1 Demand Feasibility Study For a Multi-Purpose Event Center in Texas

2 STUDY OBJECTIVES Assess proposed market area for success indicators given demographics, hockey fan and league profile data Estimate arena’s feasible seating capacity Estimate supportable pricing ranges for arena amenities and services Suggest types/value of non-hockey events

3 PROCESS STEPS Determine comparable venues from league data and socio-economic indicators Compare proposed venue to experience of others Note similarities and differences Apply key ratios to determine final estimates of size and pricing

4 KEY ECONOMIC INDICATORS Core economic factors considered: Population, employment growth & profile Total and per capita income growth Target audience demographic profile : Age, sex, income, employment, education Family size/composition Car and home ownership

5 KEY MARKET FACTORS Proximity to major metro area Venue location transportation access Competing area facilities Local interests, events and programs Arena’s synergy with potential event variety

6 MARKET AREA Market Area Location: City in Texas County “A” as the center of gravity for County “A” and County “B” together Comparable Venues for Analysis 6 Texas venues: Amarillo, Corpus Christi, El Paso, Lubbock, Odessa, San Angelo

7 SUMMARY OF RESULTS I Overall fit to City in Texas: STRONG Feasible seating capacity range: 6,500 to 7,500 seats Selected market area indicators: 10-year population growth, 4.8%/yr. 10-year employment growth, 6.5%/yr. Per capita income growth, 8.1%/yr per capita income, $25,576

8 SUMMARY OF RESULTS II Pricing Ranges Private Suites - $30K avg.; $25K to $35K Club seats - $25K avg.; $20 to $30 Tickets - $12 avg.; $5 to $18 range Non-hockey events Sports – football, tennis, soccer, basketball, skating Live entertainment – live music, concerts, performing arts, thrill shows, family shows Expositions – trade shows, conventions, banquets, cultural events

9 THE PROPOSAL  A 6,000 seat entertainment center:  multi-purpose to maximize ‘Event Days’  attract indoor sporting events, entertainment, trade shows/conventions, and family events  provide for ice skating, youth hockey and community activities  operate deficit free, from the first year and affordably achieve a return on investment

10 THE RIGHT FIT  Unique opportunity to increase status as a destination point and cultural center in County “A”  Increase/retain sales tax revenue  To establish a rallying point around which a sense of civic pride, social notoriety and quality of life can be measured

11 EVENT CALENDAR [148 Days] Days Per Avg. Daily Total Event Year Event Attendance Attendance Major Sport Tenant (Hockey 35 4, ,500 Performing Arts/Symphony 8 3,500 28,000 Other Sports 22 4,000 88,000 Festivals/Cultural Events 2 3,000 18,000 Equestrian/Rodeo Events 9 5,000 67,500 Family Shows 6 3,500 31,500 Concerts 16 6,000 96,000 Thrill Shows 3 4,000 24,000 Trade Shows/Conventions 10 4, ,000 TOTAL ,500

12 ECONOMIC ADVANTAGES The incremental traffic directed to County “A” will generate additional sales and sales tax revenue annually Out of area visitors will generate hotel/motel, retail and local tax revenue for local businesses

13 COMMUNITY INVESTMENT I Construction Phase Economic Impact: Estimated $25 million arena Duration:17-18 months Jobs: 110 Direct Jobs + Indirect Jobs (X 2.6) Sectors: Building Materials & Services Incremental local spending effect (X 2.2) Incremental taxable sales revenue

14 COMMUNITY INVESTMENT II Operations Phase Economic Impact:  Duration: Annual  55 Direct Jobs + Indirect Jobs (X 2.2)  Arena gross receipts estimated at $13.6 million  Incremental direct and indirect (X 2.3) spending  Incremental local sales tax revenue