Stadium Advisory Board Presents Findings

News Release: From: City of Evansville Roberts Stadium recommendations report from the Advisory Board to Mayor Weinzapfel Utilizing all of the information at our disposal, the Roberts Stadium Advisory Board recommends that a new, high quality, multi-purpose sports and entertainment venue be built downtown. Read the complete letter to the mayor below: May 19, 2008 Dear Mayor Weinzapfel: The Roberts Stadium Advisory Board convened for its first meeting on June 27, 2007. Our mission was to provide feedback to the City regarding the future ofthe 51-year-old Roberts Stadium. Since then, we have conducted six Board meetings and have received a great deal of feedback ttom the public. We also received the results of the Market, Financial, Funding and Site Analysis ttom Tom Chema of The Gateway Group. On May 7,2008, Dr. Sue Ellspermannjoined the Advisory Board to facilitate a meeting at which we were to reach our recommendations to the City about Roberts Stadium. With Dr. Ellspermanns help, we developed a list of 45 Key Facts. The Board agreed that eight ofthose Key Facts were particularly important. They are highlighted below: 1. Roberts Stadium was renovated in 1990 at a cost of$16.2 million. It seats 12,232 people, has 15 corporate suites and no club seating. 2. Roberts Stadium is a textbook "destination site". Destination site venues have not proven to be successful in stimulating ancillary economic development. (2) 3. The problem with Roberts Stadium is that the floor is too small, there is no permanent ice making plant, the truck docks and marshalling areas are undersized for todays events, and the rigging is significantly under capacity for modem acts, concerts and other events. (2) 4. Roberts Stadium has served the community well for 50 years, but it is functionally obsolete. It cannot be brought up to todays standards due to the inability to "raise the roor (as they did in Ft. Wayne), which also prevents expansion of the stadium floor. (7) 5. Renovation would be very expensive and impractical even if you didnt try to raise the roof. The estimated cost to increase the floor size, rigging capacity, truck docks and add permanent dock space would be approximately $50 million. (1) 6. According to the consultants analysis, a downtown location is the only one that would help generate revenue equal to or greater than the cost of a new facility. A downtown location appears to create economic spin-off like retail shops and other businesses. (5) 7. The consultant has determined it will cost approximately $92 million to build a 10,000 seat arena located downtown. A new arena will require a minimum of 3.5-4 acres and approximately 4,200 parking spaces within 2,000 feet of the entrances (2-3 blocks). (4) 8. Downtown Evansville has a total of 8,300 parking spaces available. There are 2,418 private garage spaces; 2,417 spaces in private surface lots; 1,579 spaces in city garages and 1,886 naeteredspaces. (1) 9. The consultant has deternainedthat potential funding sources for a new 10,000 seat arena downtown include: nanningrights ($14 naillion),revenue bonds ($6 naillion), federal transportation support ($2 naillion), ganningrevenue ($15 naillion),TIP ($32.5 naillion), CRED ($.75 naillion),New Markets Tax Credits ($18 naillion),Food and Beverage Tax ($15 naillion) and Innkeepers Tax ($8 naillion). (3) 10. The consultant readily stated that the funding sources presented were merely estimates, plus he did not provide a multi-year projection of revenues and expenses, debt service and maintenance reserves. The cost of site acquisition is also likely to differ from the assessed value. It would therefore be appropriate to have a detailed financial forecast prepared by a firm or firms having significant expertise and experience with various funding sources and revenue/expense projections. (10) 11. The public input and naediacoverage of the process to date has been very beneficial with the apparent preference of the conanaunitybeing a new facility downtown. (1) 12.A naajorconcern seenasto be downtown parking and traffic flow. (3) 13. Many citizens prefer an 11,000 seat arena, if it is econonaicallyfeasible, because we need to prepare for growth 10 to 20 years into the future. We need the range of costs for both a 10,000 seat and an 11,000 seat arena. (5) 14. Many citizens feel a new hotel next to an arena will be econonaicallybeneficial to the project. (1) 15. Many citizens seenato prefer a new arena built near The Centre on the Executive Inn-DPatrick site. (1) 16. Most citizens do not want their property taxes increased in order to build a new arena. (3) 17. Most ofthe naarketsthat are conaparableto Evansville, which have opened arenas recently, have naorepeople living within 25 nailes oftheir cities. However, Evansville is relatively strong when you conaparethe nunaberof people living within 50 nailes of the City. 18. The Evansville naetropolitan area has an inventory of 425 corporations and branches. It ranks 4thanaongthe naarkets analyzed for corporate inventory, and Evansvilles inventory is significantly higher than the conaparablenaarket average. (1) 19. The current average nunaberof annual events at Roberts Stadiunais fairly conapetitivewith naostof the conaparablenaarkets surveyed. The average nunaberof annual events for the last three (3) years at Roberts Stadiunais 112. 20. "I believe the downtown area is a citys heartbeat and a thriving downtown often reveals a strong vibrant city. As a thirty-something Evansville native who returned home after living in Indianapolis and travelling fairly extensively, I believe that building an arena in downtown Evansville is the catalyst Evansville needs to resuscitate its heartbeat. However, it has to make sense." (6) 21. We should consider the loss of taxable revenue on a site where the owner is currently paying property taxes. (2) 22. The average attendance at Roberts is 6,000 for concerts; nothing close to the 11,000 seats that are being suggested for a new arena. (2) 23. We have heard ftona naanythat this is a "once in a lifetinaechance" to do it right. We should create a facility we will be proud of. (5) 2 - - - - --- - -- -. - - --- - - --- 24. We should build for the future, not for the past. (ex. USI growth). 25. We consistently heard from people that Evansville has momentum now. An arena is a key element in moving forward. (2) 26. We should make sure this facility is not simply large, but also handles several different types of sports and events well (basketball, hockey, conventions, etc.). (1) 27. The study saw The Centre as a place to function in tandem with an arena downtown (ex. exhibition space). An arena, the Centre and hotels will be greater than the sum of their parts. We need to consider which location will result in the most potential economic development. (4) 28. Many people question the revenue sources that came out ofthe study: TIF, parking, CRED. (3) 29. There may be other opportunities for use of Roberts Stadium that were not included in the study. (1) 30. SMG does lose some concerts due to shortcomings of the current stadium. 31. The Mayor made it clear at the beginning of the process that USI and UE would be instrumental in the development of this facility. (2) 32. We think an arena should be used to help attract other events to our community: soccer, football, etc. We could be a capital for regional sports, collegiate sports and entertainment. (1) 33. The negotiation process for some downtown sites will be easier and less costly than others (ex. fewerland owners). (1) 34. There are 60-75 activities listed in a previous survey that Roberts Stadium was not able to accommodate. (ex. automobile shows). 35. We should figure out how to involve USI in a new arena without being a detriment to UE. 36. We hear, "it would be wonderful if the $14 million of corporate sponsorship came in early in the process." (2) 37. Some ofthe funding in the study is already dedicated to other budgeted items (i.e. Food and Beverage Tax goes to the Convention and Visitors Bureau). 38. We believe an arena will be an economic stimulator for the community. (3) 39. We dont think we have exhausted the potential uses for Roberts Stadium beyond the recommended water park. This should be explored as part of the process. (2) 40. We have heard that whatever happens to Roberts Stadium, it needs to pay for itself 41. There is nothing that says Roberts Stadium could not be redeveloped and those profits used to support the cost of a new arena. (1) 42. We could donate Roberts Stadium to EVSC, USI, UE and the Diocese of Evansville. 43. We heard from many people that the seating should be comfortable. 44. We think "optimal size" needs to be 10,000-11,000 seated comfortably. Arena size would depend upon our ability to finance, events we could attract, and looking to the future. 45. The process of designing and building a new arena should include the participation ofthe entire community. 3 After reaching that list of 45 Key Facts, a multi-part recommendation was crafted and refined by the Board until we reached a consensus. Those recommendations are as follows: Utilizing all of the information at our disposal, the Roberts Stadium Advisory Board recommends that a new, high quality, multi-purpose sports and entertainment venue be built downtown. It should comfortably seat approximately 9,000-11,000 people. An arena should also factor in future needs of the City. The decision to build should be contingent on: • Assurance of adequate funding. Total overall funding should exceed the cost. • Confinnation from businesses to purchase naming rights and/or purchase suites for a multi-year period, even though the City may not have commitments for the entire $14 million as estimated by Gateway. • Engage well-qualified financial experts to prepare detailed, multi-year financial year projections to confinn the viability of this project over the long-tenn without negatively impacting property taxes. • Confinnation that land can be acquired at an affordable price. • Negotiation of a multi-year contract with UE that does not significantly increase the cost of use ofthe arena and meets MVC scheduling requirements. • Engage an A&E finn to prepare cost estimates. • The site and building should enhance the image of the City, and provide other retail and economic opportunities. • Invest in an economic impact study and build arena in a location that leverages potential impact. • Address parking and traffic concerns. • Fully consider the best possible community use for the current Roberts site. Additionally we recommend: • Cases for the Corridor of Champions should be designed and built into the new facility. The Roberts Stadium Foundation has committed to updating and maintaining this important tribute to local sports. • Additional study should be done on attracting a professional hockey franchise. Pennanent ice would lend itself to additional entertainment options. If the potential benefit outweighs the cost, pennanent ice should be included in the facility. • Continue to explore expanded use by USI and other area groups. • We encourage the participation of local skilled trades, minorities, women and vendors. The Roberts Stadium Advisory Board has been proud to serve the City. We hope our recommendations will be seriously considered as the potential is assessed for a new arena in Evansville. Sincerely, Roberts Stadium Advisory Board