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Baseball Minor League to DbqHonorable Mayor Terry Duggan And City Council of Dubuque, Iowa City Hall, 50 West 13th Street Dubuque, Iowa 52001 October 16, 2003 Re: Minor League Professional Baseball in Dubuque Dear Mayor Duggan and City Council: In July of 2003, members of Dubuque Initiatives were contacted by Michael Gartner, owner of the Iowa Cubs, about the possibility of bringing minor league professional baseball to Dubuque. Mr. Gartner also owns a Class ^ team in the Midwest League, currently located in Battle Creek, Michigan. He and his partners are very interested in moving that team, affiliated with the New York Yankees to Dubuque. Dubuque Initiatives members met with Mr. Gartner to discuss the concept. The stadium would be built in the Port of Dubuque, on property currently owned by Dubuque Initiatives and the City of Dubuque, on or adjacent to the location of the former Petrakis Park. As you know, minor league baseball was played there until the mid 1970s. In order to document the feasibility of bringing back minor league professional baseball and the construction of a new stadium, Dubuque Initiatives contracted with CSL International, a Minnesota-based sports and convention consulting group. The study results predict a team affiliated with Major League baseball would draw on average between 1500 and 2500 fans per ball game. The study also identified significant positive economic and fiscal impacts to the Dubuque area. A new stadium could create approximately 200 full and part time jobs and generate approximately $9,000,000 in additional spending. Dubuque Initiatives also contracted with HOK, the amhitectural firm that designed the Grand River Center, to provide possible layouts on the site and preliminary cost estimates. HOK's Sports division has designed most of the new stadiums built in the country. HOK staff Martin Dinitto confirmed that this location is perfect for a minor league stadium. HOK's preliminary estimates confirm that the cost of the new stadium should not exceed $15 Million. P.O. Box 1745 · Dubuque. lA 52004-1745 · (563) 589-4393 CSL also identified various financial resources that could be used to finance a new baseball stadium. Private and public funds are used throughout the country to finance new stadiums. Attached you will find a recommended financing plan for a new stadium. Dubuque Initiatives hosted three meetings with interested private citizens to test the results of the studies, and conducted a telephone survey to test the willingness of the citizens of Dubuque to support a referendum to assist in financing the new stadium. All of the meetings and results of the survey were very positive. As a result, the Dubuque Initiatives board unanimously approved the following recommendations to the City Council: The City Council request voter approval of a Capital Improvement Tax Levy of 33.2371 cents per thousand of assessed valuation for a pedod of twenty years, and the proceeds of the levy be earmarked and used solely for the proposed baseball stadium. If approved, the average homeowner will pay approximately $16 per year ($1.33 per month) more in property taxes. After the request is approved by the voters, the annual tax will be able to be used to borrow approximately $6 Million for the development costs of the baseball stadium. The City Council make application to the State of Iowa for Vision Iowa funds in the amount of $3,600,000 to assist in the construction of the baseball stadium. We are excited about the opportunity to assist in bringing minor league professional baseball back to the city of Dubuque. This facility will provide family entertainment at an affordable price, will build on and be supportive of the other venues in the Port of Dubuque, and will have a tremendous impact on the revitalization of Downtown Dubuque. Sincerely, Katie Krieg, President Dubuque Initiatives Eric Cc: Dubuque Initiatives Ballpark Financing Vision Iowa Team Lease $175,000 a year Naming Rights and Contributions ($270,000 a year for 10 years) Dubuque County Dubuque initiatives Ice Harbor TIF Subtotal = City Borrowing = Total = $3,600,000 $2,000,000 - $2,000,000 - $700,000 $700,000 ' $-0- $9,000,000 $6,OOO,0OO $15,000,000 City Borrowing - $6,000,000 Debt Payments Capital Improvement Levy Tax Rate - Impact on average homeowner - Pement increase in average homeowner property taxes - $523,110 a year 0.332371 $15.96 a year 3.24% MARKET~ FINANCIAL~ ECONOMIC IMPACT AND FUNDING ANALYSIS RELATED TO IOROFE$$1ONAL BASEBALL IN DUBUC~UE PRESENTED TO: DUBUQUE INITIATIVES~ INC. SEPTEMBER 15~ 200:3 September 15, 2003 Mr. William Baum Dubuque Initiatives, Inc. 50 West 13th Street Dubuque, Iowa 52001 Dear Mr. Battm: We have completed the report of our analysis with respect to the evaluation of the market and fmancial feasibility ora new minor league ballpark in Dubuque, Iowa. The attached report summarizes our research and analyses, and is intended to assist Dubuque Initiatives in the planning activities associated with the potential development of a new ballpark. The information contained in this report is based on estimates, assumptions and other information developed from research of the market, knowledge of the public assembly industry and other factors, including certain information you have provided. All information provided to us by others was not audited or verified, and was assumed to be correct. Because the procedures were limited, we express no opinion or assurances of any kind on the achievability of any estimated information contained herein and this report should not be relied upon for that purpose. Furthermore, there will be differences between estimated and act'eal results. This is because events and circumstances frequently do not occur as expected, and those differences may be material. We have no responsibility to update this report for events and circumstances occurring after the date of this report. We sincerely appreciate the opportunity to assist you with this project, and would be pleased to be of further assistance in the interpretation and application of our findings. Very truly yours, CSL International Table of Contents Executive Summary 1.0 Introduction 2.0 Minor League Baseball Overview 3.0 Local and Regional Market Analysis 4.0 Demographic and Socioeconomic Analysis 5.0 Competitive Facility Analysis 6.0 Comparable Facility Analysis 7.0 Market Demand and Building Program Analysis 8.0 Financial and Economic Impact Analysis 9.0 Funding Analysis i 1 2 4 7 12 13 21 33 46 Market and Financial Analysis of a Proposed New Minor League Ballpark Executive Summa~ Dubuque Initiative, Inc. ("DII") retained CSL International to conduct a market, financial and economic impact analysis mlatad to the viability of a new Class A minor league baseball franchise and stadium in Dubuque. The following report focuses on the study methods and results of the research and analyses conducted and is intended to assist in making informed decisions with regard to the feasibility of professional baseball in Dubuque. As this section is only a summary of the key findings, the fall report should be read in its entirety to ensure that all study methods, assumptions and analyses are considered. Minor League Overview It is assumed that a new franchise in Dubuque would play in the Class A Midwest League. The Midwest League is one of 15 minor leagues that are affiliated with Major League Baseball. The League consists of 14 franchises located throughout the Upper Midwest. The average Midwest League market has a population of approximately 404,000. Seating capacity among Midwest League ballparks averages approximately 6,100, and the average Midwest League franchise drew approximately 3,700 fans per game in 2003. Local and Regional Market Analysis The City of Dubuque is the county seat of Dubuque County and is located on the Mississippi River at the intersection of the Iowa, Wisconsin and Illinois borders. While the City of Dubuque has a population of approximately 57,300, the Dubuque metropolitan statistical area ("MSA"), defined as Dubuque County, has a population of 88,600. Manufacturing, education and health care play significant roles in the Dubuque-area economy. As of June 2003, the Dubuque region had an unemployment rate of 3.3 percent, well below the national rate of 6.5 percent. The Dubuque area offers a diverse selection of cultural, sporting and other spectator events as well as visual and performing arts. Sporting event entertainment options in the area consist mainly of Divisinn III collegiate athletics at Loras College, Clarke College and the University of Dubuque, as well as various high school athletic events. Dubuque also hosts the Dubuque Thunderbirds, a franchise in the Minnesota Junior Hockey League (MJHL). The 5,200-seat Five Flags Center serves as the region's primary sports and entertainment facility, hosting a variety of concerts, family shows, athletic events and other events. Demographic and Socioeconomic Analysis An important component in assessing the potential success of a new ballpark in Dubuque is the demographic and socioeconomic profile of the local market. The strength of a market in terms of its ability to draw events and spectators is measured in part by the size of the market area population and its spending characteristics. To gain an understanding of the relative strength of the Dubuque market area, it is useful m compare various demographic and socioeconomic characteristics among other communities supporting similar-sized facilities. The following exhibit summarizes the comparative statistics of Dubuque and other markets with populations under 500,000 currently hosting recently-built Class A ballparks. Demographic variables were analyzed for each market's MSA, as well as 25 and 50-mile radii surrounding the market. Market and Financial Analysis of a Proposed New Minor League Ballpark i Executive Summary As shown, the Dubuque market ranks wall below the cor~pamble market medians in population-related statistics such as total market population, household inventory and corporate inventory. However, Dubuque ranks relatively high with respect to income and spending related variables such as median household EB1 and retail sales. This could indicate that while the Dubuque market is smaller than most Class A markets hosting new stadiums, its population could demonstrate higher spending charactgristics in proportion to its population than other Class A markets. It is important to note that the demographics of a market are only one of many factors used to determine the viability of a franchise or facility within that market. It is also important to note that markets with similar demographic characteristics are currently supporting new minor league ballparks, and that none of these factors necessarily preclude the Dubuque market fi:om successfidly supporting a new ballpark and franchise. However, as a market with a relatively low population, one of the largest challenges may be maintaining an attendance level that will be sufficient to support a minor league ballpark. This may require creative marketing efforts and active community participation. Comparable Facility Analysis Since 1995, 12 new Class A ballparks have been constructed. The physical and operational characteristics of these new ballparks have bean analyzed to provide background information related to ballpark development trends. Data utilized was accumulated from CSL's existing database, information received from various publications, and interviews with facility management. The following chart outlines the physical characteristics of the comparable stadittras analyzed. Market and Financial Analysis of a Proposed New Minor League Ballpark ii Executive Summary As illustrated in the preceding chart, the comparable Class A ballparks analyzed have average seating capacities of approximately 6,100 and average premium seating inventories consisting of 13 suites and 870 club seats. Market Demand and Building Program Analysis The primary function of a new ballpark in Dubuque will be to host a Midwest League baseball team. To assess the ability of the proposed new ballpark in Dubuque to host other events, event types and number of event dates at comparable facilities were analyzed. In addition, potential event organizers and promoters were contacted to identify and evaluate the potential demand for other usage of the ballpark. Several analyses were completed to estimate potential attendance levels for the proposed franchise. Based on these analyses, average attendance estimates for a Midwest League team playing in a new ballpark in Dubuque have been developed. The following exhibit summarizes the key information used in estimating attendance at a new ballpark in Dubuque. Exhibit ES-3 Attendance Estimate Summary AllNew It is estimated that a Midwest League team in Dubuque could potentially achieve attendance levels between 1,500 and 2,500 per game. These estimates are at the low end of the attendance experienced at comparable facilities. This is due in part to the Dubuque market's low population relative to other markets supporting Class A franchises. Other Event Potential The primary function of the proposed facility will be to host the home games of the proposed new Class A franchise. While primary anchor tenants typically generate the most significant economic impact to an area and provide the ballpark's most regular event usage, additional use of the ballpark for other events is often a key part of the overall operations of minor league ballparks, creating an asset for the entire community. Other events that typically occur in a minor league baseball stadium include amateur, high school, and collegiate baseball, concerts, and other miscellaneous events. Analyzing event utilization at comparable facilities can serve as a first step in evaluating the overall market demand for additional events at a new ballpark in Dubuque. Market and Financial Analysis of a Proposed New Minor League Ballpark iii Executive Summary Based upon the analyses presented herein, it has been assumed that a new stadium in Dubuque could accommodate a broad range of events, q'he following exhibit summarizes an estimated number of events and the related attendance levels during the first years of the stadium's operation. These estimates are consistent with the average utilization of other comparable baseball facilities. Preliminary Premium Seating Analysis In order to assess the potential value of premium seating opportunities at a proposed new minor league ballpark, a preliminary premium seating analysis was performed. For purposes of this analysis, a review of existing premium seating options in.Dubuque was prepared, premium seating information from comparable Class A ballparks built since 1995 was gathered, and a corporate penettation analysis was performed. Data utilized was accumulated from existing databases, various publications, and interviews with facility representatives. This analysis was prepared to assist in the evaluation of potantial premium seating for a new ballpark in Dubuque on a comparative basis. Based on the analysis, it is estimated that a ballpark in Dubuque could support between 5 and 15 luxmy suites and 200 to 400 club seats. Financial and Economic Impact Analysis This section presents an analysis of the potential operating results that could be achieved by the proposed ballpark based on the results of the market analysis, and the economic and fiscal impacts that could be ganemted by the operations of the franchise and ballpark. Since detailed stadium design, configuration and cost estimates have not yet been specifically determined, the revenue and expense assumptions used in this analysis are based on results of historical operations at newly built comparable minor league ballparks and induslry trends. More detailed physical development planning must be completed before more precise estimates of facility financial operating results can be prepared. Once project planning is complete, specifically regarding the final lease structure and revenue allocations, the assumptions in this analysis should be updated. The updated assumptions could significantly affect the analysis of future operating results. The presentation of estimated operating results for a Class A team and ballpark are comprised of operating revenues, operating expenses, and estimated ballpark and franchise financial operations. Based on the assumptions developed in this analysis, a stabilized year of estimated stadium operating results is presented in Exhibit ES-5. The operating results are presented for three distinct scenarios. The most likely operating results are presented as the "Base" case scenario. These results represent the estimates supported by the market and comparable facility analysis completed as a part of this analysis. In addition to the base case, both high and low scenarios have bean built into the model to illustrate a wider range of operating results that may occur based on results seen in comparable markets. Market and Financia! Analysis of a Proposed New Minor League Ballpark iv Executive Summary Exhibit ES-5 Ticker-s/rem $59~500 $767,500 $942,500 premium seating I J 6,800 244,600 411,400 Food and beverage 30%800 4 ] 5,500 521,300 Advertising J 50,000 250,000 350,000 Merchandise 2 I,O00 28,000 35,000 Total Operatin£ Revenue $ I,190,100 $ 1,705,600 $2,260,200 Operating £xpenses Stadium Expenses 350,000 400,000 450,000 As shown, it is estimated that the proposed franchise playing in a new ballpark in Dubuque could result in an annual net loss of approximately $160,000 under the low scenario or positive cash flows ranging from approximately $156,000 to $560,000 under the base and high scenarios, respectively. It is important to note that these revenues and expenses represent total stadium and team related expenses and do not ancoent for any allocations of revenues between the team and the stadium owner, debt service, capital reserve funding or other such items. This presentation is designed to assist project representatives in assessing the financial impacts of the proposed facility, and cannot be considered to be a presentation of expected future results. Accordingly, the analysis of potential financial operating results may not be useful for other purposes. The assumptions disclosed herein are not all inclusive, but are those deemed to be significant. Because events and cimumstances frequently do not occur as expected, there will be differences between estimated and actual results, and these differences may be material. In addition to the above financial analysis, an economic impact analysis was completed to estimate the economic and fiscal impacts the franchise and ballpark could have on the Dubuque area. The annual operations of a minor league baseball team and new ballpark can provide significant benefits to an area. Typically, and for the purposes of this report, quantifiable effects are characterized in terms of economic impacts and fiscal impacts. Economic impacts are conveyed through measures of direct spending, total output, personal earnings, and employment. Fiscal impacts denote changes in tax revenues. Exhibit ES-6 summarizes the economic and fiscal impacts that could be generated by the presence of a Class A franchise and ballpark in Dubuque. Exhibit ES-6 Summary of Economic and Fiscal Impacts Low Base High Direct Spending $3.917,000 :$4,955,000 $6,033,000 To~.l Output $5,871,000 $7,418,000 $9,022,000 Personal Earnings $2,259,000 $2,859,000 $3,482,000 Employment 140 170 210 Total State Tax Revenues $202,800 $248,500 $294,700 Total Local Tax Revenues $128,200 $150,700 $173,500 Market and Financial Analysis of a Proposed New Minor League Ballpark v Executive Summary Funding Analysis Based on the analyses conducted during this study, several specific funding sources have been identified as potentially viable for the construction of a new ballpark in downtown Dubuque. The following table presents a summary of the estimated funding capacities of each of these funding sources. Exhibit ES-7 Funding Summary Annual Interest Source Revenue Rate General Obligal:ion Debt - City (1) $1,658,000 General Obligation Debt - County (I) $2,830,000 Capital Improvement Levy (2) $1, I 19,150 Hemorial Building Levy (3) $1,343,000 Admissions Tax/Surcharge (4) $140,000 Parking Revenue (5) $93,000 Naming Rights ~6) $200,000 Funding Capaclt¥ 1.0x Coverage 1.5x Coverage 2.0x Coverage 6.00% $19,017,000 $12,678,000 $9,509,000 6.00% $32,460,000 $21,640,000 $16,230,000 6.00% $ [ ~837,000 $8,558,000 $6,418,000 6.00% $15,404,000 $10,269,000 $7,702,000 6.00% $ 1,606,000 $1,071,000 $803,000 6.00% $ 1,067,000 $711,000 $533,000 6.00% $1,472,000 $981,000 $736,000 As shown, several potential funding sources could be utilized alone or in conjunction with other sources to support the construction of the proposed ballpark. The intent of this analysis has been to provide a summary of the potential sources that could be available for ballpark construction. The decision to move forward with the project and determine the mixture of funding sources will be made by the leaders of the City of Dubuque. Market and Financial Analysis ora Proposed New Minor League Ballpark vi 1.0 Introduction 1.0 Introduction The City of Dubuque is considering the development of a new ballpark, enabling the market to potentially attract a franchise in the Class A Midwest League. As such, Dubuque Initiatives, Inc. ("DII") retained CSL International to conduct a market, financial and economic impact analysis related to the viability of professional baseball in Dubuque. The scope of the analyses completed by CSL include the following key tasks: · Assembled and analyzed information related to the local and regional market, including information on the local economy and other entertainment options; · Assembled and analyzed the market demographics and facility characteristics of several comparable minor league ballparks throughout the country; · Analyzed the potential event mix and size of the proposed minor league ballpark utilizing a number of research methods, including penetration ratios, interviews with event organizers, the results of the aforementioned analyses, and various other techniques; · Developed recommendations regarding facility size, premium seating, and other building program related issues; · Developed a computer based financial model based on the estimated levels of utilization and patron spending derived from the market analysis, comparable facility analysis, and other information pertaining to the Dubuque area; · Assessed the potential economic and fiscal impacts that could be generated from a new minor league baseball stadifim in Dubuque; and, · Analyzed potential methods ofballpark construction funding. The following report focuses on the study methods and results of the aforementioned research and analyses, and is presented to DII in order to assist in making informed decisions with regard to the potential development of a new minor league baseball stadium. Market and Financial Analysis of a Proposed New Minor League Ballpark I 2.0 Minor League Baseball Overview 2.0 Minor League Baseball Overview Baseball has been apart of America's history since the late 1800's, with minor league baseball playing a significant role in baseball's history. Professional baseball teams have been placed in various classifications in various systems since 1890, and in 1901, with the formation of the National Association of Professiunal Baseball Leagues (NAPBL), the current classification system was started. The association has since changed its name to Minor League Baseball (MLB). Over the years them have been many variations in the classification system; the following is a brief summary of the current minor league classification system: · AAA - currently the highest classification of the minor leagues. It was established in 1945, and currently consists of throe leagues (International, Pacific Coast, and Mexican), · AA - this classification was established originally in 1912, and is currently the second tier of minor leagues. There are currently three leagues classified as AA (Eastern, Southern, and Texas), · A - in 1902, Class A was the highest classification for minor league teams. Under the present structure, Class A teams are the third tier, and consists of five regular season leagues (California, Carolina, Florida State, Midwest, and South Atlantic) as well as two short-season leagues (N.Y- Penn and Northwest), · Rookie - the rookie classification was established in 1963, and is currently the lowest classification of professional baseball, consisting of two leagues made up of first year players. · Independent - while all of the above classifications are comprised of teams that are affiliated with major league teams, there are also several independent leagues made of teams that have no major league affiliation, and are not members of MLB. There are currently over 175 teams playing in the 15 affiliated minor leagues. Total attendance at MLB games in 2002 exceeded 38 million, and attendance has grown over nine pemant since 1998. In addition, the independent leagues have also seen continued growth in the number of teams and attendance. Exhibit 2-1 presents the growth in average per game attendance levels among MLB and several independent league teams from I998 through 2002. As mentioned previously, it is expected that a new ballpark would enable Dubuque to attract a franchise in the Class A Midwest League. As such, the minor league ballpark analysis in this report will focus on the Class A level. 3,000 - 0 1998 1999 2000 2001 2002 Midwest League Overview The Midwest League originally formed as the Illinois State League in 1947, and has been known as the Midwest League since 1956. The League currently consists of 14 teams located in markets throughout the Upper Midwest. Each team plays a 140 game season beginffmg in April and ending in early September, with three rounds of ptayoiTs held in September. Exhibit 2-2 presents an overview of currant Midwest League teams, markets and facilities. Market and Financial Analysis of a Proposed New Minor League Ballpark 2 2.0 Minor League Baseball Overview As shown, the average Midwest League market has a population of approximately 404,000, ranging from a low of 41,900 in Burlington, Iowa to a high of 1.1 million in Comstock Park, Michigan, which is located in the Grand Rapids metropolitan area. Several new stadiums have been developed by Midwest League markets and franchises in recent years, as eight of the league's 14 teams play in ballparks built since 1990. In addition, John O'Donnell Stadium will be extensively renovated prior to the 2004 season, equipping the stadium with many amenities typically found at new ballparks. Seating capacity among Midwest League ballparks ranges from a low of 3,000 at Alliant Energy Field in Clinton to a high of 10,700 at Fifth Third Ballpark in Comstock Park. The average stadium capacity is approximately 6,100. The Dayton Dragons led the League in attendance in 2003, drawing an average of 8,434 fans per game. League wide per-game attendance averaged approximately 3,700 in 2003. Market and Financial Analysis of a Proposed New Minor League Ballpark 3 3.0 Local and Regional Market Analysis 3.0 Local and Regional Market Analysis ~ae intent of this section is to provide background information on Dubuque's economy, employment, end entertainment facility options. It is important to gain en understanding of these characteristics to provide insight as to the support that could be expected from the Dubuque community for the development ora new minor league baseball stadium. Ttfis analysis includes the following sections: Dubuque Market Overview · Existing Entertainment Options in Dubuque Dubuque Market Overview The City of Dubuque is the seat of Dubuque County, and is located on the Mississippi River at the intersection of the Iowa, Wisconsin and Illinois borders. The City is located within 100 miles of Cedar Rapids, Davenport and Iowa City, Iowa, as well as Madison, Wisconsin. U.S. Highway 61 serves as the major north/south roadway through the Dubuque area, while U.S. Highway 20 is the major east/west artery. Dubuque County has a population of approximately 88,600, of which approximately 57,300 live in the City of Duhnque. The region's climate features cold winters with average daily highs in the 20's, and pleasant summers with average high temperatures near 80 degrees. Total annual precipitation averages approximately 38 inches. Menufacturing plays a large role in Dubuque's economy, as four of the top 12' employers in the area including John Deare Dubuque Works, the area's number one employer, are involved in durable goods menufacturing. The second largest employer in the area is the Dubuque Community School District, with 1,600 employees in 18 schools. Health care also plays an important role in the Dubuque economy, as four of the top 12 area employers are involved in the industry. As of June 2003, the Dubuque region had en unemployment rate of 3.3 percent, well below the national rate of 6.5 percent. The area's cost &living index is approximately 105, indicating the Dubuque area is a slightly mom expensive place in which to live, compared to the overall national average. Entertainment Options in Dubuque The Dubuque area offers a diverse selection of entertainment, recreation and leisure amenities. Numerous restaurants, nightclubs and other entertainment options are offered in the downtown area end throughout the community. As Iowa's oldest city, Dubuque has meny historic buildings and churches. The Mississippi River provides a variety of family-oriented entertainment options. Popular activities include fishing, boating, water sports, biking, picnicking, and other associated activities. The River also offers entertainment in the form of riverboats, which offer cruises along the Mississippi River, providing 24-hour gaming, live entertainment, meals and other activities. Dubuque is located approximately 20 miles east of Dyersville, IA, home of the Field of Dreams, popularized by the motion picture. The America's River Project, set for completion in late 2003, will combine business and infruslructm'e development with a Mississippi River Museum, a large convention/confarence center, a combination hotel/water park end the Mississippi Riverwalk. Market and Financial Analysis of a Proposed New Minor League Ballpark 4 3.0 Local and Regional Market Analysis The Dubuque area also offers sporting event entertainment options, consisting prinmrily of intercollegiate athletics. Lores College, Clarke College and the University of Dubuque each field a number of men's and women's sports teams at the NCAA Division tlt level. In addition, Emus Bible College has men's and women's basketball teams in the National Cl'wlstian College Athletic Association. Along with these collegiate sports, Dubuque is the home of the Thunderbirds, a franchise in the Minnesota Junior Hockey League (MJIIL). The remainder of this section provides information on entertainment facilities in the Dubuque area. Five Fla~s Center The Five Flags Center opened in 1979 and currently serves as the primary indoor sports, entertainment and convention venue in the Dubuque area. The Center is owned by the city of Dubuque and features a 5,200-seat arena, 25,000 square feet of multipurpose flat floor space, 4,600 square feet of meeting space and a 717-seat performance theater. The Center annually hosts a variety of sports events, concerts, family shows, conventions, meetings, and a variety of other events. Exhibit 3-I summarizes the events hosted at the Five Flags Center for fiscal years 2000 and 2001. As shown in the Exhibit, the Center typically hosts 170 to 180 events, with banquets, meetings and parties accounting for the largest source of utilization. In terms of spectator events, the Center annually hosts approximately 30 sporting events along with approximately 20 concerts and other stage shows. Currently, the Center's arena hosts one sports t~nant, the MJHL Dubuque Thunderbirds. The Exhibit 3- I Five Flags Center Event Levels FY2000 FY 2001 Banquets / Meetings I Parties 63 55 O:her 26 40 Spordng Events 28 3 I Public Skating 19 23 Concerto / Stage Shows 21 22 Public Shows 7 6 ConvemSons / Tradeshows 7 2 Total I ? I 179 team plays a 22 game home schedule from late September through early March. Single game ticket prices are $6.00 for adults or $4.00 for children age 12 and under. Season tickets for adults and children are $150 and $100, mspeetively. The Thunderbirds sold approximately 600 season tickets last As previously noted, a new convention facility, the Grand River Center, is currently being constructed in Dubuque as part of the America's River project. Following the completion of the new facility, the Five Flags Center will no longer be the primary convention facility in the market, which could impact its event mix and utilization rates. America's River Proieet The America's River Project is a $188 million development that will add a variety of educational, entertainment and meeting facilities to the Dubuque area. Included in the project are the outdoor Mississippi Riverwalk, the Grand River Center meeting facility, the National Mississippi River Museum and Aquarium, and the Grand Harbor Resort and Waterpark. The Project is anticipated to be completed by the end of 2003, and will likely serve to draw tourism and meeting and convention business to Dubuque, while also offering new entertainment options to local residents. Market and Financial Analysis ora Proposed New Minor League Ballpark 5 3.0 Local and Regional Market Analysis Grand Opera House The 640-seat Grand Opera House is located in downtown Dubuque and originally opened in 1890. The theater features a variety of well-known musicals, plays and special events, and attracts more than 70,000 visitors annually. The theater is currently undergoing extensive renovation and restoration. Summary Within this section, an overview of the Dubuque area economy and entertainment options has been provided. The Dubuque market offers a variety of entertainment options for residents to enjoy, including performing arts, museums and athletic events including junior league hockey as well as high school and collegiate athletic events. While the Five Flags Centar provides the area with a major indoor event venue, the market currently lacks a major outdoor sports and entertainment facility. However, the various arts, entertainment, and sports options discussed in this section could compete with a new ballpark and minor league baseball team for the entertainment spending of area residents and tourists. Market and Financial Analysis of a Proposed New Minor League Ballpark 6 4.0 Demographic and Socioeconomic Analysis 4.0 Demographic and Socioeconomic Analysis An important component in assessing the potential success of a new minor league baseball stadium in Dabuque is the dem%oraphic and socioeconomic profile of the local market. The strength of a market in terms of its ability to draw events and spectators is measured in part by the size of the market area population and its spending characteristics. To gain an understanding of the relative strength of the Dubuque market area, it is useful to compare various demographic and socioeconomic characteristics among other communities supporting similar-sized facilities. For purposes of this analysis, the market demographics of Dubuque and several markets with comparable facilities have been evaluated utilizing the Metropolitan Statistical Areas (MSA's) of each market, along with 25 and 50-mile rings around each market. Based on industry trends, these geographical areas can be expected to comprise the proposed team's primary and secondary market base. The comparable markets were chosen based on the presence of a Class A minor league ballpark built since 1995. Only markets with MSA populations under 500,000 were included. The demographic variables utilized for the comparative facility market analysis include population, household population, age stratification, median household income, percentage of high income households, retail sales per household, and corporate inventory. All rankings for each of the demographic characteristics discussed herein include the Dubuque market. Population The level of population from which a ballpark will draw can impact the events and attendance attracted to the facility. A strong population base can be important in ensuring that games and events are consistently well attended, particularly for a baseball franchise, which plays a relatively high number of home games each year. Exhibit 4-1 compares Dubuque's population characteristics to those of the comparable ballpark markets. Exhibit 4- I Population - Comparable Facility Markets Area Dubuque Rank 1~lSA 88,600 12of Ig 2S-Mile Ring 146,207 13 of 13 50-Flile Ring 337,584 13 of 13 351,850 489,500 87,000 397.844 73 D560 190,945 765,689 1,875,170 362,994 As shown in the exhibit, the Dubuque MSA has a population of approximately 88,600, while the median MSA population among comparable markets is approximately 351,900. The population within 25 and 50 miles of Dubuque is approximately 146,200 and 337,600, respectively, compared to a median of 397,800 within 25 miles and 765,700 within 50 miles of the comparable markets. Dubuque's MSA population ranks as the second smallest among the markets analyzed, and is the smallest of the 13 markets when comparing 25 and 50-mile populations. Market and Financial Analysis of a Proposed New Minor League Ballpark 7 4.0 Demographic and Socioeconomic Analysis Households While an area's population provides an estimate of total potential usem of a facility, the number of households typically represents an estimate of the number of purchasing units in a market. Exhibit 4-2 presents the estimated number of households in the Dubuque and comparable facility markets. Exhibit 4-2 Households - Comparable Facility Markets MSA 2S-Mile Ring S0-Mile Ring Dubuque Rank 33,800 12ofl3 55,160 13ofl3 129,759 13 of 13 Median Hi~[h Low 13~900 196,600 33,200 145,831 208,425 78,953 331,033 692,529 [56,177 The median number of households in the comparable market MSA's analyzed approximates 137,900, compared to the Dubuque MSA's household inventory of approximately 33,800. There are approximately 55,200 households within 25 miles of Dubuque and 129,800 within 50 miles, while the median household inventories among comparable markets are 145,800 within 25 miles and 331,000 within 50 miles. Similar to population, Dubuque ranks 12~h among the 13 markets analyzed in terms of MSA household inventory, and 13th in both 25 and 50-mile inventories. Age Stratification The age of a specific populace can impact the ovemil drawing power for spectator events. In general the 18 to 34 age group is widely regarded in the spectator events industry as the group that is most likely to attend spectator events such as minor league baseball. This age group also exhibits higher spending patterns than other age groups. A lower than average population concentration within these groups will not necessarily adversely affect the number of events hosted in the given market, but could potentially affect the type of programming that can work to maximize event potential at spectator facilities in the market. Exhibit 4-3 presents the age distribution for the Dubuque and comparable markets, ranked by the percentage of population in the 18 to 34 age group. It should be noted that the 25 and 50-mile ring analyses compare the 15 to 34 age group rather than the 18 to 34 range. Exhibit 4-3 Percent of Population Age 18-34 - Comparable Facility Iqarkets Area ] Dubuque Rank MSA I 22.0% I 0 of 13 2S-Mile Ring 27.7% 8 of [ 3 50-Mile Ring 25.6% 12 of 13 Hedian High Low 23.6% 29.5% 20.2% 28.4% 33.4% 25.6% 28.0% 30.2% 25.0% Market and Financial Analysis of a Proposed New Minor League Ballpark 8 4.0 Demographic and Socioeconomic Analysis The median percent of the population aged 18 to 34 in the comparable MSA's analyzed approximates 23.6 percent. Dubuque ranks 10~h among the 13 markets analyzed with 22.0 percent of its population between the ages of 18 and 34. Approximately 27.7 percent of the population within 25 miles of Dubuque is between the ages of 15 and 34, while 25.6 percent of the population within 50 miles falls within that range. The median percentage of the population between 15 and 34 within 25 miles of the comparable facility markets is approximately 28.4 percent, compared to a median of 28.0 pement within 50 miles. Dubuque ranks 8t~ and 12t~ among the 13 markets analyzed in terms of percentage of the population between 15 and 34 within 25 and 50 miles, respectively. Effective Buying Income Effective buying income (EBI), also known as disposable or after-tax income, is defined as personal income less personal tax and certain non-tax payments. This statistical figure is important when estimating consumers' propensity to spend personal income on entertairanent. Exhibit 44 presents the median EBI of households in comparable facility markets. Exhibit 4-4 Median Household EBI - Comparable Facility Plarkets IqS& gS~Flile Ring 50-Iqile Ring Dubuque $35,700 43,574 41,796 Rank Median High 8 of 13 $36,000 $42,40~ 4of13 42,741 49,175 8 of 13 42,670 56,349 Low $33,800 35,631 32,023 The median household EBI for households th the comparable market MSA's analyzed is approximately $36,000, compared to approximately $42,700 within 25 and 50 miles. The Dubuque MSA's median household EBI of $35,700 ranks 8th among the markets analyzed. Dubuque ranks 4th in terms of median household EBI within 25 miles and 8~b when comparing 50-mile rings. Exhibit 4-5 summarizes the percentage of households with an annual EBI of $50,000 or more in the comparable facility markets analyzed. A larger percentage of households in a market with an income over $50,000 can indicate a relatively strong ability to purchase tickets and prenimm seating in a new facility. Because household EBI stratification information was not available for 25 and 50-mile rings, only MSA's have been utilized in this comparison. Exhibit 4-5 Percent of Households with $50,000+ EBI - Comparable Facility Markets Area IqSA Dubuque Rank 28.8% 10ofl3 Median High Low g0~% 39~% 2&2% As shown, approximately 28.8 percent of the Dubuque market's households have an annual EBI of $50,000 or more. This pementage is lower than the median pomentage of high income households among the markets analyzed, ranking I 0~ among the 13 comparable markets. Market and Financial Analysis of a Proposed New Minor League Ballpark 9 4.0 Demographic and Socioeconomic Analysis Retail Sales Retail sales can also suggest the strength of an area's economy. Exhibit 4-6 presents a surmnary of retail sales per household for the comparable ballpark MSA's. Exhibit 4-6 Annual Retail Sales Per Household - Comparable Facility Markets MSA Dubuque Rank Median High Low $38,000 4 of 13 $35,000 $45,100 $26,200 As shown, the Dubuque market's annual retail sales of $38,000 per household rank 4th among the comparable facility markets analyzed. This could indicate that Dubuque-area residents have relatively high levels of disposable income, which could have a positive effect their propensity to spend money on leisure activities such as minor league baseball. Corporate Inventory per Market A comparison of the corporate base of each comparable facility market has been developed based on data supplied by Dun & Bradstreet. Dun & Bradstreet's database of corporations is updated on an ongoing basis through a variety of techniques, including approximately 17 million interviews conducted annually and the review of local and federal governmental records. The corporate inventory in a market can serve as an indicator of potential support for a new facility through premium seating and sponsorship sales. Exhibit 4-7 summarizes the corporate inventories of the comparable ballpark markets analyzed. The corporate inventory is defined as the number of corporate headquarters with at least 25 employees and annual revenues exceeding $5 million and the number of corporate branches with at least 25 employees. Exhibit Corporate Inventory - Comparable Facility Markets Area MSA Dubuque Rank 193 II ofl3 Median High Low 611 950 144 Dubuque's corporate inventory of 193 headquarters and branches ranks 11~ among the comparable facility markets analyzed. Market and Financial Analysis of a Proposed New Minor League Ballpark I 0 4.0 Demographic and Socioeconomic Analysis Exhibit 4-8 summarizes the comparative statistics of Dubuque and the comparable facility markets reviewed for purposes of this analysis. Exhibit 4-8 As shown, the Dubuque market ranks well below the comparable market medians in population-related statistics such as total market population, household inventory and corporate inventory. However, Dubuque ranks relatively high in income and spending related variables such as median household EBI and retail sales. This could indicate that while the Dubuque market is smaller than most Class A markets supporting new stadiums, its population could demonstrate higher spending characteristics in proportion to its population than other Class A markets. While the Dubuque market ranks below the median in the population characteristics discussed herein, it is important to note that the demographics of a market are only one of many factors used to determine the viability ora franchise or facility within that market. It is also important to note that markets with similar demographic characteristics are currently supporting new minor league ballparks, and that none of these factors necessarily precludes the Dubuque market from successfully supporting a new ballpark and franchise. However, as a market with a relatively low population, one of the largest challenges may be maintaining an attendance level that will be sufficient to support a minor league ballpark. This may require creative marketing efforts and active community participation. Market and Financial Analysis of a Proposed New Minor League Ballpark I I 5.0 Competitive Facility Analysis 5.0 Competitive Facility Analysis A new minor league ballpark would likely have minimal direct competition from facilities outside of the Dubuque market as a majority of the events held at the proposed facility would be local. However, the new stadium and team may face competition for fans from outlying areas from minor league baseball franchises located in regional cities such as Cedar Rapids, Clinton, Quad Cities, Madison, Rockford and Beloit, all of which are located within 100 miles of Dubuque. The proposed ballpark may face competition for local high school, amateur, and college baseball utilization from local collegiate and high school baseball facilities. While a professional facility will likely offer amenities not found at other area fields, organizations seeking an inexpensive field on which to play may be more likely to rent a smaller collegiate or high school facility. However, the novelty of playing in a modem professional stadium could help the market attract tournament and other amateur baseball games, with the new ballpark as the centerpiece. In addition to these soumes of competition, athletic and spectator events held at the Five Flags Center end various smaller performing arts facilities in the region may compete with the new ballpark and team in capturing the entertainment spending dollars of area residents. Market and Financial Analysis of a Proposed New Minor League Ballpark 12 6.0 Comparable Facility Analysis 6.0 Comparable Facility Analysis In this chapter, the physical and operational characteristics of 12 Class A minor league ballparks built since 1995 were analyzed. The facilities were chosen because their market and facility characteristics are similar to those ora potential new ballpark in Dubuque. Data utilized in this section was accumulated from CSL's existing database, information received from various publications, and interviews with facility management. This comparative aradysis was prepared to gain a programmatic perspective from which to evaluate the potential operational performance and event levels of the proposed Dubuque ballPark relative to similar Class A facilities. The review of comparable faeilitieg includes the following sections: · Physical/Operational Characteristics · Premium Seating Physical/Operational Characteristics Exhibit 6-1 presents tenant, location, year built, seating capacity, average attendance, average ticket prices, and league of the recently built ballparks reviewed as a part of this analysis. John O'Donnelt Stadium - Davenport, Iowa Originally built in I932, John O'Donnell Stadium will be extensively renovated prior to the 2004 season, bringing the facility up to the standards of modem ballparks and increasing total capacity from 5,200 to 6,500. The Stadium is home to the Quad City River Bandits of the Midwest League, as well as the majority of home baseball games of Augustana College and St. Ambrose University. The City of Davenport owns the facility, with the River Bandits responsible for stadium operations. While the ballpark has not incorporated any premium seating in the past, the renovations will add 20 suites and 300 club seats. Each suite will have 12 fixed seats and will be available on three, four or five-year leases with an annual price of $20,000, which will include 12 tickets to each River Bandits home game. Market and Financial Analysis of a Proposed New Minor League Ballpark 13 6.0 Comparable Facility Analysis Club seats will also be sold on three to five-year contracts with an annual price of $795. All club seat holders and suite guests will have access to a club lounge located within the stadium. In addition to River Bandits and local college games, the Stadium hosts a variety of events, including occasional concerts, sev~raI youth baseball tournaments and other miscellaneous events. River Bandits management indicated that they anticipate hosting additional, higher quality events such as higher impact concerts and professional soccer exhibitions as a result of the improvements being made to the stadium. In addition, two banquet rooms with capacities of 75 and 200, respectively, will add variety to the types of events the team can host at the ballpark. State Mutual Stadium- Rome, Geomia State Mutual Stadium opened in 2003 and serves as the home of the Rome Braves, a South Atlantic League team that relocated from Macon prior to the 2003 season. The 5,000-seat ballpark was built at a cost of $15 million and is owned by the City of Rome and Floyd County and operated by the Braves. The ballpark incorporates premium seating in the form of 14 private suites and 1,500 club seats. Of the I4 suites, 13 are leased on five year con~'acts with an average annual price of $20,000, which includes 14 tickets to all Braves home games. Club seats are sold on three-year contracts at a cost of $650 per year end include access to a private in-stadium restaurant on game days. Because the stadium opened just prior to the 2003 season, the number of non-Braves events held at the ballpark has been limited. However, team management indicated that they plan to pursue concerts and other outside events in future years. There is a $2.00 per car parking charge for Braves games. Veterans Memorial Stadium- Cedar Rapids, Iowa The 5,300-seat Veterans Memorial Stadium opened in 2002 and serves as the home of the Cedar Rapids Kernels of the Midwest League. The city-owned ballpark was built at a cost of $13.7 million with funding derived from a variety of soumes including a state grant, a Hail Perrine Foundation grant, team contributions, and city-issued bonds backed by a 30-cent Veterans Memorial Levy and long term team rental payments. The Stadium incorporates 12 suites, nine of which are leased on three-year contracts with an annual price of $20,000. Two suites are available for single game mntats at a cost of $500. The remaining suite is reserved for the team owner. Ail suite purchases include 20 game tickets. Annual suite lease holders also receive three parking passes and have year-round access to their suite. Non-tenant events held at the ballpark last year included two concerts, 10 amateur baseball games, and 10 high school baseball games. Rental fees vary on an event-by-event basis. There is no charge for parking at Kemals games. Market and Financial Analysis ora Proposed New Minor League Ballpark 14 6.0 Comparable Facility Analysis O'Brien Field - Peoria, Illinois O'Brien Field opened 2002 and has a total grandstand seating capacity of 6,500 plus a 1,000-person lawn seating area, for a total capacity of 7,500. Located in downtown Peoria, the facility's anchor tenant is the Peoria Chiefs of the Midwest League. Bmdhiy University's baseball team also plays its home games at the ballpark. Tl~e stadium's total construction cost of $18 million was entirely privately funded. However, the City of Peoria paid for $7 million in infi.astrucmre improvements. The facility is privately owned and operated and incorporates 20 private suites, 18 of which are sold on throe-year contracts at a cost of $20,000 per year. The remaining two suites are sold on a per-game basis at a price of $500. Suite prices include 12 tickets. In addition to 70 Chiefs games and 17 Bradley University baseball games, the facility annually hosts two concerts, five amateur and five high school baseball games, and three miscellaneous events. No rental rote structure is in place, with rent vatting from event to event. A parking charge of $4.00 per car is charged at Chiefs games. Applebee's Park- Lexington, KY The home of the South Atlantic League Lexington Legends, Applebee's Park opened in 2001. The Park has a capacity of 6,561, including 500 bleacher seats and 1,000 grass berm seats. The facility was built at a cost of $17 million, including land and soft cost% and was 100 percent privately financed. The ballpark incorporates 26 suites, all of which are currently leased on three-year contracts with annual prices ranging fi.om $25,000 to $35,000, depending on location. The price includes 22 tickets to all home Legends games and entitles the suiteholder to use the suite year-round. Suite amenities include climate conh-ol, wet bar, private restrooms, and optional catering. In addition to suites, the Park offers 796 club seats priced at $923 to $1,065 per season. Club seat holders receive In-seat walt service and Maker's Mark Club membership. Facility management aggressively pursues non-tenant events to generate additional stadium revenue. In a typical year, the Park has hosted six concerts, 10 amateur baseball games, 20 high school baseball games, and up to 50 other events, including festivals, campouts, car shows, and a wide variety of other events. While rental rates for coneer[s vary on a case-by-case basis, the rote for field use is $2,500 for up to three hours or $3,500 for three to eight hours. A $3.00 parking charge is assessed at the ballpark. Coastal Federal Field - Myrtle Beach, South Carolina Constructed in 1999, Coastal Federal Field has a seating capacity of approximately 6,000, including 4,324 fixed seats. The facility is home to the Class A Myrtle Beach Pelicans of the Carolina League and is owned by the City of Myrtle Beach and operated by the team. The ballpark incorpomtas nine private suites. Six suites are leased on an annual basis for $25,000 per year or a three-year contract at a cost of $20,000 per year. The suite cost includes 16 tickets, four parking Market and Financial Analysis of a Proposed New Minor League l~allpark 15 6.0 Comparable Facility Analysis passes, and amenities such as air conditioning, cable television, wet bar, and available catering. The remaining three suites are sold on a single game basis for $340. ' In addition to Pelicans home games, the facility hosts approximately 36 other events annually, including two high school and two college baseball games, 16 other amateur baseball games, and 16 other events such as charity softball games, campouts, company picnics, and other such events. Rental rotes vary depending on which portions of the stadium are utilized and whether the renting group is a for-profit or non-profit group. The daily rental rate for the entire stadium ranges from $800 for government and school use to $4,000 for commercial use. John Thurman Field - Modesto, California John Thurman Field was extensively renovated in 1997 to bring it up to California League code, allowing the ballpark to become the home of the Modesto A's franchise. The $5.1 million renovation of the city-owned facility was fimded through city- issued revenue bonds, an allocation from the city's capital improvement fund, and a contribution from team ownership. The facility incorporates two private suites. The Sacramento Bee newspaper was given ownership of one suite in remm for the Bee's contribution to a press box level renovation. The second suite is leased for 35 games a year to a local car dealership. The team leases the suite on a single- game basis for the remaining 35 home games. The price for a single game suite rental is $250, which includes 12 tickets, snacks and beverages, promotional items, and game programs. While the ballpark does not incorporate any club seats, all season and weekend ticket package holders receive MVP Club membership, with benefits such as memhandise discounts, invitations to special team events, and other such baneftts. In addition to A's games, the facility annually hosts approximately four concerts and five other events. The rental rote for concerts is determined on a case-by-case basis, and can vary depending on whether the concert is booked through the city or the team. The city charges a rental rate of $1,000 for non-profit baseball games, but few if any local organizations have been willing to pay that rote, resulting in very few such rentals since the facility opened. The parking rate at lots surrounding the stadium is $3.00 for A's games. Oldsmobile Park - Lansing, Michigan Oldsmobile Park was constructed in 1996 in downtown Lansing and has a seating capacity of approximately 10,000 including %000 19-andstand seats and a grass berm area with a capacity of 1,000. The facility's anchor tenant is the Class A Lansing Luguuts of the Midwest League. The facility incorporates 26 private suites, of which four are leased on a per game basis for $500 per game and two are retained by the City and team. The remaining 20 are suites leased for a three-year term and are priced at $16,500 per year. In addition to suites, the facility incorporates 900 executive club seats priced at $630 annually. The Park has a 40-person capacity bar and ~ill that is accessible only by club seat holders. In addition to the Lugnuts' home games, the facility hosts approximately 40 other events annually, including four Michigan State University baseball games, three high school baseball games, five concerts, and 28 other events such es winter ice-skating events, a Park ARer Dark movie series, and an annual Halloween event. Facility management indicated that the rental rates for these outside events Market and Financial Analysis of a Proposed New Minor League Ballpark 16 6.0 Comparable Facility Analysis are $2,000 per day for the use of the field and $1,000 for the use of the concourse. The facility is owned by the City of Lansing and opemtod by the team for Luguuts' games only. The City is responsible for all other events held at the park. Parking is shared with the nearby Lansing Center convention facility, with parking rates ranging from $3.00 to $3.50. Salem Memorial Baseball Stadium - Salem, Virginia Salem Memorial Baseball Stadium opened in 1995 and serves as the home of the Carolina League Salem Avalanche. The 6,300-seat facility is owned by the City of Salem and operated by the Avalanche. The $11.0 million Stadium was funded through City-issued general obligation bonds and City capital reserve funds. Premium seating offerings at the Stadium include 10 skyboxas and two spectator decks. The skyboxes are leased on an annual basis with prices of $7,000 for an eight-seat box or $I0,000 for a 12-seat box. Suite amenities include parking passes, wait service, refrigerator, wet bar, and the option of pre-ordering food. The open- air spectator decks each include 24 seats and are sold at a price of $10.00 per seat per event. In addition to Avalanche games, the Stadium hosts approximately 20 events par year, including the six-day Atlantic Coast Conference baseball tournament and other assorted collegiate, high school, and amateur games. Field rental rates range from $150 for Legion and high school games to $700 for large college games. The Stadium shares a common parking lot with an adjacent football stadium and civic center. There is no charge for parking at Avalanche games. Fox Cities Stadium - Appleton, Wisconsion The Wisconsin Timber Rattlers of the Midwest League play their home games in Fox Cities Stadium, a 5,500-seat facility that opened in 1995. The $5 million Stadium was privately funded by two investors who formed the Fox Cities Amateur Sports Authority to operate the facility. The facility includes three suites. One suite is leased on a three-year basis at a cost of $13,300. The team indicated that because the suitaholder is also a team sponsor, a discounted rate was given. A second suite is shared by two companies, each of which pay $8,750 for use of the suite for half of the Timber Rattler's home games. The third suite is sold on a single-game basis at a price of $250 per game. Suite purchases include 10 tickets and in-suite wait service. The facility hosts the three-day Wisconsin Interscholastic Athletic Association baseball tournament and the six-day NCAA Division Ili World Series each year. In total, the ballpark hosts approximately I3 days of non-tenant events per year including one concert, three days of high school baseball games, seven days of collegiate games and practices, and two other events. The rental rote for major events such as concerts is $10,000 plus $1.00 per ticket. A $3.00 parking charge is assessed at Timber Rattler games. Market and Financial Analysis of a Proposed New Minor League Ballpark 17 6.0 Comparable Facility Analysis Lake Olmstead Stadium - Augusta, Georgia Lake Olmstead Stadium opened in 1995 and has a seating capacity of 4,330. The facility is home to the Class A Augusta G-reenjackets of the South Atlantic League and is located four miles from downtown Augusta. The facility is owned by the Richmond Stadium Authority and operated by the Greenjackets. It does not offer any premium seating. In addition to G-reenjacke~s home games, Lake Olmstead Stadium hosts approximately 15 other events on an annual basis, including four concerts, four high school baseball games, two college baseball games, 2 other amateur baseball games, and three other events. Rental rates for outside events are negotiated case by case, and are dependent on the type of evant. There is no charge for parking at the ballpark. Perdue Stadium - Salisbury, Maryland The 6,500-sest home of the South Atlantic League Delmarva Shurebirds opened in 1995. The $10.0 million facility is owned by Wicomico County and operated by the Shorebirds. Premium seating options at Perdue Stadium include six suites. Four mites are leased on three to five-year contracts at an annual price of $20,000. Two suites are sold on a per-game basis at a price of $500 without food or $950 with food. All suite prices include 25 tickets and VIP parking passes. The facility has historically hosted 15 to 25 non-tenant events per year, including three concerts and several high school, collegiate, and amateur baseball games. In addition to these events, the Stadium's suite and restaurant area hosts approximately 150 banquets and other events per year. The facility's rental rotes vary depending on the event's requirements and whether the event is booked through the team or the county. There is no charge for parking at Shorebirds games. Premium Seating Key revenue generating vehicles in many minor league facilities, especially those built in recent years, include various premium seating offerings. Typically, premium seating in recently-built stadiums will consist of private suites and other upseale box or club seating areas. In order to increase the revenue potential geaemted from minor league ballparks, new or renovated facilities are incorporating premium seating offerings, which meet the increasing demand for these types of opportunities from both corporations and individuals within a particular marketplace. Following this trend, the majority of minor league baseball stadiums built since 1995 have included private suites as part of their building program. Exhibit 6-2 presents an overview of the inventory of annually leased private suites in each of the comparable ballparks reviewed. It should be noted that the averages shown in the exhibit exclude facilities that do not incorporate any suites. Market and Financial Analysis of a Proposed New Minor League Ballpark 18 6.0 Comparable Facility Analysis Exhibit 6-2 Annually-Leased private Suites in Comparable Ballparks Average: 13 Suites I0 IS 20 2S 30 As shown, the average suite inventory among the comparable facilities analyzed is approximately 12.8, excluding the two facilities with no suites. Suite inventories range from a Iow of zero at Lake Olmstead Stadium and John Thurman Field to a high of 26 at Applebee's Park. In addition to private suites, the growth in sports facility development has created a revenue-generating amenity referred to as club seating. Club seats are defined as seats that have some of the same amenities as private suites with the exception that they are located in the grandstands as with general seating. Club seats also differ from regular seats in that they are typically wider, padded with better upholstery, end provide more legroom. Traditional club seating is not often incorporated in Class A stadiums. However, four of die stadiums reviewed as part of this analysis incorporated an area of upscale seating that offered some of the same amenities as club seats, such as VIP parking, and individual theater-style seating in premier locations within the ballpark. A summary of the various premium seating options at comparable facilities is presented in Exhibit 6-3. Market and Financial Analysis of a Proposed New Minor League Ballpark 19 6.0 Comparable Facility Analysis As shown in the exhibit, annual suite prices ranged from a low of $7,600 at Salem Baseball Stadium to a high of $25,400 at Applebee's Park. As a more direct comparison, the annual suite cost relative to the number of seats was evaluated. When calculating the annual cost per suite seat, the prices range from a low of $800 per seat annually at Perdue Stadium to a high of $1,667 per seat annually at O'Brian Field and John O'Donnell Stadium. The comparable facility suites have an average annual price of $19,500. Just four of the Class A facilities analyzed incorporates any type of club seating. Summary Within this section, a review of physical and operational characteristics of several Class A minor league ballparks built since 1995 was performed. This information is helpful in identifying general trends associated with these types of facilities, and can be useful in subsequent facility and event program planning. The average stadium capacity among the ballparks analyzed approximates 6,100, with an average suite inventory of 13. The average suite price among the comparable facilities is $19,500. Four of the facilities analyzed incorporate club seating, with an average annual price of approximately $730. Market and Financial Analysis of a Proposed New Minor League Ballpark 20 7.0 Market Demand and Building Program Analysis 7.0 Market Demand and Building Program Analysis The purpose of this section is to estimate potential event levels and attendance at a new minor league ballpark in Dubuque, and to assist in planning the physical characteristics and amenities that should be incorporated into the building plans. The primary function of a new ballpark in Dubuque will be to host a minor league baseball team, likely in the Class A Midwest League. As such, the estimated building program design is based on the requirements of a Class A facility. To assess the ability of the proposed new ballpark in Dubuque to host other events, a summary of selected comparable facilities' event types and number of event dates were analyzed. Several methods were used in estimating the potential attendance for a Cla~s A team in Dubuque. This chapter has been divided into the following four primary sections: · Attendance Analysis · Other Event Potential ,, Ballpark Capacity Analysis · Preliminary Premium Seating Analysis Attendance Analysis In order to assess the potential attendance levels that a team playing at a new ballpark in Dubuque could achieve, various analyses related to attendance levels experienced at other Class A ballparks around the country have been conducted. Historical Class A Attendance Analysis Exhibit 7-1 summarizes average per-game attendance for franchises in Class A leagues from 1999 to 2003. For comparison purposes, in addition to the overall averages, a second average showing attendance at ballparks built since 1990 has been included. It should be noted that the Florida State League has been excluded from this analysis as facilities in this league are geared more towards spring training games and may not be considered comparable. Market and Financial Analysis of a Proposed New Minor League Ballpark 21 7.0 Market Demand and Building Program Analysis Exhibit 7-1 Class A Attendance Summary Avera~:e Attendance Per Giame League 2003 2002 2001 2000 1999 Midwest Overall Average 3,661 3,577 3,148 3,291 2,688 New Ballpark Average 4,706 4,701 4,780 5,012 4,309 Carolina Overall Average 2,876 2,959 3,0~4 2,972 3,088 New Ballpark Average 3,781 3,818 3,989 4,027 3,985 South Adandc Overall Average 2,998 2,683 2,727 2,2]2 2,213 New Ballpark Average 3,776 3,633 3,771 3,013 3,016 California Overall A~erage 2,305 2,334 2,148 2,269 2,421 New Ballpark Average 2,891 2,963 2,701 2,902 3,059 Class A Total Overall Average 3,080 2,922 2,880 2,776 2,650 New Ballpark Average 3,882 3,867 3,948 3,915 3,713 As shown in the exhibit, over the past five season, Class A franchises have drawn an average attendance of approximately 2,900 fans per game. The Midwest League has drawn approximately 3,300 fans per game over that time period, the highest attendance level among the four Class A league analyzed. The positive impact ora new ballpark on attendance levels has been significant in each of the four leagues. Franchises playing in new ballparks have drawn attendance levels approximately 35 pement higher than the ovemlI average. Market Penetration The purpose of this section is to utilize a market penetration analysis as an additional method to evaluate the potential average attendance levels ora Class A team playing in a new ballpark in Dubuque. A market penetration analysis is an important tool that compares relative attendance levels of teams to the market's population. Utilizing an average ratio of total attendance to populmion among other markets with relatively new Class A facilities is one method of developing estimates of the annual attendance of a franchise in Dubuque. The peneh'ation analysis was conducted using the MSA population for the comparable facility markets discussed in Section 6.0 of this report and the five-year average annual attendance experienced by each respective market's franchise. Exhibit 7-2 presents the results of the penetration analysis. It should be noted that Davenport has not been included in the penetration analysis, as the John O'Donnell renovation project has not yet been completed. Market and Financial Analysis of a Proposed New Minor League Ballpark 22 7.0 Market Demand and Building Program AnalYsis Exhibit 7-2 Penetration AnaJysls S-Year Ratio of lISA Average Attendance to Class]Market Population Attendance Population Salisbury, MD 87,000 3,975 4.57% Mymle Beach, SC 20~,300 3,268 1.58% Cedar Rapids, IA 194,300 2,706 1.39% Lansing~ MI 448,900 6,258 1,39% Lexington, KY 489,500 ' 6,0 [ 0 1.23% Peoria. IL 346, I O0 3,629 1.08% Appleton, WI 364,400 3,243 0.89% Augus:~ GA 486,800 2,169 0.45% Average - All Average - Under 400,000 310,500 3,700 1.69%I 218,400 3,400 2.18% 88,600 1,9001 88,600 Ese-Dubuque. All Est. Dubuque, Under 400,000 If a new franchise in Dubuque were able to achieve the average penetration ratio of the selected Class A teams playing in new ballparks in markets of similar population, the franchise's average attendance would approximate 1,500 per game. Because the higher population of relatively large markets tends to skew their penetration ratios downward, a second penetration was calculated based only on the seven markets with populations under 400,000. Based on these markets, a franchise in Dubuque could draw approximately 1,900 fans per game if it were able to achieve a similar penetration ratio. It is important m note that this estimate is derived solely from a comparative analysis of the attendance and population in each market. Further, while the market penetration analysis is useful in gaining an understanding of the ovemll status of comparable facilities in terms of attendance, it does have limitations if used by itself to evaluate potential event demand in a particular community as it assumes that team management is focusing all efforts on the marketing of each facility within the specified area. New Dubuque Ballpark Estiraated Attendance Based on the analyses performed herein, average attendance estimates for a Class A team playing in a new ballpark in Dubuque have been developed. A number of measures were considered to estimate the potential average attendance for a potential Dubuque franchise including overall five-year average attendance and new ballpark attendance at Class A ballparks and the average penetration ratio achieved by comparable markets. Exhibit 7-3 summarizes the key information used in estimating attendance at a new ballpark in Dubuque. Market and Financial Analysis of a Proposed New Minor League Ballpark 23 7.0 Market Demand and Building Program Analysis Exhibit 7.3 Attendance Estimate Summary Based on the analyses performed, it is estimated that a Class A franchise playing at a new ballpark in Dubuque could achieve average attendanae of approximately 2,000 fans per game. This average attendance would result in total attendance of approximately 140,000 over a 70 home game season. The remainder of this report will assume attendance of 2,000 per game as the "Base" scenario. In addition, a "Low" scenario assuming an average attendance of 1,500 and a "High" scenario assuming attendance of 2,500 per game have been developed to demonstrate the effect an increase or decrease in attendance from the Base scenario could have on the ballpark's viability. Other Event Potential In this section, quantified estimates of the potential marke~ for other events at the proposed ballpark are presented. The primary function of the proposed facility will be to host the home ganges of a new or relocated Midwest League team. Other events that typically occur in a minor league baseball stadium include amateur, high school, and collegiate baseball, concerts, and other miscellaneous events. Analyzing event utilization at comparable facilities can serve as a first step in evaluating the overall market demand for additional events at a new ballpark in Dubuque: While primary anchor tenants typically ganemte the most significant economic impact to an area and provide the ballpark's most regnlar event usage, additional use of the ballpark for other events is often a key part of the overall operations of minor league ballparks, creating an asset for the entire community. The types and number of events held at minor league ballparks can vary significantly depending on the facility's market focus and operating mission. Exhibit 74 presents a summary of the number and types of events held at the comparable ballparks discussed within this study. It should be noted that John O'Donnall Stadium and State Mutual Stadium have not been included in this analysis as neither facility has completed a fall year of operations. A4arket and Financial Analysis of a Proposed New Minor League Ballpark 24 7.0 Market Demand and Building Program Analysis fTotal Events 92 102 136 106 79 I ITot~ Non-tenantEvents 22 32 86 36 9 J Lake Olmstead Stadium Oldsmobile Salem Fox Cities Perdue Class A Type of Event Park Stadium Stadium Stadium Average Tenant ~aseball 70 70 70 70 70 70 Conce~s 5 0 [ 4 3 3 As shown in the exhibit, the ballparks analyzed averaged 100 total events, consisting of 70 home tenant ball games, with the remaining events consisting of concerts, amateur, high school and college sports, as well as other events. In addition to the discussion of event usage of comparable ballparks, potential users of the new ballpark were contacted and asked specific questions regarding the type and number of events they currently organize in the Dubuque area, opinions regarding the physical and operational characteristics of area facilities, and their interest in hosting futum events at the proposed ballpark. A smrmaary of the comments obtained from these interviews is presented below: Local colleges - the Dubuque market is home to three collegiate baseball programs that could potentially utilize the ballpark for home games or tournament play. Based on discussions with representatives from the University of Dubuque, Clarke College and Loras College, it is estimated that the ballpark could host approximately 20 ballgames per year, consisting of both regular season games as well as tournament games. Local high schools - based on discussions with local high school athletic directors, it is assumed that a new ballpark in downtown Dubuque could potentially host a variety of high school baseball games throughout the year. As each of the local high schools has a home field on or near their campus, usage of the new ballpark downtown would likely consist of tournament games or games between rival high schools. For purposes of this analysis, it is assumed that the ballpark will host a total of 10 high school baseball games per year. Market and Financial Analysis of a Proposed New Minor League Ballpark 25 7.0 Market Demand and Building Program Analysis State/DisWlct high school tournaments - representatives of the Iowa High School Athletic Association (IHSAA) indicated that state tournaments are generally held in cities in the central part of the state, minirrfizing ~'avel time and expenses for participating schools. Baseball state tournaments are held in four classes, with two classes currently played in Marshalltown and two in Carroll. Substate and dis~ct tournament games are held at locations throughout the state. In 2003, substate games were played at Pe~'akis Park in Dubuque. Sites for substate and dislrict tournament games are selected by the host schools. Therefore, a new ballpark in Dubuque would only host such games ifa local high school was the host school and chose to hold the games at the ballpark. Miscellaneous amateur sports - in addition to high school and college baseball games, it is possible that the proposed ballpark could host other amateur sporting events, such as AAU baseball tournaments, Legion baseball tournaments or other such events. In addition, it is possible that the proposed ballpark could host one or more games involving area semi-pre baseball teams as well as other sporting events, potentially including football and soccer games. For purposes of this analysis, it is assumed that the ballpark could host approximately five amateur sports events per year. The number of concerts and miscellaneous other events held at the ballpark will depend somewhat on the operating prlodties of the ballpark's owner and operator. The number of outside events held at comparable ballparks ranges greatly, due in par~ to the varying operating philosophies of ballpark operators. Some ballparks limit outside usage to reduce wear and tear on the field. Others bring in as many outside events as possible to maximize the facility's revenue generating capabilities. The number of events held at a new ballpark in Dubuque will ultimately depend largely on the aggressiveness of ballpark operators in bringing in outside events. Based on the results of discussion with potential users and the review of comparable facilities, an estimate ofpotentiaI non-tenant event usage for a new ballpark in Dubuque is presented in Exhibit 7-5. As shown in the exhibit, it is estimated that 47 non-tenant events with annual attendance totaling approximately 29,250 could take place at a new ballpark in Dubuque. Exhibit 7-S Summary of Non-Tenant Event Estimates EventType Annum Average Total Events Attendance Attendance Concerts 2 4,000 8,000 High School Sports 10 500 5,000 College Sports 20 500 J 0,000 Amateur Sporr~ S 2250 1,250 O:her Events I 0 500 5,000 ITotals 47 29,2s01 Market and Financial Analysis of a Proposed New Minor League Ballpark 26 7.0 Market Demand and Building Program Analysis Ballpark Capacity Analysis In order to determine an appropriate seating capacity for a new ballpark in Dubuque, it is helpful to understand the percent of anpacity that comparable franchises typically achieve. Exhibit 7-6 presents five- year average attendance as a percent of total ballpark capacity at each of the comparable ballparks discussed in Section 6.0, with the exception of the John O'Donnell Stadium whose renovation project has yet to be completed. Exhibit 7.6 Capacity Analysis S-Year Average Percent of Team Facility Capacity Attendance Capacity ]Average 6,090 3,668 60%I As shown, the ballparks analyzed have an average capacity of approximately 6,100 and have drawn an average per game attendance equal to approximately 60 percent of total ballpark capacity over the past five years. The primary consideration in determining an appropriate capacity for a new ballpark in Dubuque is the anticipated attendance levels of the ballpark's tenant baseball team. The ballpark should be large enough to accommodate ticket demand for opening day, weekends, holidays, special promotional days, and other such games that typically represent the most highly-attended games at a minor league ballpark. However, the facility shotfld be small enough to provide an intimate setting for minor league baseball and to maintain a perception of ticket scarcity. Minor League Baseball raquires a seating capacity of at least 4,000 seats for a Class A ballpark. The proposed ballpark must meet this guideline in order to host a Midwest League franchise. It is recommended that a ballpark in Dubuque initially be designed with a capacity of approximately 4,000 to 4,500, which can include f~xed seating, general admission seating, and grass berm seating areas. A facility of this size would be likely to accommodate demand levels for the games of a Class A tenant. Further, the facility should be desi~aed with the ability to expand to a capacity of 6,000 in the future, should attendance levels warrant such an expansion. Market and Financial Analysis of a Proposed New Minor League Ballpark 2 7 7.0 Market Demand and Building Program Analysis Preliminary Premium Seating Analysis In order to assess the potential value of premium seating opportunities at a proposed new minor league ballpark, a preliminary, premium seating analysis was performed. For purposes of this analysis, a review of existing premium seating options in Dubuque was prepared, premium seating information from comparable Class A stadiums built since 1995 was gathered, and a corporate penetration analysis was performed. Data utilized was accumulated from existing databases, various publications, and interviews with facility representatives. This analysis was prepared to assist in the evaluation of potential premium seating for a new ballpark in Dubuque on a comparative basis. This section addresses premium seating, defined for purposes of this analysis as private suites and club seats. Private suites typically consist of private seating and entertaining areas typically located above the lower level of seating, which offer an unobstructed view of the playing field. Typical amenities incorpomted into private suites include tickets to minor league baseball games, VIP parking and a guarantee to receive all premium giveaways on game-days. Traditional club seating is not often incorporated in Class A ballparks. However, some of the stadiums reviewed incorporate an area of upseaie seating, typically behind home plate. Amenities associated with the upscale seats at Class A stadiums typically include waiter/waitress service, VIP parking, and individual theater-style seating in premier locations within the ballpark. Existing Premium Seating Options in Dubuque The Dubuque market does not curranfly include any suites or club seats at its sports and entertainment facilities. The lack of competition for premium seating spending in Dubuque may be an advantage to a new franchise in marketing premium seating at a new ballpark. However, the team may need to educate the market about the amenities and advantages associated with purchasing premium seating, as the market may currently be unfamiliar with the premium seating concept. Premium Seating in Recently Built Comparable Facilities In considering the appropriate level of premium seating that should be incorporated in a new ballpark in Dubuque, it is important to anderstand trends in current premium seating offerings at minor league ballparks. A review of premium seating inventories and prices supported at existing Class A ballparks can provide benchmarks to aid in developing a premium seating program in Dubuque. Exhibit 7-7 presents a sunmaary of the premium seating inventories at the comparable facilities discussed in Section 6.0. Market and Financial Analysis ora Proposed New Minor League Ballpark 28 7.0 Market Demand and Building Program Analysis As presented in the exhibit, average annual suite prices ranged from a Iow of $7,600 at Salem Baseball Stadium to a hig~h of $25,400 at Applebee's Park. It should be noted that the suites in Salem include fewer tickets than those of most other ballparks, which is partially responsible for their relatively low annual cost. As a more direct comparison, the annual suite cost relative to the number of seats was evaluated. When calculating the annual cost per suite seat, the prices range from a low of $800 per seat annually at Perdue Stadium to a high of $1,667 per seat annually at John O'Donnell Stadium and O'Brien Stadium. The facilities analyzed have an average annual suite price of $19,500. Four of the ballparks analyzed incorporate club seats, or an upscale seating area. Club sect inventories range from 300 at John O' Donnell Stadium to 1,500 at State Mutual Stadium. The average club seat price for the three facilities is $730 per season. Penetration Analysis Due to the higher costs typically associated with private suites, corporations are often the main pumhasers of premium seating. Therefore, a valuable indicator of the ability of a market to support private suites is the ratio of corporations and branches to the total number of suites. Exhibit 7-8 presents a penetration analysis of the comparable facility markets discussed in Section 6.0. Both the average and median penetration ratios have been calculated to offset the effect of outl!ers: ~Aarket and Financial Analysis of a Proposed New/~tinor League Ballpark 2 9 7.0 Market Demand and Building Program Analysis Exhibit 7-8 Suite Penetration Analysis Corporations Market Corporate and Branches Market Team Suites Inventory ( I ) Per Suite Dubuque, IA New Ballpark - S Suites S 193 Dubuque, IA New nallpark - 10 Suites l0 193 blew nalIpark - IS Suites IS 193 (I) Includes corporate headquar:ers with at [ess: 25 employees and SS miltion in annual sales and corpora:e branch~ with As shown in the exhibit, the median ratio of corporations and branches to suites in the comparable markets is 37. By incorporating five, 10 or 15 suites at a new ballpark, the resulting penetration ratios for Dubuque would be 39, 19 and 13. The five-suite ratio would be higher than the median ratio among comparable facility markets. The 10 and 15-suite ratios would be significantly lower than the median ratio, but would still be within the range of invantories found in comparable markets. In addition to private suites, three of the comparable facilities analyzed incorporated club, or upscale, seats, with seat inventories ranging from 300 to 1,500. Based on this information and the population base of Dubuque, it is estimated that a new ballpark in Dubuque could support approximately 200 to 400 club seats, with the ability to expand in the future if demand is sufficient. The premium seating estimates at a new Dubuque ballpark are based solely on a comparison of comparable Class A facilities and a market penetration analysis. It should be noted that the analysis did not include a detailed market survey, and therefore should only be considered a preliminary assessment. As the project continues to move forward, a more dvtailed premium seating analysis may be warranted to provide a more precise assessment of the premium seating market in Dubuque. Summary Attendance estimates for a new Class A baseball team in Dubuque were made based on a review of several specific factors of the Class A level. Analyzing the demographics of Dubuque's market, historical attendance levels of existing Class A teams, and a market penetration analysis relative to comparable Class A markets, potential attendance estimates and premium seating inventories have been developed for a proposed Class A ballpark. The analysis of.comparable facilities' event profiles as well as a survey of event promoters was performed to determine the potential event mix of the proposed Dubuque ballpark. Market and Financial Analysis of a Proposed New Minor League Ballpark 30 7.0 Market Demand and Building Program Analysis While some minor league baseball facilities throughout the country restrict the use of their fanility to professional baseball games, several ballparks host a wide variety of non-professional baseball events on a consistent basis. Stadiums that restrict their utilization to professional baseball do so for various reasons relating to either the teams or the public sector's goals and concerns for that facility. Stadiums that have multiple uses for their facilities host a wide variety of events, including professional, college, high school, and amateur tournaments as well as regular season sports, concerts, public or consumer shows, and other events. It should be noted that the potential event mix for the proposed stadium can be prioritized in many different ways, depending upon: Community oriented goals, · Revenue generating goals, or · Combination of community and revenue goals. Depending on the efforts and goals of all interested parties inthe proposed stadium, an entirely separate event mix could be determined based on the number and interest levels ofportinent event organizers. Based upon the analyses presented herein, it has been assumed that a new stadium in Dubuque could accommodate a broad range of events. Exhibit 7-9 suranmrizes an estimated number of events and the related attendance levels during the first years of the stadium's operation. These estimates are consistent with the average utilization of other comparable baseball facilities. Exhibit 7-9 Surnrnarf of Event Estimates New Dubuque Ballpark ITot~s 117 134,250 [69,2S0 204,2s01 As shown, total attendance for all events held at a new ballpark in Dubuque is estimated to range from approximately 134,250 to 204,250. Exhibit 7-10 presents a comparison of per game attendance for Class A franchises playing in new ballparks in comparable markets, including the estimated attendance levels for a franchise playing in a new Dubuque ballpark. Attendance figures for the comparable facilities are five-year averages. Market and Financial Analysis of a Proposed New Minor League Ballpark 31 7.0 Market Demand and Building Program Analysis Exhibit 7-10 Comparison of Dubuque Estimated Attendance with Comparable Facility Attendance 16,2s8 ~ I I As shown, the estimated attendance levels for a Class A team in Dubuque ere at the low end of the attendance experienced at comparable facilities. This is due in part to the Dubuque market's low population relative to other merkets supporting Class A franchises. In addition to the attendance estimates presented above, a preliminary premium seating analysis was conducted for a new Class A ballperk and estimates were generated as to the number of private suites and club, or upscale suites that would be incorporated into a new ballpark in Dubuque. Based on compamble facility averages and the penetration analyses, it was estimated a new ballpark in Dubuque could support five to i5 suites priced $15,000 to $20,000. In addition, it has been estimated that a new ballpark in Dubuque could support 200 to 400 club seats priced at approximately $700 to $840 per year. Market and F~nancial Analysis of a Proposed New Minor League Ballpark 32 8.0 Financial and Economic Impact Analysis 8.0 Financial and Economic Impact Analysis The previous sections of this report focused on the estimated market potential for the proposed new minor league ballpark in Dubuque along with the appropriate building program to accommodate estimated levels of potential furore market demand. This section presents an analysis of the potential operating results and economic impacts that could be generated by the proposed ballpark based on the results of the market analysis. As in all studies of this type, the estimated results are based on competent and efficient facility management and assume that no significant changes in minor league baseball, specifically the Class A leagues, will occur beyond those set forth in this report. The following general assumptions have been made in the preparation of the projections. Variations in these assumptions may have a material impact on the financial performance of the project. · The stadium will be marketed and operated by competent and experienced management: · The Dubuque market will generate spending on tickets, concessions, novelties, advertising, and premium seating that is consistent with comparable markets that have new ballparks. · Class A professional baseball will continue to exist in its present format in terms of event utilization. · Event and attendance assumptions are based on primary market mseamh, data received from comparable recently-built Class A facilities, and information provided by project representatives. · Special events that may occur during a given year but may not be recurring frequently (i.e. post season games, an All Star game, or specific amateur sporting events) are not included. It should be noted that hosting such events could generate substantial impacts in the years in which they Occur. Since detailed stadium design, configuration and cost estimates have not yet been specifically determined, the revenue and expense assumptions used in this analysis are based on results of historical operations at newly-built comparable minor leagne ballparks and industry trends. More detailed physical development planning must be completed before more precise estimates of facility financial operating results can be prepared. Once project planning is complete, the assumptions in this analysis should be updated. The updated assumptions could significantly affect the analysis of future operating results. The presentation of estimated operating results for a Class A team and ballpark is comprised of the following components: Operating Revenues, · Operating Expenses, · Estimated Ballpark and Franchise Financial Operations, and · Economic and Fiscal Impact Analysis. The information provided in this section represents a summary of the estimated revenues, expenses and economic impacts related to the proposed ballpark and team. Detailed assumptions and calculations for these items are presented in Appendix A. Market and Financial Analysis ora Proposed New Minor League Ballpark 33 8.0 Financial and Economic Impact Analysis Operating Revenues Revenues associated with the operation of a minor league baseball facility and franchise include stadium- related and franchise-related sources. The following revenues have been included in the operating projections for a new minor league baseball stadium in Dubuque: ,, Gate receipts/rent, Concessions and catering, · Merchandise, · Private suites and club seats, and · Advertising and sponsorships. Typically, franchise-related revenue is retained by the team while stadium-related revenues are generally allocated among various entities, including the franchise, stadium operator, public sector and other tenants or vendors. The allocation of stadium-related revenues associated with the presentation of minor league baseball games is typically determined by a lease agreement between the franchise and stadium operator or public sector. Since the ballpark's operating structure has not yet been determined, total stadium related revenues and expenses have been illustrated without assuming allocation of revenues or expenses. Leases among teams and public entities vary widely within the minor leagues. As the ballpark development process moves forward, a more detailed approach regarding the relationship between the financing of the ballpark and the allocation of operating revenues and expenses should be undertaken. Gate Receipts/Rent Ticket revenue is typically one of the main revenue sources for a minor league baseball team. The ticket prices used in this study are based on comparable facility team interviews. Exhibit 8-1 presents a sm.a3mary of single-game ticket prices at recently built Class A ballparks. As noted in the Exhibit, the average scaled ticket price at comparable new facilities ranges from $5.19 in Salem to $8.08 in Peoria, with an average price of $6.65. It should be noted that these averages do not include complimentary tickets or discounts given to purchasers of season or group tickets. Therefore, the actual turnstile ticket revenues per capita are somewhat lower than the figures given in the exhibit. Based on data from these comparable minor league ballparks and the Dubuque market it has been assumed that the average scaled ticket prices at the new stadium would approximate $6.00. Accounting for complimentary tickets, actual per capita gate receipts are estimated to approximate $5.00. Exhibit 8- I Comparable Facllity Ticket Prices Avg. Ticket JAvera~e $6.6S I Market and Financial Analysis of a Proposed New Minor League Ballpark 34 8.0 Financial and Economic Impact Analysis The following table presents the total estimated gate receipts that could be achieved by a minor league baseball franchise at a new ballpark in Dubuque. Estimated Tenant Ticket Sales Revenue I Low Base High $525,000 $700,000 $875,000 In addition to tenant gate receipts, it is assumed that the facility will also be used for other events, including high school and other amateur sporting events, concerts and other events. Rental rates estimates are based on rental rates achieved by other similar facilities for similar events. The following table presents the total estimated rental revenue from other events held at a new ballpark in Dubuque. L Estimated Rental Revenue J Low Base High $67,500 $67,500 $67,500 Concessions and Catering ~eO Typically, concession and merchandise sales generate a significant level of revenue for sports stadiums. New ballparks, through the increased number of points of sale and higher quality of food and beverage items, tend to generate higher food and beverage per capita spending relative to older facilities. Per capita spending levels have been based on industry averages. Based on historical operating margins experienced at other stadiums around the country and industry standards, it has been assumed that the cost of goods sold associated with concessions is approximately 60 percent. The remaining 40 percent is then allocated between the team, stadium operator, and/or the event promoter, depending on the stadium lease and rental agreements. In addition to standard concessions, it is assumed that catering will be available in the proposed ballpark's private suites. Catering revenue has been included in the following table, which presents combined concessions and catering revenue estimates for a new Dubuque ballpark. Estimated Concessions & Catering Revenue Low Base High $309,800 $415,500 $521,300 Merchandise ~eO Merchandise sales revenue consists of T-shirts, caps, souvenirs, programs and other miscellaneous items sold during events and at the team store. Based on industry averages, it has been assumed that the cost of goods sold for merchandise sales will be 80 percent, with the remaining 20 percent to be allocated to the stadium, tenant, and event promoters, based on the lease and rental agreements. Average per capita estimates for merchandise were developed based on historical operations of comparable facilities. I Estimated Merchandise Revenue I Low Base High $21,000 $28,000 $35,000 Market and Financial Analysis of a Proposed New Minor League Ballpark 35 8.0 Financial and Economic Impact Analysis Parking (net) While some minor league ballparks are able to generate additional revenue by charging for parking, several facilities do not have a parking fee in place. For purposes of this analysis, it has been assumed that adequate parking will be provided surrounding the ballpark, and that a parking rote ranging from $1.00 to $5.00 per car could be charged, depending on the type of event. However, it is assumed that any parking revenue derived from stadium events would be used to help finance stadium construction. Therefore, parking revenue has not been included in the estimated annual stadium revenues. Additional information related to these revenues is provided in Chapter 9.0 of diis report. Premium Seating (Private Suites and Club Seats) Premium seating is assumed to consist of private suites and club seating. For purposes of this analysis, it has been assumed that the proposed ballpark would incorporate between five and 15 private suites with an average annual lease price of estimatad to be $15,000 to $20,000 per suite. It has been assumed that each of the suites would include I2 seats. Based on the estimated ticket price detailed pmvinusly, the resulting net private suite premium would range from approximately $9,400 to $14,400. In addition to private suites, it is assumed that the ballpark would incorporate 200 to 400 club seats, which are anticipated to include wider, padded seats with extra legroom, cup holders, and preferred parking locations near the stadium. There could also be a stadium club or lounge area accessible to club seat holders offering drimks and a catered buffet for an additional per game fee. The lounge should offer a view of the field if possible. As with private suites, ticket value for preferred seating has been included in ticket revenue, while the premium charged for suites and preferred seats is reflected as additional revenue to the stadium/team. It has been assumed that total club seat prices would range from $700 to $840 per season, or $10.00 to $12.00 per game. These club seat prices would result in a net premium of $350 to $490 per seat. The following table summarizes estimated net premium seating revenue at a new ballpark in Dubuque. I Estimated Premium Seatlnl[ Revenue I Low Base High $116,800 $244,600 $411,400 Adverlising/Sponsorships Minor league baseball stadiums typically provide a number of opportunities to generate advertising and sponsorship revenue. Typically, the outfield fence signs generate the largest amount of advertising revenue, while other advertising revenue is generated from entrance sponsorships, in-game promotions, scoreboard siguage and eleelrunic messages. For purposes of this analysis, it has been assumed that the potential new stadium will provide a number of advertising mediums and will generate levels of advertising revenue consistent with other Class A minor league ballparks. Estimated Advertising & Sponsorship Revenue Low Base Hi:Ih 150,000 $250,000 $350,000 Market and Financial Analysis of a Proposed New Minor League Ballpark 36 8.0 Financial and Economic Impact Analysis Naming Rights Recently, many facilities have been able to generate significant revenues from selling the naming rights to the ballpark. The revenue generated through naming rights can be in the form of up-front payments or annual cash flow to the stadium. Typically, a local corporation will pay the facility an agreed-upon amount for a specified period of time to name the facility after the company. In exchange for the naming rights fee, the company typically receives in-stadium advertising, access to preferential seating amenities, and other intangible benefits from having a "high-profile" facility named after the company. For purposes of this analysis, it has been assumed that any naming rights revenue generated by the ballpark wot~ld be used to help fund stadium construction. Therefore, potential naming rights revenue has not been included in the estimated annual stadium operating revenues. A mom detailed discussion of potential naming rights revenues can be found in the funding analysis in Section 9.0. Operating Expenses Assumptions for team and stadium operating expenses are based on industry averages and the results experienced at various comparable Class A stadiums. The majority of recently built minor league ballparks are operated by the tenant baseball franchise. As with operating revenues, the allocation of operating expenses between the tenant and ballpark owner is typically determined by a lease agreement. Since there is no lease agreement as yet for a new ballpark in Dubuque, both team and stadium related expenses have been presented in summary below. Team Related Expenses Team related expenses consist of expenses solely related to the operation of the baseball team, including travel expenses, team equipment and supplies expense, general manager and staff salaries, special promotions and other such expenses. Class A franchise player salaries are paid by the team's Major League affiliate. The following table presents a summary of the estimated team operating expenses for a franchise playing in a new ballpark in Dubuque. Estimated Team Operatin~ Expenses Low Base Team Administrative Expenses $600.000 $650;000 Marketing and DromorJonal Expenses 400,000 500,000 [Toral Team Operaring Expenses $1,000,000 $1,1S0,000 High $700,000 550,000 $1,250,00oI Stadium Related Expenses Stadium related expenses consist of expenses directly related to the operation of the ballpark, including salaries, wages and benefits of grounds keepers and maintenance personnel, utilities, stadium repairs and maintenance, and insurance. Based on an analysis of operating expenses for comparable minor league facilities, it is estimated that expenses for the new Dubuque ballpark could range from $350,000 to $450,000. It is important to note that these expense estimates do not include any rent paid by the team to the City or any potential capital reserve funding or debt service payments. Market and Financial Analysis of a Proposed New Minor League Ballpark 8.0 Financial and Economic Impact Analysis Estimated Ballpark and Franchise Financial Operations Based on the assumptions detailed within this section, a stabilized year of estimated stadium operating results is presented in Exhibit 8-3 based on the range of attandance levels discussed in Section 7.0. Exhibit 8-3 Summary of Estimated Operating Results Low Base High Operating Revenue Tickets/rent $592,500 $767,500 $942,500 Premium seating I 16,800 244,600 411,400 Food and beverage 309,800 415,500 52 [,300 Advertising 150,000 250,000 350,000 Merchandise 21,000 28,000 35,000 Total Operating Revenue $ I, 190,100 $1,705,600 $2,260,200 Operating Expenses Stadium Expenses Team Administrative Expenses Marketing & Promotional Expenses Total Operating Expenses Operating Cash Flow/Loss Before Debt Serv ce & Capital Reserve Funding[ 350;000 400,000 450,000 600,000 650,000 700,000 400,000 500,000 550,000 $t,350,000 $1,550,000 $1,700,000 ($159,900) $155,600 $560,2001 As shown, it is estimated that a Class A franchise playing in a new ballpark in Dubuque could result in a net operating loss of approximately $160,000 under the low operating scenario or positive cash flows ranging from approximately $i56,000 to $560,000 under the base Case and high scenarios, respectively. It is important to note that these revenues and expenses represent total stadium and team related revenues and expenses and do not account for any allocations of revenues between the team and the stadium owner, and do not include any debt service payments or capital reserve fund payments that may be required. This presentation is designed to assist project representatives in assessing the financial impacts of the proposed facility, and cannot be considered to be a presentation of expected future results. Accordingly, the analysis of potential financial operating results may not be useful for other purposes. The assumptions disclosed herein are not all inclusive, but are those deemed to be significant. Because events and circumstances frequently do not occur as expected, there will be differences between estimated and actual results, and these differences may be material. Since detailed stadium design, configuration, and cost estimates have not yet been specifically determined, the revenue and expense assumptions used in this analysis are based on results of historical operations at newly-built minor league baseball stadiums and industry trends. More detailed physical development planning must be completed before more precise estimates of facility financial operating results can be prepared. Once project planning is con~lete, the assumptions used in this analysis should be updated. The updated assumptions could have a significant impact on the analysis of furore operating results. Nlarket and Financial Analysis of a Proposed New Minor League Ballpark 38 8.0 Financial and Economic Impact Analysis Economic and Fiscal Impact Analysis From a public sector standpoint, the economic end fiscal benefits generated by a minor league baseball team end ballpark are important elements in the decision to construct a new stadium. The key issues addressed in the following section are: · Economic end Fiscal Impact Concepts, · Annual Economic end Fiscal Impacts, * Stadium Construction One-Time Economic Impact, end · Non-Quantifiable Benefits. The ennual operations of a minor league baseball team end new ballpark can provide significant benefits to an area. Typically, end for the purposes of this report, quantifiable effects are characterized in terms of economic impacts and fiscal impacts. Economic impacts are conveyed through measures of direct spending, total output, personal earnings, and employment. These specific terms are defined later in this section. Fiscal impacts denote chenges in tax revenues. Based on the applicable area tax rates, the potential fiscal benefits associated with this project have also been estimated. The economic and fiscal impacts generated by a new team end ballpark most visibly begin with fan spending on tickets, concessions, merchandise, end premium seating. In addition, league end other team revenues also generate initial rounds of spending. Other spending patterns, including visiting team expenditures and fen spending outside the ballpark at local establishments also impact the local economy and have been incorporated into this analysis. Direct spending on construction typically consists of a large number of purchases of materials end labor. Since these large purchases tend to take place at one time, a distinct and visible impact on the community is typically created during the conslraction phase. The annual operating period impacts are typically less obvious than those generated during construction since the direct spending is being spread over the life of the stadium, but are olden more relevant, as these impacts represent a permanent change in the economy. Economic and Fiscal Impact Concepts Measurement of the effects that a particular development or business operation has on a specific economy are typically characterized in temas of economic impacts and fiscal impacts. Economic impacts measure direct spending, total output, personal earnings, end employment. Fiscal impacts measure tax revenues generated from sales, income end other similar taxes. The following flow chart provides a summary of the initial round of spending impacting the local economy due to the presence of a minor league baseball franchise end ballpark. Market and Financial Analysis of a Proposed New Minor League Ballpark 39 8.0 Financial and Economic Impact Analysis Source~ of Initial Spending The characteristics of these impacts are generally discussed in terms of their direct, indirect, and induced effects on the area economy. These terms are further defined as: · Direct Effects consist principally of initial purchases made by fans at home games, as well as before and after games. This spending typically takes place in local restaurants, retail establisbments, entertainment venues, and other such businesses. · Indirect Effects consist of the re-spending of the initial or direct expenditures. These indirect effects extend further as the dollars originating as direct expenditures continue to change bands. Eventually, the recipients of these dollars will spend all or paxl of their income on goods and services outside the local area, which halts the additional rounds of spending within the commuuity. This is termed "leakage" and tends to reduce the overall economic impact effects. · Induced Effects consist of the positive changes in employment, earnings, and tax collections generated by changes in population associated with direct and indirect expenditures. Applying economic multipliers to the amount of direct, or initial, spending provides an estimate of the re- spending of dollars in an economy. The 'huultiplief' effect is estimated in this analysis using a regional economic forecasting model provided by the IMPLAN Group of Minnesota. For purposes of this analysis, results of the economic impact analyses are measured as follows: · Total Output represents the total direct, indirect, and induced spending _effects generated by the project. This calculation measures the total dollar change in output that occurs in the local economy for each dollar of output delivered to final demand. Personal earnings represents the wages and salaries earned by employees of businesses associated with or impacted by the project. In other words, the multiplier measures the total dollar change in earnings of households employed by the affecied industries for each additional dollar of output delivered to final demand. * Employment represents the number of full- or part-time jobs supported by the project The employment multiplier measures the total change in the number of jobs in the local economy for each additional $1.0 million of output delivered to final demand. · Fiscal impacts represent the tax revenue generated for State and local governments and include sales, income and other similar taxes. Market and Financial Analysis of a Proposed New Minor League Ballpark 40 8.0 Financial and Economic Impact Analysis Economic Impact Analysis Jobs cilif'/ spending j Total output Annual Economic and Fiscal Impac~ One of the primary sources of direct spending involves event attendees making purchases in area restaurants, entertainment, retail, and other similar establishments. The analysis of direct spending related to ballpark activity begins with estimating the annual attendance that could be attracted to a new ballpark in Dubuque. These estimates are based on the event, attendance, and event day information presented in the market analysis. To assess the impact of the new Dubuque franchise and ballpark, the estimated direct spending was divided into the three main spending categories as identified below: · Team and Leagae Operations - revenues eamed by the team, including ticket sales, concessions, merchandise sales, parking, suite revenue, end advextising revenues. · Out-of-stadium - represents spending generated from game attendees. Spending is assumed to occur at local visitor indush'ias including area restaurants, retail stores, and other such businesses· · Visiting Team - represents expenses incurred by visiting teams. These expenses include dollars spent at lodging, restaurant, retail, and similar establishments in Dubuque· Exhibit 8-4 presents the estimated direct spending associated with the operations of a ballpark and minor league baseball franchise in Dubuque based on the per game attendance levels presented in Section 7.0. Market and Financial Analysis of a Proposed New Minor League Ballpark 41 8.0 Financial and Economic Impact Analysis S~en~ng Type ITotals $3.916,700 $5.870,900 $2,259,000 1361 Commercial spor~s $1.714,600 1.430 0.600 55.074 $2~451.700 $ 1.029,000 75 Hot~I 861.900 1.524 0.565 33A04 1,313,700 486,600 23 $7.418,200 $2,858,900 1741 ~ndlng Type Commercial spores $2~206,400 1.430 0.600 55.074 $3,[54,900 $1,324,200 96 ITot~s $6.032~800 $9,021,600 $3,482,100 2141 Total direct spending from a new ballpark in Dubuque is estimated to range from approximate $3.9 to $6.0 million. These levels of spending are estimated to generate approximately $5.9 to $9.0 million in total output and $2.3 to $3.5 million in personal earnings, and could support approximately 136 to 214 full- and part-time j obs. It is important to note that the economic impact estimates represent the total impacts to the area, and do not account for the fact that some of the estimated economic impact generated by the new ballpark and team would represent a shi~dng of spending that already occurs on sports and entertainment options within Dubuque. Because some of the spending that occurs at the new ballpark would likely have been spent in Dubuque regardless of the presence of the ballpark, not all of the impacts presented herein would be new to the Dubuque economy. Exhibit 8-5 presents the estimated annual fiscal impacts associated with a new ballpark and Class A minor league team in Dubuque. Direct tax revenues are based on taxable team and stadium revenues from tickets, concessions, merchandise, and parking, as well es out-of-stadium spending and visiting team spending. Market and Financial Analysis of a Proposed New Minor League Ballpark 42 8.0 Financial and Economic Impact Analysis Exhibit 8-S New Dubuque Ballpark Tax Impacts Tax Rate Low Base High Indirect Sales Tax Indlrecc Spending Total S~are indirect T~x Revenues 1.12% Total School Indirect Tax Revenues 0.22% To:al Local Option indirect Tax Revenues 0.22% $3,260,000 $32,600 $3,968,000 $4,677,000 $198,400 $46,800 $21,900 (I) $4,400 (I) $4,400 $2,463,000 $2,989,000 $S,SOC $6,700 Project Output $5,871,000 $7,418,000 $9,02~000 To:al Sta:e Corporate Tax Revenues 0.30% (2) [ $17,9001 L $22,6003 L $27,500j To:al Local Dp:ion Hozel/~lo:e] Tax Revenues 7.00% (3) [ $54,200] [ $60~,300 L $66,s00J $294'70uI TOTAL STATE TAX REVENUES $202,800 $248,500 TOTAL LOCAL TAX REVENUES $138,200 $150,700 $173,50u As shown in the exhibit, total annual state tax revenues generated by the presence of a new ballpark and team in Dubuque are estimated to range from approximately $203,000 under the Iow operating scenario to $295,000 under the ag~essive scenario. Total local tax revenues, including school sales taxes, local option sales taxes and local option hotel/motel taxes are estimated to range from $I28,000 to $174,000. Ballpark Construction One-Time Economic Impact The impact of the cortslraction phase is determined by the volume and nature of construction expenditures as well as the region in which they take place. Ballpark capacity, configuration, and the level of preferential ballpark amenities are the primaw influences on the total construction costs for a ballpark. Preliminary hard constmctinn costs for the proposed ballpark were estimated based on costs of recently constmated Class A facilities. It should be noted that these estimates, which are preliminary in nature, represent standard level finishes. It has been assumed that the ballpark would inenrpomte approximately 4,000 seats, five to 15 private suites and 200 to 400 club seats. Based on these assumptions, as well as discussions with sports architectural ftrms, it has been estimated that a new ballpark in Dubuque could be built for approximately $18.0 million. Based on similar ballpark projects, it has been assumed that approximately 50 percent of the stadium cost will consist of labor, with approximately 50 percent of the labor being supplied from the Dubuque area. Additionally, approximately 50 percent of the constmctinn cost will be for materials, with approximately 25 percent of the materials being supplied from the Dubuque area. Depending on the ability to supply a greater percentage of the labor and materials within the Dubuque area, construction-related economic impacts could vary from the estimates presented herein. Market and Financial Analysis of a Proposed New Minor League Ballpark 43 8.0 Financial and Economic Impact Analysis Exhibit 8-6 presents a summary of the estimated economic impacts related to the construction of a new ballpark in Dubuque. Exhibit 8-6 Estimated Stadium Construction impacts Assumptions Estimated project costs (excluding land) $ [8,000,000 Percentage materials 50% Percentage labor 50% Amount materials $9,000,000 Amount labor $9,000,000 Pensentage spen! in Dubuque Area Materials 25% Labor 50% Arnounz spen: in Dabugue Area Materials $~250,000 Labor $4,500,000 Total $6,750,000 Total Estimated Economic impact to Dubuque Area Multiplier Impact Total output 1.517 $10,237,000 Earnings 0.524 $3,537,000 Employment 16.370 90 As shown in the exhibit, construction of a new ballpark in Dubuque is estimated to generate approximately $6.8 million in local spending, which could generate approximately $10.2 million in total output and $3.5 million in personal earnings, and could support approximately 90 full- and part-time jobs. Non-Quantifiable Benefits A minor league baseball team creates direct and indirect economic benefits in the geographical area in which it is located. As previously discussed, many of those benefits are explicit, and their impact can be estimated. Non-quantifiable benefits must also be considered in a comprehensive review of the economic benefits derived from the construction and operation of a new ballpark and a minor league baseball team. The effects of attracting stadium attendees to the Dubuque area could impact numerous industries and enhance economic activity throughout the community. Primary visitor industries, including entertainment, restaurants, retail establishments, and related industries can benefit directly from the proposed new ballpark and team. Indirect effects can benefit various support industries, including the wholesale, distribution, manufacturing, and other industries. Market and Financial Analysis ora Proposed New Minor League Ballpark 44 8.0 Financial and Economic Impact Analysis A ballpark and the presence of a professional baseball team can positively impact business development. Potential qualitative benefits for the area could include: Providing a state-of-the-art, competitive facility for community use, · Enhancing community pride, self image, exposure, and reputation, · Enhancing economic growth and ancillary private sector development spurred by the operations and activities associated with the proposed stadium and team, · Diversifying consumer-oriented activities for families in the area attending baseball and other similar events, and · Creating new- advertising opportunities for local businesses. Summary Exhibit 8-7 provides a smnmary of the revenues and expenses related to a new ballpark and franchise, construction cost and debt service estimates and the estimated economic impacts related to a proposed ballpark and franchise. Exhibit 8-7 Summary of Financial and Economic Impacts Low Base High Revenues $ I,190, i 00 $1,705,600 $2,260,200 F~penses 1,350,000 1,550,000 1,700,OO0 Net Operating Cash Flow ($159,900) $155,600 $560,200 Ballpark Project Cost ( I ) $15,000,0130 $18,000,000 $20,000,000 Required Debt Service (2) 1,308,000 1,569,000 1,744,000 Total Output $5,871,000 $7,418,000 $9,022,000 Personal Earnings 2,259,000 2,859,000 3,482,000 Employment 140 170 210 As shown in the exhibit, it is estimated that a new Class A ballpark and franchise in Dubuque could ganemte a net loss of approximately $160,000 under the low operating scenario, or positive cash flows ranging from approximately $156,000 to $560,000 under the base case and high scenarios. The ballpark is estimated to cost approximately $15.0 million $20.0 million, with estimated annual debt service payments of approximately $1.3 million to $1.7 million. Market and Financial Analysis of a Proposed New Minor League Ballpark 45 9.0 Funding Analysis 9.0 Funding Analysis The purpose of this section is to summarize the typical funding sources used to fund minor league ballparks in other communities as well as quantify potential sources of funds which could be used for a new ballpark in Dubuque. This chapter has been divided into the following sections: Financing Techniques and Vehicles, Comparable Ballpark Funding, and Analysis of Potential Dubuque-Specific Funding Sources. Financing Techniques and Vehicles The development and financing of professional sports facilities throughout the country in recent years has largely relied on a combination of both public and private sector financing. With the enhanced revenue- generating capabilities of new professional sports facilities, the expanding facility operating and tenant revenue streams have encouraged a public/private parmemhip whereby public sector financing vehicles are supplemented with private sector revenue slrenms. In many cases, a public sector entity will issue some form of bond to wholly or partially finance the construction of the facility. The annual debt service required to retire the bonds is then sourced from a general fund and/or from various tax revenues including sales, hotel/motel, restaurant, entertainment and other taxes, as well as other revenue sources such as facility-related revenues. The types of financing mechanisms typically used in funding professional sports facilities are summarized below: A frequently used method of professional sports facility financing is the issuance of revenue bonds. Revenue bonds are special obligations issued by municipalities, counties, and states for which payment is dependent upon a particular source of funds, such as revenues generated by the project, to provide the amount needed for bond repayment. The issuer of the bonds pledges to the bondholders the revenues generated by the project being financed. No pledge of state or local ad valorem tax revenues is required; however, other taxes may be assessed and~or pledged in whole or in part by a municipality or by the state, often with legislative approval, to provide funds necessary to pay off the revenue bond offering. It may be the case, however, that any change in tax rotes or allocation would have to be approved by public referendum. The major disadvantage associated with revenue bonds relates to interest rates that are typically higher than those associated with general obligation bonds. This is largely due to the fact that revenue bonds are not backed by the full faith and credit of the issuing entity. In addition, funding of a debt seawice reserve and other credit enhancement out of bond proceeds makes the required bond size larger with higher annual debt service payments. Revenue bend financing may be structured in such a way that payments may be tied to a lower variable rate in the initial years of operation and converted to a higher fixed rate in later years. This is olden advantageous in situations where the particular revenue stream or streams that are pledged to bond debt service are expected to increase annually. Both the City of Dnhnque and Dubuque County have the ability to issue revenue bonds. The City or County could issue bonds backed by stadium-related revenues, for example. Market and Financial Analysis ora Proposed New Minor League Ballpark 46 9.0 Funding Analysis General Obligation Bonds General obligation bonds are backed by a pledge of ad valorem taxes of the issuer. This pledge is generally supported by a commitment from the issuer to repay the principal and interest through whatever means may be necessary, including levying additional taxes. The advantages associated with general obligation bonds revolve around the strength of the credit. It typically results in a simple financing that lowers the cost of issuance and reduces the bond size, since a debt service reserve fund is often not required. Also, the strength of the pledge provides a higher credit rating and, therefore, a lower cost of financing the project. Similar to revenue bonds, general obligation bond financing may also be structured with a lower variable interest rate in the early years of the project with conversion to a fixed rate in later years; however, this could require legislation to be enacted. The primary disadvantage associated with general obligation indebtedness is that the bonding capacity for other capital needs is reduced. Projects financed with general obligation bonds typically need voter approval. The public may perceive a project such as a professional sports facility as less essential than improved streets, libraries, or fire and police protection, especially if it will necessitate property tax increases. Both Dubuque County and the City of Dubuque could issue general obligation bonds backed by property taxes. Such an issuance would be subject to a public referendum, which would require 60 percent approval to pass. The City and/or County could also establish a capital improvements bond levy that would require only 50 percent approval from a public referendum. Certificates of Participation Certificates of Participation (COPs) represent another financial instrument that has been used to finance sports facilities. COP holders are repaid through an annual lease appropriation by a sponsoring governmental agency. COPs do not legally commit the governmental entity to repay the eartificate holder beyond the annual appropriations, and therefore do not typically require voter approval. Further, this type ofinsmument is not subject to many of the limitations and restrictions typically associated with general obligation bonds. As COPs generally offer the issuing authority less financial risk and more flexibility than other financing instruments, they tend to be more cumbersome due to the reliance on a ~a-ustea for appropriations while typically carrying a higher coupon rate relative to traditional general obligation bonds. COPs could allow the City of Dubuque to enhance a revenue source with a pledge to make up any revenue deficiencies from other City funds. This issue would be subject to annual appropriation. The certificates usually imply that some other security, such as revenue from operations or a sales tax, w/ll be relied on as the primary source of credit worthiness. Market and Financial Analysis of a Proposed New Minor League Ballpark 4 7 9.0 Funding Analysis The primary advantage associated with certificates of participation is that the obligation enhances the issue, resulting in an interest rate more favorable than a standard revenue bond issue. The disadvantage associated with COPs is that primary credit must still be established. Neither the City of Dubuque nor Dubuque County typically utilize COP's for funding purposes. Private/Public Equity The financing of professional sports facilities usually combines private and public equity contributions and debt that is supported by the revenues produced by the use of the facility itself. Private sources of equity can include the following: cash equity contributions, land contributions, and upfront payments such as naming rights, pouring rights, concessionaire fees, and premium seating deposits. Equity from local businesses, franchises, and joint venture partnerships have conlributed to several facility financings throughout the country. The specific contributions made by the private or public sector will rely on the specific circumstances present in the respective market. In some instances, the private sector has been able to fund the majority or all of the cost of ballpark development, typically in exchange for favorable lease terms. However, as will be demonstrated in the following section, in most cases private equity constitutes less than half of the overall project cost Tax Increment Financing (T1F) Tax increment financing (TIF) essentially involves capturing assessed valuation ~owth within a specific area (i.e. TIF dislric0 related to a particular development. TIF often requires enactment of legislation by the State legislature. Typically, a redevelopment agency delineates a project area and declares a base year. The existing base-assessed valuation is taxed as before by each overlapping taxing entity covering a portion of the project area. The additional assessed valuation, added to the tax rolls over the base, is taxed at the same rate as the base valuation. However, the property tax revenues attributed to the new incremental assessed valuation are remitted to the redevelopment agency and used to pay debt service. The economics of any potential TIF financing are, of course, highly dependent on the development potential of the chosen site and its surrounding land. Dubuque County and the City of Dubuque both have the ability to establish tax increment districts. The proposed ballpark site is located in one of Dubuque's two downtown TIF districts, and abuts the main downtown TIF dislrict that encompasses the main downtown area. It may be possible for the City to merge the two districts and for the funds generated in the downtown TIF district to be utilized for the development of a new ballpark. Private/Public Joint Venture Several sports facilities have been built through a partnership between a major or minor league sports franchise and a college or university. Under this type of venture, the professional franchise and the university can split some of the costs associated with facility construction and operations. A parmership with a public college or university can sometimes allow a professional franchise to tap into public funding sources that may not have been available for an exclusively professional facility. Market and Financial Analysis of a Proposed New Minor League Ballpark 48 9.0 Funding Analysis Comparable Ballpark Funding A review of total project costs and soumes of financing for recently-built Class A ballpark projects provides an in-depth understanding of the necessary funding levels and the potential ftmding sources which could be used to construct a ballpark in Dubuque. Exhibit 9-1 provides a summary of total project costs and public/private sector landing allocations for a number of Class A minor league ballpark projects throughout the counh'y. A brief summary of the specific funding sources used for each ballpark follows the exhibit. For purposes of this analysis, all funds di[ectly related to the presence of the team and stadium (i.e. lease payments, ticket surcharges, perking revenue, etc.) have been considered private, while only those funds that are purely related to public funds (i.e. tax revenues) have been considered public funds. The amount of funding participation by both the public and private sectors should be considered together with the revenue allocations set forth in the operating lease agreement to gain a full understanding of the financial responsibilities of each party throughout the term of the lease. As shown, the average construction cost of the ballparks analyzed was approximately $13.9 million, of which an average of 59 percent was publicly funded. Veteran's Memorial Stadium - Cedar Rapids Kernels The 5,300-seat Veteran's Memorial Stadium opened in 2002 and is owned by the City of Ceder Rapids. The $15.0 million stadium incorporates 12 private suites and no club seating. The largest source of stadium funding came in the form of $8.0 million in City-issued bonds backed by a 30-cent Veteran's Memorial levy and long-term team rent payments. The levy was approved through a city-wide referendum, which increased property taxes specifically to help fund stadium construction. Additional funding sources included a $3.2 million state Community Attraction and Tourism (CAT) grant from the Vision Iowa program, a $1.0 million Hall-Perrine Foundation grant, and a $1.5 million team contribution. Another $1.3 million in parking and site improvements were funded by a sales tax reimbursement and other miscellaneous sources. Veteran's Memorial Stadium million Market and Financial Analysis of a Proposed New Minor League Ballpark 49 9.0 Funding Analysis The team is required to make rent payments ha the amount of $120,000 in Year 1, $240,000 in Year 2, and $420,000 annually in Years 3 through 20 of the stadium lease agreement. dohn O'Donnell Stadium - Quad City River Bandits Originally constructed in 1932, John O'Donnell Stadium in Davenport, Iowa is undergoing a $14.1 million renovation that will improve and modernize the stadium, including flood protection, the addition of 20 private suites, an increase in capacity from 5,200 to 6,500, and the addition of other modem stadium amenities. The facility is currently owned by the City of Davenport and operated by the River Bandits. This operating structure will carry over to the renovated facility. John O'Donnell Stadium The primary funding source for the renovation came in the form of $6.5 million in City-issued aqOo~ 'rlck~tS~.=h~,-~ general obligation bonds. Approximately $2.8 raw,oat million will be funded through team rent payments Authority: CiO/GO Bond~ over the 15-ycar lease term. Several public grants k ,6.s ,~mlon were received by the City to help finance the co,~et Riverboat renovation, including a $1.25 million Community Author~: Attraction & Tourism (CAT) grant from Vision Iowa, $400,000 from Scot~ County, $200,000 from Scot~ Cou.t~. the Scott County Riverboat Development $~o,ooo Team ~ S~ CAT Grar~ Authority, and $200,000 from a regional riverboat P~yme.~: ,zs s~.~s mi.ion development authority, million In addition to the funding sources listed above, a lease addendum was passed authorizing a ticket surcharge of up to $1.80 per ticket. The surcharge is designed to provide additional funding on an as-needed basis. For example, if naming rights are sold for the facility, a portion of that revenue would be used to pay the stadium's debt service, allowing the ticket surcharge to be lowered. The City currently estimates that the surcharge will fund $2.7 million over the 15-year lease, assuming total annual attendance of 150,000. This estimate may be revised in the future if naming rights or other funding sources materialize. State Mutual Stadium - Rome Braves State Mutual Stadium opened in 2003 and was built at a cost of $15.0 million. The facility has a capacity of 5,000 seats and offers premium seating in the form of 14 private suites and 1,500 club seats. The stadium is owned by the City of Rome and Floyd County, and is operated by the Braves. The entire construction cost of the stadium was funded through a local option sales tax increase. In November 2001, Floyd County voters approved a one-cent increase in the local sales tax for a period of one year to fund ballpark construction. State Mutual Stadium Market and Financial Analysis of a Proposed New Minor League Ballpark 50 9.0 Funding Analysis Fifth Third Field- Dayton Dragons Fifth Third Field is owned by the City of Dayton and operated by the Dayton Dragons. Construction on the 8,300-seat stadium was completed in 2000 at a cost of $26.6 million. The facility incorporates 30 suites and 1,400 club seats. The City issued $11.2 million in revenue bonds secured by non-tax revenues to help fund the project. The City received an Economic Development grant in the amount of $2.6 million, which was conh'ibuted to the project. The City utilized $3.3 million of appropriated Federal Transporhation funds to finance the project. In addition, Montgomery County conlributed $4.0 million to the project. The Team received a loan in the amount of $4.0 million which also helped finance the pmjeat. Additionally, the team contributed $1.5 million which was used fund the cost of the scoreboard, concession equipment and furniture, fixtures and equipment. Fifth Third Field Team Cash= $4.0 million The Team makes an annual rent payment to the City of $9,000 for the use of the stadium. Additionally, the Team makes an annual rent payment to the City of $1,000 for the use of the Plaza area. The Team is responsible for all ordinary maintenance. The City and the Team meet annually to determine a budget for capital repairs and ordinary maintenance needs throughout the year. The City receives all revenues generated from parking. The City bas the right to promote 20 events annually at the stadium, rent-free. The City is responsible for reimbursing the Team for the Team's out-of-pocket costs related to event expanses. The City receives 25 percent of the gross revenue derived from the operation of all concessions during City events. The team receives all revenue generated from ticket sales, concessions, advertising, premium seating and non-baseball events held at the stadium. Coastal Federal Field- Myrtle Beach Pelicans Coastal Federal Field Constracted in 1999 at a cost of $13.0 million, Coastal Federal Field has a seating capacity of approximately 6,000. The stadium is owned by the City of Myrtle Beach and operated by the team, and was funded by both public and private fimds. The City and Horry County contributed $10.0 million to the project in the form of Certificates of Participation. In lieu of a rent payment, the team conffibuted the remaining $3.0 million in cash to the cost of the sladium. Team ~ million The team retains all gross revenues generated from the stadium up to $3.25 million and remits to the City four percent of gross revenues in excess of $3.25 million. The City retains ticket and concession revenues generated from non-minor league baseball events held at the stadium. Operating expenses are shared between the team and City with the team being responsible for the majority of expenses including cleanup, heating and air conditioning and ganeral maintenance at the stadium. The City is responsible for capital improvements. Market and Financial Analysis of a Proposed New Minor League Ballpark 51 9.0 Funding Analysis John Thurman Field- Modesto Athletics Built in 1997 at a cost of $5.1 million, John Thurman Field has a seating capacity of 4,000. The City of Modesto owns and operates the stadium, which is located on the outskirts of Modesto. The stadium includes two suites and no club seats. John Ihurman Field The City issued $3.0 million in revenue bonds to fund a portion of the project. The bonds are being repaid with monies from the City's general tim& Approximately $I.7 million in cash from the City's capital improvement fund wes also used to assist in funding the project. The final funding component for the project was a $400,000 letter of credit from the Team Owl~r's The team retains all revenue generated at the stadium, except for that generated from the facilities two private suites, and in return pays the City an annual rent payment of the greater of $75,000 or 7.5 percent of all gross revenues generated at the stadium. The Team is responsible for providing all game-day personnel and the City is responsible for maintaining the stadium and funding capital repairs. Riley ,Park- Charleston Riverdogs Riley Park was built in 1997 at a cost of $19.5 million. The stadium has a seating capacity of 5,549 and premium seating options including eight suites and 2,000 upscale box seats. The ballpark is owned by the City of Charlaston and operated by the team. The project was completely funded with public monies, including approximately $16.5 million from the City in the form of a $3.0 million urban development grant and proceeds from $13.5 million in certificates of participation. Additionally, Charleston County contributed $3.0 million in cash to help fund the project. Riley Park County: $3.0 million Oldsmobile Park - Lan~ing Lugnuts Oldsmobile Park opened in 1996 at a cost of $18.0 million. The facility incorporates 10,000 seats, 26 private suites and 900 club seats. The ballpark is owned by the City of Lansing and operated by the Lansing Lugnuts. Market and Financial Analysis of a Proposed New Minor League Ballpark 52 9.0 Funding Analysis The Park was fancied using a variety of revenue streams. The City of Lansing obtained a 15-year loan for $13 million which is to be paid back with stadium-related revenues and an annual payment from the Tax Increment Financing Authority. The $5 million in infrastructure costs was funded with four separate mechanisms. The State of Michigan contributed $1.2 million in the form of an environmental grant which was to be used for site improvements. The City of Lansing issued $1.6 million in General Oldsmobile Park State Obligation bonds to improve parking near the facility. The Department of Transportation contributed a grant for $650,000 to assist with road improvements. The City also contributed $550,000 from the Utility Fund end the land, which was valued at $1.0 million. Approximately $750,000 in tax increment funds are used to pay the annual debt service of $1.47 million, while the remaining amount is paid by stadium revenues secured via the operating lease. The Team pays to the City an annual rent payment of 10 percent of the following: · concessions and novelty revenue, · paid admission revenues, · all advertising revenue excluding permanently affixed stadium signage in excess of $350,000 of which the Team and City shall split equally (50/50). The Team pays to the City 10 percent of all net revenue received from non-baseball, Team-related events and 25 percent of all gross revenue generated from City events as well as 33 1/3 pement of all gross revenue generated from the sale of 16 of the stadium's private suites. The City retains all revenue generated from the sale of the remaining 10 private suites. Iftbe Team assists the City by leasing any of the City's private suites, the Team retains I 0 percent of the revenue generated from the lease payments. If the City assists the Team by leasing any of the 16 Team private suites, the Team shall remit $10,000 per year for each suite leased. The Team sbell be responsible for providing all baseball related equipment. The City opexates the parking areas and retains all revenue generated related to the parking areas. The City has the right to retain all revenues generated from the sale of naming rights for the stadium. The City is responsible for all major maintenance, restoration, replacement and repairs to the stadium. The City is also responsible for the cost of all utilities except those incurred on game days, which are the responsibility of the Team. The Team operates the concession areas and is responsible for providing the scoreboard at its sole coat and expense. The City is respens~le for the cost of security personnel. Arthur W. Perdue Stadium - Delmarva Shorebirds Constructed in 1995, Arthur W. Perdue Stadium has a seating capacity of approximately 6,500 and incorporates six private suites. Market and Financial Analysis of a Proposed New Minor League l~allpark 53 9.0 Funding Analysis The total cost of the project was $12.0 m/Ilion. The County of Wicomico and the State of Maryland each conWibutad $2.1 million to the project in the form of revenue bonds. A portion of these bonds is being repaid from a 10 percent amusement tax on Shorebirds tickets which generates approximately s2., $100,000 per year. Revenues from the State and County general funds are being used to retire the remainder of the bond issues. The team owner Wi¢om~co contributed approximately $7~8 million to the project Bon~: s2.1 in the form of cash. The team retains all revenues million generated at the ballpark and is responsible for all Arthur W. Perdue Stadium Team Owner - Cash: $7.8 million Lake Olmstead Stadium- Augusta Green jackets Constructed in 1995 at a cost of $4.0 million, Lake Olmstead Stadium has a seating capacity of 4,330. The ballpark does not incorporate any premium seating. The facility is owned by the Richmond Stadium Authority and operated by the Team. The project was financed with public monies from the City of Augusta and Richmond County. Both the City and County each conlributed $2.0 million in cash from their respective General Funds to fund the project. The team retains all revenues and pays all expenses at the stadium. The team pays the City $50,000 per year in rent and is responsible for all capital improvements th excess of $25,000 in a given year. Lake Olmstead Stadium Fox Cities Stadium - Wisconsin Timber Rattlers Fox Cities Stadium was built in 1995 at a cost of approximately $4.0 million. The facility has a seating capacity of 5,500 end incorporates three private suites. The stadium is owned by the Appleton Sports Authority and operated by the Timber Rattlers. The ballpark was privately funded by a group of local investors. The team pays the Authority a rental payment of $600,000 per year for use of the stadium. The team retains all revenues and pays all expenses at the facility. Fox Cities Stadium Market and Financial Analysis of a Proposed New Minor League Ballpark 54 9.0 Funding Analysis Memorial Stadium - Fort Wayne Wizards Memorial Stadium is owned by Allen County, and is par~ of a complex which includes an arena and an exposition center. The stadium opened in 1993 at a cost of $6.2 million project which was funded by the following sources: · $2 million in excess Arena revenues · $2 million in excess mvanue from an existing 1% county food and beverage tax · $2.2 million loan from the City, which is paid back via a $205,000 annual rental payment from the Team. 3[l~e team makes an annual base rent payment of $222,222 to Allen County for use of the stadium and an additional rent payment of $1.00 for each turnstile attendee in excess of 230,000 for die year. The team retains 43 percent of concession revenues up to $560,000 and 45 percent of revenues in excess of $560,001. Additionally, the team retains revenues generated from advertising, parking, merchandise, private suites and other non-baseball events. The County is responsible for all game day personnel; however, the Team reimburses the County for all expenses related thereto. The County is responsible for stadium operations and capital repairs. Memorial Stadium 0 'Brien Field- Peoria Chiefs O'Brien field was built in 2002 at a cost of $18.0 million. Infmslracmre work around the ballpark site increased die total project cost to approximately $25.0 million. The cost of stadium construction was entirely funded by team ownership. The City of Peoria contributed the $7.0 cost of infrastructure improvements. The facility is privately owned. million O'Brien Field Applebee's Park- Lexington Legends Applebee's Park opened in 2001 and was constructed at a cost of $17.0 million, which consisted of $13.5 million in stadium construction, $I.5 million in land costs, and $2.0 million in soft costs. The entire project was private funded by team ownership. The ballpark is privately owned and operated. Applebee's Park $17.0 million Market and Financial Analysis of a Proposed New Minor League Ballpark 55 9.0 Funding Analysis Comparable Facili~ Funding Summary Exhibit 9-2 summarizes the funding sources utilized for each of the ballparks discussed in this section. As shown in the exhibit, of the 14 ballparks analyzed, eight were funded in part by an upfront contribution from team ownership, while City or County-issued revenue bonds and cash contributions were the two most commonly utilized public financing mechanisms. In addition to these common mechanisms, a variety of additional public and private sources have been utilized by teams and communities that have conslructed facilities similar to the proposed Dubuque ballpark in recent years. The remainder of this section will analyze various funding mechanisms that could be used to fund ballpark construction in Dubuque. Analysis of Potential Dubuque-Specific Funding Sources Based on construction costs of recently built minor league ballparks, it is estimated that a new ballpark in Dubuque could cost approximately $15.0 million to $20.0 million. It is important to note that for purposes of this analysis, it is assumed that the land for the ballpark will be contributed or otherwise provided to the City by DI1. The following exhibit presents the estimated minimum annual debt service associated with a new stadium assuming a variety of project costs. For purposes of this analysis, it is assumed that the City will issue the debt at a taxable interest rate of 6.00 percent. Potential Debt Service Payments Facility Cost Interest Rate Term Debt Service $15,000,000 6.00% 20 years $ 1,308,000 $18,000,000 6.00% 20 years $ 1,569,000 $20,000,000 6.00% 20 years $1,744,000 Market and Financial Analysis of a Proposed New Minor League Ballpark 56 9.0 Funding Analysis The annual debt service payment for a new ballpark 6osting $15.0 million is estimated total approximately $1.3 million, while the debt service on au $18 million or $20 million ballpark project is estimated at $1.6 million and $1.7 million, respectively. It is important to note that these debt service estimates do not include any potential debt service coverage ratio that may be required by lenders. As discussed previously, financing plans for minor league ballparks typically include a variety of both public and private funding sources. The remainder of this section will outline these potential soumes and estimate the potential funding capacity of each of these revenue streams. Several industries and geographic areas benefit directly and indirectly as a result oftbe presence ora minor league baseball team and facility and the resulting activity. For example, the hotel/motel induslry is directly affected by the room nights, room revenue, and other hotel spending, while the restaurant, public transportation, retail, and other industries also stand to benefit directly by the dollars spent by sporting event attendees as well as other events occurring at the facility. Indirect beneficiaries of this spending may include businesses and individuals that support the industries discussed previously, such as additional hotel and motel employees, as well as the "spin-off" impacts on sales, income, and employment. Geographically, these direct and indirect impacts may be realized within close proximity to the development, city wide, county wide, and in some cases, state wide. A summary of the potential funding soumes for a new Dubuque ballpark is presented on the following pages. The intent of this analysis is to provide a summary of the potential funding sources that may be available for use in constructing the proposed ballpark. The final decision to move forward with a mixture of these soumes will be a decision for the leadem oftbe City of Dubuque to address. For purposes of this analysis, those sources considered to be most available are presented first, with other potential soumes presented at the end. Tax Increment Financing (T1F) As outlined previously, TIF involves capturing incremental tax revenues generated within a specific area (i.e. TIF district) related to a particular development and applying those specific revenues toward payment of bond debt. At present, the proposed ballpark site is located in one of two downtown TIF districts (Ice Harbor and Downtown). While the two dislricts are separate, it may be possible for the City to merge the dishScts into one. This could enable the revenues generated in the downtown TIF dislrict to be utilized for the ballpark development. It is estimated that the Downtown TIF district generates approximately $920,000 in annual revenues, with existing obligations supported by these revenues projected through 2021. However, as the existing obligations are repaid, the TIF funds could be utilized for other projects, such as the proposed ballpark. Based on these discussions, it is estimated that these future excess revenues could support approximately $2.7 million in project costs related to a new ballpark. While ail of the TIF revenues generated in the Ice Harbor District are currently dedicated to specific projekts, the downtown TIF district currently generates approximately $780,000 per year in incremental revenues that could potentially be utilized for ballpark development. Of the revenues generated by the downtown TIF district, 25 percent (approximately $195,000) is allocated to the various taxing bodies, while 75 percent (approximately $585,000) is allocated to the City. The City's portion of these revenues is currently earmarked for debt service on downtown parking ramps, while the remaining 25 percent is not specifically earmarked for any particular project. Therefore, it may be possible for the City Cotmcil to elect to divert the 25 percent currently allocated to the various taxing bodies for ballpark development. The following table presents an estimate of the potential funding capacity of these revenues. Market and Financial Analysis of a Proposed New Minor League Ballpark 5 7 9.0 Funding Analysis Property Tax TIF Funding Capacity Est. Unallocated Downtown TIF Increment $195,000 Funding Debt Potential Coverage Interest w/20 Year Ratio Rate Bonds 2.0 6.00% $ [,I 18,000 As shown, it is estimated that the portion of the existing downtown TIF district that is currently allocated to the taxing entities could potentially support between $ I. I million and $2.2 million in debt, depending on the debt coverage ratio required by the lending entity. As these revenues would likely be backed by the City, it is possible that the debt coverage ratio would be close to 1.0, therefore for purposes of this analysis, it is assumed that this revenue stream could support approximately $2.2 million of the total ballpark development cost. Property Tax Levy Several recent ballpark developments have been funded in part through the use of general obligation or capital improvement funds supported by a property tax increase. Such a property tax increase typically involves some form of pubtic referendum, depending on the structure of the levy. General Obligation Bonds The proposed ballpark would be located in an Urban Renewal District (URD). In Iowa, cities are authorized to issue general obligation bonds, called an "essential corporate purchase," for projects located within a URD. Therefore, the City could issue bonds for all or a portion oftbe amount needed to fund the ballpark. The issuance would be subject to a "reverse referendum," which would be triggered by a petition from citizens of Dubuque. Ifa petition is filed, a referendum would need to be held and would require a 60 percent approval to pass. Ifa petition is not filed, the City could issue the bonds without the referendum. In addition, the County could, through an agreement with the City, issue general obligation bonds under the above referenced method. In this case, the entire county would vote ifa petition is received. Based on discussions with City and County representatives, it is estimated that an increase of $1.00 per $1,000 in assessed value could generate approximately $1.7 million in City tax revenues or approximately $2.8 million in County tax revenues, depending on the taxing entity. The following table presents the estimated debt that could potentially be supported by each of these revenue streams. Property Tax Increase Funding Capacity [$1.00 Cit~ Property Tax Increase $1,658,000 I [$1.00 Count-/Property Tax Increase $2,830,000 I Funding Funding Debt Potential Debt Potential Coverage Interest w/20 Year Coverage interest wi 20 Year Ratio Rate Bonds Ratio Rate Bonds 2.0 6.00% $9,509,000 2.0 6.00% $16,230,000 1.5 6.00% $12,678,000 1.5 6.00% $21.640,000 1.0 6.00% $19,017,000 1.0 6.00% $32,460,000 Market and Financial Analysis of a Proposed New Minor League Ballpark 58 9.0 Funding Analysis As shown in the exhibit, a $1.00 increase in City property taxes could potentially support approximately $9.5 million to $19.0 imllion in debt, while a similar increase in County property taxes could support approximately $16.2 million to $32.5 million in debt. In order to implement either of these tax increases, the change would have to be approved by a public referendum with 60 percent of the vote. Capital Improvement Tax Levy The City also has the ability to establish a Capital Improvement Fund to assist in financing the proposed ballpark. Funds ganemted through this levy would then be dedicated to specific capital projects. Such a levy would require only 50 percent approval at public referendum, as opposed to 60 percent approval for a general obligation debt issuance. According to the State tax code, the maximum a city can levy for a capital improvement fund would be $0.675 per $1,000 in assessed value, which would generate approximately $1.1 million per year in the City of Dubuque. The following table presents the estimated debt that could potentially be supported by each of these revenue streams. Capital Improvement Levy Funding Capacity ]50.675 Cap. Improvement Lev~ $1,119,150 I Funding Debt Potential Coverage Interest wi 20 Year Ratio Rate Bonds 2.0 6.00% $6,418,000 I.S 6.00% $8,558,000 1.0 6.00% $12,837;000 As shown, a capital improvement levy by the City of $0.675 could potentially support approximately $6.4 million to $12.8 million in debt. The City should work closely with its legal and bond counsel on the procedures necessary to incur debt utilizing the Capital Improvement Tax Levy. Memorial Building Levy Under the Iowa Tax Code, a community can elect to construct a facility designed to commemorate the services rendered by United States military persounel at public expanse through a ganeml obligation property tax levy. The process must begin with a petition for such a building, followed by a general election requiting a simple majority approval. If the issue passes public referendum, a Commission must be established to supervise the consh'uction and management of the facility. This process was utilized recently by Cedar Rapids to fund a portion of the new Veterans Memorial Stadium project in that community. The maximum levy for such a development is $0.8I per $1,000 in assessed value. A levy of this amount is estimated to generate approximately $1.3 million in annual property tax revenues. The following table presents the estimated funding capacity of a Memorial Building Levy. Market and Financial Analysis of a Proposed New Minor League Ballpark 59 9.0 Funding Analysis Memorial Building Levy Funding Capacity 150.81 Plemorial Lev~ Annual Revenue $1,343,000 I Funding Debt Potential Coverage Interest w/20 Year Ratio Rate Bonds 2.0 6.00% $7,702,000 1.5 6.00% $10,269,000 1.0 6.00% $15,404,000 As shown, the revenues genemted by a $0.81 per $1,000 in assessed value property tax levy could support between $7.7 million and $15.4 million in debt. It is important to note that utilizing this levy would require the facility to have a name reflective of the memorial nature of the facility. This fact could impede the ability of the City to sell naming fights for the facility. Contractually Obligated Income Contractually obligated income can include revenue sh'eams such as rent, suite revenue, and advertising revenues such as naming rights or other revenues. Because one party is guaranteed to receive a specific amount of revenue from the other party, it is often easier to bond a project based on contractually obligated revenue than on other revenues, such as ticket surcharges, that will fluctuate from year to year. Depending on the structure of the lease agreement between the stadium operator and the tenants, guaranteed rental payments may be used to help fund a portion of the project costs. None of the recently constructed or planned ballparks have utilized guaranteed rent payments in the financing of the facility. However, a number of the use agreements between the teams and the owners of these facilities require the teams to pay fixed rent payments and, as such, could have been utilized for financing purposes. Admission Tax/Rental Payment A number of communities throughout the country have instituted an admission tax/surcharge that is imposed on the amounts paid for the admission to certain sporting events, performing arts events, concerts or other spectator events to provide partial funding for the development of a public assembly facility. In most cases, such a surcharge is structored to be all or a significant portion of the rent paid by the tenant team. One disadvantage with such a tax is that local residents would likely pay a significant portion of these taxes. Based on the estimated total armual attendance range of 105,000 to 175,000 for a Class A franchise in Dubuque, a $1.00 ticket surcharge would result in revenues of approximately $105,000 to $175,000. These revenues could potentially be structured as a rental payment by the Team to the City, with the City using this revenue to help pay the debt service on a new ballpark. The following exhibit summarizes the level of debt service that could be supported by an admissions surcharge. Market and Financial Analysis of a Proposed New Minor League Ballpark 60 9.0 Funding Analysis I~oa~r~e SlOS,O00 I 12'O00pergame $140,000 I 12,SOOper~ $175,000 Based on the estimated attendance levels presented previously, a $1.00 ticket sumharge could support approximately $602,000 to $2.0 million in total debt, depending on debt service requirements and attendance levels. Naming Rights Another potential revenue source that could be utilized for financing purposes relates to the sale of naming rights for the ballpark. Recently, many facilities have been able to generate significant revenues fi.om selling the naming fights to the ballpark. The revenue generated through nanfing rights can be in the form of up-front payments or annual cash flow to the stadium. Typically, a local corporation will pay an agreed-upon mount for a specified period of time to name the facility after the company. In exchange for the naming rights fee, the company typically receives in-stadium advertising, access to preferential seating amenities, and other intangible benefits from having a "high- profile" facility named after the company. The following exhibit presents a summary of comparable ballparks that have recently negotiated naming rights agreements. JClass A Average $2, I S0,000 12 $169,S00[ As shown, the average annual value for naming rights at the Class A facilities analyzed is approximately $170,000. For purposes of this analysis, it has been assumed that a new ballpark in Dubuque could generate $150,000 to $250,000 in annual naming rights revenue. It is important to note that naming rights are very sensitive to local market conditions, the strength of the economy, and the timing of the agxeernent. The following table presents a summary of the potential debt that could be supported by various naming rights agreements. For purposes of this analysis, it is assumed that a naming rights agreement would cover a 10-year term, which is consistent with other Class A naming rights agreements. Market and Financial Analysis of a Proposed New Minor League Ballpark 61 9.0 Funding Analysis i~.~ s,so,ooo I Isa`se s2oo,ooo I IH~gh s25o,ooo I As shown, naming rights revenues could potentially support approximately $552,000 to $1.8 million in debt, depending on the amount of the annual payment and the debt coverage milo requhed by lenders. It is important to note that, while a 10-year naming agreement term has been assumed for purposes of this analysis, it may be possible to obtain a longer agreement or to sign a new naming agreement at the conclusion of the original 10-year term. Parking Revenue Based on discussions with City representatives, it may be possible for the City to capture revenues generated from parking for events taking place at the ballpark. This could encompass parking at lots on- site at the ballpark as well as the downtown ramps and on-street parking metem. The following table presents the estimated funding capacity of captured parking revenues. sTo,ooa J IBase(2) S93,000 I {HighO) $il7,000 I Funding Fundir~ Funding As shown, revenues from parking during minor league ballgames taking place at the proposed facility could support approximately $401,000 to $1.3 million in debt, depending on debt coverage ratios end attendance levels. Other Potential Sources While the funding sources noted above constitute some of the most likely funding options for a new ballpark in Dubuque, there are other options that could potentially play a role in the financing plan. These include monies that may be available from sales or other taxes, fedemt or state grants, contributions from private donors, founding parmer contributions and other such sources. Market and Financial Analysis of a Proposed New Minor League Ballpark 62 9.0 Funding Analysis Sales Tax A number of new minor league stadiums have been financed in large part using dedicated city sales tax revenues, sometimes under laws permitting local option increases. Sales taxes provide strong credit stmctares because they are relatively predictable and tend to track both inflation and economic growth. There is oran public resistance to the use of this potential revenue stream to back debt issued to construct sports facilities. Currently, the local sales tax rote throughout Dubuque is 7.0 percent. Of this total tax rote, five percent is allocated to the State of Iowa, with one percent each allocated to the City of Dubuque and the Dubuque School District. According to State statute, one percent is the maximum amount of local options sales tax a City or School District can levy. Revenues from the local option sales tmxes are earmarked for specific projects in the legislation that established the taxes, and cannot be utilized for other projects without voter approval. Because the local option sales taxes are already at their maximum, it is assumed that sales tax revenues will not likely be available to help fund a new ballpark. However, funds could become available if the tax is renewed in the future or the projects for which these revenues are earmarked are paid in full. Hotel Expansion Property Tax T1F In addition to capturing the revenues generated from the downtown TIF district, it may also be possible for the City to capture additional proper~ taxes related to an expansion of the Grand Harbor Resort. The Resort has agreed to expand by 150 rooms if capacity is maintained at an average of 80 percent for two consecutive years of operations. Such an expansion is estimated to be valued at approximately $16 million, although the assessed value would likely be significantly less than that. For purposes of this analysis, it is assumed that such an expansion would be assessed at a total of $8 million. Based on a TIF tax mte of $29.57648 per $1,000 in assessed value, it is estimated that this expansion would result in an increase of appmximately $237,000 per year. The following table presents the estimated funding capacity of this revenue. Hotel Expansion TIF Increment Funding Capacity I Estimated Hotel Expansion TIF Increment $237,000 I Funding Debt pntentia~ Coverage Interest wi 20 Year Ratio Rate Bonds ZO 6.00% $ 1,359,000 1.5 6.00% $ 1,812,000 1.0 6.00% $2,718,000 As shown, the estimated prope~iy tax increment related to an expansion of the Grand Harbor Resort is estimated to support between $1.4 million and $2.7 million in ballpark development costs, depending on the required debt coverage ratio. As with the property tax described above, it is possible that debt issued related to this revenue stream would be able to obtain a lower debt coverage ratio. Market and Financial Analysis of a Proposed New Minor League Ballpark 63 9.0 Funding Analysis While these revenues could potentially be utilized for ballpark funding purposes, there is no guarantee that the hotel expansion will take place. At present, in its first year of operations, the Resort has achieved approximately 60 percent occupancy. With the opening of the conference center attached to the Resort and increased interest in general, it is estimated that the second year occupancy will approach 80 percent, while the third year of operations is estimated to exceed that level. Therefore, it is likely that an expansion would not begin until approximately 2006 or after, therefore these revenues cannot be relied on for purposes of this analysis. Hotel Expansion Hotel/Motel Tax TJF Hotel/motel taxes have been a frequently used revenue source for the construction of sports facilities throughout the United States. Hotel/motel taxes are paid by visitors to the area and are thus seen as an indirect fee affecting visiting spectators and stadium users and tend to be a more politically acceptable funding source. It should be noted that an increase in hotel/motel related taxes could have a negative impact on the overall attractiveness of the Dubuque market for visitors. · The City of Dubuque currently levies a seven percent bed tax on hotels and motels xvithin the City, which is the maximum allowable under Iowa tax codes. In addition, the revenues generated by this tax from the Grand Harbor Resort have been dedicated to the construction of the conference center located near the Resort. However, as mentioned previously, the hotel could potentially undergo an expansion in the future, and the lodging tax revenues generated from this expansion could potentially be captured for purposes of ballpark development. Assuming a 150-room expansion, an average daily rate of $120 and 60 percent capacity, this tax could generate approximately $276,000 per year in incremental revenues. The following table presents the estimated funding capacity of this level of revenue. Hotel Expmaslon Lodging Tax Capacity I Estimated Lodging Tax An nual Revenue $276,000 Funding Debt Potential Coverage Interest w/20 Year Ratio Rate Bonds 2.0 6.00% $1,583,000 1.5 6.00% $2,110,000 1.0 6.00% $3.166.000 As shown, lodging tax revenues generated by a hotel expansion could support between $1.6 million and $3.2 million in debt. However, as there is no guarantee that the hotel will undergo any expansion, it is unlikely that these revenues could be utilized initially for purposes of funding a new ballpark. Enterprise District T1F In addition to property tax TIF revenues, several markets have utilized an Enterprise District as another form of T1F financing. This method involves establishing a specific geographic area in which certain revenues (such as sales taxes, parking revenues or other specific revenues) are captured for purposes of funding a specific project. However, based on discussions with City representatives, the establishment of such a district in Dubuque is not a viable option according to State statutes. Market and Financial Analysis of a Proposed New Minor League Ballpark 64 9.0 Funding Analysis Vision Iowa It may be possible for the City to access additional money from the Vision Iowa program that was implemanted in recent years. The City has used the Vision Iowa fund to help develop a significant portion of the Ice Harbor developments, and could potentially utilize additional Vision Iowa funds to contribute to a ballpark development. While the fimds from this program have already been preliminarily allocated to other markets, if these other markets are unable to develop satisfactory projects and financing plans, additional money may be available from this fund. The amount of potential funding from the Vision Iowa program is indeterminate at this time. Additional research should be conducted to determine the availability of these funds. "Founding Partner" Revenue~ The City may also be able to sell "founding partner" suites, club seats or other items that could ganemte up-front revenues for ballpark development. It may be possible to sell a small number of suites, typically two to four, in exchange for an up-front payment from the purchasing party. The City could sell two suites for $20,000 per year for a 10 year agreement, with the payment required up-front, which would result in a total of $400,000 that could be utilized to reduce the amount of stadium costs supported by debt issuances. It may also be possible to sell commemorative bricks, plaques or other items that could ganerete additional funding to reduce the debt issuance required for stadium construction. Other Sources In addition to the potential funding sources described above, the ballpark and Surrounding area could be designed to accommodate retail space and/or restaurant space. These spaces could potentially be owned by the City, with the City then able to rent these spaces to private interests. The rental revenues generated through these spaces could be utilized by the City to support the cost of building the ballpark. Without a finalized ballpark design and f'nm commitments from prospective retail or dining entities, it is not possible to determine the potential revenues that could be generated from such rentals, however this issue should continue to be addressed throughout the design and development process. Summary As noted in this section, each minor league baseball stadium project has a unique funding structure and set of goals. The ultimate financing structure of a sports facility is dependant on the political, environmental, and economic concerns or issues of the related parties. In some markets, the city has the ability to finance a substantial portion of the project cost, while some franchises, due to either significant debt levels, size of the home market, or other factors, are not capable of supporting much of the project costs. During this phase, analyses were conducted to evaluate specific funding sources for a potential new ballpark in Dubuque. A variety of funding vehicles and revenue sources were evaluated. Based on recent minor league stadium financing throughout the U.S., a number of financing mechanisms have been utilized. These methods include the issuance of revenue and/or general obligation bonds, certificates of participation, and private/public debt and equity. Market and Financial Analysis of a Proposed New Minor League Ballpark 65 9.0 Funding Analysis Many public and private revenue sources exist that have the potential to be used for the financing of a new Class A baseball stadium. Examples of potential revenue sources include tax revenues resulting from hotel taxes, sales taxes, automobile rental taxes, facility revenues, and other such sources. With each tax revenue source, the estimated incremental revenue generated by an assumed increase in the tax rate has been estimated. It should be noted that the list of sources presented is by no means intended to be exhaustive or cumulative in nature. Rather, based on the preliminary funding analysis conducted, the listed items represent potential revenue sources that may or may not be individually or collectively feasible. Team owner funds and facility revenues typically comprise the largest source of private funds. Again, examples of facility revenues include income from rent, ticket surcharges, premium seating, seat licenses, advertising, naming rights, concessions, merchandise, and parking. 'Ihe sh'ucture of the lease agreement between the stadium owner, operator, and tenant(s) as well as faciliiy operating results will impact the amount of facility revenues that may be used for funding purposes. Exhibit 9-4 Funding Summary Annual Interest Fundin[ Capacit~ Source Revenue Rate I .Ox Coverage I .Sx Coverage 2.0x Coverage General Obliga:ion Debt - City ( I ) $1,658,000 6.00% $ [9,017,000 $12,678,000 $9,509,000 General Obligation Debt - County ( 1 ) $2,830,000 6.00% $32,460,000 $21,640,000 $16,230,000 Capital Improvement Lev'/{2) Si,119,150 6.00% $12,837.000 $8,558,000 $6,418,000 I*lemorial Building Levy (3) $1,343,000 6.00% $15,404.000 $ I 0.269.000 $7,702,000 Admissions Tax]Surcharge (4) $140,000 6.00% $1,606,000 $1,071,000 $803,000 Parking Revenue (S) $93,000 6.00% $1,067,000 $711,000 $533,000 Naming Rights (6) $200,000 6.00% $1,472,000 $981,000 $736,000 Based on the analyses conducted during this study, several specific funding sources have been identified as potentially viable for the construction of a new ballpark in downtown Dubuque. The following table presents a summary of the estimated funding capacities of eanh of these funding sources. As shown, several potential funding sources could be utilized alone or in conjunction with other sources to support the constraction of the proposed ballpark. The intent of this analysis has been to provide a summary of the potential sources that could be available for ballpark construction. The decision to move forward with the project and determine the mixture of funding sources will be made by the leaders of the City of Dubuque. Market and Financial Analysis ora Proposed New Minor League Ballpark 66 ~ooo~ed Dubuau~ Baiieark Financial Estimates Assumptions EventType: Tenant Baseball (Low) 70 1,500 105,000 Tenant BasebaLl (Base} 70 2,000 140,000 Tenant Baseball (High) 70 2,500 175,000 Conce~ 2 4,000 5,000 High Scbeol Sports 10 500 5,000 Coltsge Speds 20 500 10,000 Amateur Spe~ 5 250 1 giber Eveols 10 500 Total 117 134,250 - 204,250 Average Per Capita Spending Ticket Price Concessions Uemhandise Cata~ing Tenant Baseball $5.00 $5.00 $1.00 $20.00 Concerts $25.00 $5.00 $350 $25.00 High School Sperts $4.00 $2.00 $0.50 $0.00 Coltage Speds $7.00 $3.00 $050 $0.00 Amateur Sports $4.00 $2.00 $0.50 $0.00 Off]er Events ~.00 $3.50 $1.00 $0.00 Stadium Rental Rate Flat Fee % o1 Gate Tenant Baseball Na n/a Conceds $7,500 10% High Schpel Sports 500 n/a College Sports 1,000 n/a Amateur Spods 500 Na Other Events 2,000 n/a Premium Sea0~: Low Base High NumberofSu0es 5 10 15 Number,Sold 5 10 15 SeataperSuita 12 12 12 AverageAnnuaIPfice $15,000 $17,500 $20,000 Number of CLub Seats 200 300 400 Number Sold 200 300 400 Average Pdce Per Game $10~00 $11.00 $12.00 A~nual Naming Rights Revenue $150,000 A~nual Adver~stsg Revenue $150.000 $200,000 $250,000 $250,000 $350,000 Appendb(A Proposed Dubuque Bal]pa;k Financial Estimates Revenue & Expense Summary Tickets/rent Premium sealing (1) Food and beverage Advedising Merchandise Low Base High $592,500 $767,500 $942,500 116,800 244,600 411,400 309,800 415,500 521,300 150,000 250,000 350,000 21,000 28,000 35,000 1,190,100 1,705,600 2,260,200 350,000 400,000 450,000 600,000 650,000 700,000 400,000 500,000 550,000 1,350,000 1,550,000 1,700,000 ($159,900) $155,600 $569,200 -13.4% 9.1% 24.8% Stadium Expenses Team Adminis~C~e Expenses Marketing & Promotional Expenses TotaI expenses EBITDA (1) Includes suite and club sat premiums. Appendix A Proposed Dubuque Ballpark Financial Estimates Gate Receipts Low Base High Number of events 2 2 2 Average ticket price $25.00 $25.00 $25.00 Average paid attendance 4,000 4,000 4,000 Average 0al<et revenue 100,000 100,000 100,000 Stadium share- Flat Fee $7,500 $7,500 $7,500 Stadium share- % of gross 10% 10% 10% Stadium revenue $20,000 $20,000 $20,000 Other Revenue $180,000 $180,000 $100,000 Niqh School Speds Number of events 10 10 10 Average ticket price $4.00 $4.00 $4.00 Average paid attendance 500 500 500 Stadium rent $500 $500 $500 Stadium revenue $5,000 $5,000 $5,000 Other Revenue $15,000 $15,000 $15,000 Amateur Soor~s Number of events 5 5 5 Average ~cket price $4.00 $4.00 $4.00 Average paid alte~iance 250 250 250 Stadium rant $500 $500 $500 Stadium revenue $2,500 $2,500 $2,500 Other Revenue $2,500 $2,500 $2,500 OCqer Events Number of events 10 10 10 Average ticket pdce $5.00 $5.00 $5.00 Average paid affendance 500 500 500 Stadium rent $2,000 $2,000 $2,000 Stadium revenue $20,000 $20,000 Other Revenue $5,003 $5,000 $5,000 Appendix A Preoosed Dubuque Ballpark Financial Es§mates Low Base High Luxu~7 Suite Revenue Numbe: of suites 5 10 15 Number of suites sold 5 10 15 Average suite price $15,000 $17,500 $20,000 Average seats per suite 12 12 12 Total suite revenue $75,000 $175,000 $300,000 Less: ticket revenues $28,209 $56,4~0 $84,600 N et suite revenue $46,800 $118,600 $215,400 Number of club sea~s 200 300 400 Number of dub seats sold 200 300 400 Average dub seat pdce per game $10.00 $1 Total club seat revenue $140,000 $231,000 $336,000 Less: ticket revenues $70,000 $105,000 $140,000 Net cfub seat revenue $70,000 $126,000 $196,000 kdver tisinglSponsorships Gross annual advJspons. $150,000 $250,000 $350,000 ~laming Rights Gross annual revenue $150,000 $200,000 $250,000 Fulfillment c~sfu $0 $0 $0 Net annusl revenue $150,000 $200,000 $250,000 Note: it is assumed that naming fights revenue will be used to help fund stadium construction. Therefore, it is not i~cluded in the estimated finandal statements. AppendixA Proposed Dubuque BaOpark Financial Estt mates Low Base High ;oncessions Tenant Baseball Number of events 70 70 70 Per Cap $5.00 $5.00 $5.00 Percentage no show / compliments~ tickets 0% 0% 0% Average tamsfile attendance 1,500 2,000 2,500 Gross concession revenue $630,000 $840,000 $1,050,000 Opera0ng margin 40% 40% 40% Net concession revenue $252,000 $336,000 $420,000 Number of events 2 2 2 Per Cap $5.00 $5.00 $5.0~ Percentage no show / complimentary tickets 0% 0% 0% Average tumsale attendance 4,00~ 4,000 4,000 Gross concession revenue $40,000 $40,000 $40,000 Opera0ng margin 40"/0 40% 40% Net concession revenue $16,000 $16,000 $16,000 Stadium % 75% 75% 75% Other % 25% 25% 25% Stadium revenue $12,000 $12,000 $12,000 Other revenue $4,000 $4,000 $4,000 Hioh School S~o~ts Number of ever~s 10 10 10 Per Cap $2.00 $2-00 $2.00 Percer~ge no show I compl~me~tary ~sheta 0% 0% 0% Average tumsttie attendance 500 500 500 Gross concessbn revenue $10,000 $10,000 $10,000 Operatin~ margin 40% 40% 40% Net concession revenue $4,000 $4,000 $4,000 Stadium % 100% 100% 100% Other % 0% 0% 0% Stadium revenue $4,000 $4,000 $4,000 Other revenue $0 $0 $0 CSL l~ternafional 09/18/03 Page 5 Appendix A proposed Dubuque Ba park Rflan¢ al Estimates Low Base High Concessions (conrd) Colleoe S~orts Number of events 20 20 20 Per Cap $3.00 $3.00 SD.00 Percentage no show / complimentary tickets 0% 0% 0% Average tumstits attendance 500 500 500 Gross concession revenue $30,000 $30,000 $30,000 Operating margin 40% 40% 40% Net concession revenue $12,000 $12,000 $12,000 Stadium % 100% 100% 100% Otber % 0% 0% Stadium revenue $12,000 $12,000 $12,000 Other revenue SD SD $0 Amateur Speds Number of events 5 5 5 Per Cap $2.00 $2.00 $2.00 Percentage no show / comptimeofa~y tickets 0% 0% 0% Average tums'fits aitendance 250 250 250 Gross concession revenue $2,500 $2,500 $2,500 Operating margin 40% 40% 40% Net concession revenue $1 ,O00 $1,000 $1,000 Sladium % 100% 100% 100% Other % 0% 0% 0% Stadium revenue $1,000 $1,000 $1 Other revenue SD SD SD Other Events Number of events 10 10 10 Per Cap $3.50 $3.50 $3.50 Perce~tsge no show I complimentsrF tickets 0% 0% 0% Average tumshle attsndance 500 500 500 Gross concession revenue $17,500 $17,500 $17,500 Operating margin 40% 40% 40% Net concession revenue $7,000 $7,000 $7,000 Stsdiurn % 100% 100% 100% Other % 0% 0% 0% Stadium revenue $7,000 $7,000 $7,000 Other revenue $0 SD $0 Appendix A Proposed Dubuque BaOpark F~nanclal Estimates Low Base Nigh Ca~fing Tenant Baseball Number of events 70 70 70 Per Cap $20.00 $20.00 $20,00 Percentage ~o show I comp~mentary tickets 0% 0% 0% Average turnstile attendance 60 120 100 Gross catering revenue $84,000 $168,000 $252,000 Opera5ng margin 25% 25% 25% Net catering revenue $21,000 $42,000 $63,000 ConcerJs Number of events 2 2 2 Per Cap $25.00 $25.00 $25.00 Percerr~age no show I complimentar~ tickets 0% 0% 0% Average tams0'~e attendance 60 120 180 Gross ¢ate~9 revenue $3,000 $6,000 $9,000 Operating msrgin 25% 25% 25% Net catefin~ revenue $750 $1,500 $2,250 Stadium % 100% 100% 100% Other % 0% 0% 0% Stadium revenue $750 $1,500 $2,250 Other revenue $0 $0 $0 $0.00 $0~0 $0.00 0% 0% 0% 0 0 0 $0 $0 25% 25% 25% $o $o $o ~oo% ~oo% lOO% 0% 0% 0% $0 $0 $0 $0 $0 ~ $0 Low Base High Catering {cont'd) Colleqe Sports Number of events 20 20 20 Per Cap $0.00 $0.00 $0.00 Percentage no show / complimentay 0ckets 0% 0% 0% Average tumsrle attendance 0 0 0 Gross catarng revenue $0 Oberatir~ margin 25% 25% 25% Net catedng revenue $0 $0 $0 Stadium % 100% 100% 100% Other % 0% 0% 0% Stadium revenue $0 $0 Other revenue $0 $0 SO Amateur Sports Number of eventa 5 5 5 Per Cap $0.00 $0.00 $0.00 Percentage no show / complimentaly 0cketa 0% 0% 0% Average tumsale aUe[~ance 0 0 0 Gross catering revenue $0 $0 $0 Oberafin9 ma~jin 25% 25% 25% Net cater~g revenue $0 $0 $0 Stadium % 100% 100% 100% Ot~er % 0% ~',~ 0% Stadium revenue $0 $0 $0 Other revenue $0 $0 $0 Other Events Number of events 10 10 10 Per Cap $0,00 $0.00 $0.00 Percentage no shew / complimentary 0ckets 0% 0% 0% Average tamsb'le attendance 0 0 0 Gmss c='ttern§ revenue $0 $0 $0 Operating margin 25% 25% 25% Net catedng m~enue $0 $0 $0 Stadium % 100% 10~/o 100% Other % 0% 0% 0% Stadium revenue $0 $0 $0 Other revenue $0 $0 $0 Appendix A Proposed Dubuque Batipark Financial Estimates Low Base High Merchandise Tenant E~asebal] Number of events 70 70 70 Per Cap $1.00 $1.09 $1.00 Percentage no show / complimenta~/~ckets 0% 0% Average tumeti[e attendance 1,500 2,000 2,500 Gross merchandise revenue $105,000 $140,000 $175,000 Operating margin 20% 20% 20% Net merchandise revenue $21,000 $28,000 $35,000 Per Cap S3.50 $3.50 $3.50 Percentage no show ! complimentary tickets 0% 0% 0% Gross men:bandise revenue $28,000 $28,000 $28,000 Operatthg margin 20% 20% 20% Net merchandtse revenue $5,600 $5,600 $5,600 Stadium % 0% 0% 0% Other % 100% 100% 100% Stadium revenue $5 $0 $0 Other revenue $5,600 $5,600 $5,600 Htsh Sch~l SDor~ Number of events 10 10 10 Per Cap $0.50 $0.50 $0.50 Percentage no show / complimentary tic, ets 0% 0% 0% Average tsmsfits attendance 500 500 500 Gross memhandise revenue $2,500 $2,500 $2,500 Operating margin 20% 26% 20% Net merchandise revenue $500 $500 $500 Stadium % 0% 0% 0% Other % 100% 100% 100% Stadium revaque $5 $0 Other revenue $500 $500 $500 Merchandise (cont'd) Low Base High Number of events 20 20 20 Per Cap $050 $0.50 $0.50 Percentage no show I compiimentar~ ~ckets 0% 0% 0% Average tumsBe altendance 500 500 500 Gross merchandise revenue $5,000 $5,000 $5,000 Operating marg[~ 20% 20% 20% Net merchandise revenue $1,000 $1,000 $1,000 Stadium % 0% 0% 0% Ot~er % 100% 100% 100% Stadium revenue $0 $0 $0 Other revenue $1,00O $1,000 $1,000 Amateur Sports Number of events 5 5 5 Per Cap $0.50 $0.50 $0.50 Percentage no show / complimentary 0cketa 0% 0% 0% Average turnstile a~endance 250 250 25~ Gross merc~nd~e revenue $625 $625 $625 Operating margin 20% 20% 20% Net memhandise revenue $125 $125 $125 Stadium % 0% 0% 0% Otber % 100% 100% 100% Stadium revenue $0 $0 $0 Otber revenue $125 $125 $125 Other Events Number of events 10 10 10 Per Cap $1.00 $1.00 $1 PercerP. age no show / complimen~ry tickets 0% 0% 0% Average ~Jmshle attendance 500 500 500 Gross memhandise revenue $5,000 $5,000 $5,000 Opem6ng margi~ 20% 20% 20% Net merchandise revenue $1,000 $1,000 $1,000 Stadium % 0% 0% 0% O~er % 100% 100% 100% Stadium revenue $0 $0 $0 OU'~r revenue $1,000 $1,000 $1,000 Appeedix A Proposed Dubuque Ballpark Financial Estimates Parkir~ Low Base High Tenant Baseball Number of events 70 70 70 Charge per car $3.00 $3,00 $3.00 Average tumshqe attendance 1,500 2,000 2,500 Peopta per car 3.00 3.00 3.00 OperaSng margin 80% 80% 80% Net parking revenue $84,000 $112,000 $140,0(~ Team % 0% 0% 0% Other % 100% 100% 100% Team Revenue $0 $0 $0 Other Revenue $84,000 $113,000 $140~000 Number of events 2 2 2 Charge per car $5.00 $5.00 $5.00 Average tums~e attendance 4,000 4,000 4,000 People per car 3.00 3.00 3.00 OperaSng margin 80% 80% 80% Net parking revenue ~10,667 $10,667 $10,667 Stadium % 0% 0% 0% Event % 100% 100% 100% Stadium revenue $0 $0 $0 Other revenue $10,657 $10,667 $10,667 Hiah School S~ods Number of evems 10 10 10 Charge per car $1.00 $1.00 $1.00 Average turnstile attendance 500 500 500 People per car 3.00 3,00 3.00 Operating margin 80% 80% 80% Net parking revenue $1,333 $1,333 $1,333 Stadium % 0% 0% 0% Event % 100% 100% 100% Stadium revenue $0 $0 $0 Other revenue $1,333 $1,333 $1,333 Parking (caol'd) Low Base High Colleha Sports Number of events 20 20 20 Charge per car $1.00 $1.00 $1.00 Average tumsitle attendance 500 500 500 Peopte per car 3.00 3.00 3.00 OperaEn§ margin 80% 80% 80% Net pa~ng revenue $2,667 $2,667 $3,667 Stadium % 0% 0% 0% Other % 100% 100% 100% Stadium revenue $0 $0 $0 Other revenue $2,667 $2,667 $2,667 Amateur Spods Number of events 5 5 5 Charge per car $1.00 $1.00 $1.00 Average turnstile attendance 250 250 250 People per car 3.00 3.00 3.00 Operatit',g margin 80% 80% 80% Net parking revenue $333 $333 $333 Stadium % 0% 0% 0% Other % 100% 100% 100% Stadium revenue $0 $0 $0 Other revenue $333 $333 $333 Other Events Number of events 10 10 10 Charge per car $3.00 $3.00 $3.00 Average tsmstile sttandance 500 500 500 Peopie per car 3.00 3.00 3.00 Operaitng margin 60% 80% 80% Net pa~ng revenue $4,000 $4,000 $4,000 Stadium % 0% 0% 0% Other % 100% 100% 100% Stadium revenue $0 $0 $0 Other revenue $4,000 $4,000 $4,000 Note: It is assumed that parking re,~mque will be used to help fund stadium cons~ction. Therefore, it is not included in the estimated 6nancial statements. pr°~ert DBbu~& Bagpark Financial Estir~ates Low Base High Stsdi~n Expenses $350,000 $400,000 $450,000 Team Adminisb'ative Expenses 600,000 650,000 700~000 Utilization Summary Events Tenant Baseball 70 70 70 Conce~ 2 2 2 High School Sports 10 10 10 College Sports 20 20 20 Am~eur Spo~ 5 5 5 Other Events 10 10 10 Total Events 117 117 117 Total Attendance Tenant Baseball 105,000 140,000 175,000 Conceds 8,000 8,000 8,000 High Sd~ool Spots 5,000 5,000 5,000 College Sports 10,000 10,000 10,000 Amateur Sports 1,250 1,250 1,250 O~her Events 5,000 5,000 5,000 Total Attendance 134,250 109~50 204~50 Low Base High Economic Impacts Stsdium/Team-Reloted Revenues Tickets $845,000 $1,020,000 $1,195,000 Concessions 730,000 940,000 1,150,000 Catering 87,000 174,000 261,000 Merchandise 146,125 181,125 216,125 Parking 128,750 163,750 198,750 Premium sea5n§ 116,800 24~,600 411,400 Naming hghts 150,000 200,000 250,000 AdverUsingfSponsorshipe 150,000 250,000 350,000 Total $2,353,575 $3,173,475 $4,032,275 Out-o~-FadlSy Spending Trial actsal aOendance 134,250 169,250 204,250 Per capita spending, net of taxes: Hotel $2.50 $2.50 $2.50 Food and beverage 2.00 ZOO 2.00 Rotal 0.50 0.50 0.50 Ente~inment 0.50 0.50 0.50 Transpada0on 0.50 0.50 0.50 Miscellaneous 0.25 025 025 Total $6.25 $625 $6.25 Hotel $335,625 $423,125 $510,625 Food and beverage 268,500 338,500 408,500 Reta~ 67,125 84,625 102,125 Entertainment 67,125 84,625 102,125 Transpoda5on 67,125 84,625 102,125 Miscellaneous 33,563 42,313 51,063 Total $839,063 $1,057,813 $1,276,563 Economic Impacts (cont'd) Visiting Team/Event Personnel Spending Average visiting personnel per event Annual visigng team/event personnel Average daily stay Low Base High 25 25 25 2,925 2,925 2,925 Daily per cap~ spending, net of taxes: Hotel Food and beverage Retalq Gross: Food and beverage Retail Entertainment Transpoda0on Miscellaneous Total $100.00 $100.00 $100.00 30.00 30.00 30.00 10.00 10.00 10~0 10.00 10.00 10.00 10.00 10~0 10.00 5.00 5.00 5.00 $165.00 $165.00 $165.00 $438,750 $438,750 $438,750 131,625 131,625 131,625 43,875 43,875 43,875 43i875 43,875 43,875 43,875 43,875 43,875 21,938 21,938 21,938 $723,938 $723,938 $723,938 Low Base High Economic Impacts (cont'd) Gross Direct Spending: Total Commercial sporbs $1,261,800 $1,714,608 $2,206,400 Hotal 774,375 861,875 949,375 Food and beverage 1,217,125 1,584,125 1,951,125 Retail 257,125 309,625 362,125 Entar~ainment 111,000 128,500 146,000 TranspodatJon 239,750 292,250 344,750 Mbscellaneous 55,500 64,258 73,000 Total $3,915,675 $4,855,225 $6,032,775 Gross Output: Total Commercial Sporis 1.429902 $1,804,250 $~,451,710 $3,154,936 Hotal 1.524288 1,180,371 1,313,746 1,447,121 Food and bevera~e 1.553429 1,890,717 2,460,826 3,030,934 Retail 1.447039 372,070 445,039 524,009 E~tertalnment 1.553429 172,431 199,616 226,801 Tmnsporlation 1.521413 364,759 444,633 524,507 Miscellaneous 1.553429 86,215 99,808 113,400 Total $5,870,813 $7,418,377 $9,021,708 Gross Jobs: Total * Commercial Sports 55.074258 55 75 96 Hotel 33A03830 20 23 25 Food and beverage 40.804285 39 51 63 Retail 44.155310 9 11 13 Entertainment 40.804285 4 4 5 Transporta6on 37292984 7 9 10 Miscellaneous 40.804285 2 2 2 Total 136 174 214 Gross Earnings: Total Commercial Spo~ 0.600146 $757,264 $1,029,010 $1,324,162 Hotel 0.564574 437,192 486,592 535,992 Food and beverage 6.533128 648,883 844,541 1,040,199 Retail 0.646122 166,134 200,096 233,977 Entertainment 0.533128 59,177 68,507 77,837 Transportation 0.670154 160,669 195,853 231,036 Miscellaneous 0.533128 29,589 34,253 38,918 Total $2,258,909 $2,858,812 $3,482,121 * Direct spending is dMded by 1.0 million and de~atad to 1998 dollam before applying jobs multiplier · rex Collections State Sates Tax Coliec6ons (2000} State Gross Product (2000) Indirect Tax Rate $1,423,700,000 $90,942,000,000 Low Base High Gate receipts $845,000 $1,020,000 $1,195,000 Concessions 730,000 940,000 1,150,000 Catering 87,000 174,000 261,000 Merchandise 146,125 181,125 216,125 Hotel 774,375 861,875 949,375 Food and beverage 400,125 470,125 540,125 E~tertainment 111,000 128,500 146,000 Mtsceltsr, eous 55,500 64,250 73,000 Totel direct taxable sales $3,260,125 $3,968,375 $4,676,625 State~te~ 59% 56% 5.0% School SC~ ~x 1.0% 1.0% 1.0% Lo~[ Option Scles T~ 1.0% 1.0% 1.0% Direct Sales Tax collections State of Iowa $163,006 $196,419 $233,631 School SCtsS Tax 32,601 39,684 46,765 Local Option Sales Tax 32,601 39,684 46,766 Indirect and induced: Total output $5,870,813 $7,418,377 $9,021,708 Direct spending $3,916,675 $4,955,225 $6,032,775 Indirect and induced spending $1,954,138 $2,463,152 $2,966,933 Total indirect tax rate Indireci Scl~s Tax CWlec6o~ State of iowa $21,851 $27,543 $33,423 School Sales Tax 4,370 5,009 6,685 Local Op6on Sales Tax 4,370 5,509 6,685 State of Iowa % 71% 71% 71% School SCtss Tax % 14% 14% 14% Local Option Sales Tax % 14% 14% 14% Low Base High Tax Cattacttans (cont'd) Hoatl~MotaiTax Total hotel spending $774,375 $861,875 $949,375 Local Option Hotel/Motel Tax Rate 7.0% 7.0% 7.0% Corporate Tax State corporate tax collections (20001 $276,821,000 State Gross Product (2000) $90,942,000,000 Corporate Tax Rate 0.30% Low Base High Project O~,at $5,870,813 $7,418,377 $9,021,708 Construction Impacts Es6matad project costa $16,000,000 Percentage matedais 50% Percentage labor 50% Amount mata~als $9,000,000 Amount labor $9,000,000 Percentage spent in Dubuque Mate~ts 25% Labor 50% Amount spent in Dubuque Materials $22.50,0~0 Labor $4,500,000 Total $6,750,000 Gross Impacts Total ~utp~t 1.516616 $27,299,066 Empioymer~ 16.369865 295 Earnings 0.523990 $9,431,820 Local Impacta Total output 1.516616 $10,237,158 ~np]oyment 16.369865 87 Eamings 0.523990 $3,536,933 Construction Impacts (cont'd) Sales Taxes Direct taxable sales $2,250,000 Sales Tax Rate State of Iowa 5.0% School sales tax 1.0% Local opUon sales tax 1.0% Direct Sales Tax Collections State of Iowa $112,500 School sales tax 22,500 Local option sales tax 22,500 indirect spending $3,487,158 indirect tax rate 1.57% State of Iowa % 71% School sales tax % 14% Local op~on sales tax % 14% ~ndkect Sales Tax Collec~ons State of Iowa $38,994 Schcol sales tax 7,799 Local option sales tax 7,799 09/18/03 Page; 20 MEMORANDUM October 17, 2003 TO: FROM: SUBJECT: The Honorable Mayor and City Council Members Michael C. Van Milligen, City Manager Dubuque Initiatives - Minor League Professional Baseball in Dubuque Dubuque Initiatives President Katie Kdeg has provided the attached additional information for their presentation at the October 20, 2003 City Council meeting. Michael C. Van Milligen MCVM/jh Attachment cc: Barry Lindaht, Corporation Counsel Cindy Steinhauser, Assistant City Manager Jeanne Schneider, City Clerk Bill Baum, Economic Development Director SPORT+VENUE+EVENT October 17, 2003 Ms. Katie Kdeg President Dubuque Initiatives, Inc. 50 West 13th Street Dubuque, Iowa 52001 DUBUQUE MINOR LEAGUE BALLPARK STUDY Dear Ms. Krieg, HOK Sport + Venue + Event has prepared the enclosed cost summary for the preliminary planning and programming studies of the proposed new minor league ballpark in Dubuque, Iowa. The enclosed Project Budget Summary and Stadium Hard Construction Cost Summary documents are being provided for the purposes of quantifying the possible costs of the total project budget, and gaining an understanding of the overall balipark anticipated hard construction costs. As with the preliminary planning and programming documents provided earlier, please consider that this information is conceptual in nature and intended to aid in the understanding of the potential scope and opportunities possible with a new professional minor league ballpark at the Port of Dubuque. As before, we sincerely appreciate the opportunity to assist Dubuque Initiatives, Inc. in this endeavor and would be pleased to continue our assistance as the project moves forward to fruition. If I can be of any further assistance, please feel free to contact me at (816) 329-4256. Respectfully submitted, Martin DiNitto, AIA NCARB Associate Principal HOK Sport + Venue + Event cc: Bruce Miller File HOKSYE.COI~ KANSAS CITY 323 West 8t~ Street, Suite 700 Kansas City M~ssoud 64105 USA T +1 816 221 1500 F +1 816 221 LONDON 14 Blades Coud, Deodar Road London SW15 2NU United Kingdom T -~N [0}20 8874 7666 F ~ (0)20 8874 7470 BRISBANE Leve1240Ed~vard Stmet, POBox216AIbertStreet BfisitaneQLD4002Australia T+61 73210253BB-~61 732102540 PRELIMINARY HARD CONSTRUCTION COST SUMMARY FOR DUBUQUE, IOWA MINOR LEAGUE BALLPARK October 17, 2003 Building Component Building Area I Unit Value I Budget I Sub Total Site Demolition, Clearing Site Clearing, limited demolition, Miscellaneous Clubhouse Areas Foundations; deep foundation piers; access to dugouts under grandstand. Grade-level areas Roof Suite Level/Pressbox 10 Suites; Conditioned space Enclosed Lobby, Panty, Restrms; Conditioned space Balcony Seating, Covered Suite Walkway Press Box; Conditioned space Roof Seating Bowl Foundations; Deep foundation piers. Seatsi armchair seats with cupholders Precast Concrete Tread & Risers; on elevated steel frame, railings. Food Service and Retail Facilities Foundations; Deep foundation piers. Entry Level; Commissary Kitchen; Retial Store, Promo Storage Concourse Level; Concessions, Eating Areas Team Administration & Ticket Office Areas Foundations; Deep foundation piers. Entry Level; office areas Roof Main Concourse Restrooms, Fan Assistance, Security Concrete Slab; elevated structural slab 522,720 SF $0.50 $261,360 LS $5O,OOO 16,000 SF $10 $160,000 16,000 SF $125 $2,000,000 18,000 SF $10 $180,000 3,450 SF $100 $345,000 3,500 SF $100 $350,000 4,380 SF $100 $438,000 2,300 SF $100 $230,000 10,200 SF $15 $153,000 28,000 SF $10 $280,000 4,000 EA $100 $400,000 28,000 SF $8 $224,000 21,000 SF $10 $210,000 8,400 SF $100 $840,000 13,000 SF $125 $1,625,000 5,500 SF $10 $55,000 5,500 SF $100 $550,000 11,000 SF $15. $165,000 5,400 SF $80 $432,000 30,000 SF $6 $180,000 $311,360 $2,340,000 $1,516,000 $904,000 $2,675,000 $770,000 $612,000 Page PRELIMINARY HARD CONSTRUCTION COST SUMMARY FOR DUBUQUE, IOWA MINOR LEAGUE BALLPARK Entry Concourse & Security Fence Slab on Grade: Entry plaza, sidewalks, concourse. Perimeter Security Fence: 8' Painted atuminum picket fence. Vertical Transportation 1 Passenger elevator, 1 service elevator; @ 2,500# hydralic; cab finish; 3 stops. Interior stairs to all levels. Monumental Stair to Main Concourse Level Batting/Pitching Tunnels Batting/Pitching area under the grandstand: Slab, synth turf, netting. Berm Areas Outfield Berms, MSE retaining walls. Field Lighting Meeting Class A standards; 6-pole configuration, power supply. Playing Field Irrigation, Drainage, Turf, Clay Flag Poles, Foul Poles, Outfield Wall & Padding Sound System Distributed Sound System Maintenance Facilities Mantenance Office, Shop, Maintenance Yard Housekeeping areas, storage Outfield Concourse and Picnic Area Concrete Slab; elevated structural slab Landscape Plant and Furnishings Plant materials, benches, etc. Subtotal Anticipated Ballpark Hard Construction Costs 40,000 SF $6 $240,000 1,800 LF $75 $135,000 LS $150,000 LS $100,000 LS $75,000 1,250 SF $25 $31,250 15,000 SF $40 $600,000 LS $425,000 LS $450,000 LS $150,000 $320,000 25,000 LS LS LS SF $15 LS $300,000 $150~000 $375,OO0 $100,000 ' October 17, 2003 $375,000 $325,000 $31,250 $600,000 $425,000 $600,000 $320,000 $450,000 $375,000 $I00,000 $12,729,610 Page 2 PRELIMINARY HARD CONSTRUCTION COST SUMMARy October 17, 2003 FOR DUBUQUE, IOWA MINOR LEAGUE BALLPARK Miscellaneous Items Scoreboard with Message Panel (no video panel) Electronic scoreboard with video panel, structure, power supply. Subtotal Miscellaneous Items Subtotal Design Contingency A design contingency should be reserved during final design. Potential Total Hard Construction Costs LS $250,000 $250,000 $12,979,610 0% $0 $12,979,610 Optional Costs of Construction Not Included in Hard Costs Above The following is a listing of optional program elements that may be considered optional to the program, and design of the project. They have been included in this estimate of costs for the purpose of establishing a value and for futue consideration in the design. Video Panel for Scoreboard 12' x 24' LED panel LS $500,000 Suite Level Covered Party Decks Open Air Suite-level Struct w/Roof 6,600 SF $100 $160,000 Playground & Equipment Commonly purchased by sponsors or Parks & Rec Dept. LS $40,000 Parking Lot Commonly funded by City capital improvement budget. New paved parking areas, service drive, lighting; 700 spaces. 700 EA $1,800 $1,260,000 Restaurant 12,000 Square foot shell building area for restaurant; less food service equipment. 12,000 SF $60 $720,000 Notes: 1 Food service equipment and hook-up not included; to be provided by the the baseball team. 2 FF&E, costs of financing, design and engineering services, permits, survey, testing services, or costs for soil remediation not included. 3 Tenant to provide ali fixtures and equipment for the Retail Novelty Store. Page 3 PRELIMINARY PROJECT BUDGET SUMMARY FOR DUBUQUE, IOWA MINOR LEAGUE BALLPARK October 17, 2003 October 13, 2003 Funding Sources Public Funding TBD Private Funding TBD Other Contributions TBD Total Funds Available Project Soft Costs Land Costs $0 Environmental Testing/Reports $0 Property Survey's $0 Geotechnical Testing/Reports $0 Construction Testing/Reports $50,000 Architect/Engineer Fees/Expenses $1,086,599 Other Fees $0 Insurance Costs $0 Costs of Financing $150,000 Utility Connection Fees $0 Health Department Fee $0 Permit Fees $0 Lease Buy-out $0 Printing Bidding Documents $30,000 Cost of Owner-provided Equipment Contingency for Soft Costs $100,000 Subtotal Soft Costs Estimated Estimated; full-services Provided by Contractor Estimated Per the tease Recommended TBD $1,416,599 Project Hard Construction Costs Miscellaneous Hard Costs Construction Contingency (4.5%) Subtotal Hard Construction Costs From Estimate Line Scoreboard Recommended $12,758,360 $250,000 $574,126 $13,582,486 [ $14,999,085 ANTICIPATED TOTAL PROJECT DEVELOPMENT COSTS SPORT+VENUE+EVENT O~oberl7, 2003 Ms. Katie Krieg President DUBUQUE INITIATIVES, INC. 50 West 13th Street Dubuque, IA 52001 RE: DUBUQUE MINOR LEAGUE BALLPARK STUDY HOK No. 73-1120-27 Dear Ms. Krieg: HOK Sport + Venue + Event has completed the preliminary planning and programming studies of the proposed new minor league ballpark in Dubuque, Iowa. The enclosed report defines and illustrates the several weeks of discussions HOK has conducted with the prospective baseba~ll team, the City of Dubuque and Dubuque Initiatives, Inc. We believe the preliminary program, conceptual site and ballpark designs; and project development schedule, presented herein, best represent a new Class A professional baseball facility, which meets the wishes of the baseball team and the expectations of the Dubuque community, as expressed to us by all involved parties. Please consider the information as provided, which is conceptual in nature and should be a useful document in understanding the scope and opportunities possible with a new professional raider league ballpark at the Port of Dubuque. ._ We sincerely appreciate the opportunity to assist Dubuque Initiatives, Inc. in this endeavor and would be pleased to continue our assistance as the project moves forward to completion. If I can be of any further assistance, please feet free to contact me at (816) 329-4256. Respectfully, Associate Principal HOK Sport + Venue + Event HOKSVE.COM KANSAS CITY 323 West 8th Street, Suite ?00 Kansas City Missouri 64105 USA T +1 818 221 1500 F +1 816 221 1578 LONDON 14 Blades Court, Deodar Road London SW15 2NU United Kingdom T +44 (0)20 8874 7666 F +44 (0)20 8874 7470 BRISBANE Level 2 40 Edward Street, PO Box 216 Albert Street Brisbane OLD 4002 Australia T +61 7 ~2],0 25~0 F +61 7 3210 2540 TABLE OF CONTENTS PRELIMINARY SITE ANALYSIS AND PROPOSED BALLPARK ORIENTATION OPTIONS PRELIMINARY BALLPARK DESIGN SPECIFICATIONS AND PROGRAM 3. CONCEPTUAL DESIGN rLLUSTRATIONS PRELIMINARY PROJECT DEVELOPMENT SCHEDULE DUBUQUE, IOWA MINOR LEAGUE BALLPARK EXECUTIVE SUMMARY Dubuque Initiatives Inc. has retained HOK Sport Inc. to perform preliminary planning and conceptual design services for a new minor league ballpark in Dubuque, Iowa. It is anticipated that an existing affiliated minor league baseball franchise will be the tenant for the facility. The prospective team has been consulted extensively in developing the requirements contained herein. The conceptual design documents and preliminary budgeting are based on the requirements outlined in this document. Site The site considered for the new minor league ballpark is located on the Peninsula at the Port of Dubuque. The ballpark site is approximately 22 acres is size and is of adequate dimension to facilitate several ideal ball field orientation options, in consideration of sun angles and fan comfort, as illustrated in this report. It is easily accessible from 5th Street and Bell Street and is highly visible on the approach from downtown and from U.S. Highway 61, which passes the site via an overpass. The site is a former wood processing mill and in immediate proximity to the waterfront of the Mississippi River, thus it is anticipated that a diversity of soil types and with varying structural bearing capacities can be expected. In addition, the proximity of the site to the river will likely indicate a high water table elevation, thus these conditions will likely limit the types of foundations and depths of excavations of the ballpark design. Program The program, prepared by HOK, is compiled to meet the minimum requirements of the facility standards as required by the National Association of Professional Baseball Leagues Agreement (PBA). In addition, the program includes additional desirable elements that improve fan comfort and create additional revenue streams within the ballpark. The program also includes several optional elements that may be considered in the final design, depending on the availability of funds. Conceptual Design The conceptual ballpark design presented in this report is an initial approach to visualizing the program requirements and architectural planning of the program spaces. It is anticipated that the project will undergo a complete and proper design process, with input from the Owner and the tenant Team. It is essential that the design process also work to accomplish the very best in design while meeting the constraints of the project budget. Therefore, it is strongly encouraged that the design process implement regular and consistent cost review, at every phase of the design development. Project Schedule The ballpark is anticipated to be completed for Opening Day of the 2005 Midwest League season, in early April. The ballpark should be scheduled to be substantially complete and approved for occupancy by mid-March of 2005. The project schedule is dependent on several factors, most importantly, the authorization from the Dubuque City Council, to conduct a funding referendum initiative in late 2003. The ballpark is anticipated to require approximately 13 months of construction and 4 months for design and engineering. Although, it may be necessary to overlap the design and early construction processes in order to meet this schedule, it is the opinion of HOK that the project can be complete, pending a successful referendum, within the available time without extraordinary measures to deliver the design and complete the construction of the ballpark. HOK is pleased to present this report to Dubuque Initiative, Inc. and is available to answer questions and provide additional assistance in the understanding of the information contained within. PRELIMINARY SITE ANALYSIS AND PROPOSED BALLPARK ORIENTATION OPTIONS INTRODUCTION The proposed ballpark site is an approximately 22-acre parcel of property, under the control of the Dubuque Initiatives, in the area commonly known as The Port of Dubuque; east of Highway 61 to Bell Street and north of 5th Street to the railroad tracks. The site is of adequate dimension and size to facilitate a minor league ballpark with appropriate seating accommodations for approximately 5,500 fans, and the associated back-of-house support facilities required; which is anticipated to require approximately 10-12 acres. In addition, the site is large enough to also facilitate on-site parking of approximately 600-800 cars and, potentially, additional building pad sites for future development. The site is relatively level with the adjacent streets, and can be easily seen from the elevated roadway of Highway 61 above, and through the overpass as 5th Street looking east. The site is a former wood processing mill site, and considered to be relatively free of soil contaminants, as previously researched. The site is in close proximity of the waterfront at the Mississippi River, and thus is anticipated to have diverse soil types with varying soil bead:rig capacities, and likely to experience a high water table condition below grade, which may limit the depth of excavations and the types of foundation systems used for a ballpark development. The site can be accessed from 5~ Street, along the south boundary, and from Bell Street from the east boundary. A railroad right-of-way exists arcing along the northern boundary of the site. The railroad tracks are 3-4 feet in elevation above the general elevation of the site. SITE REQUIREMENTS A. Adequate access to and egress from the peripheral road system shall be provided. Easily understandable vehicular circulation and pedestrian movement systems shall be strongly delineated. These systems shall maximize flexibility, efficient movement and freedom of choice of stadium entrance. C. Appropriate graphics, safety control devices and equipment to aid vehicular and pedestrian movement shall be provided. D. All on-site storm drainage and on-site utilities shall be provided in accordance with applicable codes and ordinances. E. Pedestrian walkways, including grade-change elements and landscaping, are to meet required landscape ordinances. On-site parking of approximately 700 spaces for persons with disabilities team administration and player personnel will be provided. There is adequate existing parking inventory in the immediate area and in surface and structure parking facilities in the downtown area; all within a 1/2 ---mile walking distance from the ballpark. G. The playing field will be oriented to minimize the effects of the su on the field of play and for spectator viewing. Pedestrian plazas will be provided to allow for que lines to form at ticket windows and entry gates at a safe distance away from .vehicular traffic flow. Entry plazas may also serve as multi-purpose spaces for other community events. PLANNING DESIGN PRINIPALS HOK has studied the Master Plan design recently completed for the area and has considered many of the ideas expressed in that report in proposing several site design principals for the ballpark development: · Reinforce street edges with building massing. · Extend 3~ Street and 7"` Street to the levee's edge. · Develop open green space at the heart of the district- and accentuate open space at the front door. · Create a ~dlstrict gateway" at the Highway 61 overpass at 5"` Street and enforce the "parkway" atmosphere along Bell Street. · Make the dverfront "accessible". · Maintain and/or complement view corridors from the River Center to the courthouse dome downtown. · Establish a buffer of building mass and landscape materials between the railroad tracks along the north property boundary, and the potential development areas south of 5"' Street; PLANNING DIAGRAM HOK has prepared a planning diagram and site analysis of the proposed site. The planning diagram illustrates several features and opportunities of the site that are elements of the Master Plan recommendations and the stated planning ~rincipals: · Arrange building massing at the street to define the street edge, · Establish an open green space at the heart of the district, · Develop district gateways as entry portals to the Port district, · Preserve the view corridor from the River Center to the courthouse dome downtown, · Locate remote parking facilities within a half-mile walking distance from the ballpark site - the ma~ximum distance parking can be considered convenient to the ballpark site. Reference the Planning Diagram on the next page. BALLPARK ORIENTATION Proper orientation of the ballpark is critical in consideration of sun angles for playing baseball and for fan comfort, as well. In the northern latitudes of North America, four pdmary ball field orientations are considered ideal, for playing a typical minor league baseball schedule; from the first week in April to the Labor Day weekend, and for games typically played weekday and Saturday evenings between the hours of 7 PM and 9:30 PM and on a few Sunday afternoons beginning at 2:00 PM in the afternoon. The Iow sun angles of the early evening hours can be difficult for players - especially batsmen, pitchers and catchers ~ and can also cause discomfort for fans who may be subject to intense sunshine and glare while watching the game from their seats for more than an hour; until the sunset, and the game progress into twilight. The four primary ball field orientations that should be considered for the Dubuque location are as follows: (home plate to center field; in order of preference) A. East- Northeast B. Due East C. East- Southeast D. and Due North As stated earlier, the ballpark site is of adequate size and dimension and all four orientations are possible. In addition, it should be noted, that the existing street grid of the Port area is oriented east of north, approximately 30 degrees, relative to the downtown street grid. Views from the ballpark to the immediate surrounding areas and new developments are also strong influences in the decision of which orientation is best for the ballpark. The proposed site is bounded by heavy and tall industrial structures to the north; an historic civil war-era shot tower and brick masonry brewery building and the contemporary architecture of the new Grand River Center to the east; and the Grand Harbor hotel and waterpark to the southeast. A high roadway embankment and concrete retaining wall of US Highway 61 limit views of downtown building structures to the west. The site, having adequate depth dimension, provides the opportunity to fine-tune the orientation of the ballpark and to incorporate views of many of the amhitectural elements surrounding the site, while assuring the proper sun angles for baseball and viewing comfort for the fan. Orientation OPTION 1 Orientation Option 1 places the ballpark on the eastern half of the site and the ball field in a northeast orientation. Good sun angles for players as well as fans with views focusing on the industrial structures to the north can be expected. Massing of the ballpark brackets the site along 5~ and Bell Streets. Reference Orientation Option I on the next page. Orientation OPTION 2 Orientation Option 2 places the ballpark on the eastem half of the site and the ball field in an east orientation. Better sun angles for players as well as fans with views still focusing on the industrial structures to the north, but also including the histodc shot tower and brewery can be expected. Massing of the ballpark fronts 5th Street and an optional future development pad site is reserved for frontage along Bell Street. Reference Orientation Option 2 on the next page. Orientation OPTION 3 Orientation Option 3 places the ballpark on the eastern half of the site and the ball field in an east-southeast orientation. Better sun angles for players as well as fans with views now bracketed between the histodc shot tower and brewery and the newer buildings of the River Center and Grand River Hotel. Massing of the ballpark is set back from 5th Street and is used to frame an entry plaza on axis with approaching vehicular and pedestrian traffic from the downtown parking areas. An optional future development pad site is reserved for frontage along Bell Street and a circular green space is replicated from the River Center development to help establish a "heart of the district". Reference Orientation Option 3 on the next page. Orientation OPTION 4 Orientation Option 4 places the ballpark on the eastern half of the site and the bali field in a southeast orientation. Sun angles are good for players but likely difficult for fans seated on the third base-side seating areas. Views of the industrial structures histodc shot tower are completely screened from view, as the brewery and newer buildings of the River Center and Grand River Hotel are visible. Massing of the ballpark is fronted on 5th Street with limited views of the ballpark from the street. An optional future development pad site is reserved for frontage along Bell Street. A rectangular green space is placed west of Bell Street and positioned to divert traffic flow onto Bell Street, rather than to the cul- de-sac at the waterfront. Reference Orientation Option 4 on the next page. Orientation OPTION 5 Orientation Option 5 places the ballpark on the western half of the site and the ball field in a southeast orientation. Sun angles are good for players but likely difficult for fans seated on the third base-side grass berm areas. Views of the industrial structures are mostly screened from view, however the views are bracketed between the shot tower (oriented along the left foul line) and the newer buildings of the River Center and Grand River Hotel. Massing of the ballpark is fronted on 5th Street with limited views of the ballpark from the street. An optional future development pad site, considerably larger, is reserved for frontage along Bell Street and a circular green space is replicated from the River Center development as presented in Option 3. Reference Orientation Option 5 on the next page. Orientation OPTION 6A Orientation Option 6A is a refinement of Option 2, which places the ballpark on the eastern half of the site and utilizes a northeast ball field orientation. Sun angles are good for players and fans alike. The industrial structures to the north of the site are very much in view, with the historic shot tower, brewery, and the River Center in view as well. Massing of the ballpark has been reconfigured to front 5th Street with an entry plaza, on axis with approaching vehicular and pedestrian traffic from the downtown parking areas, defining the site entry. An optional future development pad site, is reserved for frontage along Bell Street and a circular green space is replicated from the River Center development as presented in earlier options. Reference Orientation Option 6A on the next page. Orientation OPTION 6B Orientation Option 6B is a refinement of Option 3, which places the ballpark on the eastern half of the site and utilizes an east ball field orientation. Sun angles are better for players and fans alike. Views of the industrial structures are very much in view, with the historic shot tower, brewery, and the River Center in view as well. Massing of the ballpark has been reconfigured to front 5~h Street with an entry plaza, on axis with approaching vehicular and pedestrian traffic from the downtown parking areas, defining the site entry. An optional future development ~ad site, is reserved for frontage along Bell Street and a circular green space is replicated from the River Center development as presented in eadier options. Reference Orientation Option 6B on the next page. Orientation OPTION 6C Orientation Option 6C places the ballpark on the western half of the site, similar to Option 5, and utilizes the east ball field orientation. Sun angles are better for players and fans alike. Views of the industrial structures are mostly screened from view, with the historic shot tower, brewery, and the newer buildings of the River Center and Grand River Hotel in primary view. Massing of the ballpark is fronted on 5th Street with an entry plaza, on axis with approaching vehicular and pedestrian traffic from the downtown parking areas. Parking is maximized on the western and eastern-most sides of the site, with the potential for future development, displacing some of the eastern parking area, with frontage along Bell Street and a circular green space is replicated from the River Center development as presented in eadier options. Reference Orientation Option 6C on the next page, PRELIMINARY BALLPARK DESIGN SPECIFICATIONS FOR DUBUQUE, IOWA MINOR LEAGUE BALLPARK INTRODUCTION Dubuque Initiatives Inc. has retained HOK Sport Inc. to perform preliminary planning and conceptual design services for a new minor league ballpark in Dubuque, Iowa; It is anticipated that an existing affiliated minor league baseball franchise will be the tenant for the facility. The prospective team has been consulted extensively in developing the requirements contained herein. The conceptual design documents and preliminary budgeting are based on the requirements outlined in this document. One of the goals of the project is to provide the City of Dubuque a unique family entertainment venue that will augment the recently-constructed America's River development, which includes the Grand River Center, the Grand Harbor Resort I~ and Waterpark, the River's Edge Plaza .and Riverwalk, and the National l~ Mississippi River MuseUm and Aquarium. The ballpark would not only provide a I~ home for a professional minor league baseball team, but would also serve as a ~ venue for many other outdoor events, such as concerts and festivals. II The ballpark development is envisioned as a catalyst to promote the further implementation of the Port of Dubuque Master Plan. DESIGN NARRATIVE The attached proposed ballpark plans illustrate the conceptual design, as per the following program description. The conceptual design depicts an above-grade stadium concept, ~vhich will build the playing field at street-level elevation, and construct the ballpark with three levels: An Entry Plaza level, a Main Concourse level, and a Suite/Press Box level. Entry Plaza Level The entry plaza level will serve as the main entry to the ballpark from the adjoining sidewalks. The entry plaza will contain a large open space for pre- and post-game gathering outside the main entry gates, and provide access to the ticket office windows. The main entry gates will provide turnstile entries into a courtyard, leading to a monumental stair and elevator to all levels of the ballpark. The courtyard will also provide access to the novelty retail store, the team administrative offices, and the stepped dining terraces for specially scheduled groups. Access can also be provided from the courtyard to the proposed restaurant. Food service concession carts can also be provided in the courtyard. Also on the Entry Plaza level are the team and game official clubhouses, the batting and pitching tunnel, food service operations, and service entrances. Main Concourse Level The Main Concourse level provides access to all seating areas within the ballpark, concessions, restrooms, and, potentially, a second level of the aroposed restaurant. The concourse is intended to provide a continuous walkway to the outfield areas as well, accessing the grass seating berm and other large group areas. Concession carts are intended to line the concourse and provide additional food service to the ballpark. The main concourse is covered by the suite/press box level above. Suite/Press Box Level The Suite/Press Box level is elevated above the main concourse level and includes 10 suites, a suite lobby, restrooms, a food service pantry and warming kitchen, and the press box areas. The suite lobby is an enclosed and conditioned space from the elevator and stair, and leads to a covered open-air corridor accessing the suites and, potentially the party decks at the both ends of the suite level. The suites consist of 8 corporate suites and 2 nightly rental suites, each with 8 covered outdoor seats and sliding glass fronts towards the playing field. The proposed party decks provide covered open-air large group party areas and each contain a stair to the main concourse level to access restrooms. Seating Bowl The seating bowl is an elevated structure providing fixed armchair seating for the ballpark. The first row of the seating bowl is approximately field level, with the back row and main concourse level approximately 16 feet above the entry plaza level. Outfield Concourse The outfield concourse can be configured with a variety of fan amenities for viewing the game; grass seating berm, structured elevated walkway - or boardwalk - and with large group picnic and playground areas. A grass seating berm would be constructed as a Iow-slope mount from the back of an outfield retaining wall system. A concrete sidewalk at the top of the mound would connect to the main concourse and provide a continuous walkway around the ballpark. A structured elevated walkway may be an alternative that can be constructed in conjunction with the grass seating berm to provide access around the ballpark, as well. Restaurant Option A two-level restaurant can be constructed that will provide dining facilities at the entry plaza level - accessible from outside the ballpark at 5t~ Street - and the main concourse level with views to the playing field. PRELIMINARY BALLPARK DESIGN SPECIFICATIONS -'OR DUBUQUE, IOWA MINOR LEAGUE BALLPARK INTRODUCTION Dubuque Initiatives Inc. has retained HOK Sport Inc. to perform preliminary planning and conceptual design services for a new minor league ballpark in Dubuque, Iowa. It is anticipated that an existing affiliated minor league baseball franchise will be the tenant for the facility. The prospective team has been consulted extensively in developing the requirements contained herein. The conceptual design documents and preliminary budgeting are based on the requirements outlined in this document. One of the goals of the project is to provide the City of Dubuque a unique family entertainment venue that will augment the recently-constructed America's River development, which includes the Grand River Center, the Grand Harbor Resort and Waterpark, the River's Edge Plaza and Riverwalk, and the National Mississippi River Museum and Aquarium. The ballpark would not only provide a home for a professional minor league baseball team, but would also serve as a venue for many other outdoor events, such as concerts and festivals. The ballpark development is envisioned as a catalyst to promote the further implementation of the Port of Dubuque Master Plan. DESIGN NARRATIVE The attached proposed ballpark plans illustrate the conceptual design, as per the following program description. The conceptual design depicts an above-grade stadium concept, which will build the playing field at street-level elevation, and construct the ballpark with three levels: An Entry Plaza level, a Main Concourse level, and a Suite/Press Box level. Entry Plaza Level The entry plaza level will serve as the main entry to the ballpark from the adjoining sidewalks. The entry plaza will contain a large open space for pre- and post-game gathering outside the main entry gates, and provide access to the ticket office windows. The main entry gates will provide turnstile entries into a courtyard, leading to a monumental stair and elevator to all levels of the ballpark. The courtyard will also provide access to the novelty retail store, the team administrative offices, and the stepped dining terraces for specially scheduled groups. Access can also be provided from the courtyard to the proposed restaurant. Food service concession carts can also be provided in the courtyard. Also on the Entry Plaza level are the team and game official clubhouses, the batting and pitching tunnel, food service operations, and service entrances. Main Concourse Level The Main Concourse level provides access to all seating areas within the ballpark, concessions, restrooms, and, potentially, a second level of the proposed restaurant. The concourse is intended to provide a continuous walkway to the outfield areas as well, accessing the grass seating berm and other large group areas. Concession carts are intended to line the concourse and provide additional food service to the ballpark. The main concourse is covered by the suite/press box level above. Suite/Press Box Level The Suite/Press Box level is elevated above the main concourse level and includes 10 sUites, a suite lobby, restrooms, a food service pantry and warming kitchen, and the press box areas. The suite lobby is an enclosed and conditioned space from the elevator and stair, and leads to a covered open-air corridor accessing the suites and, potentially the party decks at the both ends of the suite level. The suites consist of 8 corporate suites and 2 nightly rental suites, each with 8 covered outdoor seats and sliding glass fronts towards the playing field. The proposed party decks provide covered open-air large group party areas and each contain a stair to the main concourse level to access restrooms. Seating Bowl The seating bowl is an elevated structure providing fixed armchair seating for the ballpark. The first row of the seating bowl is approximately field level, with the back row and main concourse level approximately 16 feet above the entry plaza level. Outfield Concourse The outfield concourse can be configured with a variety of fan amenities for viewing the game; grass seating berm, structured elevated walkway- or boardwalk - and with large group picnic and playground areas. A grass seating berm would be constructed as a Iow-slope mount from the back of an outfield retaining wall system. A concrete sidewalk at the top of the mound would connect to the main concourse and provide a continuous walkway around the ballpark. A structured elevated walkway may be an alternative that can be constructed in conjunction with the grass seating berm to provide access around the ballpark, as well. Restaurant Option A two-level restaurant can be constructed that will provide dining facilities at the entry plaza level - accessible from outside the ballpark at 5t~ Street - and the main concourse level with views to the playing field. MINOR LEAGUE BALLPARK 1. GENERAL DESCRIPTION This preliminary program shall outline the general requirements of the design and construction of a new ballpark to be located in Dubuque, Iowa. The ballpark is intended to be the home of an affiliated professional minor league baseball club of the Midwest League. The design of this facility shall meet the requirements of all codes and ordinances applicable to the property, the standards as mandated by the Americans with Disabilities Act (ADA), and shall meet the requirements and recommendations as set forth in Attachment 58 Facility Standards, for Class A baseball facilities, of the Professional Baseball Agreement (PBA) as administered by the National Association of Professional Baseball Leagues, The ballpark shall be designed with a capacity for 5,500 spectators comprised of a combination of seating type options, and have the ability to be expanded to meet future seating requirements or changes in amenities. The ballpark shall include approximately 4,000 fixed seats and accommodate approximately 1,500 spectators on grass berms, or other ancillary seating structures such as an elevated platform deck, placed around the outfield areas. The seating shall be as close to the action on the playing field as practical and be configured to the desirable locations for viewing baseball games. Sightlines shall meet industry standards for viewing baseball, without obstructions from building structural elements. In addition, it is anticipated that the ballpark will include 10 private suites on an elevated level above a main circulation concourse. SPECTATOR FACILITIES Seating Fixed Seating - Main Concourse: Approximately 4,000 fixed seating spaces shall be provided in three seat pricing levels and accessible from the main concourse level as follows: 1. Box seating sections (approximately 1,000 seats) located behind home plate and between the dugouts, with approximately 22" wide armchair seats with cupholders on 36" deep treads. 2. Reserve seating sections (approximately 1,356 seats) located behind behind the dugouts, with 21" wide armchair seats with cupholders on 36" deep treads. 3. General Admission seating (approximately 1,000 seats) located beyond the dugouts, with 21" wide armchair seats with cupholders on 36" deep treads. In addition to the 3 primary seating areas, fixed seats shall be provided in picnic areas (approximately 484 seats) utilizing fixed picnic tables with benches. Wheelchair seating will be provided in accordance with the requirements of the Americans with Disabilities Act (ADA). Wheelchair seating for a minimum 1% of the total seating capacity plus one space shall be provided in all seat pricing sections for the use of wheelchair patrons. These seats are included in the approximate seat count numbers above. The minimum sightline clearance for all fixed seating, in fixed rows, shall be 2-1/4" above the eye level of the spectator in the preceding row. Suite Seating - Upper Level In addition to the main concourse seating, 8 corporate suites and 2 nightly rental party suites shall be provided. Each corporate suite shall have a minimum of 8 fixed seats; 22" wide armchair seat with cupholder. The party suites shall have a minimum of 16 fixed seats; 22" wide armchair seat with cupholder. Two seats at each corporate suite and four seats at each party suite shall be removable to provide seating for a wheelchair patron. The suites shall include base standard finishes consisting of carpet, wall base, painted walls, casework including a bar sink, general lighting, and connection to the in-house stadium public address and sound system. Furnishings and additional upgrades to the suite finishes shall be at the suite tenant's expense. Party Decks - Upper Level Budget permitting, two Party decks may be provided, one at each end of the upper level, to provide space for group parties of approximately 24 - 100 people. Each party deck shall have a minimum of 16 fixed armchair seats, each 22" wide with cupholder and picnic tables and benches and/or high bar tables and chairs. Wheelchair positions shall be defined, with sightlines to the playing field, in each party deck area. The party decks shall be covered with an extension of the upper level roof, and shall be planned for the future build-out of approximately 10 additional suites. B. Public Toilet Facilities Toilet facilities shall be provided for and appropriately distributed on the main concourse and suite level for men and women. The public toilet facilities shall be sized in accordance with the local building and plumbing codes to assure adequate accommodations for the fixed seating capacity. The ratio of spectators to fixture count shall be based on 50% male and 50% female attendance. The ratios used to calculate the number of women's water closets and men's urinals required are based on similar professional baseball facilities. A variance may be required to adapt these ratios to local code requirements. In addition to the public restroom facilities as outlined below, two family toilet rooms shall be provided; each with a single water closet, lavatory, and diaper changing station shall be provided in convenient locations around the stadium. Toilet fixture count for the Main Concourse Seating areas: Fixture T~3e Ratio Number Reauired Lavatories 1 per 150 men 12 1 per 150 women 12 Water Closets 1 per 400 men 6 1 per 75 women ~ 26 Urinals 1 per 125 men 16 Drinking Fountains 1 per 1500 patrons 4 Toilet fixture count for the Upper Level Seating areas: Fixtt~re Type Ratio Number Required Lavatories 1 per 150 men 4 1 per 150 women 4 Water Closets 1 per 400 men 2 1 per 75 women 4 Urinals 1 per 125 men 4 Individual urinals shall be provided in the men's restroom. Urinal screens shall be provided if required by the building code requirements. Toilet rooms shall utilize wash 4-gang fountains with constant temperature electronic valves and soap dispensers, and be provided with stainless steel framed mirrors, toilet compartments with purse shelves, garment hook, and sanitary napkin disposal bins and grab bars (where required), and electron flush valve toilets. Toilet accessory items such as surface-mounted paper towel and toilet paper dispensers, sanitary napkin dispenser units, are anticipated to be provided by the Tenant. All toilet rooms shall be provided with a wall-mounted baby changing station and be equipped with cold and hot water services general lighting, unit heating, and exhaust. Plumbing systems and fixtures shall be cold-weather designed and protected. Air conditioning of the public restrooms is not anticipated. C. Food Service and Concession Facilities Concession facilities shall be easily accessible and provided adequate accommodations for the delivery of a diverse food menu to a variety of fan areas within the ballpark. Concession facilities are anticipated to consist of fixed concession stands, portable concession carts, and the main food preparation commissary and pantry as defined later in this report. Fixed Concession Stands Fixed concession stands shall provide a specialty menu of easily prepared and/or pre-cooked food items such as hot dogs and sausages, hamburgers, nacho chips, and popcorn in addition to soft drinks and beer. Fixed concession stands may also offer other pre-packaged food items such as candy, peanuts, and frozen treats. Space shall be provided for storage of food supplies and food warming separated from the food serving area. Concession stand serving areas shall be designed to accommodate the preparation of all menu items within each stand. Each point of sale shall be provided 5 lineal feet of front counter space. Based upon a ration of 1 point of sale for each 250 spectators (based on the fixed seat count), 22 points of sale are anticipated for the ballpark, serving the Box, Reserve, and General Admission seating areas. The following is a general description of the anticipated concession facilities requirements: Each concession stand shall be provided with the following: a. Cold and hot water supply. b. Janitor's mop sink. c. Hand washing sink and sink accessories. d. Floor drains and floor sinks, as required by the food service equipment layout. e. Electrical service and distribution panel, as required by the food service equipment layout. f. Heating unit and ventilation only; air conditioning is not anticipated. g. Accommodations for walk-in cooler(s) in the back of each concession stand. h. Stainless steel front counter. i. Overhead coiling door or counter shutter; with chain or crank operation. j. Standard room fire alarm and sprinkler system (not including the oven or range hood fire suppression system). The following items are not included in the base build-out of the project but are anticipated to be provided by the Tenant: a. Equipment such as cookers, warmers, beverage storage, freezers, coolers, plumbing fixtures (other than the handwashing and mop sink) within the concession stand, and fit-out of all equipment. Note: Fit-out of the food service equipment includes all design and installation work associated with utility service distribution (from utility stub outs and distribution electrical panel. hook-up, placement, and operation of food service equipment. b. Exhaust hoods and ducting, and cook area fire suppression system. c. Concession menu graphics. Concession Carts Concession carts are anticipated to provide food service and novelty sales items at specific locations throughout the ballpark and in the ancillary areas such as the main entry plaza, and outfield concourse areas. Concession carts are portable fixtures, anticipated to be provided by the Tenant, and may require water service and electrical utility hook-up, which shall be provided at 15 specific locations throughout the ballpark; depending on the specific requirements of each concession cart. The quantity of concession carts and the area requirement for storage of concession carts shall be provided by the Tenant during the design phase of this project. Commissary Kitchen & Pantry A commissary for the delivery of food and beverage items shall be provided adjacent to the loading area. The commissary shall serve as a staging area for food and beverage items, and provide for the long term storage area for concession operations. The commissary shall be provided with an office area for concession operations personnel. Vendor's Commissary Area for the operation of vendors shall be provided on the main concourse with easy access to the concourse and seating areas throughout the ballpark. The vendor's commissary shall be used for food handling, storage, and the servicing of food hawkers during the operation of events in the ballpark. 1. The d. e. f. g. vendor's commissary shall be provided with the following: Cold and hot water supply. Janitor's mop sink. Hand washing sink and sink accessories. Floor drains and floor sinks, as required by the food service equipment layout. h. Electrical service and distribution panel, as required by the food service equipment layout. i. Heating unit and ventilation only; air conditioning is not anticipated. Accommodations for walk-in cooler(s) in the back of each concession stand. k. Standard room fire alarm and sprinkler system (not including the oven or range hood fire suppression system). The following items are not included in the base build-out of the project but are anticipated to be provided by the Tenant: a. Equipment such as cookers, warmers, beverage storage, freezers, coolers, plumbing fixtures (other than the hand washing and mop sink) within the concession stand, and fit-out of all equipment. Note: Fit-out of the food service equipment includes ail design and installation work associated with utility service distribution (from utility stub outs and distribution electrical panel. hook-up, placement, and operation of food service equipment. b. Exhaust hoods and ducting, and cook area fire suppression system. c. Other equipment may be required to provide a workable operation to the specific vendor type. D. Novelty Retail Store The ballpark shall provide a main novelty retail store for the sale of team- related merchandise. The novelty store shall be accessible from inside the ballpark security fence during the ballgame and also be accessible from outside the security fence on non-game days, during business hours, for the sale of merchandise as a year-round operation of the Tenant. The ballpark shall provide a shell space for the retail store as it is anticipated the Tenant will provide finishes, fixtures, and store-related equipment. The shell space shall be provided with finished interior walls, sealed concrete floors, HVAC service, general lighting, and be connected to the building fire alarm and sprinkler systems, and to the house broadcast sound system. Concession carts shall be utilized to provide team merchandise sales on the main concourse of the ballpark. Merchandise concession carts are anticipated to be provided by the Tenant. E. Public Telephones 2 Public telephones shall be provided in the base build-out of the ballpark. Conduit for public telephones shall be provided, only - with the telephone equipment, installation, and wiring being provided by the Tenant, under a service agreement between the Tenant and the telecommunications company. F. Team Administration and Ticket Offices Team Administrative Offices The ballpark shall provide adequate office areas for on-site team administrative functions, including offices for the general manager and support personnel, advertising and sales staff and interns associated to the Tenant operations. The administrative offices shall serve as the year-round base of operations for the baseball franchise and the "front door" for visitors to the ballpark site. The administrative office area shall be provide with restrooms, a mail room, a kitchen/break area, housekeeping and storage facilities, telecommunications and connection to the in-house sound system, and HVAC service for year- round operations. The administrative office areas should be adjacent to the novelty retail store and the ticket office. Ticket Office The ballpark shall contain a ticket office and bank of ticket windows. The ticket office shall be located adjacent to the administrative offices and/or the novelty retail store, with direct access from the sidewalk and the street-level entry plaza. 6 Ticket windows in total are anticipated; consisting of general walk-up ticket sales, will-call, and advance ticket sales for future games and events. The advance ticket window may be oriented to face the entry plaza, interior to the ballpark security fence. Each ticket window shall be designed to meet the requirements of the ADA, and be provided with a stainless steel counter with pass-thru recess, insulated tempered glass, electronic speaker, and signage graphics. In addition, counters, casework with cash/ticket drawers, general lighting, HVAC service, and fire alarm and sprinkler protection system shall be provided. The ticket office shall provide office space, as defined by the program. However, the safe is anticipated to be provided by the Tenant. G. First Aid/Security Area Within the ballpark shall be provided an area sufficient in size to accommodate the function of a first aid station and security office. The first aid station shall provide area for a gurney, casework including a service sink and, floor drain, and a separate toilet room. The security office shall serve as the command post for on-site security operations. The security office and first aid station may be combined into one room, with a cubical curtain provide for privacy at the gurney area. H. Drinking Fountains Drinking fountains, per the toilet fixture count above, shall be provided in the ballpark. Non-refrigerated drinking fountains with accessible fixtures, shall be provided on the main concourse and suite level walkway. Refrigerated drinking fountains shall be provided at the team administrative res[rooms, within the team clubhouses, in the dugouts, and in the press box area. I. Sound and Closed Circuit'rv System A distributed sound system shall be provided within the ballpark, with service to all seating sections, team clubhouses, team administrative areas, ticket office, main entry plaza, party decks, and suites. The system shall include assisted listening devices as required by the ADA, and shall also provide event announcing, paging, music, and in-stadium broadcasting. A closed circuit TV systems shall also be provided extending cable television and game broadcasts services to select areas in the ballpark, such as the press box, suites, team administrative offices, ticket office, and player clubhouses. J. Stadium Graphics Stadium graphics shall be provide within the ballpark as follows: 1. Identification of stadium entrances, including ticket windows, turnstiles, and special entrances. 2. Signage within the stadium to indicate concourse levels, seating sections, rows, and seat numbers. 3. Identification of restrooms, first aid, security, exits, and other public facilities. 4. Entry plaza information panels and marquee signage. K. Advertising Signage Advertising signage is anticipated to be provided by the Tenant, and shall consist of signage design, signage fixtures, and installation at specific locations throughout the ballpark. Electrical service shall be provide to on- concourse signage fixtures as required. Advertising signage is anticipate in the ballpark at the following locations: 1. On freestanding structures in the street-level entry plaza. 2. On the field-facing walls of the main concourse. 3. On the outfield wall pads. 4. On the scoreboard structure. L. General Lighting Adequate general lighting shall be provided throughout the ballpark for concourse, stairs, office and team areas, storage areas, food service and maintenance areas, portals, etc. In addition, the ballpark shall provide housekeeping light fixtures on the field lighting poles for after-game maintenance to avoid use of the field lighting system during nighttime maintenance. M, Field Lighting A 6-pole field lighting system shall be provided with adequate illumination of the playing field areas in accordance to the illumination standards as defined by Attachment 58 Facility Standards of the PBA for Class A baseball facilities. Illumination levels shall me the basic requirements of providing a minimum of 70 footcandles on the infield and 50 footcandles on the outfield; in addition to specific ratios as dictated by the facility standard. In addition, the field lighting system shall be designed to allow for a degradation of the field lighting illumination levels over a 3-year period. Thus the lighting system design shall be designed to a include a factor of safety that will allow the lighting levels to degrade to the stated minimum illumination (70 fc/50fc) levels over a 3-year period. The lighting system shall operate with a maximum variance ratio of 1.2/1 in the infield and 2/1 in the outfield. The field lighting system shall be provided with a few fixtures on each lighting rack on the emergency lighting system with a hot re-strike capability for illumination during power outages. Two of the 6 field lighting poles shall be designed for extra strength in support of the backstop netting cable. See 7. Playing Field Facilities; F. Backstop Netting and Support Cable. Each field lighting poles mounted on a pedestrian-accessible sidewalk, plaza, or concourse shall be provided with a recessed foundation and utilize a tree grate, flush with the sidewalk surface, to avoid trip hazard. N. EleCtrical Service Electrical service shall be provided throughout the ballpark and at special services areas, such as food service areas and equipment, concession cart locations, the entry plaza and marquee sign, scoreboard/videoboard, field lighting system, maintenance areas, parking areas, and the sound system. Multiple electrical transformers might be utilized for better electrical service distribution in association with multiple electrical metering and switchgear for specific and/or separate electrical uses. P. ATM Machine Space shall be provided within the ballpark, near the main entry plaza, for a Tenant-provided automatic teller machine. Q. Upper Level Patron Amenities Suite patrons on the upper level of the ballpark shall utilize public restroom facilities centrally located to the floor plan. A food service pantry shall be provided on the upper level for the final preparation of food items being catered to the corporate and party suites, the party decks, and the press box. Access to the upper level shall be controlled by the Tenant and restricted to use by the suite patrons, the media, and the party deck patrons. Corporate and party suite patrons, the media, and handicapped shall be allowed to use the central passenger elevator and stair, while party deck patrons will be required to utilize the monumental stairs at the exterior of each of the party decks. 3. PRESS FACILITIES A. Press Box The press box shall accommodate the news media and be appropriately located and oriented in the stadium with unobstructed views to the playing field, scoreboard, and videoboard. The press box shall be provided with a segregated entrance from the main public entry and shall utilize the restricted access elevator and central stair (shared by the suite level patrons). The press box shall be provided with HVAC systems; connection to the in- house sound and closed circuit TV system; operable windows with minimal mullion obstructions and glazing area as wide as practicable; and interior windows between the broadoast areas. 1. Working Press Area Work surface for approximately 8 print media writers with at least 30" of counter area each and access to a continuous electrical power strip, shall be provided. 2. T.V. Broadcasting Booth A television broadcasting booth shall be with built in counter and special acoustical wall covering. The T.V. broadcasting booth shall be immediately adjacent to the press box-level camera bay, with an operable interior window between. 3. Camera Bay A camera bay shall be located immediately adjacent to the T.V. broadcasting booth. The camera bay shall have an operable window that will not obstruct views from the camera position. 4. Workarea and Cabinet Storage A workarea with continuous countertop and wall cabinets shall be provided in the back half of the press box area for fax machines, media release information and shall serve as a food service layout area. 5. Radio Broadcasting Booths Two broadcasting booths with built-in counters and acoustical wall coverings shall be provided. The broadcasting booths shall be sized to accommodate 3 broadcast personnel each. 6. Scoreboard OperatodPublic Address/Sound System Announcer Space shall be provided in a room immediately adjacent to the press area for the scoreboard, videoboard, and public address and sound system operators. The area shall be provided with a continuous worksurface counter, views to the playing field, and be visible from adjacent press areas via interior operable windows. The area shall be sized for 3 operators and the associated control and production equipment, as specified by the score/video board manufacturer. All wiring, controls panels, and operational equipment shall be provided by the score/video board manufacturer. Conduits, cable trays, and electrical power shall be provided with conduits extending to a pullbox in the field wall directly behind home plate and continuing to a buried pullbox behind home plate. Two additional bank of conduits shall be provided running in a direct route from the press box to the scoreboard location, and from the press box to the television truck parking locations. 7. Press Box Restroom A single uni-sex restroom shall be provided within the press box area, for the exclusive use of the press box personnel. 4. Vertical Transportation and Stairs A. Passenger Elevator A passenger elevator shall be provided giving access to all levels of the ballpark from the entry plaza. The passenger elevator shall be primarily used by suite patrons and media personnel, and others requiring wheelchair or handicapped access to the main concourse and suite/press box levels. The passenger elevator shall be hydraulically operated and have a finished cab. An elevator equipment room shall be provided immediately adjacent to the elevator tower at the lowest level. B. Service Elevator A service elevator shall be provided giving access to all levels of the ballpark from the main service level. The service elevator shall be primarily used for delivering portable food service equipment to the main concourse and suite levels from the kitchen/commissary areas. The service elevator shall be hydraulically operated and have a utilitarian cab. An elevator equipment room shall be provided immediately adjacent to the elevator tower at the lowest level. C. Monumental Concourse Stair An open-air monumental stair shall provide access from the entry plaza to the main concourse level. D. Enclosed Exit Stairs Enclosed exit stairs shall provide access and egress from all levels of the ballpark and shall be placed in accordance with the exiting and fire protection plan. 5. CLUBHOUSE FACILITIES Clubhouses shall be provided HVAC, spikeproof carpeting, and general lighting. A. Home Team Clubhouse Player A. B. C. Locker Room 25 Active players 28 Metal lockers @ 30" w. x 72" h. x 24" d. 2 Metal lockers @ 36" w. x 72" h. x 24" d. Player Shower/Toilet area A. 10 Shower heads; including 1 handicapped stall B. 2 Water Closets C. 2 Urinals D. 4 Lavatories Coaches Locker Room A. 4 Metal lockers @ 30" x 72" h. x 24" d. B. 1 Shower unit; handicapped accessible. C. 1 Water Closet D. 1 Lavatories Manager's Office/Locker Room A. Office area for the manager. B. 1 Metal locker @ 30" x 72" h. x 24" d. C. 1 Shower unit; handicapped accessible. D. 1 Water Closet E. 1 Lavatory 5. Equipment Room A. Storage for baseball equipment, uniforms. 6. Laundry A. Commercial washer and dryer equipment. Training Room A. 2 Taping benches B. Whirlpool wet area C. Casework and service sink D. Window to Trainer's Office Trainer's Office A. Work area for the Trainer B. Window to Training Room 9. Weight Room 10. Storage Room A. Storage for miscellaneous supplies. B. Visiting Team Clubhouse Player Locker Room A. 25 Active players B. 28 Metal lockers @ 30" w. x 72" h. x 24" d. C. 2 Metal lockers @ 36" w. x 72" h. x 24" d. Player Shower/Toilet area A. 10 Shower heads; including 1 handicapped stall B. 2 Water Closets C. 2 Urinals D. 4 Lavatories ManagedCoaches Locker Room A. 5 Metal lockers @ 30" x 72" h. x 24" d. B. 1 Shower unit; handicapped accessible. C. 1 Water Closet D. 1 Lavatory 4. Equipment Room A. Storage for baseball equipment, uniforms. 5. Laundry A. Commercial washer and dryer equipment. Training Room w/Trainer area A. Area for trainers desk B. 2 Taping benches C. Whirlpool wet area D. Casework and service sink C. Game Official's Locker Room 1. Locker area for 4 officials 2. 4 Metal lockers @ 36" w. x 72" h. x 24" d. 3. Shower/Toilet area A. 1 Shower unit; handicapped accessible. B. 1 Water Closet C. 1 Lavatory 6. Batting/Pitching Tunnel A covered area for a batting and pitching tunnel shall be provided and located adjacent to the home team clubhouse, with direct access to the playing field and to allow usage by the visiting team. 1. The tunnel shall have a 14' w. x 80' d. x 14' h. netting cage. 2. Soil areas for batter's box, pitching mound. 3. Synthetic turf covering over slab areas. 4. Storage room for pitching machine, equipment storage. 5. Evenly distributed metal halide lighting to prevent strobe effect on pitched balls. 7. Playing Field Facilities A. Playing Field A natural grass playing field with underground irrigation and drainage systems shall be provided. The playing field shall meet the dimensions as defined by the rules of baseball and meet the dimensional requirements of 325' at the left and right field foul lines, 400' in center field, and have power alley dimensions of approximately 365' - 375' in depth from home plate. A warning track area shall be 25' deep at the outfield wall and 15' deep at other locations. B. Bull Pens Provide bull pens within the warning track areas along the right and left field foul lines and beyond the cut of the infield area for each team. Each bullpen shall be provide with two warm-up areas with pitcher's mounds and home plates. The bullpen players are anticipated to utilize the dugouts, and are not provided benches. C. Wall Pads Wall pads shall be provided on all hard surfaces of the field wall directly behind home plate between the dugouts, and on the hard surfaces of the outfield wall, where required. D. Dugouts Provide covered concrete dugouts for each team, recessed approximately 2' below the playing field surface and consisting of the following: 1. Bench seating for 25 players; @ 2' wide with high back and seat top with vertical clearance of 7'-0" in the back of the dugout. 2. 4" High raised slab area directly under the bench. 3. Floor drains and non-slip slab covering and on steps to the playing field. 4. Utility services for a drinking fountain, hose bib, general lighting, power outlet, and telephone conduits. 5. Provide a protective railing and net screen with padding on all piping. 6. Provide each dugout with a camera booth area at the far end away from the dugout. E. Access Gate A 25' wide service access gate shall be provided giving access to the playing field from a service drive and portable backstop storage area. The service access shall have a 14' high-unobstructed clearance to allow for the passage of over-the-road tractor-trailers carrying portable stage equipment. F. Backstop Net and Support Cables Provide a backstop net approximately 26' in height supported by an overhead cable, and extending between both dugouts. The backstop net shall be suspended from an overhead parabolic cable supported in tension by the two middle (extra-strength) light poles, and tied back to the press box and suite level, and tied down to eyebolts imbedded into the field wall between the dugouts. G. Scoreboard/Video Board Provide a scoreboard and support structure with the following elements and features: 1. Line score; inning, score per inning, runs, hits, errors 2. Player At Bat number 3. Time of Day Clock 4. Speed of Pitch (optional) 5. 12' h. x26' w. Video panel (optional) 8. Administrative Offices An administrative office area shall be provide for the tenant team, and shall include the following: A. Receptionist / Waiting Area Provide an area at the main administrative office area for a receptionist and side waiting lounge area. B. Private Offices 1. General Manager's office 2. Assistant General Manager's office 3. Financial Officer's office 4. Public Relation's office 5. Stadium Supervisor's office C. Secretaries 1. Open cubical for two secretarial stations. D. Conference Room 1. Area for boardroom table seating 14. 2. Markerboard and/or projection screen by Tenant. 3. General and dimmable lighting. E. Lunch/Break Room F. Copy/Mail/Supply Room G. Workroom/Storage Room Staff Restrooms 1. Male and Female individual restrooms 2. Janitorial room w/mop sink, supply storage. 9. Ballpark Service Facilities A. Field and Stadium Maintenance Provide an area for the storage of equipment (provided by the tenant) utilized for the maintenance of the playing field and general maintenance of the stadium, including the following areas: 1. Locker area for maintenance staff 2. A unisex shower/toilet facilities including 1 shower (handicapped accessible), 1 water closet, and 1 lavatory. 3. Office for the field maintenance manager 4. Maintenance shop and equipment storage area 5. Covered storage bins for the bulk storage of fertilizer, soil amendments, and top soil. 6. Replacement turf growing area. 7. Screened maintenance yard for storage bins, maintenance vehicles and equipment and with a wide gate access to the facility service drive and the playing field. B. Loading Area and Service Entrance Provide a truck loading/unloading area and service entrance with direct access to the maintenance facilities, commissary kitchen, and storage areas. A truck loading dock and leveler are not anticipated. Provide a screen loading area away from public access of view. C. T.V. Truck Parking Area Provide an area for the parking of two television broadcast trucks with access to the electrical and telecommunications conduits leading to the press box. D, Maintenance/Housekeeping Storage Room Provide a room for the storage of housekeeping supplies and cleaning equipment. E. Emergency Power Generation Provide an fuel-powered emergency power generator and switchgear for the facility. The generator shall provide enough power to operate emergency alarm and fire protection systems, egress lighting fixtures, and the elevators only. F. Trash Holding and Compactor Provide a screened outdoor area, with direct access to the main concourse, for the holding of trash dumpsters (and/or trash carts), and a trash compactor. The trash holding area shall be screened from view and provided with a sanitary area drain, hose bib, general lighting, and electrical power (sized for the operation of a trash compactor). PRELIMINARY PROGRAM OCTOBER 17, 2003 FOR DUBUQUE, IOWA MINOR LEAGUE BALLPARK Spectator A total stadium capacity of 5500 seats will be provided, Percentage of Total Seating Seating distributed across the following categories: Capacity a. Picnic Seating: Stepped dining terrace and/or level picnic 484 5.0 2,420 al'ea. b. Reserve seating, permanent (21" min. width ): 1,372 6.5 8,918 25% c. Box seating, permanent (22" min. width ): 1,000 8.0 8,000 18% d. General Admission (21" min. width): L000 6.5 6,500 ;ubtotal: Lower Seating Bowl Capacity 3,856 e. Corp. Suite seating, permanent (22" min. width ): 80 9.5 760 f. Nightly Rental Suite seating, perm.(22"min, width ): 32 9.5 304 1%1 Optional g. Party Decks seating, perm.(22"min, width ): 32 9.5 304 Subtotal: Suite Level Seating Capacity 144 SUB-TOTAL: FIXED SPECTATOR SEATING (lower 4,000 27,206 seating bowl and suite level combined) Optional g. "Berm" seats (outfield location) 1,500 I 0.0 o! 27% TOTAL SPECTATOR CAPACITY FOR STADIUM 5,500 ! 27,206 Future Expansion: Provide for upto 10 additional enclosed suites on the suite level by enclosing the covered Party Decks a.nd with the option of adding 2 new party decks. Future Expansion: Provide design expansion for a total of 1,000 5,000 fixed armchair seats. Note: accommodationsforwheelchairandambulatory disabled )atrons and their companions shall be provided in accordance with the ADA. ;radium A. Suites: A total of 10 suites; provided with sliding and ;uites swing doors, covered outdoor balcony, covered outdoor access corridor, and wheelchair provisions. (8 Corporate suites + 2 nightly rental suites.) 1. Number of Corporate Suites: each providing 8 armchair 8 335 2,680 eats on an outdoor balcony. 2. Nightly Rental Party Suites: 2 nightly rental suites; each ~roviding 16 armchair seats on an outdoor balcony; (each rental suite to be double the corp. suite size) and be ~rovided with a folding, partition. 2 670 1,340 Optional B. Party Decks: 2 party decks with 32 fixed armchair and several picnic tables with chairs; adjacent to party suites; 32 5.0 160 accessible from party suite and suite corridor (each party deck = 2 future corp suites). Future Expansion: Provide design expansion for a total of 20 suites; 16 corporate and 4 nightly rental suites plus 2 mrty decks. Install permanent partition in existing nightly rental suites = (4) new corp. suites; Enclose existing party 2 670 decks for new nightly rental suites (2); Construct (2) new suite decks. 48 5.0 Page 1 PRELIMINARY PROGRAM FOR DUBUQUE, IOWA MINOR LEAGUE BALLPARK Public Toilet Rooms A. Public Toilet Rooms on the M',fin Concourse: 1. Mens toilets: 6 w.c. (1:417) + 16 urinals (1:125) + 12 lays (1:150) 2. Womens toilets: 26 w.c. (1:75) + 12 lays (1:150) SUBTOTAL B. Suite Level Restrooms: a. Mens Toilets: min. 2 w.c. + 4 urinals + 4 lays b. Womem Toilets: min. 4 w.c. + 4 lay C. Family Toilet Rooms - Provided for use by parents with small children or disabled people who need special assistance. First Aid A. Primary First Aid Station - for emergency medical treatment of spectators. NET AREA) 34 40] 1,360 39 40 1,560 to 6oI 60o 181 6°l480 ii ,ool 35,786 OCTOBER 17, 2003 Concessions Eating Areas Food Service Retail Sales Promo Storage SUB-TOTAL Concession Stands will be distributed at regu 'lur intervals on the Concourse(s). Hve linear feet of counter space is allowed per point-of-sale, with 20' depth to accommodate storage in each stand. A. Public Concession Stands - based on a ratio of 1:250 spectators, for a total of 21 points-of-sale. B. Vendor Commissary - Facilities for "hawkers" to be )rovided at 15 sfper "hawker", with (1) hawker per 350 ectators. C. Concession Carts: Provide multiple locatioas for food service and retail sales carts along the concourse; provide electrical and water service. A. Picnic Area(s) for 484 spectators; either 1 large area or 2 smaller areas @ 242 spectators. A. Kitchens 1. Main Kitchen B. Commissary - Serves as the base for the food service operator and as the centralized bulk storage for food supplies and paper goods, including climate-controlled storage rooms. C. Pantries 1. Suite Serving Pantries - to assist food service from the Main Kitchen. A. A permanent retail store of souvenirs, team memorabilia and novelty items. B. Storage for bulk materials adiacent to the Ret~ Store. Storage of entire season of promotional materials. NET AREA) 2,200 240 PBA = 1:350 75O 9,680 2,000 30C 2,00(3 to 800 1,000 ,e area can be remote. i Writing Press Area: Number of Writers: 8 ab, Press Workroom Photographer's Booth Radio broadcast Booth TV Booths PA/Sound Page 2 120 120 PRELIMINARY PROGRAM FOR DUBUQUE, IOWA MINOR LEAGUE BALLPARK e. PA/scoreboard operator booth Toilets (Men's and Women's) amera a. Camera Positions - Provide standard T.V. camera Positions positions. Press Box camera location: b. Still Photo/TV Camera Positions - (5) locations - (photo wells in dugouts shall be recessed) SUB-TOTAL 1 2 1 120] 100] 150 130 OCTOBER 17, 2003 120 200 150 520 2,110 The Home Team locker room suite includes the following spaces: A. Player's Locker Room: (APL + 5 = 30) (28) 30 x 72 w & (2) 36 x 72 B. Player's Shower/Toilet area: C. Coaches' Locker/Shower area: D. Manager's OfficeTLocker Room E. Training Room (including whirlpools) G. Storage Room H. Weight Training Area Equipmem Room Laundry Room - Facilities for team uniforms, including 2 lectric washers and 2 8~ dryers. A. Du$out Tunnels Tunne~ Visitor Clubhouse Umpir~ Locker B. Battin~Pitchin~ Tunnels: 20"N x 9013. The Visiting Team locker room suite includes the following spaces: A. Player's Locker Room: (28) 30 x 72 & (2) 36 x 72 B. Player's Shower/Toilet area: C. Manager & Coaches' Locker/Shower area: E. Laundry Room - Facilities for team uniforms, including gas/electric washem and gas/electric dryers F. Training Room G. Equipment Room A. Umpires' Locker Room: (4) 36 x 72 cubicle lockers B. Umpires' Shower/Toilet area: 'NET AREA) 5,500 1,2013 = 1.ooo 6013 500 250 300 300 400 300 400 1,000 1,250 2,550 1,000 600 500 100 200 150 200 150 17, 450 ream Admin. Dffices Facilities for stadium and team administration will be located in this facility: A. Receptionist / Waiting Area B. General Managers Office C. Assistant General Manager's Office D. Financial Officer Page 3 1,680 300 672 120 0 600 3,372 420 420! 200 200, 150, 150i 12oi 1213 PRELIMINARY PROGRAM FOR DUBUQUE, IOWA MINOR LEAGUE BALLPARK E. Public Relations Office 110[ F. Stadium Supervisor's Office 200 G. Secretaries (open office work stations ) 200 H. Open Workstations 1 2°°l SUB-TOTAL: NUMBER OF STAFF MEMBERS J. Conference Room 275 IC Lunch/BreakRoom I ' I ~5°1 ~. st~o~ M. Copy/M~'/Storage Room I 1 I 2001 N. Wor~oom/Storage I ° I 2°°1 o. c',,~ulac, on I'1 35°1 SUB-TOTAL: ADMINISTRATIVE OFFICE ~ g¢~ Of~ea I ~1 n00I B: ~'~age~'~ Offi~ I'1 ~501 C. Wo~oom 101 O.V~,~oom(C~A~ea) I 01 '201 E. Computer Room J 0 J ,00J S_UB-TOT~.. T]C~T OmC~S Vendor Staff ~.~ I 1 { 125{ 125 SUB.TOTAL ~NET AREA) 5,5oo co,,~u,.,~ ~ ~u,=co~ou~-~ I 3920 J 3.~J13,720 v,~ x ~o. o~ R=~: 0 } II a,~,,,,,,~o. ~.~o. om~: 3 I 3l 01 c~~.. ~ 131 noI 330 ~,~vato~: 0 I I V*51 ,45 E. Wheelchair Lifts , 50 SUB-TOTAL ~ NET AREA) 17,125 Playin$ Yield b~0p/myers> J 2 i ,,3OOl 2,600 d. Pitcher's Bullpens 5,000 t: Scoreboard SUB-TOTAL I NET AREA) 7,750 OCTOBER 17, 2003 330 4O0 400 1,000 PBA = 250.300 sf per person 275 150 100 200 0 350 3,675 300 PBA = 121500 0 400 150 Safe not included. in net-to.gross factor Id-person 23 person. excluded from g.s.f. excluded/rom g.s.f Page 4 PRELIMINARY PROGRAM OCTOBER 17, 2003 , FOR DUBUQUE, IOWA MINOR LEAGUE BALLPARK SUB-TOTAL PART 1: SPECTATOR FACI~T~ES 35,786 SUB-TOTAL PART 2: FOOD SER~CE ~d RETAIL FACI~TIES 20,520 SUB-TOTAL PART 3: MEDIA FACIUTIES 2,110 SUB-TOTAL PART 4: CLUBHOUSE FACIUTiES 17,450 SUB-TOTAL PART 5: SERVICE ~d OPERATIONS FACI~TIES 3,372 SUB-TOTAL PART6: ADMINIS~ATiON FACIUTIES 5,500 SUB-TOTAL PART 7: CIRCUiT[ON 17,125 SUB-TOTAL PART 8: P~NG FIELD 7,7~ BUILDING NET TOTAL 109,613 subtract p~g t~td -7,750 ~ubtract ~atMg bowl -27,206 subt~ct c~culation -17,125 + NET-TO-GROSS MULTIPLIER (10%) 7,303 Note: the net-m-gross mul~plier is ~ allow~ce for inters~tial space, ~lu~ing ch~es, w~l thic~ess, etc. It is not ~plied to the seating bowl, :ircula6on element, the event ~oor, or the s~ength tr~ning facili~. BUILDING GROSS TOTAL 116,916 ~ T~ ~la~) ~g: n~er o/spaces 50 450 22,500 ~-Site B. St~P~g: nu~er of spaces 25 450 11,250 On-Site C. Hmdi~p~ ~g: number of spaces ~-Site ID. FmP~g: nu~er of spaces, acres 1,833 450 825,000 19 C~ be remote; within 1~. ~le wMkin$ distance. On. Site Pot~tifl develop~t of ~ on-site rmt~mt. 1 12,000 12,000 Restaurant could have ~m second t~el vi~s W ~tional pl~ing fieM and street l~el ent~; year-round operation. Ou~eld '~vi~ a 360 ~ ~k-~o~ ~n~ ~ ~-Mt~pe~ Co~ vi~s of ~ pla~ fiel~ ~ a ~ation of ~s ~a~g ~tional ~a~ ~ ~ong ~ I~ge sl~ ~ f~ Mt~fivc g~ ~d ~n~sion ~ l~ti~ on ~ ~, Scoreboard ~ovi~ a ~mbo~d ~g PBA ~m~, ~ el<~oMc ~aage p~l. S~d my Mcl~ opOon~ fix~ b~t ~v~a~g p~els. Vid~aM ~vi~ ~ opdo~ ~ bo~d for ~hy ~ Mv~Mg, ~ ~tio~l ~ilifim. Page 5 14 15 LEGEND ENTRY PLAZA 2. COURTYARD SPORT+VENUE+EVENT 14 14 3. NOVELTY STORE 4. ADMIN OFFICES 5, TICKET OFFICE 6. BATTING TUNNEL 7. HOME CLUBHOUSE 8, OFFICIALS LOCKER RM 9. VISITOR CLUBHOUSE 10. RESTAURANT - 2ND LVL / / KITCHEN t 2, COMMISSARY t3. BUILDING SERVICES '~ 4. STORAGE 15. FIELD ACCESS ENTRY PLAZA LEVEL 1'--80' ? t SPORT+VENUE+EVENT 4 LEGEND 1. ENTRY PLAZA 2. COURTYARD 3. SUITE LOBBY 4. PARTY DECK 5. SUITES (10) 6. PRESS BOX ? / / / / 7, PANTRY 8. RESTROOMS SUITE / PRESS BOX LEVEL PRELIMINARY PROJECT DEVELOPMENT SCHEDULE FOR DUBUQUE, IOWA MINOR LEAGUE BALLPARK PROJECT DEVELOPMENT SCHEDULE The preliminary project development schedule outlines the anticipated activities and phases of development that would assure completion of the project for early April, 2005. .Cqnceptual Site Desiqn/Preliminary Proqramminq and Desiqn Site Selection, Conceptual Design 8/25 - 10/15/04 ,Project Initiation and Fundinq Following referendum in December 2003 Architect/Enclineer Selection · Selection of A/E to occur following referendum; mid-December 2003 Desiqn and Enqineerinq · Site Survey/Geotechnical Services: · Design& Construction Documentation: o Bid Package One - Site Work, Utilities o Bid Package Two - General Trades 12/15/03 12/15/03 - 3/15/04 Biddinq/Award for Construction · Release of Two Bid Packages (tentative) · Bid Period - Package One (4 weeks): · Award BP I / Start Construction: · Bid Period - Package Two: (4 weeks): · Award BP 2 / Start Construction: 2/1/04 - 3/1/04 3/15/04 3/15/04 - 4/15/04 5/1/04 Construction · March 15 -April 15, 2005 (13 months of construction anticipated) iubstantial Completion · March 15, 2005 Approximately one month prior to Opening Day .Openinq Day - Midwest Leaque First week in April, 2005 Final Project Close-out · June 1, 2005 Punch List Complete, Final Contract Release