Presented by: Proposed Sports and Event Complex in Coeur d ...
Presented by: Proposed Sports and Event Complex in Coeur d ...
Presented by: Proposed Sports and Event Complex in Coeur d ...
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- media.spokesman.com
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In order to estimate the <strong>in</strong>cremental economic <strong>and</strong> fiscal impact benefits generated to the local<br />
economy as a result of proposed event facility development <strong>in</strong> <strong>Coeur</strong> d’Alene, certa<strong>in</strong><br />
adjustments must be made to <strong>in</strong>itial direct spend<strong>in</strong>g to reflect the fact that all spend<strong>in</strong>g is not<br />
likely to impact the local economy. The follow<strong>in</strong>g exhibit summarizes the adjustments made to<br />
<strong>in</strong>itial direct spend<strong>in</strong>g <strong>in</strong> order to determ<strong>in</strong>e net new direct spend<strong>in</strong>g impact<strong>in</strong>g the local<br />
economy.<br />
• Rentals<br />
• Tickets<br />
• Concessions<br />
• Merch<strong>and</strong>ise<br />
Direct Spend<strong>in</strong>g Adjustments<br />
Initial Direct Spend<strong>in</strong>g<br />
• Advertis<strong>in</strong>g<br />
•Nam<strong>in</strong>g Rights<br />
•Hotel<br />
• Food & Beverage<br />
• Retail<br />
• Enterta<strong>in</strong>ment<br />
• Transportation<br />
•Other<br />
Adjustments<br />
• Leakage • Displacement • Local Spend<strong>in</strong>g<br />
Net New Direct Spend<strong>in</strong>g<br />
• Non-Local Sources • Out-of-Town Patrons<br />
• Spend<strong>in</strong>g Rema<strong>in</strong><strong>in</strong>g <strong>in</strong> Area<br />
As illustrated <strong>in</strong> the exhibit above, adjustments must be made to account for the fact that a<br />
portion of spend<strong>in</strong>g associated with the proposed facility will be made <strong>by</strong> local residents <strong>and</strong>,<br />
therefore, likely represents money already spent <strong>in</strong> the economy <strong>in</strong> another form. This<br />
phenomenon is called displacement <strong>and</strong> reduces the overall net new impacts. This type of<br />
spend<strong>in</strong>g is not considered net new to the local economy.<br />
Additionally, not all spend<strong>in</strong>g associated with the proposed facility will take place <strong>in</strong> the local<br />
economy. A portion of this spend<strong>in</strong>g is likely to occur outside the immediate area. For example<br />
a family visit<strong>in</strong>g <strong>Coeur</strong> d’Alene for an event at the proposed facility may stay <strong>in</strong> a hotel <strong>in</strong><br />
Spokane, or may spend a portion of their enterta<strong>in</strong>ment budget at attractions outside of <strong>Coeur</strong><br />
d’Alene. This phenomenon is called leakage <strong>and</strong> reduces the overall impact.<br />
Throughout the rema<strong>in</strong>der of this section, the economic <strong>and</strong> fiscal impacts estimated to be<br />
generated <strong>by</strong> the ongo<strong>in</strong>g operations of the proposed facility are discussed <strong>in</strong> terms of “gross”<br />
impacts <strong>and</strong> “net new” impacts. Gross impacts represent the total spend<strong>in</strong>g <strong>and</strong> result<strong>in</strong>g<br />
economic impacts. Net new impacts are the estimated impacts after mak<strong>in</strong>g the aforementioned<br />
adjustments. Therefore, net new impacts represent the portion of the gross impacts that are<br />
estimated to be “new” to the local economy <strong>and</strong> would not have taken place if not for the<br />
development <strong>and</strong> operations of the facility.<br />
Feasibility Analysis of a New <strong>Sports</strong> <strong>and</strong> <strong>Event</strong> <strong>Complex</strong> <strong>in</strong> <strong>Coeur</strong> d’Alene<br />
Economic <strong>and</strong> Fiscal Impact Analysis<br />
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