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					    Estimated Economic and Fiscal Impacts
                            Associated with a
                       New Arena in Evansville

                                     Prepared for:
            The Evansville Regional Business Committee


                                                          Presented to:

                                                     The Roberts Stadium
                                                       Advisory Board
                                                         August 19, 2008
Van Andel Arena - Grand Rapids, Michigan

                                                                           1
                           Outline


 CSL Background


 Project Overview

 Summary of Methodology


 Economic Impacts


 Q&A


                                     2
                                                            CSL Background

   Weston Johnson

     Project Manager, CSL International

     Over 8 years of public assembly facility experience

     Consulted on over 80 public assembly facility projects

   CSL International

     Founded in 1988

     15 consultants dedicated solely to the public assembly facility industry

     Over 150 years of collective experience

     Independent research and analysis

                                                                                 3
                                                       Project Overview


   CSL and Gateway Consultants completed feasibility study for a new
    arena

   CSL subsequently retained by the Evansville Regional Business
    Committee to assess economic impact of an arena

   Economic impact analysis based on event, attendance and financial
    estimates presented in feasibility study

   Analysis includes:

       Impacts associated with new arena construction and operations

       Impacts associated with Roberts Stadium operations

       Incremental impacts resulting from new arena

                                                                          4
Summary of Methodology

                         5
                                                    Economic Impact Analysis
                                                                          Methodology



Direct spending represents the first round of quantifiable spending

Total output represents the total direct, indirect and induced spending effects

Personal earnings represent the wages and salaries earned by employees of
businesses associated with or impacted by the operations of the arena and its tenants

Employment represents the number of full- and part-time jobs generated from direct
and indirect spending

Fiscal Impacts represent State and local taxes generated as a result of direct, indirect
and induced spending



                                                                                           6
                                           Economic Impact Analysis
                                                                    Methodology

                   Direct Spending


                                     Sources of Spending




Total Direct
 Spending
               Construction          In-Facility            Out-of-Facility
               • Materials            •   Rentals           •   Hotel
               • Labor                •   Concessions       •   Food & Beverage
               • Professional Fees    •   Merchandise       •   Retail
                                      •   Premium Seating   •   Entertainment
                                      •   Advertising       •   Transportation
                                      •   Naming Rights     •   Miscellaneous

                                                                                  7
                                                                     Economic Impact Analysis
                                                                                             Methodology

                                Direct Spending Adjustments
                      Initial Direct Spending

•   Rentals       •   Naming Rights             •   Retail
•   Concessions   •   Premium Seating           •   Entertainment
•   Merchandise   •   Hotel                     •   Transportation
•   Advertising   •   Food & Beverage           •   Other




                                                    Adjustments

                       • Leakage         • Displacement              • Local Spending
                                                          .



                                                                  Net New Direct Spending
                                                • Non-Local Sources            • Out-of-Town Patrons
                                                              • Spending Remaining in Area
                                                                                                       8
                                        Economic Impact Analysis
                                                                Methodology

                   Multiplier Effect



Direct              In-Facility                         Out-of-Facility




             Food &                                                   Numerous
                            Transport                    Energy/
Indirect   Merchandise                  Manufacturers                   Other
           Wholesaler       Company                      Utilities    Industries



                                                                 All Other
            Business       Household     Governmental
Induced     Services       Spending       Spending
                                                                 Economic
                                                                  Sectors

                                                                                   9
                                                                        Economic Impact Analysis
                                                                                                   Methodology


                                          Summary of Key Assumptions

                         Annual        Average                           Per Capita Spending
Event Type               Events       Attendance       Tickets      Concessions Merchandise          Parking (1)

IHL Tenant                 38            3,500          $12.00           $7.50             $2.00       $1.00
U of E Basketball          30            3,500          $15.00           $4.00             $2.00       $1.00
Concerts                   15            6,000          $35.00           $7.50             $6.00       $1.00
Ice Shows                   5            3,500          $25.00           $2.50             $2.50       $1.00
Family Shows               15            4,000          $20.00           $2.50             $3.00       $1.00
Rodeos                      3            4,000          $17.50           $6.00             $4.00       $1.00
Motor Sports                3            5,500          $20.00           $6.00             $3.50       $1.00
Other Sports                8            3,500          $15.00           $4.00             $2.00       $1.00
Community Events            8            3,000           $0.00           $1.50             $0.00       $0.00
Other Events               10             500            $0.00           $1.50             $0.00       $0.00
Total Events               135
(1) Assumes each paid admission to arena events will include a $1.00 charge for parking.


                                                                                                                   10
                                                        Economic Impact Analysis
                                                                            Methodology
Out-of-Arena Spending Assumptions
   Estimates are based on:

        Patron origin information provided by SMG

        Tourism economic impact analysis provided by CVB

   40 to 60 percent of attendees assumed to originate from outside of Evansville, depending
    on event type

   Majority of non-residents are assumed to be day trippers

   2 to 15 percent of attendees assumed to make overnight stay, depending on event type

   Spending by Evansville residents has not been included in the calculation of economic
    impacts

   Day trippers estimated to spend $20 in Evansville

   Visitors making overnight stay estimated to spend $85 per day in Evansville
                                                                                            11
Economic Impacts

                   12
                                              Economic Impacts
                                        Construction Period Impacts


               Estimated Project Cost
                    $92,200,000




                  Local Spending
                    $46,100,000




Total Output     Personal Earnings                Employment
$70,157,000         $30,431,000                    670 jobs

                                                                 13
                                                        Economic Impacts
                                                 Annual Impacts – New Arena


                             Direct Spending
                               $13,707,000




Total Output                 Personal Earnings                Employment
$19,082,000                     $7,287,000                      530 jobs



               State Taxes                       County Taxes
               $1,245,000                          $165,000

                                                                           14
                                                                     Economic Impacts
                                                             Annual Impacts - Incremental



                                           Roberts          New     Incremental Percent
                                           Stadium         Arena        Impacts Increase
Direct Spending                          $8,083,000   $13,707,000    $5,624,000     70%
Total Output                            $11,302,000   $19,082,000    $7,780,000     69%
Personal Earnings                        $4,248,000    $7,287,000    $3,039,000     72%
             (1)
Employment                                      300           530           230     77%

Tax Collections
  State                                   $742,000     $1,245,000     $503,000      68%
  County                                   110,000        165,000       55,000      50%
Total Tax Collections                     $852,000     $1,410,000     $558,000      65%
(1) Includes full and part-time jobs.




                                                                                           15
                                                                              Economic Impacts
                                                         Annual Impacts – No Hockey Scenario



                                                      New Arena                                 Value
                                           Roberts     Excluding    Incremental Percent        Added
                                           Stadium       Hockey         Impacts Increase   by Hockey
Direct Spending                          $8,083,000   $10,216,000    $2,133,000     26%    $3,491,000
Total Output                            $11,302,000   $14,141,000    $2,839,000     25%    $4,941,000
Personal Earnings                        $4,248,000    $5,551,000    $1,303,000     31%    $1,736,000
Employment (1)                                  300           410           110     37%           120

Tax Collections
  State                                   $742,000       $911,000     $169,000      23%     $334,000
  County                                   110,000        122,000       12,000      11%       43,000
Total Tax Collections                     $852,000     $1,033,000     $181,000      21%     $377,000
(1) Includes full and part-time jobs.




                                                                                                        16
                                                      Economic Impacts
                                                         Qualitative Impacts

   In addition to quantified impacts, arena development benefits
    community in various ways


   Researched impacts experienced in several communities that have
    developed new arenas in recent years


   Interviewed community representatives:
       Municipalities
       Convention & Visitors Bureaus
       Chambers of Commerce
       Development Corporations


                                                                          17
                                                        Economic Impacts
                                                           Qualitative Impacts

   Quality of Life
       Diversified activities for local residents and families
       Makes community a more attractive place to reside
       Retain and attract an educated workforce


   Community Pride
       Successful completion of a large-scale, visible project
       State-of-the-art facility
       Support of tenant sports teams




                                                                            18
                                                    Economic Impacts
                                                       Qualitative Impacts

   Community Asset
       New venue for graduations, community events, religious
        gatherings, corporate events, etc.
       Estimated 18 community and other similar events per year (13
        percent of total estimated events)
       Benefits citizens who may not attend sports and entertainment
        events


   Exposure and Reputation
       More prestigious and visible events
       Media recognition in other hockey markets
       Fosters perception as a vibrant community

                                                                        19
                                                       Economic Impacts
                                                            Qualitative Impacts

   Business Opportunities
       Corporate entertainment
       Advertising and sponsorships
       Increased exposure and improved reputation for local businesses


   Synergies with existing venues
       Potential for The Centre to attract larger events
       Increase Evansville’s attractiveness as a convention and
        conference destination




                                                                             20
                                                     Economic Impacts
                                                       Qualitative Impacts

   Economic Development
       Support additional development in downtown area
       Browning Investments planning new hotel


   Comparable market examples:
       Corpus Christi experienced revitalization of downtown area
       Grand Rapids, Michigan increased annual downtown investment
        from $59 million to $107 million
       Everett, Washington opened 20 new businesses within 3 blocks
        of arena
       Manchester, New Hampshire experienced over $100 million in
        private development in downtown area

                                                                        21
Q&A

      22

				
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