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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 08/13/2019 - RESULTS AND RECOMMENDATIONS FROM THE SPORTS COMPLEDATE: STAFF: August 13, 2019 Wendy Williams, Assistant City Manager Bob Adams, Recreation Director WORK SESSION ITEM City Council SUBJECT FOR DISCUSSION Results and recommendations from the Sports Complex Facility Feasibility Study completed by Hunden Strategic Partners. EXECUTIVE SUMMARY The purpose of this item is to present the findings and recommendations of Hunden Strategic Partners, the consultant hired through a competitive RFP process to evaluate the economic impact and feasibility of a multi-use sports complex in Fort Collins. Rob Hunden, the consultant from Hunden Strategic Partners, will be giving part of the presentation along with the staff. GENERAL DIRECTION SOUGHT AND SPECIFIC QUESTIONS TO BE ANSWERED 1. What additional information, if any, does Council think would be helpful? 2. What are the priority gaps this project should address? • Parks and Recreation Policy Plan – focusing on local needs • Tourism Master Plan – focusing on economic impact and growth 3. Does Council want to move forward with this project? 4. Should staff pursue opportunities for potential partnerships or donative relationships? BACKGROUND / DISCUSSION The 2017-2018 budget included funding for a Sports Complex Economic Impact and Feasibility study. The consultant was asked to answer the following questions: • What is the market opportunity for a new sports complex development in Fort Collins? • What is the existing supply of sports/recreation facility in Fort Collins and the surrounding area? What is the level of local demand for a new complex? • What are the existing state and regional supply of sports complexes that are capable of hosting large tournaments and events? Would a new facility in Fort Collins present opportunities to host larger tournaments? • How is the area hotel market performing? How does this impact the market opportunity for a new sports complex? • Based on the comprehensive market analysis, what are the conclusions and recommendations? • What are the possible scenarios and site options available for a new facility? Hunden Strategic Partners conducted a thorough study, providing staff with an executive summary of its findings and recommendations. (Attachment 1). A key element of the study process was to include a variety of City staff, along with community stakeholders, to ensure a diverse cross-section of interests were explored and represented in the report. Based on information provided from HSP, a few possible scenarios were presented for moving forward: August 13, 2019 Page 2 • Option 1: Build a sports complex that is designed specifically to address the local needs of the community (in conjunction with the Parks and Recreation Policy Plan) • Option 2: Build a sports complex that is designed specifically to drive local sports tourism in Fort Collins (in conjunction with the Tourism Master Plan) • Option 3: Build a sports complex that focuses on both priorities – tourism and local need (in conjunction with both plans) • Option 4: Do not move forward with this project The summary findings of this report were presented to the Council Finance Committee and the Economic Advisory Commission. A Triple Bottom Line analysis was completed for the first two scenarios (Attachment 2). Financial staff reviewed and verified the budget numbers and highlighted additional considerations that would impact the overall project costs and ongoing maintenance, such as custodial costs and the costs associated with the City’s design and construction standards. ATTACHMENTS 1. Executive Summary from Hunden Strategic Partners (PDF) 2. Triple Bottom Line Scenarios (PDF) 3. Economic Advisory Commission Memo - July 24, 2019 (PDF) 4. Visit Fort Collins Letter of Support (PDF) 5. Powerpoint Presentation (PDF) Fort Collins Sports Facility Market and Feasibility Analysis July 1 lysis 115 ysis 1155, sis s 55, 2019  ATTACHMENT 1 2 Executive Summary Executive Summary The Hunden Strategic Partners Team, including professionals at Perkins + Will, was engaged by the City of Fort Collins to conduct a comprehensive market, financial feasibility, and economic impact analysis for the development of a sports facility within the city limits. The key questions that HSP was tasked to answer were:  What is the market opportunity for a new indoor or outdoor sports complex development in Fort Collins?  What is the existing supply of sports and recreation facilities in Fort Collins and the surrounding area? Is there a gap in quality or size of facilities? What is the level of local demand for a new sports complex?  What is the existing state and greater regional supply of sports complexes capable of hosting impactful tournaments and events? Is there a gap in supply that a new Fort Collins facility could accommodate? What is the opportunity to host major state and regional tournaments?  How is the area hotel market performing? What does this mean for the market opportunity for a new sports complex?  Based on the comprehensive market analysis, what are the conclusions and recommendations? Should multiple scenarios be considered?  How is the recommended sports facility projected to perform? What is the expected economic, fiscal, and employment impact of such a development?  What are the site options for such a development? What are the pros and cons of the potential development sites? ATTACHMENT 1 3 Executive Summary Executive Summary Based on the comprehensive analysis of the market, the needs of tournaments and leagues, the projected development of competitive and recreation athletic facilities, and the overall market, HSP’s conclusions are targeted to meet Fort Collin’s mission to provide a state-of-the-art venue that can provide sports opportunities and economic impact for the local community and be a platform for regional and national events. The focus of the demand analysis was to narrow down the sports or facilities that would have the most potential for economic impact in the world of sports tournaments. In addition, HSP conducted an analysis of the supply of local and regional facilities for sports, as well as the demand for sports to determine if more facilities are needed to support local use and how the existing facilities may attract and accommodate potential tournaments. HSP met with key stakeholders, interviewed and surveyed existing and potential facility users, analyzed the competition, reviewed the regional tournament opportunity, analyzed the hotel market, investigated comparable situations and worked with the site option to fit an optimal development program. Many cities have used youth sports complexes as activity and demand generators to enhance their communities and overall development efforts. The activity of youth sports complexes (which are also used by adult tournaments) can generate intense usage, which provides hotel and restaurant activity, especially on weekends. The facility itself must be able to generate enough events on the calendar to keep it operating without significant financial support. Almost no sports complex can completely pay for itself, so the design and operating concept of any new facility should ensure that it can maximize revenues and minimize expenses by staying busy during the week with local rentals and on weekends with tournament activity. The goal is to integrate critical elements that will optimize a local athletic facility that also increases economic activity from beyond the local area ATTACHMENT 1 4 Drive Time Demographics Economic, Demographic, and Tourism Analysis The adjacent figure shows the drive-time demographics (one, two, and three hours) from Fort Collins. Due to Denver’s distance from surrounding metropolitan hubs, the majority of the tournament and event attendees will likely come from within this three-hour radius (population: 5.3 million) ATTACHMENT 1 5 Relevant Hotel Supply Hotel Market Analysis Fort Collins Hotel Supply Property Distance Rooms Chain Scale Open Autograph Collection The Elizabeth Hotel 0.1 164 Upper Upscale Dec-17 The Armstrong Hotel 0.2 45 Indep Jun-28 Best Western University Inn 0.8 70 Midscale Jun-61 El Palomino Motel 1.2 36 Indep Jun-43 Hilton Fort Collins 1.4 256 Upper Upscale May-85 Budget Host Fort Collins 1.5 30 Economy Jun-74 Best Western Kiva Inn 1.6 62 Midscale Feb-82 Americas Best Value Inn Fort Collins 1.7 40 Economy Aug-61 Marriott Fort Collins 3.3 229 Upper Upscale Jun-85 Days Inn Fort Collins 3.5 77 Economy Jun-81 Motel 9 3.5 35 Indep Jun-88 Super 8 Fort Collins 3.6 69 Economy Jun-85 La Quinta Inns & Suites Fort Collins 3.6 135 Midscale Jun-72 Baymont Inn & Suites Fort Collins 3.6 62 Midscale Jul-95 Quality Inn & Suites I 25 North Fort Collins 3.7 87 Midscale Dec-14 Clarion Inn Fort Collins 3.7 110 Upper Midscale Nov-65 Quality Inn & Suites University Fort Collins 3.7 66 Midscale Jun-97 Motel 6 Fort Collins 3.8 127 Economy Sep-78 Comfort Inn Fort Collins North 3.8 62 Upper Midscale Nov-00 Americas Best Value Inn & Suites Ft Collins E at I 25 4.1 120 Economy Jun-85 Candlewood Suites Fort Collins 4.1 83 Midscale Dec-14 Courtyard Fort Collins 4.5 112 Upscale Mar-96 Holiday Inn Express & Suites Fort Collins 4.6 89 Upper Midscale Oct-05 Comfort Suites Fort Collins 4.6 66 Upper Midscale Jul-98 Homewood Suites by Hilton Fort Collins 4.6 99 Upscale May-07 Hampton Inn Fort Collins 4.6 75 Upper Midscale Oct-96 Residence Inn Fort Collins 4.6 113 Upscale Jul-99 Home2 Suites by Hilton Fort Collins 4.9 108 Upper Midscale Apr-18 Hilton Garden Inn Fort Collins 5.2 120 Upscale Sep-07 Cambria hotel & suites Fort Collins 5.3 90 Upscale Sep-08 Fairfield Inn & Suites Fort Collins South 5.6 106 Upper Midscale Nov-18 AmericInn Lodge & Suites Fort Collins South 8.8 61 Midscale Nov-00 Total/Days Inn Average Wellington Fort Collins Area 3.8.72 8 3,93 097 Economy -- Jun-Jun-04 90 Source: Smith Travel Research The adjacent table details the supply of hotel options in the city. Approximately 3,100 rooms among 33 hotels are currently offered in Fort Collins. ATTACHMENT 1 6 Lodging Summary Hotel Market Analysis As detailed in the lodging summary table above, the existing hotel supply is fairly evenly distributed among chain scales, providing different price points and quality levels for potential visitors. ATTACHMENT 1 7 Map Hotel Market Analysis The adjacent figure shows the location of and chain scales of the competitive hotel set. Tournaments and groups for sports typically prefer lower-cost, branded hotels with built-in breakfast, such as Hampton Inn, Fairfield, Hyatt Place, etc. Due to cost and efficiency, they tend to avoid full-service hotels. The majority of the preferred branded, select service hotels are located 4.5 miles south of downtown Fort Collins. ATTACHMENT 1 8 Local Athletic Supply - Outdoor Local Sports Supply Analysis The adjacent table details the existing local athletic outdoor athletic supply in Fort Collins. Currently, Fort Collins Soccer Complex and Rolland Moore Park are the only venues large enough to accommodate tournaments and events. However, the Fort Collins Soccer Complex is limited by availability, lack of lights, and support infrastructure, while Rolland Moore suffers from a lack of support amenities required to accommodate events. As shown, the market offers collection of 2-plex diamonds, but those facilities not large enough to host tournaments that generate impact and visitation. Fort Collins area clubs are leaving the city and traveling to Loveland and Greeley for weekend tournaments throughout the summer months. Local Outdoor Athletic Complex Supply Venue Location Outdoor Multipurpose Multipurpose Turf Fields Outdoor Baseball/Softball Basketball Tennis Sand Volleyball Other City Par Fort Collins -- -- 2 -- -- -- Baseball field with bleachers and ad acent softball field Edora Par Fort Collins -- -- 2 -- 6 -- Fort Collins Soccer Complex Fort Collins 11 -- -- -- -- -- Field arrangement and uantity can vary Fossil Cree Par Fort Collins -- -- 2 2 5 -- Greenbriar Par Fort Collins -- -- 2 -- -- -- Martinez Par Fort Collins -- -- 2 3 4 -- Rolland Moore Par Fort Collins -- -- 4 5 8 2 Temporary multipurpose fields can be created in the outfield Spring Canyon Par Fort Collins -- -- 2 3 3 2 Spring Par Fort Collins -- 2 -- -- -- Troutman Par Fort Collins 4 -- -- 1 2 -- Twin Silo Par Fort Collins -- -- 2 -- 4 -- Warren Par Fort Collins 2 -- 1 1 4 1 Barnes Par Loveland -- -- 10 -- -- -- Batting cages Centennial Baseball Complex Loveland -- -- 6 -- 4 -- Loveland Sports Par Loveland 8 1 -- 2 -- 2 One turf championship field Diamond Valley Sports Complex Windsor -- -- 3 -- -- -- Source: Various Sources ATTACHMENT 1 9 Local Athletic Supply The adjacent map shows the location of relevant outdoor athletic complexes in the Fort Collins market. Local Sports Supply Analysis ATTACHMENT 1 10 Local Athletic Supply The adjacent table details the existing supply of indoor sports complexes in Fort Collins. Power to Play, the premier event-oriented indoor complex in the entire Denver market, is focused on attracting and producing basketball tournaments, but HSP understands that they are beginning to penetrate the volleyball tournament market. The two indoor synthetic turf facilities, Edge Sports Center and Arena Sports, both have uncertain futures, presenting potential opportunity for indoor turf in any new development. As shown, only one facility in Fort Collins area offers more than two basketball courts in one location, indicating a major supply gap. ele ant Local ndoor Athletic Complex Supply Venue Location ndoor Synthetic Turf Basketball Volleyball ndoor Tennis ool ce Other The Edge Sports Center Fort Collins 1 -- -- -- -- -- Batting cages Endora Pool Ice Center EPIC Fort Collins -- -- -- -- 1 2 10-lane 50m pool seating for 1 000 Mulberry Pool Fort Collins -- -- -- -- 1 -- 6-lane 25-yard NoCo Ice Center Fort Collins -- -- -- -- -- 1 Northside Aztlan Community Center Fort Collins -- 3 3 -- -- -- Weight room Fort Collins Senior Center Fort Collins -- 1 1 -- 1 -- 4-lane 25-yard Budweiser Events Center Loveland -- 1 1 -- -- 1 7 200-seat arena Arena Sports LLC Windsor 1 -- 3 -- -- -- Norco Volleyball Club Windsor -- -- 6 -- -- -- Power 2 Play Sports Events Center Windsor -- 6 6 -- -- -- Concession and lounge area between courts Uncertain future Source: Various Sources Local Sports Supply Analysis ATTACHMENT 1 11 Local Athletic Supply The adjacent map shows the location of relevant indoor athletic complexes in the Fort Collins market. Local Sports Supply Analysis ATTACHMENT 1 12 Competitive Regional Supply State and Regional Sports Analysis The adjacent figure details the competitive outdoor athletic complexes throughout the greater region. Aurora Sports Park and Dick’s Sporting Goods Park, which both offer ore than 24 fields, are considered the premier outdoor multipurpose complexes in Denver market and are the primary destinations for existing outdoor events. Fort Collins area residents traveling more than 50 miles for soccer events on weekends. Greeley is a major destination for Fort Collins area baseball clubs for tournaments and events throughout the summer months. ATTACHMENT 1 13 Competitive Regional Supply State and Regional Sports Analysis The adjacent figure shows the location of the competitive outdoor sports complexes in the greater region ATTACHMENT 1 14 Competitive Regional Supply State and Regional Sports Analysis The adjacent table details the competitive regional indoor supply. Other than Power to Play, only one facility in the regional market, Gold Crown Fieldhouse, offers more than 2 basketball courts in one location. There are also multiple club-operated indoor volleyball complexes in Denver market that are unavailable for outside use. Overall, HSP’s analysis suggests that the competitive supply of comprehensive indoor complexes capable of accommodating tournaments is lacking compared to outdoor complexes. ele ant ndoor e ional Athletic Supply Venue Location istance from Fort Collins mi ndoor Synthetic Turf Basketball Volleyball ndoor Tennis ool ce Veterans Meorial Aquatics Center Thornton, CO 52.0 -- -- -- -- 1 -- George J Meyers Pool Arvada, CO 53.7 -- -- -- -- 1 -- Sport Stable Superior, CO 58.4 124----1 Ice Centre at Promenade Westminster, CO 59.1 -- -- -- -- -- 3 Gold Crown Fieldhouse Lakewood, CO 68.0 -- 6 8 -- -- -- Carmody Recreation Center Lakewood, CO 74.2 -- -- -- -- 1 -- Colorado Momentum Volleyball Centennial, CO 80.3 -- -- 4 -- -- -- Colorado Volleyball Association Englewood, CO 82.3 -- -- 3 -- -- -- Play it Now Sports Colorado Springs, CO 130.0 1 -- 4 -- -- -- Source: Various Sources ATTACHMENT 1 15 Competitive Regional Supply State and Regional Sports Analysis Adjacent figure shows the location of the competitive indoor sports complexes in the greater region ATTACHMENT 1 16 Triple Crown Sports  Triple Crown Sports was established in 1982 and is based out of Fort Collins. The group will produce 119 events in 36 states in 2019. Approximately 70 percent of the events are baseball or fast-pitch softball, while the remainder are comprised of lacrosse, basketball, and volleyball.  Triple Crown produces the largest softball event in the country over the 4th of July. The event uses fields across 27 cities in Colorado. Triple Crown also produces the 2nd largest baseball event in the country in Omaha during College World Series.  Triple Crown produces the number one volleyball event in country, utilizing 65 courts in the Kansas City Convention Center. This features the highest level athletes of any event in Unites States.  The average event is 3.5 days. Some national events last a week, while other events are smaller regional two- day events. The typical overnight stay is three or four nights per visitor.  They are currently producing 12 baseball events and 6 fastpitch events in the state of Colorado. These are occurring in Aurora, Johnstown, Windsor, Loveland and Fort Collins. Events typically last 3 days and attract 150 teams per event.  While not their focus, Triple Crown produces one small basketball event at Regis University (15 teams) and they are planning first lacrosse event (30 to 40 teams). Lacrosse is considered to still be in its infancy in Colorado. Demand Analysis and Stakeholder Feedback ATTACHMENT 1 17 Triple Crown Sports  Fort Collins offers everything organizers and families are looking for in a sports destination, including nature, recreation, attractions, restaurants, and infrastructure. The only thing it lacks are appropriate event facilities and lodging options.  Triple Crown is extremely excited that the city is considering this opportunity. The area features great athletes, coaches, and teams, and can be a premier sports event destination.  Citizens are leaving the community on Memorial Day, 4th of July, Labor Day, and Christmas for surrounding communities. Fort Collins has not reached its potential as a tourist destination.  The distance from the Denver International airports is not an issue. One hour is feasible, and could even be a selling point.  There would be incredible benefits to producing events in their hometown market. If the appropriate facility existed, they would absolutely relocate existing events throughout country as well as create new events in Fort Collins.  The primary facility needs for Triple Crown include:  8 senior baseball synthetic turf fields with 400’ permanent fences and lacrosse/soccer full-size cut-out wings, as well as portable fences, portable mounds, and lights.  8 youth softball synthetic turf fields with 300’ permanent fence and lacrosse/soccer small dimensions as well as portable fences, portable mounds, and lights.  8 lacrosse/soccer Kentucky Bluegrass Fields fields (not as critical as diamonds) Demand Analysis and Stakeholder Feedback ATTACHMENT 1 18 Triple Crown Sports The adjacent figure shows an example of cut-out wings for outfield overlays with multipurpose fields. These overlays, combined with synthetic turf and portable mounds, provide ultimate flexibility for all baseball, softball, and other turf-sport age groups. 400’ diamonds can accommodate regulation multipurpose fields, but only 300’ diamonds can only accommodate modified youth fields. Demand Analysis and Stakeholder Feedback ATTACHMENT 1 19 Triple Crown Sports  This facility, with 16 synthetic turf diamonds and multipurpose fields overlays, would be the premier outdoor diamond complex in the state.  This type of complex would attract a national audience for up to 20 weeks per year, including 8 major national events produced by Triple Crown.  With 16 fields, the complex could host up to 75 teams, plus an additional 50 teams throughout the city. This venue would attract 125 teams over three days, on average. Some events would last five or six days.  Other major events would be driven by area local rights holders including local premier clubs, USSSA, AAU and other governing bodies.  Future phases of development recommended by Triple Crown include:  24 pickleball courts  A 500,000-square foot convention center for basketball and volleyball events  Convention center complexes are typically required to produce major national events that drive significant visitation and room nights to a community.  A dedicated indoor complex with six to eight basketball courts would certainly accommodate demand from area clubs, but the events would be locally and regionally- based. This type of facility would not be large enough to attract national events. Demand Analysis and Stakeholder Feedback ATTACHMENT 1 20 Triple Crown Sports  Fort Collins does not currently offer the hotel supply to support recommended diamond development. With the current situation, they will lose tax dollars to surrounding communities if more hotels are not developed.  Triple Crown is very interested in this opportunity, not only as event producers, but as local citizens that want to showcase Fort Collins to the rest of the country.  Triple Crown would love to be intimately involved in this process moving forward. However, they would not want to manage the complex due to concerns about the perception of a third-party prioritizing their own interests over that of the community. They would certainly consult with the city for scheduling and deal negotiations.  It is important that the city understands that these venue are not designed to make money. The benefits are the economic impact to the community.  Potential long-term facility recommendation for Triple Crown include:  Two ice hockey sheets  One competitive swimming pool Demand Analysis and Stakeholder Feedback ATTACHMENT 1 21 Volleyball Stakeholders  There is a major need for for indoor court training and practice space for area volleyball programs. There is a waiting list for many clubs due to lack of court times.  NORCO built their own complex and a few clubs are training at Power to Play, but many clubs are utilizing any available gym space they can find. This includes senior centers, churches, elementary schools, which present limited availability and scheduling challenges.  Area clubs are constantly travelling to Colorado Springs and Denver for Sunday events.  Power to Play is primarily focused on basketball, specifically as it relates to hosting events. The area is a hotbed for volleyball, but there are no available facilities. Demand Analysis and Stakeholder Feedback  Volleyball season runs from October through June.  Six new regulation courts would be ideal. This facility would likely be occupied by at least two club teams from October through May.  Six courts in one location would meet needs of Fort Collins area volleyball clubs, but it would not meet the needs of all of Northern Colorado. The entire entire region is lacking training space.  Area clubs are utilizing CSU facilities when available, but there are challenges with scheduling. Younger age groups forced to train late at night due to lack of available gyms in the community. ATTACHMENT 1 22 USA Volleyball Rocky Mountain Region  There are currently 8,000 total members within the Rocky Mountain Region of USA Volleyball. Fort Collins is growing, with 12 to 14 total clubs in the market accounting for 25 percent of total membership.  One-day tournaments, the Power League, occur every Sunday from January through April. Two major multi-day events currently occur in the region (downtown Denver) each year over Martin Luther King and Presidents Day Weekend.  The Power League is organized by USA Volleyball. They occur on Sundays because that is the only day collegiate and high school gyms are available.  There are six or seven 2- and 4- court volleyball facilities in greater Denver market that are run by premier clubs or third parties. These are the primary indoor venues in addition to Power to Play.  Front Range Volleyball Club holds one annual event at Denver Convention Center that utilizes 101 courts.  Fort Collins area clubs are hosting Sunday Power Leagues at area schools, NORCO, and Power to Play. These one-day events are attracting teams from Cheyenne, Casper, and Gillette.  A new facility would absolutely be occupied by area clubs during the week. With 6 regulations courts, it would host 24-team Power Leagues on Sundays, with up to 25 percent potentially staying overnight.  There is also potential for area clubs to create and host their own events in a new facility. The demand is there. Tournament Opportunity Analysis ATTACHMENT 1 23 AAU Basketball Colorado  The state is in desperate need of a comprehensive indoor facility. AAU programs and events are typically relegated to high school gymnasiums due to lack of available court space in the market.  AAU events are currently occurring at Power to Play or Gold Crown in Denver. Power to Play has good reputation, but they are not attracting too any teams from Denver area due to accessibility challenges and limited by spectator space.  Triple Crown would likely drive a few events to any new facility in Fort Collins. This is a major advantage.  Denver is not a premier destination for major AAU basketball events that attract Division One coaches due to accessibility constraints. A Fort Collins complex likely wouldn’t be able to host national events, but could host smaller events.  Fort Collins would likely be destination for middle school age groups. High schoolers are playing more on a national circuit for events, and Denver is not a destination for high school events.  There are 30 to 40 AAU-sanctioned events currently occurring in market. There is enough club presence in Fort Collins area to drive middle school events, but high school will be difficult.  Middle school club basketball is now year-around. Many kids are just playing club ball now.  With 8 courts under one roof, there is opportunity for 15 to 20 weekend events each year. Events will likely attract Denver area clubs, but a portion may stay overnight. Tournament Opportunity Analysis ATTACHMENT 1 24 Other Opportunities Every community is looking for their “silver bullet” as it relates to hosting events and driving sports tourism. As detailed in the management analysis, owning and booking venues is hard work, especially due to the competition in the current environment. Esports, for instance, certainly presents opportunity, but with a few exceptional game and competitions, they are not driving significant traffic to a destination (sports tourism) and, as a local draw, present challenges since the real money is being made by the brands who push online viewing. Other trending non-traditional sports that may present opportunity at an indoor facility include:  Badminton, Fencing  Futsal, Team Handball, Weightlifting  Gymnastics – Need local gym operator who wants to be a promoter  Martial Arts (all disciplines) A few of these sports were identified as opportunities throughout the market analysis. While these sports are unlikely to drive multiple major annual events to a new complex in Fort Collins, a new venue would be able to accommodate a variety of other flat-floor sports. These were assumed in the projections in Chapter 10 and 11. Tournament Opportunity Analysis ATTACHMENT 1 25 Hotel Performance Hotel Market Analysis The adjacent table summarizes the performance of the competitive hotel set over the last five years. After three years of stagnant performance, new supply entered the market in 2018, resulting in increased hotel room night demand. While occupancy decreased, the market is expected to stabilize once the new hotel properties are absorbed. Average Daily Rate (ADR) is at a level ($108) that is relatively attractive for event planners and tournament organizers. ATTACHMENT 1 26 Heat Charts Hotel Market Analysis The adjacent table shows the occupancy by day of the week per month for the twelve months following September 2017. Days of the week with occupancy between 75 and 80 percent are shown in yellow, suggesting mild displacement and unaccommodated demand. Orange shows days with 80 to 90 percent occupancy, suggesting very likely displacement. Days in red are for times when occupancy was beyond 90 percent for the set, suggesting near-certain displacement. As shown, there is a significant opportunity to fill gaps the annual hotel calendar on the weekends in winter months. This coincides with the timing for indoor winter sports tournaments and other flat-floor events. Due to the high occupancy levels in the summer months (greater than 80 percent), new hotel development will likely be necessary in order to capture the entirety of the impact generated from an outdoor complex. ATTACHMENT 1 27 Heat Charts Hotel Market Analysis Consistent with the previous slide, the adjacent heat chart demonstrates attractive weekend rates for price-conscious tournament organizers, especially in the winter months. Rates at competitive hotels are the lowest on the weekends in the winter months. Once again, this is a positive indicator for an indoor sports opportunity in a new complex in Fort Collins. ATTACHMENT 1 28 Executive Summary Executive Summary Based on the results of the market analysis detailed throughout this report, HSP presents the following headlines.  HSP’s analysis indicates significant opportunity for a new sports complex in Fort Collins to both accommodate local demand and drive sports tourism to the city. The economic and demographic profile of the community, combined the destination appeal of Fort Collins, the presence of large premier area sports organizations, and passionate local stakeholders, suggests that the demand for both indoor and and outdoor sports exceeds the existing supply. While there are challenges facing the community, the level of opportunity HSP identified may result in a phased project that will establish Fort Collins as a regional and perhaps, national destination for sports tourism.  Locally, the lack of available, quality indoor athletic facilities presents major challenges for area clubs, both indoor and outdoor sports, to train and practice throughout the season and offseason. HSP’s analysis suggests that there is enough demand generated by Fort Collins area organizations to fill a new court/gymnasium facility in the evenings throughout the winter season and drive significant rental revenue to any new indoor complex. However, due to the structure of the sport of volleyball in the state, there are only two existing major multi-day volleyball tournaments in the entire Denver market. The development of a flexible indoor court complex would certainly result in the creation of new local and regional events and would also be able to accommodate other flat-floor activities such as pickleball, wrestling, robotics, indoor drones and Esports, but the primary benefit would be to Fort Collins area sports organizations.  In addition, there is a significant demand for indoor synthetic turf training space from baseball, softball, and soccer organizations in the winter months. However, the development a an indoor multipurpose space would likely serve the local population with the shortfall of gym space, but may only generate minimal net new economic impact in the community. If the goal of any new development in Fort Collins is to drive sports tourism, visitation, and hotel room nights, there may greater opportunity with a different type of development. ATTACHMENT 1 29 Executive Summary Executive Summary  The presence of Fort Collins-based Triple Crown Sports presents tremendous advantages for any future sports development in the market. The organization is very excited about the potential opportunity in Fort Collins not only as event producers, but as residents that understand everything the community has to offer. Fort Collins offers the amenities necessary to drive national sports tourism, other than an appropriate venue and adequate hotel supply to support that venue. If a quality 16-diamond field complex with the appropriate support amenities were developed in Fort Collins, Triple Crown would relocate existing national events to Fort Collins and create new events in the market. Triple Crown would produce up to 10 national events each year, the majority of which would be at least 3 days and would bring more than 100 teams to Fort Collins. There would likely be opportunity for an additional 10 events produced by other governing bodies. Triple Crown suggested that future phases should include multipurpose fields, pickleball, an indoor event center, and ice and water complexes.  While an outdoor diamond complex may present the greatest opportunity for hosting impactful events, the existin hotel market ill present challen es. The majority of the branded select-service properties in Fort Collins are performing at greater than 75 percent occupancy from June through September, the primary season for outdoor baseball, softball, and soccer events. If Fort Collins cannot capture the room night demand driven by an outdoor complex, then surrounding communities may reap the rewards of Fort Collins’ investment. New hotel development may be necessary to support a new outdoor sports complex development.  If not for Triple Crown’s presence in the community and interest in producing events, S s primary recommendation ould be to de elop an indoor court complex. This is not only due to the level of demand locally and the potential development of a competitive new outdoor complex in Windsor, but also the lack of competitive supply indoor regionally and the hotel seasonality. However, an organization with the size and resources of Triple Crown, as well as the proven ability to produce major impactful athletic events, should not be ignored. It will be up to Fort Collins’ leadership to determine the goals of any sports development project. ATTACHMENT 1 30 Executive Summary Executive Summary  Ice and aquatics complexes, generally, are extremely difficult to operate financially and do not generate the amount of economic impact that traditional sports complexes generate. While there is certainly need for another pool in the market for school and club swim teams, the limited impact potential combined with the proposed ice and aquatics development in Larimer County, indicate that ice and aquatics should not be a top priority for a new Fort Collins complex. In addition, there is opportunity to grow the sports of tennis locally with new facility development, specifically indoor. But the impact potential of tennis is limited due to the number of athletes that tournaments attract.  n a market ith such opportunity it ill likely be up to city leadership to determine the priority of any ne sports de elopment accommodatin local needs s hostin national e ents and dri in sports tourism There is opportunity for both in Fort Collins  The sports complex location will be important. Sports and event facilities benefit the most when located in close proximity to a community’s hospitality package. The amenities that make an attractive package include amenities such as hotels, restaurants, access to major transportation routes. Additional criteria that can impact the feasibility of a project include site ownership/control, cost of acquisition (if any), as well as sitework and construction costs. Only three sites identified by the project team are large enough to accommodate full build-out (indoor and outdoor) plus room for future expansion. These are detailed in the site analysis.  Sport tourism represents one of the fastest growing sectors in tourism. Destinations that foster the inner sport tourism entrepreneur will gain success by building programs of events and activities that deliver sustainable economic, social and promotional benefits. As Fort Collins looks to the future, the community must continually adapt to remain a sports tourism destination. When it comes to driving tourism, filling hotel rooms and generating economic impact in the community, the landscape of tourism, hospitality and destination appeal is competitive, and the more that can be done to connect with visitors, the better. As consumer desire or demand grows, Fort Collins needs to be strategic and encourage sport tourism innovation. ATTACHMENT 1 31 Executive Summary Executive Summary HSP’s recommendations for Fort Collins include one of two initial development scenarios: Develop a new, 8-court (regulation basketball; 16 volleyball) indoor sports facility that can accommodate mid-week demand driven by local groups and host basketball tournaments, volleyball, wrestling, and other flat-floor sports (and non-sports) events during the off-season for area hoteliers. (Scenarios 1-A and 1-B) or Develop a new 16-diamond synthetic turf outdoor sports facility (with multipurpose field overlays) that can host major regional and national baseball and softball tournaments, driven in part by demand generated by Triple Crown. (Scenario 2) Long-term, HSP recommends that any project consider the opportunity for future expansion that includes both indoor and outdoor components. This was considered in the site analysis. Establish a clear vision and management strategy for the facility, which allows for more freedom and entrepreneurial methods of attracting business. There are a variety of operational models that exist across the country in addressing this increased demand on recreational facilities usage for purposes of economic development (tourism). A close working relationship must exist between business development (tourism driven) efforts and facility operations. Amutualunderstandingandrespectofeachstakeholder’sgoals,objectives and priorities should be reviewed and discussed. Create a model to reinvest a portion of economic impact to the proposed facility. This may take the form of fees or assessments that are dedicated to the facility from revenue sources such as hotel tax and sales tax. The economic, fiscal and employment impact of these investments will be significant in terms of new supported jobs, spending, hotel room nights, and local taxes. ATTACHMENT 1 32 Additional Context Executive Summary Additional questions arose in response to HSP’s assumptions and recommendations. They are clarified below: t seems as thou h the hotels are currently busy durin the summer months ill an outdoor complex create a lot of economic de elopment A: As shown in our analysis, Fort Collins hotels are highly occupied during summer weekends. If a new outdoor complex is developed, it is very likely that much of the hotel and restaurant impact will be compressed outside of the borders of Fort Collins to other nodes of hotels, restaurants and shopping, such as Loveland. This results in a lower impact than would otherwise be captured, unless and until more hotels are developed in Fort Collins. For this reason, the outdoor complex scenario generates about the same impact as the indoor complex, despite a much higher volume of overall usage in the outdoor complex. For the indoor complex, hotels are generally available to absorb most hotel and other impact in the colder months. As a result, the net impact to Fort Collins is similar for the indoor and outdoor complexes, suggesting a higher return on investment for the indoor facility. ill location of the facility affect the o erall economic impact enerated Location of the facility also may have effect on the overall economic impact generated. For example, restaurants and retailers located in Centerra or Windsor could realize more of the impact for a facility located on the east or south side of Fort Collins, versus a location more north, central or west in the community. Also, if a facility or complex is built in a difficult to access area, it could hinder its attractiveness and therefore, impact. ATTACHMENT 1 33 Additional Context Executive Summary One need that is missin at the current time in Fort Collins is an indoor turf field s this somethin to explore no or in the future A: An indoor turf option would be appreciated and used by local organizations, but would fail to bring many impactful tournaments and events. A single turf field is a great amenity and would be highly utilized throughout much of the year, but it does not have the ability to hold impactful tournaments, unless it is divided up into multiple smaller fields for very young players. Tournaments require multiple fields. The cost to develop multiple indoor fields is very high. While there are many needs in Fort Collins, the two scenarios recommended by HSP will provide a much more immediate economic impact as well as relieve pressure on local teams/facilities. e ha e heard that the indsor Softball/Baseball Complex may be re i ed oes this chan e the need of the outdoor diamond complex A: For several years, there were plans for a major sports complex, Rocky Mountain Sports Park, to be developed in Windsor, CO. This facility was originally slated to have dozens of fields, restaurants and hotels and would have had a major impact on any future development in Fort Collins. However, the complex has reportedly been cancelled in totality as of early 2019. The private development model for major youth sports complexes has not occurred with success in any market without public sector financing or significant participation. HSP believes that unless Windsor invests heavily in the project, a large complex there is highly unlikely. Outside of Triple Cro n Sports are there other roups that ould use the diamond complex A: There are a number of potential user groups identified as a result of the study. The other users are discussed in the report. HSP believes that the outdoor complex would be well utilized for tournaments and during weekdays, regardless if Triple Crown is involved in producing events. ATTACHMENT 1 34 Recommendations – Scenario 1-A Executive Summary 1. Main Entry Lobby 2. Gymnasium 3. Seating/Viewing Areas 4. Meeting Rooms 5. Food Service 6. Lockers (4) 7. Offices 8. Restrooms 9. Storage 10. MEP The adjacent figure, prepared by Perkins + Will, shows a concept layout for the recommended Scenario 1-A project, which includes eight regulation basketball courts (convertible to 16 volleyball courts). This concept includes all support components recommended by HSP for this scenario. Please note that this drawing is strictly conceptual at this time. There are advantages and disadvantages to separating the courts into two distinct event areas, as will be described later in this document. ATTACHMENT 1 35 Cost – Recommended Scenario 1-A The following data, prepared by Perkins + Will, details the expected project costs for the recommended Scenario 1–A project shown on the previous slide. Perkins + Will projects the 90,000-square foot complex to cost $27.85 million including site development and non-construction costs. The site area required for the indoor complex would range from 15-20 acres depending on specific site features and the final layout. Buildin Space Area Total Cost Lounge/Lobby Spaces 4,200 $1,571,200 Locker Rooms/Team Rooms 4,250 $1,523,200 Administrative Staff Areas 1,488 $546,560 Building Support, Mechanical, Maintenance 1,175 $332,800 Gymnasium 67,914 $18,255,283 Meeting/Multipurpose Rooms 2,750 $985,600 Concession/Food Service Area 3,125 $1,072,000 Family Entertainment Center (optional) 5,000 $1,792,000 Site Development $2,844,173 Total ro ected Cost for Secondary ecommendation * Total Cost includes construction and soft costs at a 28% multiplier for design fees, contingency, equipment, other project expenses Executive Summary ATTACHMENT 1 36 Recommendations – Scenario 1-B Executive Summary 1. Main Entry Lobby 2. Gymnasium 3. Seating/Viewing Areas 4. Meeting Rooms 5. Food Service 6. Lockers (4) 7. Offices 8. Restrooms 9. Storage 10. MEP 11. Indoor Turf Field ndoor Synthetic Turf HSP’s analysis determined that the lack of available indoor turf space, combined with harsh weather conditions the throughout the winter months and lack of indoor training space, suggests an opportunity for a multipurpose field component in a new indoor facility. The primary turf opportunity lies with practices and training for local sports organizations during the offseason. A FIFA-regulation synthetic turf multipurpose field that features drop-down dividers (allowing the complex to offer four separate fields) would also have the ability to host certain indoor soccer, baseball/softball, lacrosse, and other flat-floor events throughout the offseason. Due to the significant additional cost required to develop a this type of facility, HSP conducted a second scenario that includes all base-scenario 1-A recommendations with an attached multipurpose field. This is shown in the adjacent figure. ATTACHMENT 1 37 Cost – Scenario 1-B The following data, prepared by Perkins + Will, details the expected project costs for the recommended Scenario 1-B project shown on the previous slide. Perkins + Will projects the 188,000-square foot complex to cost $53.34 million including site development and non-construction costs. The site area required for the indoor complex would range from 25-30 acres depending on specific site features and the final layout. Executive Summary Buildin Space Area Total Cost Lounge/Lobby Spaces 4,200 $1,571,200 Locker Rooms/Team Rooms 4,250 $1,523,200 Administrative Staff Areas 1,488 $546,560 Building Support, Mechanical, Maintenance 1,175 $332,800 Gymnasium 67,914 $18,255,283 Turf Fieldhouse 97,900 $23,809,280 Meeting/Multipurpose Rooms 2,750 $985,600 Concession/Food Service Area 3,125 $1,072,000 Family Entertainment Center (optional) 5,000 $1,792,000 Site Development (additional costs for expanded project) $4,527,757 Total ro ected Cost for Secondary ecommendation ATTACHMENT 1 38 The outdoor Scenario 2 recommendation, prepared by Perkins + Will, represents a concept layout for a roughly 80 acre site including the following:  16 synthetic turf baseball diamonds arranged in (4) four-plex clusters.  8 synthetic fields would be full-sized (400’) for adult, high school and collegiate league use  8 synthetic turf fields would be youth sized (300’) for ages up to 13 years.  The fencing is arranged to allow for multipurpose fields to be striped in the outfield of each diamond. The complex includes parking for at least 450 vehicles, paving, site circulation, viewing and gathering plazas, and area for site maintenance, drainage and detention. Recommendation – Scenario 2 Executive Summary Site 4 baseball area re diamond uirement 4-plexes with circulation and practice areas 36.0 acres Parking for approximately 450 cars 4.0 acres Multiply developed area by roughly 2.00 for buffers, paving, detention, etc. 40.0 acres Total estimated Site area re uired for Baseball/M Fields Complex acres ATTACHMENT 1 39 Recommendation – Scenario 2 Cost The following data, prepared by Perkins + Will, details the expected project costs for the recommended Scenario 2 project shown on the previous slide. Perkins + Will projects the 80 acre complex to cost $27 million including site development and non-construction costs. ro ect cate ory Total Cost Baseball Fields Development $16,758,840 Fields, field lighting, lawn areas, restroom & concession buildings, dugouts, seating Parking and Driveways $2,468,000 Parking lots, driveways, specialty paving, sidewalks, signage General Site Development $1,465,070 Grass, landscaping, trees, fencing, furnishings, enclosures, etc. Site Lighting $135,000 Lighting for parking lots, driveways, pedestrian Development Costs (water taps, utility development fees, reports, submittals) $750,000 Non-construction costs (design & engineering fees, contingencies, equipment) $5,257,728 Total ro ected Cost for rimary ecommendation Executive Summary ATTACHMENT 1 40 Summary of Scenarios Executive Summary The adjacent tables compares the cost, performance, and projected impact of the three sports complex development scenarios. While Scenario 1-B (with an attached synthetic turf multipurpose field) will accommodated excess demand generated by local groups and teams for offseason practice and training, the incremental benefit to the community as a result of net new visitation and spending is minimal compared to scenario 1-A. Scenario 2 generates the greatest impact of the three facilities, but the impact is limited due to the existing hotel demand in the summer months in Fort Collins. Conversely, indoor complexes generate the majority of their impact and room nights throughout the winter months, allowing Fort Collins to capture the majority of the impact driven by the facility. Fort Collins Summary of Scenarios Scenario A ndoor Courts Scenario B Courts ith ndoor Multipurpose Scenario Outdoor iamonds Facility Size 90 000 SF 188 000 SF 80-90 acres Pro ected Cost 27.9 million 53.3 million 27.0 million of Annual Events Stabilized 90 101 39 Annual Event Attendance Stabilized 76 400 83 600 131 700 Net Operating Income Loss - ear 5 - 111 000 - 92 000 - 255 000 Total Annual Room Nights Generated ear 5 12 259 13 713 24 573 Net New Room Nights Captured in Fort Collins 11,646 13,028 13,269 Net New Spending 20 years 138 849 000 154 042 000 201 908 000 FTE Jobs Supported 117 133 151 New Taxes Collected 20 years 3 860 000 4 297 000 5 213 000 Source: Hunden Strategic Partners ATTACHMENT 1 Sports Complex (Options 1A/1B) 8 indoor courts for multi-sport, plus 1 indoor turf field for option B. Geared to supporting local use for year-round. Can also support possible regional tournaments and other events. Positive • Large indoor space could be used for shelter/gathering in the event of severe weather event to aid resiliency Negative • Only greenfield spaces have been identified for the site, so any development will disrupt natural environment Positive • Tournament use would promote some additional tourism and patronizing of local businesses, such as restaurants • Helps showcase Fort Collins as a destination • May alleviate some demand on existing recreation facilities Negative • None identified Positive • Provides additional opportunities to access physical activity • Indoor facility may promote more feeling of safety vs. outdoor recreation opportunities • Provides additional opportunity for all community members to access City services Negative • None identified Tradeoffs • Potentially neutral impact to transportation- could have reduced trip duration by adding a local facility, but the facility will also drive additional traffic. • There may be additional site dependent tradeoffs Mitigations • Building to LEED certification would mitigate energy use and climate action impacts Key Alignment: 2.1 Improve the community’s sense of place with a high value on natural areas, culture, recreation and park systems. ATTACHMENT 2 X X X ATTACHMENT 2 Sports Complex (Option 2) 16 lit outdoor synthetic fields for multi-sport. Geared to attract large tournaments and tourism focus. Can also support ongoing leagues, however we are not currently constrained on capacity. Positive • Synthetic fields require less water use than traditional fields, and does not require traditional combustion lawn equipment to maintain Negative • Only greenfield spaces have been identified for the site, so any development will disrupt natural environment • Synthetic turf requires replacement every 10-20 years and is not currently recyclable Positive • Ability to attract national tournaments would draw more visitors and tourism to the City, contributing to hotel, short-term rental, restaurant, and other sales tax growth • This facility would be the premier destination of it’s kind in Colorado, contributing to community brand and identity • May alleviate some demand on other community park facilities Negative • None identified Positive • Provides additional opportunities to access physical activity • Provides additional opportunity for all community members to access City services Negative • None identified Tradeoffs • Potentially neutral impact to transportation- could have reduced trip duration by adding a local facility, but the facility will also drive additional traffic. • There may be additional site dependent tradeoffs Mitigations • Using synthetic turf mitigates water impacts • Using energy efficient grade materials (such as LED lighting for fields) will minimize energy impacts Key Alignment: 2.1 Improve the community’s sense of place with a high value on natural areas, culture, recreation and park systems. 3.6 Enhance the economic vitality of our community. ATTACHMENT 2 ATTACHMENT 2 Economic Health Office 300 LaPorte Avenue PO Box 580 Fort Collins, CO 80522 970.221.6505 970.224.6107 - fax fcgov.com MEMORANDUM DATE: July 24, 2019 TO: Mayor and Councilmembers CC: Darin Atteberry, City Manager; Jeff Mihelich, Deputy City Manager; Jacqueline Kozak-Thiel, Chief Sustainability Officer Josh Birks, Economic Health and Redevelopment Director FROM: Denichiro “Denny” Otsuga, Chair – Economic Advisory Commission; Connor Barry, Vice-Chair – Economic Advisory Commission; and Members, Economic Advisory Commission for 2019 RE: SPORTS COMPLEX FACILITY FEASIBILITY STUDY On July 17, the Economic Advisory Commission (EAC) heard a presentation on a potential multi-use sports complex that could drive sports tourism to the City. The purpose of this memorandum is to provide a summary of EAC’s discussion and comments based on this presentation. Summary of Discussion: • Several Commission members noted that the opportunity costs of building a sports complex must be fully considered, including: - Use of City of Fort Collins tax dollars especially if a sports complex does not “pay for itself”, that is, if it will be subsidized specifically for the sports tourism. - Commercial or other uses of the land since there is limited availability of undeveloped land. - The Commission has concerns on the facility’s capacity to generate sales tax revenue for the City, that is realistic, accounting for the historical leakage of benefits to surrounding communities. - Other potential investments in tourism (e.g. upcoming regional tourism plan). Does building this complex preclude other investments that might be a better fit for Fort Collins and/or provide greater increased tax revenue? • Encouraged staff to formulate innovative ways to leverage this proposal with other projects. For example, use of an outdoor complex that doubles as a community park; combined development with hotels and other commercial development to help pay for the capital costs of the complex; marketing plan and campaign for the city and the region to ensure maximum use of the facility. • The Commission noted the significant local demand for indoor facilities (as confirmed by the presenting staff) that differs from one targeted to regional tourism. ATTACHMENT 3 ATTACHMENT 4 1 Fort Collins Sports Facility: Impact and Feasibility Analysis Report Presenters: Wendy Williams, Bob Adams, Rob Hunden ATTACHMENT 5 Background • The 2017-2018 budget included funding for a Sports Complex Economic Impact and Feasibility study. • Hunden Strategic Partners (HSP), including staff at Perkins + Will, was hired through a competitive RFP process in 2018. 2 ATTACHMENT 5 Impact and Feasibility Study • Hunden Strategic Partners conducted a comprehensive analysis around the development of a multi-use facility within city limits. • Findings from the study outlined the following options for the proposed sports complex: • Option 1: Build a complex that is designed to address local, community needs • Option 2: Build a complex that is designed to drive local sports tourism and economic impact • Option 3: Build a complex that addresses both priorities in some way 3 ATTACHMENT 5 Questions for Council • What additional information, if any, does Council think would be helpful? • What are the priority gaps this project should address? • Parks and Recreation Policy Plan – focusing on local needs • Tourism Master Plan – focusing on economic impact and growth • Does Council want to move forward with this project? • Should staff pursue opportunities for potential partnerships or donative relationships? 4 ATTACHMENT 5 Executive Summary The Hunden Strategic Partners Team, including professionals at Perkins + Will, was engaged by the City of Fort Collins to conduct a comprehensive market, financial feasibility, and economic impact analysis for the development of a sports facility within the city limits. The key questions that HSP was tasked to answer were:  What is the market opportunity for a new indoor or outdoor sports complex development in Fort Collins?  What is the existing supply of sports and recreation facilities in Fort Collins and the surrounding area? Is there a gap in quality or size of facilities? What is the level of local demand for a new sports complex?  What is the existing state and greater regional supply of sports complexes capable of hosting impactful tournaments and events? Is there a gap in supply that a new Fort Collins facility could accommodate? What is the opportunity to host major state and regional tournaments?  How is the area hotel market performing? What does this mean for the market opportunity for a new sports complex?  Based on the comprehensive market analysis, what are the conclusions and recommendations? Should multiple scenarios be considered?  How is the recommended sports facility projected to perform? What is the expected economic, fiscal, and employment impact of such a development?  What are the site options for such a development? What are the pros and cons of the potential development sites? Executive Summary 5 ATTACHMENT 5 Drive Time Demographics Due to Denver’s distance from surrounding metropolitan hubs, the majority of the tournament and event attendees will likely come from within this three-hour radius (population: 5.3 million) Economic, Demographic, and Tourism Analysis 6 ATTACHMENT 5 Relevant Hotel Supply Approximately 3,100 rooms among 33 hotels are currently offered in Fort Collins. 7 Fort Collins Hotel Supply Property Distance Rooms Chain Scale Open Autograph Collection The Elizabeth Hotel 0.1 164 Upper Upscale Dec-17 The Armstrong Hotel 0.2 45 Indep Jun-28 Best Western University Inn 0.8 70 Midscale Jun-61 El Palomino Motel 1.2 36 Indep Jun-43 Hilton Fort Collins 1.4 256 Upper Upscale May-85 Budget Host Fort Collins 1.5 30 Economy Jun-74 Best Western Kiva Inn 1.6 62 Midscale Feb-82 Americas Best Value Inn Fort Collins 1.7 40 Economy Aug-61 Marriott Fort Collins 3.3 229 Upper Upscale Jun-85 Days Inn Fort Collins 3.5 77 Economy Jun-81 Motel 9 3.5 35 Indep Jun-88 Super 8 Fort Collins 3.6 69 Economy Jun-85 La Quinta Inns & Suites Fort Collins 3.6 135 Midscale Jun-72 Baymont Inn & Suites Fort Collins 3.6 62 Midscale Jul-95 Quality Inn & Suites I 25 North Fort Collins 3.7 87 Midscale Dec-14 Clarion Inn Fort Collins 3.7 110 Upper Midscale Nov-65 Quality Inn & Suites University Fort Collins 3.7 66 Midscale Jun-97 Motel 6 Fort Collins 3.8 127 Economy Sep-78 Comfort Inn Fort Collins North 3.8 62 Upper Midscale Nov-00 Americas Best Value Inn & Suites Ft Collins E at I 25 4.1 120 Economy Jun-85 Candlewood Suites Fort Collins 4.1 83 Midscale Dec-14 Courtyard Fort Collins 4.5 112 Upscale Mar-96 Holiday Inn Express & Suites Fort Collins 4.6 89 Upper Midscale Oct-05 Comfort Suites Fort Collins 4.6 66 Upper Midscale Jul-98 Homewood Suites by Hilton Fort Collins 4.6 99 Upscale May-07 Hampton Inn Fort Collins 4.6 75 Upper Midscale Oct-96 Residence Inn Fort Collins 4.6 113 Upscale Jul-99 Home2 Suites by Hilton Fort Collins 4.9 108 Upper Midscale Apr-18 Hilton Garden Inn Fort Collins 5.2 120 Upscale Sep-07 Cambria hotel & suites Fort Collins 5.3 90 Upscale Sep-08 Fairfield Inn & Suites Fort Collins South 5.6 106 Upper Midscale Nov-18 AmericInn Lodge & Suites Fort Collins South 8.8 61 Midscale Nov-00 Days Inn Wellington Fort Collins Area 8.8 93 Economy Jun-04 Total/Average 3.72 3,097 -- Jun-90 Source: Smith Travel Research Hotel Market Analysis ATTACHMENT 5 Lodging Summary The existing hotel supply has a fairly even distribution among chain scales, providing different price points and quality levels for potential visitors. Hotel Market Analysis 8 ATTACHMENT 5 Map Tournaments and groups for sports typically prefer lower-cost, branded hotels with built-in breakfast, such as Hampton Inn, Fairfield, Hyatt Place, etc. Due to cost and efficiency, they tend to avoid full-service hotels. The majority of the preferred branded, select service hotels are located 4.5 miles south of downtown Fort Collins. Hotel Market Analysis 9 ATTACHMENT 5 Local Athletic Supply - Outdoor Fort Collins area clubs are leaving the city and traveling to Loveland and Greeley for weekend tournaments throughout the summer months. 10 Local Outdoor Athletic Complex Supply Venue Location Outdoor Multipurpose Multipurpose Turf Fields Outdoor Baseball/Softball Basketball Tennis Sand Volleyball Other City Park Fort Collins -- -- 2 -- -- -- Baseball field with bleachers and adjacent softball field Edora Park Fort Collins -- -- 2 -- 6 -- Fort Collins Soccer Complex Fort Collins 11 -- -- -- -- -- Field arrangement and quantity can vary Fossil Creek Park Fort Collins -- -- 2 2 5 -- Greenbriar Park Fort Collins -- -- 2 -- -- -- Martinez Park Fort Collins -- -- 2 3 4 -- Rolland Moore Park Fort Collins -- -- 4 5 8 2 Temporary multipurpose fields can be created in the outfield Spring Canyon Park Fort Collins -- -- 2 3 3 2 Spring Park Fort Collins -- 2 -- -- -- Troutman Park Fort Collins 4 -- -- 1 2 -- Twin Silo Park Fort Collins -- -- 2 -- 4 -- Warren Park Fort Collins 2 -- 1 1 4 1 Barnes Park Loveland -- -- 10 -- -- -- Batting cages Centennial Baseball Complex Loveland -- -- 6 -- 4 -- Loveland Sports Park Loveland 8 1 -- 2 -- 2 One turf championship field Diamond Valley Sports Complex Windsor -- -- 3 -- -- -- Source: Various Sources Local Sports Supply Analysis ATTACHMENT 5 Local Athletic Supply Local Sports Supply Analysis 11 ATTACHMENT 5 Local Athletic Supply As shown, only one facility in Fort Collins area offers more than two basketball courts in one location, indicating a major supply gap. 12 Relevant Local Indoor Athletic Complex Supply Venue Location Indoor Synthetic Turf Basketball Volleyball Indoor Tennis Pool Ice Other The Edge Sports Center* Fort Collins 1 -- -- -- -- -- Batting cages Endora Pool Ice Center (EPIC) Fort Collins -- -- -- -- 1 2 10-lane, 50m pool, seating for 1,000 Mulberry Pool Fort Collins -- -- -- -- 1 -- 6-lane, 25-yard NoCo Ice Center Fort Collins----------1 Northside Aztlan Community Center Fort Collins -- 3 3 -- -- -- Weight room Fort Collins Senior Center Fort Collins -- 1 1 -- 1 -- 4-lane, 25-yard Budweiser Events Center Loveland -- 1 1 -- -- 1 7,200-seat arena Arena Sports LLC* Windsor 1 -- 3 -- -- -- Norco Volleyball Club Windsor -- -- 6 -- -- -- Power 2 Play Sports Events Center Windsor -- 6 6 -- -- -- Concession and lounge area between courts *Uncertain future Source: Various Sources Local Sports Supply Analysis ATTACHMENT 5 Local Athletic Supply Local Sports Supply Analysis 13 ATTACHMENT 5 Competitive Regional Supply Aurora Sports Park and Dick’s Sporting Goods Park, which both offer ore than 24 fields, are considered the premier outdoor multipurpose complexes in Denver market and are the primary destinations for existing outdoor events. State and Regional Sports Analysis 14 ATTACHMENT 5 Competitive Regional Supply State and Regional Sports Analysis 15 ATTACHMENT 5 Competitive Regional Supply Overall, HSP’s analysis suggests that the competitive supply of comprehensive indoor complexes capable of accommodating tournaments is lacking compared to outdoor complexes. 16 Relevant Indoor Regional Athletic Supply Venue Location Distance from Fort Collins (mi) Indoor Synthetic Turf Basketball Volleyball Indoor Tennis Pool Ice Veterans Meorial Aquatics Center Thornton, CO 52.0 -- -- -- -- 1 -- George J Meyers Pool Arvada, CO 53.7 -- -- -- -- 1 -- Sport Stable Superior, CO 58.4 1 2 4 -- -- 1 Ice Centre at Promenade Westminster, CO 59.1 -- -- -- -- -- 3 Gold Crown Fieldhouse Lakewood, CO 68.0 -- 6 8 -- -- -- Carmody Recreation Center Lakewood, CO 74.2 -- -- -- -- 1 -- Colorado Momentum Volleyball Centennial, CO 80.3 -- -- 4 -- -- -- Colorado Volleyball Association Englewood, CO 82.3 -- -- 3 -- -- -- Play it Now Sports Colorado Springs, CO 130.0 1 -- 4 -- -- -- Source: Various Sources State and Regional Sports Analysis ATTACHMENT 5 Competitive Regional Supply State and Regional Sports Analysis 17 ATTACHMENT 5 Triple Crown Sports  The group will produce 119 events in 36 states in 2019. Approximately 70 percent of the events are baseball or fast-pitch softball, while the remainder are comprised of lacrosse, basketball, and volleyball.  Triple Crown produces the largest softball event in the country over the 4th of July. The event uses fields across 27 cities in Colorado. Triple Crown also produces the 2nd largest baseball event in the country in Omaha during College World Series. 18  The average event is 3.5 days. Some national events last a week, while other events are smaller regional two- day events. The typical overnight stay is three or four nights per visitor.  They are currently producing 12 baseball events and 6 fastpitch events in the state of Colorado. These are occurring in Aurora, Johnstown, Windsor, Loveland and Fort Collins. Events typically last 3 days and attract 150 teams per event. Demand Analysis and Stakeholder Feedback ATTACHMENT 5 Triple Crown Sports The adjacent figure shows an example of cut-out wings for outfield overlays with multipurpose fields. Demand Analysis and Stakeholder Feedback 19 ATTACHMENT 5 Triple Crown Sports  This facility, with 16 synthetic turf diamonds and multipurpose fields overlays, would be the premier outdoor diamond complex in the state.  With 16 fields, the complex could host up to 75 teams, plus an additional 50 teams throughout the city. This venue would attract 125 teams over three days, on average. Some events would last five or six days. 20  Future phases of development recommended by Triple Crown include:  24 pickleball courts  A 500,000-square foot convention center for basketball and volleyball events  A dedicated indoor complex with six to eight basketball courts would certainly accommodate demand from area clubs, but the events would be locally and regionally-based. This type of facility would not be large enough to attract national events. Demand Analysis and Stakeholder Feedback ATTACHMENT 5 Volleyball Stakeholders  NORCO built their own complex and a few clubs are training at Power to Play, but many clubs are utilizing any available gym space they can find. This includes senior centers, churches, elementary schools, which present limited availability and scheduling challenges.  Area clubs are constantly travelling to Colorado Springs and Denver for Sunday events. 21  Sixcourtsinonelocationwouldmeet needs of Fort Collins area volleyball clubs, but it would not meet the needs of all of Northern Colorado. The entire region is lacking training space.  There is a major need for indoor court training and practice space for area volleyball programs. There is a waiting list for many clubs due to lack of court times. Demand Analysis and Stakeholder Feedback ATTACHMENT 5 USA Volleyball Rocky Mountain Region Tournament Opportunity Analysis 22  One-day tournaments, the Power League, occur every Sunday from January through April. Two major multi- day events currently occur in the region (downtown Denver) each year over Martin Luther King and Presidents Day Weekend.  There are six or seven 2- and 4- court volleyball facilities in greater Denver market that are run by premier clubs or third parties. These are the primary indoor venues in addition to Power to Play.  A new facility would absolutely be occupied by area clubs during the week. With 6 regulations courts, it would host 24-team Power Leagues on Sundays, with up to 25 percent potentially staying overnight.  There is also potential for area clubs to create and host their own events in a new facility. The demand is there. ATTACHMENT 5 AAU Basketball Colorado 23  The state is in desperate need of a comprehensive indoor facility. AAU programs and events are typically relegatedtohighschoolgymnasiums due to lack of available court space in the market.  AAU events are currently occurring at Power to Play or Gold Crown in Denver. Power to Play has good reputation, but they are not attracting too any teams from Denver area due to accessibility challenges and limited by spectator space.  There are 30 to 40 AAU-sanctioned events currently occurring in market. There is enough club presence in Fort Collins area to drive middle school events, but high school will be difficult.  With 8 courts under one roof, there is opportunity for 15 to 20 weekend events each year. Events will likely attract Denver area clubs, but a portion may stay overnight. Tournament Opportunity Analysis ATTACHMENT 5 Other Opportunities 24 Other trending non-traditional sports that may present opportunity at an indoor facility include:  Badminton, Fencing  Futsal, Team Handball, Weightlifting  Gymnastics – Need local gym operator who wants to be a promoter  Martial Arts (all disciplines) A few of these sports were identified as opportunities throughout the market analysis. While these sports are unlikely to drive multiple major annual events to a new complex in Fort Collins, a new venue would be able to accommodate a variety of other flat-floor sports. These were assumed in the projections in Chapter 10 and 11. Tournament Opportunity Analysis ATTACHMENT 5 Hotel Performance After three years of stagnant performance, new supply entered the market in 2018, resulting in increased hotel room night demand. Average Daily Rate (ADR) is at a level ($108) that is relatively attractive for event planners and tournament organizers. Hotel Market Analysis 25 ATTACHMENT 5 Heat Charts As shown, there is a significant opportunity to fill gaps the annual hotel calendar on the weekends in winter months. This coincides with the timing for indoor winter sports tournaments and other flat-floor events. Due to the high occupancy levels in the summer months (greater than 80 percent), new hotel development will likely be necessary in order to capture the entirety of the impact generated from an outdoor complex. Hotel Market Analysis 26 ATTACHMENT 5 Heat Charts Rates at competitive hotels are the lowest on the weekends in the winter months. Once again, this is a positive indicator for an indoor sports opportunity in a new complex in Fort Collins. Hotel Market Analysis 27 ATTACHMENT 5 Executive Summary Based on the results of the market analysis detailed throughout this report, HSP presents the following headlines:  HSP’s analysis indicates significant opportunity for a new sports complex in Fort Collins to both accommodate local demand and drive sports tourism to the city.  The economic and demographic profile of the community, combined with the destination appeal of Fort Collins, the presence of large premier area sports organizations, and passionate local stakeholders, suggests that the demand for both indoor and outdoor sports exceeds the existing supply.  The development of a flexible indoor court complex would certainly result in the creation of new local and regional events and would also be able to accommodate other flat-floor activities such as pickleball, wrestling, robotics, indoor drones and Esports, but the primary benefit would be to Fort Collins area sports organizations.  There is a significant demand for indoor synthetic turf training space from baseball, softball, and soccer organizations in the winter months. If the goal of any new development in Fort Collins is to drive sports tourism, visitation, and hotel room nights, there may greater opportunity with a different type of development. Executive Summary 28 ATTACHMENT 5 Executive Summary  The presence of Fort Collins-based Triple Crown Sports presents tremendous advantages for any future sports development in the market. Triple Crown would produce up to 10 national events each year, the majority of which would be at least 3 days and would bring more than 100 teams to Fort Collins. There would likely be opportunity for an additional 10 events produced by other governing bodies. Triple Crown suggested that future phases should include multipurpose fields, pickleball, an indoor event center, and ice and water complexes.  While an outdoor diamond complex may present the greatest opportunity for hosting impactful events, the existing hotel market will present challenges. If Fort Collins cannot capture the room night demand driven by an outdoor complex, then surrounding communities may reap the rewards of Fort Collins’ investment. New hotel development may be necessary to support a new outdoor sports complex development.  If not for Triple Crown’s presence in the community and interest in producing events, HSP’s primary recommendation would be to develop an indoor court complex. This is not only due to the level of demand locally and the potential development of a competitive new outdoor complex in Windsor, but also the lack of competitive supply indoor regionally and the hotel seasonality. Executive Summary 29 ATTACHMENT 5 Executive Summary  Ice and aquatics complexes, generally, are extremely difficult to operate financially and do not generate the amount of economic impact that traditional sports complexes generate. While there is certainly need for another pool in the market for school and club swim teams, the limited impact potential combined with the proposed ice and aquatics development in Larimer County, indicate that ice and aquatics should not be a top priority for a new Fort Collins complex.  In a market with such opportunity, it will likely be up to city leadership to determine the priority of any new sports development: accommodating local needs vs. hosting national events and driving sports tourism. There is opportunity for both in Fort Collins.  The sports complex location will be important. Sports and event facilities benefit the most when located in close proximity to a community’s hospitality package. The amenities that make an attractive package include hotels, restaurants, access to major transportation routes. Executive Summary 30 ATTACHMENT 5 Executive Summary HSP’s recommendations for Fort Collins include one of two initial development scenarios: • Develop a new, 8-court (regulation basketball; 16 volleyball) indoor sports facility that can accommodate mid-week demand driven by local groups and host basketball tournaments, volleyball, wrestling, and other flat-floor sports (and non-sports) events during the off-season for area hoteliers. (Scenarios 1-A and 1-B) OR • Develop a new 16-diamond synthetic turf outdoor sports facility (with multipurpose field overlays) that can host major regional and national baseball and softball tournaments, driven in part by demand generated by Triple Crown. (Scenario 2) Long-term, HSP recommends that any project consider the opportunity for future expansion that includes both indoor and outdoor components. This was considered in the site analysis. • Establish a clear vision and management strategy for the facility, which allows for more freedom and entrepreneurial methods of attracting business. • Create a model to reinvest a portion of economic impact to the proposed facility. Executive Summary 31 ATTACHMENT 5 Recommendations – Scenario 1-A This concept includes all support components recommended by HSP for this scenario. Please note that this drawing is strictly conceptual at this time. Executive Summary 32 ATTACHMENT 5 Cost – Recommended Scenario 1-A Perkins + Will projects the 90,000-square foot complex to cost $27.85 million including site development and non-construction costs. The site area required for the indoor complex would range from 15-20 acres depending on specific site features and the final layout. Executive Summary 33 Building Space Area Total Cost ($) * Lounge/Lobby Spaces 4,200 $1,571,200 Locker Rooms/Team Rooms 4,250 $1,523,200 Administrative Staff Areas 1,488 $546,560 Building Support, Mechanical, Maintenance 1,175 $332,800 Gymnasium 67,914 $18,255,283 Meeting/Multipurpose Rooms 2,750 $985,600 Concession/Food Service Area 3,125 $1,072,000 Family Entertainment Center (optional) 5,000 $1,792,000 Site Development $2,844,173 Total Projected Cost for Secondary Recommendation $27,850,817 *Total Cost includes construction and soft costs at a 28% multiplier for design fees, contingency, equipment, other project expenses ATTACHMENT 5 Recommendations – Scenario 1-B Indoor Synthetic Turf: The primary turf opportunity lies with practices and training for local sports organizations during the offseason. A FIFA-regulation synthetic turf multipurpose field that features drop-down dividers (allowing the complex to offer four separate fields) would also have the ability to host certain indoor soccer, baseball/softball, lacrosse, and other flat-floor events throughout the offseason. Executive Summary 34 1. Main Entry Lobby 2. Gymnasium 3. Seating/Viewing Areas 4. Meeting Rooms 5. Food Service 6. Lockers (4) 7. Offices 8. Restrooms 9. Storage 10. MEP 11. Indoor Turf Field 11 3 4 5 1 7 8 3 2 10 9 6 ATTACHMENT 5 Cost – Recommended Scenario 1-A Perkins + Will projects the 188,000-square foot complex to cost $53.34 million including site development and non-construction costs.Thesitearearequiredfortheindoor complex would range from 25-30 acres depending on specific site features and the final layout. Executive Summary 35 Building Space Area Total Cost ($) * Lounge/Lobby Spaces 4,200 $1,571,200 Locker Rooms/Team Rooms 4,250 $1,523,200 Administrative Staff Areas 1,488 $546,560 Building Support, Mechanical, Maintenance 1,175 $332,800 Gymnasium 67,914 $18,255,283 Turf Fieldhouse 97,900 $23,809,280 Meeting/Multipurpose Rooms 2,750 $985,600 Concession/Food Service Area 3,125 $1,072,000 Family Entertainment Center (optional) 5,000 $1,792,000 Site Development (additional costs for expanded project) $4,527,757 Total Projected Cost for Secondary Recommendation 187,802 $53,343,681 ATTACHMENT 5 Recommendation – Scenario 2 The outdoor Scenario 2 recommendation, prepared by Perkins + Will, represents a concept layout for a roughly 80 acre site including the following: • 16 synthetic turf baseball diamonds arranged in (4) four-plex clusters. • 8 synthetic fields would be full-sized (400’) for adult, high school and collegiate league use • 8 synthetic turf fields would be youth sized (300’) for ages up to 13 years. • The fencing is arranged to allow for multipurpose fields to be striped in the outfield of each diamond. The complex includes parking for at least 450 vehicles, paving, site circulation, viewing and gathering plazas, and area for site maintenance, drainage and detention. Executive Summary 36 Site area requirement: 4 baseball diamond 4-plexes with circulation and practice areas 36.0 acres Parking for approximately 450 cars 4.0 acres Multiply developed area by roughly 2.00 for buffers, paving, detention, etc. 40.0 acres Total estimated Site area required for Baseball/MP Fields Complex 80.0-90.0 acres ATTACHMENT 5 Recommendation – Scenario 2 Cost Perkins + Will projects the 80 acre complex to cost $27 million including site development and non-construction costs. Executive Summary 37 Project category Total Cost ($) Baseball Fields Development $16,758,840 Fields, field lighting, lawn areas, restroom & concession buildings, dugouts, seating Parking and Driveways $2,468,000 Parking lots, driveways, specialty paving, sidewalks, signage General Site Development $1,465,070 Grass, landscaping, trees, fencing, furnishings, enclosures, etc. Site Lighting $135,000 Lighting for parking lots, driveways, pedestrian Development Costs (water taps, utility development fees, reports, submittals) $750,000 Non-construction costs (design & engineering fees, contingencies, equipment) $5,257,728 Total Projected Cost for Primary Recommendation $26,971,138 ATTACHMENT 5 Summary of Scenarios • While Scenario 1-B will accommodate excess demand generated by local groups and teams for offseason practice and training, the incremental benefit to the community is minimal compared to scenario 1-A. • Scenario 2 generates the greatest impact of the three facilities, but the impact is limited due to the existing hotel demand in the summer months in Fort Collins. • Indoor complexes generate the majority of their impact and room nights throughout the winter months, allowing Fort Collins to capture the majority of the impact driven by the facility. Executive Summary 38 Fort Collins - Summary of Scenarios Scenario 1-A (Indoor Courts) Scenario 1-B (Courts with Indoor Multipurpose) Scenario 2 (Outdoor Diamonds) Facility Size 90,000 SF 188,000 SF 80-90 acres Projected Cost $27.9 million $53.3 million $27.0 million # of Annual Events (Stabilized) 90 101 39 Annual Event Attendance (Stabilized) 76,400 83,600 131,700 Net Operating Income (Loss) - Year 5 -$111,000 -$92,000 -$255,000 Total Annual Room Nights Generated (Year 5) 12,259 13,713 24,573 Net New Room Nights Captured in Fort Collins 11,646 13,028 13,269 Net New Spending (20 years) $138,849,000 $154,042,000 $201,908,000 FTE Jobs Supported 117 133 151 New Taxes Collected (20 years) $3,860,000 $4,297,000 $5,213,000 Source: Hunden Strategic Partners ATTACHMENT 5 Questions for Council • What additional information, if any, does Council think would be helpful? • What are the priority gaps this project should address? • Parks and Recreation Policy Plan – focusing on local needs • Tourism Master Plan – focusing on economic impact and growth • Does Council want to move forward with this project? • Should staff pursue opportunities for potential partnerships or donative relationships? 39 ATTACHMENT 5 40 Fort Collins Sports Facility: Impact and Feasibility Analysis Report Presenters: Wendy Williams, Bob Adams, Rob Hunden ATTACHMENT 5 Potential Locations 41 ATTACHMENT 5 Potential Locations 42 Site Location Scenario Fit Mountain Vista Drive and Summitview Drive 1 and 2 Mountain Vista Drive and Giddings Road 1 and 2 East Vine Drive and West 1-25 Frontage Road 1 and 2 East Mulberry Street and Greenfield Court 1 and 2 (no future expansion) East I-25 Frontage Road and East Prospect Road 1 and 2 (no future expansion) East 1-25 Frontage Road, south of Mountain Vista Drive 1 and 2 (no future expansion) ATTACHMENT 5 Potential Locations 43 Site Location Scenario Fit East 1-25, south of East Vine Drive 1 East 1-25 Frontage Road at Mulberry and Cloverleaf Way 1 East 1-25 Frontage Road, north of East Vine Drive 1 ATTACHMENT 5