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Mr. Nyle Zikmund October 25, 2021 Page 5 of 7 Specifically, from these data we will provide information on the following: • Description of events and activities that could utilize a youth and amateur sports complex. • Appropriate mix of utilization from each category. • Projected attendance at each type of activity/sport. • Estimates of patron spending on concessions, merchandise, tickets, etc. • Access and/or rental terms anticipated. • Level of patron use. We will identify the event markets that represent the primary sources of demand for a youth and amateurs ports complex in Mounds View and assess the potential penetration of these markets to estimate event levels, attendance levels and other primary characteristics by type of activity/sport. These estimates will form the basis on which we will evaluate the financial implications of operating a new youth and amateur sports complex and its ability to accommodate demand and fill areas of need in the market. Task 7. Cost Analysis In this task, we will preliminarily estimate order -of -magnitude construction costs, as well as annual financial operating costs for a new youth and amateur sports complex. The projection of estimated construction costs will be based on per - unit data among identified youth and amateur sports complexes and other types of venues comparable to the new event facility projected to be market supportable in Mounds View. These high-level models will be adjusted for time, location and present-day market conditions. We will then conduct a detailed financial analysis to develop an operating budget and pro forma financial statements for the first few years of operations, through a stabilized year, for a new youth and amateur sports complex under the identified supportable development scenario(s). Based on the potential event/usage mix, facility usage levels, attendance, rent and fee structures, per capita spending estimates, our knowledge of the industry, and the financial performance of comparable youth and amateur sports complexes, we will prepare estimates of operating revenues and expenses associated with a potential new venue in Mounds View. Revenue and expense estimates will include, but are not limited to, the following: Facility Rental Fees Registration/Membership Fees Concessions Merchandise Parking Advertising / Sponsorships Naming Rights Other Miscellaneous Revenue Labor Utilities Insurance Contract Services Repairs and Maintenance Administration Capital Reserve Funding Other Miscellaneous Expenses We will develop a detailed integrated financial model that accommodates extensive sensitivity analysis to estimate the financial operations specific to a new venue under each supportable development scenario identified in the previous phase. This model allows flexibility in adjusting certain key variables and cost-effective analysis of a variety of potential facility operating scenarios and supportable program characteristics. In addition, this sensitivity analysis allows us to estimate potential annual fluctuations by modifying various inputs and assumptions, thereby providing an assessment of the potential financial and operating risks involved with facility operations. Task 8. Economic Impact Analysis Next, we will estimate the economic and fiscal (tax) impacts associated with the operation of a new youth and amateur sports complex, under each supportable development scenario identified in the previous phase. As part of this analysis, we will develop estimates of total incremental out-of-town visitors to the Mounds View area generated as a result of the operation of a new youth and amateur sports complex. We will then apply appropriate per -attendee spending estimates using industry data adjusted to the local area. The resulting attendee spending levels will be segmented by industry and applied to economic impact multipliers.