Presented by: Proposed Sports and Event Complex in Coeur d ...

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Multiplier Effects Economic impacts associated with the proposed facility will likely be further increased through re-spending of the net new direct spending. The total impact is estimated by applying an economic multiplier to initial direct spending to account for the total economic impact. The total output multiplier is used to estimate the aggregate total spending that takes place beginning with the direct spending and continuing through each successive round of re-spending. Successive rounds of re-spending are generally discussed in terms of their indirect and induced effects on the area economy. Each is discussed in more detail as follows: • Indirect effects consist of the re-spending of the initial or direct expenditures. These indirect impacts extend further as the dollars constituting the direct expenditures continue to change hands. This process, in principle, could continue indefinitely. However, recipients of these expenditures may spend all or part of it on goods and services outside the market area, put part of these earnings into savings, or pay taxes. This spending halts the process of subsequent expenditure flows and does not generate additional spending or impact within the community after a period of time. This progression is termed leakage and reduces the overall economic impact. Indirect impacts occur in a number of areas including the following: o Wholesale industry as purchases of food and merchandise products are made; o Transportation industry as the products are shipped from purchaser to buyer; o Manufacturing industry as products used to service the arena, vendors and others are produced; o Utility industry as the power to produce goods and services is consumed; and, o Other such industries. • Induced effects consist of the positive changes in spending, employment, earnings and tax collections generated by personal income associated with the operations of the proposed facility. Specifically, as the economic impact process continues, wages and salaries are earned, increased employment and population are generated, and spending occurs in virtually all business, household and governmental sectors. This represents the induced spending impacts generated by direct expenditures. The concept of direct, indirect and induced spending is further illustrated below. Feasibility Analysis of a New Sports and Event Complex in Coeur d’Alene Economic and Fiscal Impact Analysis Page 91
The appropriate multipliers to be used are dependent upon certain regional characteristics and also the nature of the expenditure. An area which is capable of producing a wide range of goods and services within its border will have high multipliers, a positive correlation existing between the self-sufficiency of an area's economy and the higher probability of re-spending occurring within the region. If a high proportion of the expenditures must be imported from another geographical region, lower multipliers will result. The multiplier estimates used in this analysis are based on the IMPLAN system, which is currently used by hundreds of universities and government entities throughout the country. IMPLAN is a computer program that performs regional input-output analysis based on approximately 440 industry interrelationships. For purposes of this report, multipliers specific to Kootenai County have been used. Fiscal Impacts Direct Indirect Induced Multiplier Effect Food & Merchandise Wholesaler Business Services In-Facility Out-of-Facility Transport Company Household Spending Manufacturers Energy/ Utilities Governmental Spending In addition to the economic impacts generated by the proposed facility throughout the market area, the public sector also benefits from increased tax revenues. In preparing estimates of fiscal impacts, total tax revenues attributable to the direct spending generated by the development were estimated. In addition, estimates of the effect of total output and earnings on the tax collections have been estimated. Tax revenues are based on the current applicable tax rates. Future changes in these rates would have an impact on the resulting tax collections. The sources of tax revenue focused on in this report are outlined below: Feasibility Analysis of a New Sports and Event Complex in Coeur d’Alene Economic and Fiscal Impact Analysis Page 92 Numerous Other Industries All Other Economic Sectors
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Feasibility Study: Proposed Sports
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Mr. David Tomson February 6, 2008 P
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- Executive Summary - Conventions,
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• These types of arenas can offer
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part of the Visitor and Convention
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• Because the proposed Coeur d’
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• As shown, the estimated operati
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• The following table illustrates
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• Based on conversations with pro
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Organizations and Stakeholders Cont
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II. Local Market Conditions Analysi
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The following exhibit illustrates t
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Income Another socioeconomic variab
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The Kootenai Medical Center is the
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Summary of Event Space at Couer d'A
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As shown, six indoor venues are off
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Spokane Convention Center The Spoka
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III. Comparable Facilities Analysis
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Budweiser Events Center Located in
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Qwest Arena The 5,190-seat Qwest Ar
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Toyota Center Originally known as t
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Tyson Events Center Located in Siou
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Comparable Arena/Convention Facilit
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Cabarrus Arena & Event Center Locat
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La Crosse Center Located in downtow
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Mid-America Center The Mid-America
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Swiftel Center The Swiftel Center i
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While the multi-purpose nature of t
Page 57 and 58: • Meetings/Banquets - Events incl
Page 59 and 60: Arena Football Arena football has g
Page 61 and 62: 12,000 10,000 8,000 6,000 4,000 2,0
Page 63 and 64: Touring Sports Events Indoor event
Page 65 and 66: also serve as a valuable recruiting
Page 67 and 68: o Presence of a minimum of 150 comm
Page 69 and 70: Amateur Sports Another potential us
Page 71 and 72: USA Judo • Potential exists for a
Page 73 and 74: • The event attracts over 100 tea
Page 75 and 76: Conventions, Conferences, Exhibitio
Page 77 and 78: A facility offering a clear span co
Page 79 and 80: While a sports tenant could add app
Page 81 and 82: West Coast League Attendance Sorted
Page 83 and 84: The development of two fields is li
Page 85 and 86: Seating Capacities of Regional Faci
Page 87 and 88: Premium Seating Many modern sports
Page 89 and 90: One option would be for the Fairgro
Page 91 and 92: Gate Receipts/Rental Revenue Summar
Page 93 and 94: concession profits allocated to fac
Page 95 and 96: Parking Based on conversations with
Page 97 and 98: Naming Rights Agreements at Selecte
Page 99 and 100: As shown, based on an estimated 10
Page 101 and 102: Estimated Financial Results The tot
Page 103 and 104: Tenant Sports Impact In order to es
Page 105 and 106: VI. Economic and Fiscal Impact Anal
Page 107: In order to estimate the incrementa
Page 111 and 112: Based on this direct spending estim
Page 113 and 114: Based on the in-facility spending e
Page 115 and 116: As detailed in the previous table,
Page 117 and 118: VII. Funding Analysis The purpose o
Page 119 and 120: The P&R District could generate the
Page 121 and 122: Once the referendum has passed, the
Page 123 and 124: Year Public Contribution Facility L
Page 125 and 126: Laredo Entertainment Center The Lar
Page 127 and 128: Sovereign Center The 9,000-seat Sov
Page 129 and 130: The City’s lease payments are der
Page 131 and 132: In addition to the bonds, a $25.0 m
Page 133 and 134: TIF The proposed event facility sit
Page 135 and 136: Hotel/Motel Tax As discussed previo
Page 137 and 138: Facility Fee A potential means of r
Page 139: Summary The intent of this section
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