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Community Asset Amphitheater City of Sisters 2014.

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Presentation on theme: "Community Asset Amphitheater City of Sisters 2014."— Presentation transcript:

1 Community Asset Amphitheater City of Sisters 2014

2 City of Sisters Project at a glance: 1,850 fixed seats and up to 1,350 lawn seats for a total of 3,200 seats No additional taxes will be levied to develop and operate this project Parking is being provided at the venue (over 800 spaces within 700 feet) and parking management will be employed to distribute vehicles into town to promote commerce Traffic - Deschutes County Sheriffs Reserve Deputies will be available and deployed to manage traffic, parking and safety The venue is being designed to: Not create a significant amount of noise Contain the music coming from inside Operate no later than 10PM, with possible permitted exceptions to 10:30PM fewer than 6 times per year Airport – The venue has been discussed with the Oregon Department of Aviation. There are no significant issues related to the proposed venue and its proximity to the airport The project will operate an RV campground as well as a park and the actual amphitheater. It has been conservatively underwritten and is projected to generate sufficient revenue to pay for itself The estimated cost of all three components is approximately $4,000,000 The cost of the land is $600,000 which equates to approximately $1.20 per square foot, substantially below the current market value for the property There are many opportunities for local Vendors to sell food and retail items at the proposed venue 2

3 City of Sisters Strengths and Weaknesses: Strengths High Traffic Volume Schools Location: Outdoor Venues Existing Assets Strong Identity Strong Community and Volunteer Base Base of High Profile Events and Activities Room to Grow Infrastructure Capacity / Reliability Weaknesses / Challenges Need More Focus on Serving Visitor Base Need More Community Assets (Reasons to Visit and Stay) Weak Retail / Restaurant Sales Performance Need to Generate a Surplus in the Citys Operations in Order to Support Community Initiatives Need to Commit and Create an Economic Development Fund to Use to Provide Support for Existing and Prospective Businesses Need to Increase Youth Retention Through Increased and Improved Employment Opportunities Promote Smart Development (Smart = Viable and Successful) Increase Number of Events and Market them to Increase Attendance Increase Number of Sports / Activity Related Events and Market them to Increase Attendance 3

4 City of Sisters Successes and Failures: Success: Sisters has seen a significant amount of population growth in the past 13 years, 6.7% average per year Sisters has experienced some well-executed housing developments Sisters School District is among the strongest in the Region Sisters has long-standing, well-established and attended events Sisters western theme has created a strong identity for the community (strong branding) Cascade Avenue Remodel Airport Annexation and Remodel Extensive Trails Network Sewer and Water System with significant capacity for growth High Quality Public Assets Strong Collaboration Between Public Entities Economic Development Manager with an Office in City Hall Failures Previous attempts at promoting job creation through commercial / industrial land development Attracting large-scale employers Creating living-wage jobs Managing growth Initiating and implementing a community-wide plan (Good Work and Investment of Time by the Community) has to-date, produced few strong results 4

5 City of Sisters Solutions for Sisters (an Overview): Develop a Specific, Balanced Action Plan based on Community Input, To-date Maintain a Surplus in our Municipal Budget Deploy our Surplus to Attract Start-up and New Innovative Businesses Deploy resources to maintain Sisters as a first-class venue Incentivize and Promote Family Housing Accessible to People with Living-Wage Jobs Incentivize and Promote Attractive Hospitality Venues Marketing Campaign (including available infrastructure capacity) Community Events Calendar Attract and Incentivize Family / Living-Wage Employment Community Outreach and Engagement by Council Create and Maintain Community Assets / Activities: Projects – Streets, Sidewalks, Parks, Attractions (including Amphitheater), Ice Rink, Athletic Venues… More events during the shoulder seasons and winter season 5

6 City of Sisters Project Details: Project Mozart (Amphitheater) Community Involvement to-date: In 2006, the community had a discussion about the US Forest Service property and a group of people expressed an interest in the creation of an amphitheater project in Sisters When this Council convened in January of 2013, they held a goal- setting session and the amphitheater was underscored as an important goal for the Community After a number of meetings with the Forest Service, Council concluded that the forest service site would not be achievable in fewer than 10 years Upon seeking an alternative site, the current proposed site was identified Land negotiations began with the property owner and a refundable contract was entered in to 6

7 City of Sisters Project Details: Project Mozart (Amphitheater) Why? Sisters has over 4,000,000 vehicles per year driving through town (per ODOT) Sisters needs sticky assets that attract visitors and commerce to our community. One example of the need for more visitors, we have over 16 restaurants / restaurant spaces and not enough visitors to support these businesses. In order for a restaurant to be healthy, they require at least 2 to 3 turns of seating per day. The average restaurant has 30 seats, this means we need approximately 1,500 visitors to restaurants every single day. This is only one example Sisters has plenty of commercial space and retail businesses. It has high vehicle traffic coming through town. But, it lacks sufficient community assets to attract people to town to support these businesses. Too many of the vehicles coming through town do not stop and we need to try to change that 7

8 City of Sisters Project Details: Project Mozart (Amphitheater) Why? This amphitheater can create strong commerce in Sisters. By accommodating approximately 800 cars in the immediate vicinity of the amphitheater, we can push traffic to park downtown, thereby creating visitor traffic and commerce that would otherwise not exist Having visitors come to town, spend their money and leave is a successful model that is based on our community strengths This venue will not just be a revenue generator. It is an opportunity to create a focal point for the Sisters community. It will be made available to any and all appropriate events: Sunday Church services High School Graduation Sisters Outdoor Quilt Show Sisters Folk Festival 8

9 City of Sisters Potential Economic Impact Local Employment Each Concert Event should employ between 60 and 80 people on a full-time, part-time and hourly basis. The potential impact of these local employment dollars could reach over $700,000 per year Commerce The Britt in Jacksonville, Oregon is a 2,200 seat venue located in a small town that itself is located outside of a larger city (Medford): Many similarities to Sisters and Bend The Britt attracts between 45,000 and 60,000 visitors to Jacksonville each year These visitors spend in excess of an estimated $4,000,000 per year in addition to the ticket sales revenues that are generated by the venue of over $2,500,000 per year These monies would represent a substantial positive impact on the Sisters economy and the people that live here Dollars spent in our community circulate through our economy before they leave. Typically a multiplier of between 4 and 6 can be applied to a community of our size. This would mean that the overall economic impact of the proposed amphitheater could reach in excess of $18,000,000 of impact to our local economy Impact on the Development of the Northeast Quadrant of Sisters This project represents an opportunity to inject energy and focus into an area of town that is struggling 9

10 City of Sisters Economic Impact Visitor $$$$$ Amphitheater Hotel Restaurant Stores $$$$ $$$ Community of Sisters $$$ 10

11 City of Sisters Project Details: Urban Renewal – How does this work? How? Urban Renewal is a way for Property Taxes to be used to provide a revenue stream that must be leveraged to provide borrowed proceeds for Urban Renewal The Urban Renewal District was created in 2003 and includes the proposed property in the URA zone Basically, when the URA was created the property tax assessed value for the properties contained in it was identified. Once that base was identified, any increase in the assessed value in that zone goes to the Urban Renewal District. At present, the URD collects approximately $185,000 per year, which must be leveraged in order to do any Urban Renewal work. The map below shows the area of the Urban Renewal District as shaded in pink: 11

12 City of Sisters Project Details: Urban Renewal – How does this work? 2003 – URA Created, Assessed Values were at $36,400,000 As property assessed values have increased, the property taxes associated with that increase go into the URA Today, that tax revenue is approximately $185, per year The URA cant spend this money directly, by law it is required to leverage the $185, per year and use the borrowings for Urban Renewal projects Examples of URA projects are: Cascade Avenue Remodel, Main Avenue Remodel, Village Green and Fir Street Improvements, the new Fir Street Park, the SCSFD Fire Hall, the Schools Administration, City Hall and Library – Civic Center 12

13 City of Sisters Challenge - Parking How Can we manage all of the parking demand that this amphitheater will generate? If we sell out a concert, the venue will likely generate a maximum of 2,000 cars This compares to other events that occur in Sisters as follows: Sisters Outdoor Quilt Show – 10,000 attendees and 4,000 cars Sisters Folk Festival – 3,000 attendees and 1,500 cars Sisters Annual Lacrosse Invitational – 5,000 attendees and 2,000 cars There are over 800 parking spaces within 700 feet of the proposed venue, private property owners will have the opportunity to charge for parking. The City intends to charge for parking at the lot adjacent to the proposed venue 13

14 City of Sisters Challenge - Parking We will have traffic management support and signage to direct traffic to park on Larch, Adams, Main, Cascade and Hood Streets. There are over 1,600 parking spaces on these and side streets. The Deschutes County Sheriffs Department has responded to our inquiries and has advised us that they have reserve deputies available to help manage traffic and parking, as well as provide law enforcement support to the community. The cost of this support will be less than $500 per event. If a visitor can come to Sisters, listen to music and then leave, we run the risk of not generating beneficial economic impact, we need to direct traffic downtown so that visitors frequent businesses and commerce is generated Inviting our visitors to park downtown, have dinner, shop and take a walk to the venue will generate necessary business for our town 14

15 City of Sisters Challenge - Parking 15

16 City of Sisters Challenge - Traffic How Can we manage all of the traffic that this amphitheater will generate? If we sell out a concert, the venue will likely generate a maximum of 2,000 cars This compares to other events that occur in Sisters as follows: Sisters Outdoor Quilt Show – 10,000 attendees and 4,000 cars Sisters Folk Festival – 3,000 attendees and 1,500 cars Sisters Annual Lacrosse Invitational – 5,000 attendees and 2,000 cars We will have traffic management support and signage to direct traffic to park on Larch, Adams, Main, Cascade and Hood Streets. There are over 1,000 parking spaces on these streets. The proposed site offers 4 separate ingress / egress roads. These should permit traffic to distribute well both before and after an event. At 1,000 to 2,000 cars coming to Sisters, this compares favorably to the average traffic count through town of approximately 11,000 per day and up to 10 times that number on busy weekend days. We will have traffic management support and signage to direct traffic to park on Larch, Adams, Main, Cascade and Hood Streets. There are over 1,600 parking spaces on these and side streets. The Deschutes County Sheriffs Department has responded to our inquiries and has advised us that they have reserve deputies available to help manage traffic and parking, as well as provide law enforcement support to the community. The cost of this support will be less than $500 per event. 16

17 City of Sisters Challenge - Traffic 17

18 City of Sisters Challenge - Noise How Can we manage all of the noise that this amphitheater will generate? The team that has worked on the design thus far has looked at a number of well-executed venues Each well executed venue has one thing in common. The sound systems are well distributed throughout the venue. What this means is that when you place speakers throughout a venue, you dont need to blast music loudly in one area in order to have the sound reach the far side of the venue. Another way to address the noise is as follows: Design the venue to contain / control the sound Design the system to allow the sound to be monitored and adjusted when necessary Limit the performance hours to 10:00PM with the possible exception of no more than 5 times per year when the hours will be extended to 10:30PM 18

19 City of Sisters Challenge - Noise Conventional (Old) Model 115 Decibels Modern Model Decibels Normal Conversation is Db Instead of creating one or two "piles" of speakers that have to make enough sound for everyone, make lots of smaller lumps. The problem is that the amount of acoustical energy required to fill a large venue is significant. If it all emanates from a single location, it will be unbearable for a significant radius (which is governed by a combination of the inverse square log rule and the effect of the echoes that hang in the air after the original sound has passed). It becomes obvious that the more speakers you have the lower the sound level is that has to come out of them. The logical extension would be to give everyone headphones. The compromise should be to scatter speakers throughout the audience and then use digital delays to create a natural propagation of the sound through the space as though it all came from the stage. If this were done, then the effect of the echoes on the sound could be reduced to zero increasing the intelligibility of the program. = Pile Speaker = Smaller Speaker = Microphones 19

20 City of Sisters Proximity to Airport Is this location a danger because of its proximity to the Airport? We have discussed the proposed Amphitheater with the Oregon Department of Aviation. They have identified this site as being viable and are consulting the FAA to determine if any of the elements (the stage rooftop is approximately 35 feet tall as proposed) require a beacon for safety. The City intends to go through whatever process ODA requires. 20

21 City of Sisters How Will This Work? Revenues Revenue Sources will include the following: RV Campground (22 spaces) Performances (up to 25 per year – May through October) How? The City has placed the property in contract and engaged an architect to create conceptual renderings of the amphitheater. Thus far, the City has spent $8,000 of Urban Renewal Agency monies towards this project The City is in the process of gathering public input and then raising the funds to construct this asset. The project will include 3 distinct components, a Park (including family, art and Central Oregon immersion areas, an RV Campground and the Amphitheater Funding Sources include, a Bank Loan, Foundation and Local donations and Urban Renewal Funds No additional Taxes will be levied to create and pay for this asset What Will This Cost? The project will cost between $4.0 and $4.6 million dollars. The RV Campground should function as a substantial revenue source on a year-round basis Total Estimated Cost to City of Sisters = $250,000 This Portion of the Funding to come from the Urban Renewal Agency 21

22 City of Sisters How Will This Work? Revenues Revenue Sources will include the following (detailed on the spreadsheet on the spreadsheet on page 24): RV Campground (22 spaces) generating $50 per space at 80% occupancy for 4 months of the year and $20 per space at 20% occupancy for 8 months Performances (up to 25 per year – May through October), assuming an average ticket rate of $23.40 to $28.40 (less than half what most venues in Oregon charge on average) per seat and an average occupancy rate of 63% Expenses All Utilities for the venue will be run through the City of Sisters Maintenance for the facility, landscaping, restrooms, cleaning and repairs will be performed through the City of Sisters Public Works Department Promotion, Bookings, Advertising, Ticket Sales and Performance Management will be handled by a local non-profit entity fully staffed for that purpose Ticket Booths, Venue Staffing, Traffic Management, Parking Management will all involve local staffing from Sisters, including local youth (above minimum working age) 22

23 City of Sisters How Will This Work? Net Revenues Revenues will be collected with the City of Sisters First Priority, after operating expenses, will be to pay debt service on the projects financing Second Priority will be to build up and maintain repair and replacement reserves for the venue Third Priority will be to pay for upgrades and long-term improvements at the venue Remaining funds will be utilized to promote art and music programs within our community Financing A number of National and Regional Banks have expressed a willingness to finance this project 23

24 City of Sisters Economic Model for the Amphitheater Project Mozart Seats3,200(1,850 fixed & 1,350 lawn)Finance $ 2,500,000 Land Cost $ 600,000Debt Service $ 30 Yr Amort Project Construction Cost $ 4,000,000Cash to be Raised $ 2,100,000 Total Cost $ 4,600,000 OperationsBalance of Months OperatedMayJuneJulyAugustSeptemberOctoberthe YearTotals Number of Shows Per Month Gross Seats Per Month6,40012,80019,200 16,0006, ,000 Occupancy %50%60%70% 60%50%0%63% Seats Occupied3,2007,68013,440 9,6003, ,560 Seats Per Performance1,6001,9202,240 1,9201,6000 2,022 Average Rate Per Seat (Scenario 1) $ $ $ $ - Average Rate Per Seat (Scenario 2) $ $ $ $ - Gross Revenue From Seats (Scenario 1) $ 64,000 $ 153,600 $ 336,000 $ 192,000 $ 64,000 $ - Gross Revenue From Seats (Scenario 2) $ 80,000 $ 192,000 $ 403,200 $ 240,000 $ 80,000 $ - Parking $1,500 per show - $3/space) $ 3,000 $ 6,000 $ 9,000 $ 7,500 $ 3,000 $ -$37,500 RV Campground Revenue (22 spaces) $50 per space at 80% occupancy (4 months) $ - $ 26,400 $ 27,280 $ 26,400 $ - $107,360 $20 per space at 20% Occupancy (8 months) $ 15,928 Total RV Campground Revenue (22 spaces) $ - $ 26,400 $ 27,280 $ 26,400 $ - $ 15,928 $ 123,288 Avg Per Space $ Annual Gross Revenue (Scenario 1) $ 1,183,10063%Total Seats 50,560 Average/Seat $ RV Campground Revenue $ 123,288 Total Revenue $ 1,306,388 Annual Gross Revenue (Scenario 2) $ 1,435,90063%Total Seats 50,560 Average/Seat $ RV Campground Revenue $ 123,288 Total Revenue $ 1,559,188 Annual Expenses (Scenario 1) $ 946,48080%(60% to the Performer, balance to operate the venue) Annual Expenses (Scenario 2) $ 1,148,72080%(60% to the Performer, balance to operate the venue) DebtBank CoverageRequired Annual Net Income (Scenario 1) $ 359, : 1.00 Annual Net Income (Scenario 2) $ 410, :

25 City of Sisters Sisters at a glance: Area: Within City Limits = 1,188 acres, Sisters Country (Sisters School District) = 174,473 acres Population: Within City Limits = 2,115; Sisters Country (Sisters School District, include City Limits) = 8,000 full time, 6,000 additional part time (second home owners) Total Square Footage / Quantities of Property (City Limits): CommercialApproximately 380,258 SF (approx. 85% Occupied) RetailApproximately 400,000 SF (approx. 90% Occupied), including 16 restaurants / restaurant facilities Hotel Rooms219 Rooms (Average Annual Occupancy, approximately 50%) Houses1,280 platted residential lots, 890 are developed (with 909 units), leaving 390 vacant. Of these some have permits for an additional 164 housing units Business CountApproximately 300 licensed business Traffic Counts: Approximately 4,000,000 vehicles per year on Highway 20 School Enrollment: Approximately 1,150 - K-12 Students Current Community Assets: 5 Parks (including 3 sets of restrooms and 2 childrens play structures) Creekside Campground, has 67 camping and RV spaces, minimal amenities Sisters Park and Recreation District and Sisters Trails Alliance funded, developed and manage over 100 miles of trails in the area. This includes nationally recognized cycling trails Access to Whychus Creek is available within the city limits Events: Sisters Rodeo, Sisters Quilt Show, Sisters Folk Festival, Sisters Annual Lacrosse Invitational, Starry Nights Concerts, Harvest Fair, Sisters Car Show, a variety of fairs, arts and craft shows, bike races, running races and other events. Over 2,000 on street parking spaces (of which only approximately 30% are improved) Horse Trails and Campgrounds A newly renovated and soon to be annexed Airport 2 Alpine Ski Areas, Back-country Ski Trails and Snow Parks Thousands of Square Miles of Hunting and Hundreds of Miles of Fishing Venues A Talented, Engaged and Strong Volunteer Base 25

26 City of Sisters Sisters at a glance: Other Public Agencies Sisters School District Enrollment – 1, /14 Budget $10,000,000 Top 25% of schools in Oregon Sisters Park and Recreation District Over 100 programs offered / supported 2013/14 Budget $900,000 Sisters / Camp Sherman Fire District Square miles (fire response) 240 Square miles (ambulance) 2,000 Annual Emergency Responses (all calls 2012) 852 calls Annual Fire Responses 36 Equipment: 5 structural fire engines, 3 water tenders, 3 ambulances, 3 light brush trucks, 2 heavy brush trucks, heavy rescue vehicle. Population served: Approximately 8,000 residents 13-Full Time Employees 28-volunteer firefighters 7-college intern firefighters 12-auxiliary volunteers (perform community service functions such as teach cpr classes, conduct blood pressure clinics, install smoke alarms) 6-EMS only volunteers Financial Info: Total Budget $3,608,270 26

27 City of Sisters Sisters at a glance: Public Agencies Continued… Sisters Public Library US Forest Service Oregon Department of Forestry ODOT Non-Profits Kiwanis Food Bank Rotary International Habitat for Humanity Circle of Friends A Significant Number of Faith-based Entities That Actively Support the Community Crystal Peak Youth Ranch Bridges Academy Lions Club Others Major Employers Sisters School District US Forest Service Rays Market Black Butte Ranch Energyneering Metabolic Maintenance Bird Gard Sisters Folk Festival Sisters Outdoor Quilt Show Sisters Rodeo Bi-Mart Hoodoo Ski Area Aspen Lakes Golf Course GFP Enterprises Sisters Coffee Company Five Pine Lodge Three Creeks Brewing And Others 27

28 City of Sisters Project Details: Urban Renewal – How does this work? The current $185,000 of urban renewal tax revenues allows the URA to borrow approximately $1,900,000 for urban renewal. The repayment of this debt is from the taxes paid into the Urban Renewal Agency. Urban renewal dollars have been used for: Village Green improvements, Cascade Avenue improvements, the new Fir Street Park, Façade Grants for downtown and the Main Avenue street improvements. These improvements represent an investment of $750,000 Future improvements that are planned include new restrooms and showers at Village Green, upgrades including a dog run, picnic area and information signage at the East Portal, an upgraded path and street trees along Larch Street. These improvements will represent an investment of an additional approximately $650,000 Between these sets of projects we expect to have invested approximately $1,400,000 leaving an additional $500,000 that can be invested in future projects. The current plan is to use approximately $250,000 of this remaining available money to invest in the Amphitheater project. Please note that these borrowed funds are paid from existing property tax revenues. No additional taxes are necessary for the URA to repay its proposed debts. 28


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