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

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existing development inflates. However, the analysis provides an estimate of the average annual property tax valuation required to generate a 20-year NPV of $5.0 million. The following table summarizes this analysis. Valuation Increase Required to Create $5.0 Million NPV over 20 Years Targeted 20-Year Net Present Value (1) As shown, a property value increase of approximately $72.5 million would be required to generate annual tax revenues sufficient to provide a net present value of $5.0 million over 20 years. This level of property value increase would generate an estimated $581,000 in incremental annual property tax collections, of which approximately $436,000 would be available for facility funding, assuming 25 percent of incremental tax collections are allocated to other projects. Each additional $5.0 million in NPV required to fund the project would require an additional $72.5 million in incremental assessed value. It should be noted that an increase of more than $72.5 million may be required to actually fund each $5.0 million of facility development, as this analysis does not include potential coverage ratios and other borrowing costs outside of the assumed 6.0 percent discount rate. Ultimately, the amount of the project’s total cost that can be funded through TIF will depend on the amount and type of additional development that occurs within the Riverstone district. A $25 to $35 million project would require substantially more development than the initial phase of TIF funding, which covered $6.7 million in improvements. Feasibility Analysis of a New Sports and Event Complex in Coeur d’Alene Funding Analysis Page 117 $5,000,000 Annual Revenue Stream Required $436,000 % of Total Revenue Captured 75% Total Annual Tax Revenue Required $581,000 Tax Revenue per $1.0 Million Assessed Value $8,016 Necessary Valuation Increase $72,480,000 (1) NPV calculations assume constant property tax revenues over 20 years, with a 6.0 percent discount rate.
Hotel/Motel Tax As discussed previously, hotel taxes in Coeur d’Alene are limited to a two percent tax assessed by the State. It is possible that additional hotel taxes could be implemented through the formation of an Auditorium District and/or an increase to the State’s population thresholds regarding Resort City Tax eligibility. While these options may entail political and/or legislative challenges, it is useful to understand the funding potential of a hotel tax should one be implemented in the future. The State of Idaho maintains records of annual taxable sales and hotel tax collections by county. The following exhibit summarizes taxable hotel sales occurring in Kootenai County over the past six years. $60.0 $50.0 $40.0 $30.0 $20.0 $10.0 $0.0 $33.3 Annual Taxable Hotel Sales in Kootenai County (in millions) $34.3 $37.4 As shown, taxable hotel sales in Kootenai County have increased consistently over the past six years, from $33.3 million in 2002 to $49.4 million in 2007, an average annual growth rate of 8.2 percent. In order to estimate the tax collections that could result over the next 20 years from the implementation of a local option hotel tax, two scenarios were developed. The first assumes that annual hotel sales will continue to grow at the historical rate of 8.2 percent per year. The second assumes more moderate annual growth of 3.0 percent. For each scenario, annual taxable sales and the revenue that could be generated for each 1.0 percent increase in the local hotel tax were estimated each year from 2010 through 2029. The NPV of those 20-year tax revenue streams was then calculated. The following table presents the results of this analysis. $40.6 Feasibility Analysis of a New Sports and Event Complex in Coeur d’Alene Funding Analysis Page 118 $43.8 $49.4 Average Annual Increase: 8.2% 2002 2003 2004 2005 2006 2007 Source: Idaho State Tax Commission
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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
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• Meetings/Banquets - Events incl
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Arena Football Arena football has g
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12,000 10,000 8,000 6,000 4,000 2,0
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Touring Sports Events Indoor event
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also serve as a valuable recruiting
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o Presence of a minimum of 150 comm
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Amateur Sports Another potential us
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USA Judo • Potential exists for a
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• The event attracts over 100 tea
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Conventions, Conferences, Exhibitio
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A facility offering a clear span co
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While a sports tenant could add app
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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 and 108: In order to estimate the incrementa
Page 109 and 110: The appropriate multipliers to be u
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: TIF The proposed event facility sit
Page 137 and 138: Facility Fee A potential means of r
Page 139: Summary The intent of this section
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