected demand at an expanded indoor facility. Johnson Consulting is of the opinion that many of the projected utilization levels as well as rental rates assumed are fairly conservative and in line with this conceptual planning phase of the proposed development. The following subsection will provide separate demand projections for the additional ice sheet at ImOn Arena and the indoor sports complex expansion. Key Assumptions It is important to note that prior to reviewing the following projections, a set of initial assumptions had to be made in order to properly form a business plan for the proposed indoor sports complex on Schmitt Island. The following demand projections are based on the programming recommendations from the Consulting Team, which includes adding an additional seasonal ice sheet to ImOn Arena and an indoor court facility expansion that includes 6 basketball courts. For the purpose of this analysis, Johnson Consulting assumed that: •Schmitt Island, and further, the existing ImOn Arena building, is the development site. • All existing contracts and agreements with ImOn Arena will be renegotiated. •A public-private partnership will be leveraged for development. •A third-party operator will oversee daily operations. Page 164 of 959 93 Demand Projections It often takes time for facilities to reach maximum utilization levels, but as this development is building off of an already established destination on Schmitt Island at ImOn Arena, the complex will be a distinguished regional asset. During the first few years of operations, there will be a need for an in-house promoter, local sports organizations, and the facility manager to target tournaments and promote rentals, especially for the indoor court space. Establishing a presence in the growing indoor sports facility market will be important in nurturing what effectively amounts to a new market niche for the City of Dubuque and the greater region, as there is not a similar facility within a 90-minute drive of the project site. With this development, the demand profile at the indoor complex will, over time, increase in volume and improve in quality. The following demand sectors can be expected: Tournaments – Based upon interviews with local industry professionals, there are currently insufficient facilities in the area to host local and regional winter indoor tournaments particularly for hockey, basketball, and volleyball. The addition of a new facility with greater capacity and amenities is perceived to have the ability to attract regional youth sport associations. In addition, the location of the hotels and family entertainment infrastructure will encourage overnight visits by attendees, generating additional room nights and increasing the economic impact in the surrounding area. League Play – The indoor ice and multipurpose sports complex will be a natural fit for local league play, which will generate weekday demand that may not otherwise be filled through tournament play. Both youth and adult leagues are suitable for the facility. In order to ensure a seamless integration into the market, the facility should work to expand existing leagues that are short on ice and indoor court space. There is already an established league calendar for ImOn Arena, which is expected to grow with the additional sheet of ice. Camps/Clinics/Lessons/Practice – Similar to tournaments and leagues, camps, and clinics can either be held by outside promoters that rent the facility to hold the event, or held in-house with participants charged an entrance fee. Camps are currently offered by some local facilities, but the size and quality of the new facility will enable it to handle larger camps and sports festivals that could possibly draw from a larger market as well. These types of events can expect to last three-to-four days and draw professional athletes and coaches as instructors. Lastly, the facility can be made available to Dubuque Public Schools and local higher educational institution’s sports teams that are in need of indoor ice and court space. Page 165 of 959 94 Demand Projections Skills Training – Another type of event that could be used to maximize use of the facility is skills training sessions. Skills training would draw demand from those already using the facility for other events. This event type would likely consist of hour-long rentals that can be offered during downtime at the facility during the week when there is no league play. This training can be for both the ice as well as courts, depending on the type of sports. Consumer Shows – Regionally, there seems to be limited opportunity for such events; however, hosting occasional consumer shows and festivals will act as ‘filler’ for weekends when demand for tournaments and other sports-related functions are low due to seasonality. Ideally, the promotional arm of the facility would take an active role in attracting and developing consumer shows and festivals at the venue. Consumer shows would target more of a local attendance base, offering home improvement and other related types of shows. This event type will generate most of its room night demand from exhibitors and has proven successful in sports facilities similar to the one proposed. Festivals and Other Events – In addition to the above events, the facility could also serve as a venue for corporate rentals, parties, shows and community events. The indoor facility would be able to further maximize the number of event days by hosting other non-sports related events to fully utilize the facility during off -season periods of the year. The sports complex will not compete with the current event venues in Dubuque, but rather host events that cannot be accommodated anywhere else during non-peak season. Page 166 of 959 95 Demand Projections Events & Attendance The table at right presents a projected event demand calendar for the indoor sports complex and ice arena’s first 10 years of operations. As is common with these types of facilities, demand is expected to ramp up and reach stabilization in Year 5. The primary driver of events will be new demand currently unable to be accommodated at existing facilities. As shown, in Year 5, there is projected to be 209 annual events and 126,561 total attendees, including both participants and spectators. Multipurpose Indoor Sports Complex & Ice Arena Complex - Dubuque, IA Events & Attendance Year 5 (Stabilization) Participant Spectator Total Activity Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Attendance Attendance Attendance Tournaments - Regional Ice Sports 5 6 6 7 7 7 7 7 7 7 4,200 8,400 12,600 Basketball 3 4 5 5 5 5 5 5 5 5 5,000 12,500 17,500 Volleyball 5 6 7 8 8 8 8 8 8 8 4,000 10,000 14,000 Wrestling 2 2 3 3 3 3 3 3 3 3 1,200 3,000 4,200 Pickleball 4 5 5 6 6 6 6 6 6 6 6,000 15,000 21,000 Gymnastics 1 2 2 2 2 2 2 2 2 2 2,000 5,000 7,000 Cheer 1 1 1 1 1 1 1 1 1 1 1,000 2,500 3,500 Other (Martial Arts, Judo/Jiu Jitsu)1 2 2 2 2 2 2 2 2 2 900 2,250 3,150 Tournaments - Local Ice Sports 7 8 8 9 9 9 9 9 9 9 2,700 5,400 8,100 Basketball 3 4 5 5 5 5 5 5 5 5 3,000 6,000 9,000 Volleyball 1 2 2 2 2 2 2 2 2 2 600 1,200 1,800 Wrestling 0 0 0 0 0 0 0 0 0 0 0 0 0 Pickleball 3 4 5 5 5 5 5 5 5 5 1,250 2,500 3,750 Gymnastics 0 0 0 0 0 0 0 0 0 0 0 0 0 Cheer 0 0 0 0 0 0 0 0 0 0 0 0 0 Other (Martial Arts, Judo/Jiu Jitsu)1 1 1 1 1 1 1 1 1 1 225 450 675 Leagues Ice Sports 62 70 74 78 82 82 82 82 82 82 6,888 6,888 13,776 Basketball 8 10 12 13 13 13 13 13 13 13 2,600 2,600 5,200 Volleyball 8 10 12 13 13 13 13 13 13 13 1,300 1,300 2,600 Wrestling 0 0 0 0 0 0 0 0 0 0 0 0 0 Gymnastics 2 2 3 3 3 3 3 3 3 3 600 600 1,200 Cheer 3 4 5 5 5 5 5 5 5 5 1,500 1,500 3,000 Other (Martial Arts, Judo/Jiu Jitsu)0 0 0 0 0 0 0 0 0 0 0 0 0 Camps/ Clinics/ Lessons Ice Sports 6 7 7 8 8 8 8 8 8 8 600 600 1,200 Basketball 3 4 5 5 5 5 5 5 5 5 250 250 500 Volleyball 3 4 5 5 5 5 5 5 5 5 250 250 500 Wrestling 1 2 2 2 2 2 2 2 2 2 100 100 200 Pickleball 3 3 4 4 4 4 4 4 4 4 200 200 400 Gymnastics 1 1 1 1 1 1 1 1 1 1 50 50 100 Cheer 2 2 3 3 3 3 3 3 3 3 150 150 300 Other (Martial Arts, Judo/Jiu Jitsu)5 5 6 7 7 7 7 7 7 7 175 175 350 Special Events Special/Community/Miscellaneous Events 1 2 2 2 2 2 2 2 2 2 3,000 0 3,000 Total 145 172 193 205 209 209 209 209 209 209 45,818 80,743 126,561 Source: Johnson Consulting Page 167 of 959 5.2 Economic & Fiscal Impact Analysis Page 168 of 959 97 Economic & Fiscal Impact Analysis Overview Economic Impact is defined as incremental new spending in an economy that is the direct result of certain activities, facilities, or events. For the purpose of this analysis, impact totals are discussed in terms of the Dubuque economy. The levels of impacts are described as follows: Direct Spend – spending that occurs as a direct result of the facility’s operation (example: attendee purchases meal at restaurant nearby). Indirect Spend – re-spending of the initial direct expenditures on goods and services (example: restaurant purchases more food from supplier). Induced Spend – changes in local consumption due to the personal spending by employees whose incomes are supported by direct and indirect spending (example: waiter at the restaurant has more personal income to spend). Increased Earnings – measures increased employee and worker compensation related to the facility’s operation. Employment – measures the number of full-time equivalent (FTE) jobs supported in the local economy as a result of the facility’s operation. Fiscal Impact – reflects tax revenues to local and state governments that result from the facility’s operation. Page 169 of 959 98 Economic & Fiscal Impact Analysis Rates The table on the upper right summarizes the multiplier rates utilized in the economic impact estimates to calculate indirect spending, induced spending, increased earnings, and employment. These multiplier rates are derived from an IMPLAN input- output model, which is a nationally recognized analytical tool commonly used to estimate economic impacts. An input-output model analyzes the commodities and income that normally flow through various sectors of the economy. Tax Rates The table on the bottom right summarizes the applicable tax rates utilized in the fiscal impact estimates. They focus on the taxes directly affected by visitors’ spending activities: •General Sales Tax – is 7.0 percent total, which includes State sales tax at 6 percent and County sales tax at 1.0 percent. There is no City sales tax. •Hotel/ Motel Tax – is applied to hotel room sales, in addition to Sales and Use Tax . Transient Occupancy Tax is 7.0 percent. Multipurpose Indoor Sports Complex & Ice Arena Complex - Dubuque, IA Economic Impact Multilpiers Impact Multiplier Base Indirect Spending 0.2327 per $1 of direct spending Induced Spending 0.1950 per $1 of direct spending Increased Earnings 0.2693 per $1 of direct spending Increased Employment 13.2444 per $1 million of direct spending Source: Johnson Consulting Multipurpose Indoor Sports Complex & Ice Arena Complex - Dubuque, IA Applicable Tax Rates Rate General Sales Tax State Sales Tax 6.0%of total spending County Sales Tax 1.0%of total spending Total 7.0% Hotel Occupancy Tax County TOT 7.0%of spending on lodging Source: IA Dept. of Revenue Page 170 of 959 99 Economic & Fiscal Impact Analysis Estimated Regional Impacts – Multipurpose Indoor Sports Complex The table at right summarizes the estimated activity and spending volume at the proposed indoor sports complex for regional events. Regional and special events, unlike local events, are assumed to attract overnight visitors, resulting in lodging tax revenues, meals, and other expenses, for these events. As shown, in Year 5, the complex is estimated to generate 35,175 room nights, generate $14.3 million in total spending, 133 jobs, $2.7 million in increased earnings, and $1 million in total tax revenues from sales and lodging taxes. Multipurpose Indoor Sports Complex - Dubuque, IA Economic and Fiscal Impacts - Regional Tournaments / Special Events Assumptions Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Activity Volume # of Events*18 24 27 29 29 29 29 29 29 29 Attendance Participants 12,476 16,634 18,714 20,100 20,100 20,100 20,100 20,100 20,100 20,100 Spectators 31,190 41,586 46,784 50,250 50,250 50,250 50,250 50,250 50,250 50,250 Total 43,666 58,221 65,498 70,350 70,350 70,350 70,350 70,350 70,350 70,350 Length of Stay 2.5 Nights Est. Room Nights (assumes double occupancy)Ratio Of Participants 40.0%6,238 8,317 9,357 10,050 10,050 10,050 10,050 10,050 10,050 10,050 Of Spectators 40.0%15,595 20,793 23,392 25,125 25,125 25,125 25,125 25,125 25,125 25,125 Total 21,833 29,110 32,749 35,175 35,175 35,175 35,175 35,175 35,175 35,175 Est. Spending Volume ($000) On Lodging $120.00 / RN $2,620 $3,581 $4,129 $4,546 $4,659 $4,776 $4,895 $5,017 $5,143 $5,271 On Meals and Incidentals $69.00 / P 3,013 4,118 4,748 5,227 5,358 5,492 5,629 5,770 5,914 6,062 Total Direct Spending $5,633 $7,698 $8,877 $9,773 $10,017 $10,268 $10,524 $10,788 $11,057 $11,334 Economic Impact ($M)Multipliers Direct Spending $5.6 $7.7 $8.9 $9.8 $10.0 $10.3 $10.5 $10.8 $11.1 $11.3 Indirect Spending 0.2327 1.3 1.8 2.1 2.3 2.3 2.4 2.4 2.5 2.6 2.6 Induced Spending 0.1950 1.1 1.5 1.7 1.9 2.0 2.0 2.1 2.1 2.2 2.2 Total Spending $8.0 $11.0 $12.7 $14.0 $14.3 $14.7 $15.0 $15.4 $15.8 $16.2 Increased Earnings 0.2693 $1.5 $2.1 $2.4 $2.6 $2.7 $2.8 $2.8 $2.9 $3.0 $3.1 Employment (FTE jobs)13.2444 75 102 118 129 133 136 139 143 146 150 Fiscal Impact ($000)Rate State Sales Tax 6.00%$0.3 $0.5 $0.5 $0.6 $0.6 $0.6 $0.6 $0.6 $0.7 $0.7 County Sales Tax 1.00%0.06 0.08 0.09 0.10 0.10 0.10 0.11 0.11 0.11 0.11 County TOT 7.00%0.2 0.3 0.3 0.3 0.3 0.3 0.3 0.4 0.4 0.4 Total $0.6 $0.8 $0.9 $1.0 $1.0 $1.1 $1.1 $1.1 $1.1 $1.2 Source: Johnson Consulting Page 171 of 959 100 Economic & Fiscal Impact Analysis Total Economic Impact – Multipurpose Indoor Sports Complex The table below summarizes the estimated spending volume at the proposed indoor sports complex for local, regional, and special events combined. As shown, in Year 5, the sports complex is estimated to generate $16.6 million in total spending, 154 jobs, $3.1 million in increased earnings, and $1.1 million in total tax revenues. Multipurpose Indoor Sports Complex - Dubuque, IA Economic and Fiscal Impacts - Local and Regional Tournaments / Special Events Assumptions Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Economic Impact ($M)Multipliers Direct Spending $6.8 $9.0 $10.3 $11.3 $11.6 $11.9 $12.2 $12.5 $12.8 $13.2 Indirect Spending 0.2327 1.6 2.1 2.4 2.6 2.7 2.8 2.8 2.9 3.0 3.1 Induced Spending 0.1950 1.3 1.8 2.0 2.2 2.3 2.3 2.4 2.4 2.5 2.6 Total Spending $9.7 $12.9 $14.7 $16.1 $16.6 $17.0 $17.5 $17.9 $18.3 $18.8 Increased Earnings 0.2693 $1.8 $2.4 $2.8 $3.0 $3.1 $3.2 $3.3 $3.4 $3.5 $3.5 Employment (FTE jobs)13.2444 90 120 136 150 154 158 162 166 170 174 Fiscal Impact ($000)Rate State Sales Tax 6.00%$0.4 $0.5 $0.6 $0.7 $0.7 $0.7 $0.7 $0.8 $0.8 $0.8 County Sales Tax 1.00%0.07 0.09 0.10 0.11 0.12 0.12 0.12 0.13 0.13 0.13 County TOT 7.00%0.2 0.3 0.3 0.3 0.3 0.3 0.3 0.4 0.4 0.4 Total $0.7 $0.9 $1.0 $1.1 $1.1 $1.2 $1.2 $1.2 $1.3 $1.3 Source: Johnson Consulting Page 172 of 959 101 Economic & Fiscal Impact Analysis Construction Impacts – Multipurpose Indoor Sports Complex The estimated hard cost of construction of the indoor sports complex, as provided by RDG, is approximately $20 million. The one-time construction impact of this development is projected to generate 370 jobs, $10.3 million in total spending, and $720,000 in total tax revenues. Multipurpose Indoor Sports Complex - Dubuque, IA Estimated One-Time Construction Impact- Indoor Multiplier or Tax Rate Amount Est. Hard Costs for Development $20,000,000 Impact on Construction Jobs % of Costs Spent on Labor 55.0% Labor Costs $11,000,000 Average Construction Laborer Salary $30,000 # of On-Site Construction Jobs 370 ✓ Economic Impact % of Costs Spent on Material 45.0% Material Costs $9,000,000 % Spent Locally 80.0% Direct Construction Spending $7,200,000 Indirect Spending 0.23 1,680,000 Induced Spending 0.20 1,400,000 Total Spending $10,280,000 ✓ Increased Earnings 0.27 $1,940,000 ✓ Employment (in FTE Jobs)13.24 100 ✓ Fiscal Impact Sales Tax 7.00%$720,000 Total $720,000 ✓ Source: Johnson Consulting Page 173 of 959 102 Economic & Fiscal Impact Analysis Estimated Regional Impacts – Ice Arena Complex The table at right summarizes the estimated activity and spending volume at the proposed ice arena complex for regional events. Regional and special events, unlike local events are assumed to attract overnight visitors, resulting in lodging tax revenues, meals, and other expenses, for these events. As shown, in Year 5, the ice arena complex is estimated to generate 11 ,644 room nights, generate $4.5 million in total spending, 41 jobs, $800,000 in increased earnings, and $300,000 in total tax revenues from sales and lodging taxes. Ice Arena Complex - Dubuque, IA Economic and Fiscal Impacts - Regional Tournaments / Special Events Assumptions Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Activity Volume # of Events*12 14 14 16 16 16 16 16 16 16 Attendance Participants 5,175 6,038 6,038 6,900 6,900 6,900 6,900 6,900 6,900 6,900 Spectators 10,350 12,075 12,075 13,800 13,800 13,800 13,800 13,800 13,800 13,800 Total 15,525 18,113 18,113 20,700 20,700 20,700 20,700 20,700 20,700 20,700 Length of Stay 2.5 Nights Est. Room Nights (assumes double occupancy)Ratio Of Participants 45.0%2,911 3,396 3,396 3,881 3,881 3,881 3,881 3,881 3,881 3,881 Of Spectators 45.0%5,822 6,792 6,792 7,763 7,763 7,763 7,763 7,763 7,763 7,763 Total 8,733 10,188 10,188 11,644 11,644 11,644 11,644 11,644 11,644 11,644 Est. Spending Volume ($000) On Lodging $120.00 / RN $1,048 $1,253 $1,284 $1,505 $1,542 $1,581 $1,620 $1,661 $1,702 $1,745 On Meals and Incidentals $69.00 / P 1,071 1,281 1,313 1,538 1,577 1,616 1,656 1,698 1,740 1,784 Total Direct Spending $2,119 $2,534 $2,598 $3,043 $3,119 $3,197 $3,277 $3,359 $3,443 $3,529 Economic Impact ($M)Multipliers Direct Spending $2.1 $2.5 $2.6 $3.0 $3.1 $3.2 $3.3 $3.4 $3.4 $3.5 Indirect Spending 0.2327 0.5 0.6 0.6 0.7 0.7 0.7 0.8 0.8 0.8 0.8 Induced Spending 0.1950 0.4 0.5 0.5 0.6 0.6 0.6 0.6 0.7 0.7 0.7 Total Spending $3.0 $3.6 $3.7 $4.3 $4.5 $4.6 $4.7 $4.8 $4.9 $5.0 Increased Earnings 0.2693 $0.6 $0.7 $0.7 $0.8 $0.8 $0.9 $0.9 $0.9 $0.9 $1.0 Employment (FTE jobs)13.2444 28 34 34 40 41 42 43 44 46 47 Fiscal Impact ($000)Rate State Sales Tax 6.00%$0.1 $0.2 $0.2 $0.2 $0.2 $0.2 $0.2 $0.2 $0.2 $0.2 County Sales Tax 1.00%0.02 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.04 County TOT 7.00%0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 Total $0.2 $0.3 $0.3 $0.3 $0.3 $0.3 $0.3 $0.4 $0.4 $0.4 Source: Johnson Consulting Page 174 of 959 103 Economic & Fiscal Impact Analysis Total Economic Impact – Multipurpose Indoor Sports Complex The table below summarizes the estimated spending volume at the proposed ice arena complex for local, regional, and special events combined. As shown, in Year 5, the ice arena complex is estimated to generate $5.7 million in total spending, 53 jobs, $1.1 million in increased earnings, and $600,000 in total tax revenues. Ice Arena Complex - Dubuque, IA Economic and Fiscal Impacts - Local and Regional Tournaments / Special Events Assumptions Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Economic Impact ($M)Multipliers Direct Spending $2.9 $3.3 $3.4 $3.9 $4.0 $4.1 $4.2 $4.3 $4.4 $4.5 Indirect Spending 0.2327 0.7 0.8 0.8 0.9 0.9 0.9 1.0 1.0 1.0 1.0 Induced Spending 0.1950 0.6 0.6 0.7 0.8 0.8 0.8 0.8 0.8 0.9 0.9 Total Spending $4.1 $4.8 $4.9 $5.5 $5.7 $5.8 $6.0 $6.1 $6.3 $6.4 Increased Earnings 0.2693 $0.8 $0.9 $0.9 $1.0 $1.1 $1.1 $1.1 $1.2 $1.2 $1.2 Employment (FTE jobs)13.2444 38 44 45 51 53 54 55 57 58 60 Fiscal Impact ($000)Rate State Sales Tax 6.00%$0.2 $0.2 $0.2 $0.2 $0.2 $0.2 $0.3 $0.3 $0.3 $0.3 County Sales Tax 1.00%0.03 0.03 0.03 0.04 0.04 0.04 0.04 0.04 0.04 0.05 County TOT 7.00%0.2 0.2 0.2 0.3 0.3 0.3 0.3 0.3 0.3 0.3 Total $0.4 $0.5 $0.5 $0.5 $0.6 $0.6 $0.6 $0.6 $0.6 $0.6 Source: Johnson Consulting Page 175 of 959 104 Economic & Fiscal Impact Analysis Construction Impacts – Ice Arena Complex The estimated hard cost of construction of the ice arena complex, as provided by RDG, is approximately $28 million. The one-time construction impact of this development is projected to generate 510 jobs, $14.4 million in total spending, and $1.01 million in total tax revenues. Ice Arena Complex - Dubuque, IA Estimated One-Time Construction Impact- Indoor Multiplier or Tax Rate Amount Est. Hard Costs for Development $28,000,000 Impact on Construction Jobs % of Costs Spent on Labor 55.0% Labor Costs $15,400,000 Average Construction Laborer Salary $30,000 # of On-Site Construction Jobs 510 ✓ Economic Impact % of Costs Spent on Material 45.0% Material Costs $12,600,000 % Spent Locally 80.0% Direct Construction Spending $10,080,000 Indirect Spending 0.23 2,350,000 Induced Spending 0.20 1,970,000 Total Spending $14,400,000 ✓ Increased Earnings 0.27 $2,710,000 ✓ Employment (in FTE Jobs)13.24 130 ✓ Fiscal Impact General Sales Tax 7.00%$1,010,000 Total $1,010,000 ✓ Source: Johnson Consulting Page 176 of 959 5.3 Funding Strategies Page 177 of 959 106 Funding Strategies Overview This section discussed recent trends in sports complex funding and provides an inventory of potential funding sources and strategies. Funding a sports complex in Dubuque can be approached through various strategies including public funding, private investments, community partnerships, grants, taxing, and other funding tools. There are programs unique to Dubuque, such as the Iowa Economic Authority Sports Tourism Program, which provides financial assistance for projects that market or promote sporting events in Iowa. Further, sports complexes can leverage funding tools that other public facilities may not, such as, anchor tenant agreements and associations with partners such as higher education institutions. Each funding strategy has its own set of requirements, benefits, and potential challenges. A comprehensive approach that combines multiple funding sources is likely to increase the financial viability of financing a project. Page 178 of 959 107 Funding Strategies Case Study: Community First Champion Center The Community First Champion Center opened in 2019. The facility is owned by the Town of Grand Chute and is managed by the Fox Cities Sports Development Inc. The 164,000 SF facility features an ice rink, a seasonal ice rink that converts into four basketball courts, and a fieldhouse with four additional courts. The initial cost of construction in 2019 was $30 million. Development funding came from a 3% hotel tax, which also helped to fund the Fox Cities Exhibition Center. Case Study: TBK Bank Sports Complex TBK Bank Sports Complex opened in 2018 and is privately owned. The 273,000 SF indoor complex features 8 basketball courts and a multipurpose turf field. There are also 4 rectangular fields and 10 baseball/softball diamonds. The development cost $50 million and was primarily funded through private investments and naming rights. There is also a planned $75 million expansion that will be supported through the City of Bettendorf through $5.8 million in grants and a 20-year 75% tax increment finance rebate. Page 179 of 959 108 Funding Strategies Case Study: MidAmerican Energy Company RecPlex The RecPlex was developed through a public-private partnership with the city. The facility opened in 2021 and offers 300,000 SF of indoor space featuring two ice rinks, with plans to build a third, 4 courts, pickleball courts, and indoor turf, in addition to three outdoor multipurpose rectangular fields. The total cost of development was $59.8 million including $16.5 million in city bonds backed by future local option sales tax revenue, $16.4 million in city bonds backed by future hotel-motel tax revenue, $12.4 million in corporate and individual donations and pledges, naming rights, sponsorships, and a mix of other grants, loans and tax revenue. The additional sheet of ice would cost north of $30 million and would be funded through private donations, a bond funded through local option sales tax, and grants. Case Study: Prospect Meadows Sports Complex Prospect Meadows is a 501(c)3 nonprofit organization that developed an 8 baseball/softball diamonds complex on 128 acres in 2019. The $14 million complex was developed through a combination of public and private funding sources. Approximately $5.9 million was raised from private donors, including Perfect Game who serves as an anchor tenant and commits to bringing 1,000 teams annually to the complex for 15 years. Total fundraising efforts amassed $11 .75 million. $5.85 million was secured from public entities, including Linn County and the cities of Marion and Cedar Rapids. Linn County signed a 95- year lease agreement for the 128 acres. Page 180 of 959 109 Funding Strategies Funding Mechanisms There are numerous financing tools used to fund facilities that could be applied to a sports and recreation development in Dubuque. These include: 1.Pay-As-You -Go Financing: Projects that are relatively small or that are financed in municipalities with rapidly growing tax bases are sometimes paid for directly out of appropriated funds each year. However, the majority of facilities are financed with long-term debt so that payment of capital costs corresponds to the period over which the facility is used and its economic benefits are realized. Some portion of the proposed stadium might be paid for out of the City’s general fund, but that portion is likely to make up a small amount of the overall capital stack. 2.General Obligation Bond Financing: Long-term bonding using the general obligation of the City, County, and/ or State either directly as part of a capital outlay program or as guaranteed debt of an authority that would provide strong credit and relatively low borrowing costs. GO bonding is typically reserved for projects perceived to benefit the population as a whole, such as educational, economic development, or transportation, and the proposed complex certainly falls within this category of projects. This is a strong financing option for this project, though it will be important to identify funds which would make sense to service the debt on them. 3.Revenue Bond Financing: Revenue bonds are another source of finance that can be used to build, own, and operate public purpose facilities that have no power to tax. They derive their revenues from user fees and other sources and must finance general and capital expenditures out of these receipts and whatever amount they are permitted to borrow, which can be tailored to fit the specific requirements of the involved local and state governments. 4.Capital Development Funds: Certain public or non-profit organizations have funds devoted specifically to capital development projects. Often these funds are used for smaller, pay-as-you-go type projects, but they can also make up part of the capital stack on a larger project or improvement plan. This could be a viable funding source, though likely a small part of the overall capital stack. Page 181 of 959 110 Funding Strategies Funding Mechanisms 5.Naming Rights & Sponsorships: Sponsorships and particularly naming rights can be a substantial, long-term revenue stream for facilities. Given the proposed facility’s prominence within Dubuque and projected foot traffic, paired with the already established sponsors, this funding source could be significant, though still a relatively minor part of the overall capital stack. 6.Tourism Improvement District (TID): Similar to a traditional Business Improvement District (BID), a TID is a district in which a special assessment is levied on hotel room sales (and sometimes other sales such as tickets, retail, or meals). The money collected is managed by a dedicated non-profit or advisory board, often made up of local tourism industry stakeholders such as hoteliers and restauranteurs, and used to fund destination marketing and development initiatives. This could be viable for this project given its potential to bolster Dubuque’s tourism and hospitality industry. Taxing Mechanisms In addition to the financing tools described above, there are a number of taxing mechanisms that could be used to fund the sports complex, including: 1.Sales Taxes: Sales tax provides a strong credit structure because it is relatively predictable and tends to track with inflation and economic growth. A general sales tax increase, or expansion of the base, can provide a robust incremental revenue stream. However, these taxes are often difficult to implement because they primarily tax local residents and require referendum and/ or State legislative approval. There are examples of municipalities using a general sales tax, over a fixed period, to finance major capital projects. The quick-pay method enables municipalities to generate the necessary revenue over a short period of time, but a general sales tax is a blunt taxing instrument that does not provide a direct correlation between burden and benefit. Page 182 of 959 111 Funding Strategies Taxing Mechanisms 2.Hotel Occupancy Tax : Hotel taxes have the major advantage of primarily taxing out-of-town visitors, rather than local residents. Given that this facility would contribute to generating local hotel stays, a proportionate amount of hotel tax put to its financing would be reasonable. 3.Food and Beverage Tax : Food and beverage taxes have been used throughout the country to support the costs of developing, and renovating, public assembly facilities and to fund related infrastructure. The revenue potential is significant, as the second highest spend occurs on food service, after lodging. Food and beverage taxes are directed towards beneficiaries of the project and to some extent, non-residents. There may be an opportunity to leverage some portion of existing food and beverage tax revenues, or dedicating an additional point to support development and operations of the sports complex. 4.Tax Increment Financing (TIF): TIFs are based on the incremental tax value of ancillary economic development projects that are triggered by a major facility. The tax base of a defined TIF district is frozen and any increases in the future tax base are used to repay TIF bonds. While typically instated prior to construction of a new facility, they can be applied to support capital improvements and ongoing operations. The most powerful TIFs are those based on sales tax but there are many examples of property tax based TIFs throughout the country. This could be applicable to this project, though a district would need to be established. 5.Development Fees / Land Lease Income: Fees for the right to develop projects near a public assembly facility can assist in funding. These so-called linkage fees have been imposed in locations where land adjacent to a public assembly facility is at a premium, typically on hotels, parking decks, retail stores, and other uses that can benefit from their proximity to the facility. Page 183 of 959 Schmitt Island Development & Sports Complex Feasibility Study January 2025 Page 184 of 959 TABLE OF CONTENTS 2 SE C T I O N 2 PAGE 17: Market Assessment & Regional Facility Audit SE C T I O N 1 PAGE 3: Introduction SE C T I O N 3 PAGE 47: Participation Trends & Comparative Market Analysis SE C T I O N 5 PAGE 90: Demand Projections , Economic & Fiscal Impacts, and Funding Strategies SE C T I O N 4 PAGE 80: Market Supportable Program Recommendations Page 185 of 959 1.1 Introduction Page 186 of 959 4 Introduction Transmittal Letter Re: Schmitt Island Development & Sports Complex Market Feasibility Study DRA: C.H. Johnson Consulting, Inc. (Johnson Consulting) is pleased to submit this report to you regarding the Market Feasibility Study for Schmitt Island Development & Sports Complex. Pursuant to our engagement, this report update fulfills the scope of work outlined in the statement of work submitted by Johnson Consulting to The Dubuque Racing Association on June 8th, 2024. Johnson Consulting has no responsibility to update this report for events, plan modifications, 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 projected results and actual results. Because events and circumstances frequently do not occur as expected, those differences may be material. This report is intended for the Client’s 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 Page 187 of 959 5 Introduction Study Introduction & Methodology Johnson Consulting was retained by the Dubuque Racing Association (DRA) to conduct a market feasibility study for a potential sports complex on Schmitt Island. The study aims to foster the ability of the DRA and the City, as well as any local partner organizations, to make informed decisions regarding the development and continuing operation of a complex. The proposal document submitted to the DRA by Johnson Consulting outlines detailed services for the study. Broadly, the objective of this study is to answer the following questions: What do the characteristics of the local market suggest about Schmitt Island/Dubuque’s ability to support this potential complex? What trends within the sports and entertainment industry could impact the project? What is the overall market opportunity for a new sports complex in Dubuque? What approach positions the DRA to advance the planning and development of the project? In order to answer the questions above, Johnson Consulting developed and executed a comprehensive methodology for the study, which is illustrated by the figure on the right. The observations, analysis, and conclusions of the study will be presented throughout the remaining sections of this report. Market Opportunity Assessment Market Analysis Real Estate Analysis Industry Trends Implementation Roadmap Page 188 of 959 6 Introduction Project Overview Schmitt Island is a part of Dubuque which is a mid-sized city in Iowa on the Mississippi river bordering Wisconsin and Illinois. Dubuque has recently focused on tourism as it is able to attract regional visitors partially due to its picturesque bluffs, proximity to the Field of Dreams Movie Site and other local attractions. Schmitt Island’s Q Casino and ImOn Ice Arena serve as entertainment destinations for the city. Schmitt Island also serves the community as a recreation hub as the Ice Arena and four baseball diamonds at McAleece Park provides practice times for local sports organizations. Longstanding plans to further development Schmitt Island have included expanding these two sports related assets to enhance the functionality of the island. Not only would extra or updated fields provide the community with an asset but could potentially serve to attract sports tourism to the island and city. Additionally, any new complex on the island’s south side would pair well with the Q Casino’s updated family entertainment center and amphitheater, further cementing Schmitt Island as a regional destination. Page 189 of 959 1.2 Executive Summary Page 190 of 959 8 Introduction Executive Summary - Market Assessment Johnson Consulting recognizes that sports complexes are crucial to community sports organizations and are highly beneficial to a community’s tourism industry. The Dubuque region lacks any large-scale sports complex and currently the community uses any available inventory of school and park facilities in Dubuque, but these facilities often face challenges with availability and quality. Through our market analysis, stakeholder engagement, industry trends research, and case study research, Johnson Consulting believes that there is an opportunity to introduce a new venue to the Dubuque market with a unique opportunity to serve the area’s residents and visitors. The Dubuque metro area has positive economic indicators such as above average median household income and low unemployment rates. While these factors would indicate future economic growth in Dubuque, the city is losing young families to larger markets. The exodus from Dubuque is partially due to manufacturing jobs leaving the market, but it is also due to the lack of family focused assets, like a sports complex. This is also evident in the region’s below average spending on sports participation fees, which can indicate either a lack of willingness to spend on fees or a lack of facilities on which to spend those dollars. Page 191 of 959 9 Introduction Executive Summary - Facility Audit As seen by the map on the right, the Dubuque region is deficient in all types of major sports facilities. Other metro areas such as Des Moines, Cedar Rapids, the Quad Cities, Chicago or Milwaukee have venues with large concentrations of surfaces which provides assets for the communities and are used to attract large youth sports tournaments. Dubuque’s local organizations rely on school and park courts for practices and games but the lack of surfaces at a single location and the lack of quality surfaces prevents the region from hosting youth sports tournaments. Local organizations indicated that the lack of available surface time prevents the growth of their organizations and inhibits them from hosting regional tournaments. Dubuque’s inability to host youth sports tournaments has led to participants and their families traveling to different markets for tourism, resulting in dollars leaking to other markets for local use and sports tourism. Legend Dubuque # of surfaces Baseball Hockey Basketball Soccer Page 192 of 959 10 Introduction Executive Summary - Stakeholder Engagement Johnson Consulting met with a wide variety of local organizations in order to gauge the level of interest for a new sports complex on Schmitt Island. It is crucial to engage with a wide variety of individuals and organizations throughout the area and industry to better inform the study’s observations and conclusions. The list to the right details to whom Johnson Consulting spoke through the course of the project. •Northern Iowa Community College •Mayor of Dubuque •Miller Development •Court One •City of Dubuque City Manager •City of Dubuque Leisure Services Director •City of Dubuque Director of Office of Shared Prosperity and Neighborhood Support •City of Dubuque Recreation Division Manager •Dubuque Youth Volleyball •Dubuque Senior Saints Hockey •Dubuque Fossils Hockey •Dubuque Fighting Saints Hockey •Loras College Athletic Director and VP Student Services •Holy Family Catholic Schools •ImOn Arena (Dubuque) •University of Dubuque Soccer •Dubuque Soccer Club •Greater Dubuque Development Corp •Dubuque Community Schools •Travel Dubuque •Q Casino •Dubuque Dream Center •Dubuque Figure Skating •Peosta Community Center •Dubuque County Basketball Academy Page 193 of 959 11 Introduction Executive Summary - Sports Participation Trends Specialization has led to a decrease in sports per participant. Athletes are dedicating themselves to one or two sports rather than playing multiple sports. This has led to the increased popularity of club teams that compete in weekend tournaments that often require traveling. Nationally, sports historically dominated by girls (like volleyball, gymnastics and cheerleading) are increasing in popularity in part due to the rise of female sports stars like Caitlin Clark and Simone Biles. Ice sports have also increased their national popularity as the high fixed costs associated with sports like hockey are easier to justify, if an athlete is playing year- round rather than seasonally. Locally, the popularity of sports is often capped by the number of facilities available. Indoor sports and ice sports in Dubuque are capped due to the lack of courts and ice rinks. Additional surfaces would likely grow the popularity of these sports in Dubuque. Source: SFIA, Johnson Consulting Team Sport Participation & Sports Per Participant 132M 132M 130M 132M 133M 133M 132M 130M 126M 126M 129M 136M 2.14 2.06 2.02 1.99 1.94 1.97 1.92 1.84 1.88 1.85 1.82 1.73 0 0.5 1 1.5 2 2.5 3 0 40 80 120 160 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Total Sport Participants Sports Per Participant Page 194 of 959 12 Introduction Executive Summary - Case Studies Johnson Consulting analyzed 4 case studies in order to inform recommendations for a sports and recreation complex in Dubuque relative to development, operations, financing, and best practices. When comparing Dubuque, and further, Schmitt Island to the case study set, Schmitt Island offers positive attributes such as proximity to existing entertainment options. However, limiting conditions were also identified, such as hotel supply and proximity to a major airport. The design of the case study facilities also offered examples of how a multipurpose sports complex can serve multiple sports and other uses, such as the seasonal ice rink in Appleton. Additionally, case study research provided examples on initial and ongoing development and financing structures that have been successful in other markets, including public-private-partnerships and municipal funding tools. Detailed profiles of each case study facility, as well as a benchmarking exercise, can be found in Section 3 of this report. Page 195 of 959 13 Introduction Executive Summary – Market Supportable Recommendations The Consulting team developed several different scenarios for potential developments on Schmitt Island. The optimal scenario involves 6 additional basketball courts and an additional ice rink to the existing ImOn Arena. This would provide local sports organizations that use either ice rinks or hardwood surfaces a place to practice and host tournaments. The price elasticity of rental rates in the market may prove to be a challenge for the indoor courts, but their ability to host tournaments for multiple sports like basketball, volleyball, wrestling and cheerleading should increase the demand for the facility. While outdoor sports like baseball and soccer are important to the city and locally popular, Schmitt Island’s size and development attributes restrict any sizeable development of outdoor fields. Page 196 of 959 14 Introduction Executive Summary – Development Impacts To properly estimate the demand and associated fiscal and economic impacts for a new development on Schmitt Island including a multipurpose indoor court facility and an addition to the ice arena complex, the historical operations at existing athletic facilities were extensively analyzed, paired with feedback from local user groups. This information was synthesized to develop recommendations relative to the facility program which informed the demand projections and the resulting impacts of the development. A detailed analysis of this work can be found in section 5 of this report. As shown in Year 5, often considered the year of stabilization for sports complex facilities, the ice arena complex is projected to generate $5.7 million in total spending and $600,000 in tax revenues, while the indoor sports complex is projected to generate $16.6 million in total spending and $1.1 million in total tax revenues. Ice Arena Complex - Dubuque, IA Economic and Fiscal Impacts - Local and Regional Tournaments / Special Events Year 5 Economic Impact ($M) Direct Spending $4.0 Indirect Spending 0.9 Induced Spending 0.8 Total Spending $5.7 Increased Earnings $1.1 Employment (FTE jobs)53 Fiscal Impact ($000) State Sales Tax $0.2 County Sales Tax 0.04 County TOT 0.3 Total $0.6 Source: Johnson Consulting Page 197 of 959 15 Introduction Executive Summary - Observations Johnson Consulting recognizes that sports complexes are crucial to community sports organizations and highly beneficial to a community’s tourism industry. The Dubuque region lacks any large-scale sports complex and currently the community uses any available inventory of school and park facilities in Dubuque. Through our market analysis, stakeholder engagement, industry trends research, and case studies Johnson Consulting believes that there is an opportunity for Schmitt Island to introduce a new venue to the Dubuque market with a unique opportunity to serve the area’s residents and visitors. The Dubuque metro area has positive economic indicators such as above average median household income and low unemployment rates. While these factors would indicate future economic growth in Dubuque, the city is losing young families to larger markets. The slight decline in the Dubuque population base can be attributed partially due to manufacturing jobs leaving the market, but it can also be due in part to the lack of family focused assets like a sports complex. This is also evident in the regions below average spending on sports participation fees which indicates either a lack of willingness to spend on fees or a lack of a facility on which to spend those fees. The Dubuque region is severely lacking in all kinds of sports surfaces. Other metro areas such as Des Moines, Cedar Rapids, the Quad Cities, Chicago or Madison have large concentrations of surfaces which provides assets for the communities and are used to attract large youth sports tournaments. Dubuque’s local organizations rely on school and park courts for practices and games and the lack of surfaces at a single location and the lack of quality surfaces prevents the region from hosting sports tournaments. Local organizations indicated to us that the lack of available surface time prevents the growth of their organizations and inhibits them from hosting regional tournaments. With Dubuque’s inability to host youth sports tournaments, parents travel to different markets every week which not only frustrates parents but it means large amounts of spending is leaving the region for other markets. Page 198 of 959 16 Introduction Executive Summary - Observations Specialization has led to a decrease in sports per participant. Kids are dedicating themselves to one or two sports rather than playing a wide variety of sports, year- round. This has led to the increased popularity of club teams that play in weekend tournaments that often requires traveling. Nationally, sports historically dominated by girls (like volleyball, gymnastics and cheerleading) are increasing in popularity in part due to the rise of female sports stars like Caitlin Clark and Simone Biles. Ice sports have also increased their national popularity as the high fixed costs associated with sports like hockey are easier to justify if (due to specialization) an athlete is playing year-round rather than seasonally. Locally, the popularity of sports is often capped by the number of facilities available. Indoor sports and ice sports in Dubuque are capped due to the lack of courts and ice rinks. Additional courts would likely grow the popularity of these sports in Dubuque. When analyzing case studies, Schmitt Island has a lot of positive attributes especially their proximity to existing entertainment options. Commonly, these facilities are located in close proximity to entertainment and retail; the upcoming family entertainment center at the Q Casino will complement a potential new sports complex on Schmitt Island. However, Dubuque is behind in several key factors like number of nearby hotels and distance to a major airport compared to markets with a similar development such as Appleton, Des Moines and the Quad Cities. Any space should be built with multi-sport capabilities like the Community First Champion Center in Appleton, Wisconsin which has an ice rink that can be converted into basketball courts. Most of these facilities operate using a public-private-partnership and were financed through a variety of methods such as hotel taxes, TIFs and city bonds. Johnson Consulting helped develop several different scenarios for potential developments on Schmitt Island. The optimal scenario involves 6 additional basketball courts and an additional ice rink to the existing ImOn Arena. This would allow local sports organizations that use either ice rinks or hardwood surfaces a place to practice and host tournaments. While outdoor sports like baseball and soccer are important to the city and locally popular, Schmitt Island’s size restricts any sizeable development of outdoor fields. The price elasticity of rental rates in the market may prove to be a challenge for the indoor courts, but their ability to host multiple sports like basketball, volleyball, wrestling and cheerleading should increase the demand for the facility. Page 199 of 959 2. Market Assessment Page 200 of 959 2.1 Economic & Demographic Trends Page 201 of 959 19 Market Assessment Overview Dubuque is located in Eastern Iowa on the Mississippi River bordering Wisconsin and Illinois. As of 2024, Dubuque has a population of 59,635 making it the 11 th biggest city in the state of Iowa. Unlike the rest of Iowa which is relatively flat, Dubuque is located in the Driftless Region and is situated on bluffs, giving it a hilly terrain compared to the rest of Iowa. While Dubuque’s economy has traditionally relied on manufacturing, the city needs to diversify its economy to grow. The region has a modest tourism draw, partially because of the “Field of Dreams” movie site which is located in nearby Dyersville. However, Dubuque can be difficult to travel to: •Air: Dubuque lost its air service back in January of 2024, but its regional airport regained limited service in November of 2024 with flights to Chicago. Previously, Dubuque residents had to drive to nearby markets to fly. Now, travel to and from Dubuque can be done completely via air. •Highway: Dubuque is not connected to any major Interstate, so in order to drive to Dubuque only major highways like U.S Highway 20 and U.S Highway 151 are available. As shown by the map on the right the 30-, 90-, and 240-minute drivetime catchments reach as far East as Chicago, as far South as Springfield, IL, as far West as Des Moines and as far North as Wausau, WI. Page 202 of 959 20 Market Assessment Population The resident population of the city of Dubuque was 59,635 persons in 2024. The 30-, 90-, and 240-minute drive time catchment areas, reflecting the draw of a potential new Schmitt Island Sports Complex, had populations ranging from 124,963 to 19,567,095. Between 2010 and 2024, the population of the city of Dubuque increased at an average rate of 0.2 percent per annum. These growth rates were below that of Iowa and the nation. From 2024 to 2029, the population of Dubuque is forecasted to grow at an average rate of negative 0.1 percent per annum. Growth rates in these markets are consistent with the 240-minute drivetime catchment but well below the state and national forecasts. As regional deindustrialized continues, jobs and workers will continue to leave the region at larger rates. 2000 2010 2024 2029 CAGR* 2010-2024 CAGR* 2024-2029 USA 281,421,906 308,745,538 338,440,954 344,873,411 0.7%0.4% Iowa 2,926,324 3,046,355 3,236,114 3,275,570 0.4%0.2% Dubuque 57,816 57,617 59,635 59,356 0.2%-0.1% Schmitt Island (30 minutes)113,850 120,003 124,963 125,000 0.3%0.0% Schmitt Island (90 minutes)1,149,389 1,207,838 1,267,049 1,269,561 0.3%0.0% Schmitt Island (240 minutes)18,448,309 19,285,244 19,567,095 19,454,997 0.1%-0.1% *Compounded Annual Growth Rate Sources: Esri, Johnson Consulting Population Page 203 of 959 21 Market Assessment Age Age is an important demographic indicator to consider when evaluating the market. Some markets seek to combat “brain drain,” a phenomenon where primarily college-educated young professionals are leaked to larger or different metropolitan markets. Other markets seek to attract wealthier retirees, which bring economic spending, leisure time, and philanthropic dollars with them to these markets. Dubuque has a lack of well-paying jobs which has increased an exodus of young workers, furthering the issue of “brain drain.” The Dubuque area has a much younger age distribution relative to state and national averages. 29% of the people in the 30-minute drivetime catchment around Schmitt Island are ages 15-34, representing a much higher proportion than the state and nation. This is likely due to the three major colleges in the city that bring large numbers of young people to the city. However, the proportion of middle age populations (ages 30-54) are significantly lower than state and national averages. These demographics are particularly important because they represent heads of families. The lack of this age group indicates Dubuque may have a lack of quality family-friendly amenities. A sports facility could help to retain and attract families to the region. ` Sources: Esri, Johnson Consulting 2024 Age Distribution 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% Pe r c e n t a g e o f P o p u l a t i o n United States Iowa Schmitt Island (30 minutes) 29% Page 204 of 959 22 Market Assessment Education & Income Education and income, although not strict predictors of sports, recreation and entertainment facility performance, are important market attributes for benchmarking the level of activity. Markets with higher educational attainment and income levels are more likely to have a robust economic base and healthy education system, which are key components of ensuring long-term growth and resiliency. Well-educated, higher income markets have a significant advantage when it comes to attracting new businesses, and are also more likely to have the nightlife, retail, and tourism products that appeal to event planners. The 30-minute drivetime radius around Schmitt Island has below average educational attainment levels among adults age 25+ for high levels of educational attainment. 35.4% of people in the area around Schmitt Island have a Bachelor’s or higher educational attainment. This is lower than national levels but higher than the state average. The Dubuque area has a low proportion of adults age 25+ without a high school education and high proportion of adults 25+ with a high school education. The median household income in the 30-minutes around Schmitt Island is $66,647 per annum, significantly below that of the U.S. ($79,068). Income levels in the city of Dubuque are projected to grow at a rate of 2.6 per annum over the next five years, which is less than the United States. These education and income statistics reflect a weak economic trajectory. Sources: Esri, Johnson Consulting 2024 Educational Attainment 9.4% 26.8%27.1% 36.8% 5.9% 29.6%30.8% 33.7% 5.2% 31.7% 27.7% 35.4% 0% 5% 10% 15% 20% 25% 30% 35% 40% Less than High School High School or Equivalent Some College / Associate's Bachelor's or Higher Pe r c e n t o f A d u l t s A g e 2 5 + United States Iowa Schmitt Island (30 minutes) 2024 2029 CAGR* USA $79,068 $91,442 3.0% Iowa $74,738 $83,750 2.3% Dubuque $66,647 $75,612 2.6% Schmitt Island (30 minutes)$75,102 $84,530 2.4% Schmitt Island (90 minutes)$76,143 $86,177 2.5% Schmitt Island (240 minutes)$79,873 $91,365 2.7% *Compounded Annual Growth Rate Sources: Esri, Johnson Consulting Median Household Income Page 205 of 959 23 Market Assessment Dubuque Regional Average Sports Spend Each number in the dots to the right represent an index of spending within that region, where 110 represents 10% higher than the national average and 95 representing 5% less than the national average. The 30-minute drivetime catchment spends roughly 11 % less than the national average on fees for participant sporting events. This indicates a lack of disposable income allocated towards sports. The 90-minute drivetime catchment spends 8% less than the national average and the 4-hour drivetime catchment spends 2% less than national average most likely due to its inclusion of major markets like Chicago, Milwaukee and Des Moines. Dubuque area residents spend far less than the national average on fees for participant sporting events (including trips and local events). This could either be due an unwillingness to spend on expensive sports tournaments and events or due to the lack of available venues, tournaments and opportunities in the Dubuque area. A new venue may bring higher rates of spending as there would be more sporting opportunities in the Dubuque area. Page 206 of 959 24 Market Assessment Disposable Income and Sports Spending The table below shows the differences between different cities, states and regions’ median disposable income and other sports spend related statistics. Dubuque and the drivetime catchments closest to Dubuque have below average median disposable income as well as below average other sports spending categories. This likely means that the ability and desire to pay for a quality athletic facility will be less than national averages. However, the 240-minute drivetime catchment is on-par with national averages meaning there are a large number of people within driving distance who are willing to spend on sports tourism. These people are likely concentrated in large metro areas such as Chicago, Milwaukee and Des Moines. Median Disposable Income Fees for Participant Sports Membership Fees for Social/Recreation /Health Clubs Admission to Sports Events Total Sports Spending % of Disposable Income Spent on Sports Events % of Disposable Income Spent on Sports Events, Indexed to National Average* United States $63,562 $133 $302 $79 $515 0.81%100 Iowa $59,890 $116 $266 $79 $461 0.77%95 Dubuque $55,427 $107 $251 $73 $431 0.78%96 Schmitt Island (30 minutes)$60,617 $118 $273 $80 $472 0.78%96 Schmitt Island (90 minutes)$60,671 $121 $279 $82 $482 0.79%98 Schmitt Island (240 minutes)$63,297 $130 $300 $84 $514 0.81%100 *Where 100 is average, 110 is 10% above average, and 90 is 10% below average Sources: Esri, Johnson Consulting Disposable Income and Average Household Sports Spending Page 207 of 959 25 Market Assessment Major Employers & Unemployment A strong corporate and business presence can be important in the success of a sports, recreation, event and entertainment facility, because local businesses support facilities by attracting residents to the area, and providing disposable income, as well as through their requirement for event space, and through donations, sponsorships and advertising. Dubuque has attempted to diversify its market away from a manufacturing focus to a wide range of sectors. However, the rate of lost manufacturing jobs is outpacing the gain of new non- manufacturing jobs. Despite having issues diversifying their economy, Dubuque has maintained relatively low unemployment numbers. Both Iowa and Dubuque’s unemployment rates have consistently tracked lower than that of the United States. In 2024, Dubuque and Iowa’s unemployment rate was 2.9% and 3.0% respectively; the United States had a higher rate of 4.3%. However, unemployment rates don’t always capture the entire picture as they ignore variables like underemployment and labor participation rate. For example, stakeholder engagement and reports on the region indicated high paying jobs in Dubuque was less than compared to the rest of Iowa. This is also indicated by Dubuque’s low median household income. Employer Industry Employees John Deere Dubuque Works Manufacturing 2,810 Dubuque Community Schools Education 2,000 MercyOne Dubuque Medical Center Health Care 1,438 HODGE Industrial Services 1,102 Medical Associates Clinic Health Care 1,069 University of Wisconsin-Platteville Education 1,062 UnityPoint Health - Finley Hospital Health Care 940 Cottingham & Butler, Inc.Insurance 851 City of Dubuque Government 737 Sedgwick CMS Insurance 725 Rainbo Oil Company Retail Trade 558 Western Dubuque County Community School District Education 551 Hormel Manufacturing 550 Medline Industries Health Care 500 Mi-T-M Corporation Industrial Services 465 Source: Greater Dubuque Development Corp, Johnson Consulting Major Employers in Dubuque, IA Sources: Bureau of Labor Statistics, Johnson Consulting Unemployment Rate 0% 2% 4% 6% 8% 10% 12% 2007 2009 2011 2013 2015 2017 2019 2021 2023 United States Iowa Dubuque (MSA) Page 208 of 959 26 Market Assessment Location Quotient by Industry Sector As of 2024, the largest industry in Dubuque was Manufacturing. With increasing costs and automation, keeping manufacturing jobs in Dubuque (and the United States) will only get more difficult. There is a want and a need to diversify Dubuque’s economy away from an industry that is not projected to grow domestically. The top 5 industries with the most employees are: •Manufacturing •Health Care and Social Assistance •Retail Trade •Educational Services •Accommodation/Food Service The table on the right provides a location quotient analysis of the number of employees in the Dubuque area by industry sector relative to that of the U.S. as a whole. Location quotients of 1 indicate a similar relative concentration of that particular industry in the region, while values higher than 1 indicate higher concentrations of that industry, and values lower than 1 indicate lower concentrations of that industry. The location quotient values are color-coded accordingly. The Dubuque region has a high concentration of Manufacturing and Agriculture related jobs relative to that of the United States. Page 209 of 959 27 Market Assessment Implications Dubuque is a mid-sized city that is having problems with maintaining a robust population. The city of Dubuque currently has a population of 59,635 and the population of the city is projected to slightly decline while the metro area of Dubuque is projected to remain stagnate. Dubuque’s largest industry, manufacturing, has been on a decline ever since the deindustrialization of the 1980’s, which has led to a mass-exodus of working-class residents. Dubuque also faces a problem with losing younger college-educated residents to larger markets (aka “Brain Drain”). Dubuque does not have as many family-friendly community assets as larger markets. The construction of additional sports surfaces or a sports facility on Schmitt Island would help to lessen that drain away from the city. Dubuque’s economic and demographic profile has some extremely positive attributes. The Dubuque metro area has a strong median household income of $75,102 and it is expected to increase by 2.4% by 2029. Dubuque also has an extremely young population due to the number of universities located within the city. The City of Dubuque’s median age is 37.9, which is much lower than the national average of 39.3. Dubuque also has an Unemployment rate of 2.9% which is in-line with Iowa’s (3.0%) and well below the national average of 4.3%. A sports facility on Schmitt Island could greatly help to improve these already positive attributes. Young college graduates from one of Dubuque’s universities who are deciding where to settle down and start a family will see a youth sports complex as a positive reason for staying in Dubuque. Dubuque residents are less likely to spend on participation sporting events. Residents in a 30-minute drivetime around Schmitt Island spend 11 % less than the national average on fees for participant sporting events. Dubuque’s current inventory of rentable sports facilities is largely run by the school district and is purposefully inexpensive so that teams and organizations can get cheap practice times. This may be part of what drives down Dubuque’s average spend on participation sporting events. This also indicates a high market elasticity, the higher the rental costs, the less likely people are willing to spend. Page 210 of 959 2.2 Regional Facility Audit Page 211 of 959 29 Regional Facility Audit Hotel inventory Data from CoStar, which is an independent hotel research firm whose statistics are widely used in the industry, indicates that within a 30-minute drivetime radius of Schmitt Island, there are 50 hotels with a total of 2,682 rooms. There are only six hotels with 100 or more rooms. The table to the right shows these hotels along with their exact number of rooms, hotel class, total meeting space and largest meeting space. The largest hotel by number of rooms and most meeting space is the Grand Harbor Resort & Waterpark, which has 193 Upper Upscale rooms and over 86,000 SF of meeting space. Dubuque’s inventory of large hotels is on the higher end with three of their six largest hotels classified as Upper Upscale or Upscale. The other three hotels are more affordable options that range from Economy to Upper Midscale. The map to the right shows the location of the hotels within a 30-minute drivetime of Schmitt Island that are greater than 100 rooms. All major hotels in the Dubuque region are located within Dubuque with most being in Downtown Dubuque or on Schmitt Island itself. If the proposed Schmitt Island facility is going to host traveling youth sports tournaments, additional hotel rooms will likely be necessary in meeting the demand these tournaments can bring. Hotel Class Year Built (Renovated)Rooms Largest Meeting Space (SF) Total Meeting Space (SF) Grand Harbor Resort & Waterpark Upper Upscale 2002 193 9,000 86,000 Holiday Inn Dubuque Galena Upper Midscale 1991 (2003)193 3,075 9,599 Days Inn Dubuque Economy 1961 162 1,000 1,000 Best Western Plus Dubuque Hotel & Conference Center Upper Midscale 1978 (2018)150 4,127 12,845 Hotel Julien Dubuque Upper Upscale 1914 (2012)133 6,566 18,786 Hilton Garden Inn Dubuque Downtown Upscale 2005 116 1,225 1,545 Hotels <100 Rooms 1,735 17,711 20,778 Total 2,682 42,704 150,553 Sources: CoStar, Johnson Consulting Dubuque Hotel Inventory Schmitt Island Page 212 of 959 30 Regional Facility Audit Hotel Pipeline There are two hotels within a 30-minute drivetime radius of Schmitt Island with a total of 257 rooms set to enter the market by 2026. One of the hotels is an addition to the hotel already at the Q Casino, while the other will be a 160 room Marriott hotel near the Port of Dubuque. The Marriott in the Port of Dubuque will be split into two hotels, one of which will be dedicated to more long-term stays. The map on the right shows where the new hotels will be located within Dubuque. The blue circles are the incoming hotels while the orange circles are the existing hotels. The map shows that Schmitt Island and the Port of Dubuque are the two popular areas for hotels in the city, indicating that these are popular areas for tourism. Schmitt Island Property Name Hotel Class Phase Year Opening Rooms Courtyard by Marriott TBD Approved 2026 160 Tapestry Collection by Hilton Upper Upscale Final Planning 2025 97 Total 257 Sources: CoStar, Johnson Consulting Dubuque Area Hotel Pipeline Page 213 of 959 31 Regional Facility Audit Hotel Market Dubuque’s hotel market has rebounded from the dip incurred by the COVID-19 pandemic. The chart to the right shows the Dubuque area’s ADR, RevPAR and Occupancy since 2013. Dubuque area’s RevPAR and ADR have climbed back up to levels higher than before the pandemic. The market’s occupancy rate was slightly declining before the pandemic and despite recovering from lows in 2020, it has stagnated post-pandemic. Sources: CoStar, Johnson Consulting Dubuque Hotel Market Performance 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Oc c u p a n c y AD R & R e v P A R Average Daily Rate (ADR)Revenue per Available Room (RevPAR)Occupancy $120.51 $68.17 56.6% Page 214 of 959 32 Regional Facility Audit Local & Regional Supply Overview In order to identify if a market is primed or not for a sports complex, it is important to look at both local and regional facility supply to determine the level of competition for events such as games, practices, tournaments, and outside events. The challenges that any new sports complex will face depend on market and facility saturation, and an evaluation of whether the local and regional supply already exceeds local and regional demand for both indoor and outdoor sports. Johnson Consulting compiled a comprehensive list of local and regional sports facilities. The facilities have been classified based on their proximity to Schmitt Island. Local facilities are those within a 30-minute drive time of Schmitt Island and regional facilities are those located within a 4-hour drive time, although this facility is perceived to also draw from outside this radius. We also identified sports complexes that would qualify as tournament-quality facilities – those with 4 or more courts under one roof. The potential Schmitt Island Sports Complex would likely compete with these facilities for demand on either a local or regional level. Page 215 of 959 33 Regional Facility Audit Dubuque Regional Baseball Facilities The 30-minute drivetime from Schmitt Island has a low quantity of large baseball facilities. The number of baseball facilities are limited to large areas of flat land which are hard to come by in Dubuque. In the 30-minute drivetime catchment outside the City of Dubuque there is plenty of flat land, but there is far less population to support a large number of ball fields. Small towns will have one or two ball fields for little league and high school use, but not large complexes like the Prairie Ridge Youth Sports Complex in Ankeny which has 17 baseball fields. This is the largest facility in the 240- minute drivetime catchment. Larger metro areas like Milwaukee, Chicago and Des Moines all have a larger concentration of baseball diamonds. Specifically, the Des Moines metro area has a much larger concentration of baseball complex than the other major metro areas in the 240-minute drivetime catchment. There is a need for a larger baseball facility in the Dubuque region. The lack of diamonds force families to drive 90+ minutes to larger facilities in Cedar Rapids and the Quad Cities. 1 2 3 4 5 Facility Fields 1 Prairie Ridge Youth Sports Complex 17 2 Grimes Sports Complex 13 3 TBK Bank Sports Complex 10 4 Janesville Youth Sports Complex 10 5 Haban Park 12 Source: Relevant Facilities, Johnson Consulting Notable Baseball Facilities Page 216 of 959 34 Regional Facility Audit Dubuque Regional Indoor Court Facilities Dubuque lacks one large basketball facility, rather there are smaller facilities scattered across the city. The courts that the city does have are mostly single courts in schools and community centers, so sports organizations not only compete with other organizations for court time, but also the schools and community centers who run the courts. There is a larger concentration of high inventory court facilities on the outskirts of the 90-minute drivetime catchment in the Quad Cities, Madison and Cedar Rapids. Parents expressed frustration at routinely driving to these metro areas for not just games on the weekend but routine weekday practices as well. In the 240-minute drivetime catchment there is a high concentration of basketball facilities to the east namely in the Chicago metro area. However, the area West of Dubuque doesn’t have as large of an inventory of indoor court facilities. A new facility could draw families from the Des Moines area or from the North like La Crosse where there is a similar lack of courts. Dubuque # of surfaces 1 2 3 4 5 Facility Courts 1 TBK Bank Sports Complex 8 2 Game on Sports/Sandlot Sports CR 5 3 Pleasant Prairie Rec Plex 12 4 Community First Champion Center 8 5 Romeoville Athletic & Events Center 8 Source: Relevant Facilities, Johnson Consulting Notable Indoor Facilities Page 217 of 959 35 Regional Facility Audit Dubuque Regional Soccer Facilities Similar to baseball facilities, large soccer facilities require large swaths of flat land; Dubuque’s hilly terrain hinders the city’s ability to have one large facility. The Dubuque Soccer Complex is the largest soccer complex in Dubuque with 7 soccer fields and is also the third largest within the 90-minute drivetime catchment, behind the Tuma Sports Complex (22 fields) in Marion, IA and the Reddan Sports Complex (11 fields) in Verona, WI. The largest facilities are in the 240-minute drivetime catchment like the Fond Du Lac Soccer Complex (32 fields) in Wisconsin or the Stuart Sports Complex (31 fields) in Montgomery, Illinois. In order to compete with these facilities, a new Dubuque soccer facility would need to be similarly large and given the competitive facilities comparative proximity to larger markets, a new Dubuque Soccer Facility would still have trouble drawing families from Chicago or Milwaukee. 1 2 3 4 Dubuque # of surfaces Facility Fields 1 Tuma Sports Complex 22 2 Fond Du Lac Soccer Complex 32 3 Mercyhealth Sportscore One 18 4 Stuart Sports Complex 31 Source: Relevant Facilities, Johnson Consulting Notable Soccer Facilities Page 218 of 959 36 Regional Facility Audit Dubuque Regional Hockey Facilities The ImOn Arena on Schmitt Island is Dubuque’s lone rink and the only sheet of ice within an hour of Dubuque. The closest competitive facilities are all close to the 90-minute drivetime catchment like the Capital Ice Arena in Madison or the ImOn Arena in Cedar Rapids. Many cities in Eastern Iowa like Cedar Rapids, Iowa City, and Mason City have at least one sheet of ice. A second sheet of ice could prevent leakage from the Dubuque market to larger ice facilities like the ImOn Arena in Cedar Rapids. A second sheet of ice would double the number of peak ice hours and make Schmitt Island’s ImOn Arena eligible to compete with those facilities in Madison and Cedar Rapids for tournaments. The Chicagoland area has a large number of rinks, but the sport is so popular that ice time is still limited and costly. A second sheet of ice might be able to attract tournaments from the Chicagoland area. 1 2 3 4 5 Dubuque # of surfaces Facility Rinks 1 Graham Arena Complex 4 2 ImOn Ice Arena 2 3 Capitol Ice Arena 2 4 Canlan Ice Sports 3 5 Woodman's Sports & Convention Center 2 Source: Relevant Facilities, Johnson Consulting Notable Hockey Facilities Page 219 of 959 37 Regional Facility Audit Dubuque Facilities Rental Rates Currently, the hourly rental rates for McAleece Park fields are affordable enough to easily accommodate residents and community non-profits. The $30/hour rental rate for non-residents or for profits is the highest rate and still extremely affordable. Similarly, pickleball and tennis court rates are very low and affordable. Basketball court rentals are run through the local school district and are similarly affordable. School Districts do not rent out courts on an hourly basis, rather, they sell weekly 75-minute time slots for 10 weeks for $110 . These rates are likely not market prices; they are set at a low price point to accommodate for community organizations and sports leagues. These affordable rental rates may indicate that the popularity of sports in Dubuque may be largely fueled by its affordability and accessibility to large swaths of citizens. Dubuque Local Schools & Colleges Resident Organizations / Nonprofits Resident Private Users/ For Profits Non Residents/For Profit Baseball/Softball Fields* McAleece Field #1 Per Agreement $20 $25 $30 McAleece Field #2 Per Agreement $20 $25 $30 McAleece Field #3 Per Agreement $20 $25 $30 Petrakis Per Agreement $20 $25 $30 Veteran's Memorial Park Field #1 Per Agreement $20 $25 $30 Veteran's Memorial Park Field #2 Per Agreement $20 $25 $30 Valentine Park Per Agreement $20 $25 $30 Pickleball/Tennis/Volleyball Courts Outdoor Pickleball/Tennis Per Agreement $3 $5 Outdoor Volleyball Per Agreement $5 $8 Source: City of Dubuque, Johnson Consulting *Baseball/Softball Field prep is an added cost and includes dragging the infield, chalking, and setting bases; $10/field on weekdays, $20/field on weekends/holidays. Lights are an additional $15/hour/field. Dubuque Facilities Rental Rates Facility Type Hourl Rental Rates Page 220 of 959 38 Regional Facility Audit Field of Dreams The Field of Dreams movie site is a 40-minute drive from Schmitt Island in nearby Dyersville, Iowa. The youth baseball tournament series that is run in coordination with the movie site is by far the area’s largest Sports Tourism attraction. The table to the right shows the impact of the Field of Dreams tournaments. In 2024 there were 10 tournament weekends that brought in 453 teams from across the country. The economic impact of the tournaments was not just limited to players and coaches as each coach and player was likely to bring family members along as well. There was an estimated $1.5 million in accommodation spending and another $6.8 million in estimated total visitor spending. The Field of Dreams fields bring in far more visitors than any other sports tourism asset in the Dubuque area. However, the lack of ancillary Field of Dreams youth fields means that teams end up playing at other facilities. Many of the facilities are in flood plains and are susceptible to rain outs as seen by the footnote on the chart. If additional fields are added, they must be carefully placed to minimize the impact of flooding/weather. However, additional fields would allow the Field of Dreams tournament to bring in more teams per tournament, thus increasing economic impact. 453 Teams 857 Games 15 Skills Competitions 28 Champions 106,677 Miles Traveled $1,546,104 Accomodation Spending $6,805,833 Total Visitor Spending 93 Jobs Created *Rain delays 9 out of 10 weekends 2024 Summary Field of Dreams Source: Field of Dreams, Travel Dubuque, Johnson Consulting Page 221 of 959 39 Regional Facility Audit ImOn Arena ImOn Arena, formerly known as Mystique Ice Center and Dubuque Ice Arena, is located on Schmitt Island and is the primary ice rink that serves the City of Dubuque and surrounding communities. The facility is owned by the City of Dubuque and operated by Schmitt Island Development Corporation. The arena was originally opened in 2010 for approximately $10 million and was renovated in 2022 for $6 million to address foundation concerns. ImOn Arena is a 3,200-seat, single sheet ice rink and event space. The arena features concessions, luxury box suites, press boxes, a lounge with a full bar, meeting rooms, restrooms, and a small pro shop. The arena is home to the Dubuque Fighting Saints of the USHL, Dubuque Youth Hockey, and the Dubuque Saints, the Dubuque High School hockey team, and the University of Dubuque men’s and women’s hockey teams. The facility hosts youth, adult, and senior hockey, as well as figure skating, public skate, and other ice activities. Being the area’s first and only dedicated ice arena, the facility is in high demand. Key user group usage over the 2023 calendar year compared to available hours of operation are charted below. As shown, the winter months have a much higher utilization rate than the summer months. This is further illustrated by the seasonal calendars on the following pages. Page 222 of 959 40 Regional Facility Audit ImOn Arena The following calendars are samples of an average month during the winter, spring, and summer seasons at the arena. As the schedule shows, the ImOn Arena is booked almost every week day from 6am to 9pm, indicating there is enough participation in the Dubuque area to expand to two rinks. An extra sheet of ice would allow more practice time for local organizations, allowing for the growth of ice sports and events. ImOn would also be able to double their peak ice hours (5pm-10pm daily) allowing them to bring in more revenue. Winter 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 6:00 AM 6:30 AM 7:00 AM 7:30 AM 8:00 AM 8:30 AM 9:00 AM 9:30 AM 10:00 AM 10:30 AM 11:00 AM 11:30 AM 12:00 PM 12:30 PM 1:00 PM 1:30 PM 2:00 PM 2:30 PM 3:00 PM 3:30 PM 4:00 PM 4:30 PM 5:00 PM 5:30 PM 6:00 PM 6:30 PM 7:00 PM 7:30 PM 8:00 PM 8:30 PM 9:00 PM 9:30 PM 10:00 PM 10:30 PM 11:00 PM 11:30 PM 12:00 AM Page 223 of 959 41 Regional Facility Audit ImOn Arena Page 224 of 959 42 Regional Facility Audit ImOn Arena The arena currently only has one sheet of ice. With the number of regular user groups, local demand, and regional demand, there is likely an opportunity to expand programming if an additional sheet of ice was available. Revenues at the arena also align with busier seasons as a main revenue source is food and beverage sales during events. Page 225 of 959 43 Regional Facility Audit Implications Dubuque is severely lacking in large sports facilities when compared to other neighboring markets. The facility inventory maps indicate that other markets such as Cedar Rapids, Des Moines, Quad Cities and Madison have a higher number of facilities and fields than compared to Dubuque. This is understandable as Dubuque’s terrain makes it far more difficult to build large baseball and soccer complexes in the city. Baseball is an extremely popular sport in the region and the Field of Dreams tournaments is a large draw to the region; however, the inadequate inventory of fields near the facility leads to Dubuque’s poorly irrigated fields to be used. Sports Facility Rental rates are extremely affordable in Dubuque to cater to local organizations and not towards large tournament teams. Available surfaces are often scattered throughout the city and are not in one central location. These fields and courts are of varying qualities and many are not capable of hosting large scale tournaments. A new facility would increase the supply of quality surfaces, but likely at the expense of affordability. A new higher quality facility will likely have a higher rental rate than other facilities in the area that are ran by schools or the parks department. Dubuque’s ice arena is a prime candidate for an additional surface. The rink is booked from open to close during the winter months and has to accommodate multiple teams of all ages. Currently there isn’t enough ice time to accommodate for additional hockey or figure skating athletes and the growth of ice sports in Dubuque is capped. A new sheet of ice would allow additional participants to form new teams and to expand the popularity of hockey and figure skating in the region. An additional sheet of ice would also allow the facility to double their prime ice sheet time. This prime ice sheet time that runs from 5pm-10pm generates far more hourly revenue than 6am practice times which some organizations are forced to use due to the lack of ice time. An additional sheet of ice would also put Dubuque on par with other markets like Cedar Rapids and Madison that have a facility with two sheets of ice. This would allow Dubuque to bring in larger hockey tournaments to Schmitt Island. While the ImOn ice arena is currently used heavily during the winter, the sheet of ice isn’t heavily utilized in the summer. If an additional sheet of ice is to be added to the arena, it should have multipurpose capabilities. Being able to convert the second sheet of ice to courts or turf during the summer months would increase utilization of Schmitt Island even more. Page 226 of 959 2.3 Stakeholder Engagement – Key Findings Page 227 of 959 45 Stakeholder Engagement Overview The engagement of potential users of a new venue on Schmitt Island was emphasized as a priority of this study from the outset. As with any project of this importance, it is crucial to engage with a wide variety of individuals and organizations throughout the industry to foster a sense of buy-in and inform the study’s observations, conclusions, and recommendations. Johnson Consulting’s outreach strategy involved conducting supplemental, targeted focus groups and interviews with key stakeholders in the proposed project, potential project partners, and local, regional, and national industry experts in the realm of sports tourism facilities. These focus groups and interviews began with in-person sessions in August 2024 and continued throughout the remainder of the study. Johnson Consulting conducted interviews and focus groups with individuals representing 27 different organizations, including local sporting organization leaders, local government leadership, and regional venues. These engagements helped us to understand the popularity and trajectory of the youth sports in the region, the needs of its stakeholders, and whether the proposed venue would help meet those needs. They also provided important context on local government, current attempts at a similar facility, and the market opportunities that exist for the proposed venue. The diagram to the right outlines the scope of the stakeholder engagement effort. Community Engagement Key Stakeholders Potential Partners Industry Experts Local Sporting Organizations Local Governments Local Venues Page 228 of 959 46 Stakeholder Engagement Key Themes There is an apparent need for additional, quality athletic surfaces in Dubuque. The existing limited availability results in participants and dollars leaking into neighboring markets. A sports and recreation development on Schmitt Island has the potential to create opportunity for sports tourism in Dubuque with the ability to host tournaments and other large-scale events. However, a tournament quality facility may present a challenge to shift the status quo of local use. Input from various stakeholders suggest there is not only an opportunity to leverage programming partnerships for this project, but the majority of stakeholders agreed that a public-private partnership would be ideal for the development of this project. Further, it was noted that sports complexes and similar developments may have ripple effects on the local economy, such as workforce recruitment and retention and local business growth. Key Themes Evident Gap in the Sports Market Participant & Economic Leakage Sports Tourism Potential Partnership Opportunity (P3) Employer/Employee Recruitment/Retention Paradigm Shift from Local Facilities Page 229 of 959 3. Participation Trends & Comparative Market Analysis Page 230 of 959 3.1 Participation Trends Page 231 of 959 49 Participation Trends & Comparative Market Analysis Sports Industry Facility Trends Throughout the past decade, youth sports facilities aimed at generating tourism through large multi-day tournaments have become increasingly common, as their magnitude is often able to draw demand from surrounding states, and sometimes the entire country. While generating sports tourism demand relies on several factors, the widely accepted standards for a facility to qualify as a sports tourism facility for each surface type are as follows: •Indoor Facility: 4 or more surfaces in a single venue •Outdoor Facility: 10 or more surfaces at a single venue The number of surfaces is not necessarily the only determining factor for whether a facility will generate sports tourism. Other factors that influence the success of sports tourism facilities include: •Strategic location: Facilities that have major metropolitan areas within close proximities (~4-hour drive time) are accessible to a larger number of people, and thus have more opportunities to host larger events, and can rely on steady local and regional events to provide consistent demand and out of town visitors. •Proximity to other competitive sports tourism facilities: While a sports tourism facility with an ideal strategic location near a major US city may initially seem like an ideal development, it is possible that similar facilities have already been developed nearby and would represent significant competition for a new facility. •Quality: The quality of the surfaces is often a major selling point for the most prominent sports tourism facilities in the country. Significant investment in the development and upkeep of top-quality surfaces and buildings, as well as other features such as lighting, parking, and management are essential for acquiring major events that bring in visitors from further destinations. •Partnerships and sponsorships: Gaining recognition through an affiliation with a well-known sports team (e.g., NBA, NFL, or MLB team) or prominent athletic/sports- based company (e.g., Nike, Under Armour, Gatorade) can help propel a facility to national recognition, depending on the prominence of the sponsor/partner. Page 232 of 959 50 Participation Trends Sports Industry Participation Trends Total team sports participation had been stagnating if not decreasing from 2012 to 2022, but there was an increase of 7M participants from 2022 to 2023. 2020 was a 10 year low in total team sports participants, but since then that number has increased every year and even exceeded pre-COVID levels at 136 million team sports participants. The chart to the right also shows the gradual decline in Sports per Participant. This underlies the gaining popularity of specialization. As more kids choose to focus on a single sport, they no longer participate in multiple sports. While this can lead to the decrease in total sport participation, it can lead to higher commitment participation. For example, a little league may only have one tournament a year, but travel ball leagues may have a tournament every week. Source: SFIA, Johnson Consulting Team Sport Participation & Sports Per Participant 132M 132M 130M 132M 133M 133M 132M 130M 126M 126M 129M 136M 2.14 2.06 2.02 1.99 1.94 1.97 1.92 1.84 1.88 1.85 1.82 1.73 0 0.5 1 1.5 2 2.5 3 0 40 80 120 160 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Total Sport Participants Sports Per Participant Page 233 of 959 51 Participation Trends Indoor Sports Trends Participation There has been a sharp increase in indoor sports participation in sports such as basketball, cheerleading and gymnastics. The rapid increase in participation is likely due a post-COVID rebound. The two sharpest increases in indoor sports have been in majority female participation sports. The recent popularity of female sports figures like Simone Biles and Caitlin Clark have increased sports participation among girls. Volleyball is the only major indoor alternative to basketball and it’s likely that as sports participation recovers from COVID that volleyball will continue its increase in participation. Basketball Volleyball Cheerleading Gymnastics 1.1%8.5%8.5%22.8% Sources: NSGA Sports Participation Survey, Johnson Consulting Change in Indoor Sports Participation Trends (2020-2023) Sport Percentage Change Page 234 of 959 52 Participation Trends Outdoor Sports Trends Participation The post-COVID rebound among outdoor sports is similarly sharp among Lacrosse and Soccer which in addition to gaining participation since the lifting of COVID restrictions have seen long term success in gaining participation since 2010. Both Lacrosse and Soccer have seen a growing popularity in the United States as seen by the addition and growth of the Professional Lacrosse League, Major League Soccer and United Soccer League. These sports are gaining in visibility and are similarly popular entertainment options for children who are deciding what sports they want to play. Baseball has seen a sharp decline in participation from 2020 to 2023, which is in line with its decline since 2010. As travel ball leagues take over Little Leagues, baseball has become more expensive and less accessible to more and more Americans. Softball has seen a less dramatic decrease, but participation has still dropped. This is likely due to the increasing popularity of pickleball which has replaced softball as the sport of leisure for young adults. Baseball*Softball*Football Lacrosse Outdoor Soccer -4.9%-0.6%-5.1%6.5%4.5% Source: NSGA Sports Participation Survey, Johnson Consulting Percentage Change *These are national participation trends and not representative of Dubuque's local increased popularity in Baseball and Softball Change in Outdoor Sports Participation Trends (2020-2023) Sport Page 235 of 959 53 Participation Trends Ice Sports Trends Participation Ice sports such as Ice Hockey and Figure Skating have seen a similar increase in popularity from 2020 to 2023. One factor that contributed to this is the popularity of the 2022 Winter Olympics. Ice and Snow Sports such as hockey, figure skating, skiing and snowboarding all saw an average increase in participation by 10.9% since the Winter Olympics in 2022. Ice hockey and figure skating were some of the only outdoor sporting activities people were able to participate in during COVID which drew a lot of new participants to the sport. Additionally, the popularity of the National Hockey League is leading to the popularity of hockey in previously untapped markets. The Stanley Cup playoffs had a record high first round viewership numbers and the Stanley Cup continues to increase in total viewership in contrast with other professional sporting championships. The expansion of teams to Las Vegas and Seattle along with a team moving to Utah has drawn more visibility on the sport of hockey to markets where hockey typically wasn’t a popular sport. Ice Hockey Figure Skating 8.7%8.4% Source: NSGA Sports Participation Survey, Johnson Consulting Percentage Change Change in Ice Sports Participation Trends (2020-2023) Sport Page 236 of 959 54 Market Penetration Sports Penetration Methodology The flow chart below summarizes the methodology used to determine the Total Estimated Demand for sports Participation/visitation in Dubuque. Each drivetime catchment Population was multiplied by a custom individual sports participation rate to get a total number of participants in each drivetime catchment. The total sport participants in each drivetime catchment were multiplied by a custom estimated Market Penetration Rate. For the 90- and 240-Minute drivetime catchments, this is a measure of how many competitive facilities within a drivetime catchment are in Dubuque. For the 30-Minute drivetime catchment, a Sports Surfaces Deficiency Rate was used to measure how adequately Dubuque provides sports surfaces compared to other communities of a similar size. X X =Population National Participation Rates by Sport CHJC Estimated Market Penetration Rate Total Estimated Demand Page 237 of 959 55 Market Penetration Current Dubuque Market Penetration Rate The table on the right shows the current Total Estimated Demand by each drivetime catchment. Currently, most of the sporting activity that occurs in Dubuque comes from local users rather than sports tourism. Dubuque does not have the facilities to attract outside sports tourism. The Field of Dreams youth baseball tournaments does bring in a large portion of the city’s sports tourism. Youth baseball teams are coming to Dubuque because of the nearby Field of Dreams movie site and not because there is a facility with a large inventory of fields. Dubuque does not have any major facility that would attract large regional tournaments, which is why the penetration rates for the 90-minute and 240-minute drivetime catchments were so low. Sports like basketball are able to attract a couple of tournaments every year, but these tournaments are often split between multiple facilities. Most tournament organizers want to utilize one single facility for their tournaments to limit travel time for parents. A large facility with multiple fields is necessary for attracting larger tournaments or in the case of baseball, maintaining large tournament attendance. Page 238 of 959 56 Market Penetration Projected Dubuque Market Penetration Rate The table on the right shows Dubuque’s potential market penetration if regionally competitive facilities for each sport were built. These facilities would mainly compete with other facilities with a similar number of fields within a 90-minute drivetime catchment. For example, if ImOn Arena were to add an extra sheet of ice, they would be able to compete with other two sheet facilities in Madison and Cedar Rapids. The table on the bottom shows how the minimum number of fields necessary to be considered a competitive facility within the 90-minute drivetime catchment. Creating a facility that is more catered towards sports tourism would also provide additional court/field space for local organizations. Tournaments are likely only to occur during the weekends; this leaves the facilities to local organizations during the week days. Whenever a sports tourism facility is built, a community asset is added. Source: Johnson Consulting Ice Hockey/ Ice Skating Baseball/Softball 8 Diamonds Soccer/Lacrosse/ Football 8 Rectangular Fields Basketball/ Volleyball/ Cheerleading/ Wrestling 4 Courts Minimum Facility Threshold (90-Minute) 2 Rinks Page 239 of 959 57 Market Penetration Projected Dubuque Market Penetration Rate The table on the right shows Dubuque’s potential market penetration if a regionally competitive facility for each sport were to be built. These facilities would mainly compete with other facilities with a similar number of fields within a 240-minute drivetime catchment. The table on the bottom shows the minimum number of fields necessary to be considered a competitive facility within the 240- minute drivetime catchment. As mentioned on the previous slide whenever more surfaces are added so is a community asset as local sports organizations can use the surfaces whenever tournaments are in town. Source: Johnson Consulting Minimum Facility Threshold (240-Minute) Ice Hockey/ Ice Skating 3 Rinks Baseball/Softball 12 Diamonds Soccer/Lacrosse/ Football 12 Rectangular Fields Basketball/ Volleyball 8 Courts Page 240 of 959 58 Market Penetration Total Market Penetration Across Different Scenarios The chart to the right shows how many total participants (from both community use and sports tourism) each kind of facility would attract under each scenario. Under every scenario, an indoor sports venue generates the most additional visitors. This is likely due to the number of different indoor sports. An indoor space does not have to just be programmed with basketball or volleyball, but can also have sports like wrestling, cheerleading and dance. If a four or eight court facility were to be added to Dubuque, there would be a total participation of 33,206 and 79,882 users respectively. An 8 and 12 field baseball facility would attract 22,633 and 52,624 users respectively. Given the popularity of the Field of Dreams tournament, any number of high-quality fields that are built in the Dubuque area would be used for tournaments. The indoor facility would have more sports uses and less weather constrictions than the baseball fields but would have to market the facility more actively. Adding a sheet of ice to the ImOn arena would certainly bring more visitation to the arena than there currently is, but they would have to compete with other facilities such as the ImOn Arena in Cedar Rapids and the Capital Ice Arena in the Madison area. Adding two sheets of ice would position the facility to be at a competitive advantage to the other two sheet facilities. However, due to the concentration of facilities in the Chicago and Milwaukee areas, it will be much harder to attract teams from these metro areas to come all the way to Dubuque. Source: Esri, NSGA Sports Participation Survey, NRPA, Johnson Consulting Market Penetration by Sport and Scenario *Sports Include Baseball, Softball, Ice Hockey, Figure Skating, Volleyball, Basketball, Cheerleading, Gymnastics, Wrestling, Soccer, Tennis, Pickleball, Lacrosse 9,008 33,206 79,882 3,212 10,706 39,567 8,515 22,633 52,624 2,180 7,321 46,366 0 20,000 40,000 60,000 80,000 100,000 Existing Facilities Regional Facility National Facility Indoor Sports Rectangular Fields Diamonds Ice 73,866 218,440 22,916 Page 241 of 959 59 Industry Trends Iowa Sports Trends The table to the right shows the Average Economic Impact of Sporting Events in Iowa. While baseball does not have the largest impact per event, due to the number of events, it generates a sizable amount of income. While national trends have seen decreases in baseball and softball partially due to specialization, Dubuque has seen an increase in participation due to the nearby Field of Dreams movie site field as well as the success of local high school and college baseball teams. More broadly, most sports are seeing an increase in participation since COVID. Paired with Dubuque’s high sports participation rate, Dubuque’s low inventory of facilities in the area is an issue for Dubuque residents who are eager to play. According to the National Recreation and Park Association (NRPA), Dubuque is drastically underserved for a community of its size. Dubuque’s current market penetration rate tells a similar story. Currently, Dubuque attracts a very small amount of sports tourism with the Field of Dreams tournaments being the only regional attraction. The addition of a large, centralized indoor court space would have the largest economic impact for the Dubuque area due to its year-round usability and number of sports the facility could host. Sport Average Impact Per Event Baseball $294,566 Multi-Sport*$1,059,878 Football $147,522 Wrestling $406,557 Basketball $309,215 Volleyball $241,095 Cheer & Dance $373,397 Soccer $317,127 Golf $68,800 Cycling $93,935 Source: Huddle Up Group, Travel Iowa, iTIP Average Economic Impact of Sporting Events in Iowa *Multi-Sport includes events like the Special Olympics, AAU Junior Olympics, Iowa Senior Games, etc. Page 242 of 959 60 Industry Trends Implications Despite specialization’s decrease in the number of sports per participant, total youth team sports participation has overall increased. Participation in a single sport is typically more intense and involves more practices, games and tournaments than casual participation in multiple sports. This contributes to an increase in sports tourism. Additionally, most sports have seen an increase in participation since 2020, as more restrictions lifted there was a boost in participation. Notably there has been an increase in women’s sports including basketball, volleyball and gymnastics. Dubuque residents show an affinity towards sports with their high participation numbers. However, Dubuque does not have the requisite facilities to handle the community’s desired level of participation. Local organizations are forced to use the limited number of school gymnasiums for indoor sports, outdoor soccer organizations struggle to find enough space for their growing organizations and the ImOn Arena is not big enough for the hockey and figure skating organizations in Dubuque. The lack of facilities not only indicates that the local organizations’ needs aren’t being met, but also the city’s sports tournaments aspirations are harder to meet. Dubuque is extremely lacking in hosting sports tourism events. The Dubuque region is able to attract a strong number of visitors for baseball tournaments due to the popularity of the Field of Dreams tournament and movie site. However, the Field of Dreams Tournament isn’t attracting teams because of the high-quality fields and the construction of more fields would lead to increased sports tourism. Page 243 of 959 3.2 Comparative Market Analysis Page 244 of 959 62 Comparative Market Analysis Case Studies Overview The following case studies were chosen as examples of leading industry trends and best practices in relation to proposed development improvements based in sports and recreation on Schmitt Island. The case study set includes a variety of facilities that may include indoor, outdoor, and multipurpose programming. This subsection of the report includes detailed profiles of each destination that describe key programming, development, and operating characteristics as well as a benchmarking exercise to compare each of the venue’s markets and other attributes to that of Dubuque. Dubuque Key Facility 1 Community First Champions Center - Appleton, WI 2 TBK Bank Sports Complex - Bettendorf, IA 3 MidAmerican Energy RecPlex - West Des Moines, IA 4 FunCity Courts & FunCity Turf - Burlington, IA Map Legend Page 245 of 959 63 Comparative Market Analysis Community First Champion Center Year Opened: 2019 Ownership/ Management: The Town of Grand Chute owns the facility while Fox Cities Sports Development, Inc. manages the facility with 7 full time employees. Size: The 164,000 SF indoor facility sits on approximately 11 acres. Cost: The cost of construction in 2019 was $30 million, which would translate to approximately $37 million today. The cost of construction was provided by a 3% hotel tax, which also helped fund the Fox Cities Exhibition Center. Facilities: The Community First Champion Center is a preeminent indoor sports facility in the Midwest, located in the Fox Cities region of northeastern Wisconsin. The facility features a year- round ice rink, a fieldhouse, and an arena that transitions from an ice rink and hardwood courts, depending on the season. The rink is NHL-sized, and has seating for 1,000. The fieldhouse has 4 basketball courts, which can be converted to 8 volleyball courts, and has seating for 800. The seasonal arena switches between an NHL-sized ice rink and 4 basketball courts (or 6 volleyball courts), and has seating for 300. In addition to these sports spaces, the venue has 10 locker rooms, 3 team meeting rooms, a Champion Links Golf Simulator, an on-site physical therapy clinic, a trainer’s room, concessions, and an observation deck and mezzanine for spectators Page 246 of 959 64 Comparative Market Analysis Community First Champion Center Rental Rates: •Basketball courts: $60/hour •Pickleball courts: $15/hour •Open skate: $7/hour •Other surfaces and event rentals are negotiable. Demand: The Community First Champion Center attracts regional and national tournaments for hockey, basketball, and volleyball, and hosts youth sports camps and community events. The facility is truly multi-purpose in its design and programming, with flexible sports spaces as well as space devoted to services (i.e., physical therapy, massage, personal training, etc.) and to meetings. In 2022, the facility was activated 357 days out of the year with a total of 66 tournaments, 37,000 participants, and 57,000 spectators. Those 66 tournaments held at the facility generated 13,725 room nights and nearly $4.3 million in direct visitor spending in the Fox Cities. Page 247 of 959 65 Comparative Market Analysis TBK Bank Sports Complex Year Opened: 2018 Ownership/ Management: The complex is privately owned by a coalition of private residents and business leaders TBK Bank Sports Complex and JP Sports. Size: The 273,000 SF indoor complex, accompanied by the outdoor fields, sits on 76 acres. In 2022, plans for expansion will add on an additional 109 acres to the development. The expansion plans include two new multiuse fields, a 3-story golf facility, a new hotel, as well as retail, dining, and bars. Cost: The original development in 2018 cost $50 million. The planned expansion, to be completed by the end of 2024, is expected to cost approximately $75 million. The city has agreed to $5.8 million in economic development grants and a 75% tax increment finance rebate over the next 20 years. Facilities: TBK Bank Sports Complex is a facility built for players and families alike to enjoy participating in youth sports. On their 76-acre campus, there are two (2) lighted turf soccer fields, two (2) full-size grass fields, ten (10) turf baseball/softball fields that are convertible into 6 more turf soccer fields, and five (5) sand volleyball courts as a part of their outdoor facility. In their indoor, there is a multi-purpose field, eight (8) regulation sized basketball/ (16) volleyball courts, a physical therapy facility, team training areas, and fitness center. Additionally, there is a TBK Entertainment Center with thirty-two (32) bowling lanes, a two- story laser tag room, escape rooms, VR sports, and an arcade. Page 248 of 959 66 Comparative Market Analysis TBK Bank Sports Complex Future plans originally were outdoor turf fields near the new Iron Tee Golf Range. However, announced in fall of 2023, developers now plan to build a 100,000 SF building to house indoor turf fields just east of the TBK Bank Sports Complex. The fields would be utilized for baseball, softball, soccer, football, and lacrosse. Rental Rates: Rates are negotiable with facility staff depending on event type and size. Demand: The TBK Bank Sports Complex hosts a number of tournaments, leagues, clubs, and clinics. The facility also offers in-house club teams for baseball, softball, volleyball, basketball, and soccer. Some of the affiliated sports organizations include the Barnstormer Baseball Club, Texas Glory Fastpitch Softball, Iowa Swarm Basketball, Sporting Iowa East Soccer Club, Quad City Strikers, Platform Elite Basketball Club, TBK Bank Sports Academy, and other TBK Bank leagues. On any given weekend, the complex sees anywhere from 3,000 to 4,000 visitors. The outdoor complex is booked nearly every weekend for baseball, so the planned expansion should provide tournament opportunity for more sports such as rugby and soccer. Page 249 of 959 67 Comparative Market Analysis MidAmerican Energy Company RecPlex Year Opened: 2021 Ownership/ Management: The RecPlex was developed as a unique destination to enhance the quality of life for Central Iowans of all ages and abilities. The City of West Des Moines owns and operates the facility and built a public-private partnership to develop the site to address the demand for a regional, year-round sports facility and the opportunity to grow youth sports programming. Size: The 300,000 SF RecPlex facility, accompanied by three outdoor multipurpose fields, sits on 66 acres. There is a possibility for expansion in adding an additional sheet of ice. Cost: The public-private partnership the city developed allowed for the construction of the facility. Most of the funding came from city bonds, hotel motel tax revenue, loans, local option sales tax revenue, tax increment financing, and state and local grants. Staff has also leveraged the sponsorship and naming rights opportunities available, such as Hy-Vee, Kum & Go, and private donors, as another funding mechanism for the RecPlex. The total cost in 2021 was $59.8 million, including $16.5 million in city bonds backed by future local option sales tax revenue, $16.4 million in city bonds backed by future hotel-motel tax revenue, $12.4 million in corporate and individual donations and pledges, and mix of other grants, loans and tax revenue. The additional sheet of ice would cost north of $30 million and would be funded through private donations, a bond funded through local option sales tax, and grants. Page 250 of 959 68 Comparative Market Analysis MidAmerican Energy Company RecPlex Facilities: The RecPlex features 2 indoor ice arenas, the 150,000 SF Hy-Vee fieldhouse with 3 full sized basketball courts (6 volleyball courts), a multipurpose court, 3 pickleball courts, and a full-sized indoor turf. Each of the hardcourts feature a scoreboard, shot clocks, and seating. There is also a warm up and batting area, an Esports Center, and multipurpose rooms for teams, meetings, and other events such as birthday parties. There are two ice arenas, the Abel Ice Arena with a capacity of 2,400 people, and can double as a 20,000 SF convention space, and the Patty & Jim Cownie Family Arena has seating for 300 spectators. There is parking for 1,200 vehicles on site. Outside, the complex offers three full size turf fields with lighting, restrooms, and internet access. The venue is focused on youth sports and offers soccer, ice hockey, skating, soccer, volleyball, pickleball, basketball, baseball, softball, lacrosse, football, and other athletic, educational, and adaptive programming. The RecPlex has proven to offer access to sports and recreation programs to all ages as well as being an economic driver for the area, impacting almost every business including hotels, restaurants, and retail. The facility is closely located to other key attractions in West Des Moines and there are future plans to continue development adjacent to the RecPlex, including athletic surfaces and commercial development. Page 251 of 959 69 Comparative Market Analysis MidAmerican Energy Company RecPlex Rental Rates: Rental rates for spaces at the facility are listed on the right. Demand: In its first year open, the facility was fully booked with approximately 40 events, 90 event days, and 120,000 attendees, and the high demand for the facility continues today. According to Placer.ai, the facility attracts nearly 900,000 annual visitors, with 22% traveling from over 10 miles away. The ice arena is available to the community for public skating and other programming, such as curling and broomball. The indoor turf is also used for a variety of activities such as Toddler Time and 55+ softball and the outdoor turf is used for ultimate frisbee. The Esports center features 30 computers and 6 gaming consoles, providing for additional programming for all ages. Page 252 of 959 70 Comparative Market Analysis FunCity Turf & FunCity Courts Year Opened: FunCity Turf opened across from the outdoor Burlington Regional RecPlex in 2019 and FunCity Courts opened in 2023. The two facilities are located 3 miles apart. Ownership/ Management: Both facilities are owned and operated by the Greater Burlington Area Sports Facilities organization, a 501(c)(3) nonprofit organization incorporated in the State of Iowa. Management of the facilities are overseen by a 9-person board of directors. The RecPlex across from FunCity Turf is not affiliated with FunCity and is owned by the City of Burlington. FunCity Courts are also a separate entity from the FunCity/Catfish Bend Casino, which is owned and operated by Great River Entertainment. Size: FunCity Turf is a 78,500 SF turf within a dome. FunCity Courts portion of the resort is approximately 27,000 SF (3 basketball courts and 4 dedicated pickleball courts). Cost: The FunCity Turf Air-Supported Dome cost $4.3 million to build. FunCity Courts was the second and final phase of a project aimed at increasing sports tourism in the Burlington Area. $6.1 million has been raised for the project through the Imagine Campaign and $3.1 million was invested by a private investor who also helped fund the feasibility studies. Page 253 of 959 71 Comparative Market Analysis FunCity Turf & FunCity Courts Facilities: FunCity Turf is a 94,000 SF facility with a 78,500 SF artificial turf. The turf can convert into up to 8 soccer fields, two youth softball fields, and other sports. There are also bating and pitching cages available for local teams. This facility offers a variety of concessions and also serves Anheuser Busch products as of 2019. FunCity Courts are located at Catfish Bend Casino FunCity Resort. There is a hotel, casino, waterpark, bowling, an arcade, dining options, and other entertainment housed on the same site as the FunCity Courts. FunCity Courts offers three full-sized collegiate basketball courts that can also be used for volleyball, as well as four pickleball courts. FunCity operated a Snack Shake in the courtside area in addition to the other dining options in the complex. Page 254 of 959 72 Comparative Market Analysis FunCity Turf & FunCity Courts Rental Rates: The FunCity Turf offers Open Dome times when there are no scheduled practices, games our tournaments. Entry is $5 for everyone entering the facility. FunCity Courts also offer Open Play sessions; $5 for basketball and volleyball and $10 for pickleball. Rental rates for both facilities are shown at right. Demand: Despite opening last year, FunCity Turf is booked nearly every weekend, especially in the winter months, for tournaments. Weekdays are filled with organized practices and games. FunCity Courts are planned to host over two dozen basketball, volleyball, and pickleball tournaments and leagues for the 2024-2025 season. FunCity Courts are located at the FunCity Resort and Casino and is utilized by local athletes, SCC students, and weekend tournaments. Page 255 of 959 73 Comparative Market Analysis Benchmarking – Facility Development The balance of this subsection will provide a benchmarking analysis across the case study facilities and where applicable, Schmitt Island. As shown at right, the development size, cost, and locational attributes are compared across each case study. TBK Bank Sports Complex covers the largest footprint and was also the most expensive facility. Despite the high cost, an expansion is still underway and nearby development has been catalyzed by the complex. FunCity Courts and FunCity Turf is located furthest away from an international airport and has the lowest number of nearby hotel rooms. This may suggest that primary users are locals, but this could also be a frequent drive-to destination with the FunCity Resort attached to FunCity Courts. This is also a newer facility, and more hotel development may follow. Page 256 of 959 74 Comparative Market Analysis Benchmarking – Athletic Surfaces To understand the athletic surface offerings at each facility, the number of hard courts, fields, diamonds, and ice sheets are benchmarked at right. The courts are counted as basketball courts, meaning this number often doubles in terms of volleyball courts. Fields are any multipurpose grass or turf rectangle, indoor or outdoor. It is important to note that there is a seasonal arena at the Community First Champion Center that is either an arena or can be transitioned into 4 basketball courts (6 volleyball courts) depending on the time of year. This type of multifunctionality running parallel to sports seasons may be an effective design consideration for improvements on Schmitt Island. Pickleball courts, sand volleyball courts, and other additional amenities are also featured across these facilities. Page 257 of 959 75 Comparative Market Analysis Benchmarking – Placer.ai Placer.ai collects geolocational data from mobile devices and extrapolates that data to provide site traffic analyses. Total visitation, average dwell time, visitor frequency, and visitor origin were analyzed for the entire year of 2023. Schmitt Island is already an established destination, attracting over 135,000 visitors annually and has the highest reported dwell times and visitor frequency. TBK Bank Sports Complex and the MidAmerican Energy Company RecPlex both attract over 6 times as many visitors, likely due to the volume of tournaments these destinations attract. Schmitt Island falls behind when looking at out of town visitors. Non-local visitors are defined as those traveling to the destination from over 100 miles away, suggesting they may book a hotel room for the visit. If Schmitt Island develops a sports tourism destination that attracts athletic tournaments, it is likely that the percentage of non-local visitors will increase. Furthermore, as shown on the bottom right graph, TBK Bank Sports Complex has attracted over 18,000 visits from the Dubuque market in the last 12 months. *Visitors to Facility from Nov 1, 2023 - Nov 1, 2024 Source: Placer.AI, Johnson Consulting MidAmerican Energy Company RecPlex West Des Moines, IA FunCity Courts & FunCity Turf Burlington, IA TBK Bank Sports Complex Bettendorf, IA # of Visitors from the Dubuque Metro Area Community First Champion Center Appleton, WI 881 18,201 6,372 3,889 ImOn Arena, McAleece Park, & Petrakis Park Community First Champion Center TBK Bank Sports Complex MidAmerican Energy Company RecPlex FunCity Courts & FunCity Turf 2023 Total Visitation 135,318 592,382 1,421,860 875,335 118,167 Avg. Dwell Time (minutes)213 151 134 129 157 Visitor Frequency*6.4 3.8 4.7 4.4 3.3 2023 % Non-local Visitors**6%14%20%22%24% *Visitor Frequency defined by average times a visitor attends a facility **Defined as visitors traveling from over 100 miles away Note: Data for Mercyhealth Sportscores only reflects visitation to Sportscore Two Source: Placer.ai, Johnson Consulting Placer.ai Data Comparison Page 258 of 959 76 Comparative Market Analysis Benchmarking – 30-Minute Market Analysis The chart at right focuses on the 30-minute radius around each case study facility as well as Schmitt Island. As shown, the comparative markets are somewhat similar as far as age, income, and average household spend on sports. However, Schmitt Island has the 2nd lowest population behind the Burlington market. This suggests that the facility should be designed to serve local demand, but also be oriented for sports tourism to draw in users from a larger catchment area. Page 259 of 959 77 Comparative Market Analysis Benchmarking – 90-Minute Market Analysis When expanding the market analysis to a 90-minute radius around each case study site and Schmitt Island, Schmitt Island comes in above average for median age, median household income, and average household spend on sports. The total population in the 90-minute market also exceeds 1.2 million residents, significantly expanding the pool of users a sports development on Schmitt Island may draw from. Page 260 of 959 78 Comparative Market Analysis Implications The color-coded ranking matrix on this page illustrates a high-level overview of key attributes when considering a sports complex oriented for sports tourism. As shown, the two facilities in Burlington, FunCity Courts and FunCity Turf are ranked the lowest in market, locational, and tournament attributes. Burlington is top-ranked for non- local visitors, but this is likely attributed to FunCity Courts being co-located with FunCity Resort, which includes a casino. This proves that a casino paired with a sports complex, which Schmitt Island has the ability to leverage, may attract more overnight visitors. The other three case studies rank higher than Schmitt Island as far as locational and tournament attributes. Community First Champion Center, TBK Bank Sports Complex, and MidAmerican Energy Company are all located much closer to an international airport and hotel clusters as compared to Schmitt Island and the FunCity facilities. Further, while Schmitt Island or Dubuque does not currently have a high capacity for tournaments, especially indoor, there is substantial acreage on Schmitt Island that may offer a development opportunity for additional indoor surfaces. However, there is also a gap in the market for more high-quality diamonds. The four baseball/softball diamonds on Schmitt Island may be able to host baseball/softball tournaments, but there are opportunities for facility improvement to attract more regional events, but factors such as a hotel supply may be a limiting condition. Market research and stakeholder engagement suggest that there is desire and demand for more athletic surfaces in Dubuque, and becoming a preeminent destination for one or two sports, similar to the models at TBK Bank Sports Complex and Community First Champion Center. Page 261 of 959 79 Comparative Market Analysis Implications The case study facilities were largely financed through partnerships, such as public-private-partnerships with the local municipality. Funding strategies used include hotel tax, TIFs, city bonds, local options sales tax, loans, grants and donations. Another way to fund ongoing operations of a facility is naming rights, of which all four case studies have taken advantage. ImOn Arena on Schmitt Island has already been able to attract a naming rights sponsor and has historically partnered with the City of Dubuque for capital improvements. Communities view sports complexes as local assets but also as economic development catalysts, resulting in government appetite to partner with other entities to develop these projects in their communities. Another key takeaway from the case studies, namely Community First Champion Center, is multifunctionality and flexibility. The seasonal arena at Community First Champion Center allows for an ice sheet during hockey season or additional indoor courts during off-peak ice seasons. This model should be considered when proposing improvements for ImOn Arena in Schmitt Island as there is demand for more ice, but the space can also be utilized in the off-season for other sports or non-sporting events. Success across the case studies and sports complexes nationwide typically relates back to the ability to attract events and host tournaments at the facility, while also serving as a community amenity. A new sports and recreation development on Schmitt Island should be high quality and designed with sports tourism in mind in order to program the facility on the weekends and maintain a revenue stream, but also be accessible to the community on weekdays for single surface rentals for organized practice and games. Page 262 of 959 4. Program Recommendations Page 263 of 959 81 Program Recommendations Overview The Consulting Team has conducted market research, analyzed local and national sports trends, and engaged with the community and local sports organizations in order to evaluate what the Dubuque market can support in regards to sports and recreation. Furthermore, the Consulting Team assessed the site on Schmitt Island to determine what is the most logical development based on the site, market needs, and the opportunity to influence sports tourism in Dubuque. Overall, there is a high level of demand for additional athletic facilities across all sports in Dubuque. Participation rates and the propensity to spend on sports are both projected to increase, but the market is lacking a sufficient number of quality athletic surfaces to support the existing and future demand. Based on sports participation trends and input from local users, there is an inclination towards indoor sports such as basketball, volleyball, and hockey. While other sports such as baseball and softball are reported to be nationally trending down, there is a recognized need for quality baseball and softball diamonds in Dubuque to serve the local school district and higher educational institutions. When considering development on Schmitt Island, there is the advantage of leveraging the existing destination. Not only are there existing athletic offerings on Schmitt Island, including ImOn Arena, McAleece Park & Recreation Complex, and Petrakis Park, the site also offers the Q Casino, a hotel, marina, and planned family entertainment offerings. Schmitt Island is the type of development that traditionally supports sports complexes nationally, offering amenities for daily and overnight visitors. Also, while there is an identified need for quality baseball and softball facilities in Dubuque, it is the judgement of the Consulting Team that due to site constraints, the most appropriate sports and recreation development on Schmitt Island should be based in indoor athletic programming, despite the existing baseball and softball diamonds on site at McAleece Park & Recreation Complex and Petrakis Park. Page 264 of 959 82 Program Recommendations Overview (Continued) On the other hand, there are potential risks when considering a sports and recreation development in Dubuque, and furthermore on Schmitt Island. For example, the hotel supply in the market may be a limiting condition for tournaments and attracting overnight visitors, as most tournament holders require room blocks for their participants and spectators. Additionally, there are existing parking limitations on the Schmitt Island site, which will have to be addressed in order to absorb the projected increased traffic to the site. Other than support infrastructure such as hotel rooms and parking, there are a few factors that will be key to the development and ongoing success of this project, such as exploring partnership opportunities. It will be important to develop the appropriate partnerships for financing, operating, and programming a new sports development on Schmitt Island. Furthermore, the orientation and success of this development will fall under two primary buckets: community use and sports tourism. While the majority of programming for sports tourism will occur on the weekends, the community will be utilizing the facility on weekdays. Base on input from existing local sports participants, there may be a paradigm shift relevant to the rental model that will be required to support a tournament quality facility. Despite these challenges, there is arguably a more significant risk of not developing a sports tourism quality facility in Dubuque, which would result in the persistence of a gap in the local market for athletic facility offerings and the continuation of sports tourism dollars being leaked into other markets. In achieving the goal of evaluating potential sports and recreation development scenarios for the Dubuque market and further, on Schmitt Island, the following Scenarios A-F were assessed. Each scenario was considered in relation to the market demand, feasibility, and viability of development on Schmitt Island. Page 265 of 959 83 Program Recommendations Schmitt Island Development Scenarios Scenario A: Maintaining the site on Schmitt Island including ImOn Arena, McAleece Park & Recreation Complex, and Petrakis Park as-is. The Consulting Team has concluded that there is a strong market opportunity for a facility in Dubuque and on Schmitt Island and there is an abundance of need for additional athletic facilities across all sports. Not developing a sports and recreation complex would be a missed opportunity for the market. Page 266 of 959 84 Program Recommendations Schmitt Island Development Scenarios Scenario B: Developing a small sports complex in addition to ImOn Arena as well as improving the existing baseball and softball diamonds at McAleece Park & Recreation Complex and Petrakis Park. This scenario also plans for a future expansion of ice at ImOn Arena. One goal of the sports and recreation development on Schmitt Island is to encourage year-round site activation. Due to the seasonal limitations of baseball and softball, there will be less site activation as a result of baseball and softball programming compared to indoor sporting events. This scenario also restricts the capability of developing a full-fledged multipurpose indoor facility as there are only 4 basketball courts in this scenario. Page 267 of 959 85 Program Recommendations Schmitt Island Development Scenarios Scenario C: A focus on the fields with improvements and upgrades to two of the existing baseball and softball diamonds at McAleece Park & Recreation Complex and Petrakis Park and converting the other two diamonds into multipurpose fields. No improvements to ImOn Arena. Similarly to Scenario B, while there is an identified need in the community for improved baseball and softball diamonds, Scenario C will result in a challenge to stimulate year-round foot traffic to the site compared to an indoor facility. While there is demand for quality baseball and softball diamonds in Dubuque, it is of the judgement of the Consulting Team that baseball and softball diamonds may not be the highest and best use of the Schmitt Island site. Further, this Scenario does not include upgrades or expansion plans to ImOn Area, resulting in the persistence of an unmet demand in the market for indoor athletic space. Page 268 of 959 86 Program Recommendations Schmitt Island Development Scenarios Scenario D: A full indoor sports court and turf complex buildout on one existing baseball/softball diamond at McAleece Park & Recreation Complex and Petrakis Park while preserving and upgrading the other three diamonds. There will also be an addition to ImOn Arena to develop one seasonal ice sheet that has the capability to transition from ice to courts or turf during the off-season for ice sports. The size and scale of this development scenario may be too robust for the Dubuque market and the regional draw for indoor turf may be limited. Scenario D would also require the displacement of one of the existing baseball and softball diamonds at McAleece Park & Recreation Complex and Petrakis Park and a relocation effort would be necessary in order to continue to serve key user groups. Page 269 of 959 87 Program Recommendations Schmitt Island Development Scenarios Scenario E: A large indoor sports complex on two of the four existing baseball and softball diamonds at McAleece Park & Recreation Complex and Petrakis Park. One baseball diamond and one softball diamond would be maintained and improved and one seasonal ice sheet that has the capability to transition from ice to courts or turf during the off-season for ice sports would be added to ImOn Arena. The Consulting Team considers this scenario to be the most appropriate for the market opportunity and feasibility of development on Schmitt Island due to the development of the additional ice sheet and volume of indoor court space. However, due to the cost associated with two separate facilities, this scenario would likely only be viable if key baseball and softball diamond users are project partners, such as the local school district and higher education institutions. Page 270 of 959 88 Program Recommendations Schmitt Island Development Scenarios Scenario F: A small indoor sports complex and one seasonal ice sheet that has the capability to transition from ice to courts or turf during the off-season for ice sports, both attached to ImOn Arena. One baseball diamond and one softball diamond would be maintained and improved at McAleece Park & Recreation Complex and Petrakis Park while the other two diamonds will transition to multipurpose outdoor fields. Scenario F, while limited by not developing a full-fledged indoor facility and necessitating key baseball and softball programming partners, this scenario is likely the most viable for not only the Dubuque market, but particularly for the Schmitt Island development site. This scenario addresses the local need for additional athletic surfaces without fully displacing the baseball and softball facilities on Schmitt Island, and enabling the site to attract indoor athletic tournaments without overloading site capacity Page 271 of 959 89 Program Recommendations Observations It is of the opinion of the Consulting Team that Scenarios A-C are the least effective options to achieve the goal of catalyzing Sports Tourism in the market. Due to the limitations of the baseball/softball season, existing regional facilities, and other proximate developments in the pipeline, it is suggested that other athletic surfaces, such as multipurpose indoor and ice, be the focus of a new sports complex in Dubuque. While there is a demand for baseball and softball facilities in Dubuque, Schmitt Island is not the ideal site, and an indoor sports and recreation complex is more logical to be located on Schmitt Island. Looking through the lens of sports tourism, the Consulting Teams views Scenarios D-F as the most viable options to advance the sports tourism market in Dubuque. There is a strong case for additional indoor surfaces such as indoor courts and ice. Existing facilities that are offered in Dubuque are often unavailable for use due to availability and quality challenges. Further, Scenario F is positioned to be the highest and best use of the site on Schmitt Island to develop a sports and recreation complex to serve local demand while also attracting regional and national events to the market. This scenario preserves the baseball/softball diamonds to allow for continued use by key user groups, while also developing an indoor complex with a seasonal arena to expand local utilization and event opportunity. This will result in year-round site activation from all sports programming without putting strain on the site limitations. From a financial feasibility standpoint, Scenario F is a culmination of the research conducted by the Consulting Team to right-size the business model to be viable from both community and sports tourism perspectives. Overall, the outcome of the market analysis makes a strong case for programming for indoor courts and ice on Schmitt Island. One challenge for indoor courts may be the price elasticity of the market and the practicality of local users shifting to higher rental rates. Further, there will be operational cost savings for a development additional ice sheet, suggesting that if the development approach were to be phased, ice should be the primary focus. In the vein of viability, leveraging public-private partnerships will be essential for an improved sports and recreation destination on Schmitt Island from development to operations. Beyond Schmitt Island, this project should catalyze community-wide economic development, such as the growth in hotel room supply and other supporting infrastructure in response to the projected increased market visits. Page 272 of 959 5. Demand Projections, Economic & Fiscal Impacts, and Funding Strategies Page 273 of 959 5.1 Demand Projections Page 274 of 959 92 Demand Projections Overview To properly estimate the potential demand for a new indoor sports complex, the historical operations at existing athletic facilities, including ImOn Arena, were extensively analyzed in order to understand the existing conditions. The historical operation data was then used to develop recommendations relative to the proposed facility’s program (e.g., number of surfaces, community space, and other amenities). Based upon this program, and considering the historical and existing demand, we projected demand at an expanded indoor facility. Johnson Consulting is of the opinion that many of the projected utilization levels as well as rental rates assumed are fairly conservative and in line with this conceptual planning phase of the proposed development. The following subsection will provide separate demand projections for the additional ice sheet at ImOn Arena and the indoor sports complex expansion. Key Assumptions It is important to note that prior to reviewing the following projections, a set of initial assumptions had to be made in order to properly form a business plan for the proposed indoor sports complex on Schmitt Island. The following demand projections are based on the programming recommendations from the Consulting Team, which includes adding an additional seasonal ice sheet to ImOn Arena and an indoor court facility expansion that includes 6 basketball courts. For the purpose of this analysis, Johnson Consulting assumed that: •Schmitt Island, and further, the existing ImOn Arena building, is the development site. • All existing contracts and agreements with ImOn Arena will be renegotiated. •A public-private partnership will be leveraged for development. •A third-party operator will oversee daily operations. Page 275 of 959 93 Demand Projections It often takes time for facilities to reach maximum utilization levels, but as this development is building off of an already established destination on Schmitt Island at ImOn Arena, the complex will be a distinguished regional asset. During the first few years of operations, there will be a need for an in-house promoter, local sports organizations, and the facility manager to target tournaments and promote rentals, especially for the indoor court space. Establishing a presence in the growing indoor sports facility market will be important in nurturing what effectively amounts to a new market niche for the City of Dubuque and the greater region, as there is not a similar facility within a 90-minute drive of the project site. With this development, the demand profile at the indoor complex will, over time, increase in volume and improve in quality. The following demand sectors can be expected: Tournaments – Based upon interviews with local industry professionals, there are currently insufficient facilities in the area to host local and regional winter indoor tournaments particularly for hockey, basketball, and volleyball. The addition of a new facility with greater capacity and amenities is perceived to have the ability to attract regional youth sport associations. In addition, the location of the hotels and family entertainment infrastructure will encourage overnight visits by attendees, generating additional room nights and increasing the economic impact in the surrounding area. League Play – The indoor ice and multipurpose sports complex will be a natural fit for local league play, which will generate weekday demand that may not otherwise be filled through tournament play. Both youth and adult leagues are suitable for the facility. In order to ensure a seamless integration into the market, the facility should work to expand existing leagues that are short on ice and indoor court space. There is already an established league calendar for ImOn Arena, which is expected to grow with the additional sheet of ice. Camps/Clinics/Lessons/Practice – Similar to tournaments and leagues, camps, and clinics can either be held by outside promoters that rent the facility to hold the event, or held in-house with participants charged an entrance fee. Camps are currently offered by some local facilities, but the size and quality of the new facility will enable it to handle larger camps and sports festivals that could possibly draw from a larger market as well. These types of events can expect to last three-to-four days and draw professional athletes and coaches as instructors. Lastly, the facility can be made available to Dubuque Public Schools and local higher educational institution’s sports teams that are in need of indoor ice and court space. Page 276 of 959 94 Demand Projections Skills Training – Another type of event that could be used to maximize use of the facility is skills training sessions. Skills training would draw demand from those already using the facility for other events. This event type would likely consist of hour-long rentals that can be offered during downtime at the facility during the week when there is no league play. This training can be for both the ice as well as courts, depending on the type of sports. Consumer Shows – Regionally, there seems to be limited opportunity for such events; however, hosting occasional consumer shows and festivals will act as ‘filler’ for weekends when demand for tournaments and other sports-related functions are low due to seasonality. Ideally, the promotional arm of the facility would take an active role in attracting and developing consumer shows and festivals at the venue. Consumer shows would target more of a local attendance base, offering home improvement and other related types of shows. This event type will generate most of its room night demand from exhibitors and has proven successful in sports facilities similar to the one proposed. Festivals and Other Events – In addition to the above events, the facility could also serve as a venue for corporate rentals, parties, shows and community events. The indoor facility would be able to further maximize the number of event days by hosting other non-sports related events to fully utilize the facility during off-season periods of the year. The sports complex will not compete with the current event venues in Dubuque, but rather host events that cannot be accommodated anywhere else during non-peak season. Page 277 of 959 95 Demand Projections Events & Attendance The table at right presents a projected event demand calendar for the indoor sports complex and ice arena’s first 10 years of operations. As is common with these types of facilities, demand is expected to ramp up and reach stabilization in Year 5. The primary driver of events will be new demand currently unable to be accommodated at existing facilities. As shown, in Year 5, there is projected to be 209 annual events and 126,561 total attendees, including both participants and spectators. Multipurpose Indoor Sports Complex & Ice Arena Complex - Dubuque, IA Events & Attendance Year 5 (Stabilization) Participant Spectator Total Activity Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Attendance Attendance Attendance Tournaments - Regional Ice Sports 5 6 6 7 7 7 7 7 7 7 4,200 8,400 12,600 Basketball 3 4 5 5 5 5 5 5 5 5 5,000 12,500 17,500 Volleyball 5 6 7 8 8 8 8 8 8 8 4,000 10,000 14,000 Wrestling 2 2 3 3 3 3 3 3 3 3 1,200 3,000 4,200 Pickleball 4 5 5 6 6 6 6 6 6 6 6,000 15,000 21,000 Gymnastics 1 2 2 2 2 2 2 2 2 2 2,000 5,000 7,000 Cheer 1 1 1 1 1 1 1 1 1 1 1,000 2,500 3,500 Other (Martial Arts, Judo/Jiu Jitsu)1 2 2 2 2 2 2 2 2 2 900 2,250 3,150 Tournaments - Local Ice Sports 7 8 8 9 9 9 9 9 9 9 2,700 5,400 8,100 Basketball 3 4 5 5 5 5 5 5 5 5 3,000 6,000 9,000 Volleyball 1 2 2 2 2 2 2 2 2 2 600 1,200 1,800 Wrestling 0 0 0 0 0 0 0 0 0 0 0 0 0 Pickleball 3 4 5 5 5 5 5 5 5 5 1,250 2,500 3,750 Gymnastics 0 0 0 0 0 0 0 0 0 0 0 0 0 Cheer 0 0 0 0 0 0 0 0 0 0 0 0 0 Other (Martial Arts, Judo/Jiu Jitsu)1 1 1 1 1 1 1 1 1 1 225 450 675 Leagues Ice Sports 62 70 74 78 82 82 82 82 82 82 6,888 6,888 13,776 Basketball 8 10 12 13 13 13 13 13 13 13 2,600 2,600 5,200 Volleyball 8 10 12 13 13 13 13 13 13 13 1,300 1,300 2,600 Wrestling 0 0 0 0 0 0 0 0 0 0 0 0 0 Gymnastics 2 2 3 3 3 3 3 3 3 3 600 600 1,200 Cheer 3 4 5 5 5 5 5 5 5 5 1,500 1,500 3,000 Other (Martial Arts, Judo/Jiu Jitsu)0 0 0 0 0 0 0 0 0 0 0 0 0 Camps/ Clinics/ Lessons Ice Sports 6 7 7 8 8 8 8 8 8 8 600 600 1,200 Basketball 3 4 5 5 5 5 5 5 5 5 250 250 500 Volleyball 3 4 5 5 5 5 5 5 5 5 250 250 500 Wrestling 1 2 2 2 2 2 2 2 2 2 100 100 200 Pickleball 3 3 4 4 4 4 4 4 4 4 200 200 400 Gymnastics 1 1 1 1 1 1 1 1 1 1 50 50 100 Cheer 2 2 3 3 3 3 3 3 3 3 150 150 300 Other (Martial Arts, Judo/Jiu Jitsu)5 5 6 7 7 7 7 7 7 7 175 175 350 Special Events Special/Community/Miscellaneous Events 1 2 2 2 2 2 2 2 2 2 3,000 0 3,000 Total 145 172 193 205 209 209 209 209 209 209 45,818 80,743 126,561 Source: Johnson Consulting Page 278 of 959 5.2 Economic & Fiscal Impact Analysis Page 279 of 959 97 Economic & Fiscal Impact Analysis Overview Economic Impact is defined as incremental new spending in an economy that is the direct result of certain activities, facilities, or events. For the purpose of this analysis, impact totals are discussed in terms of the Dubuque economy. The levels of impacts are described as follows: Direct Spend – spending that occurs as a direct result of the facility’s operation (example: attendee purchases meal at restaurant nearby). Indirect Spend – re-spending of the initial direct expenditures on goods and services (example: restaurant purchases more food from supplier). Induced Spend – changes in local consumption due to the personal spending by employees whose incomes are supported by direct and indirect spending (example: waiter at the restaurant has more personal income to spend). Increased Earnings – measures increased employee and worker compensation related to the facility’s operation. Employment – measures the number of full-time equivalent (FTE) jobs supported in the local economy as a result of the facility’s operation. Fiscal Impact – reflects tax revenues to local and state governments that result from the facility’s operation. Page 280 of 959 98 Economic & Fiscal Impact Analysis Rates The table on the upper right summarizes the multiplier rates utilized in the economic impact estimates to calculate indirect spending, induced spending, increased earnings, and employment. These multiplier rates are derived from an IMPLAN input- output model, which is a nationally recognized analytical tool commonly used to estimate economic impacts. An input-output model analyzes the commodities and income that normally flow through various sectors of the economy. Tax Rates The table on the bottom right summarizes the applicable tax rates utilized in the fiscal impact estimates. They focus on the taxes directly affected by visitors’ spending activities: •General Sales Tax – is 7.0 percent total, which includes State sales tax at 6 percent and County sales tax at 1.0 percent. There is no City sales tax. •Hotel/ Motel Tax – is applied to hotel room sales, in addition to Sales and Use Tax . Transient Occupancy Tax is 7.0 percent. Multipurpose Indoor Sports Complex & Ice Arena Complex - Dubuque, IA Economic Impact Multilpiers Impact Multiplier Base Indirect Spending 0.2327 per $1 of direct spending Induced Spending 0.1950 per $1 of direct spending Increased Earnings 0.2693 per $1 of direct spending Increased Employment 13.2444 per $1 million of direct spending Source: Johnson Consulting Multipurpose Indoor Sports Complex & Ice Arena Complex - Dubuque, IA Applicable Tax Rates Rate General Sales Tax State Sales Tax 6.0%of total spending County Sales Tax 1.0%of total spending Total 7.0% Hotel Occupancy Tax County TOT 7.0%of spending on lodging Source: IA Dept. of Revenue Page 281 of 959 99 Economic & Fiscal Impact Analysis Estimated Regional Impacts – Multipurpose Indoor Sports Complex The table at right summarizes the estimated activity and spending volume at the proposed indoor sports complex for regional events. Regional and special events, unlike local events, are assumed to attract overnight visitors, resulting in lodging tax revenues, meals, and other expenses, for these events. As shown, in Year 5, the complex is estimated to generate 35,175 room nights, generate $14.3 million in total spending, 133 jobs, $2.7 million in increased earnings, and $1 million in total tax revenues from sales and lodging taxes. Multipurpose Indoor Sports Complex - Dubuque, IA Economic and Fiscal Impacts - Regional Tournaments / Special Events Assumptions Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Activity Volume # of Events*18 24 27 29 29 29 29 29 29 29 Attendance Participants 12,476 16,634 18,714 20,100 20,100 20,100 20,100 20,100 20,100 20,100 Spectators 31,190 41,586 46,784 50,250 50,250 50,250 50,250 50,250 50,250 50,250 Total 43,666 58,221 65,498 70,350 70,350 70,350 70,350 70,350 70,350 70,350 Length of Stay 2.5 Nights Est. Room Nights (assumes double occupancy)Ratio Of Participants 40.0%6,238 8,317 9,357 10,050 10,050 10,050 10,050 10,050 10,050 10,050 Of Spectators 40.0%15,595 20,793 23,392 25,125 25,125 25,125 25,125 25,125 25,125 25,125 Total 21,833 29,110 32,749 35,175 35,175 35,175 35,175 35,175 35,175 35,175 Est. Spending Volume ($000) On Lodging $120.00 / RN $2,620 $3,581 $4,129 $4,546 $4,659 $4,776 $4,895 $5,017 $5,143 $5,271 On Meals and Incidentals $69.00 / P 3,013 4,118 4,748 5,227 5,358 5,492 5,629 5,770 5,914 6,062 Total Direct Spending $5,633 $7,698 $8,877 $9,773 $10,017 $10,268 $10,524 $10,788 $11,057 $11,334 Economic Impact ($M)Multipliers Direct Spending $5.6 $7.7 $8.9 $9.8 $10.0 $10.3 $10.5 $10.8 $11.1 $11.3 Indirect Spending 0.2327 1.3 1.8 2.1 2.3 2.3 2.4 2.4 2.5 2.6 2.6 Induced Spending 0.1950 1.1 1.5 1.7 1.9 2.0 2.0 2.1 2.1 2.2 2.2 Total Spending $8.0 $11.0 $12.7 $14.0 $14.3 $14.7 $15.0 $15.4 $15.8 $16.2 Increased Earnings 0.2693 $1.5 $2.1 $2.4 $2.6 $2.7 $2.8 $2.8 $2.9 $3.0 $3.1 Employment (FTE jobs)13.2444 75 102 118 129 133 136 139 143 146 150 Fiscal Impact ($000)Rate State Sales Tax 6.00%$0.3 $0.5 $0.5 $0.6 $0.6 $0.6 $0.6 $0.6 $0.7 $0.7 County Sales Tax 1.00%0.06 0.08 0.09 0.10 0.10 0.10 0.11 0.11 0.11 0.11 County TOT 7.00%0.2 0.3 0.3 0.3 0.3 0.3 0.3 0.4 0.4 0.4 Total $0.6 $0.8 $0.9 $1.0 $1.0 $1.1 $1.1 $1.1 $1.1 $1.2 Source: Johnson Consulting Page 282 of 959 100 Economic & Fiscal Impact Analysis Total Economic Impact – Multipurpose Indoor Sports Complex The table below summarizes the estimated spending volume at the proposed indoor sports complex for local, regional, and special events combined. As shown, in Year 5, the sports complex is estimated to generate $16.6 million in total spending, 154 jobs, $3.1 million in increased earnings, and $1.1 million in total tax revenues. Multipurpose Indoor Sports Complex - Dubuque, IA Economic and Fiscal Impacts - Local and Regional Tournaments / Special Events Assumptions Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Economic Impact ($M)Multipliers Direct Spending $6.8 $9.0 $10.3 $11.3 $11.6 $11.9 $12.2 $12.5 $12.8 $13.2 Indirect Spending 0.2327 1.6 2.1 2.4 2.6 2.7 2.8 2.8 2.9 3.0 3.1 Induced Spending 0.1950 1.3 1.8 2.0 2.2 2.3 2.3 2.4 2.4 2.5 2.6 Total Spending $9.7 $12.9 $14.7 $16.1 $16.6 $17.0 $17.5 $17.9 $18.3 $18.8 Increased Earnings 0.2693 $1.8 $2.4 $2.8 $3.0 $3.1 $3.2 $3.3 $3.4 $3.5 $3.5 Employment (FTE jobs)13.2444 90 120 136 150 154 158 162 166 170 174 Fiscal Impact ($000)Rate State Sales Tax 6.00%$0.4 $0.5 $0.6 $0.7 $0.7 $0.7 $0.7 $0.8 $0.8 $0.8 County Sales Tax 1.00%0.07 0.09 0.10 0.11 0.12 0.12 0.12 0.13 0.13 0.13 County TOT 7.00%0.2 0.3 0.3 0.3 0.3 0.3 0.3 0.4 0.4 0.4 Total $0.7 $0.9 $1.0 $1.1 $1.1 $1.2 $1.2 $1.2 $1.3 $1.3 Source: Johnson Consulting Page 283 of 959 101 Economic & Fiscal Impact Analysis Construction Impacts – Multipurpose Indoor Sports Complex The estimated hard cost of construction of the indoor sports complex, as provided by RDG, is approximately $20 million. The one-time construction impact of this development is projected to generate 370 jobs, $10.3 million in total spending, and $720,000 in total tax revenues. Multipurpose Indoor Sports Complex - Dubuque, IA Estimated One-Time Construction Impact- Indoor Multiplier or Tax Rate Amount Est. Hard Costs for Development $20,000,000 Impact on Construction Jobs % of Costs Spent on Labor 55.0% Labor Costs $11,000,000 Average Construction Laborer Salary $30,000 # of On-Site Construction Jobs 370 ✓ Economic Impact % of Costs Spent on Material 45.0% Material Costs $9,000,000 % Spent Locally 80.0% Direct Construction Spending $7,200,000 Indirect Spending 0.23 1,680,000 Induced Spending 0.20 1,400,000 Total Spending $10,280,000 ✓ Increased Earnings 0.27 $1,940,000 ✓ Employment (in FTE Jobs)13.24 100 ✓ Fiscal Impact Sales Tax 7.00%$720,000 Total $720,000 ✓ Source: Johnson Consulting Page 284 of 959 102 Economic & Fiscal Impact Analysis Estimated Regional Impacts – Ice Arena Complex The table at right summarizes the estimated activity and spending volume at the proposed ice arena complex for regional events. Regional and special events, unlike local events are assumed to attract overnight visitors, resulting in lodging tax revenues, meals, and other expenses, for these events. As shown, in Year 5, the ice arena complex is estimated to generate 11 ,644 room nights, generate $4.5 million in total spending, 41 jobs, $800,000 in increased earnings, and $300,000 in total tax revenues from sales and lodging taxes. Ice Arena Complex - Dubuque, IA Economic and Fiscal Impacts - Regional Tournaments / Special Events Assumptions Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Activity Volume # of Events*12 14 14 16 16 16 16 16 16 16 Attendance Participants 5,175 6,038 6,038 6,900 6,900 6,900 6,900 6,900 6,900 6,900 Spectators 10,350 12,075 12,075 13,800 13,800 13,800 13,800 13,800 13,800 13,800 Total 15,525 18,113 18,113 20,700 20,700 20,700 20,700 20,700 20,700 20,700 Length of Stay 2.5 Nights Est. Room Nights (assumes double occupancy)Ratio Of Participants 45.0%2,911 3,396 3,396 3,881 3,881 3,881 3,881 3,881 3,881 3,881 Of Spectators 45.0%5,822 6,792 6,792 7,763 7,763 7,763 7,763 7,763 7,763 7,763 Total 8,733 10,188 10,188 11,644 11,644 11,644 11,644 11,644 11,644 11,644 Est. Spending Volume ($000) On Lodging $120.00 / RN $1,048 $1,253 $1,284 $1,505 $1,542 $1,581 $1,620 $1,661 $1,702 $1,745 On Meals and Incidentals $69.00 / P 1,071 1,281 1,313 1,538 1,577 1,616 1,656 1,698 1,740 1,784 Total Direct Spending $2,119 $2,534 $2,598 $3,043 $3,119 $3,197 $3,277 $3,359 $3,443 $3,529 Economic Impact ($M)Multipliers Direct Spending $2.1 $2.5 $2.6 $3.0 $3.1 $3.2 $3.3 $3.4 $3.4 $3.5 Indirect Spending 0.2327 0.5 0.6 0.6 0.7 0.7 0.7 0.8 0.8 0.8 0.8 Induced Spending 0.1950 0.4 0.5 0.5 0.6 0.6 0.6 0.6 0.7 0.7 0.7 Total Spending $3.0 $3.6 $3.7 $4.3 $4.5 $4.6 $4.7 $4.8 $4.9 $5.0 Increased Earnings 0.2693 $0.6 $0.7 $0.7 $0.8 $0.8 $0.9 $0.9 $0.9 $0.9 $1.0 Employment (FTE jobs)13.2444 28 34 34 40 41 42 43 44 46 47 Fiscal Impact ($000)Rate State Sales Tax 6.00%$0.1 $0.2 $0.2 $0.2 $0.2 $0.2 $0.2 $0.2 $0.2 $0.2 County Sales Tax 1.00%0.02 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.04 County TOT 7.00%0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 Total $0.2 $0.3 $0.3 $0.3 $0.3 $0.3 $0.3 $0.4 $0.4 $0.4 Source: Johnson Consulting Page 285 of 959 103 Economic & Fiscal Impact Analysis Total Economic Impact – Multipurpose Indoor Sports Complex The table below summarizes the estimated spending volume at the proposed ice arena complex for local, regional, and special events combined. As shown, in Year 5, the ice arena complex is estimated to generate $5.7 million in total spending, 53 jobs, $1.1 million in increased earnings, and $600,000 in total tax revenues. Ice Arena Complex - Dubuque, IA Economic and Fiscal Impacts - Local and Regional Tournaments / Special Events Assumptions Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Economic Impact ($M)Multipliers Direct Spending $2.9 $3.3 $3.4 $3.9 $4.0 $4.1 $4.2 $4.3 $4.4 $4.5 Indirect Spending 0.2327 0.7 0.8 0.8 0.9 0.9 0.9 1.0 1.0 1.0 1.0 Induced Spending 0.1950 0.6 0.6 0.7 0.8 0.8 0.8 0.8 0.8 0.9 0.9 Total Spending $4.1 $4.8 $4.9 $5.5 $5.7 $5.8 $6.0 $6.1 $6.3 $6.4 Increased Earnings 0.2693 $0.8 $0.9 $0.9 $1.0 $1.1 $1.1 $1.1 $1.2 $1.2 $1.2 Employment (FTE jobs)13.2444 38 44 45 51 53 54 55 57 58 60 Fiscal Impact ($000)Rate State Sales Tax 6.00%$0.2 $0.2 $0.2 $0.2 $0.2 $0.2 $0.3 $0.3 $0.3 $0.3 County Sales Tax 1.00%0.03 0.03 0.03 0.04 0.04 0.04 0.04 0.04 0.04 0.05 County TOT 7.00%0.2 0.2 0.2 0.3 0.3 0.3 0.3 0.3 0.3 0.3 Total $0.4 $0.5 $0.5 $0.5 $0.6 $0.6 $0.6 $0.6 $0.6 $0.6 Source: Johnson Consulting Page 286 of 959 104 Economic & Fiscal Impact Analysis Construction Impacts – Ice Arena Complex The estimated hard cost of construction of the ice arena complex, as provided by RDG, is approximately $28 million. The one-time construction impact of this development is projected to generate 510 jobs, $14.4 million in total spending, and $1.01 million in total tax revenues. Ice Arena Complex - Dubuque, IA Estimated One-Time Construction Impact- Indoor Multiplier or Tax Rate Amount Est. Hard Costs for Development $28,000,000 Impact on Construction Jobs % of Costs Spent on Labor 55.0% Labor Costs $15,400,000 Average Construction Laborer Salary $30,000 # of On-Site Construction Jobs 510 ✓ Economic Impact % of Costs Spent on Material 45.0% Material Costs $12,600,000 % Spent Locally 80.0% Direct Construction Spending $10,080,000 Indirect Spending 0.23 2,350,000 Induced Spending 0.20 1,970,000 Total Spending $14,400,000 ✓ Increased Earnings 0.27 $2,710,000 ✓ Employment (in FTE Jobs)13.24 130 ✓ Fiscal Impact General Sales Tax 7.00%$1,010,000 Total $1,010,000 ✓ Source: Johnson Consulting Page 287 of 959 5.3 Funding Strategies Page 288 of 959 106 Funding Strategies Overview This section discussed recent trends in sports complex funding and provides an inventory of potential funding sources and strategies. Funding a sports complex in Dubuque can be approached through various strategies including public funding, private investments, community partnerships, grants, taxing, and other funding tools. There are programs unique to Dubuque, such as the Iowa Economic Authority Sports Tourism Program, which provides financial assistance for projects that market or promote sporting events in Iowa. Further, sports complexes can leverage funding tools that other public facilities may not, such as, anchor tenant agreements and associations with partners such as higher education institutions. Each funding strategy has its own set of requirements, benefits, and potential challenges. A comprehensive approach that combines multiple funding sources is likely to increase the financial viability of financing a project. Page 289 of 959 107 Funding Strategies Case Study: Community First Champion Center The Community First Champion Center opened in 2019. The facility is owned by the Town of Grand Chute and is managed by the Fox Cities Sports Development Inc. The 164,000 SF facility features an ice rink, a seasonal ice rink that converts into four basketball courts, and a fieldhouse with four additional courts. The initial cost of construction in 2019 was $30 million. Development funding came from a 3% hotel tax, which also helped to fund the Fox Cities Exhibition Center. Case Study: TBK Bank Sports Complex TBK Bank Sports Complex opened in 2018 and is privately owned. The 273,000 SF indoor complex features 8 basketball courts and a multipurpose turf field. There are also 4 rectangular fields and 10 baseball/softball diamonds. The development cost $50 million and was primarily funded through private investments and naming rights. There is also a planned $75 million expansion that will be supported through the City of Bettendorf through $5.8 million in grants and a 20-year 75% tax increment finance rebate. Page 290 of 959 108 Funding Strategies Case Study: MidAmerican Energy Company RecPlex The RecPlex was developed through a public-private partnership with the city. The facility opened in 2021 and offers 300,000 SF of indoor space featuring two ice rinks, with plans to build a third, 4 courts, pickleball courts, and indoor turf, in addition to three outdoor multipurpose rectangular fields. The total cost of development was $59.8 million including $16.5 million in city bonds backed by future local option sales tax revenue, $16.4 million in city bonds backed by future hotel-motel tax revenue, $12.4 million in corporate and individual donations and pledges, naming rights, sponsorships, and a mix of other grants, loans and tax revenue. The additional sheet of ice would cost north of $30 million and would be funded through private donations, a bond funded through local option sales tax, and grants. Case Study: Prospect Meadows Sports Complex Prospect Meadows is a 501(c)3 nonprofit organization that developed an 8 baseball/softball diamonds complex on 128 acres in 2019. The $14 million complex was developed through a combination of public and private funding sources. Approximately $5.9 million was raised from private donors, including Perfect Game who serves as an anchor tenant and commits to bringing 1,000 teams annually to the complex for 15 years. Total fundraising efforts amassed $11 .75 million. $5.85 million was secured from public entities, including Linn County and the cities of Marion and Cedar Rapids. Linn County signed a 95- year lease agreement for the 128 acres. Page 291 of 959 109 Funding Strategies Funding Mechanisms There are numerous financing tools used to fund facilities that could be applied to a sports and recreation development in Dubuque. These include: 1.Pay-As-You -Go Financing: Projects that are relatively small or that are financed in municipalities with rapidly growing tax bases are sometimes paid for directly out of appropriated funds each year. However, the majority of facilities are financed with long-term debt so that payment of capital costs corresponds to the period over which the facility is used and its economic benefits are realized. Some portion of the proposed stadium might be paid for out of the City’s general fund, but that portion is likely to make up a small amount of the overall capital stack. 2.General Obligation Bond Financing: Long-term bonding using the general obligation of the City, County, and/ or State either directly as part of a capital outlay program or as guaranteed debt of an authority that would provide strong credit and relatively low borrowing costs. GO bonding is typically reserved for projects perceived to benefit the population as a whole, such as educational, economic development, or transportation, and the proposed complex certainly falls within this category of projects. This is a strong financing option for this project, though it will be important to identify funds which would make sense to service the debt on them. 3.Revenue Bond Financing: Revenue bonds are another source of finance that can be used to build, own, and operate public purpose facilities that have no power to tax. They derive their revenues from user fees and other sources and must finance general and capital expenditures out of these receipts and whatever amount they are permitted to borrow, which can be tailored to fit the specific requirements of the involved local and state governments. 4.Capital Development Funds: Certain public or non-profit organizations have funds devoted specifically to capital development projects. Often these funds are used for smaller, pay-as-you-go type projects, but they can also make up part of the capital stack on a larger project or improvement plan. This could be a viable funding source, though likely a small part of the overall capital stack. Page 292 of 959 110 Funding Strategies Funding Mechanisms 5.Naming Rights & Sponsorships: Sponsorships and particularly naming rights can be a substantial, long-term revenue stream for facilities. Given the proposed facility’s prominence within Dubuque and projected foot traffic, paired with the already established sponsors, this funding source could be significant, though still a relatively minor part of the overall capital stack. 6.Tourism Improvement District (TID): Similar to a traditional Business Improvement District (BID), a TID is a district in which a special assessment is levied on hotel room sales (and sometimes other sales such as tickets, retail, or meals). The money collected is managed by a dedicated non-profit or advisory board, often made up of local tourism industry stakeholders such as hoteliers and restauranteurs, and used to fund destination marketing and development initiatives. This could be viable for this project given its potential to bolster Dubuque’s tourism and hospitality industry. Taxing Mechanisms In addition to the financing tools described above, there are a number of taxing mechanisms that could be used to fund the sports complex, including: 1.Sales Taxes : Sales tax provides a strong credit structure because it is relatively predictable and tends to track with inflation and economic growth. A general sales tax increase, or expansion of the base, can provide a robust incremental revenue stream. However, these taxes are often difficult to implement because they primarily tax local residents and require referendum and/ or State legislative approval. There are examples of municipalities using a general sales tax, over a fixed period, to finance major capital projects. The quick-pay method enables municipalities to generate the necessary revenue over a short period of time, but a general sales tax is a blunt taxing instrument that does not provide a direct correlation between burden and benefit. Page 293 of 959 111 Funding Strategies Taxing Mechanisms 2.Hotel Occupancy Tax : Hotel taxes have the major advantage of primarily taxing out-of-town visitors, rather than local residents. Given that this facility would contribute to generating local hotel stays, a proportionate amount of hotel tax put to its financing would be reasonable. 3.Food and Beverage Tax : Food and beverage taxes have been used throughout the country to support the costs of developing, and renovating, public assembly facilities and to fund related infrastructure. The revenue potential is significant, as the second highest spend occurs on food service, after lodging. Food and beverage taxes are directed towards beneficiaries of the project and to some extent, non-residents. There may be an opportunity to leverage some portion of existing food and beverage tax revenues, or dedicating an additional point to support development and operations of the sports complex. 4.Tax Increment Financing (TIF): TIFs are based on the incremental tax value of ancillary economic development projects that are triggered by a major facility. The tax base of a defined TIF district is frozen and any increases in the future tax base are used to repay TIF bonds. While typically instated prior to construction of a new facility, they can be applied to support capital improvements and ongoing operations. The most powerful TIFs are those based on sales tax but there are many examples of property tax based TIFs throughout the country. This could be applicable to this project, though a district would need to be established. 5.Development Fees / Land Lease Income: Fees for the right to develop projects near a public assembly facility can assist in funding. These so-called linkage fees have been imposed in locations where land adjacent to a public assembly facility is at a premium, typically on hotels, parking decks, retail stores, and other uses that can benefit from their proximity to the facility. Page 294 of 959 Schmitt Island Development & Sports Complex Feasibility Study February 2025 Page 295 of 959 TABLE OF CONTENTS 2 SE C T I O N 2 PAGE 17: Market Assessment & Regional Facility Audit SE C T I O N 1 PAGE 3: Introduction SE C T I O N 3 PAGE 47: Participation Trends & Comparative Market Analysis SE C T I O N 5 PAGE 90: Demand Projections , Economic & Fiscal Impacts, and Funding Strategies SE C T I O N 4 PAGE 80: Market Supportable Program Recommendations Page 296 of 959 1.1 Introduction Page 297 of 959 4 Introduction Transmittal Letter Re: Schmitt Island Development & Sports Complex Market Feasibility Study DRA: C.H. Johnson Consulting, Inc. (Johnson Consulting) is pleased to submit this report to you regarding the Market Feasibility Study for Schmitt Island Development & Sports Complex. Pursuant to our engagement, this report update fulfills the scope of work outlined in the statement of work submitted by Johnson Consulting to The Dubuque Racing Association on June 8th, 2024. Johnson Consulting has no responsibility to update this report for events, plan modifications, 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 projected results and actual results. Because events and circumstances frequently do not occur as expected, those differences may be material. This report is intended for the Client’s 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 Page 298 of 959 5 Introduction Study Introduction & Methodology Johnson Consulting was retained by the Dubuque Racing Association (DRA) to conduct a market feasibility study for a potential sports complex on Schmitt Island. The study aims to foster the ability of the DRA and the City, as well as any local partner organizations, to make informed decisions regarding the development and continuing operation of a complex. The proposal document submitted to the DRA by Johnson Consulting outlines detailed services for the study. Broadly, the objective of this study is to answer the following questions: ▪What do the characteristics of the local market suggest about Schmitt Island/Dubuque’s ability to support this potential complex? ▪What trends within the sports and entertainment industry could impact the project? ▪What is the overall market opportunity for a new sports complex in Dubuque? ▪What approach positions the DRA to advance the planning and development of the project? In order to answer the questions above, Johnson Consulting developed and executed a comprehensive methodology for the study, which is illustrated by the figure on the right. The observations, analysis, and conclusions of the study will be presented throughout the remaining sections of this report. Market Opportunity Assessment Market Analysis Real Estate Analysis Industry Trends Implementation Roadmap Page 299 of 959 6 Introduction Project Overview Schmitt Island is a part of Dubuque which is a mid-sized city in Iowa on the Mississippi river bordering Wisconsin and Illinois. Dubuque has recently focused on tourism as it is able to attract regional visitors partially due to its picturesque bluffs, proximity to the Field of Dreams Movie Site and other local attractions. Schmitt Island’s Q Casino and ImOn Ice Arena serve as entertainment destinations for the city. Schmitt Island also serves the community as a recreation hub as the Ice Arena and four baseball diamonds at McAleece Park provides practice times for local sports organizations. Longstanding plans to further development Schmitt Island have included expanding these two sports related assets to enhance the functionality of the island. Not only would extra or updated fields provide the community with an asset but could potentially serve to attract sports tourism to the island and city. Additionally, any new complex on the island’s south side would pair well with the Q Casino’s updated family entertainment center and amphitheater, further cementing Schmitt Island as a regional destination. Page 300 of 959 1.2 Executive Summary Page 301 of 959 8 Introduction Executive Summary - Market Assessment Johnson Consulting recognizes that sports complexes are crucial to community sports organizations and are highly beneficial to a community’s tourism industry. The Dubuque region lacks any large-scale sports complex and currently the community uses any available inventory of school and park facilities in Dubuque, but these facilities often face challenges with availability and quality. Through our market analysis, stakeholder engagement, industry trends research, and case study research, Johnson Consulting believes that there is an opportunity to introduce a new venue to the Dubuque market with a unique opportunity to serve the area’s residents and visitors. The Dubuque metro area has positive economic indicators such as above average median household income and low unemployment rates. While these factors would indicate future economic growth in Dubuque, the city is losing young families to larger markets. The exodus from Dubuque is partially due to manufacturing jobs leaving the market, but it is also due to the lack of family focused assets, like a sports complex. This is also evident in the region’s below average spending on sports participation fees, which can indicate either a lack of willingness to spend on fees or a lack of facilities on which to spend those dollars. Page 302 of 959 9 Introduction Executive Summary - Facility Audit As seen by the map on the right, the Dubuque region is deficient in all types of major sports facilities. Other metro areas such as Des Moines, Cedar Rapids, the Quad Cities, Chicago or Milwaukee have venues with large concentrations of surfaces which provides assets for the communities and are used to attract large youth sports tournaments. Dubuque’s local organizations rely on school and park courts for practices and games but the lack of surfaces at a single location and the lack of quality surfaces prevents the region from hosting youth sports tournaments. Local organizations indicated that the lack of available surface time prevents the growth of their organizations and inhibits them from hosting regional tournaments. Dubuque’s inability to host youth sports tournaments has led to participants and their families traveling to different markets for tourism, resulting in dollars leaking to other markets for local use and sports tourism. Legend Dubuque # of surfaces Baseball Hockey Basketball Soccer Page 303 of 959 10 Introduction Executive Summary - Stakeholder Engagement Johnson Consulting met with a wide variety of local organizations in order to gauge the level of interest for a new sports complex on Schmitt Island. It is crucial to engage with a wide variety of individuals and organizations throughout the area and industry to better inform the study’s observations and conclusions. The list to the right details to whom Johnson Consulting spoke through the course of the project. •Northern Iowa Community College •Mayor of Dubuque •Miller Development •Court One •City of Dubuque City Manager •City of Dubuque Leisure Services Director •City of Dubuque Director of Office of Shared Prosperity and Neighborhood Support •City of Dubuque Recreation Division Manager •Dubuque Youth Volleyball •Dubuque Senior Saints Hockey •Dubuque Fossils Hockey •Dubuque Fighting Saints Hockey •Loras College Athletic Director and VP Student Services •Holy Family Catholic Schools •ImOn Arena (Dubuque) •University of Dubuque Soccer •Dubuque Soccer Club •Greater Dubuque Development Corp •Dubuque Community Schools •Travel Dubuque •Q Casino •Dubuque Dream Center •Dubuque Figure Skating •Peosta Community Center •Dubuque County Basketball Academy Page 304 of 959 11 Introduction Executive Summary - Sports Participation Trends Specialization has led to a decrease in sports per participant. Athletes are dedicating themselves to one or two sports rather than playing multiple sports. This has led to the increased popularity of club teams that compete in weekend tournaments that often require traveling. Nationally, sports historically dominated by girls (like volleyball, gymnastics and cheerleading) are increasing in popularity in part due to the rise of female sports stars like Caitlin Clark and Simone Biles. Ice sports have also increased their national popularity as the high fixed costs associated with sports like hockey are easier to justify, if an athlete is playing year- round rather than seasonally. Locally, the popularity of sports is often capped by the number of facilities available. Indoor sports and ice sports in Dubuque are capped due to the lack of courts and ice rinks. Additional surfaces would likely grow the popularity of these sports in Dubuque. Source: SFIA, Johnson Consulting Team Sport Participation & Sports Per Participant 132M 132M 130M 132M 133M 133M 132M 130M 126M 126M 129M 136M 2.14 2.06 2.02 1.99 1.94 1.97 1.92 1.84 1.88 1.85 1.82 1.73 0 0.5 1 1.5 2 2.5 3 0 40 80 120 160 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Total Sport Participants Sports Per Participant Page 305 of 959 12 Introduction Executive Summary - Case Studies Johnson Consulting analyzed 4 case studies in order to inform recommendations for a sports and recreation complex in Dubuque relative to development, operations, financing, and best practices. When comparing Dubuque, and further, Schmitt Island to the case study set, Schmitt Island offers positive attributes such as proximity to existing entertainment options. However, limiting conditions were also identified, such as hotel supply and proximity to a major airport. The design of the case study facilities also offered examples of how a multipurpose sports complex can serve multiple sports and other uses, such as the seasonal ice rink in Appleton. Additionally, case study research provided examples on initial and ongoing development and financing structures that have been successful in other markets, including public-private-partnerships and municipal funding tools. Detailed profiles of each case study facility, as well as a benchmarking exercise, can be found in Section 3 of this report. Page 306 of 959 13 Introduction Executive Summary – Market Supportable Recommendations The Consulting team developed several different scenarios for potential developments on Schmitt Island. The optimal scenario involves 6 additional basketball courts and an additional ice rink to the existing ImOn Arena. This would provide local sports organizations that use either ice rinks or hardwood surfaces a place to practice and host tournaments. The price elasticity of rental rates in the market may prove to be a challenge for the indoor courts, but their ability to host tournaments for multiple sports like basketball, volleyball, wrestling and cheerleading should increase the demand for the facility. While outdoor sports like baseball and soccer are important to the city and locally popular, Schmitt Island’s size and development attributes restrict any sizeable development of outdoor fields. Page 307 of 959 14 Introduction Executive Summary – Development Impacts To properly estimate the demand and associated fiscal and economic impacts for a new development on Schmitt Island including a multipurpose indoor court facility and an addition to the ice arena complex, the historical operations at existing athletic facilities were extensively analyzed, paired with feedback from local user groups. This information was synthesized to develop recommendations relative to the facility program which informed the demand projections and the resulting impacts of the development. A detailed analysis of this work can be found in section 5 of this report. As shown in Year 5, often considered the year of stabilization for sports complex facilities, the ice arena complex is projected to generate $5.7 million in total spending and $600,000 in tax revenues, while the indoor sports complex is projected to generate $16.6 million in total spending and $1.1 million in total tax revenues. Ice Arena Complex - Dubuque, IA Economic and Fiscal Impacts - Local and Regional Tournaments / Special Events Year 5 Economic Impact ($M) Direct Spending $4.0 Indirect Spending 0.9 Induced Spending 0.8 Total Spending $5.7 Increased Earnings $1.1 Employment (FTE jobs)53 Fiscal Impact ($000) State Sales Tax $0.2 County Sales Tax 0.04 County TOT 0.3 Total $0.6 Source: Johnson Consulting Page 308 of 959 15 Introduction Executive Summary - Observations Johnson Consulting recognizes that sports complexes are crucial to community sports organizations and highly beneficial to a community’s tourism industry. The Dubuque region lacks any large-scale sports complex and currently the community uses any available inventory of school and park facilities in Dubuque. Through our market analysis, stakeholder engagement, industry trends research, and case studies Johnson Consulting believes that there is an opportunity for Schmitt Island to introduce a new venue to the Dubuque market with a unique opportunity to serve the area’s residents and visitors. The Dubuque metro area has positive economic indicators such as above average median household income and low unemployment rates. While these factors would indicate future economic growth in Dubuque, the city is losing young families to larger markets. The slight decline in the Duluth population base can be attributed partially due to manufacturing jobs leaving the market, but it can also be due in part to the lack of family focused assets like a sports complex. This is also evident in the regions below average spending on sports participation fees which indicates either a lack of willingness to spend on fees or a lack of a facility on which to spend those fees. The Dubuque region is severely lacking in all kinds of sports surfaces. Other metro areas such as Des Moines, Cedar Rapids, the Quad Cities, Chicago or Madison have large concentrations of surfaces which provides assets for the communities and are used to attract large youth sports tournaments. Dubuque’s local organizations rely on school and park courts for practices and games and the lack of surfaces at a single location and the lack of quality surfaces prevents the region from hosting sports tournaments. Local organizations indicated to us that the lack of available surface time prevents the growth of their organizations and inhibits them from hosting regional tournaments. With Dubuque’s inability to host youth sports tournaments, parents travel to different markets every week which not only frustrates parents but it means large amounts of spending is leaving the region for other markets. Page 309 of 959 16 Introduction Executive Summary - Observations Specialization has led to a decrease in sports per participant. Kids are dedicating themselves to one or two sports rather than playing a wide variety of sports, year- round. This has led to the increased popularity of club teams that play in weekend tournaments that often requires traveling. Nationally, sports historically dominated by girls (like volleyball, gymnastics and cheerleading) are increasing in popularity in part due to the rise of female sports stars like Caitlin Clark and Simone Biles. Ice sports have also increased their national popularity as the high fixed costs associated with sports like hockey are easier to justify if (due to specialization) an athlete is playing year-round rather than seasonally. Locally, the popularity of sports is often capped by the number of facilities available. Indoor sports and ice sports in Dubuque are capped due to the lack of courts and ice rinks. Additional courts would likely grow the popularity of these sports in Dubuque. When analyzing case studies, Schmitt Island has a lot of positive attributes especially their proximity to existing entertainment options. Commonly, these facilities are located in close proximity to entertainment and retail; the upcoming family entertainment center at the Q Casino will complement a potential new sports complex on Schmitt Island. However, Dubuque is behind in several key factors like number of nearby hotels and distance to a major airport compared to markets with a similar development such as Appleton, Des Moines and the Quad Cities. Any space should be built with multi-sport capabilities like the Community First Champion Center in Appleton, Wisconsin which has an ice rink that can be converted into basketball courts. Most of these facilities operate using a public-private-partnership and were financed through a variety of methods such as hotel taxes, TIFs and city bonds. Johnson Consulting helped develop several different scenarios for potential developments on Schmitt Island. The optimal scenario involves 6 additional basketball courts and an additional ice rink to the existing ImOn Arena. This would allow local sports organizations that use either ice rinks or hardwood surfaces a place to practice and host tournaments. While outdoor sports like baseball and soccer are important to the city and locally popular, Schmitt Island’s size restricts any sizeable development of outdoor fields. The price elasticity of rental rates in the market may prove to be a challenge for the indoor courts, but their ability to host multiple sports like basketball, volleyball, wrestling and cheerleading should increase the demand for the facility. Page 310 of 959 2. Market Assessment Page 311 of 959 2.1 Economic & Demographic Trends Page 312 of 959 19 Market Assessment Overview Dubuque is located in Eastern Iowa on the Mississippi River bordering Wisconsin and Illinois. As of 2024, Dubuque has a population of 59,635 making it the 11 th biggest city in the state of Iowa. Unlike the rest of Iowa which is relatively flat, Dubuque is located in the Driftless Region and is situated on bluffs, giving it a hilly terrain compared to the rest of Iowa. While Dubuque’s economy has traditionally relied on manufacturing, the city needs to diversify its economy to grow. The region has a modest tourism draw, partially because of the “Field of Dreams” movie site which is located in nearby Dyersville. However, Dubuque can be difficult to travel to: •Air: Dubuque lost its air service back in January of 2024, but its regional airport regained limited service in November of 2024 with flights to Chicago. Previously, Dubuque residents had to drive to nearby markets to fly. Now, travel to and from Dubuque can be done completely via air. •Highway: Dubuque is not connected to any major Interstate, so in order to drive to Dubuque only major highways like U.S Highway 20 and U.S Highway 151 are available. As shown by the map on the right the 30-, 90-, and 240-minute drivetime catchments reach as far East as Chicago, as far South as Springfield, IL, as far West as Des Moines and as far North as Wausau, WI. Page 313 of 959 20 Market Assessment Population The resident population of the city of Dubuque was 59,635 persons in 2024. The 30-, 90-, and 240-minute drive time catchment areas, reflecting the draw of a potential new Schmitt Island Sports Complex, had populations ranging from 124,963 to 19,567,095. Between 2010 and 2024, the population of the city of Dubuque increased at an average rate of 0.2 percent per annum. These growth rates were below that of Iowa and the nation. From 2024 to 2029, the population of Dubuque is forecasted to grow at an average rate of negative 0.1 percent per annum. Growth rates in these markets are consistent with the 240-minute drivetime catchment but well below the state and national forecasts. As regional deindustrialized continues, jobs and workers will continue to leave the region at larger rates. 2000 2010 2024 2029 CAGR* 2010-2024 CAGR* 2024-2029 USA 281,421,906 308,745,538 338,440,954 344,873,411 0.7%0.4% Iowa 2,926,324 3,046,355 3,236,114 3,275,570 0.4%0.2% Dubuque 57,816 57,617 59,635 59,356 0.2%-0.1% Schmitt Island (30 minutes)113,850 120,003 124,963 125,000 0.3%0.0% Schmitt Island (90 minutes)1,149,389 1,207,838 1,267,049 1,269,561 0.3%0.0% Schmitt Island (240 minutes)18,448,309 19,285,244 19,567,095 19,454,997 0.1%-0.1% *Compounded Annual Growth Rate Sources: Esri, Johnson Consulting Population Page 314 of 959 21 Market Assessment Age Age is an important demographic indicator to consider when evaluating the market. Some markets seek to combat “brain drain,” a phenomenon where primarily college-educated young professionals are leaked to larger or different metropolitan markets. Other markets seek to attract wealthier retirees, which bring economic spending, leisure time, and philanthropic dollars with them to these markets. Dubuque has a lack of well-paying jobs which has increased an exodus of young workers, furthering the issue of “brain drain.” The Dubuque area has a much younger age distribution relative to state and national averages. 29% of the people in the 30-minute drivetime catchment around Schmitt Island are ages 15-34, representing a much higher proportion than the state and nation. This is likely due to the three major colleges in the city that bring large numbers of young people to the city. However, the proportion of middle age populations (ages 30-54) are significantly lower than state and national averages. These demographics are particularly important because they represent heads of families. The lack of this age group indicates Dubuque may have a lack of quality family-friendly amenities. A sports facility could help to retain and attract families to the region. ` Sources: Esri, Johnson Consulting 2024 Age Distribution 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% Pe r c e n t a g e o f P o p u l a t i o n United States Iowa Schmitt Island (30 minutes) 29% Page 315 of 959 22 Market Assessment Education & Income Education and income, although not strict predictors of sports, recreation and entertainment facility performance, are important market attributes for benchmarking the level of activity. Markets with higher educational attainment and income levels are more likely to have a robust economic base and healthy education system, which are key components of ensuring long-term growth and resiliency. Well-educated, higher income markets have a significant advantage when it comes to attracting new businesses, and are also more likely to have the nightlife, retail, and tourism products that appeal to event planners. The 30-minute drivetime radius around Schmitt Island has below average educational attainment levels among adults age 25+ for high levels of educational attainment. 35.4% of people in the area around Schmitt Island have a Bachelor’s or higher educational attainment. This is lower than national levels but higher than the state average. The Dubuque area has a low proportion of adults age 25+ without a high school education and high proportion of adults 25+ with a high school education. The median household income in the 30-minutes around Schmitt Island is $66,647 per annum, significantly below that of the U.S. ($79,068). Income levels in the city of Dubuque are projected to grow at a rate of 2.6 per annum over the next five years, which is less than the United States. These education and income statistics reflect a weak economic trajectory. Sources: Esri, Johnson Consulting 2024 Educational Attainment 9.4% 26.8%27.1% 36.8% 5.9% 29.6%30.8% 33.7% 5.2% 31.7% 27.7% 35.4% 0% 5% 10% 15% 20% 25% 30% 35% 40% Less than High School High School or Equivalent Some College / Associate's Bachelor's or Higher Pe r c e n t o f A d u l t s A g e 2 5 + United States Iowa Schmitt Island (30 minutes) 2024 2029 CAGR* USA $79,068 $91,442 3.0% Iowa $74,738 $83,750 2.3% Dubuque $66,647 $75,612 2.6% Schmitt Island (30 minutes)$75,102 $84,530 2.4% Schmitt Island (90 minutes)$76,143 $86,177 2.5% Schmitt Island (240 minutes)$79,873 $91,365 2.7% *Compounded Annual Growth Rate Sources: Esri, Johnson Consulting Median Household Income Page 316 of 959 23 Market Assessment Dubuque Regional Average Sports Spend Each number in the dots to the right represent an index of spending within that region, where 110 represents 10% higher than the national average and 95 representing 5% less than the national average. The 30-minute drivetime catchment spends roughly 11 % less than the national average on fees for participant sporting events. This indicates a lack of disposable income allocated towards sports. The 90-minute drivetime catchment spends 8% less than the national average and the 4-hour drivetime catchment spends 2% less than national average most likely due to its inclusion of major markets like Chicago, Milwaukee and Des Moines. Dubuque area residents spend far less than the national average on fees for participant sporting events (including trips and local events). This could either be due an unwillingness to spend on expensive sports tournaments and events or due to the lack of available venues, tournaments and opportunities in the Dubuque area. A new venue may bring higher rates of spending as there would be more sporting opportunities in the Dubuque area. Page 317 of 959 24 Market Assessment Disposable Income and Sports Spending The table below shows the differences between different cities, states and regions’ median disposable income and other sports spend related statistics. Dubuque and the drivetime catchments closest to Dubuque have below average median disposable income as well as below average other sports spending categories. This likely means that the ability and desire to pay for a quality athletic facility will be less than national averages. However, the 240-minute drivetime catchment is on-par with national averages meaning there are a large number of people within driving distance who are willing to spend on sports tourism. These people are likely concentrated in large metro areas such as Chicago, Milwaukee and Des Moines. Median Disposable Income Fees for Participant Sports Membership Fees for Social/Recreation /Health Clubs Admission to Sports Events Total Sports Spending % of Disposable Income Spent on Sports Events % of Disposable Income Spent on Sports Events, Indexed to National Average* United States $63,562 $133 $302 $79 $515 0.81%100 Iowa $59,890 $116 $266 $79 $461 0.77%95 Dubuque $55,427 $107 $251 $73 $431 0.78%96 Schmitt Island (30 minutes)$60,617 $118 $273 $80 $472 0.78%96 Schmitt Island (90 minutes)$60,671 $121 $279 $82 $482 0.79%98 Schmitt Island (240 minutes)$63,297 $130 $300 $84 $514 0.81%100 *Where 100 is average, 110 is 10% above average, and 90 is 10% below average Sources: Esri, Johnson Consulting Disposable Income and Average Household Sports Spending Page 318 of 959 25 Market Assessment Major Employers & Unemployment A strong corporate and business presence can be important in the success of a sports, recreation, event and entertainment facility, because local businesses support facilities by attracting residents to the area, and providing disposable income, as well as through their requirement for event space, and through donations, sponsorships and advertising. Dubuque has attempted to diversify its market away from a manufacturing focus to a wide range of sectors. However, the rate of lost manufacturing jobs is outpacing the gain of new non- manufacturing jobs. Despite having issues diversifying their economy, Dubuque has maintained relatively low unemployment numbers. Both Iowa and Dubuque’s unemployment rates have consistently tracked lower than that of the United States. In 2024, Dubuque and Iowa’s unemployment rate was 2.9% and 3.0% respectively; the United States had a higher rate of 4.3%. However, unemployment rates don’t always capture the entire picture as they ignore variables like underemployment and labor participation rate. For example, stakeholder engagement and reports on the region indicated high paying jobs in Dubuque was less than compared to the rest of Iowa. This is also indicated by Dubuque’s low median household income. Employer Industry Employees John Deere Dubuque Works Manufacturing 2,810 Dubuque Community Schools Education 2,000 MercyOne Dubuque Medical Center Health Care 1,438 HODGE Industrial Services 1,102 Medical Associates Clinic Health Care 1,069 University of Wisconsin-Platteville Education 1,062 UnityPoint Health - Finley Hospital Health Care 940 Cottingham & Butler, Inc.Insurance 851 City of Dubuque Government 737 Sedgwick CMS Insurance 725 Rainbo Oil Company Retail Trade 558 Western Dubuque County Community School District Education 551 Hormel Manufacturing 550 Medline Industries Health Care 500 Mi-T-M Corporation Industrial Services 465 Source: Greater Dubuque Development Corp, Johnson Consulting Major Employers in Dubuque, IA Sources: Bureau of Labor Statistics, Johnson Consulting Unemployment Rate 0% 2% 4% 6% 8% 10% 12% 2007 2009 2011 2013 2015 2017 2019 2021 2023 United States Iowa Dubuque (MSA) Page 319 of 959 26 Market Assessment Location Quotient by Industry Sector As of 2024, the largest industry in Dubuque was Manufacturing. With increasing costs and automation, keeping manufacturing jobs in Dubuque (and the United States) will only get more difficult. There is a want and a need to diversify Dubuque’s economy away from an industry that is not projected to grow domestically. The top 5 industries with the most employees are: •Manufacturing •Health Care and Social Assistance •Retail Trade •Educational Services •Accommodation/Food Service The table on the right provides a location quotient analysis of the number of employees in the Dubuque area by industry sector relative to that of the U.S. as a whole. Location quotients of 1 indicate a similar relative concentration of that particular industry in the region, while values higher than 1 indicate higher concentrations of that industry, and values lower than 1 indicate lower concentrations of that industry. The location quotient values are color-coded accordingly. The Dubuque region has a high concentration of Manufacturing and Agriculture related jobs relative to that of the United States. Page 320 of 959 27 Market Assessment Implications Dubuque is a mid-sized city that is having problems with maintaining a robust population. The city of Dubuque currently has a population of 59,635 and the population of the city is projected to slightly decline while the metro area of Dubuque is projected to remain stagnate. Dubuque’s largest industry, manufacturing, has been on a decline ever since the deindustrialization of the 1980’s, which has led to a mass-exodus of working-class residents. Dubuque also faces a problem with losing younger college-educated residents to larger markets (aka “Brain Drain”). Dubuque does not have as many family-friendly community assets as larger markets. The construction of additional sports surfaces or a sports facility on Schmitt Island would help to lessen that drain away from the city. Dubuque’s economic and demographic profile has some extremely positive attributes. The Dubuque metro area has a strong median household income of $75,102 and it is expected to increase by 2.4% by 2029. Dubuque also has an extremely young population due to the number of universities located within the city. The City of Dubuque’s median age is 37.9, which is much lower than the national average of 39.3. Dubuque also has an Unemployment rate of 2.9% which is in-line with Iowa’s (3.0%) and well below the national average of 4.3%. A sports facility on Schmitt Island could greatly help to improve these already positive attributes. Young college graduates from one of Dubuque’s universities who are deciding where to settle down and start a family will see a youth sports complex as a positive reason for staying in Dubuque. Dubuque residents are less likely to spend on participation sporting events. Residents in a 30-minute drivetime around Schmitt Island spend 11 % less than the national average on fees for participant sporting events. Dubuque’s current inventory of rentable sports facilities is largely run by the school district and is purposefully inexpensive so that teams and organizations can get cheap practice times. This may be part of what drives down Dubuque’s average spend on participation sporting events. This also indicates a high market elasticity, the higher the rental costs, the less likely people are willing to spend. Page 321 of 959 2.2 Regional Facility Audit Page 322 of 959 29 Regional Facility Audit Hotel inventory Data from CoStar, which is an independent hotel research firm whose statistics are widely used in the industry, indicates that within a 30-minute drivetime radius of Schmitt Island, there are 50 hotels with a total of 2,682 rooms. There are only six hotels with 100 or more rooms. The table to the right shows these hotels along with their exact number of rooms, hotel class, total meeting space and largest meeting space. The largest hotel by number of rooms and most meeting space is the Grand Harbor Resort & Waterpark, which has 193 Upper Upscale rooms and over 86,000 SF of meeting space. Dubuque’s inventory of large hotels is on the higher end with three of their six largest hotels classified as Upper Upscale or Upscale. The other three hotels are more affordable options that range from Economy to Upper Midscale. The map to the right shows the location of the hotels within a 30-minute drivetime of Schmitt Island that are greater than 100 rooms. All major hotels in the Dubuque region are located within Dubuque with most being in Downtown Dubuque or on Schmitt Island itself. If the proposed Schmitt Island facility is going to host traveling youth sports tournaments, additional hotel rooms will likely be necessary in meeting the demand these tournaments can bring. Hotel Class Year Built (Renovated)Rooms Largest Meeting Space (SF) Total Meeting Space (SF) Grand Harbor Resort & Waterpark Upper Upscale 2002 193 9,000 86,000 Holiday Inn Dubuque Galena Upper Midscale 1991 (2003)193 3,075 9,599 Days Inn Dubuque Economy 1961 162 1,000 1,000 Best Western Plus Dubuque Hotel & Conference Center Upper Midscale 1978 (2018)150 4,127 12,845 Hotel Julien Dubuque Upper Upscale 1914 (2012)133 6,566 18,786 Hilton Garden Inn Dubuque Downtown Upscale 2005 116 1,225 1,545 Hotels <100 Rooms 1,735 17,711 20,778 Total 2,682 42,704 150,553 Sources: CoStar, Johnson Consulting Dubuque Hotel Inventory Schmitt Island Page 323 of 959 30 Regional Facility Audit Hotel Pipeline There are two hotels within a 30-minute drivetime radius of Schmitt Island with a total of 257 rooms set to enter the market by 2026. One of the hotels is an addition to the hotel already at the Q Casino, while the other will be a 160 room Marriott hotel near the Port of Dubuque. The Marriott in the Port of Dubuque will be split into two hotels, one of which will be dedicated to more long-term stays. The map on the right shows where the new hotels will be located within Dubuque. The blue circles are the incoming hotels while the orange circles are the existing hotels. The map shows that Schmitt Island and the Port of Dubuque are the two popular areas for hotels in the city, indicating that these are popular areas for tourism. Schmitt Island Property Name Hotel Class Phase Year Opening Rooms Courtyard by Marriott TBD Approved 2026 160 Tapestry Collection by Hilton Upper Upscale Final Planning 2025 97 Total 257 Sources: CoStar, Johnson Consulting Dubuque Area Hotel Pipeline Page 324 of 959 31 Regional Facility Audit Hotel Market Dubuque’s hotel market has rebounded from the dip incurred by the COVID-19 pandemic. The chart to the right shows the Dubuque area’s ADR, RevPAR and Occupancy since 2013. Dubuque area’s RevPAR and ADR have climbed back up to levels higher than before the pandemic. The market’s occupancy rate was slightly declining before the pandemic and despite recovering from lows in 2020, it has stagnated post-pandemic. Sources: CoStar, Johnson Consulting Dubuque Hotel Market Performance 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Oc c u p a n c y AD R & R e v P A R Average Daily Rate (ADR)Revenue per Available Room (RevPAR)Occupancy $120.51 $68.17 56.6% Page 325 of 959 32 Regional Facility Audit Local & Regional Supply Overview In order to identify if a market is primed or not for a sports complex, it is important to look at both local and regional facility supply to determine the level of competition for events such as games, practices, tournaments, and outside events. The challenges that any new sports complex will face depend on market and facility saturation, and an evaluation of whether the local and regional supply already exceeds local and regional demand for both indoor and outdoor sports. Johnson Consulting compiled a comprehensive list of local and regional sports facilities. The facilities have been classified based on their proximity to Schmitt Island. Local facilities are those within a 30-minute drive time of Schmitt Island and regional facilities are those located within a 4-hour drive time, although this facility is perceived to also draw from outside this radius. We also identified sports complexes that would qualify as tournament-quality facilities – those with 4 or more courts under one roof. The potential Schmitt Island Sports Complex would likely compete with these facilities for demand on either a local or regional level. Page 326 of 959 33 Regional Facility Audit Dubuque Regional Baseball Facilities The 30-minute drivetime from Schmitt Island has a low quantity of large baseball facilities. The number of baseball facilities are limited to large areas of flat land which are hard to come by in Dubuque. In the 30-minute drivetime catchment outside the City of Dubuque there is plenty of flat land, but there is far less population to support a large number of ball fields. Small towns will have one or two ball fields for little league and high school use, but not large complexes like the Prairie Ridge Youth Sports Complex in Ankeny which has 17 baseball fields. This is the largest facility in the 240- minute drivetime catchment. Larger metro areas like Milwaukee, Chicago and Des Moines all have a larger concentration of baseball diamonds. Specifically, the Des Moines metro area has a much larger concentration of baseball complex than the other major metro areas in the 240-minute drivetime catchment. There is a need for a larger baseball facility in the Dubuque region. The lack of diamonds force families to drive 90+ minutes to larger facilities in Cedar Rapids and the Quad Cities. 1 2 3 4 5 Facility Fields 1 Prairie Ridge Youth Sports Complex 17 2 Grimes Sports Complex 13 3 TBK Bank Sports Complex 10 4 Janesville Youth Sports Complex 10 5 Haban Park 12 Source: Relevant Facilities, Johnson Consulting Notable Baseball Facilities Page 327 of 959 34 Regional Facility Audit Dubuque Regional Indoor Court Facilities Dubuque lacks one large basketball facility, rather there are smaller facilities scattered across the city. The courts that the city does have are mostly single courts in schools and community centers, so sports organizations not only compete with other organizations for court time, but also the schools and community centers who run the courts. There is a larger concentration of high inventory court facilities on the outskirts of the 90-minute drivetime catchment in the Quad Cities, Madison and Cedar Rapids. Parents expressed frustration at routinely driving to these metro areas for not just games on the weekend but routine weekday practices as well. In the 240-minute drivetime catchment there is a high concentration of basketball facilities to the east namely in the Chicago metro area. However, the area West of Dubuque doesn’t have as large of an inventory of indoor court facilities. A new facility could draw families from the Des Moines area or from the North like La Crosse where there is a similar lack of courts. Dubuque # of surfaces 1 2 3 4 5 Facility Courts 1 TBK Bank Sports Complex 8 2 Game on Sports/Sandlot Sports CR 5 3 Pleasant Prairie Rec Plex 12 4 Community First Champion Center 8 5 Romeoville Athletic & Events Center 8 Source: Relevant Facilities, Johnson Consulting Notable Indoor Facilities Page 328 of 959 35 Regional Facility Audit Dubuque Regional Soccer Facilities Similar to baseball facilities, large soccer facilities require large swaths of flat land; Dubuque’s hilly terrain hinders the city’s ability to have one large facility. The Dubuque Soccer Complex is the largest soccer complex in Dubuque with 7 soccer fields and is also the third largest within the 90-minute drivetime catchment, behind the Tuma Sports Complex (22 fields) in Marion, IA and the Reddan Sports Complex (11 fields) in Verona, WI. The largest facilities are in the 240-minute drivetime catchment like the Fond Du Lac Soccer Complex (32 fields) in Wisconsin or the Stuart Sports Complex (31 fields) in Montgomery, Illinois. In order to compete with these facilities, a new Dubuque soccer facility would need to be similarly large and given the competitive facilities comparative proximity to larger markets, a new Dubuque Soccer Facility would still have trouble drawing families from Chicago or Milwaukee. 1 2 3 4 Dubuque # of surfaces Facility Fields 1 Tuma Sports Complex 22 2 Fond Du Lac Soccer Complex 32 3 Mercyhealth Sportscore One 18 4 Stuart Sports Complex 31 Source: Relevant Facilities, Johnson Consulting Notable Soccer Facilities Page 329 of 959 36 Regional Facility Audit Dubuque Regional Hockey Facilities The ImOn Arena on Schmitt Island is Dubuque’s lone rink and the only sheet of ice within an hour of Dubuque. The closest competitive facilities are all close to the 90-minute drivetime catchment like the Capital Ice Arena in Madison or the ImOn Arena in Cedar Rapids. Many cities in Eastern Iowa like Cedar Rapids, Iowa City, and Mason City have at least one sheet of ice. A second sheet of ice could prevent leakage from the Dubuque market to larger ice facilities like the ImOn Arena in Cedar Rapids. A second sheet of ice would double the number of peak ice hours and make Schmitt Island’s ImOn Arena eligible to compete with those facilities in Madison and Cedar Rapids for tournaments. The Chicagoland area has a large number of rinks, but the sport is so popular that ice time is still limited and costly. A second sheet of ice might be able to attract tournaments from the Chicagoland area. 1 2 3 4 5 Dubuque # of surfaces Facility Rinks 1 Graham Arena Complex 4 2 ImOn Ice Arena 2 3 Capitol Ice Arena 2 4 Canlan Ice Sports 3 5 Woodman's Sports & Convention Center 2 Source: Relevant Facilities, Johnson Consulting Notable Hockey Facilities Page 330 of 959 37 Regional Facility Audit Dubuque Facilities Rental Rates Currently, the hourly rental rates for McAleece Park fields are affordable enough to easily accommodate residents and community non-profits. The $30/hour rental rate for non-residents or for profits is the highest rate and still extremely affordable. Similarly, pickleball and tennis court rates are very low and affordable. Basketball court rentals are run through the local school district and are similarly affordable. School Districts do not rent out courts on an hourly basis, rather, they sell weekly 75-minute time slots for 10 weeks for $110. These rates are likely not market prices; they are set at a low price point to accommodate for community organizations and sports leagues. These affordable rental rates may indicate that the popularity of sports in Dubuque may be largely fueled by its affordability and accessibility to large swaths of citizens. Dubuque Local Schools & Colleges Resident Organizations / Nonprofits Resident Private Users/ For Profits Non Residents/For Profit Baseball/Softball Fields* McAleece Field #1 Per Agreement $20 $25 $30 McAleece Field #2 Per Agreement $20 $25 $30 McAleece Field #3 Per Agreement $20 $25 $30 Petrakis Per Agreement $20 $25 $30 Veteran's Memorial Park Field #1 Per Agreement $20 $25 $30 Veteran's Memorial Park Field #2 Per Agreement $20 $25 $30 Valentine Park Per Agreement $20 $25 $30 Pickleball/Tennis/Volleyball Courts Outdoor Pickleball/Tennis Per Agreement $3 $5 Outdoor Volleyball Per Agreement $5 $8 Source: City of Dubuque, Johnson Consulting *Baseball/Softball Field prep is an added cost and includes dragging the infield, chalking, and setting bases; $10/field on weekdays, $20/field on weekends/holidays. Lights are an additional $15/hour/field. Dubuque Facilities Rental Rates Facility Type Hourl Rental Rates Page 331 of 959 38 Regional Facility Audit Field of Dreams The Field of Dreams movie site is a 40-minute drive from Schmitt Island in nearby Dyersville, Iowa. The youth baseball tournament series that is run in coordination with the movie site is by far the area’s largest Sports Tourism attraction. The table to the right shows the impact of the Field of Dreams tournaments. In 2024 there were 10 tournament weekends that brought in 453 teams from across the country. The economic impact of the tournaments was not just limited to players and coaches as each coach and player was likely to bring family members along as well. There was an estimated $1.5 million in accommodation spending and another $6.8 million in estimated total visitor spending. The Field of Dreams fields bring in far more visitors than any other sports tourism asset in the Dubuque area. However, the lack of ancillary Field of Dreams youth fields means that teams end up playing at other facilities. Many of the facilities are in flood plains and are susceptible to rain outs as seen by the footnote on the chart. If additional fields are added, they must be carefully placed to minimize the impact of flooding/weather. However, additional fields would allow the Field of Dreams tournament to bring in more teams per tournament, thus increasing economic impact. 453 Teams 857 Games 15 Skills Competitions 28 Champions 106,677 Miles Traveled $1,546,104 Accomodation Spending $6,805,833 Total Visitor Spending 93 Jobs Created *Rain delays 9 out of 10 weekends 2024 Summary Field of Dreams Source: Field of Dreams, Travel Dubuque, Johnson Consulting Page 332 of 959 39 Regional Facility Audit ImOn Arena ImOn Arena, formerly known as Mystique Ice Center and Dubuque Ice Arena, is located on Schmitt Island and is the primary ice rink that serves the City of Dubuque and surrounding communities. The facility is owned by the City of Dubuque and operated by Schmitt Island Development Corporation. The arena was originally opened in 2010 for approximately $10 million and was renovated in 2022 for $6 million to address foundation concerns. ImOn Arena is a 3,200-seat, single sheet ice rink and event space. The arena features concessions, luxury box suites, press boxes, a lounge with a full bar, meeting rooms, restrooms, and a small pro shop. The arena is home to the Dubuque Fighting Saints of the USHL, Dubuque Youth Hockey, and the Dubuque Saints, the Dubuque High School hockey team, and the University of Dubuque men’s and women’s hockey teams. The facility hosts youth, adult, and senior hockey, as well as figure skating, public skate, and other ice activities. Being the area’s first and only dedicated ice arena, the facility is in high demand. Key user group usage over the 2023 calendar year compared to available hours of operation are charted below. As shown, the winter months have a much higher utilization rate than the summer months. This is further illustrated by the seasonal calendars on the following pages. Page 333 of 959 40 Regional Facility Audit ImOn Arena The following calendars are samples of an average month during the winter, spring, and summer seasons at the arena. As the schedule shows, the ImOn Arena is booked almost every week day from 6am to 9pm, indicating there is enough participation in the Dubuque area to expand to two rinks. An extra sheet of ice would allow more practice time for local organizations, allowing for the growth of ice sports and events. ImOn would also be able to double their peak ice hours (5pm-10pm daily) allowing them to bring in more revenue. Winter 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 6:00 AM 6:30 AM 7:00 AM 7:30 AM 8:00 AM 8:30 AM 9:00 AM 9:30 AM 10:00 AM 10:30 AM 11:00 AM 11:30 AM 12:00 PM 12:30 PM 1:00 PM 1:30 PM 2:00 PM 2:30 PM 3:00 PM 3:30 PM 4:00 PM 4:30 PM 5:00 PM 5:30 PM 6:00 PM 6:30 PM 7:00 PM 7:30 PM 8:00 PM 8:30 PM 9:00 PM 9:30 PM 10:00 PM 10:30 PM 11:00 PM 11:30 PM 12:00 AM Page 334 of 959 41 Regional Facility Audit ImOn Arena Page 335 of 959 42 Regional Facility Audit ImOn Arena The arena currently only has one sheet of ice. With the number of regular user groups, local demand, and regional demand, there is likely an opportunity to expand programming if an additional sheet of ice was available. Revenues at the arena also align with busier seasons as a main revenue source is food and beverage sales during events. Page 336 of 959 43 Regional Facility Audit Implications Dubuque is severely lacking in large sports facilities when compared to other neighboring markets. The facility inventory maps indicate that other markets such as Cedar Rapids, Des Moines, Quad Cities and Madison have a higher number of facilities and fields than compared to Dubuque. This is understandable as Dubuque’s terrain makes it far more difficult to build large baseball and soccer complexes in the city. Baseball is an extremely popular sport in the region and the Field of Dreams tournaments is a large draw to the region; however, the inadequate inventory of fields near the facility leads to Dubuque’s poorly irrigated fields to be used. Sports Facility Rental rates are extremely affordable in Dubuque to cater to local organizations and not towards large tournament teams. Available surfaces are often scattered throughout the city and are not in one central location. These fields and courts are of varying qualities and many are not capable of hosting large scale tournaments. A new facility would increase the supply of quality surfaces, but likely at the expense of affordability. A new higher quality facility will likely have a higher rental rate than other facilities in the area that are ran by schools or the parks department. Dubuque’s ice arena is a prime candidate for an additional surface. The rink is booked from open to close during the winter months and has to accommodate multiple teams of all ages. Currently there isn’t enough ice time to accommodate for additional hockey or figure skating athletes and the growth of ice sports in Dubuque is capped. A new sheet of ice would allow additional participants to form new teams and to expand the popularity of hockey and figure skating in the region. An additional sheet of ice would also allow the facility to double their prime ice sheet time. This prime ice sheet time that runs from 5pm-10pm generates far more hourly revenue than 6am practice times which some organizations are forced to use due to the lack of ice time. An additional sheet of ice would also put Dubuque on par with other markets like Cedar Rapids and Madison that have a facility with two sheets of ice. This would allow Dubuque to bring in larger hockey tournaments to Schmitt Island. While the ImOn ice arena is currently used heavily during the winter, the sheet of ice isn’t heavily utilized in the summer. If an additional sheet of ice is to be added to the arena, it should have multipurpose capabilities. Being able to convert the second sheet of ice to courts or turf during the summer months would increase utilization of Schmitt Island even more. Page 337 of 959 2.3 Stakeholder Engagement – Key Findings Page 338 of 959 45 Stakeholder Engagement Overview The engagement of potential users of a new venue on Schmitt Island was emphasized as a priority of this study from the outset. As with any project of this importance, it is crucial to engage with a wide variety of individuals and organizations throughout the industry to foster a sense of buy-in and inform the study’s observations, conclusions, and recommendations. Johnson Consulting’s outreach strategy involved conducting supplemental, targeted focus groups and interviews with key stakeholders in the proposed project, potential project partners, and local, regional, and national industry experts in the realm of sports tourism facilities. These focus groups and interviews began with in-person sessions in August 2024 and continued throughout the remainder of the study. Johnson Consulting conducted interviews and focus groups with individuals representing 27 different organizations, including local sporting organization leaders, local government leadership, and regional venues. These engagements helped us to understand the popularity and trajectory of the youth sports in the region, the needs of its stakeholders, and whether the proposed venue would help meet those needs. They also provided important context on local government, current attempts at a similar facility, and the market opportunities that exist for the proposed venue. The diagram to the right outlines the scope of the stakeholder engagement effort. Community Engagement Key Stakeholders Potential Partners Industry Experts Local Sporting Organizations Local Governments Local Venues Page 339 of 959 46 Stakeholder Engagement Key Themes There is an apparent need for additional, quality athletic surfaces in Dubuque. The existing limited availability results in participants and dollars leaking into neighboring markets. A sports and recreation development on Schmitt Island has the potential to create opportunity for sports tourism in Dubuque with the ability to host tournaments and other large-scale events. However, a tournament quality facility may present a challenge to shift the status quo of local use. Input from various stakeholders suggest there is not only an opportunity to leverage programming partnerships for this project, but the majority of stakeholders agreed that a public-private partnership would be ideal for the development of this project. Further, it was noted that sports complexes and similar developments may have ripple effects on the local economy, such as workforce recruitment and retention and local business growth. Key Themes Evident Gap in the Sports Market Participant & Economic Leakage Sports Tourism Potential Partnership Opportunity (P3) Employer/ Employee Recruitment /Retention Paradigm Shift from Local Facilities Page 340 of 959 3. Participation Trends & Comparative Market Analysis Page 341 of 959 3.1 Participation Trends Page 342 of 959 49 Participation Trends & Comparative Market Analysis Sports Industry Facility Trends Throughout the past decade, youth sports facilities aimed at generating tourism through large multi-day tournaments have become increasingly common, as their magnitude is often able to draw demand from surrounding states, and sometimes the entire country. While generating sports tourism demand relies on several factors, the widely accepted standards for a facility to qualify as a sports tourism facility for each surface type are as follows: •Indoor Facility: 4 or more surfaces in a single venue •Outdoor Facility: 10 or more surfaces at a single venue The number of surfaces is not necessarily the only determining factor for whether a facility will generate sports tourism. Other factors that influence the success of sports tourism facilities include: •Strategic location: Facilities that have major metropolitan areas within close proximities (~4-hour drive time) are accessible to a larger number of people, and thus have more opportunities to host larger events, and can rely on steady local and regional events to provide consistent demand and out of town visitors. •Proximity to other competitive sports tourism facilities: While a sports tourism facility with an ideal strategic location near a major US city may initially seem like an ideal development, it is possible that similar facilities have already been developed nearby and would represent significant competition for a new facility. •Quality: The quality of the surfaces is often a major selling point for the most prominent sports tourism facilities in the country. Significant investment in the development and upkeep of top-quality surfaces and buildings, as well as other features such as lighting, parking, and management are essential for acquiring major events that bring in visitors from further destinations. •Partnerships and sponsorships: Gaining recognition through an affiliation with a well-known sports team (e.g., NBA, NFL, or MLB team) or prominent athletic/sports- based company (e.g., Nike, Under Armour, Gatorade) can help propel a facility to national recognition, depending on the prominence of the sponsor/partner. Page 343 of 959 50 Participation Trends Sports Industry Participation Trends Total team sports participation had been stagnating if not decreasing from 2012 to 2022, but there was an increase of 7M participants from 2022 to 2023. 2020 was a 10 year low in total team sports participants, but since then that number has increased every year and even exceeded pre-COVID levels at 136 million team sports participants. The chart to the right also shows the gradual decline in Sports per Participant. This underlies the gaining popularity of specialization. As more kids choose to focus on a single sport, they no longer participate in multiple sports. While this can lead to the decrease in total sport participation, it can lead to higher commitment participation. For example, a little league may only have one tournament a year, but travel ball leagues may have a tournament every week. Source: SFIA, Johnson Consulting Team Sport Participation & Sports Per Participant 132M 132M 130M 132M 133M 133M 132M 130M 126M 126M 129M 136M 2.14 2.06 2.02 1.99 1.94 1.97 1.92 1.84 1.88 1.85 1.82 1.73 0 0.5 1 1.5 2 2.5 3 0 40 80 120 160 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Total Sport Participants Sports Per Participant Page 344 of 959 51 Participation Trends Indoor Sports Trends Participation There has been a sharp increase in indoor sports participation in sports such as basketball, cheerleading and gymnastics. The rapid increase in participation is likely due a post-COVID rebound. The two sharpest increases in indoor sports have been in majority female participation sports. The recent popularity of female sports figures like Simone Biles and Caitlin Clark have increased sports participation among girls. Volleyball is the only major indoor alternative to basketball and it’s likely that as sports participation recovers from COVID that volleyball will continue its increase in participation. Basketball Volleyball Cheerleading Gymnastics 1.1%8.5%8.5%22.8% Sources: NSGA Sports Participation Survey, Johnson Consulting Change in Indoor Sports Participation Trends (2020-2023) Sport Percentage Change Page 345 of 959 52 Participation Trends Outdoor Sports Trends Participation The post-COVID rebound among outdoor sports is similarly sharp among Lacrosse and Soccer which in addition to gaining participation since the lifting of COVID restrictions have seen long term success in gaining participation since 2010. Both Lacrosse and Soccer have seen a growing popularity in the United States as seen by the addition and growth of the Professional Lacrosse League, Major League Soccer and United Soccer League. These sports are gaining in visibility and are similarly popular entertainment options for children who are deciding what sports they want to play. Baseball has seen a sharp decline in participation from 2020 to 2023, which is in line with its decline since 2010. As travel ball leagues take over Little Leagues, baseball has become more expensive and less accessible to more and more Americans. Softball has seen a less dramatic decrease, but participation has still dropped. This is likely due to the increasing popularity of pickleball which has replaced softball as the sport of leisure for young adults. Baseball*Softball*Football Lacrosse Outdoor Soccer -4.9%-0.6%-5.1%6.5%4.5% Source: NSGA Sports Participation Survey, Johnson Consulting Percentage Change *These are national participation trends and not representative of Dubuque's local increased popularity in Baseball and Softball Change in Outdoor Sports Participation Trends (2020-2023) Sport Page 346 of 959 53 Participation Trends Ice Sports Trends Participation Ice sports such as Ice Hockey and Figure Skating have seen a similar increase in popularity from 2020 to 2023. One factor that contributed to this is the popularity of the 2022 Winter Olympics. Ice and Snow Sports such as hockey, figure skating, skiing and snowboarding all saw an average increase in participation by 10.9% since the Winter Olympics in 2022. Ice hockey and figure skating were some of the only outdoor sporting activities people were able to participate in during COVID which drew a lot of new participants to the sport. Additionally, the popularity of the National Hockey League is leading to the popularity of hockey in previously untapped markets. The Stanley Cup playoffs had a record high first round viewership numbers and the Stanley Cup continues to increase in total viewership in contrast with other professional sporting championships. The expansion of teams to Las Vegas and Seattle along with a team moving to Utah has drawn more visibility on the sport of hockey to markets where hockey typically wasn’t a popular sport. Ice Hockey Figure Skating 8.7%8.4% Source: NSGA Sports Participation Survey, Johnson Consulting Percentage Change Change in Ice Sports Participation Trends (2020-2023) Sport Page 347 of 959 54 Market Penetration Sports Penetration Methodology The flow chart below summarizes the methodology used to determine the Total Estimated Demand for sports Participation/visitation in Dubuque. Each drivetime catchment Population was multiplied by a custom individual sports participation rate to get a total number of participants in each drivetime catchment. The total sport participants in each drivetime catchment were multiplied by a custom estimated Market Penetration Rate. For the 90- and 240-Minute drivetime catchments, this is a measure of how many competitive facilities within a drivetime catchment are in Dubuque. For the 30-Minute drivetime catchment, a Sports Surfaces Deficiency Rate was used to measure how adequately Dubuque provides sports surfaces compared to other communities of a similar size. X X =Population National Participation Rates by Sport CHJC Estimated Market Penetration Rate Total Estimated Demand Page 348 of 959 55 Market Penetration Current Dubuque Market Penetration Rate The table on the right shows the current Total Estimated Demand by each drivetime catchment. Currently, most of the sporting activity that occurs in Dubuque comes from local users rather than sports tourism. Dubuque does not have the facilities to attract outside sports tourism. The Field of Dreams youth baseball tournaments does bring in a large portion of the city’s sports tourism. Youth baseball teams are coming to Dubuque because of the nearby Field of Dreams movie site and not because there is a facility with a large inventory of fields. Dubuque does not have any major facility that would attract large regional tournaments, which is why the penetration rates for the 90-minute and 240-minute drivetime catchments were so low. Sports like basketball are able to attract a couple of tournaments every year, but these tournaments are often split between multiple facilities. Most tournament organizers want to utilize one single facility for their tournaments to limit travel time for parents. A large facility with multiple fields is necessary for attracting larger tournaments or in the case of baseball, maintaining large tournament attendance. Page 349 of 959 56 Market Penetration Projected Dubuque Market Penetration Rate The table on the right shows Dubuque’s potential market penetration if regionally competitive facilities for each sport were built. These facilities would mainly compete with other facilities with a similar number of fields within a 90-minute drivetime catchment. For example, if ImOn Arena were to add an extra sheet of ice, they would be able to compete with other two sheet facilities in Madison and Cedar Rapids. The table on the bottom shows how the minimum number of fields necessary to be considered a competitive facility within the 90-minute drivetime catchment. Creating a facility that is more catered towards sports tourism would also provide additional court/field space for local organizations. Tournaments are likely only to occur during the weekends; this leaves the facilities to local organizations during the week days. Whenever a sports tourism facility is built, a community asset is added. Source: Johnson Consulting Ice Hockey/ Ice Skating Baseball/Softball 8 Diamonds Soccer/Lacrosse/ Football 8 Rectangular Fields Basketball/ Volleyball/ Cheerleading/ Wrestling 4 Courts Minimum Facility Threshold (90-Minute) 2 Rinks Page 350 of 959 57 Market Penetration Projected Dubuque Market Penetration Rate The table on the right shows Dubuque’s potential market penetration if a regionally competitive facility for each sport were to be built. These facilities would mainly compete with other facilities with a similar number of fields within a 240-minute drivetime catchment. The table on the bottom shows the minimum number of fields necessary to be considered a competitive facility within the 240- minute drivetime catchment. As mentioned on the previous slide whenever more surfaces are added so is a community asset as local sports organizations can use the surfaces whenever tournaments are in town. Source: Johnson Consulting Minimum Facility Threshold (240-Minute) Ice Hockey/ Ice Skating 3 Rinks Baseball/Softball 12 Diamonds Soccer/Lacrosse/ Football 12 Rectangular Fields Basketball/ Volleyball 8 Courts Page 351 of 959 58 Market Penetration Total Market Penetration Across Different Scenarios The chart to the right shows how many total participants (from both community use and sports tourism) each kind of facility would attract under each scenario. Under every scenario, an indoor sports venue generates the most additional visitors. This is likely due to the number of different indoor sports. An indoor space does not have to just be programmed with basketball or volleyball, but can also have sports like wrestling, cheerleading and dance. If a four or eight court facility were to be added to Dubuque, there would be a total participation of 33,206 and 79,882 users respectively. An 8 and 12 field baseball facility would attract 22,633 and 52,624 users respectively. Given the popularity of the Field of Dreams tournament, any number of high-quality fields that are built in the Dubuque area would be used for tournaments. The indoor facility would have more sports uses and less weather constrictions than the baseball fields but would have to market the facility more actively. Adding a sheet of ice to the ImOn arena would certainly bring more visitation to the arena than there currently is, but they would have to compete with other facilities such as the ImOn Arena in Cedar Rapids and the Capital Ice Arena in the Madison area. Adding two sheets of ice would position the facility to be at a competitive advantage to the other two sheet facilities. However, due to the concentration of facilities in the Chicago and Milwaukee areas, it will be much harder to attract teams from these metro areas to come all the way to Dubuque. Source: Esri, NSGA Sports Participation Survey, NRPA, Johnson Consulting Market Penetration by Sport and Scenario *Sports Include Baseball, Softball, Ice Hockey, Figure Skating, Volleyball, Basketball, Cheerleading, Gymnastics, Wrestling, Soccer, Tennis, Pickleball, Lacrosse 9,008 33,206 79,882 3,212 10,706 39,567 8,515 22,633 52,624 2,180 7,321 46,366 0 20,000 40,000 60,000 80,000 100,000 Existing Facilities Regional Facility National Facility Indoor Sports Rectangular Fields Diamonds Ice 73,866 218,440 22,916 Page 352 of 959 59 Industry Trends Iowa Sports Trends The table to the right shows the Average Economic Impact of Sporting Events in Iowa. While baseball does not have the largest impact per event, due to the number of events, it generates a sizable amount of income. While national trends have seen decreases in baseball and softball partially due to specialization, Dubuque has seen an increase in participation due to the nearby Field of Dreams movie site field as well as the success of local high school and college baseball teams. More broadly, most sports are seeing an increase in participation since COVID. Paired with Dubuque’s high sports participation rate, Dubuque’s low inventory of facilities in the area is an issue for Dubuque residents who are eager to play. According to the National Recreation and Park Association (NRPA), Dubuque is drastically underserved for a community of its size. Dubuque’s current market penetration rate tells a similar story. Currently, Dubuque attracts a very small amount of sports tourism with the Field of Dreams tournaments being the only regional attraction. The addition of a large, centralized indoor court space would have the largest economic impact for the Dubuque area due to its year-round usability and number of sports the facility could host. Sport Average Impact Per Event Baseball $294,566 Multi-Sport*$1,059,878 Football $147,522 Wrestling $406,557 Basketball $309,215 Volleyball $241,095 Cheer & Dance $373,397 Soccer $317,127 Golf $68,800 Cycling $93,935 Source: Huddle Up Group, Travel Iowa, iTIP Average Economic Impact of Sporting Events in Iowa *Multi-Sport includes events like the Special Olympics, AAU Junior Olympics, Iowa Senior Games, etc. Page 353 of 959 60 Industry Trends Implications Despite specialization’s decrease in the number of sports per participant, total youth team sports participation has overall increased. Participation in a single sport is typically more intense and involves more practices, games and tournaments than casual participation in multiple sports. This contributes to an increase in sports tourism. Additionally, most sports have seen an increase in participation since 2020, as more restrictions lifted there was a boost in participation. Notably there has been an increase in women’s sports including basketball, volleyball and gymnastics. Dubuque residents show an affinity towards sports with their high participation numbers. However, Dubuque does not have the requisite facilities to handle the community’s desired level of participation. Local organizations are forced to use the limited number of school gymnasiums for indoor sports, outdoor soccer organizations struggle to find enough space for their growing organizations and the ImOn Arena is not big enough for the hockey and figure skating organizations in Dubuque. The lack of facilities not only indicates that the local organizations’ needs aren’t being met, but also the city’s sports tournaments aspirations are harder to meet. Dubuque is extremely lacking in hosting sports tourism events. The Dubuque region is able to attract a strong number of visitors for baseball tournaments due to the popularity of the Field of Dreams tournament and movie site. However, the Field of Dreams Tournament isn’t attracting teams because of the high-quality fields and the construction of more fields would lead to increased sports tourism. Page 354 of 959 3.2 Comparative Market Analysis Page 355 of 959 62 Comparative Market Analysis Case Studies Overview The following case studies were chosen as examples of leading industry trends and best practices in relation to proposed development improvements based in sports and recreation on Schmitt Island. The case study set includes a variety of facilities that may include indoor, outdoor, and multipurpose programming. This subsection of the report includes detailed profiles of each destination that describe key programming, development, and operating characteristics as well as a benchmarking exercise to compare each of the venue’s markets and other attributes to that of Dubuque. Dubuque Key Facility 1 Community First Champions Center - Appleton, WI 2 TBK Bank Sports Complex - Bettendorf, IA 3 MidAmerican Energy RecPlex - West Des Moines, IA 4 FunCity Courts & FunCity Turf - Burlington, IA Map Legend Page 356 of 959 63 Comparative Market Analysis Community First Champion Center Year Opened: 2019 Ownership/ Management: The Town of Grand Chute owns the facility while Fox Cities Sports Development, Inc. manages the facility with 7 full time employees. Size: The 164,000 SF indoor facility sits on approximately 11 acres. Cost: The cost of construction in 2019 was $30 million, which would translate to approximately $37 million today. The cost of construction was provided by a 3% hotel tax, which also helped fund the Fox Cities Exhibition Center. Facilities: The Community First Champion Center is a preeminent indoor sports facility in the Midwest, located in the Fox Cities region of northeastern Wisconsin. The facility features a year- round ice rink, a fieldhouse, and an arena that transitions from an ice rink and hardwood courts, depending on the season. The rink is NHL-sized, and has seating for 1,000. The fieldhouse has 4 basketball courts, which can be converted to 8 volleyball courts, and has seating for 800. The seasonal arena switches between an NHL-sized ice rink and 4 basketball courts (or 6 volleyball courts), and has seating for 300. In addition to these sports spaces, the venue has 10 locker rooms, 3 team meeting rooms, a Champion Links Golf Simulator, an on-site physical therapy clinic, a trainer’s room, concessions, and an observation deck and mezzanine for spectators Page 357 of 959 64 Comparative Market Analysis Community First Champion Center Rental Rates: •Basketball courts: $60/hour •Pickleball courts: $15/hour •Open skate: $7/hour •Other surfaces and event rentals are negotiable. Demand: The Community First Champion Center attracts regional and national tournaments for hockey, basketball, and volleyball, and hosts youth sports camps and community events. The facility is truly multi-purpose in its design and programming, with flexible sports spaces as well as space devoted to services (i.e., physical therapy, massage, personal training, etc.) and to meetings. In 2022, the facility was activated 357 days out of the year with a total of 66 tournaments, 37,000 participants, and 57,000 spectators. Those 66 tournaments held at the facility generated 13,725 room nights and nearly $4.3 million in direct visitor spending in the Fox Cities. Page 358 of 959 65 Comparative Market Analysis TBK Bank Sports Complex Year Opened: 2018 Ownership/ Management: The complex is privately owned by a coalition of private residents and business leaders TBK Bank Sports Complex and JP Sports. Size: The 273,000 SF indoor complex, accompanied by the outdoor fields, sits on 76 acres. In 2022, plans for expansion will add on an additional 109 acres to the development. The expansion plans include two new multiuse fields, a 3-story golf facility, a new hotel, as well as retail, dining, and bars. Cost: The original development in 2018 cost $50 million. The planned expansion, to be completed by the end of 2024, is expected to cost approximately $75 million. The city has agreed to $5.8 million in economic development grants and a 75% tax increment finance rebate over the next 20 years. Facilities: TBK Bank Sports Complex is a facility built for players and families alike to enjoy participating in youth sports. On their 76-acre campus, there are two (2) lighted turf soccer fields, two (2) full-size grass fields, ten (10) turf baseball/softball fields that are convertible into 6 more turf soccer fields, and five (5) sand volleyball courts as a part of their outdoor facility. In their indoor, there is a multi-purpose field, eight (8) regulation sized basketball/ (16) volleyball courts, a physical therapy facility, team training areas, and fitness center. Additionally, there is a TBK Entertainment Center with thirty-two (32) bowling lanes, a two- story laser tag room, escape rooms, VR sports, and an arcade. Page 359 of 959 66 Comparative Market Analysis TBK Bank Sports Complex Future plans originally were outdoor turf fields near the new Iron Tee Golf Range. However, announced in fall of 2023, developers now plan to build a 100,000 SF building to house indoor turf fields just east of the TBK Bank Sports Complex. The fields would be utilized for baseball, softball, soccer, football, and lacrosse. Rental Rates: Rates are negotiable with facility staff depending on event type and size. Demand: The TBK Bank Sports Complex hosts a number of tournaments, leagues, clubs, and clinics. The facility also offers in-house club teams for baseball, softball, volleyball, basketball, and soccer. Some of the affiliated sports organizations include the Barnstormer Baseball Club, Texas Glory Fastpitch Softball, Iowa Swarm Basketball, Sporting Iowa East Soccer Club, Quad City Strikers, Platform Elite Basketball Club, TBK Bank Sports Academy, and other TBK Bank leagues. On any given weekend, the complex sees anywhere from 3,000 to 4,000 visitors. The outdoor complex is booked nearly every weekend for baseball, so the planned expansion should provide tournament opportunity for more sports such as rugby and soccer. Page 360 of 959 67 Comparative Market Analysis MidAmerican Energy Company RecPlex Year Opened: 2021 Ownership/ Management: The RecPlex was developed as a unique destination to enhance the quality of life for Central Iowans of all ages and abilities. The City of West Des Moines owns and operates the facility and built a public-private partnership to develop the site to address the demand for a regional, year-round sports facility and the opportunity to grow youth sports programming. Size: The 300,000 SF RecPlex facility, accompanied by three outdoor multipurpose fields, sits on 66 acres. There is a possibility for expansion in adding an additional sheet of ice. Cost: The public-private partnership the city developed allowed for the construction of the facility. Most of the funding came from city bonds, hotel motel tax revenue, loans, local option sales tax revenue, tax increment financing, and state and local grants. Staff has also leveraged the sponsorship and naming rights opportunities available, such as Hy-Vee, Kum & Go, and private donors, as another funding mechanism for the RecPlex. The total cost in 2021 was $59.8 million, including $16.5 million in city bonds backed by future local option sales tax revenue, $16.4 million in city bonds backed by future hotel-motel tax revenue, $12.4 million in corporate and individual donations and pledges, and mix of other grants, loans and tax revenue. The additional sheet of ice would cost north of $30 million and would be funded through private donations, a bond funded through local option sales tax, and grants. Page 361 of 959 68 Comparative Market Analysis MidAmerican Energy Company RecPlex Facilities: The RecPlex features 2 indoor ice arenas, the 150,000 SF Hy-Vee fieldhouse with 3 full sized basketball courts (6 volleyball courts), a multipurpose court, 3 pickleball courts, and a full-sized indoor turf. Each of the hardcourts feature a scoreboard, shot clocks, and seating. There is also a warm up and batting area, an Esports Center, and multipurpose rooms for teams, meetings, and other events such as birthday parties. There are two ice arenas, the Abel Ice Arena with a capacity of 2,400 people, and can double as a 20,000 SF convention space, and the Patty & Jim Cownie Family Arena has seating for 300 spectators. There is parking for 1,200 vehicles on site. Outside, the complex offers three full size turf fields with lighting, restrooms, and internet access. The venue is focused on youth sports and offers soccer, ice hockey, skating, soccer, volleyball, pickleball, basketball, baseball, softball, lacrosse, football, and other athletic, educational, and adaptive programming. The RecPlex has proven to offer access to sports and recreation programs to all ages as well as being an economic driver for the area, impacting almost every business including hotels, restaurants, and retail. The facility is closely located to other key attractions in West Des Moines and there are future plans to continue development adjacent to the RecPlex, including athletic surfaces and commercial development. Page 362 of 959 69 Comparative Market Analysis MidAmerican Energy Company RecPlex Rental Rates: Rental rates for spaces at the facility are listed on the right. Demand: In its first year open, the facility was fully booked with approximately 40 events, 90 event days, and 120,000 attendees, and the high demand for the facility continues today. According to Placer.ai, the facility attracts nearly 900,000 annual visitors, with 22% traveling from over 10 miles away. The ice arena is available to the community for public skating and other programming, such as curling and broomball. The indoor turf is also used for a variety of activities such as Toddler Time and 55+ softball and the outdoor turf is used for ultimate frisbee. The Esports center features 30 computers and 6 gaming consoles, providing for additional programming for all ages. Page 363 of 959 70 Comparative Market Analysis FunCity Turf & FunCity Courts Year Opened: FunCity Turf opened across from the outdoor Burlington Regional RecPlex in 2019 and FunCity Courts opened in 2023. The two facilities are located 3 miles apart. Ownership/ Management: Both facilities are owned and operated by the Greater Burlington Area Sports Facilities organization, a 501(c)(3) nonprofit organization incorporated in the State of Iowa. Management of the facilities are overseen by a 9-person board of directors. The RecPlex across from FunCity Turf is not affiliated with FunCity and is owned by the City of Burlington. FunCity Courts are also a separate entity from the FunCity/Catfish Bend Casino, which is owned and operated by Great River Entertainment. Size: FunCity Turf is a 78,500 SF turf within a dome. FunCity Courts portion of the resort is approximately 27,000 SF (3 basketball courts and 4 dedicated pickleball courts). Cost: The FunCity Turf Air-Supported Dome cost $4.3 million to build. FunCity Courts was the second and final phase of a project aimed at increasing sports tourism in the Burlington Area. $6.1 million has been raised for the project through the Imagine Campaign and $3.1 million was invested by a private investor who also helped fund the feasibility studies. Page 364 of 959 71 Comparative Market Analysis FunCity Turf & FunCity Courts Facilities: FunCity Turf is a 94,000 SF facility with a 78,500 SF artificial turf. The turf can convert into up to 8 soccer fields, two youth softball fields, and other sports. There are also bating and pitching cages available for local teams. This facility offers a variety of concessions and also serves Anheuser Busch products as of 2019. FunCity Courts are located at Catfish Bend Casino FunCity Resort. There is a hotel, casino, waterpark, bowling, an arcade, dining options, and other entertainment housed on the same site as the FunCity Courts. FunCity Courts offers three full-sized collegiate basketball courts that can also be used for volleyball, as well as four pickleball courts. FunCity operated a Snack Shake in the courtside area in addition to the other dining options in the complex. Page 365 of 959 72 Comparative Market Analysis FunCity Turf & FunCity Courts Rental Rates: The FunCity Turf offers Open Dome times when there are no scheduled practices, games our tournaments. Entry is $5 for everyone entering the facility. FunCity Courts also offer Open Play sessions; $5 for basketball and volleyball and $10 for pickleball. Rental rates for both facilities are shown at right. Demand: Despite opening last year, FunCity Turf is booked nearly every weekend, especially in the winter months, for tournaments. Weekdays are filled with organized practices and games. FunCity Courts are planned to host over two dozen basketball, volleyball, and pickleball tournaments and leagues for the 2024-2025 season. FunCity Courts are located at the FunCity Resort and Casino and is utilized by local athletes, SCC students, and weekend tournaments. Page 366 of 959 73 Comparative Market Analysis Benchmarking – Facility Development The balance of this subsection will provide a benchmarking analysis across the case study facilities and where applicable, Schmitt Island. As shown at right, the development size, cost, and locational attributes are compared across each case study. TBK Bank Sports Complex covers the largest footprint and was also the most expensive facility. Despite the high cost, an expansion is still underway and nearby development has been catalyzed by the complex. FunCity Courts and FunCity Turf is located furthest away from an international airport and has the lowest number of nearby hotel rooms. This may suggest that primary users are locals, but this could also be a frequent drive-to destination with the FunCity Resort attached to FunCity Courts. This is also a newer facility, and more hotel development may follow. Page 367 of 959 74 Comparative Market Analysis Benchmarking – Athletic Surfaces To understand the athletic surface offerings at each facility, the number of hard courts, fields, diamonds, and ice sheets are benchmarked at right. The courts are counted as basketball courts, meaning this number often doubles in terms of volleyball courts. Fields are any multipurpose grass or turf rectangle, indoor or outdoor. It is important to note that there is a seasonal arena at the Community First Champion Center that is either an arena or can be transitioned into 4 basketball courts (6 volleyball courts) depending on the time of year. This type of multifunctionality running parallel to sports seasons may be an effective design consideration for improvements on Schmitt Island. Pickleball courts, sand volleyball courts, and other additional amenities are also featured across these facilities. Page 368 of 959 75 Comparative Market Analysis Benchmarking – Placer.ai Placer.ai collects geolocational data from mobile devices and extrapolates that data to provide site traffic analyses. Total visitation, average dwell time, visitor frequency, and visitor origin were analyzed for the entire year of 2023. Schmitt Island is already an established destination, attracting over 135,000 visitors annually and has the highest reported dwell times and visitor frequency. TBK Bank Sports Complex and the MidAmerican Energy Company RecPlex both attract over 6 times as many visitors, likely due to the volume of tournaments these destinations attract. Schmitt Island falls behind when looking at out of town visitors. Non-local visitors are defined as those traveling to the destination from over 100 miles away, suggesting they may book a hotel room for the visit. If Schmitt Island develops a sports tourism destination that attracts athletic tournaments, it is likely that the percentage of non-local visitors will increase. Furthermore, as shown on the bottom right graph, TBK Bank Sports Complex has attracted over 18,000 visits from the Dubuque market in the last 12 months. *Visitors to Facility from Nov 1, 2023 - Nov 1, 2024 Source: Placer.AI, Johnson Consulting MidAmerican Energy Company RecPlex West Des Moines, IA FunCity Courts & FunCity Turf Burlington, IA TBK Bank Sports Complex Bettendorf, IA # of Visitors from the Dubuque Metro Area Community First Champion Center Appleton, WI 881 18,201 6,372 3,889 ImOn Arena, McAleece Park, & Petrakis Park Community First Champion Center TBK Bank Sports Complex MidAmerican Energy Company RecPlex FunCity Courts & FunCity Turf 2023 Total Visitation 135,318 592,382 1,421,860 875,335 118,167 Avg. Dwell Time (minutes)213 151 134 129 157 Visitor Frequency*6.4 3.8 4.7 4.4 3.3 2023 % Non-local Visitors**6%14%20%22%24% *Visitor Frequency defined by average times a visitor attends a facility **Defined as visitors traveling from over 100 miles away Note: Data for Mercyhealth Sportscores only reflects visitation to Sportscore Two Source: Placer.ai, Johnson Consulting Placer.ai Data Comparison Page 369 of 959 76 Comparative Market Analysis Benchmarking – 30-Minute Market Analysis The chart at right focuses on the 30-minute radius around each case study facility as well as Schmitt Island. As shown, the comparative markets are somewhat similar as far as age, income, and average household spend on sports. However, Schmitt Island has the 2nd lowest population behind the Burlington market. This suggests that the facility should be designed to serve local demand, but also be oriented for sports tourism to draw in users from a larger catchment area. Page 370 of 959 77 Comparative Market Analysis Benchmarking – 90-Minute Market Analysis When expanding the market analysis to a 90-minute radius around each case study site and Schmitt Island, Schmitt Island comes in above average for median age, median household income, and average household spend on sports. The total population in the 90-minute market also exceeds 1.2 million residents, significantly expanding the pool of users a sports development on Schmitt Island may draw from. Page 371 of 959 78 Comparative Market Analysis Implications The color-coded ranking matrix on this page illustrates a high-level overview of key attributes when considering a sports complex oriented for sports tourism. As shown, the two facilities in Burlington, FunCity Courts and FunCity Turf are ranked the lowest in market, locational, and tournament attributes. Burlington is top-ranked for non- local visitors, but this is likely attributed to FunCity Courts being co-located with FunCity Resort, which includes a casino. This proves that a casino paired with a sports complex, which Schmitt Island has the ability to leverage, may attract more overnight visitors. The other three case studies rank higher than Schmitt Island as far as locational and tournament attributes. Community First Champion Center, TBK Bank Sports Complex, and MidAmerican Energy Company are all located much closer to an international airport and hotel clusters as compared to Schmitt Island and the FunCity facilities. Further, while Schmitt Island or Dubuque does not currently have a high capacity for tournaments, especially indoor, there is substantial acreage on Schmitt Island that may offer a development opportunity for additional indoor surfaces. However, there is also a gap in the market for more high-quality diamonds. The four baseball/softball diamonds on Schmitt Island may be able to host baseball/softball tournaments, but there are opportunities for facility improvement to attract more regional events, but factors such as a hotel supply may be a limiting condition. Market research and stakeholder engagement suggest that there is desire and demand for more athletic surfaces in Dubuque, and becoming a preeminent destination for one or two sports, similar to the models at TBK Bank Sports Complex and Community First Champion Center. Page 372 of 959 79 Comparative Market Analysis Implications The case study facilities were largely financed through partnerships, such as public-private-partnerships with the local municipality. Funding strategies used include hotel tax, TIFs, city bonds, local options sales tax, loans, grants and donations. Another way to fund ongoing operations of a facility is naming rights, of which all four case studies have taken advantage. ImOn Arena on Schmitt Island has already been able to attract a naming rights sponsor and has historically partnered with the City of Dubuque for capital improvements. Communities view sports complexes as local assets but also as economic development catalysts, resulting in government appetite to partner with other entities to develop these projects in their communities. Another key takeaway from the case studies, namely Community First Champion Center, is multifunctionality and flexibility. The seasonal arena at Community First Champion Center allows for an ice sheet during hockey season or additional indoor courts during off-peak ice seasons. This model should be considered when proposing improvements for ImOn Arena in Schmitt Island as there is demand for more ice, but the space can also be utilized in the off-season for other sports or non-sporting events. Success across the case studies and sports complexes nationwide typically relates back to the ability to attract events and host tournaments at the facility, while also serving as a community amenity. A new sports and recreation development on Schmitt Island should be high quality and designed with sports tourism in mind in order to program the facility on the weekends and maintain a revenue stream, but also be accessible to the community on weekdays for single surface rentals for organized practice and games. Page 373 of 959 4. Program Recommendations Page 374 of 959 81 Program Recommendations Overview The Consulting Team has conducted market research, analyzed local and national sports trends, and engaged with the community and local sports organizations in order to evaluate what the Dubuque market can support in regards to sports and recreation. Furthermore, the Consulting Team assessed the site on Schmitt Island to determine what is the most logical development based on the site, market needs, and the opportunity to influence sports tourism in Dubuque. Overall, there is a high level of demand for additional athletic facilities across all sports in Dubuque. Participation rates and the propensity to spend on sports are both projected to increase, but the market is lacking a sufficient number of quality athletic surfaces to support the existing and future demand. Based on sports participation trends and input from local users, there is an inclination towards indoor sports such as basketball, volleyball, and hockey. While other sports such as baseball and softball are reported to be nationally trending down, there is a recognized need for quality baseball and softball diamonds in Dubuque to serve the local school district and higher educational institutions. When considering development on Schmitt Island, there is the advantage of leveraging the existing destination. Not only are there existing athletic offerings on Schmitt Island, including ImOn Arena, McAleece Park & Recreation Complex, and Petrakis Park, the site also offers the Q Casino, a hotel, marina, and planned family entertainment offerings. Schmitt Island is the type of development that traditionally supports sports complexes nationally, offering amenities for daily and overnight visitors. Also, while there is an identified need for quality baseball and softball facilities in Dubuque, it is the judgement of the Consulting Team that due to site constraints, the most appropriate sports and recreation development on Schmitt Island should be based in indoor athletic programming, despite the existing baseball and softball diamonds on site at McAleece Park & Recreation Complex and Petrakis Park. Page 375 of 959 82 Program Recommendations Overview (Continued) On the other hand, there are potential risks when considering a sports and recreation development in Dubuque, and furthermore on Schmitt Island. For example, the hotel supply in the market may be a limiting condition for tournaments and attracting overnight visitors, as most tournament holders require room blocks for their participants and spectators. Additionally, there are existing parking limitations on the Schmitt Island site, which will have to be addressed in order to absorb the projected increased traffic to the site. Other than support infrastructure such as hotel rooms and parking, there are a few factors that will be key to the development and ongoing success of this project, such as exploring partnership opportunities. It will be important to develop the appropriate partnerships for financing, operating, and programming a new sports development on Schmitt Island. Furthermore, the orientation and success of this development will fall under two primary buckets: community use and sports tourism. While the majority of programming for sports tourism will occur on the weekends, the community will be utilizing the facility on weekdays. Base on input from existing local sports participants, there may be a paradigm shift relevant to the rental model that will be required to support a tournament quality facility. Despite these challenges, there is arguably a more significant risk of not developing a sports tourism quality facility in Dubuque, which would result in the persistence of a gap in the local market for athletic facility offerings and the continuation of sports tourism dollars being leaked into other markets. In achieving the goal of evaluating potential sports and recreation development scenarios for the Dubuque market and further, on Schmitt Island, the following Scenarios A-F were assessed. Each scenario was considered in relation to the market demand, feasibility, and viability of development on Schmitt Island. Page 376 of 959 83 Program Recommendations Schmitt Island Development Scenarios Scenario A: Maintaining the site on Schmitt Island including ImOn Arena, McAleece Park & Recreation Complex, and Petrakis Park as-is. The Consulting Team has concluded that there is a strong market opportunity for a facility in Dubuque and on Schmitt Island and there is an abundance of need for additional athletic facilities across all sports. Not developing a sports and recreation complex would be a missed opportunity for the market. Page 377 of 959 84 Program Recommendations Schmitt Island Development Scenarios Scenario B: Developing a small sports complex in addition to ImOn Arena as well as improving the existing baseball and softball diamonds at McAleece Park & Recreation Complex and Petrakis Park. This scenario also plans for a future expansion of ice at ImOn Arena. One goal of the sports and recreation development on Schmitt Island is to encourage year-round site activation. Due to the seasonal limitations of baseball and softball, there will be less site activation as a result of baseball and softball programming compared to indoor sporting events. This scenario also restricts the capability of developing a full-fledged multipurpose indoor facility as there are only 4 basketball courts in this scenario. Page 378 of 959 85 Program Recommendations Schmitt Island Development Scenarios Scenario C: A focus on the fields with improvements and upgrades to two of the existing baseball and softball diamonds at McAleece Park & Recreation Complex and Petrakis Park and converting the other two diamonds into multipurpose fields. No improvements to ImOn Arena. Similarly to Scenario B, while there is an identified need in the community for improved baseball and softball diamonds, Scenario C will result in a challenge to stimulate year-round foot traffic to the site compared to an indoor facility. While there is demand for quality baseball and softball diamonds in Dubuque, it is of the judgement of the Consulting Team that baseball and softball diamonds may not be the highest and best use of the Schmitt Island site. Further, this Scenario does not include upgrades or expansion plans to ImOn Area, resulting in the persistence of an unmet demand in the market for indoor athletic space. Page 379 of 959 86 Program Recommendations Schmitt Island Development Scenarios Scenario D: A full indoor sports court and turf complex buildout on one existing baseball/softball diamond at McAleece Park & Recreation Complex and Petrakis Park while preserving and upgrading the other three diamonds. There will also be an addition to ImOn Arena to develop one seasonal ice sheet that has the capability to transition from ice to courts or turf during the off-season for ice sports. The size and scale of this development scenario may be too robust for the Dubuque market and the regional draw for indoor turf may be limited. Scenario D would also require the displacement of one of the existing baseball and softball diamonds at McAleece Park & Recreation Complex and Petrakis Park and a relocation effort would be necessary in order to continue to serve key user groups. Page 380 of 959 87 Program Recommendations Schmitt Island Development Scenarios Scenario E: A large indoor sports complex on two of the four existing baseball and softball diamonds at McAleece Park & Recreation Complex and Petrakis Park. One baseball diamond and one softball diamond would be maintained and improved and one seasonal ice sheet that has the capability to transition from ice to courts or turf during the off-season for ice sports would be added to ImOn Arena. The Consulting Team considers this scenario to be the most appropriate for the market opportunity and feasibility of development on Schmitt Island due to the development of the additional ice sheet and volume of indoor court space. However, due to the cost associated with two separate facilities, this scenario would likely only be viable if key baseball and softball diamond users are project partners, such as the local school district and higher education institutions. Page 381 of 959 88 Program Recommendations Schmitt Island Development Scenarios Scenario F: A small indoor sports complex and one seasonal ice sheet that has the capability to transition from ice to courts or turf during the off-season for ice sports, both attached to ImOn Arena. One baseball diamond and one softball diamond would be maintained and improved at McAleece Park & Recreation Complex and Petrakis Park while the other two diamonds will transition to multipurpose outdoor fields. Scenario F, while limited by not developing a full-fledged indoor facility and necessitating key baseball and softball programming partners, this scenario is likely the most viable for not only the Dubuque market, but particularly for the Schmitt Island development site. This scenario addresses the local need for additional athletic surfaces without fully displacing the baseball and softball facilities on Schmitt Island, and enabling the site to attract indoor athletic tournaments without overloading site capacity Page 382 of 959 89 Program Recommendations Observations It is of the opinion of the Consulting Team that Scenarios A-C are the least effective options to achieve the goal of catalyzing Sports Tourism in the market. Due to the limitations of the baseball/softball season, existing regional facilities, and other proximate developments in the pipeline, it is suggested that other athletic surfaces, such as multipurpose indoor and ice, be the focus of a new sports complex in Dubuque. While there is a demand for baseball and softball facilities in Dubuque, Schmitt Island is not the ideal site, and an indoor sports and recreation complex is more logical to be located on Schmitt Island. Looking through the lens of sports tourism, the Consulting Teams views Scenarios D-F as the most viable options to advance the sports tourism market in Dubuque. There is a strong case for additional indoor surfaces such as indoor courts and ice. Existing facilities that are offered in Dubuque are often unavailable for use due to availability and quality challenges. Further, Scenario F is positioned to be the highest and best use of the site on Schmitt Island to develop a sports and recreation complex to serve local demand while also attracting regional and national events to the market. This scenario preserves the baseball/softball diamonds to allow for continued use by key user groups, while also developing an indoor complex with a seasonal arena to expand local utilization and event opportunity. This will result in year-round site activation from all sports programming without putting strain on the site limitations. From a financial feasibility standpoint, Scenario F is a culmination of the research conducted by the Consulting Team to right-size the business model to be viable from both community and sports tourism perspectives. Overall, the outcome of the market analysis makes a strong case for programming for indoor courts and ice on Schmitt Island. One challenge for indoor courts may be the price elasticity of the market and the practicality of local users shifting to higher rental rates. Further, there will be operational cost savings for a development additional ice sheet, suggesting that if the development approach were to be phased, ice should be the primary focus. In the vein of viability, leveraging public-private partnerships will be essential for an improved sports and recreation destination on Schmitt Island from development to operations. Beyond Schmitt Island, this project should catalyze community-wide economic development, such as the growth in hotel room supply and other supporting infrastructure in response to the projected increased market visits. Page 383 of 959 5. Demand Projections, Economic & Fiscal Impacts, and Funding Strategies Page 384 of 959 5.1 Demand Projections Page 385 of 959 92 Demand Projections Overview To properly estimate the potential demand for a new indoor sports complex, the historical operations at existing athletic facilities, including ImOn Arena, were extensively analyzed in order to understand the existing conditions. The historical operation data was then used to develop recommendations relative to the proposed facility’s program (e.g., number of surfaces, community space, and other amenities). Based upon this program, and considering the historical and existing demand, we projected demand at an expanded indoor facility. Johnson Consulting is of the opinion that many of the projected utilization levels as well as rental rates assumed are fairly conservative and in line with this conceptual planning phase of the proposed development. The following subsection will provide separate demand projections for the additional ice sheet at ImOn Arena and the indoor sports complex expansion. Key Assumptions It is important to note that prior to reviewing the following projections, a set of initial assumptions had to be made in order to properly form a business plan for the proposed indoor sports complex on Schmitt Island. The following demand projections are based on the programming recommendations from the Consulting Team, which includes adding an additional seasonal ice sheet to ImOn Arena and an indoor court facility expansion that includes 6 basketball courts. For the purpose of this analysis, Johnson Consulting assumed that: •Schmitt Island, and further, the existing ImOn Arena building, is the development site. • All existing contracts and agreements with ImOn Arena will be renegotiated. •A public-private partnership will be leveraged for development. •A third-party operator will oversee daily operations. Page 386 of 959 93 Demand Projections It often takes time for facilities to reach maximum utilization levels, but as this development is building off of an already established destination on Schmitt Island at ImOn Arena, the complex will be a distinguished regional asset. During the first few years of operations, there will be a need for an in-house promoter, local sports organizations, and the facility manager to target tournaments and promote rentals, especially for the indoor court space. Establishing a presence in the growing indoor sports facility market will be important in nurturing what effectively amounts to a new market niche for the City of Dubuque and the greater region, as there is not a similar facility within a 90-minute drive of the project site. With this development, the demand profile at the indoor complex will, over time, increase in volume and improve in quality. The following demand sectors can be expected: Tournaments – Based upon interviews with local industry professionals, there are currently insufficient facilities in the area to host local and regional winter indoor tournaments particularly for hockey, basketball, and volleyball. The addition of a new facility with greater capacity and amenities is perceived to have the ability to attract regional youth sport associations. In addition, the location of the hotels and family entertainment infrastructure will encourage overnight visits by attendees, generating additional room nights and increasing the economic impact in the surrounding area. League Play – The indoor ice and multipurpose sports complex will be a natural fit for local league play, which will generate weekday demand that may not otherwise be filled through tournament play. Both youth and adult leagues are suitable for the facility. In order to ensure a seamless integration into the market, the facility should work to expand existing leagues that are short on ice and indoor court space. There is already an established league calendar for ImOn Arena, which is expected to grow with the additional sheet of ice. Camps/Clinics/Lessons/Practice – Similar to tournaments and leagues, camps, and clinics can either be held by outside promoters that rent the facility to hold the event, or held in-house with participants charged an entrance fee. Camps are currently offered by some local facilities, but the size and quality of the new facility will enable it to handle larger camps and sports festivals that could possibly draw from a larger market as well. These types of events can expect to last three-to-four days and draw professional athletes and coaches as instructors. Lastly, the facility can be made available to Dubuque Public Schools and local higher educational institution’s sports teams that are in need of indoor ice and court space. Page 387 of 959 94 Demand Projections Skills Training – Another type of event that could be used to maximize use of the facility is skills training sessions. Skills training would draw demand from those already using the facility for other events. This event type would likely consist of hour-long rentals that can be offered during downtime at the facility during the week when there is no league play. This training can be for both the ice as well as courts, depending on the type of sports. Consumer Shows – Regionally, there seems to be limited opportunity for such events; however, hosting occasional consumer shows and festivals will act as ‘filler’ for weekends when demand for tournaments and other sports-related functions are low due to seasonality. Ideally, the promotional arm of the facility would take an active role in attracting and developing consumer shows and festivals at the venue. Consumer shows would target more of a local attendance base, offering home improvement and other related types of shows. This event type will generate most of its room night demand from exhibitors and has proven successful in sports facilities similar to the one proposed. Festivals and Other Events – In addition to the above events, the facility could also serve as a venue for corporate rentals, parties, shows and community events. The indoor facility would be able to further maximize the number of event days by hosting other non-sports related events to fully utilize the facility during off-season periods of the year. The sports complex will not compete with the current event venues in Dubuque, but rather host events that cannot be accommodated anywhere else during non-peak season. Page 388 of 959 95 Demand Projections Events & Attendance The table at right presents a projected event demand calendar for the indoor sports complex and ice arena’s first 10 years of operations. As is common with these types of facilities, demand is expected to ramp up and reach stabilization in Year 5. The primary driver of events will be new demand currently unable to be accommodated at existing facilities. As shown, in Year 5, there is projected to be 209 annual events and 126,561 total attendees, including both participants and spectators. Multipurpose Indoor Sports Complex & Ice Arena Complex - Dubuque, IA Events & Attendance Year 5 (Stabilization) Participant Spectator Total Activity Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Attendance Attendance Attendance Tournaments - Regional Ice Sports 5 6 6 7 7 7 7 7 7 7 4,200 8,400 12,600 Basketball 3 4 5 5 5 5 5 5 5 5 5,000 12,500 17,500 Volleyball 5 6 7 8 8 8 8 8 8 8 4,000 10,000 14,000 Wrestling 2 2 3 3 3 3 3 3 3 3 1,200 3,000 4,200 Pickleball 4 5 5 6 6 6 6 6 6 6 6,000 15,000 21,000 Gymnastics 1 2 2 2 2 2 2 2 2 2 2,000 5,000 7,000 Cheer 1 1 1 1 1 1 1 1 1 1 1,000 2,500 3,500 Other (Martial Arts, Judo/Jiu Jitsu)1 2 2 2 2 2 2 2 2 2 900 2,250 3,150 Tournaments - Local Ice Sports 7 8 8 9 9 9 9 9 9 9 2,700 5,400 8,100 Basketball 3 4 5 5 5 5 5 5 5 5 3,000 6,000 9,000 Volleyball 1 2 2 2 2 2 2 2 2 2 600 1,200 1,800 Wrestling 0 0 0 0 0 0 0 0 0 0 0 0 0 Pickleball 3 4 5 5 5 5 5 5 5 5 1,250 2,500 3,750 Gymnastics 0 0 0 0 0 0 0 0 0 0 0 0 0 Cheer 0 0 0 0 0 0 0 0 0 0 0 0 0 Other (Martial Arts, Judo/Jiu Jitsu)1 1 1 1 1 1 1 1 1 1 225 450 675 Leagues Ice Sports 62 70 74 78 82 82 82 82 82 82 6,888 6,888 13,776 Basketball 8 10 12 13 13 13 13 13 13 13 2,600 2,600 5,200 Volleyball 8 10 12 13 13 13 13 13 13 13 1,300 1,300 2,600 Wrestling 0 0 0 0 0 0 0 0 0 0 0 0 0 Gymnastics 2 2 3 3 3 3 3 3 3 3 600 600 1,200 Cheer 3 4 5 5 5 5 5 5 5 5 1,500 1,500 3,000 Other (Martial Arts, Judo/Jiu Jitsu)0 0 0 0 0 0 0 0 0 0 0 0 0 Camps/ Clinics/ Lessons Ice Sports 6 7 7 8 8 8 8 8 8 8 600 600 1,200 Basketball 3 4 5 5 5 5 5 5 5 5 250 250 500 Volleyball 3 4 5 5 5 5 5 5 5 5 250 250 500 Wrestling 1 2 2 2 2 2 2 2 2 2 100 100 200 Pickleball 3 3 4 4 4 4 4 4 4 4 200 200 400 Gymnastics 1 1 1 1 1 1 1 1 1 1 50 50 100 Cheer 2 2 3 3 3 3 3 3 3 3 150 150 300 Other (Martial Arts, Judo/Jiu Jitsu)5 5 6 7 7 7 7 7 7 7 175 175 350 Special Events Special/Community/Miscellaneous Events 1 2 2 2 2 2 2 2 2 2 3,000 0 3,000 Total 145 172 193 205 209 209 209 209 209 209 45,818 80,743 126,561 Source: Johnson Consulting Page 389 of 959 5.2 Economic & Fiscal Impact Analysis Page 390 of 959 97 Economic & Fiscal Impact Analysis Overview Economic Impact is defined as incremental new spending in an economy that is the direct result of certain activities, facilities, or events. For the purpose of this analysis, impact totals are discussed in terms of the Dubuque economy. The levels of impacts are described as follows: Direct Spend – spending that occurs as a direct result of the facility’s operation (example: attendee purchases meal at restaurant nearby). Indirect Spend – re-spending of the initial direct expenditures on goods and services (example: restaurant purchases more food from supplier). Induced Spend – changes in local consumption due to the personal spending by employees whose incomes are supported by direct and indirect spending (example: waiter at the restaurant has more personal income to spend). Increased Earnings – measures increased employee and worker compensation related to the facility’s operation. Employment – measures the number of full-time equivalent (FTE) jobs supported in the local economy as a result of the facility’s operation. Fiscal Impact – reflects tax revenues to local and state governments that result from the facility’s operation. Page 391 of 959 98 Economic & Fiscal Impact Analysis Rates The table on the upper right summarizes the multiplier rates utilized in the economic impact estimates to calculate indirect spending, induced spending, increased earnings, and employment. These multiplier rates are derived from an IMPLAN input- output model, which is a nationally recognized analytical tool commonly used to estimate economic impacts. An input-output model analyzes the commodities and income that normally flow through various sectors of the economy. Tax Rates The table on the bottom right summarizes the applicable tax rates utilized in the fiscal impact estimates. They focus on the taxes directly affected by visitors’ spending activities: •General Sales Tax – is 7.0 percent total, which includes State sales tax at 6 percent and County sales tax at 1.0 percent. There is no City sales tax. •Hotel/ Motel Tax – is applied to hotel room sales, in addition to Sales and Use Tax. Transient Occupancy Tax is 7.0 percent. Multipurpose Indoor Sports Complex & Ice Arena Complex - Dubuque, IA Economic Impact Multilpiers Impact Multiplier Base Indirect Spending 0.2327 per $1 of direct spending Induced Spending 0.1950 per $1 of direct spending Increased Earnings 0.2693 per $1 of direct spending Increased Employment 13.2444 per $1 million of direct spending Source: Johnson Consulting Multipurpose Indoor Sports Complex & Ice Arena Complex - Dubuque, IA Applicable Tax Rates Rate General Sales Tax State Sales Tax 6.0%of total spending County Sales Tax 1.0%of total spending Total 7.0% Hotel Occupancy Tax County TOT 7.0%of spending on lodging Source: IA Dept. of Revenue Page 392 of 959 99 Economic & Fiscal Impact Analysis Estimated Regional Impacts – Multipurpose Indoor Sports Complex The table at right summarizes the estimated activity and spending volume at the proposed indoor sports complex for regional events. Regional and special events, unlike local events, are assumed to attract overnight visitors, resulting in lodging tax revenues, meals, and other expenses, for these events. As shown, in Year 5, the complex is estimated to generate 35,175 room nights, generate $14.3 million in total spending, 133 jobs, $2.7 million in increased earnings, and $1 million in total tax revenues from sales and lodging taxes. Multipurpose Indoor Sports Complex - Dubuque, IA Economic and Fiscal Impacts - Regional Tournaments / Special Events Assumptions Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Activity Volume # of Events*18 24 27 29 29 29 29 29 29 29 Attendance Participants 12,476 16,634 18,714 20,100 20,100 20,100 20,100 20,100 20,100 20,100 Spectators 31,190 41,586 46,784 50,250 50,250 50,250 50,250 50,250 50,250 50,250 Total 43,666 58,221 65,498 70,350 70,350 70,350 70,350 70,350 70,350 70,350 Length of Stay 2.5 Nights Est. Room Nights (assumes double occupancy)Ratio Of Participants 40.0%6,238 8,317 9,357 10,050 10,050 10,050 10,050 10,050 10,050 10,050 Of Spectators 40.0%15,595 20,793 23,392 25,125 25,125 25,125 25,125 25,125 25,125 25,125 Total 21,833 29,110 32,749 35,175 35,175 35,175 35,175 35,175 35,175 35,175 Est. Spending Volume ($000) On Lodging $120.00 / RN $2,620 $3,581 $4,129 $4,546 $4,659 $4,776 $4,895 $5,017 $5,143 $5,271 On Meals and Incidentals $69.00 / P 3,013 4,118 4,748 5,227 5,358 5,492 5,629 5,770 5,914 6,062 Total Direct Spending $5,633 $7,698 $8,877 $9,773 $10,017 $10,268 $10,524 $10,788 $11,057 $11,334 Economic Impact ($M)Multipliers Direct Spending $5.6 $7.7 $8.9 $9.8 $10.0 $10.3 $10.5 $10.8 $11.1 $11.3 Indirect Spending 0.2327 1.3 1.8 2.1 2.3 2.3 2.4 2.4 2.5 2.6 2.6 Induced Spending 0.1950 1.1 1.5 1.7 1.9 2.0 2.0 2.1 2.1 2.2 2.2 Total Spending $8.0 $11.0 $12.7 $14.0 $14.3 $14.7 $15.0 $15.4 $15.8 $16.2 Increased Earnings 0.2693 $1.5 $2.1 $2.4 $2.6 $2.7 $2.8 $2.8 $2.9 $3.0 $3.1 Employment (FTE jobs)13.2444 75 102 118 129 133 136 139 143 146 150 Fiscal Impact ($000)Rate State Sales Tax 6.00%$0.3 $0.5 $0.5 $0.6 $0.6 $0.6 $0.6 $0.6 $0.7 $0.7 County Sales Tax 1.00%0.06 0.08 0.09 0.10 0.10 0.10 0.11 0.11 0.11 0.11 County TOT 7.00%0.2 0.3 0.3 0.3 0.3 0.3 0.3 0.4 0.4 0.4 Total $0.6 $0.8 $0.9 $1.0 $1.0 $1.1 $1.1 $1.1 $1.1 $1.2 Source: Johnson Consulting Page 393 of 959 100 Economic & Fiscal Impact Analysis Total Economic Impact – Multipurpose Indoor Sports Complex The table below summarizes the estimated spending volume at the proposed indoor sports complex for local, regional, and special events combined. As shown, in Year 5, the sports complex is estimated to generate $16.6 million in total spending, 154 jobs, $3.1 million in increased earnings, and $1.1 million in total tax revenues. Multipurpose Indoor Sports Complex - Dubuque, IA Economic and Fiscal Impacts - Local and Regional Tournaments / Special Events Assumptions Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Economic Impact ($M)Multipliers Direct Spending $6.8 $9.0 $10.3 $11.3 $11.6 $11.9 $12.2 $12.5 $12.8 $13.2 Indirect Spending 0.2327 1.6 2.1 2.4 2.6 2.7 2.8 2.8 2.9 3.0 3.1 Induced Spending 0.1950 1.3 1.8 2.0 2.2 2.3 2.3 2.4 2.4 2.5 2.6 Total Spending $9.7 $12.9 $14.7 $16.1 $16.6 $17.0 $17.5 $17.9 $18.3 $18.8 Increased Earnings 0.2693 $1.8 $2.4 $2.8 $3.0 $3.1 $3.2 $3.3 $3.4 $3.5 $3.5 Employment (FTE jobs)13.2444 90 120 136 150 154 158 162 166 170 174 Fiscal Impact ($000)Rate State Sales Tax 6.00%$0.4 $0.5 $0.6 $0.7 $0.7 $0.7 $0.7 $0.8 $0.8 $0.8 County Sales Tax 1.00%0.07 0.09 0.10 0.11 0.12 0.12 0.12 0.13 0.13 0.13 County TOT 7.00%0.2 0.3 0.3 0.3 0.3 0.3 0.3 0.4 0.4 0.4 Total $0.7 $0.9 $1.0 $1.1 $1.1 $1.2 $1.2 $1.2 $1.3 $1.3 Source: Johnson Consulting Page 394 of 959 101 Economic & Fiscal Impact Analysis Construction Impacts – Multipurpose Indoor Sports Complex The estimated hard cost of construction of the indoor sports complex, as provided by RDG, is approximately $20 million. The one-time construction impact of this development is projected to generate 370 jobs, $10.3 million in total spending, and $720,000 in total tax revenues. Multipurpose Indoor Sports Complex - Dubuque, IA Estimated One-Time Construction Impact- Indoor Multiplier or Tax Rate Amount Est. Hard Costs for Development $20,000,000 Impact on Construction Jobs % of Costs Spent on Labor 55.0% Labor Costs $11,000,000 Average Construction Laborer Salary $30,000 # of On-Site Construction Jobs 370 ✓ Economic Impact % of Costs Spent on Material 45.0% Material Costs $9,000,000 % Spent Locally 80.0% Direct Construction Spending $7,200,000 Indirect Spending 0.23 1,680,000 Induced Spending 0.20 1,400,000 Total Spending $10,280,000 ✓ Increased Earnings 0.27 $1,940,000 ✓ Employment (in FTE Jobs)13.24 100 ✓ Fiscal Impact Sales Tax 7.00%$720,000 Total $720,000 ✓ Source: Johnson Consulting Page 395 of 959 102 Economic & Fiscal Impact Analysis Estimated Regional Impacts – Ice Arena Complex The table at right summarizes the estimated activity and spending volume at the proposed ice arena complex for regional events. Regional and special events, unlike local events are assumed to attract overnight visitors, resulting in lodging tax revenues, meals, and other expenses, for these events. As shown, in Year 5, the ice arena complex is estimated to generate 11 ,644 room nights, generate $4.5 million in total spending, 41 jobs, $800,000 in increased earnings, and $300,000 in total tax revenues from sales and lodging taxes. Ice Arena Complex - Dubuque, IA Economic and Fiscal Impacts - Regional Tournaments / Special Events Assumptions Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Activity Volume # of Events*12 14 14 16 16 16 16 16 16 16 Attendance Participants 5,175 6,038 6,038 6,900 6,900 6,900 6,900 6,900 6,900 6,900 Spectators 10,350 12,075 12,075 13,800 13,800 13,800 13,800 13,800 13,800 13,800 Total 15,525 18,113 18,113 20,700 20,700 20,700 20,700 20,700 20,700 20,700 Length of Stay 2.5 Nights Est. Room Nights (assumes double occupancy)Ratio Of Participants 45.0%2,911 3,396 3,396 3,881 3,881 3,881 3,881 3,881 3,881 3,881 Of Spectators 45.0%5,822 6,792 6,792 7,763 7,763 7,763 7,763 7,763 7,763 7,763 Total 8,733 10,188 10,188 11,644 11,644 11,644 11,644 11,644 11,644 11,644 Est. Spending Volume ($000) On Lodging $120.00 / RN $1,048 $1,253 $1,284 $1,505 $1,542 $1,581 $1,620 $1,661 $1,702 $1,745 On Meals and Incidentals $69.00 / P 1,071 1,281 1,313 1,538 1,577 1,616 1,656 1,698 1,740 1,784 Total Direct Spending $2,119 $2,534 $2,598 $3,043 $3,119 $3,197 $3,277 $3,359 $3,443 $3,529 Economic Impact ($M)Multipliers Direct Spending $2.1 $2.5 $2.6 $3.0 $3.1 $3.2 $3.3 $3.4 $3.4 $3.5 Indirect Spending 0.2327 0.5 0.6 0.6 0.7 0.7 0.7 0.8 0.8 0.8 0.8 Induced Spending 0.1950 0.4 0.5 0.5 0.6 0.6 0.6 0.6 0.7 0.7 0.7 Total Spending $3.0 $3.6 $3.7 $4.3 $4.5 $4.6 $4.7 $4.8 $4.9 $5.0 Increased Earnings 0.2693 $0.6 $0.7 $0.7 $0.8 $0.8 $0.9 $0.9 $0.9 $0.9 $1.0 Employment (FTE jobs)13.2444 28 34 34 40 41 42 43 44 46 47 Fiscal Impact ($000)Rate State Sales Tax 6.00%$0.1 $0.2 $0.2 $0.2 $0.2 $0.2 $0.2 $0.2 $0.2 $0.2 County Sales Tax 1.00%0.02 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.03 0.04 County TOT 7.00%0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 Total $0.2 $0.3 $0.3 $0.3 $0.3 $0.3 $0.3 $0.4 $0.4 $0.4 Source: Johnson Consulting Page 396 of 959 103 Economic & Fiscal Impact Analysis Total Economic Impact – Multipurpose Indoor Sports Complex The table below summarizes the estimated spending volume at the proposed ice arena complex for local, regional, and special events combined. As shown, in Year 5, the ice arena complex is estimated to generate $5.7 million in total spending, 53 jobs, $1.1 million in increased earnings, and $600,000 in total tax revenues. Ice Arena Complex - Dubuque, IA Economic and Fiscal Impacts - Local and Regional Tournaments / Special Events Assumptions Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Economic Impact ($M)Multipliers Direct Spending $2.9 $3.3 $3.4 $3.9 $4.0 $4.1 $4.2 $4.3 $4.4 $4.5 Indirect Spending 0.2327 0.7 0.8 0.8 0.9 0.9 0.9 1.0 1.0 1.0 1.0 Induced Spending 0.1950 0.6 0.6 0.7 0.8 0.8 0.8 0.8 0.8 0.9 0.9 Total Spending $4.1 $4.8 $4.9 $5.5 $5.7 $5.8 $6.0 $6.1 $6.3 $6.4 Increased Earnings 0.2693 $0.8 $0.9 $0.9 $1.0 $1.1 $1.1 $1.1 $1.2 $1.2 $1.2 Employment (FTE jobs)13.2444 38 44 45 51 53 54 55 57 58 60 Fiscal Impact ($000)Rate State Sales Tax 6.00%$0.2 $0.2 $0.2 $0.2 $0.2 $0.2 $0.3 $0.3 $0.3 $0.3 County Sales Tax 1.00%0.03 0.03 0.03 0.04 0.04 0.04 0.04 0.04 0.04 0.05 County TOT 7.00%0.2 0.2 0.2 0.3 0.3 0.3 0.3 0.3 0.3 0.3 Total $0.4 $0.5 $0.5 $0.5 $0.6 $0.6 $0.6 $0.6 $0.6 $0.6 Source: Johnson Consulting Page 397 of 959 104 Economic & Fiscal Impact Analysis Construction Impacts – Ice Arena Complex The estimated hard cost of construction of the ice arena complex, as provided by RDG, is approximately $28 million. The one-time construction impact of this development is projected to generate 510 jobs, $14.4 million in total spending, and $1.01 million in total tax revenues. Ice Arena Complex - Dubuque, IA Estimated One-Time Construction Impact- Indoor Multiplier or Tax Rate Amount Est. Hard Costs for Development $28,000,000 Impact on Construction Jobs % of Costs Spent on Labor 55.0% Labor Costs $15,400,000 Average Construction Laborer Salary $30,000 # of On-Site Construction Jobs 510 ✓ Economic Impact % of Costs Spent on Material 45.0% Material Costs $12,600,000 % Spent Locally 80.0% Direct Construction Spending $10,080,000 Indirect Spending 0.23 2,350,000 Induced Spending 0.20 1,970,000 Total Spending $14,400,000 ✓ Increased Earnings 0.27 $2,710,000 ✓ Employment (in FTE Jobs)13.24 130 ✓ Fiscal Impact General Sales Tax 7.00%$1,010,000 Total $1,010,000 ✓ Source: Johnson Consulting Page 398 of 959 5.3 Funding Strategies Page 399 of 959 106 Funding Strategies Overview This section discussed recent trends in sports complex funding and provides an inventory of potential funding sources and strategies. Funding a sports complex in Dubuque can be approached through various strategies including public funding, private investments, community partnerships, grants, taxing, and other funding tools. There are programs unique to Dubuque, such as the Iowa Economic Authority Sports Tourism Program, which provides financial assistance for projects that market or promote sporting events in Iowa. Further, sports complexes can leverage funding tools that other public facilities may not, such as, anchor tenant agreements and associations with partners such as higher education institutions. Each funding strategy has its own set of requirements, benefits, and potential challenges. A comprehensive approach that combines multiple funding sources is likely to increase the financial viability of financing a project. Page 400 of 959 107 Funding Strategies Case Study: Community First Champion Center The Community First Champion Center opened in 2019. The facility is owned by the Town of Grand Chute and is managed by the Fox Cities Sports Development Inc. The 164,000 SF facility features an ice rink, a seasonal ice rink that converts into four basketball courts, and a fieldhouse with four additional courts. The initial cost of construction in 2019 was $30 million. Development funding came from a 3% hotel tax, which also helped to fund the Fox Cities Exhibition Center. Case Study: TBK Bank Sports Complex TBK Bank Sports Complex opened in 2018 and is privately owned. The 273,000 SF indoor complex features 8 basketball courts and a multipurpose turf field. There are also 4 rectangular fields and 10 baseball/softball diamonds. The development cost $50 million and was primarily funded through private investments and naming rights. There is also a planned $75 million expansion that will be supported through the City of Bettendorf through $5.8 million in grants and a 20-year 75% tax increment finance rebate. Page 401 of 959 108 Funding Strategies Case Study: MidAmerican Energy Company RecPlex The RecPlex was developed through a public-private partnership with the city. The facility opened in 2021 and offers 300,000 SF of indoor space featuring two ice rinks, with plans to build a third, 4 courts, pickleball courts, and indoor turf, in addition to three outdoor multipurpose rectangular fields. The total cost of development was $59.8 million including $16.5 million in city bonds backed by future local option sales tax revenue, $16.4 million in city bonds backed by future hotel-motel tax revenue, $12.4 million in corporate and individual donations and pledges, naming rights, sponsorships, and a mix of other grants, loans and tax revenue. The additional sheet of ice would cost north of $30 million and would be funded through private donations, a bond funded through local option sales tax, and grants. Case Study: Prospect Meadows Sports Complex Prospect Meadows is a 501(c)3 nonprofit organization that developed an 8 baseball/softball diamonds complex on 128 acres in 2019. The $14 million complex was developed through a combination of public and private funding sources. Approximately $5.9 million was raised from private donors, including Perfect Game who serves as an anchor tenant and commits to bringing 1,000 teams annually to the complex for 15 years. Total fundraising efforts amassed $11 .75 million. $5.85 million was secured from public entities, including Linn County and the cities of Marion and Cedar Rapids. Linn County signed a 95- year lease agreement for the 128 acres. Page 402 of 959 109 Funding Strategies Funding Mechanisms There are numerous financing tools used to fund facilities that could be applied to a sports and recreation development in Dubuque. These include: 1.Pay-As-You-Go Financing: Projects that are relatively small or that are financed in municipalities with rapidly growing tax bases are sometimes paid for directly out of appropriated funds each year. However, the majority of facilities are financed with long-term debt so that payment of capital costs corresponds to the period over which the facility is used and its economic benefits are realized. Some portion of the proposed stadium might be paid for out of the City’s general fund, but that portion is likely to make up a small amount of the overall capital stack. 2.General Obligation Bond Financing: Long-term bonding using the general obligation of the City, County, and/ or State either directly as part of a capital outlay program or as guaranteed debt of an authority that would provide strong credit and relatively low borrowing costs. GO bonding is typically reserved for projects perceived to benefit the population as a whole, such as educational, economic development, or transportation, and the proposed complex certainly falls within this category of projects. This is a strong financing option for this project, though it will be important to identify funds which would make sense to service the debt on them. 3.Revenue Bond Financing: Revenue bonds are another source of finance that can be used to build, own, and operate public purpose facilities that have no power to tax. They derive their revenues from user fees and other sources and must finance general and capital expenditures out of these receipts and whatever amount they are permitted to borrow, which can be tailored to fit the specific requirements of the involved local and state governments. 4.Capital Development Funds: Certain public or non-profit organizations have funds devoted specifically to capital development projects. Often these funds are used for smaller, pay-as-you-go type projects, but they can also make up part of the capital stack on a larger project or improvement plan. This could be a viable funding source, though likely a small part of the overall capital stack. Page 403 of 959 110 Funding Strategies Funding Mechanisms 5.Naming Rights & Sponsorships: Sponsorships and particularly naming rights can be a substantial, long-term revenue stream for facilities. Given the proposed facility’s prominence within Dubuque and projected foot traffic, paired with the already established sponsors, this funding source could be significant, though still a relatively minor part of the overall capital stack. 6.Tourism Improvement District (TID): Similar to a traditional Business Improvement District (BID), a TID is a district in which a special assessment is levied on hotel room sales (and sometimes other sales such as tickets, retail, or meals). The money collected is managed by a dedicated non-profit or advisory board, often made up of local tourism industry stakeholders such as hoteliers and restauranteurs, and used to fund destination marketing and development initiatives. This could be viable for this project given its potential to bolster Dubuque’s tourism and hospitality industry. Taxing Mechanisms In addition to the financing tools described above, there are a number of taxing mechanisms that could be used to fund the sports complex, including: 1.Sales Taxes: Sales tax provides a strong credit structure because it is relatively predictable and tends to track with inflation and economic growth. A general sales tax increase, or expansion of the base, can provide a robust incremental revenue stream. However, these taxes are often difficult to implement because they primarily tax local residents and require referendum and/ or State legislative approval. There are examples of municipalities using a general sales tax, over a fixed period, to finance major capital projects. The quick-pay method enables municipalities to generate the necessary revenue over a short period of time, but a general sales tax is a blunt taxing instrument that does not provide a direct correlation between burden and benefit. Page 404 of 959 111 Funding Strategies Taxing Mechanisms 2.Hotel Occupancy Tax: Hotel taxes have the major advantage of primarily taxing out-of-town visitors, rather than local residents. Given that this facility would contribute to generating local hotel stays, a proportionate amount of hotel tax put to its financing would be reasonable. 3.Food and Beverage Tax: Food and beverage taxes have been used throughout the country to support the costs of developing, and renovating, public assembly facilities and to fund related infrastructure. The revenue potential is significant, as the second highest spend occurs on food service, after lodging. Food and beverage taxes are directed towards beneficiaries of the project and to some extent, non-residents. There may be an opportunity to leverage some portion of existing food and beverage tax revenues, or dedicating an additional point to support development and operations of the sports complex. 4.Tax Increment Financing (TIF): TIFs are based on the incremental tax value of ancillary economic development projects that are triggered by a major facility. The tax base of a defined TIF district is frozen and any increases in the future tax base are used to repay TIF bonds. While typically instated prior to construction of a new facility, they can be applied to support capital improvements and ongoing operations. The most powerful TIFs are those based on sales tax but there are many examples of property tax based TIFs throughout the country. This could be applicable to this project, though a district would need to be established. 5.Development Fees / Land Lease Income: Fees for the right to develop projects near a public assembly facility can assist in funding. These so-called linkage fees have been imposed in locations where land adjacent to a public assembly facility is at a premium, typically on hotels, parking decks, retail stores, and other uses that can benefit from their proximity to the facility. Page 405 of 959