Manage~ - Granicus

CITY OF RANCHO SANTA MARGARITA CITY COUNCIL

STAFF REPORT

DATE: January 25, 2017

TO:

FROM:

City Council of the City of Rancho Santa Margarita

Jennifer M. Cervantez, City Manage~ / Cheryl Kuta, Development Services Dir~ BY:

SUBJECT: Proposed Amendment No. 1 to the Professional Services Agreement with Hunden Strategic Partners, Inc. for Preparation of a Focused Market Study for Potential Future Development of the Chiquita Ridge Open Space Property Located Along Antonio Parkway in the Southern Portion of the City (APN 125-087-14)

Recommendation

1) Approve proposed Amendment No. 1 to the Professional Services Agreement with Hunden Strategic Partners, Inc., to modify Sections 1.1 and 2.1 of the Agreement, to include additional tasks as an extension of the Focused Market Study Scope of Work, for preparation of a Market, Financial Feasibility, and Economic Impact Study for the potential future development of a sports park at the Chiquita Ridge Open Space Property.

2) Authorize the City Manager to execute the proposed Amendment No. 1 to the Professional Services Agreement with Hunden Strategic Partners, Inc.

Background and Discussion

Staff issued an RFP for a professional consultant to perform a focused retail, residential and hospitality market study for the 92-Acre City-Owned Chiquita Ridge Open Space Property located along Antonio Parkway in the southern portion of the City (APN 125-087-14) on July 18, 2016. Five proposals were received, and staff recommended approval of a Professional Services Agreement with Hunden Strategic Partners, Inc. (HSP) for the preparation of a Focused Market Study regarding the potential future development of the Chiquita Ridge property. Council approved the professional services agreement on August 24, 2p16. HSP completed a draft of the Focused Market Study and presented its initial findings to the City Council on October 26, 2016. HSP submitted the final Focused Market Study report on November 30, 2016, which was received and filed by the City Council on December 14, 2016.

The goal for undertaking the Focused Market Study before retaining a Development Consultant was to ensure that the City has a clear vision for potential future

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Amendment No. 1 to PSA with Hunden Strategic Partners, Inc. January 25, 2017 Page 2

development of the property based on realistic market feasibility. The results of the Focused Market Study validated the City Council's objectives and goals for the property and provided an estimated cash flow from the development for a 20 year horizon. While the Focused Market Study provided detailed information for potential commercial development on approximately 32 acres of the subject site, it did not provide any information regarding the potential sports park component. In order to more fully understand the financial feasibility of the potential future sports park, further study related to the park use component is recommended at this time.

Following completion of the Focused Market Study, HSP provided a proposal to continue the feasibility study by preparing a Market, Financial Feasibility, and Economic Impact Study for the Development of a Potential Future Sports Park. The proposal would add to and expand on HSP's existing scope of work several tasks to perform a market-based evaluation for a potential future sports park at the Chiquita Ridge site, as an extension of the Focused Market Study that HSP conducted for the retail/hospitality aspect of the potential future project. The proposed scope of work builds upon, and is an extension of, the analysis and work already completed by HSP. Because the performance and viability of the elements of the potential retail development recommended by HSP will be influenced by the sports park component, this work is a natural extension of the Focused Market Study scope of work. Completion of the additional tasks proposed in Amendment No. 1 to the HSP Agreement will combine with the Focused Market Study work completed to-date to provide a more complete picture of the feasibility, market demand, and economic impact of potential future sports park and retail/hospitality uses on the Chiquita Ridge property.

The scope of work contained in the current Professional Services Agreement with HSP consisted of a series of ten tasks which resulted in a final Focused Market Study Report. As noted above, HSP completed the final report in November, 2016. The total cost for the original scope of work was $57,000. The proposed Amendment No. 1 would add a set of 11 tasks to the scope of work which would collectively provide analysis of the potential sports park. These tasks include, but are not limited to, inventory and analysis of local and regional sports facilities, sports tournament opportunity analysis, competitive and comparable case studies, site analysis, program matrix, and demand and financial projections. Similar to the procedure followed for the Focused Market Study report, the scope of work for the sports park analysis includes a presentation to the City Council summarizing the findings of the draft report prior to completion of the final Market, Financial Feasibility, and Economic Impact Study for the Development of a Potential Future Sports Park. Much of the initial data collection and research conducted for the Focused Market Study will be used for the sports park study scope of work, representing a cost and time savings. The work is currently estimated to be completed in 12 to 14 weeks. The total cost for the additional tasks related to the sports park study is $59,500, bringing the total contract amount for HSP to $116,500.

The City's Procurement Code (Chapter 3.07 of the Rancho Santa Margarita Municipal Code) establishes procedures for the selection of professional services and sets forth procedures for change orders and amendments to professional services agreements.

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Likewise, the City's professional services agreement provides for amendments in Sections 1.8 (Additional Services) and 2.3 (Changes in Scope of Work), which collectively provide that the Agreement may be amended in writing at any time by mutual consent of the parties. Specifically, Section 2.3 of the Professional Services Agreement with HSP states that an amendment may be entered into to change and/or to provide for additional services to the Scope of Services not included in the current Agreement. Accordingly, staff has prepared the attached Amendment No. 1 in accordance with the requirements of the Procurement Code and the terms and conditions of the existing Professional Services Agreement with HSP.

CEQA

The further study of potential future development of the City-owned Chiquita Ridge Open Space Property located along Antonio Parkway in the southern portion of the City (APN 125-087-14), including a Market, Financial Feasibility, and Economic Impact Study for the Potential Future Development of a Sports Park, does not commit the City to a specific course of action for future use of the property nor does the recommended further study limit any alternatives or mitigation measures for future use of the property. Further, the recommended further study does not have the potential to result in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment as the Market, Financial Feasibility, and Economic Impact Study for the Potential Future Development of a Sports Park will not change the current use of the property. The Market, Financial Feasibility, and Economic Impact Study for the Potential Future Development of a Sports Park, therefore, is not a "project" subject to CEQA, and the City's consideration of the recommended further study does not constitute project "approval" for CEQA purposes. (Public Resources Code § 21 065; CEQA Guidelines § 15378(a); CEQA Guidelines § 15352(a))

If the Market, Financial Feasibility, and Economic Impact Study for the Potential Future Development of a Sports Park was somehow construed to be a "project" subject to CEQA, the further study would qualify for at least three exemptions from CEQA review, including the statutory planning and feasibility exemption (CEQA Guidelines §15262), a Class 6 categorical exemption (CEQA Guidelines § 15306) and the "common sense" exemption (CEQA Guidelines § 15061 (b )(3).)

CEQA exempts from its requirements "[a] project involving only feasibility or planning studies for possible future actions which the agency, board, or commission has not approved, adopted, or funded." (CEQA Guidelines § 15262.) Here, the purpose of the additional focused study is to retain a professional consulting firm to conduct a Market, Financial Feasibility, and Economic Impact Study for the Potential Future Development of a Sports Park with regard to the potential future development of the Chiquita Ridge property. The further study, however, does not commit the City to proceed with development of the Chiquita Ridge property. The City has not yet approved, adopted, or funded the development of the Chiquita Ridge property. The market research will not legally bind the City with respect to later activities, including the potential construction and operation of development on the Chiquita Ridge property. As a result, the further

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study falls within CEQA's statutory exemption for planning and feasibility studies. (CEQA Guidelines §15262)

CEQA also exempts from its requirements, "[b]asic data collection, research, experimental management, and resource evaluation activities which do not result in a serious or major disturbance to an environmental resource." (CEQA Guidelines § 15306.) These activities, ."[m]ay strictly be for information gathering purposes, or as part of a study leading to an action which a public agency has not yet approved, adopted or funded." (/d.) As explained above, the further study will allow the City to gather information regarding the potential future development of Chiquita Ridge property. The City has not yet approved, adopted, or funded the development of the Chiquita Ridge property. The Market, Financial Feasibility, and Economic Impact Study for the Potential Future Development of a Sports Park, therefore, is basic information collection that is exempt from CEQA. (CEQA Guidelines 15306)

In addition, for all of the foregoing reasons, it can be seen with certainty that there is no possibility that the Market, Financial Feasibility, and Economic Impact Study for the Potential Future Development of a Sports Park may have a significant effect on the environment. The further study therefore falls within CEQA's "common sense" exemption. (CEQA Guidelines§ 15061 (b)(3))

Alternatives

1. The City Council could choose not to approve the proposed Amendment No. 1 to the HSP Agreement. Alternatively, the City Council may provide direction to staff to revisit the scope of work for development consultant services issued in the January 2016 RFP.

2. Take no action at this time. While there is no deadline for the potential future development of the Chiquita Ridge open space property, the City Council has expressed a desire to move forward the planning and feasibility process.

Fiscal Impact

Staff's recommendation has an anticipated fiscal impact of $59,500 for the proposed amendment to the Professional Services Agreement with Hunden Strategic Partners, Inc. to expand the scope of work to include an additional Market, Financial Feasibility, and Economic Impact Study for the Potential Future Development of a Sports Park at Chiquita Ridge. Funding has been approved for continued Chiquita .Ridge Open Space Assessment in the current FY 2016-17 Capital Improvement Program budget.

Attachments

A. Proposed Amendment No. 1 to the Professional Services Agreement with Hunden Strategic Partners, Inc.

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ATTACHMENT A

AMENDMENT NO. 1 TO AGREEMENT FOR PROFESSIONAL SERVICES

Hunden Strategic Partners, Inc. Focused Market Study for Potential Future Development

of the Chiquita Ridge Open Space Property

THIS FIRST AMENDMENT to the Hunden Strategic Partners, Inc., Professional Services Agreement for preparation of a Focused Market Study for Potential Future Development of the Chiquita Ridge Open Space Property (the "Amendment") is made and entered into to be effective this 25th day of January 2017, by and between the CITY OF RANCHO SANTA MARGARITA, a municipal corporation organized and existing under the laws of the State of California, (hereinafter referred to as "City") and HUNDEN STRATEGIC PARTNERS, INC., a Indiana corporation, (hereinafter referred to as "Consultant"). City and Consultant are sometimes hereinafter individually referred to as "Party" and are hereinafter collectively referred to as "Parties".

RECITALS

A. In response to the City's Request for Proposals (RFP) No. DS 16-002, dated July 18, 2016, Consultant submitted to City a formal written proposal, dated August 4, 2016, to provide professional market study and other consulting services to City for the preparation of focused market studies regarding the potential future development of the Chiquita Ridge Open Space Property, APN 125-084-14.

B. City and Consultant previously entered into that certain professional services agreement for preparation of a focused market study for the potential future development of the Chiquita Ridge open space property, which was made and entered into on August 25, 2016 (the "Agreement"), and which may be duly amended, in writing, from time to time by the Parties. Sections 1.8 (Additional Services), 2.3 (Changes in Scope of Work), 3.4 (Term), and 10.3 (Amendments/Modifications) of the Agreement provide that the Agreement may be amended in writing at any time by mutual consent of the Parties.

C. More specifically, Sections 1.8 (Additional Services) and 2.3 (Changes in Scope) of the Agreement provide that the City shall have the right at any time during the term of the Agreement to order extra work or make changes by adding to such Work and that at any time during the term of the Agreement the Parties may enter into a written amendment for the purpose of changing and/or providing for additional services to the Scope of Services set forth in Section 1.1 of the Agreement, including any additional professional fees. Following completion of a focused market study and based on the results of that first study, Consultant now recommends that the City complete an additional focused study concerning the market, financial feasibility, and economic impact for the potential future development of a sports park at the subject site. City has reviewed Consultant's proposal to provide additional focused studies concerning the sports park component and concurs with that recommendation. City does not have the personnel or the specialized technical expertise capable of performing the recommended additional work.

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D. Consultant has submitted a proposal, dated November 15, 2016, to provide additional market studies and other related tasks as an extension of the Scope of Work set forth in the Agreement, proposing to now prepare a Market, Financial Feasibility, and Economic Impact Study for the potential future development of a sports park at the subject site; a copy of which is attached hereto as Attachment "1".

E. City has now determined that there is a need to amend the Scope of Services and Work in the Agreement in order to provide for additional consulting services to prepare a Market, Financial Feasibility, and Economic Impact Study for the Potential Future Development of a Sports Park at the Chiquita Ridge open space property. These proposed additional consulting services create a need to increase the Maximum Contract Amount set forth in Section 2.1 of the Agreement by $59,500 from $57,000 to $116,500.

F. The Parties now desire to enter into this Amendmentfor the purpose of modifying Section 1.1 of the Agreement (Scope of Services) to add the additional work, tasks, deliverables and performance schedule contained in Consultant's Market, Financial Feasibility, and Economic Impact Study for Development of a Sports Park proposal, dated November 15, 2016, a copy of which is attached hereto as Attachment "1", and to amend Section 2.1 of the Agreement (Maximum Contract Amount) in order to provide for these additional services and work.

NOW, THEREFORE, in consideration of the mutual promises and covenants herein, the Parties agree as follows:

AGREEMENT

1. Amendment to Section 1.1, entitled "Scope of Services," of the Agreement: Section 1.1 of the Agreement is hereby amended as follows to provide for additional consulting services:

The Scope of Services and Work set forth in Section 1.1 of the Agreement is hereby amended to also include the additional professional services, as well as the schedule of performance for the additional professional services and work, as set forth in Consultant's November 15, 2016 proposal entitled, "Market, Financial Feasibility, and Economic Impact Study for the Development of a Sports Complex," a copy of which is attached hereto as Attachment "1" to this Amendment and is incorporated herein by reference and is hereby made a part of Exhibit "A" to the Agreement.

2. Amendment to Section 2.1, entitled "Maximum Contract Amount," of the Agreement:

1215220.1

Section 2.1 of the Agreement is hereby amended and restated in its entirety to read as follows:

For the Services and Work rendered pursuant to this Agreement, Consultant shall be compensated by City for the services performed, including authorized reimbursements, in accordance with the professional hourly rates and charges set forth in the Schedule of Compensation/Fees, which is attached hereto as Exhibit "A" and is incorporated herein by reference, but not exceeding the total maximum contract amount of One Hundred

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Sixteen Thousand Five Hundred Dollars ($116,500.00) (hereinafter referred to as the "Maximum Contract Amount"). The method of compensation shall be as set forth in Exhibit "A". Compensation for necessary expenditures for reproduction costs, telephone expenses, and transportation expenses must be approved in advance by the Contract Officer designated pursuant to Section 4.2 and will only be approved if such expenses are also specified in the Schedule of Compensation/Fees. The maximum amount of City's payment obligation under this Agreement is the amount specified in this section.

3. Full Force and Effect. This Amendment is supplemental to the Agreement and is by reference made part of said Agreement. All of the terms, conditions, and provisions, thereof, unless specifically modified herein, shall continue in full force and effect. In the event of any conflict or inconsistency between the provisions of this Amendment and any provisions of the Agreement, the provisions of this Amendment shall in all respects govern and control.

4. Recitals. The above-referenced Recitals are hereby incorporated into this Amendment as though fully set forth herein and made part of the Agreement and each Party acknowledges and agrees that such Party is bound, for purposes of this Agreement, by the same.

5. Corporate Authority. Each of the undersigned represents and warrants that (i) the Party for which he/she is executing this Amendment is duly authorized and existing, (ii) he/she is duly authorized to execute and deliver this Amendment on behalf of the Party for which he/she is signing, (iii) by so executing this Amendment, the Party for which he/she is signing is formally bound to the provisions of this Amendment, and (iv) the entering into this Amendment does not violate any provision of any other agreement to which the Party for which he/she is signing is bound.

[SIGNATURES ON NEXT PAGE]

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IN WITNESS WHEREOF, the Parties have executed and entered into this Amendment to the Agreement as of the date first written above.

ATTEST:

By: ____________ _ AMYDIAZ, City Clerk

APPROVED AS TO FORM:

By: ____________ _

1215220.1

GREGORY E. SIMONIAN, City Attorney

"CITY''

CITY OF RANCHO SANTA MARGARITA, a California municipal corporation organized and existing under the laws of the State of California

By: ____________________________ __

JENNIFER M. CERVANTEZ, City Manager

"CONSULTANT"

Hunden Strategic Partners, Inc., an Indiana corporation

By: ~./ . l, 19- 11' Name: ROBIN SCOTT HUNDEN, Its: President

.---;:--. . -- ---By: ____ / __ ~ _________ _

Name: TATE BUTLER, Its: Secretary

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ATTACHMENT "1"

CONSULTANT'S PROPOSAL

DATED NOVEMBER 15, 2016

TO PROVIDE ADDITIONAL PROFESSIONAL SERVICES

FOR PREPARATION OF A

MARKET, FINANCIAL FEASIBILITY, AND ECONOMIC IMP ACT STUDY FOR THE

POTENTIAL FUTURE DEVELOPMENT OF A SPORTS PARK

AT THE CHIQUITA RIDGE OPEN SPACE PROPERTY

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Market, Financial Feasibility, and Economic Impact Study for the Development of a Sports Complex

Submitted to:

City of Rancho Santa MargaritaAttn: Cheryl Kuta, Development Services Director22112 El PaseoRancho Santa Margarita, CA 92688

Sent via Email to: [email protected]

November 15, 20161

Page 10

www.hundenpartners.com

Hunden Strategic Partners is a full service real estate development advisory practice specializing in destination assets. With professionals in Chicago, Minneapolis and Indianapolis, HSP provides a variety of services for all stages of destination development in the following primary areas:

§ Real Estate Market & Financial Feasibility & Development Consulting

§ Sports & Recreational Facilities

§ Convention & Conference Centers

§ Mixed-Use Developments (Retail, Restaurant, Office, Residential, Hotel, Parking)

§ Hotels, especially Convention/ Conference and Boutique Hotels

§ Entertainment/Retail Districts

§ Fairgrounds & Expo Centers

§ Arts, Cultural & Entertainment Facilities

§ Specialty Real Estate, including Business Incubators

§ Public Incentive Analysis

§ Economic, Fiscal, & Employment Impact Analysis (Cost/Benefit)

§ Economic and Tourism Policy/Legislation Consulting

§ Organizational Development

§ Research & Statistical Analysis

§ Developer Solicitation & Selection; Private Management Company Solicitation & Selection

Hunden Strategic Partners (HSP) professionals have provided all of the above services for hundreds of client projects worldwide for the public, non-profit and private sectors. In addition, HSP professionals have prior professional career experience in municipal and state government, economic and real estate development, real estate law, hotel operations and non-profit management. Over 80 percent of HSP’s clients are public purpose entities, such as municipalities, counties, states, convention bureaus, authorities and other quasi-government entities empowered to conduct real estate, economic development and tourism activities.

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Convergence Design

Convergence Design LLCMail: 1600 Genessee Street, Ste. 620Kansas City, MO 64102Phone: (816) 255-2123Legal Status: LLC / Sole Proprietor Website: www.convergencedesignllc.com

Key ContactName and Title: David Greusel, Principal in ChargePhone: (816) 255-2123Direct: (913) 244-3545E-mail: [email protected]

Who We AreConvergence Design is about bringing work, family and

community together into a seamless whole. It’s about

connecting people in every aspect of their lives, and

bringing them together in positive spaces. Convergence

Design values people more than design awards and values

the communities where buildings exist as much as the

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particular time.

Convergence Design offers a wide range of architectural

and related services, including strategic facility planning,

programming, master planning, design, documentation

and construction phase services. We also offer consulting

services in strategic marketing, public presentations,

graphic design and branding.

Convergence Design is committed to serving each

client with personal, professional care. We engage with

trusted, experienced consultants to provide the full range

of architectural and engineering services required for a

particular project. Our clients rest assured knowing they

will receive attention from the owner-principal throughout

the course of their project.

Firm HistoryConvergence Design began as the private professional

practice of David Greusel, FAIA in 2004. Since then, the

practice has served a variety of public, private and non-

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new buildings. Convergence Design is organized as a

Limited Liability Company in the state of Kansas and is

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David Greusel Founding principal David Greusel, FAIA has over 30 years of professional experience in architecture. He has worked as a principal and shareholder in large and medium-sized architectural firms across the Midwest. His responsibilities have included every aspect of architectural project delivery including design, programming, planning, and project management. His primary strength, however, is working with clients to help them articulate and realize their own particular goals for a project. For most of his career, David has specialized in public assembly architecture, including stadiums and arenas; civic, convention and conference centers; and athletic and recreation centers.

David has a reputation as a skilled communicator and a consensus-builder. He has taught communication skills to architects and allied professionals nationwide. He authored Architect’s Essentials of Presentation Skills, part of the Architect’s Essentials series published by Wiley. For his contributions to the profession of architecture, David was elevated to the College of Fellows of the American Institute of Architects in 2009.

Selected Projects• Minute Maid Park, Houston Astros Baseball Club; Houston, Texas• PNC Park, Pittsburgh Pirates Baseball Club; Pittsburgh, Pennsylvania• Outdoor Baseball Complex, Tourism Development Commission, Walton County, Florida

• Stadium Expansion, Kansas State University; Manhattan, Kansas• Tointon Family (Baseball) Stadium, Kansas State University; Manhattan, Kansas• New Busch Stadium, St. Louis Cardinals; St. Louis, Missouri• Meade Stadium Expansion, University of Rhode Island; Kingston, Rhode Island• Bream-Hauser Athletic Complex, Gettysburg College; Gettysburg, Pennsylvania• Enid Events Center; City of Enid, Oklahoma• New Football Stadium, Alabama State University; Montgomery, Alabama• Key Attractions Study, Greater Burlington Partnership; Burlington, Iowa• Utah County Convention Center; Provo, Utah• New Amphitheater; City of Fort Collins, Colorado• Campus Plan, Christ Community Church; Leawood, Kansas and Olathe, Kansas• Grand River Center; City of Dubuque, Iowa• Richard E. Berry Center, Cypress-Fairbanks ISD; Houston, Texas• Marlow Baptist Church; Cameron, Texas• UIC Forum, University of Illinois-Chicago; Chicago, Illinois• Liberty Community Center; Liberty, Missouri• H.H. Dow Leadership Academy, Dow Chemical Company; Midland, Michigan• Peoria Civic Center Revitalization; Peoria, Illinois• Ozark Elementary and Junior High School; Ozark, Missouri• Engineering Management Building, Missouri University of Science & Technology; Rolla, Missouri

• Student Recreation Center, University of Nebraska-Lincoln; Lincoln, Nebraska• Tinley Park Convention Center Expansion; Village of Tinley Park, Illinois• Student Recreation Center, University of Toledo; Toledo, Ohio• Brady Commons, University of Missouri-Columbia; Columbia, Missouri• Prairie Commons Branch, St. Louis County Library; Hazelwood, Missouri• Student Rec Center Expansion, Southern Illinois University; Carbondale, Illinois• Monsanto Research Center, Missouri Botanical Garden; St. Louis, Missouri• Broken Arrow Elementary School; Shawnee, Kansas• St. Paul’s Episcopal Day School; Kansas City, Missouri• Clayton High School Expansion & Auditorium, Clayton Schools; Clayton, Missouri• Center for Historical Research, Kansas State Historical Society; Topeka, Kansas

FAIA, CNU, LEED® AP Convergence Design

ResponsibilityPrincipal

EducationKansas State University,

B.Arch., cum laude

RegistrationDavid Greusel holds a certificate from the National Council of

Architectural Registration Boards (NCARB), and is licensed as an architect in

the following jurisdictions:Arizona, Alabama,

Colorado, Florida, Illinois, Indiana, Kansas, Maine,

Michigan, Missouri, North Carolina, Oklahoma, South

Dakota, Tennessee, Texas, Utah

Memberships Fellow,

American Institute of Architects

Member, Congress for The New Urbanism

LEED® Accredited Professional

U.S. Green Buildings Council

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Project Data Key Scope Items:

§ Feasibility Study

§ Sports Market Analysis

§ Economic, Fiscal and Employment Impact Analysis

§ Business Plan Project Budget: $125,000,000 HSP Professionals Involved in Project: Rob Hunden, Ethan Olson, Elisa Martinez Time of Service: 2012 - 2014

Great Park Sports Complex Feasibility and Impact Study Irvine, California

Hunden Strategic Partners (HSP) was recently engaged by a private developer to study the development of a multi-use 200-acre sports complex on the site of a former Marine Corps Air Station in Orange County, California. Great Park is the centerpiece of a larger residential mixed-use development. The athletic complex is proposed as:

§ 25 Multi-use Fields (soccer, lacrosse, field hockey) including 2,500-seat Championship Field

§ 25 Tennis Courts including Championship Court

§ 7 Baseball Fields including Championship Field

§ 5 Softball Fields including Championship Field

§ 10 Sand Volleyball Courts

§ 10 Multi-use Courts (paddle tennis, badminton, volleyball, basketball)

HSP conducted a review of competitive and comparable sports facilities in the area as well as across the country to understand the competitive environment that Great Park would be entering. Once completed, HSP was able to perform demand and financial projections for the proposed complex. An economic impact analysis was then performed to understand how the park would affect the surrounding community. In 2013, HSP continues working on a detailed business, management and calendar plan for the project.

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§ Sports Market & Facilities Needs Analysis

§ Comparable Facility Analysis

§ Demand & Financial Projections Project Budget: $15M - $38M HSP Professionals Involved in Project: Rob Hunden, Ethan Olson, Michael Montgomery, Eric Hunden Time of Service: 2014 - 2015

Youth Sportsplex Market & Feasibility Study Orange County, Florida

Hunden Strategic Partners (HSP) was engaged by Orange County, Florida to study the need and opportunity for the development of a multi-purpose indoor and/or outdoor youth athletic complex.

HSP performed a market assessment, revenue projections and operation costs for the project. The analysis also included a comprehensive market analysis for various sports and facilities to determine the local need as well as any potential opportunity to host tournaments. A review of competitive and comparable sports facilities in the area as well as across the country was conducted to determine if there is enough excess demand that a new facility in Orange County could attract.

HSP also completed three demand and financial projection scenarios for the proposed complex, including a multi-venue complex as well as two sport specific scenarios.

The County was interested in understanding how a sports facility could best serve the community by providing an improved quality of life, hotel stays, new jobs and economic impact. HSP helped Orange County understand the physical and budgetary challenges it faces in embarking upon the construction and management of these facilities.

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§ TIF Analysis

§ Market Analysis of Various Uses

§ Amateur and Youth Sports Complex Analysis

§ Comparable Facility Analysis Project Budget: $60,000,000 HSP Professionals Involved in Project: Rob Hunden, Rob Smitherman Time of Service: 2011

Grand Park Sportsplex Feasibility and TIF Analysis Westfield, Indiana

HSP was engaged by the City of Westfield to analyze two related projects. The first was a feasibility and economic impact study of the proposed Grand Park sportsplex. The second study is a TIF funding analysis of the several square miles surrounding the sportsplex. These analyses included a detailed competitive supply and demand analysis, business plan review, tournament market analysis, room night projection, analysis of funding options that included TIF projections, trends analysis for the youth sports industry, a competitive assessment of comparable facilities and demand and financial projections for the complex.

Grand Park is a full-service tournament facility, with sports fields to accommodate local and traveling league play. The 300-acre complex consists of a full range of championship-level playing fields, including: 26 baseball and softball diamonds, 32 additional fields for lacrosse, rugby and field hockey and an indoor sports facility to accommodate year-round play. The City has projected that the project will bring over 250,000 visitors to the area each year.

Westfield is located 20 miles north of Indianapolis in Hamilton County and is in the direct path of growth in the region. This analysis will assist the City as they plan for future development in the area and determine the best financing options for the facility.

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Project Data

Key Scope Items:

§ Impact & Feasibility Study

§ Sports Market & Facilities Needs Analysis


§ Demand & Financial Projections

HSP Professionals Involved in Project: Rob Hunden, Ethan Olson, Michael Montgomery, Dillon Gillman, Eric Hunden

Time of Service: 2015

Indoor Youth Sportsplex Market & Feasibility Study South Bend-Mishawaka, IN

Hunden Strategic Partners (HSP) was engaged by Visit South Bend Mishawaka (VSBM), in South Bend-Mishawaka, IN, to study the need and opportunity for the development of a multi-purpose indoor and/or outdoor youth athletic complex.

HSP is performing a market assessment, revenue projections and operation costs for the project. The analysis also included a comprehensive market analysis for various sports and facilities to determine the local need as well as any potential opportunity to host tournaments. HSP will determine the potential funding for a sports facility in South Bend-Mishawaka. The study will also profile existing and new youth and/or adult sports facilities in the local and regional area in order to understand the current demand, future uses and the economic impact and feasibility of recommendations.

VSBM is interested in understanding how a sports facility could best serve the community by providing an improved quality of life, hotel stays, new jobs and economic impact. HSP is helping VSBM understand the physical and budgetary challenges it faces in embarking upon the construction and management of these facilities.

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§ Local Inventory and Condition Assessment

§ Youth Sports Tournaments and Opportunity Analysis

§ State and Regional Sports Facilities Analysis

§ Recommendations and Partnerships with Neighboring Communities HSP Professionals Involved in Project: Rob Hunden, Ethan Olson, Nick D’Onofrio, Dillon Gilman, Michael Montgomery, Eric Hunden, Suzanne Dorn Time of Service: 2016

Youth Sports Complex; Hotel & Conference Center Feasibility Henderson, Kentucky

The Henderson County Tourism Commission contracted with Hunden Strategic Partners to evaluate existing facilities, youth sports potential and determine the feasibility of a new recreational/ sports development in Henderson, Kentucky. The feasibility analysis also included an assessment of how such a facility could be used for meetings, conventions and other non-sports related events. HSP analyzed the opportunity for both youth sports, as well as hotel and conference activities, given the lack of both in the community. HSP also interviewed nearby Owensboro and Evansville sports leaders to understand how Henderson could piggyback onto their efforts and create a more powerful sports package. HSP’s study profiled existing and new sports facilities in the local and regional market, evaluated youth and adult recreation/ sports programming, made recommendations and analyzed the economic impact of the proposed facility.

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§ Tournament Opportunity Analysis

§ Local and Regional Sports Facility Supply & Demand Analysis

§ Recommended Uses & Development Scenarios

§ Attendance, Financial and Impact Projections

HSP Professionals Involved in Project: Rob Hunden, Ethan Olson, Michael Montgomery, Dillon Gilman, Tim Guedel, Eric Hunden, Nick D’Onofilo Time of Service: 2016

Indoor and Outdoor Sports Tournament Complex Feasibility Study Williamson County, Tennessee

HSP was recently engaged by the Williamson County Convention and Visitors Bureau to determine the market demand, financial feasibility and impact of a potential youth and amateur multisport complex to be located in Williamson County. HSP looked at both indoor sports opportunities as well as outdoor fields. Due to the closure of a major indoor facility by private owners, the community had experienced a decline in youth sports tournament impact. This loss of impact was measurable and supported the notion that youth sports is a very real and positive impact on the local economy.

Williamson County has grown to become a popular destination for youth and amateur sports teams and events both regionally and nationally. Some of this popularity stems from the County’s location and access to much of the country, as well as its climate and adjacency to Nashville. The HSP Team explored what kind of sports should be targeted as well as the optimum number of sports facilities the County should construct for year-round use.

HSP worked with design firm Sink Combs Dethlefs to develop recommended layouts and programs for the indoor and outdoor facilities, then produced demand and financial models, as well as attendance and economic, fiscal and employment impact models to show how well the projects would perform.

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§ Organizational, Operational & Governance Review of Community Recreation Facilities

§ Community and Youth Sports Complex Analysis

§ Comparable Facility Analysis HSP Professionals Involved in Project: Rob Hunden, Rob Smitherman, Eric Hunden Time of Service: 2009

Indianapolis Community Recreation Facilities Study Indianapolis, Indiana

The site of the former Central State Hospital in Indianapolis is being considered for redevelopment as a community recreation complex. The Department of Metropolitan Development and the Mayor’s Office are interested in this redevelopment as a community asset as well as a location for youth and other tournaments.

HSP conducted an analysis for the proposed sports complex for the City. The analysis included a comprehensive review of other similar facilities proposed or developed around the U.S., including cost, funding, ownership, management, revenues, expenses, impact on the community, hotel room nights generated, etc.

The implications for the Central State project were provided to assist the stakeholders in properly moving their project forward.

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§ Sports Facilities Market Analysis

§ Comparable Facility & Site Analysis

§ Multipurpose Sports Facility Feasibility Proposed Development Budget: $74,000,000 HSP Professionals Involved in Project: Rob Hunden, Rob Smitherman, Eric Hunden Time of Service: 2012

Arena and Sports Complex Feasibility Study Hamilton County, Indiana

Hunden Strategic Partners was engaged by the Town of Fishers, Hamilton County Convention and Visitors Bureau and the Hamilton County Sports Authority to conduct a feasibility study for the development of a major youth sports complex to support this nearly 100,000-person community. The youth sports complex, a medium sized multipurpose facility was recommended to serve existing needs as well as plan for future growth. This facility included basketball courts, an indoor turf field suitable for soccer or rugby as well as support facilities such as locker/changing rooms, restrooms, offices and conference rooms. The facility also includes outdoor space for baseball and softball batting and pitching practice. The analysis included comparable facilities and operational models as well as the study of local and national markets to determine existing and potential use of the facilities. An in-depth study of the Indianapolis’ market’s ability to support a minor league franchise was also studied to determine the viability of a new team in this market, in a new mid-sized arena in a suburban area. Ultimately, three models were completed, with the smallest recommended. The Town is now in the process of discussions with a developer. This facility would included 32 basketball courts, an indoor turf field suitable for soccer or rugby as well as support facilities such as locker/changing rooms, restrooms, offices and conference rooms. The facility also includes outdoor space for baseball and softball batting and pitching practice. Attached is a proposed 4,200-seat arena.

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§ Aquatic & Sports Market & Facilities Analysis



§ Economic & Fiscal Impact Analysis Budget: $70+ million HSP Professionals Involved in Project: Rob Hunden, Ethan Olson, Michael Montgomery, Dillon Gilman, Eric Hunden Time of Service: 2015

Aquatic, Tennis & Outdoor Multipurpose Sports Study La Vista, Nebraska

Hunden Strategic Partners (HSP) was engaged by the City of La Vista Nebraska and Sarpy County to perform a complete market and fiscal impact study regarding the potential development of an indoor aquatic and outdoor multipurpose youth sports complex. The purpose of the study is ascertain the feasibility of the Omaha Sports & Wellness Park (OSWP) project as well as understand the current and future sports market in La Vista. Not only will the project include a world-class natatorium, but it will include a major indoor/outdoor tennis complex as well as a major soccer/multipurpose field complex with 18+/- fields.

The athletic facility is envisioned to be a unique contribution to the region so as to recapture community participation and sports spending as well as bring in out of state and/or regional visitors to capture their spending. There are currently no major aquatics facilities of its kinds in the region and the project is expected to be one of the best in the U.S. once built.

HSP analyzed the projections for the project and made its own demand and financial projections in order to create an economic, fiscal and employment impact analysis for the project. This was then used by the city and county to support their decision to fund certain infrastructure associated with the project.

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Project Data

Key Scope Items:

§ Multi-purpose Event Center Analysis

§ Sports, Arena & Convention/Expo Event Market Analysis


HSP Professionals Involved in Project: Rob Hunden, Ethan Olson, Michael Montgomery, Eric Hunden, Dillon Gilman


Monroe Multi-Sports Complex Re-Use Analysis Monroe, Michigan

The City of Monroe, MI engaged HSP, with design partner Sink Combs Dethlefs, to perform a market and needs assessment study regarding the future use of the Monroe Multi-Sports Complex (MMSC). The 74,000-square foot Monroe Multi-Sports Complex, once a beacon of “Hockey Fever”, had been beset with challenges to its current operational and financial structure, based on a much reduced demand level for hockey. The HSP team determined the facility’s optimal future use by taking into account the current physical condition, operations and financial performance, potential revenue and re-use opportunities. The study included a market opportunity analysis, which identified and quantified data in order to make recommendations on three scenarios: 1) The MMSC as a well-attended and financially sustainable indoor-recreation facility; 2) the MMSC as a mixed-used facility encompassing both sports and non-recreational uses; 3) the sale or lease of the MMSC and possible non-municipal uses. HSP spent extensive time assessing non-public uses like meeting, banquet, commercial, retail and other uses.

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§ Organization, Operational & Governance Analysis

§ Sports Market & Facilities Analysis


§ Demand & Financial Projections Project Budget: $17,000,000 - $25,000,000 HSP Professionals Involved in Project: Rob Hunden, Ethan Olson, Shaun Hunt, Eric Hunden Time of Service: 2013

UW Health Sports Factory Redevelopment Study Rockford, Illinois

Hunden Strategic Partners (HSP) was engaged by the city of Rockford to analyze the Rockford market and address the programmatic goals of the UW Health Sports Factory, formally known as the Downtown Sports Complex or Ingersoll. Part of the city’s downtown revitalization plan is to repurpose the site of the former Ingersoll manufacturing facility along the Rock River into a multi-use indoor sports complex.

The indoor sports complex is intended to be one of the largest tournament facilities in the Midwest, with courts to accommodate local and competitive league play. The 110,000-square foot facility consists of eight basketball and 16 volleyball courts that will also accommodate other court sports and events.

HSP performed a market assessment, revenue projections and operation costs for the project. The analysis also included a comprehensive market analysis for the various sports and facilities that are planned as part of the new facility. A review of competitive and comparable sports facilities in the area as well as across the country was conducted to understand the competitive environment that the Sports Complex would be entering for larger regional and national tournaments. Once completed, HSP was able to perform demand and financial projections for the proposed complex.

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§ Sports Market & Facilities Analysis


§ Supporting Amenities Profile

§ Demand & Financial Projections HSP Professionals Involved in Project: Rob Hunden, Ethan Olson, Michael Montgomery, Eric Hunden Time of Service: 2013 - 2015

Bayou Segnette Youth Sports Complex Jefferson Parish, Louisiana

Hunden Strategic Partners (HSP) was engaged by the Louisiana Stadium and Exposition District (LESD) to study the need and opportunity for the development of a multi-purpose indoor and outdoor athletic development.

HSP is performing a market assessment, revenue projections and operation costs for the project. The analysis also included a comprehensive market analysis for the various sports and facilities to determine the local need as well as any potential opportunity for tournaments. A review of competitive and comparable sports facilities in the area as well as across the country is being conducted to determine if there is enough excess demand that a new facility in Jefferson Parish could attract. HSP is also performing demand and financial projections for the proposed complex.

HSP is involved in a three Phase analysis for this project, including a youth sports tournaments and opportunity analysis, site analysis, conceptual design and budget, and an economic, fiscal and employment impact analysis.

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Project Data

Key Scope Items: § Feasibility Study

§ Youth and Adult Sports Market & Facilities Needs Analysis


§ Site Analysis


HSP Professionals Involved in Project: Rob Hunden, Ethan Olson, Michael Montgomery, Dillon Gilman, Eric Hunden


Lexington Sportsplex Market, Financial and Impact Study Lexington, Kentucky

Hunden Strategic Partners (HSP) was engaged by the Bluegrass Sports Commission perform a market and financial analysis and economic impact study regarding the potential development of a sports complex in Lexington, Kentucky.

The athletic facility is envisioned to be a unique contribution to the region so as to recapture community participation and sports spending as well as bring in out of state and/or regional visitors to capture their spending.

HSP explored the optimal facilities and sport types for inclusion in the complex so as to be self-sustaining (based on market opportunity and existing leagues/organizations), recommended best management practices, size, physical components and design concepts as part of a feasibility study, and assessed construction, total project costs, operational costs and revenues, and an economic, fiscal and employment impact of the project.

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§ Recreation Center Market Analysis

§ Comparable Facility & Site Analysis

§ Amphitheater Feasibility HSP Professionals Involved in Project: Rob Hunden, Rob Smitherman, Eric Hunden Time of Service: 2010 – 2011

Fieldhouse Recreation Center and Amphitheater Feasibility Castle Rock, Colorado

Hunden Strategic Partners led a team that included Sink Combs Dethlefs to work with the Town of Castle Rock to complete two studies: the determination of a financially self-sustaining recreation center model as well as an amphitheater feasibility study. This was a unique study, as most recreation centers are developed as public amenities with significant operational losses, however in this case an enterprise model was created that resulted in a facility model that attempts to break even on operations. Comparable facilities and operational models were studied and a recommendation for a development and operating model of the facilities was developed for the next 20 years. The study confirmed the community’s need for a recreation complex. The findings suggested that the community build the facility in two phases, first as a fieldhouse recreation facility (basketball courts, locker rooms, fitness center, baseball fields and multi-purpose field) followed by a traditional full-service recreation center in 2021. The recreational facility opened on October 25, 2014 and includes: Indoor leisure pool with slide; 4 lap lanes; 2 party rooms; trampoline play area; children’s play area; indoor full-sized and half-sized synthetic filed; batting cages; and gulf simulator.

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Project Data

Key Scope Items: ! Feasibility Study

! Sports Market & Facilities Needs Analysis

! Comparable Facility Analysis

! Site Analysis

! Demand & Financial Projections

HSP Professionals Involved in Project: Rob Hunden, Ethan Olson, Michael Montgomery, Dillon Gilman, Eric Hunden; Convergence Design


Osceola County Sports Facilities Expansion Study Osceola County, Florida

Hunden Strategic Partners (HSP) and Convergence Design was engaged by Osceola County, Florida to perform a market and needs assessment study regarding community athletics at Austin Tindall Regional Park, Osceola County Softball Complex on John Young Parkway, and the Stadium at Osceola Heritage Park as part of a major sports facilities master plan and expansion analysis.

Austin-Tindall Regional Park encompasses 115 acres of active and passive recreational areas and is only 9.5 miles from the Orlando International Airport. Austin-Tindall Regional Park is a managed athletic facility that has annual events in soccer, football, lacrosse, and rugby.

The Osceola County Stadium was home to the Houston Astros Spring Training during February and March. Throughout the remainder of the year, the stadium hosts more than sixteen amateur athletic tournaments through partnerships with U.S. Specialty Sports Association (USSSA), Triple Crown, and World Baseball Federation.

The Softball Complex has five (5) softball fields that can be used to host a variety of events. The facility hosts fast pitch softball, slow pitch softball, and youth baseball events. The complex was built in 1996 and is home to 20+ different USSSA events each year, which include a variety of major tournaments

HSP was retained to analyze the historical performance of the three facilities, the opportunities for future growth and expansion of facilities. With both the Houston Astros and USSSA leaving Osceola Heritage Park and the need to expand the other two facilities, a realignment of the sports facilities is needed, including significant expansion and site relocation. HSP recommended the changes and made projections of demand, financial performance and impact on the County.

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! Reuse analysis for riverfront area currently used by casino

! Part of a larger riverfront and downtown analysis

! Mixed-use developments and uses on both sites Development Budget: Up to $80,000,000 HSP Professionals Involved in Project: Rob Hunden, Rob Smitherman, Ethan Olson; Convergence Design Time of Service: 2007 – 2013

Riverfront Sports & Recreation Complex; Riverfront Reuse Analysis Saint Joseph, Missouri

Hunden Strategic Partners has been retained on multiple occasions for the past six years to help St. Joseph redevelop its downtown and redevelop its riverfront.

In the 2012-2013 analysis, HSP and Convergence Design worked with the local casino to move their operation downtown as a centerpiece and leverage point for a multi-use development, including a new potential arena (or rehabbed Civic Arena), new casino-based event center, new casino, hotel, expanded hotel, and a restaurant district.

Currently the local casino and its parking lots are located along the river and comprise a significant area for redevelopment, should the casino move. At the same time, there were a number of community leaders and local sports organizers who recognized a need for more and higher quality sports fields.

HSP conducted interviews with a number of stakeholders to determine the need and opportunity for different types of sports fields and recreation uses. Conceptual drawings and budgets were completed by Convergence Design, part of the HSP team.

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! Sports & Recreation Market Feasibility Study

! Meetings Market Feasibility Study

! Demand & Financial Projections

! Recreation and Sports Comparable Facility Analysis HSP Professionals Involved in Project: Rob Hunden, Ethan Olson, Michael Montgomery, Dillon Gilman; Convergence Design Professionals Time of Service: 2015

Multipurpose Sports, Recreation, Events & Meetings Complex Feasibility Study Placer Valley, California

Placer Valley Tourism recently contacted with HSP and CD to perform a market and financial feasibility study for a multipurpose indoor sports, recreation, event and meetings facility in Placer Valley, California, a trio of smaller communities outside of Sacramento. Sports tournaments are a strong tourism driver in Placer Valley. The area is well provided with outdoor sports fields at a new sports complex, but lacks facilities for indoor sports, recreation and meeting space.

The Team examined the potential market demand for a new facility of between 8 and 16 multipurpose hardwood courts for basketball and volleyball, as well as meeting space and recreational areas. HSP conducted a tournament market analysis and provided competitive and comparable facility case studies.

The Team also performed a local hotel market profile in order to understand what is driving visitors and where a recommended facility might best be situated. Lastly, the Team recommended a site for the new facility and provided conceptual drawings and budgets.

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! Multi-purpose Event Center Analysis

! Arena & Convention/Expo Event Market Analysis

! Site Analysis, Demand & Financial Projections; Economic Impact Analysis Development Budget: $20,000,000 - $40,000,000 HSP Professionals Involved in Project: Rob Hunden, Rob Smitherman; Convergence Design Time of Service: 2009 - 2010

Event Center Feasibility, Financing and Impact Analysis Missoula, Montana

Located on the Clark Fork of the Columbia River in West Central Montana, Missoula is the home of the University of Montana. It is a prime tourist destination for fishing, hiking, camping, cycling and rafting due to its location in the northern Rocky Mountains on the Clark Fork, near the Blackfoot and Bitterroot Rivers and proximate to both Glacier and Yellowstone National Parks. The Missoula Area Economic Development Corporation (MAEDC) and Missoula Area Chamber of Commerce (MACC) spearheaded an effort to assess the feasibility and economic impact of an all-events center. HSP performed a two-phased feasibility and impact analysis, including:

! Market Demand Assessment ! Facility Needs Assessment ! Operations & Management Review ! Financial Analysis ! Economic Impact Analysis ! Hotel Needs Analysis ! Site Analysis

HSP and CD completed all phases of the assignment in early 2010 and the community is seeking a funding solution.

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! Feasibility Study

! Sports Market & Facilities Analysis

! Comparable Facility Analysis

! Demand & Financial Projections Project Budget: $6.2M to $12.0M HSP Professionals Involved in Project: Rob Hunden, Ethan Olson, Michael Montgomery, Dillon Gilman, Eric Hunden; Convergence Design Professionals Time of Service: 2013 – 2014; 2015

Elkhart Athletic Complex Feasibility Study Elkhart, Indiana

Hunden Strategic Partners (HSP) and Convergence Design (CD) was retained by the Elkhart County CVB to study the market and financial realities associated with developing an athletic complex in Elkhart at the interchange of the Indiana Toll Road (Interstates 80 and 90) with Indiana State Road 19, north of downtown Elkhart. The northern portion of the site is known as North Pointe Plaza, while the southern portion is referred to as the Belvedere Inn site. The northern site area is currently dominated by underutilized or vacant retail and the southern portion includes a shuttered hotel. Due to its location at a major Indiana Toll Road interchange, it also has excellent visibility and is surrounded by numerous hotels and restaurants. These two facts combine to make the site a prime redevelopment candidate and one that could potentially support a tournament athletic complex.

HSP performed a market assessment, revenue projections and operation costs for the project. The analysis also included a comprehensive market analysis for the various sports and facilities to determine the local need as well as any potential opportunity for tournaments. A review of competitive and comparable sports facilities in the area as well as across the country is being conducted to determine if there is enough excess demand that a new facility in Elkhart could attract. HSP then performed demand and financial projections for the proposed complex.

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Enid’s South Grand (Rock Island) Park stretches a third of a mile along the Rock Island railroad tracks, where the Oklahoma Land Rush of 1893 began. In the Convergence Design park plan, the historic Rock Island Depot building is restored to preserve a piece of Enid’s past and to provide indoor amenities for users of the Park. This new 20 acre development combines spaces and facilities for recreation, team sports, trail system access, a farmers’ market and community events. The triangular parcel is bounded by the rail lines, a busy arterial street and an established residential neighborhood.

The park was arranged with the highest use activities nearest to the vehicular access points and to the existing parking resources at the north. The farmers’ market benefits from the high visibility provided by highway frontage to the north. An existing stand of second growth trees along the railroad tracks is developed into a disc golf course.

Other site features include fields for soccer and baseball/softball, two playgrounds, demonstration gardens, a rolling “flatcar stage” and picnic shelters. The renovated depot building provides a café, public restrooms, and a bike gear/rental shop. Those accessing the Enid trail system from the Park are supported by a “bike service station” providing air and water around the clock.

South Grand (Rock Island) ParkCity of Enid Parks BoardEnid, Oklahoma

Contact: Ms. Joan RIleyAssistant City Manager401 West Owen K. Garriot RoadEnid OK 73701580- [email protected]

Cost: $1.3 million (estimate)!Completion: 2012 (scheduled)

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Convergence Design was part of a team hired to examine a number of potential new public facilities to promote tourism and economic development in the Greater Burlington (Iowa) area.

Convergence Design’s team led a charrette process that helped to identify possible sites in the area and potential new public facilities ranging from new indoor and outdoor sports fields to a convention center and a railroad museum. The project evaluated each of the potential developments in terms of its potential to realize an economic return on investment based on the estimated capital cost and likely levels of utilization.

The Convergence Design team illustrated the most promising ideas during the charrette with a series of site diagrams and vignette images designed to convey the possible character and overall site layout of the proposed improvements.

The consulting team then evaluated each viable option for its economic viability. The project selected for further development was an indoor sport facility to be located near an existing outdoor field complex. This complex would combine hard surface courts with a removable turf field to provide maximum flexibility.

Indoor Sports FacilityGreater Burlington PartnershipBurlington, Iowa

Scope: Study Contact: Ms. Beth NickelExecutive Director, Burlington Convention & Visitors Bureau610 North 4th Street, Suite 200Burlington, IA [email protected]

Cost: TBD!Completion: 2011 (study)!Profile Codes: 035, 042, 079, 088

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Regions ParkNew Minor League BallparkCity of Birmingham

The Birmingham Barons AA baseball team is relocating to downtown Birmingham. Convergence Design was called to assist with programming and concept design for their new ballpark, to be located adjacent to the new Railroad Park south of the downtown core. Convergence Design provided programming and concept design services for this new ballpark, as a subconsultant to GA Studios, architect of record.

Contact: Chris Giattina, PrincipalGA Studios Architecture1827 First Avenue North, Suite 100Birmingham, AL 35203(205) 933-9060

Scope: Convergence Design provided programming and concept design services for this new ballpark, as a subconsultant to GA Studios, architect of record.

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UNDERSTANDING The City of Rancho Santa Margarita (City or Client) is seeking a qualified firm to assess the market demand, financial feasibility and economic and fiscal impact of a proposed 23-acre sports complex (Project) as part of the development of the Chiquita Ridge Property (Property). The City is considering the Project to meet the current and future needs of the community, to support athletic programs and to generate new tournament-oriented spending from visiting teams.

The Hunden Strategic Partners Team (Team or HSP), including sports architects from Convergence Design, proposes to determine the needs, market, potential funding and facility programming to assess the viability of the Project. Hunden Strategic Partners has completed similar studies throughout the region and nationally, including in Placer Valley and Irvine, CA, several Florida counties, near New Orleans, Henderson and Lexington, KY, near Nashville, TN, and many other locations around the U.S.

HSP recently completed a study of the market demand, financial feasibility and impact of a mix of commercial and residential uses on 32 acres of the same Property. The performance and viability of certain elements of that project, especially any hotel, will be influenced by the sports development. HSP brings to this project a thorough knowledge of the impact the two developments will have on each other, as well as the realities of youth sports complexes. HSP will make recommendations regarding at least two scenarios. One will be more tourism and tournament oriented, which will have a greater economic and fiscal impact, as well as impact on the adjoining development. The other will be more of a locally-oriented facility that will likely have less impact but may also have lower costs.

SCOPE OF SERVICES Hunden Strategic Partners proposes a scope of work that meets or exceeds all of the elements necessary for a feasibility study of this type and addresses all the areas delineated in the project description. HSP is happy to discuss any changes to this scope and to modify the report organization and methodology. HSP’s work is proposed as follows:

§ Task 1 – Kickoff, Project Orientation and Community Outreach § Task 2 – Economic, Demographic and Tourism Analysis (Update from Prior Study) § Task 3 – Local Inventory and Condition Assessment § Task 4 – Local and Regional Sports Facilities Analysis § Task 5 – Sports Tournaments and Opportunity Analysis § Task 6 – Competitive and Comparable Case Studies § Task 7 – Support Amenities: Hotel and Restaurant Supply Analysis (Update from Prior Study) § Task 8 – Site Analysis § Task 9 – Program Matrix, Drawings and Budget § Task 10 – Demand and Financial Projections § Task 11 – Economic, Fiscal and Employment Impact Analysis

HSP’s methodology will be as follows:

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Task 1: Kickoff, Project Orientation and Community Outreach

Kickoff and Project Orientation Phase

As part of the project orientation, HSP professionals will travel to Rancho Santa Margarita to meet with the Client to confirm goals of the study and other contextual issues related to the project. In addition, HSP will review available data related to the project and identify those contacts and resources necessary to ensure complete review and assessment of critical issues, and perform the following tasks:

§ Obtain sports and recreation information and data from the City of Rancho Santa Margarita officials, county departments, and their respective support staffs, as well any other organizations that the Client deems appropriate.

§ Survey and gather input on the proposed project from community members and key stakeholders. § Tour local sports facilities, interview stakeholders from a variety of local private and public organizations,

and perform fieldwork as appropriate. Tour other local/regional current youth and adult facilities/fields including high schools and university facilities. Meet and interview management from those facilities/fields. The goal is to understand the current capacity and utilization as well as any plans or need for expansion.

§ Review the various projects on which HSP professionals have worked and discuss their attributes, implementation and approach. HSP will explore the applicability of prior projects to the proposed assignment and will strive to gain insight into the Client’s goals for development of the facility.

§ Gather and analyze background information related to the project, previously completed studies (including the HSP study that is in progress), site plans or designs related to the proposed facility.

§ Gather and review available economic, demographic and financial data.

Community Outreach Phase

One of the key challenges of the assignment is determining the demand from the public for facilities that could be included in the Project. HSP will meet with the key stakeholders to establish citizen outreach, as well as solicit input from members of the general public. The deeper the assessment of the community’s potential desires and usage, the better the recommended facility will meet the needs of the community. HSP will consult with the Client and other recreational stakeholders on known issues, priorities, local challenges and opportunities from the community’s standpoint. HSP will also work with the Client to identify how the community can be surveyed, whether in-person in existing facilities or via email. HSP will discuss the most efficient way to assess community demand. HSP recommends several methods for determining the demand for various components within the Project:

§ Public Sessions during the kickoff. HSP recommends scheduling two public comment meetings: lunch-hour and after work during the kickoff. These meetings will last approximately 45-60 minutes and will consist of an explanation of the study then request for public feedback on the concept, changes and other factors to be considered. HSP will also encourage the community to consider components that are not included and determine the depth of potential demand for other components. HSP recommends that the Client use its public information system, if available, and social media to promote the two sessions.

§ Online Survey. HSP will conduct an online survey to email addresses held by the City, if available. The survey will be tailored to the Project, will be brief and will identify whether the public is for/against the concept and to what degree specific components of the project are in demand, such as specific sports, aquatic, recreation, meeting, class and others. The results will tailor the physical program of the Project.

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§ Interview with Stakeholders. Throughout the study process, HSP will meet with key internal City staff members to refine uses, community needs and develop program ideas. HSP will also meet with community stake holders to gain insight into the need and desired programming mix.

At the conclusion of the surveys and interviews, HSP will be able to develop a prioritized list of needs for the community. HSP will then connect those priorities to the other opportunities that may exist for inbound economic activity from potential partnerships. The key synergies between each municipal group surveyed will be identified, as well as potential disputes. Working with the Client, HSP will determine the optimal program that matches community needs, provides opportunity for long-term uses and sustainability, and is within the budget available for the project.

Task 2: Economic, Demographic and Tourism Analysis – Update from Prior Study

HSP will evaluate the community’s position as an economic center of activity as well as a destination for visitors, building on the data gathered during our previous work in Rancho Santa Margarita. HSP will also summarize key demand generator trends and comment on the overall growth prospects for the market. This analysis will provide a realistic assessment of the area’s strengths, weaknesses, opportunities and threats (SWOT). Among the data gathered and analyzed will be:

§ Geographic attributes, accessibility and transportation links, § Trends in population growth and income, § Corporate presence, major employers and any significant recent or likely future changes, § Analysis of business and commercial development that may complement an athletic facility, § Higher education and implications for the market and project, § Cores of economic activity, § Major retail destinations, § Profile public assembly and other meeting facilities locally and regionally, § Arts, culture and entertainment assets and activity, § History and expected future trends for tourism, and § General real estate trends, with special emphasis on sports, tourism and major demand generators.

As part of this task, HSP will profile the neighborhood demographics using ESRI Tapestry Segmentation analyses. This analysis tool classifies U.S. residential neighborhoods into 67 distinct segments based on demographic and socioeconomic characteristics and will help the Team assess the proposed site(s) for the new facility. HSP will also profile nearby developments, major roadways, development trends and other factors at play that will materially impact future development opportunity in the development area.

Task 3: Local Sports Facility Supply and Demand Analysis

In this task, HSP will determine both the supply of local facilities for sports as well as the demand for sports to determine if more facilities are needed to support local use. HSP will review and survey the existing owner-furnished inventory of sports facilities in the area, including facilities at the high school and college level. In this analysis, HSP will analyze and document the following conditions:

§ Number of facilities,

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§ Facility type (indoor or outdoor), § Layout, § Capacity, § User & Spectator counts (as available), § Event types and frequency, § Size, § Type of sports usage, § Quality, § Location, § Special needs and adaptive sports usage/sports facilities, § Life expectancy of each facility as it relates to the demand, and § Unique characteristics.

HSP will then inventory and survey the current amateur youth and adult sports tournament activity within the area. This inventory will be broken down into the following participation types:

§ Youth leagues (elite and community), § Youth community recreation, § Adult recreation leagues, and § Professional and semi-professional leagues.

HSP will present each type in terms of participation, attendance and facility needs. This will illustrate a geographic understanding of core demand centers in relation to the existing supply.

This task will be conducted through interviews with relevant sports clubs and organizations with a focus on identifying existing demand, current facility supply and the gaps between the two. Sports with excess demand will be identified and presented in terms of their facility needs. The analysis will include both indoor and outdoor sports, with a concentration on the need for a sports facility.

This will provide HSP with an understanding of the current market and enable it to project future uses of the recommended facilities. This will also enable HSP to compile a supply and demand matrix that will also take into consideration the location of facilities near population nodes, transportation links and demographic pockets. This matrix will implement the findings from the needs analysis to illustrate areas with adequate sports facility supply and those struggling to meet demand.

Task 4: Local and Regional Sports Facilities Analysis

Many of the likely events that could occur at a sports complex will be from around the region. In order to understand the competitive situation in which Rancho Santa Margarita finds itself, the regional competitive sports facilities will be profiled and analyzed. The knowledge gained from new research and HSP’s prior regional studies will provide insight into the sports market for the City, as both competitive and comparative profiles.

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The regional sports facilities analysis will provide a sense of strengths and weaknesses, as well as opportunities and threats. With so many communities embarking on youth and amateur sports facilities, it is important to understand how the elite teams and leagues operate and how they determine where to host events. This analysis will answer both the competitive supply question and the regional demand question. For example, during an analysis we performed in Westfield, Indiana, it was apparent that local sports and elite organizations create a consistent base of local demand (essentially anchor tenants), while state and regional tournaments offer the most opportunity for impact. National tournaments and events may be smaller than regional tournaments (but not always), however provide national recognition and impact that can start a virtuous cycle of tournament hosting success. HSP will also construct a calendar of seasonal usage and tournaments. The calendar will track both the current and potential users.

Task 5: Sports Tournaments and Opportunity Analysis

Of critical importance to this project is the potential for economic and fiscal impact from the inducement of events from national and regional tournaments. Just like local and small regional tournaments, super regional and national tournaments can generate significant visitation, spending, room nights and other positive impacts to a community and can even support the development of other real estate uses if enough consistent local and non-local demand occurs onsite. Participants and their families come from farther distances and therefore must spend the night, unlike those from the 100-mile region that may be “daytrippers.”

HSP will conduct interviews of tournament organizers to determine “what it takes” to host tournaments. Questions will focus on what drives site selection for tournaments, cost factors (rent, travel and tournament fees) as well as likelihood to travel to a new facility. Beyond sports facilities, hotels and restaurants are also becoming a critical component, as well as opportunities for non-tournament family fun. A matrix of the critical factors will be created and then this site will be scored against that matrix. If the proposed site cannot accommodate the size of facilities needed for various sports, that will be noted and alternatives suggested.

Task 6: Competitive and Comparable Case Studies

This Task has two purposes: the first is to understand the facilities that will provide competition for the proposed sports complex, and the second is to then understand how the proposed facility will perform.

Competitive Set: HSP will review and analyze every primary competitive facility in the surrounding region and profile its strengths and weaknesses as well as other information related to the facility, such as the years built and/or expanded, the governance and funding structure (regardless if public or private), the facility offerings, rent rates and other information that will provide implications for a new facility in Rancho Santa Margarita. For those facilities within an hour drive of proposed site, secondary competitive facilities will also be profiled, as these will provide potential competition, depending on the situation.

Comparable Set: In order to determine how the proposed facility will perform, HSP will review similar projects developed in the U.S. in the last several years as well as discuss those under construction or in development. HSP will consider:

§ Location, § Community size and economic/demographic characteristics, § Access, § Visibility, § Size (site and fields/courts),

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§ Physical Development, § Year Built, § Cost and ongoing funding/budgets, § Financing (one-time and ongoing support, if applicable), § Marketing, § Management and Operations, § Performance, § Critical Factors to Success or Failure, § Impacts, if available, and § Others, as appropriate.

These facilities will be profiled and implications discussed. Insight and best practices from these facilities will assist in identifying critical components of these types of facilities that will then be implemented into the recommendations.

This will also set the stage for the competitive matrix that Rancho Santa Margarita will find itself within versus local, regional and national competitors

Task 7: Support Amenities: Hotel and Restaurant Supply Analysis – Update from Prior Report

Because of the critical supporting role hotels play in accommodating events and capturing economic and fiscal impact, the assessment of sports facilities cannot be determined without such an analysis. The HSP Team will analyze the existing local hotel and restaurant supply and plot their locations on a map, showing relative distance to the proposed Project site(s). The analysis will determine the proximate quality room count, as well as the community-wide room count for hotels and the number of sports-friendly restaurants in the nearby area.

For hotels, HSP will conduct a historical supply and demand analysis of the competitive set. This will include: § Tracking of occupancy, monthly room night demand, average daily rate (ADR) and Revenue per Available

Room (RevPAR), § Performance by:

o Year, o Month, o Week, o Day of week, and

§ Seasonality.

The analysis will provide conclusions on the ability of these assets to induce more demand for sports events.

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Task 8: Site Analysis

During the kickoff, HSP will evaluate the site proposed for the Project. Based on the previous tasks, HSP will assess the physical requirements of the proposed facility and will suggest minimum site sizes. Other factors HSP will assess include:

§ Access, § Visibility, § Site conditions and size, § Site cost and availability, § Opportunity for expansion, § Impact on tournaments and other economic drivers, and § Others as identified with the Client.

HSP will review the recommendations discussed with the client and determine the pro’s and con’s, making a ranking of the needs for the potential/recommended Project.

Task 9: Program Matrix, Drawings, and Budget; Presentation to Public/Stakeholders

In this task, HSP will complete a program matrix that outlines possibilities for the proposed sports facility including specifics like number of fields/facilities, possible amenities, and parking scenarios. HSP professionals will present these findings to the Client and any community members or stakeholders selected by the Client in a midpoint PowerPoint presentation. At the conclusion of the presentation, HSP will receive feedback from elected officials, staff, public and stakeholders which will allow HSP to refine the scenarios to one or two preferred alternatives. One will be more recreation oriented, while the other will be more tournament oriented. Once the possible scenarios are determined, HSP will make more detailed recommendations for the proposed new sports facility including amenities, quality and other key elements.

The recommendations will consider the results of all the prior tasks, which will point toward logical conclusions regarding every aspect of the facilities. The recommendations may support or modify the size, scope and use of the facilities depending upon many factors, including input from the Client. The recommendations for the sports facilities will include:

§ All indoor physical programmed areas by use, § Outdoor programmed areas, if any, § Parking, § Back of house and office spaces, § Restroom and locker room facilities, § Point of Sale kiosks or permanent stands, § Retail, and § Others, as appropriate.

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For the program matrix, professionals at Convergence Design will complete preliminary drawings to facilitate fit tests that will help determine possible amenities. Once community input is gathered and the secanrios are narrowed down, Convergence will then complete conceptual drawings and cost estimates for the site(s). Cost proposals for the development of the site(s) will include land costs, infrastructure development, complex development to include parking, fields, lighting, restrooms, concessions, utilities, ingress/egress to major roads, noise/lighting concerns for neighborhoods, environmental impact and proximity to emergency services. Once the physical programs for the Project have been completed, the Team can then develop order-of-magnitude development budgets for each step.

Task 10: Demand and Financial Projections

HSP will make projections for the demand of any proposed facilities. These will be projected for a period of ten years. Projections will include demand by type of event/tournament, average attendance for each type and total attendance by type. Based on the projection of demand and a number of assumptions regarding rental rates, fees, concession per-capita revenues and others, HSP will prepare a financial projection for the facilities. This financial analysis will include the following:

§ Estimated line-item revenues for ten years of operations. Expenses directly related to the facilities will also be projected for the period. The demand profile, experience with similar facilities and data from existing facilities will be used to model the operating revenues and costs of the new complex and will be incorporated into the business plan. The model will generate a proforma operating statement that includes the revenue and expense items, including the following: o Revenues: rental rates, tournament fees, food and beverage, parking and other income, o Direct operating expenses: wages and salaries, contract services, utilities, maintenance and repair,

supplies and other expenses, and o Unallocated expenses: employee benefits, advertising and promotion, general and administrative,

professional services, insurance and other expenses.

The financials will be presented in a line-item by line-item basis, which will lead to estimates of net operating income or loss. Based on the operating loss or profit there will be either funds remaining for debt service or there will be a requirement for ongoing operating support by the public. HSP will make sure to review all possible options to limit losses and create operating profits, including advertising, sponsorships, naming rights, etc. HSP will also analyze and suggest the pro’s and con’s to private management versus public management.

Task 11: Economic, Fiscal, and Employment Impact Analysis

HSP will conduct an economic, fiscal and employment impact analysis to determine the direct, indirect and induced impacts, including the tax revenues that are generated by projected visitors to any new sports facility.

Based on the above analysis, a projection of net new direct spending will be tabulated. New spending is that spending that is new to the community as visitors come to Rancho Santa Margarita and the surrounding area due to a sporting event, spend the night or otherwise spend time or money in the area. HSP will analyze the spending by local residents (transfer spending) and discuss the amount that is recaptured. For example, due to the existence of activity generated by sporting events, economic activity occurs as local residents pass up opportunities to leave the area to spend money. Instead of going to a sporting event in another area, the event keeps their spending within the area. This is considered to be recaptured demand.

The net new and recaptured direct spending is considered to be the Direct Impacts.

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From the direct spending figures, further impact analyses will be completed. § Indirect Impacts are the supply of goods and services resulting from the initial direct spending. For

example, an attendee’s direct expenditure on a hotel room causes the hotel to purchase linens and other items from suppliers. The portion of these hotel purchases that are within the local economy is considered an indirect economic impact.

§ Induced Impacts embody the change in local spending due to the personal expenditures by employees whose incomes are affected by direct and indirect spending. For example, a waitress at a restaurant may have more personal income as a result of the attendee’s visit. The amount of the increased income that the employee spends in the area is considered an induced impact.

§ Fiscal Impacts represent the incremental tax revenue collected by the City and/or County due to the net new economic activity related to a sporting event. For example, our analysis will estimate the hotel and other tax revenue from an overnight stay by an attendee and considers this a fiscal impact. The fiscal impact represents the government’s share of total economic benefit. Fiscal impacts provide an offset to the potential public expenditures required to host events. HSP will identify the taxes affected and conduct an analysis of the impact on these accounts and governmental units.

§ Employment Impacts include the incremental employment provided not only onsite, but due to the spending associated with an event. For example, the direct, indirect and induced impacts generate spending, support new and ongoing businesses, and ultimately result in ongoing employment for citizens. HSP will show the number of ongoing jobs supported by the project and provide the resulting income and income taxes generated.

§ Social Impacts include the availability of youth and community sports or recreation facilities that would not otherwise be open to the general public for exercise, team sports or other use. In this way, facilities built for economic impact from outside visitors are also solid assets for local users to benefit from. The additional physical activity can also lead to a healthier populace, which has many benefits. The community interaction that such facilities engender also strengthen the local social fabric and introduce new potential residents (visitors) to the community. There are a number of other social benefits to such facilities, which will be explored in the study.

Hunden Strategic Partners uses one of the industry’s most relied upon multiplier models, IMPLAN. This input-output model estimates the indirect and induced impacts, as well as employment impacts, based on the local economy. An input-output model generally describes the commodities and income that normally flow through the various sectors of the economy. The indirect and induced expenditure, payroll and employment result from the estimated changes in the flow of income and goods caused by the projected direct impacts. The model data are available by various jurisdictional levels.

DELIVERABLES Midpoint PowerPoint - Prior to the issuance of the draft report, HSP will present a PowerPoint of preliminary findings and a program matrix at approximately seven to eight weeks after kickoff. This will allow the Client and community members to provide feedback and determine in a more detailed manner the next steps in the study process. At the conclusion of the presentation, HSP will receive feedback from elected officials, staff, public and stakeholders which will allow HSP to refine the scenarios to one or two preferred alternatives. One will likely be more recreation oriented, while the other will be more tournament oriented.

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Draft Report – Having completed all these tasks, HSP will compile the results into a fully documented draft report of its findings and recommendations, which will be presented to the Client for review and comment approximately four weeks after the PowerPoint presentation.

Final Report – Approximately two weeks after receiving comments on the draft report, HSP will issue its final report incorporating the Client’s comments.

The HSP team will also make an in-person presentations of the report to the Client and any key officials.

All deliverables, presented in electronic form unless otherwise notified, will be responsive to the Client’s preference. HSP is flexible in its approach.

TIMING AND FEES Timing – HSP proposes to complete the entire study in twelve to fourteen weeks, as outlined in the deliverables above.

Fees – HSP proposes to complete the study for a fee of $59,500, which includes fees for the conceptual design drawings, order of magnitude budgets and other elements from Convergence Design, as well as a three trips to the community by HSP and Convergence professionals. The timing of fees is proposed as follows:

§ Kickoff: $9,500 § Midpoint Presentation: $20,000 § Draft Report: $20,000 § Final Report: $10,000

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