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

Once the referendum has passed, the District would have a five-member board of directors,
which would have the authority over the hotel tax collections. The revenue has to be used for a
planned facility, although facility development would not have to be underway yet. The District
could begin to draw revenue from the tax through the planning process. The District could be
defined as the City limits, the County, the School District or any other line. In establishing the
District’s borders, consideration would need to be given to where the community’s hotels are
located currently and where they may be developed in the future.
While Auditorium Districts provide Idaho municipalities with a means of funding facility
development projects, few such districts have actually been established. Specifically, Boise and
Pocatello are the only communities that have utilized Auditorium District taxes to develop
facilities in recent years. The establishment of Auditorium Districts in other cities has been met
with strong resistance from certain local and state interests, particularly hoteliers. However, the
establishment of a District in Coeur d’Alene should be explored, as the ability to implement a
hotel tax could generate significant revenue for the project. The concerns of local hoteliers
would need to be weighed against the potential increase in hotel demand resulting from the
operations of the proposed facility.
Private/Public Equity
The financing of sports and event facilities often 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 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 has contributed
to several facility financings throughout the country.
As discussed in the Financial Analysis, potential revenues from advertising and other private
revenue streams generated by the facility have been used to cover facility operating costs and
capital repairs. However, opportunities to use private funds to cover a portion of facility
development costs may exist, particularly if a naming rights partner can be identified. Other
private funding options could include a facility fee, corporate donations, developer contributions
and other such private revenue sources.
Comparable Facility Funding
A review of total project costs and sources of financing for recently-built municipal sports and
event venues provides an understanding of the necessary funding levels and the potential funding
sources that could be used for construction of a new facility in Coeur d’Alene. While some of
the venues discussed herein are larger in scope than the envisioned Coeur d’Alene facility, each
case study provides insight as to potential funding sources and structures.
Feasibility Analysis of a New Sports and Event Complex in Coeur d’Alene
Funding Analysis
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