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Home My WebLink AboutAgenda Packets - 2022/09/06CITY OF MOUNDS VIEW CITY COUNCIL WORK SESSION AGENDA MOUNDS VIEW CITY HALL Tuesday, September 6, 2022 6:30 p.m. ROLL CALL: Mueller, Hull, Meehlhause, Bergeron, Cermak Council Workshops are informal gatherings of the council at which no final decisions are made, rather consensus discussion to direct staff on council decision items. PUBLIC COMMENT Citizens may speak to issues not on tonight’s agenda. Before speaking, please share your full name and address. Also, please limit your comments to three minutes. AGENDA ITEMS DISCUSSED BY CONSENSUS 1.Advanced Kiosk-Teams Webinar Meeting - Brian 2.Metro Transit - Jon 3.Ramsey County Critical Corridors Grants – Brian & Jon 4.Forgivable Loan Origination Fee – Brian & Mark 5.Community Center Expansion – Re-engage and Update Discussion - Nyle NEXT COUNCIL WORK SESSION: Monday, October 3, 2022 at 6:30 pm NEXT COUNCIL MEETING: Monday, September 12, 2022 at 6:30 pm THIS PAGE LEFT BLANK INTENTIONALLY The Mounds View Vision A Thriving Desirable Community Item No: 01 Meeting Date: Sep 06, 2022 Type of Business Council Worksession City Administrator Review City of Mounds View Staff Report To: Honorable Mayor and City Council From: Brian Beeman, Assistant City Administrator Item Title/Subject: Advanced Kiosk Introduction: Since COVID and the fact that government agencies and businesses were forced to shut down their physical operations and convert to remote services, many municipalities and private businesses across the nation have been converting to a hybrid system for customer service. For example, some car dealerships installed touch screen kiosks for customers wishing to purchase vehicles since most of their staff was off site. Some Counties and other governmental agencies have converted to kiosks for licensing and other general services. It is not known if another pandemic, version, or wave will hit the U.S. and many companies have decided to continue with working remotely. Therefore, staff has researched the kiosk option in order to keep the same level of services for residents. Discussion: Advanced Kiosks has been asked to provide the City Council with an overview of their products and services and options for transitioning to a hybrid system. Advanced Kiosks will not be physically present at the City Council worksession. However, they will be streaming into the meeting via a Microsoft Teams meeting. As, they have stated that they have been in overdrive since the pandemic started. Advanced Kiosks offers a variety of options including licensing, payment, permitting, general information, language translation, voice & video, and even the ability for any staff member to interact via voice and/or video remotely. This could be a good alternative in keeping the front lobby area open in case of another shut down or even offering services on the weekends. Paying utility bills or other bills, contractors needing to fill out permits, dog licensing, general questions in multiple languages eliminating the need to hire an interpreter, and offering a 24 hour service to residents is all possible with the kiosk system. As, some residents still prefer to drive to City Hall to take care of their needs and this the kiosk option will allow them that convenience whether or not City Hall is closed or open. This may even be a good option for the Community and Event Center. Strategic Plan Strategy/Goal: A Progressive City that is welcoming and a desirable destination to all ages & cultures, who seeks progress through partnerships, and a place where residents can work, live, and play and show pride in the community. Provide good customer service in a timely manner. Financial Impact: The cost for the kiosk service varies depending on service and type of machine. More details will be provided in the Zoom presentation. Recommendation: Listen to the Advanced Kiosk presentation and ask any questions as necessary. Respectfully, Brian Beeman, MPA, CMC Assistant City Administrator ATTACHMENT(S): 1)Advanced Kiosk Brochure THIS PAGE LEFT BLANK INTENTIONALLY 54” 19” Touch Screen Monitor LED AccentingLighting Document Scanner Peripheral Option28” Backlit Metal Keyboard with Trackball Monochrome Laser Printer Brilliant 19” Touchscreen Monitor Friendly and Functional Backlit Metal Keyboard with Trackpad Many Available Options LOBBY KIOSK UNMATCHED 3 YEAR WARRANTY LAST REVISED 09.25.2020 OVER 17 YEARS OF EXPERIENCE IN SELF-SERVICE TECHNOLOGY COMPUTER SPECIFICATIONS Processor Memory Graphics Storage Operating Temperature Connectivity MTTF Intel 2.60GHz Dual Core 4GB DDR3 1333/1600 Intel HD Graphics 120GB Solid State Drive 0°C to 60°C (32°F to 140°F) WiFi / Ethernet or Cellular 50,000 Hours Display Size Aspect ratio Touch Technology Display Technology Native (Optimal) Resolution Operating System 19” Touch Screen 4:3 PCAP TFT LCD with LED backlight 1920 X 1080 Windows 10 Professional KIOSK PHYSICAL SPECIFICATIONS Weight (lbs.)Dims (L x W x H)Inches Footprint w/base Voltage Input Range Watts @ 110VAC 170 lbs.24”L X 28”W X 54”H None 100-240VAC 57.2W KIOSK SHIPPING SPECIFICATIONS Ships In/On Weight (lbs.)Dims (L x W x H) Inches Logistics Crate 200 lbs.24”L X 30”W X 58”H Freight The Lobby Kiosk has a sleek and modern look with a rugged build. These two attributes make it a popular choice for organizations looking to enhance their visitors’ overall experience. •19″ LCD Touchscreen •14 Gauge Steel Front •Thermal Cooling System •Backlit Metal Keyboard with Trackpad •Monochrome Laser Printer •Lock and Key Access Panel •Amplified Stereo Speakers •Surge Protection •WiFi / Ethernet Connectivity •Easy Set Up Manuals •Windows 10 Professional STANDARD OPTIONS ®LOBBY KIOSK SPECIFICATIONS LAST REVISED 09.25.2020 WWW.ADVANCEDKIOSKS.COM FOR MORE INFORMATION ON THE LOBBY KIOSK CALL: 1 (866) 783-3791 EMAIL: SALES@ADVANCEDKIOSKS.COM SOFTWARE Have your kiosk pre-installed with our powerful ZAMOK kiosk software. Features and benefits include: FEATURES •Modify Kiosk Content from Any Computer •Kiosk Usage Stats & Reporting •Easy To Use Prebuilt Screen Templates •Add Company Branding & Logos •Configure Text or Email Alerts •No Technical Skill Required •Restrict Web Access as Desired •Energy Saver & Screensavers •Print, Scan or Copy Documents •VoIP Calling Technology •Video Conferencing •Scan Credit Cards, IDs or Barcodes •Survey Your Customers •Point of Sales (POS) System ZAMOK HARDWAREOPTIONAL BENEFITS •Easy to Use •Get More Value Out of Your Investment UPGRADE OPTIONS •RFID Reader •Credit Card Reader •Signature Pad •Document Scanner •VoIP Handset •Vinyl Graphics and Logo •Barcode Scanner •Built-in Web Camera •Biometric Reader •Privacy Screen •Battery Backup UPS •Computer Upgrades •AK Support Service LOBBY KIOSK The Friendly and Functional Reception Kiosk 0Item No: 01 Meeting Date: Sep 6, 2022 Type of Business: Work Session City Administrator Review: _____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Jon Sevald, Community Development Director Item Title/Subject: Metro Transit Route #25 Introduction: In fall 2021, the City Council requested MTC provide additional transit services in Mounds View. MTC has stated that ridership and operations do not support additional service, but that routes can be adjusted. Beginning December 2022, Route 25 will be shifted to provide service along County Road I, and Quincy Street (removes portions of Silver Lake Road). MTC has shifted the route off of Red Oak Drive in response to resident’s concerns regarding increased traffic. Unless the Council has any objections, the route has been finalized. Discussion: Metro Transit (MTC) operates regional mass transit. In Mounds View, bus service includes local, express, and dial-a-ride service. Fixed routes include: •Route 25:Northtown Mall – downtown Minneapolis – Hwy 100 & Cedar Lake Rd •Route 250: Radisson Road Park & Ride – downtown Minneapolis •Route 804: Co Rd H Park & Ride – Saint Anthony Village In September, 2020, Express Routes 825 (Northtown Mall – downtown Minneapolis) and 860 (Northtown Mall – downtown St Paul) were suspended due to decreased ridership. In September 2021, the City Council adopted the 2040 Comprehensive Plan. The Plan includes Transportation Policies related to (summarized) supporting Transit Oriented Development, mass transit, alternative transit, and transit facilities.1 In the fall of 2021, the City Council requested to meet with MTC to discuss transit options and the lack of service in the northeast quadrant of the City. MTC Staff presented at the March 14, 2022 City Council meeting. Additionally, MTC staffed a booth at the April 18th Town Hall. In June 2022, the City Council adopted the 2023-2025 Strategic Plan. Goals related to transit include (paraphrased) find ways to improve amenities for pedestrians and transit options. Metro Transit Route 25 Route 25 currently operates weekdays; 14 trips north and 17 trips south, and Saturdays, 7 trips north and 7 trips south. Route 25 ridership decreased from 49 daily boardings in fall 2019, to 30 daily boardings in fall 2021. Throughout the past year, Staff and MTC continued to discuss options, primarily if to be rerouted south of County Road I on Quincy Street (sidewalk & closer to manufactured home park, but competes with school traffic) vs. Jackson Drive (adjacent to apartments, but no sidewalk, and further from manufactured home park). This culminated in MTC mailing a letter to 1 To provide context, in 2019, MTC’s Park & Ride lease at The Mermaid expired, leading to conversations of the potential for a ramp on Co Rd H (not financially feasible), and TOD potential adjacent to the Park & Ride lot. Page 2 of 2 The Mounds View Vision A Thriving Desirable Community affected residents in early August, and an article in the Fall 2022 Mounds View Matters. During the August 22nd City Council Open Forum, 13 residents (8 live on the 7900-8100 blocks of Red Oak Drive) expressed opposition to the route being changed onto their street. Their concerns are primarily due to increased traffic, and pedestrian safety (Red Oak does not have a sidewalk). MTC has since, moved the route off of Red Oak Drive, and onto Long Lake Road. MTC has discussed the re-route onto Quincy Street with ISD 621’s Superintendent’s Office. At the August 22nd Council meeting, a Quincy Street resident opposed the route due to conflicts with school traffic. If the route were shifted off of Quincy and onto Jackson (no sidewalks), bus stops would be ¼ mile further from Mounds View Mobile Home Park. All route changes take effect in December or March, and require a finalization three months ahead of time (e.g. August 31st deadline if to start in December 1st). If there are any significant objections, then the December start will be delayed until March. Strategic Plan Strategy/Goal: Maintain and plan for infrastructure improvements including waste water, water, and transportation. Financial Impact: N/A Recommendation: Staff requests that the City Council review the attached materials and ask questions. MTC Staff will be in attendance. Respectfully, Jon Sevald, AICP Community Development Director ATTACHED Route 25 Map Metro Transit presentation, March 24, 2022 35W 10 10 Co Rd J Co Rd J Ardan Ave Spring Lake RdLong Lake RdHillview Rd Silver Lake RdCo Rd H2Long Lake RdCo Rd H Old Hwy 8 Mustang DrWindsorM o u n d s V i e w B l v d Longview DrRed Oak DrSunnyside RdBrighton LnRainbow LnEastwood RdGreenwood DrWoodcrest Dr Woodale Dr Ridge Ln Scotland Ct Park View DrBronson Co Rd I Sunnyside RdGreenwood DrSherwood RdFairchild AveGroveland RdKnollwood DrCoral Sea StCo Rd I Quincy StWoodale Dr Bronson DrJackson DrPleasant View DrEdgewood DrSaint Stephen StSpring Lake RdLong Lake RdHillview RdRed Oak DrSunnyside RdEastwood RdGreenwood DrFairchild AveGroveland RdKnollwood DrKnollwood Dr84 Av Sherwood Laport Laport Dr JacksonGreenfieldEdgewood DrWoodlawn DrBona RdRed OakKnoll DrLois DrQuincy StOakwood Dr Terrace Dr Pinewood D r Forest Lake Service RdOakwood St. Stephen StSt. Michael StPinewood Belle Ln G l e n h a v e n Cli�on DrRaymond AveMontclair AveArdmoreStra�ordProgram AveLambert Ave Co Rd H2EricksonAdam StGroberg Greenfield AveWoodlawn Bronson Dr M o u n d s V e w D r Lake Ct CirLake Ct D r Oakwood KnollwoodS�nson BlvdHillview Rd GloriaBronson Dr 73rd Ave Hidde n HollowW o o d a le D r Pleasant View DrSpringview Woodc re s tCo Rd H JeffreyO’Connell DrGreenfieldWoodale Clearview Ave Louisa Ave Ridge LnSkiba DrIrondale RdClearview Edgewood DrBona RdC l i � o n Squire Ln Cornell DrCabot DrBunker HillQuaker TroyGreenfield Landmark CirPinewood82nd Ln 84th Ln Dickens Ln Buckingham Ln LondonaryKings Way Ln Cheshire WellingtonMustang CirMOUNDS VIEW NEW BRIGHTON ARDEN HILLSSHOREVIEWFRIDLEYBLAINE SPRING LAKE PARK 804 252 250 25 N 0 ½ miles Park & Ride Other area routes Bus Stop - Close Bus Stop - New Bus Stop - Keep Route 25 - proposed Route 25 - exis�ng Legend Date: 08/31/2022 Route 25 - Proposed Changes for December 2022 - Modified Route 25 in Mounds View –Routing Scenarios Victoria Dan |March 24, 2022 metrotransit.org/route/25 Existing Route 25 •Fall 2021 boardings at approximate locations •Low ridership south of CR H2 •Posted speeds 20-40 mph –School zones, city streets, county roads 1 •2 signalized intersections •11 STOP-controlled intersections •No direct service to generators like ALDI, apartments, and mobile homes east of Mounds View Blvd (CH 10) 2 Guiding Principles •Enhance transit access to homes and destinations. •Minimize impacts to riders. –How many current riders will be impacted because they must walk/roll to a different bus stop within a quarter-mile? –How many current riders will be abandoned because they are beyond a quarter-mile of alternative bus stops? –How will the rider’s experience change if they must use a different bus stop? •Ensure buses can operate safely and riders have safe and reasonable access to bus stops. •Balance transit access with resources and schedules. 3 Option 1a: Jackson Dr. •Enhance access to apartments, ALDI, city hall, and rec center •2/12 current riders impacted •5/12 current riders abandoned !Jackson Dr. posted weight limit prohibitive to buses (5 tons per axle). 4 Option 1b: Quincy St. •Enhance access to apartments, ALDI, city hall, rec center, and mobile homes •2/12 current riders impacted •5/12 current riders abandoned !Apartment residents will likely cross CR I at unmarked locations due to distance to nearest striped crosswalks. 5 Option 2: Silver Lake Rd. •Continue direct service on CR H2 b/w Silver Lake Rd and Long Lake Rd •0/12 current riders impacted •4/12 current riders abandoned 6 Option 3a: via SLR to CR I •Continue direct service to riders at CH 10 and Silver Lake Rd •0/12 current riders impacted •0/12 current riders abandoned !Observations of peak signal delay crossing CH 10 are over 2 min. per crossing. There is insufficient time in the schedule to cross CH 10 more than once. This option is not recommended for further consideration. 7 Option 3b: Red Oak Dr. •Provide alternative access to impacted riders at CH 10 and Silver Lake Rd. •4/12 current riders impacted •0/12 current riders abandoned !Riders at CH 10 and Silver Lake Rd with origins/destinations west of CH 10 will need to cross 6 traffic lanes (crosswalks ~140 ft.) 8 Jackson Drive versus Quincy Street •If buses are routed via Jackson Drive… –Apartment residents will have opportunities to cross the street on a slower road. –However , mobile homes will be beyond reasonable quarter-mile access of bus stops. •If buses are routed via Quincy Street… –Residents at Riverstone Communities mobile homes will have access to bus stops. –However , apartment residents will be more likely to cross at unmarked, uncontrolled intersections on County Road I. –Further, Pinewood Elementary traffic could present operational delays during school start/end times. –Finally, adjacent land uses on Quincy Street are primarily single-family homes. 9 Additional Topics and Questions •Is the Jackson Dr. weight limit an engineering limitation? If not, can buses be permitted on this street? •Can snow removal be prioritized on segments of city streets with new bus service? •Are there concerns over removing on-street parking at new bus stops? •Are there any local plans for pedestrian facility improvements? E.g. sidewalks, trails, crosswalks, other roadway designs. –Potential new bus stops would be evaluated for future ADA improvements (e.g. boarding pad). 10 Next Steps •April 18 –Mounds View Town Hall, engagement kick-off –Option A: Solicit feedback about a preferred re-route •2-week outreach period will gather comments to inform an August 2022 re-route –Option B: Solicit feedback about general transit service in the community •Outreach period can be extended as needed to inform a December 2022 or March 2023 re-route 11 Thank You! Victoria Dan victoria.dan@metrotransit.org 612-349-7648 The Mounds View Vision A Thriving Desirable Community Item No: 03 Meeting Date: Sep 6, 2022 Type of Business: WS City Administrator Review: _____ City of Mounds View Staff Report To: Honorable Mayor and City Council From: Brian Beeman, Assistant City Administrator Jon Sevald, Community Development Director Item Title/Subject: Ramsey County Critical Corridors Grants Discussion: As part of Ramsey County’s new HRA levy, the County is funding “Critical Corridors” grants: 1. Pre-Development Planning (up to $50,000, to be completed in 2023) 2. Development & Infrastructure (up to $500,000, to be completed in 2023-2024) 3. Commercial Corridor Initiative (up to $50,000, to be completed in 2023) Most of Mounds View is located within “critical corridors”. The grants were announced on August 29th. Applications are due September 28th. Staff brainstormed ideas, and came up with the following qualifying projects: Location Grant Project Mounds View Boulevard Pre-Development Planning Update 1999 corridor study (public realm improvements) 2523 Mounds View Blvd Mounds View Square Redevelopment feasibility study 2310 Mounds View Blvd Woodale Drive Apartments Development & Infrastructure Public realm improvements or amenities Stormwater Management Ardan Park Loop trail 2408-2410 Co Rd I Filipino Village/Kusina 1 Commercial Corridor Initiative Façade Improvement Mounds View Boulevard (various businesses) Strategic Plan Strategy/Goal: Continue BR&E program, maximize utilization of development space and current list of available sites, encourage land owners to maintain their properties, & consider residential redevelopment. Financial Impact: TBD. No local match is required, but is encouraged in order to be competitive. Recommendation: Staff requests direction from the Council if to pursue any or all grant opportunities. Cooperation from owners is needed (may self-eliminate some projects). Respectfully, 1 Ineligible Activities include activities that benefit a “single” business. The Mounds View Vision A Thriving Desirable Community Brian Beeman Jon Sevald Assistant City Administrator Community Development Director ATTACHED Eligible Corridors Grant Guidelines The Mounds View Vision A Thriving Desirable Community Eligible Corridors (green & yellow) 1Critical Corridors Pre-Development Planning Grant Guidelines Critical Corridors Pre-Development Planning Grant Guidelines Purpose The Critical Corridors Pre-Development Planning Grant assists local communities in preparing for public improvements and equitable redevelopment within transit, economic and cultural corridors. Land use development patterns and associated infrastructure have a strong relationship to greenhouse gas emissions, public health indicators, racial disparities and economic resiliency. Transforming critical corridors within Ramsey County from mainly auto-oriented areas to more compact, walkable environments can create greater connectivity between housing, jobs, and destinations, while enhancing pedestrian access and safety. Eligible Applicants Cities, housing authorities, economic development authorities, port authorities, watershed districts and community-based nonprofit organizations in Ramsey County. Eligible Activities • Small area plans • Corridor plans • Station area plans • Redevelopment feasibility or market analyses (including “Missing Middle” housing analysis). • Infrastructure planning and conceptual designs including: o Pedestrian and bike connections. o Public realm improvements. o walking-oriented development. o ‘Safe Routes to Transit’ plans to enhance safe pedestrian access to transit. o District energy/stormwater system plans. • Land use and/or zoning studies to reduce minimum parking standards and increase land use intensification within transit corridors. • Equitable development policy and/or plan development (including inclusive housing policy). Ineligible Activities • Capital costs and equipment. • Road-centric planning, activities related to redesigning County roads. • General sewer or water infrastructure planning. • Traffic or parking studies not corresponding to parking reduction goals. • Site plans. • Soft costs (architectural, appraisals). Funding Maximum anticipated award is $50,000, per project. Projects must be completed by December 31, 2023. Activities completed prior to grant award are not eligible for reimbursement. Strategic and Selection Priorities • Actions leading to intensification of land use emphasizing pedestrian environment and transit service. • Actions encouraging multi-family zoning/ development. • Actions improving pedestrian and/or bike environments, safety, and access. • Actions likely to catalyze surrounding development with non-displacement of current residents. • Parity in funding between projects in Saint Paul and suburbs. 2Critical Corridors Pre-Development Planning Grant Guidelines Application Process Applications will be accepted via ZoomGrants between Monday August 29, 2022 and Wednesday, September 28, 2022. To access the application, visit ramseycounty.us/CriticalCorridors. Applications should include: 1. Ramsey County Pre-development Planning Grant application. 2. Map of proposed project area. 3. Letters indicating community support. Funding decisions are anticipated in November 2022. Potential applicants are encouraged to contact Martha Faust at martha.faust@ramseycounty.us or 651-358-4341 to discuss their project before applying. Local Government Resolution of Support A city council resolution must be adopted to receive Ramsey County Pre-Development Planning funding. This resolution must be submitted if funds are awarded (anticipated in November 2022), but if it is not possible to obtain by the application deadline, then a letter of support from city planning/economic development staff may be submitted in its place. Application Evaluation Ramsey County seeks to address racial equity and ethnic-based disparities where all residents can experience fair outcomes including the highest level of health, wellbeing, and opportunities for advancement and growth. Please review the Ramsey County Economic Competitiveness and Inclusion Plan, Equitable Development Framework, Strategic Plan, Bike and Pedestrian Plan and All Abilities 2050 Transportation Plan for the County’s goals and priorities. When determining funding awards, the County will prioritize proposals that best meet the County’s planning goals and priorities while aligning with local community priorities. Applications will be reviewed by a committee consisting of Ramsey County Community & Economic Development staff and other reviewers as deemed necessary. Contracting and Reporting Ramsey County will contract directly with grantees for the portion of the proposed work covered by the grant award. All grantees are required to submit a final report summarizing the project process, outcomes and impacts of completed work. Receiving funds through this program does not guarantee that future capital funding will be made available. Critical Corridors Development & Infrastructure Grant – Guidelines 1 Critical Corridors Development & Infrastructure Grant Guidelines Purpose The Ramsey County Development & Infrastructure Grant funds inclusive redevelopment and public infrastructure within transit, economic and cultural corridors. The program supports efficient land use and compact built form to enhance connectivity between housing, jobs, retail and services, while creating walkable environments. Eligible Applicants Developers (for-profit or non-profit), government agencies and related development authorities. Eligible Activities • Extraordinary costs of housing, commercial or mixed-use redevelopment projects o Clearing acquired property and installation of streets, utilities and other site improvements (in conjunction with the redevelopment project) o Public realm improvements or amenities (accessible to the public on private property). o Stormwater management. o Geotechnical soil correction. o Building & related structures removal through demolition, deconstruction or moving (demolition, destruction, removal, and clearance of all structures and other improvements on the project site). o Parking removal in redevelopment (resulting in a net decrease of at least 10% of parking) • Public site infrastructure improvements (water and sewer, standard sidewalks, standard exterior public lights, etc.). • Projects not associated with a development project must be comprehensive (not just a single sidewalk or street light, for example). • Strategic property acquisition. Eligibility limited to agencies preserving sites for future transit- oriented/higher density development. Ineligible Activities • Building Construction or Renovation. • Environmental Remediation (soil/groundwater). • Streetscaping/Landscaping. • Tenant relocation costs. • Tenant improvements. • Soft Costs (performance bonds, insurance, etc.) • Contingencies. • Administration. Funding Maximum anticipated award is $500,000, per project. Funds must be expended by December 31, 2024. Activities completed prior to grant award are not eligible for reimbursement. Strategic and Selection Priorities • Project feasibility and readiness. • Increase in affordable housing units. • Increase in jobs. • Increase in property taxes. • Acts as a catalyst for surrounding redevelopment without displacement of existing residents. • Intensifies land use emphasizing pedestrian environment and transit service. • Improves pedestrian safety and access. • Sustainability impacts. Critical Corridors Development & Infrastructure Grant – Guidelines 2 Application Process Applications will be accepted via ZoomGrants between August 29, 2022 and Wednesday, September 28, 2022. To access the application, visit ramseycounty.us/CriticalCorridors. Applications should include (See application for complete requirements): 1. Ramsey County Development & Infrastructure Grant application. 2. Map of proposed project area. 3. Proposed site plan layout or renderings. 4. Financial proforma. 5. Project schedule. 6. Waste management plan (if applicable) • Applicants who are requesting funds for building demolition/deconstruction must submit a detailed waste management plan. Please contact Ramsey County Environmental Health prior to application to confirm pre-demolition inspection requirements by contacting Mindy Stepnick at mindy.stepnick@ ramseycounty.us or 651-266-1186. 7. Letters indicating community support. Funding decisions are anticipated in November 2022. Potential applicants are encouraged to contact Martha Faust at martha.faust@ramseycounty.us or 651-358-4341 to discuss their project before applying. Local Government Resolution of Support A city council resolution must be adopted to receive Ramsey County Development & Infrastructure funding. This resolution must be submitted if funds are awarded (anticipated in November 2022), but if it is not possible to obtain by the application deadline, then a letter of support from city planning/economic development staff may be submitted in its place. Application Evaluation Ramsey County seeks to address racial equity and ethnic-based disparities where all residents can experience fair outcomes including the highest level of health, wellbeing, and opportunities for advancement and growth. Please review the Ramsey County Economic Competitiveness and Inclusion Plan, the Equitable Development Framework and the Ramsey County Strategic Plan for the County’s goals and priorities. When determining funding awards, the County will prioritize proposals that best meet the County’s planning goals and priorities while aligning with local community priorities. Applications will be reviewed by a committee consisting of Ramsey County Community & Economic Development staff and other reviewers as deemed necessary. Contracting and Reporting Ramsey County will contract directly with grantees for the portion of the proposed work covered by the grant award. All grantees are required to submit a final report summarizing the project process, outcomes and impacts of completed work. Receiving funds through this program does not guarantee that future capital funding will be made available. 1Critical Corridors Commercial Corridor Initiative Grant Guidelines Purpose The Commercial Corridor Initiative Grant supports Ramsey County’s suburban small business economy by investing in pathways to BIPOC entrepreneurship and in thriving main streets and business districts. Eligible Applicants Suburban cities and associated development authorities. Eligible Activities • Business recruitment activities. • Establishment of small-business incubators. • District-wide marketing, branding, and/or promotion initiatives, including initiatives that are in response to impacts from large-scale public infrastructure projects. • District-wide planning and design. • Design and/or implementation of wayfinding, street furniture or other public realm enhancements • Building facade improvements. • Technical assistance for commercial corridor initiatives or individual businesses. Includes but not limited to: special service district or business- association establishment; financial, legal, or tax- related services; merchandising, marketing, and social media assistance. Ineligible Activities • Redevelopment feasibility or market analyses. • Land use plans (small area plans, corridor plans, and/or station area plans). • Land use/zoning studies. • Parking lot improvements. • Activities for sites without public frontage. • Activities that benefit a single business. Funding Maximum anticipated award is $50,000, per project. Projects must be completed by December 31, 2023. Activities completed prior to grant award are not eligible for reimbursement. Strategic and Selection Priorities • Suburban Ramsey County – priority commercial corridors as defined by cities. • Activities directed to improving conditions for job creation and BIPOC entrepreneurship. • Actions directed to improving coordination among businesses. • Actions that improve sense of place and/or pedestrian access within important commercial corridors. • Actions that show a strong connection to the Ramsey County Economic Competitiveness & Inclusion Plan (I.e., creation of small business incubators). • Demonstrated need for financial assistance. • Organizational capacity and plan to accomplish project objectives. • Support from businesses and property owners • For façade improvement projects: o How the initiative would be administered, including a description of the process and criteria for sub-awarding funds. o Timing of grant disbursement to complete façade improvements. o Leverage requirements, and o Proof of landlord approval and that business is current on property taxes. Critical Corridors Commercial Corridor Initiative Grant Guidelines 2Critical Corridors Commercial Corridor Initiative Grant Guidelines Application Process Applications will be accepted via ZoomGrants between Monday, August 29, 2022 and Wednesday, September 28, 2022. To access the application, visit ramseycounty.us/CriticalCorridors. Applications should include: 1. Ramsey County Commercial Corridors Initiative grant application. 2. Map of proposed project area. 3. Letters of support from city and affected business owners. Funding decisions are anticipated in November 2022. Potential applicants are encouraged to contact Martha Faust at martha.faust@ramseycounty.us or 651-358-4341 to discuss their project before applying. Application Evaluation Ramsey County seeks to address racial equity and ethnic-based disparities where all residents can experience fair outcomes including the highest level of health, wellbeing, and opportunities for advancement and growth. Please review the Ramsey County Economic Competitiveness and Inclusion Plan, Equitable Development Framework and Strategic Plan for the County’s goals and priorities. When determining funding awards, the County will prioritize proposals that best meet the County’s goals and priorities while aligning with local community priorities. Applications will be reviewed by a committee consisting of Ramsey County Community & Economic Development staff and other reviewers as deemed necessary. Contracting and Reporting Ramsey County will contract directly with grantees for the portion of the proposed work covered by the grant award. All grantees are required to submit a final report summarizing the project process, outcomes and impacts of completed work. Receiving funds through this program does not guarantee that future capital funding will be made available. THIS PAGE LEFT BLANK INTENTIONALLY The Mounds View Vision A Thriving Desirable Community Item No: 04 Meeting Date: Sep 06, 2022 Type of Business Council Worksession City Administrator Review City of Mounds View Staff Report To: Honorable Mayor and City Council From: Brian Beeman, Assistant City Administrator & Mark Beer, Finance Director Item Title/Subject: Forgivable Loan Origination Fee Introduction: Last year, the City implemented a Forgivable Loan program for start-up businesses in Mounds View as a result of one of the Strategic Plan goals. Finance Director, Mark Beer mentioned that we are being charged $1050 for the origination fee on each Forgivable Loan that is processed by the Center for Energy and Environment (CEE). The current program allows for a business to apply up to $5000 each year for three years for a total of $15,000. However, the City could potentially pay $3150 over three years for that same business in loan origination fees. If staff were to administer the Forgivable Loan program, that $3150 could be redirected back into the Forgivable Loan program. For example, if a business applies for $5000 through the Forgivable Loan program then the City is paying $1050 so that it can give away $5000. The question is, should the City recapture the loan origination fee and redirect it back into the Forgivable Loan program? Since part of Mark Beer’s job is to look out for the City’s finances, he has brought this issue to the attention of staff and staff would like the City Council to review the current situation and consider potentially amending the current contract with CEE to eliminate the Forgivable Loan program from the list of the many loan programs that they administer for the City. In addition, the contract between the City and CEE is up for renewal and expires December 31, 2022. CEE has indicated that with the high increase in their labor and overhead costs, they need to make some adjustments to some of the Administrative costs in the upcoming Amendment. The origination fees will remain the same, however the annual Administration fee will be $5000, up from $2500 and the post inspection fee will be $125, up from $100. Everything else will remain the same. Discussion: Staff is currently reviewing the contract to consider any amendments. The current Forgivable Loan program is categorized under commercial loans. All commercial loans have a standard loan origination fee of $1050. CEE has offered to move the Forgivable Loan program from the commercial loan category to the residential loan category. This would change the loan origination fee for the Forgivable Loan program from $1050 to $750. As, all of the commercial origination fees were lumped into one category in the last Amendment. CEE has updated and moved the New Business Forgivable Loans in with the Residential to be $750 instead of $1,050 for the next update. The updated Exhibit B4, is attached. An EDA resolution will be prepared and presented for EDA consideration in the near future. Staff understands the minor adjustments to the Administrative fees due to inflation and increased overhead costs. However, staff is asking for direction specifically on the Forgivable Loan program. Strategic Plan Strategy/Goal: Create and maintain a positive business climate where businesses want to locate and remain in Mounds View. Financial Impact: Potential costs savings of $1050 per Forgivable Loan. The Mounds View Vision A Thriving Desirable Community Recommendation: Provide staff direction on upcoming CEE contract extension amendment. Specifically the Forgivable Loan origination fees. Respectfully, Brian Beeman, MPA, CMC Assistant City Administrator ATTACHMENT(S): 1)DRAFT Amendment 4 2)DRAFT Updated Exhibit B4 \\metro-inet\MoundsView\MasterFiles\2022\City Council\City Council Packets\Work Sessions\09-06-2022\04, att.1 Amendment 4 (DRAFT) CEE.doc 9/1/2022 DOCSOPEN\MU205\13\748238.v2-9/20/21 AMENDMENT 4 to the LOAN ORIGINATION AGREEMENT Between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF MOUNDS VIEW And CENTER FOR ENERGY AND ENVIRONMENT City of Mounds View Home Improvement Loan Program The Agreement made the 1st day of January, 2018 by and between the Economic Development Authority in and for the CITY OF MOUNDS VIEW, with offices at 2401 Mounds View Blvd, Mounds View, MN 55112, (the “Authority”), and CENTER FOR ENERGY AND ENVIRONMENT, with its offices at 212 3rd Avenue North, Suite 560, Minneapolis, Minnesota 55401 (“CEE”) is hereby amended. 1. Services/Scope of Work of the agreement shall read: 1.1 CEE shall, as directed by the Authority, develop and deliver the City of Mounds View Loan Programs (hereinafter the “Program”) which are more fully described in Exhibit A3, attached hereto. All activities delivered under the Program shall be coordinated with the Authority’s designated representative, who shall be the Finance Director or the Assistant City Administrator. 2. Compensation of the agreement shall read: 2.1 The Authority shall compensate CEE for services provided under this Agreement according to the following schedule and more fully described in Exhibit B3 attached hereto: Loan Origination Fee for all Residential Loans $750 Loan Origination Fee for all Commercial Loans $1050 Annual Administration Fee $2,5005,000 Post Installation Inspection Fee $100150 Amendment 2 One Time Set-Up Fee $1,500 Amendment 3 One Time Set Up Fee $500 The Annual Administration Fee shall be payable on January 1st of each year the contract is active. 5. Term and Termination of the agreement shall read: 5.1 Unless earlier terminated as provided in the following paragraphs, this Agreement shall become effective on October 1, 2021January 1, 2023 and continue through December 31, 2022.TBD. All other sections of the contract shall remain as written in the original and amended agreements. \\metro-inet\MoundsView\MasterFiles\2022\City Council\City Council Packets\Work Sessions\09-06-2022\04, att.1 Amendment 4 (DRAFT) CEE.doc 9/1/2022 DOCSOPEN\MU205\13\748238.v2-9/20/21 IN WITNESS WHEREOF, the parties hereunder set their hands as of the date written below: ECONOMIC DEVELOPMENT AUTHORITY of MOUNDS VIEW CENTER FOR ENERGY AND ENVIRONMENT By ___________________________ By __________________________ Mayor/EDA President Date __________________________ Date _________________________ #3701 By ___________________________ TAX ID 41-1647799 City Administrator Exhibit B3 #3701 Page 1 Agreement between the City of Mounds View EDA and Center for Energy and Environment DOCSOPEN\MU205\13\748237.v3-9/22/21 EXHIBIT B4 TOTAL PROGRAM BUDGET $TBD MOUNDS VIEW LOAN PROGRAM BUDGET A. i. Loan Program Budget Allocation for the Residential Closed End, Mobile Home and Emergency Repair Deferred Loan Programs: $TBD ii. New Business Forgivable Loan Program: $TBD per calendar year (TBD) • Program Funds (includes Origination, Post Installation and Emergency Deferred Inspection Fees: $70,500 + $25,000 per calendar for the New Business Forgivable Loan Program • Annual Administration Fee: $5,000 • Amendment 2 One Time Set-Up Fee: $1,500 • Amendment 3 One Time Set-Up Fee: $500 B. Loan Program Budget Allocation for the Residential and Commercial 0% Clean Water Partnership (CWP) Loan Programs: $2,000,000 • Origination Fees and Post Installation Inspection Fees are not included in the Program Budget. These fees shall be paid by the City of Mounds View EDA. Budget Notes: 1. Funds to be transferred between Budget Categories in this Exhibit that do not change the Total Contract Amount must be approved in writing by the City of Mounds View EDA. 2. CEE shall submit monthly invoices to the City of Mounds View EDA for the loan principal and administrative fees and quarterly invoices for the aged delinquency reporting services. 3. Services performed by CEE will initially be funded from the Total Program Budget as stated above and paid in accordance with the following schedule. (a) Loan Origination Fee for all Residential Loans and the New Business Forgiveable Loan Program $750 per loan closed (b) Loan Origination Fee for all Commercial CWP Loans $1,050 per loan closed (c) Post Installation & Emergency Inspection $150.00 per inspection (d) Annual Administration Fee $2,500 (e) Amendment 2 One Time Set-Up Fee $1,500 (f) Amendment 3 One Time Set Up Fee $500 Exhibit B3 #3701 Page 2 Agreement between the City of Mounds View EDA and Center for Energy and Environment DOCSOPEN\MU205\13\748237.v3-9/22/21 The Annual Administration Fee shall be payable on January 1st of each year the contract is active. 4.Marketing Marketing efforts will be supported by CEE and marketing costs are not included in the administrative budget. Hourly rates are inclusive of all overhead expenses and will be charged only for hours directly related to the labor of all program marketing. CEE will also be reimbursed by the City of Mounds View EDA for any non-labor, out-of-pocket expenses relating to these services on a dollar-for-dollar basis. THIS PAGE LEFT BLANK INTENTIONALLY FEASIBILITY STUDY OF A POTENTIAL NEW YOUTH AND AMATEUR SPORTS COMPLEX in Mounds View, Minnesota July 13, 2022 July 13,2022 Mr.Nyle Zikmund City Administrator City of Mounds View 2401 Mounds View Boulevard Mounds View,Minnesota 55112 Dear Mr.Zikmund: Conventions,Sports &Leisure International (CSL)has completed a report summarizing the results of a feasibility study of a potential new Youth and Amateur Sports Complex in Mounds View,Minnesota.The purpose of the analysis is to assist the City of Mounds View (City)and other stakeholders in evaluating key market,program,financial and economic aspects of a potential new Youth and Amateur Sports Complex in Mounds View.The City is considering development of three additional courts adjacent to the Mounds View Community Center’s existing two-court complex to create a total of five full-sized basketball courts within a single complex. The analysis presented in this report is based on estimates,assumptions and other information developed from industry research,data and certain assumptions provided by stakeholders,discussions with industry participants,and analysis of competitive/comparable facilities and communities.The sources of information,the methods employed,and the basis of significant estimates and assumptions are stated in this report.Some assumptions inevitably will not materialize,and unanticipated events and circumstances may occur.Therefore,actual results achieved will vary from those described and the variations may be material. The analysis and findings considered the initial years of facility operation,including an anticipated COVID-19 post-pandemic recovery period.All information provided to us by the stakeholders was not audited or verified and was assumed to be correct. As in all studies of this type,the recommendations and estimated results are based on competent and efficient management of the subject facilities and assume that no significant changes in the event/utilization markets or assumed immediate and local area market conditions will occur beyond those set forth in this report. We express no opinion or assurances of any kind on the achievability of any projected information contained herein and this report should not be relied upon for that purpose.Furthermore,there will be differences between projected and actual results. This is because events and circumstances frequently do not occur as expected,and those differences may be material. We sincerely appreciate the opportunity to assist you with this project and would be pleased to be of further assistance in the interpretation and application of the study’s findings. Very truly yours, CSL International Conventions, Sports & Leisure International, LLC 520 Nicollet Mall, Suite 520, Minneapolis, Minnesota 55402 ●612.294.2000 ●www.cslintl.com Executive Summary 4 1.Introduction 11 2.Local &Regional Conditions 13 3.Comparable Facilities 25 4.Industry Trends 40 5.Market Demand &Program 46 6.Cost/Benefit Analysis 53 TABLE OF CONTENTS ES EXECUTIVE SUMMARY Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 5 EXECUTIVE SUMMARYES Background &Methods Conventions,Sports &Leisure International (CSL)was retained by the City of Mounds View to conduct a feasibility study of a potential new Youth and Amateur Sports Complex in Mounds View,Minnesota.The purpose of the analysis is to assist the City of Mounds View and other stakeholders in evaluating key market,program,financial and economic aspects of a potential new Youth and Amateur Sports Complex in Mounds View.The City is considering development of three additional courts adjacent to the Mounds View Community Center’s existing two-court complex to create a total of five full-sized basketball courts within a single complex. The attached report outlines the findings associated with the analysis.The full report should be reviewed in its entirety to gain an understanding of analysis methods,limitations and implications. The envisioned Youth and Amateur Sports Complex would address opportunities and needs related to local youth and amateur sports and recreation users,while also enhancing opportunities for sports tourism (i.e.,tournaments)activity in Mounds View.The information developed as part of the study outlined herein is intended to assist City of Mounds View and other community stakeholders with the information necessary to make informed decisions regarding the potential development and operation of a potential new Youth and Amateur Sports Complex in Mounds View. The study process consisted of detailed research and analysis,including a comprehensive set of market-specific information derived from the following: •PROJECT EXPERIENCE:Experience garnered through more than 1,000 planning and benchmarking projects involving sports, recreation and event facilities throughout the country. •LOCAL VISIT:Local market visit at the outset of the project,including community and facility tours,and discussions with study stakeholders and community leaders •BENCHMARKING:Research and analysis of facility data and interviews conducted with nearly 40 competitive/regional and/or comparable indoor amateur sports facilities. •INTERVIEWS &OUTREACH:Telephone interviews and virtual meetings with stakeholders and representatives of potential user groups,including key local,state,regional and national athletic associations,organizations,clubs and leagues that run sports programs,leagues,tournaments,competitions and meets that could have an interest in a potential new Youth and Amateur Sports Complex in Mounds View.More than 80 organizations were targeted and 30 telephone interviews were completed with organizations representing in excess of 100 annual activities. An outline of the study’s contracted scope of work is provided below: 1.Kickoff,Project Orientation,and Interviews 2.Local Market Conditions Analysis 3.Industry Trends Review 4.Competitive/Comparable Facility Analysis 5.Market Outreach,Interviews and Surveys 6.Program,Site and Capital Cost Analysis 7.Financial Operations Analysis 8.Economic Impact Analysis 9.Preparation and Presentation of Final Report Market Demand The potential development of a new Youth and Amateur Sports Complex in Mounds View has the opportunity to better accommodate demand among Mounds View area residents and provide a venue capable of attracting sports tourism activity to the destination. Currently,Mounds View and the Mounds View Independent School District offer a variety of indoor amateur sports and recreation facilities;however,there are very few existing facilities that can offer a critical mass of indoor court or activity space capable of accommodating the growing local demand or hosting tournaments,meets or other large competitions. Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 6 1.OVERALL DEMAND &FACILITY FOCUS:In general,interest in a potential new Youth and Amateur Sports Complex in Mounds View,measured through interviews with stakeholders and potential user groups,is considered moderately-strong to strong. Market research and analysis suggest that a state-of-the-industry Youth and Amateur Sports Complex,suitable to accommodate basketball,volleyball,pickleball,martial arts,indoor soccer,and off-season/supplemental training for various field sports and their related practices and training activities,could address certain local and non-local market demand that is not currently being met by existing facilities in the local and regional marketplace.In particular,volleyball and basketball appear to be some of the most prominent sports that would represent core uses of a new Youth and Amateur Sports Complex in Mounds View.Activities such as pickleball,training for baseball,softball and soccer,and community space for before and after school care would be expected to supplement utilization. 2.DEMOGRAPHICS:The goal of any new investment in a new Youth and Amateur Sports Complex in Mounds View would be envisioned to not only meet the needs of Mounds View residents,but also the needs of tournaments,meets and competitions that draw out-of-town visitors to the area and generate economic and fiscal impacts to Mounds View.As a result,the viability of any potential investment in a new Youth and Amateur Sports Complex is dependent,in large part,on local market demographic and socioeconomic characteristics of both the local and regional area,and the marketability of the community to potential visiting participants and spectators.A substantial population base exists within both the primary and secondary markets serving Mounds View (nearly 600,000 within 15 minutes and 2.4 million within 30 minutes’drive). 3.LACK OF DEDICATED INDOOR COURT TOURNAMENT AND TRAINING FACILITIES:Research suggests that unmet demand exists in Mounds View for a quality indoor sports facility that is optimized for youth and amateur sports activity.Outreach and interviews have indicated the lack of facilities in Mounds View and the greater Minneapolis/St.Paul metropolitan area offering a critical mass of indoor courts in one location.Importantly,a new Youth and Amateur Sports Complex in Mounds View would serve residents of other communities surrounding Mounds View that are similarly experiencing challenges with accessing quality indoor training,game and tournament court space. 4.IMPROVED COMMUNITY ACTIVITY SPACE:While optimized to attract youth and amateur sports activities (i.e.,practices, games,tournaments,meets and competitions),state-of-the-industry amateur sports facilities,such as the proposed subject Youth and Amateur Sports Complex,often deliver substantial benefits to local community members through enhancing the rental,practice,programming and alternatives available for sports,recreation,leisure and wellness activities.Local usage and attendance (as opposed to non-local usage and attendance)normally contribute the majority of utilization at comparable indoor sports facilities—positively contributing to the quality of life for local citizens. 5.OPTIMIZED OPERATIONS IN CONJUCTION WITH EXISTING MVCC:Mounds View currently has much of the operational staff and management infrastructure in place to manage additional indoor court space at the MVCC.While there will be additional staffing requirements to manage incremental event activity (e.g.,event sales/service,custodial,operations,etc.),the MVCC can expect to realize some economies of scale with existing staffing levels. 6.HIGH-IMPACT,YEAR-ROUND PRODUCT:Unlike outdoor sports facilities (such as baseball,softball or soccer complexes), hardcourt indoor sports facilities typically have broad-based usage and tend to be highly-utilized year-round,delivering some of the highest returns-on-investment in terms of utilization,revenue and economic impact per square foot.Typical use types for indoor sports facilities offering hardcourt activity space include,but are not limited to: •Basketball •Volleyball •Wrestling •Cheerleading •Dance •Gymnastics•Futsal •Table Tennis•Running / Walking•Fitness / Aerobics•Martial Arts•Pickleball•Weightlifting / Strength Training •Baseball•Softball•Soccer•Lacrosse•Rugby•Field Hockey•Badminton •Open Leisure / Recreation•Public / Consumer Shows•Tradeshows•Special Events•Graduations•Civic events / Festivals•Before / After School Care EXECUTIVE SUMMARYES In order to provide guidance to the City and other community stakeholders,CSL’s project leader initially participated in a kick-off visit to Mounds View,which included tours and meetings with key client representatives,stakeholders and business leaders. Subsequently,CSL conducted direct outreach to local area user group candidates and national/regional sports team,club, association and tournament organizers that could represent candidates for use of a new Youth and Amateur Sports Complex in Mounds View.Overall,more than 80 organizations were targeted and 30 telephone interviews were completed with organizations representing in excess of 100 annual activities.These groups were contacted in order to determine their interest in a new facility and the amenities and elements that would be necessary to host a variety of programming essential to the successful operations of the facility,including practices,camps,clinics,training,recreational programs,and other such uses. Based on the results of the research and analyses conducted under this feasibility study,overall findings suggest that a distinct market opportunity exists for a new Youth and Amateur Sports Complex in Mounds View inclusive of three additional full-size basketball courts adjacent to the Mounds View Community Center.Key findings and conclusions related to market demand include the following: Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 7 EXECUTIVE SUMMARYES Facility Concept &Program The purpose of this section is to build off the market demand research,analysis and conclusions related to a potential new Youth and Amateur Sports Complex in Mounds View to evaluate market-indicated facility development options.Recommendations regarding potential facility components and other aspects evaluated in this section are based on the results of the market analysis,including the historical,current and projected demographic and socioeconomic characteristics of the market area,an assessment of existing sports and recreation facilities in the marketplace,characteristics of comparable sports facility developments throughout the country and discussions with potential users of a new Youth and Amateur Sports Complex in Mounds View. Specifically,the following elements represent a target market supportable program and key attributes for a potential new Youth and Amateur Sports Complex in Mounds View inclusive of three additional full-size basketball courts adjacent to the Mounds View Community Center : •CONCEPT:Three additional full-sized (95’x 50’alleys)hardwood basketball courts (total of 5 basketball courts,convertible to 10 volleyball courts)extending from the two existing hardwood courts at the Mounds View Community Center. •INCREMENTAL FACILITY SIZE:Approximately 30,000 gross square feet. •PARKING:Approximately 400 total spaces. Description Quantity Unit Cost Total Hard Cost Detail: Hardwood courts 24,000 GSF $250.00 $6,000,000 Support space 6,000 GSF $275.00 $1,650,000 HARD CONSTRUCTION COST SUBTOTAL $7,650,000 Soft Cost Detail: General Requirements 10%$765,000 Design Contingency 15%$1,147,500 FF&E 5%$382,500 ESTIMATED SOFT COSTS $2,295,000 ESTIMATED TOTAL CONSTRUCTION COSTS $9,945,000 Order-of-Magnitude Project Costs The table below summarizes the order-of-magnitude program cost summary for a new Youth and Amateur Sports Complex in Mounds View.As shown,it is estimated that the total cost (hard and soft costs)to develop the site and construct the Complex is estimated at approximately $9.9 million (in 2022 dollars). While the final project costs could vary based on changes to the building program,timing of the project,recent economic conditions (e.g.,inflation)and other such factors,this cost estimate is useful in determining the appropriate amount of project funding that may be required.Further discussions between stakeholder,local community leaders,project architects and other such individuals will be necessary in order to finalize the building program.This figure does not include any costs related to site acquisition,nor does it consider the highly-volatile steel,lumber and materials costs presently impacting the construction industry nationwide.It is assumed that current construction cost volatility will largely be normalized to pre-pandemic levels by the time that construction services would be contracted/purchased for any new Youth and Amateur Sports Complex in Mounds View. Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 8 EXECUTIVE SUMMARYES Cost /Benefit Analysis An analysis was completed to produce key cost/benefit estimates associated with a potential new Youth and Amateur Sports Complex in Mounds View,Minnesota inclusive of three additional full-size basketball courts adjacent to the Mounds View Community Center.Performance estimates for the Youth and Amateur Sports Complex have been presented over a 20-year projection period. For purposes of this analysis,construction is assumed to commence during 2023 and be completed in 2024,while the first full year of operations is assumed to be 2025.A stabilized year of operation is assumed to occur by the fourth full year of operation (assumed 2028).The assumptions used in this analysis are based on the market research and analysis,past experience with hundreds of similar sports facility projects,local market visits and City and stakeholder-provided data,industry trends,knowledge of the marketplace,and use/financial results from comparable facilities.These estimates are designed to assist project representatives in assessing the financial and economic effects of a new Youth and Amateur Sports Complex and cannot be considered a presentation of expected future results.Accordingly,the analysis of potential financial operating results and economic impacts may not be useful for other purposes.The assumptions disclosed herein are not all inclusive but are those deemed to be significant.Because events and circumstances frequently do not occur as expected,there usually will be differences between estimated and actual results and these differences may be material. A detailed utilization model was developed to consider a large number of variables and inputs to analyze each sport/use for a potential Youth and Amateur Sports Complex in Mounds View.For instance,when considering different types of usage (i.e.,use from local leagues/clubs versus non-local tournaments/meets versus clinics/camps/lessons versus open recreation,etc.),separate assumptions were used to generate usage and attendance (participants and spectators)estimates.The exhibit below presents a summary of key utilization levels associated with a Youth and Amateur Sports Complex in Mounds View,pursuant to the previously outlined facility program and assumptions. Opening Stabilized 20-Year UTILIZATION Year 1 Year 2 Year 3 Year 4 Cumulative LEAGUE TEAMS Basketball 10 12 14 18 342 Volleyball 24 30 36 40 770 Indoor Spring Sports 0 0 0 0 0 Total 34 42 50 58 1,112 LEAGUE GAMES Basketball 80 96 112 144 2,736 Volleyball 240 300 360 400 7,700 Indoor Spring Sports 0 0 0 0 0 Total 320 396 472 544 10,436 TOURNAMENTS Basketball 15 17 19 20 391 Volleyball 9 11 13 16 305 Indoor Spring Sports 0 0 0 0 0 Total 24 28 32 36 696 TOURNAMENT GAMES Basketball 1,000 1,160 1,320 1,360 26,600 Volleyball 360 504 576 672 12,864 Indoor Spring Sports 0 0 0 0 0 Total 1,360 1,664 1,896 2,032 39,464 CAMPS & OTHER RENTALS Basketball 60 72 84 84 1,644 Volleyball 20 32 40 40 772 Indoor Spring Sports 24 24 24 24 480 Private Rentals/Practices/Drop-in 1,500 1,580 1,710 1,790 35,220 Total 1,604 1,708 1,858 1,938 38,116 Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 9 EXECUTIVE SUMMARYES The exhibit below presents a summary of projected annual financial operating results associated with a potential Youth and Amateur Sports Complex in Mounds View,as previously outlined herein.Based on the preliminary analysis,upon stabilization (assumed fourth full year of operation),a Youth and Amateur Sports Complex in Mounds View is estimated to generate a net operating profit of approximately $16,500,before debt service and capital repair/replacement funding.This projected level of operating profit is consistent with other comparable indoor sports facilities throughout the country. Opening Stabilized 20-Year FINANCIAL OPERATIONS Year 1 Year 2 Year 3 Year 4 Cumulative OPERATING REVENUES Rental Income $154,400 $175,500 $208,800 $232,200 $5,609,200 Camps/Clinics $10,400 $13,200 $21,800 $22,200 $543,600 Concessions $103,700 $132,700 $157,400 $177,000 $4,246,100 Advertising/Sponsorship $6,600 $7,600 $8,700 $9,900 $237,400 Subtotal $275,100 $329,000 $396,700 $441,300 $10,636,300 OPERATING EXPENSES Salaries, Wages and Benefits $160,000 $166,900 $174,900 $184,100 $4,507,500 Utilities $65,900 $67,900 $69,900 $72,000 $1,860,500 Maintenance and Repair $27,500 $28,300 $29,100 $30,000 $775,000 Materials and Supplies $16,500 $17,000 $17,500 $18,000 $465,000 Insurance $1,600 $1,700 $1,700 $1,800 $45,500 Concessions $57,000 $73,000 $86,600 $97,400 $2,335,400 General and Administrative $15,000 $17,500 $19,000 $21,500 $519,400 Subtotal $343,500 $372,300 $398,700 $424,800 $10,508,300 NET OPERATING INCOME ($68,400) ($43,300) ($2,000) $16,500 $128,000 It is assumed that the additional courts consistent with a Youth and Amateur Sports Complex would share important operating synergies with existing Mounds View Community Center operations including shared management and staffing,supplies and equipment,support space and other such elements.Should the City of Mounds View or another entity seek to independently develop a multi-court indoor youth sports complex elsewhere in the area,that complex would be expected to operate with a significantly higher expense budget and much lower cost coverage ratio. Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 10 EXECUTIVE SUMMARYES In addition to the quantifiable projections of utilization,financial operations and economic impacts shown above,there are a number of potential benefits associated with a Youth and Amateur Sports Complex in Mounds View that cannot be quantified.In fact,these qualitative benefits tend to be a critical factor in the consideration of public and private investment in facilities of this nature.These qualitative impacts/benefits may include: •Potential transformative and iconic effects. •Enhanced quality of life for community residents. •Additional programmable space for Mounds View Community Center. •Inducement of follow-up visitation. •Spin-off development. •Anchor for revitalization of targeted areas within a community. •Various other benefits. Summary &Key Projections Based on analysis results,a summary of key cost/benefit projections for a Youth and Amateur Sports Complex in Mounds View, inclusive of three additional full-size basketball courts adjacent to the Mounds View Community Center,associated with its construction and annual operations is presented below (upon stabilization of operations,assumed to occur by the fourth full year of operations). ANNUAL PERSONAL INCOME $2.1M ANNUAL EMPLOYMENT (FULL & PART-TIME JOBS) 69 ANNUAL TOURNAMENT & PRACTICE HOURS 3,970 ANNUAL DIRECT SPENDING $3.1M ANNUAL INDIRECT/INDUCED SPENDING $2.1M ANNUAL ECONOMIC OUTPUT $5.2M+= SUMMARY OF ESTIMATED KEY PROJECTIONS ASSOCIATED WITH A NEW YOUTH AND AMATEUR SPORTS COMPLEX IN MOUNDS VIEW, MINNESOTA (Operating Impacts Reflect Annual Impacts Upon Stabilization, Assumed Fourth Full Year of Operations) ANNUAL NON-LOCAL ATTENDEE DAYS 38,800 ANNUAL ATTENDEE DAYS 90,300 ANNUAL FINANCIAL OPERATING RESULTS $16,500 ANNUAL HOTEL RM NIGHTS 1,600 CONSTRUCTION ECONOMIC IMPACT $8.4M CONSTRUCTION COSTS $9.95M 1 INTRODUCTION Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 12 INTRODUCTION1 Introduction &Background Conventions,Sports &Leisure International (CSL)was retained by the City of Mounds View to conduct a feasibility study of a potential new Youth and Amateur Sports Complex in Mounds View,Minnesota.The purpose of the analysis is to assist the City of Mounds View and other stakeholders in evaluating key market,program,financial and economic aspects of a potential new Youth and Amateur Sports Complex in Mounds View.The City is considering development of three additional courts adjacent to the Mounds View Community Center’s existing two-court complex to create a total of five full-sized basketball courts within a single complex. The envisioned Youth and Amateur Sports Complex would address opportunities and needs related to local youth and amateur sports and recreation users,while also enhancing opportunities for sports tourism (i.e.,tournaments)activity in Mounds View. The information developed as part of the study outlined herein is intended to assist the City of Mounds View and other community stakeholders with the information necessary to make informed decisions regarding the potential development and operation of a potential new Youth and Amateur Sports Complex in Mounds View. The study process consisted of detailed research and analysis,including a comprehensive set of market-specific information derived from the following: •PROJECT EXPERIENCE:Experience garnered through more than 1,000 planning and benchmarking projects involving sports,recreation and event facilities throughout the country. •LOCAL VISIT:Local market visit at the outset of the project,including community and facility tours,and discussions with study stakeholders and community leaders •BENCHMARKING:Research and analysis of facility data and interviews conducted with nearly 40 competitive/regional and/or comparable indoor amateur sports facilities. •INTERVIEWS &OUTREACH:Telephone interviews and virtual meetings with stakeholders and representatives of potential user groups,including key local,state,regional and national athletic associations,organizations,clubs and leagues that run sports programs,leagues,tournaments,competitions and meets that could have an interest in a potential new Youth and Amateur Sports Complex in Mounds View.More than 80 organizations were targeted and 30 telephone interviews were completed with organizations representing in excess of 100 annual activities. An outline of the study’s contracted scope of work is provided below: 1.Kickoff,Project Orientation,and Interviews 2.Local Market Conditions Analysis 3.Industry Trends Review 4.Competitive/Comparable Facility Analysis 5.Market Outreach,Interviews and Surveys 6.Program,Site and Capital Cost Analysis 7.Financial Operations Analysis 8.Economic Impact Analysis 9.Preparation and Presentation of Final Report 2 LOCAL & REGIONAL CONDITIONS Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 14 Market &Destination Attributes Located in Ramsey County,Mounds View is a small suburb of the Twin Cities located immediately off 35-W.Mounds View is located in close proximity to Blaine Sports Center,downtown Minneapolis and the Mississippi River. With a total area of 4.12 square miles,the 2020 census estimated population of the city of Mounds View is approximately 13,250, while the population of Ramsey County is estimated at 550,200. City government is comprised of a Mayor and four Council Members.The Anoka County-Blaine Airport (Janes Field)serves the area and sits within a ten minutes drive of Mounds View. Mounds View is in close proximity to the National Sports Center in Blaine,which hosts a calendar of amateur sporting events and tournaments with participants from all over the country. Medtronic,the worldwide medical device company,has its Cardiac Rhythm Management campus,with approximately 3,000 employees,in Mounds View. Mounds View features the Mermaid Entertainment and Event Center and Mounds View AmericInn Hotel and Suite.Offered are two event spaces that include the Coral Bay Ballroom and the Atlantis Ballroom. Mounds View Public Schools includes two high schools,three middle schools and six elementary schools.They include Irondale High School,Mounds View High School,Chippewa Middle School, Edgewood Middle School,Highview Middle,and Bel Air,Island Lake, Pinewood,Sunnyside,Turtle Lake and Valentine Hills Elementary Schools. LOCAL &REGIONAL CONDITIONS2 Introduction An important component in assessing the potential success of a new Youth and Amateur Sports Complex in Mounds View is the demographic and socioeconomic profile of the local and regional market.The strength of a market in terms of its ability to support and utilize sports and recreation facilities is measured,to some extent,by the size of the regional market area population, its age,income,and other characteristics.In addition to the demographic profile of the local and regional market area,other local market characteristics have relevance when considering the attractiveness of a particular community as a host for high-quality sports and recreation facilities.These include items such as transportation accessibility,existing inventory of athletic facilities, and visitor amenities (such as hotels,attractions and other such items). Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 15 LOCAL &REGIONAL CONDITIONS2 Location &Accessibility Transportation access is vital to the success of any sports or event facility.Ease of access is not only important from the perspective of attracting participants and spectators,but also factors into the site selection process of tournament producers and other sponsoring organizations.The exhibit and map below illustrates the proximity of Mounds View with other nearby markets and the markets/land area captured within 15,30,90,and 180 minutes of drive-time of the Mounds View Community Center.These distances will be utilized on the subsequent page and later in the report for purposes of comparing demographic and socioeconomic variables. Proximity and Drive Times of Key Regional Markets to Mounds View Demographic &Socioeconomic Characteristics The exhibit on the following page presents a summary of key demographic metrics associated within the aforementioned driving distances surrounding the Mounds View Community Center,along with city of Mounds View,Ramsey County,state of Minnesota and United States benchmarking data. As shown in the exhibit,the estimated population within a 30-minute drive of the Mounds View Community Center is approximately 2.3 million and is expected to grow slightly over the next five years.The population within 90 minutes of Mounds View increases significantly to more than 4.4 million,while an estimated 6.5 million people reside within a three-hour’s drive of Mounds View. Additionally,household income is another important socioeconomic characteristic of host markets that typically impacts facility performance.Median household income within 30 minutes of Mounds View is lower than that of the Minnesota and US benchmarks. Distance to Distance to Mounds View Mounds View Market City, State (miles) (hrs:min) Population Minneapolis, MN 13 0:18 430,000 Saint Paul, MN 14 0:15 312,000 Eden Prairie, MN 30 0:33 64,000 Lakeville, MN 37 0:41 69,000 Rochester, MN 91 1:28 121,000 Mankato, MN 93 1:33 44,000 Eau Claire, WI 97 1:31 69,000 Brainerd, MN 118 1:59 14,000 Duluth, MN 145 2:08 87,000 Waterloo, IA 203 3:27 67,000 Fargo, ND 232 3:30 126,000 Madison, WI 273 4:10 270,000 Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 16 LOCAL &REGIONAL CONDITIONS2 Source: Esri, 2022. Summary of Key Demographics Associated with Mounds View, Minnesota The level of population from which sports and recreation facilities will draw participants,both short-term and long-term,impacts the utilization of the facilities.Additionally,household income is another important socioeconomic characteristic of host markets that typically impacts facility performance.Income levels can serve as an indication of area households’ability to support sports and recreation in the region by paying league and registration fees and other costs associated with participation.The affluence of area households can also impact the types of programming that will be most successful at a sports and recreation facility. As is typical in most communities housing a sports and recreation facility of the nature being considered,the marketplace will likely be sensitive to material increases in sports registration fees that may become necessary to support the operations of a potential new Youth and Amateur Sports Complex.In developing fee structures for a potential new Youth and Amateur Sports Complex in Mounds View,it will be important to identify price points that allow local swim/sports/recreational organizations to afford to use the facility without pricing-out the participant base through increased participation/registration fees.To potentially mitigate the impact of lower household incomes,it may become important to emphasize the opportunities provided by a sports facility to youths from underprivileged families.Further,it may be beneficial to consider scholarship and other financial assistance programs to maximize utilization of the facility. DEMOGRAPHIC VARIABLE 15-Minutes 30-Minutes 90-Minutes 180-Minutes City of Mounds View Ramsey County State of Minnesota United States POPULATION: 2010 Total Population 500,030 2,086,748 3,998,881 5,985,294 12,155 508,640 5,303,925 308,745,538 2021 Total Population 544,415 2,290,424 4,408,431 6,460,746 12,807 536,985 5,762,325 333,934,112 2026 Total Population 567,484 2,393,454 4,612,903 6,698,028 13,329 553,787 5,992,188 345,887,495 Historical Annual Growth (2010-2020)0.89% 0.98% 1.02% 0.79% 0.54% 0.56% 0.86% 0.82% Projected Annual Growth (2021-2026)0.42% 0.45% 0.46% 0.37% 0.41% 0.31% 0.40% 0.36% AGE: Median Age 37.5 37.6 38.0 39.1 39.2 36.7 39.0 38.5 Population age 25 to 44 26.49% 26.04% 26.84% 26.50% 28.10% 26.17% 26.06% 26.60% AGE DISTRIBUTION: Under 15 17.78% 18.19% 18.93% 18.36% 17.97% 18.20% 18.52% 18.40% 15 to 24 13.94% 13.05% 12.88% 12.74% 10.82% 13.86% 12.60% 13.00% 25 to 34 14.73% 14.98% 13.92% 13.36% 14.60% 15.56% 13.48% 14.00% 35 to 44 13.41% 13.76% 13.61% 12.89% 13.92% 12.96% 12.97% 12.60% 45 to 54 11.22% 11.78% 12.18% 11.92% 11.71% 10.77% 11.90% 12.50% 55 and over 28.93% 28.25% 28.48% 30.72% 31.01% 28.67% 30.53% 29.50% HOUSEHOLD INCOME: Median Household Income $76,569 $78,817 $80,782 $73,265 $72,784 $69,113 $75,244 $62,203 Per Capita Income $37,409 $41,661 $40,853 $37,841 $34,501 $36,404 $38,556 $34,136 INCOME DISTRIBUTION: $0 to $24,999 12.95% 13.72% 12.40% 14.16% 12.21% 15.75% 13.93% 19.10% $25,000 to $49,999 18.57% 17.27% 16.86% 18.80% 21.51% 19.86% 18.29% 20.90% $50,000 to $74,999 17.14% 16.21% 16.56% 17.92% 17.40% 17.49% 17.58% 17.30% $75,000 to $99,999 15.78% 14.31% 14.48% 14.58% 16.58% 14.01% 14.53% 12.84% $100,000 to $149,999 19.74% 18.89% 19.83% 18.34% 23.42% 18.74% 18.63% 15.30% $150,000 or more 15.81% 19.60% 19.88% 16.20% 8.89% 14.15% 17.03% 14.80% POPULATION BY RACE/ETHNICITY:100.00% White/Caucasian 67.70% 69.37% 78.10% 82.37% 73.49% 61.99% 80.73% 72.40% Black/African American 13.10% 13.32% 8.91% 6.65% 7.80% 13.70% 7.30% 12.60% American Indian 0.78% 0.80% 0.70% 0.85% 0.73% 0.76% 1.22% 0.99% Asian 11.60% 9.26% 6.54% 5.04% 11.11% 16.20% 5.31% 4.80% Pacific Islander 0.04% 0.06% 0.06% 0.06% 0.11% 0.06% 0.06% 0.20% Other Race 2.76% 3.32% 2.50% 2.19% 2.73% 3.07% 2.35% 6.20% Two or More Races 4.00% 3.87% 3.21% 2.84% 4.02% 4.22% 3.03% 2.90% Hispanic Origin 6.21% 7.39% 5.98% 5.46% 6.00% 7.64% 5.83% 16.30% Diversity Index 56.8 56.2 44.8 38.5 50.4 63.1 41.2 60.6 BUSINESS: Total Business 2021 17,783 81,910 146,233 233,229 219 18,141 206,473 11,994,763 Total Employees 2021 299,379 1,473,654 2,395,345 3,512,200 4,128 349,723 3,142,038 146,120,824 Employee/Residential Population Ratio 0.55:1 0.64:1 0.54:1 0.54:1 0.32:1 0.65:12 0.55:1 0.44:1 Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 17 LOCAL &REGIONAL CONDITIONS2 2022 Population 2022 Average HH Income 2022 Number of Businesses 2022 Entertainment/Recreation Spending 2022 Participant Sports Spending 2022 Retail Sales The regional corporate base (number of companies)also can play an important role in the success of sports facilities.Corporate sponsorships and donations are potential sources of capital funding and operating income for amateur sports and recreation facilities.The majority of corporate sponsorship opportunities in comparable sports facilities are often in the form of sponsorships,banners,scoreboard advertising and other such opportunities;many of which would be relatively inexpensive.As a result,a significant portion of companies within a host market have the opportunity to participate in advertising and sponsorship opportunities at local sports and recreation facilities. The maps below detail heat maps by census tract that show the Mounds View area,with the stars indicating the location of the Mounds View Community Center.The heat maps display the relative density of demographic data points as smoothly varying sets of colors ranging from cool (lighter color,indicating a low density of points)to hot (darker color,indicating a high relative density of points). Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 18 Company Name Industry Company Name Industry Ace Supply Company Service Mermaid Entertainment and Event Center Entertainment Allina Ambulance Services Health & Fitness Mermaid Restaurant & Sports Bar Restaurants Apple Tree Dental Health & Fitness MFI Metal Finishers Inc.Manufacturing Aramark Service Midway Industrial Supply Distribution Bauer Welding & Metal Fabricators Manufacturing Midwest I.V. and Homecare Health & Fitness BioLife Plasma Services Health & Fitness Midwest Medical Services Professional Office C.G. Hill Manufacturing Midwest Medical Services, Inc Health & Fitness Carley Foundry Manufacturing Midwest Motor Express Service Central Sandblasting Manufacturing Minvalco Service CoAg Medical Manufacturing Moe's Restaurant Restaurants CrossFit Southpaw Health & Fitness MultiTech Systems Manufacturing Dahle Law Professional Office Outsource Receivables, Inc.Service Dell-Comm Service Owens & Minor Distribution Development Resource Group Professional Office Pink Flower Vietnamese Restaurants Empirehouse, Inc.Manufacturing Pro Guard Sports Distribution Eurofins DQCI Service Quanex Manufacturing Excel Engineering Professional Office RJ Riches Family Resturant Restaurants FedTech Manufacturing Royal Janitorial Supplies and Equipment Distribution InnerActive Playground Entertainment Solid Design Solutions Manufacturing J&W Instruments, Inc.Distribution Terry Enterprises Distribution Jonco Die Company Manufacturing Tony's Sandwich King Restaurants Lee-Noonan/Minnkota Sales Distribution Tyson Distribution Magno International Distribution U.S. Geological Survey Professional Office Magnuson Cabinets Service Vallen Distribution Medtronic Professional Office Zero Gravity Trampoline Park Entertainment LOCAL &REGIONAL CONDITIONS2 Source: City of Mounds View, 2022. Corporate Base The breadth and characteristics of the inventory of companies within a particular market can provide an indication of the general potential for propensity to purchase sponsorship/advertising in major sports facilities.Indirectly,the size of a local corporate base tends to be correlated with the level and breadth of supporting community amenities (i.e.,hotels,restaurants,transportation infrastructure,etc.),which are relevant when considering non-local events,such as tournaments,meets and competitions. The largest 20 employers in Mounds View are listed in the exhibit below.The major employers in Mounds View fall under a variety of industries such as manufacturing,healthcare,technology,education and government. Sample of Employers in Mounds View Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 19 Hotel Guest Distance Rooms From MVCC Facility Name (number) (miles) 1 Days Inn 70 1.0 2 AmericInn 69 1.2 3 Homewood Suites 124 2.3 4 Country Inn - Shoreview 83 2.4 5 Quality Inn - Coon Rapids 56 4.0 6 Country Inn - Coon Rapids 108 4.4 7 Holiday Inn 72 4.5 8 InTown Suites 136 4.6 9 Quality Inn - Arden Hills 62 4.7 10 Baymont 59 4.7 11 SpringHill Suites 139 4.8 12 Hilton Garden Inn 99 4.9 13 Best Western Plus 115 4.9 1,192 TOTAL LOCAL &REGIONAL CONDITIONS2 Hotel Inventory A community’s hospitality infrastructure,in terms of hotels,restaurants,entertainment and other such factors,normally contributes heavily to the potential success of a sports tourism facility,such as the potential new Youth and Amateur Sports Complex in Mounds View.The marketability of sports tourism facilities typically increase when supporting amenities infrastructure exist within close driving proximity. The chart and map below summarize the key lodging facilities located in Mounds View and the surrounding communities within five miles of the Mounds View Community Center.In total,there are just under 1,200 hotel rooms provided through 13 hotels. There are two hotels in the City of Mounds View:The AmericInn provides 69 rooms;each with a microwave,small refrigerator, sitting area,and cable TV.Guests can also utilize the pool and game room in the adjacent restaurant.The Days Inn provides 70 rooms with Wi-Fi and an on-site gym.However,the upkeep of the hotel may prove unsatisfactory for those visiting the potential new facility.All 13 properties are a part of the Twin Cities Gateway –the prime destination for youth and amateur sports,as well as only a short drive from Saint Paul,Minneapolis,and all their attractions. Summary of Primary Lodging Facilities in Mounds View Source: Mounds View Convention & Visitors Bureau, Google maps, 2022. 5 7 3 1 2 4 68 9 10 11 12 13 Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 20 LOCAL &REGIONAL CONDITIONS2 Mounds View Attractions &Amenities Tournament and competition directors frequently consider the destination outside the host facility when selecting a site for their events.To evaluate the appeal of Mounds View,CSL has prepared the map below that displays the hotel,dining,and attractions inventory within the city.There are a total of 13 restaurants and five attractions including Zero Gravity Trampoline Park, InnerActive (indoor playground),Moe’s Restaurant,and the Mermaid Entertainment &Event Center.Access to amenities is often critical in the decision-making process of meet,tournament,camp,clinic and other event organizers and attendees. 139 13 5Hotels (number of hotel rooms) Dining Options (number of establishments) Attractions (number of establishments) Attractions and Amenities Source: Twin Cities Gateway, CSL Research, TripAdvisor, Google Maps, 2022. 1 6 1 1 2 7069 41 1 1 Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 21 Number Distance Of From MVCC Facility Name Courts (miles) 1 Edgewood Middle School 3 1 2 Irondale High School 2 1 3 Pinewood Elementary 1 1 4 Sunnyside Elementary 1 1 5 Turtle Lake Elementary 2 3 6 Pike Lake Elementary 1 3 7 Mounds View High School 5 4 8 Valentine Hills Elementary 1 4 9 Highview Middle School 4 5 10 Shoreview YMCA 2 5 11 Shoreview Community Center 2 5 12 Bel Air Elementary 1 5 13 Snail Lake Elementary 1 5 14 Chippewa Middle School 4 6 15 Island Lake Elementary 2 6 32 TOTAL 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 2 Local Amateur Sports &Recreation Facilities The number of potentially competitive sports and recreation facilities in the local market is also an important consideration with respect to the overall viability of any new sports facility project.There are currently 15 facilities within the local area that offer sports surfaces in a single facility,but most facilities listed below would not represent significant competitors for a new Youth and Amateur Sports Complex in Mounds View.Within the area,13 of the 15 facilities are in the Mounds View Public School District, and school court and gym space are becoming increasingly difficult to access,as school teams and members of the school district receive priority over sports teams and tournaments outside the district.The two facilities not within the school district,the Shoreview YMCA and the Shoreview Community Center,are not set up to host large sports events.A new facility would allow for growth in programming,better accommodation of local sports groups,and has the potential to attract new and larger tournaments to the Mounds View area. Summary of Local Amateur Sports & Recreation Facilities in Mounds View LOCAL &REGIONAL CONDITIONS Source: Mounds View ISD, Google Maps, 2022. Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 22 1 2 3 4 5 6 7 8 9 10 11 12 2 Regional Amateur Sports &Recreation Facilities There are presently 12 facilities within the larger Twin Cities region offering high quality facilities and multiple sports surfaces that could potentially compete for sports tourism business (i.e.,tournaments,meets,and competitions).However,two of the three largest facilities,Bloomington Kennedy and Bloomington Jefferson High Schools,are within the Bloomington Public School District and are programmed for school sports events.The other ten facilities have limited opportunity and difficulty in getting enough court space to host a large tournament or event. Summary of Regional Amateur Sports & Recreation Facilities in Mounds View LOCAL &REGIONAL CONDITIONS Source: Facility management, 2022. Facility Name Basketball CourtsVolleyball Courts1 Bloomington Kennedy High School 8 16 2 Anoka Ramsey Athletic Association Complex 8 8 3 Bloomington Jefferson High School 7 7 4 Forest Lake Fieldhouse 6 6 5 Rochester Regional Sports Center 6 6 6 National Volleyball Center 0 11 7 Lindbergh Center 5 7 8 Andover Community Center 4 8 9 Hope Fieldhouse 4 4 10 Prior Lake Fieldhouse 4 6 11 Apple Valley Community Center 4 6 12 Minnesota Select Volleyball Center 0 8 TOTALS 56 93 Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 23 LOCAL &REGIONAL CONDITIONS2 Of the facilities listed on the previous page,the five presented below represent key indoor facilities that accommodate a significant share of local and non-local indoor sports facility demand. Bloomington Kennedy &Jefferson High Schools The Kennedy Activity Center and Jefferson Activity Center are nearly identical.Both feature five hardwood basketball/volleyball courts,each with their own LED electronic scoreboard and seating for approximately 60 people.They each have a large room adjacent to the courts that can function as tournament headquarters,trainer’s room,or a referee hospitality site.Bloomington Kennedy’s main gym has seating for 1,900 people and 3 courts;for 8 courts total.Bloomington Jefferson’s main gym has seating for 1,250 people and 2 courts;for 7 courts total. Anoka Ramsey Athletic Association Complex The Anoka Ramsey Athletic Association plans to build a 180,000-square-foot domed facility in Ramsey, possibly by the end of 2022.The facility would have one and a half indoor turf fields,8 full-size basketball courts,volleyball courts,batting cages,and a weight training area.Funding would come from charitable gambling and saving the $250,000 the association pays to vendors annually to rent gym and field space.The complex would also be able to host trade shows and it is estimated to draw in as many as 500,000 visitors per year. Forest Lake Fieldhouse The Forest Lake Fieldhouse was recently built in 2017,it’s a part of the Forest Lake Area High School.It is roughly the size of a football field containing six basketball/volleyball courts.The facility hosts many sports events as well as gym classes. Andover Community Center The Andover Community Center hosts a variety of different sports programs for all ages including the ACC Open Basketball sessions,ACC Indoor Volleyball,open hockey/open skate,indoor soccer lessons, pickleball lessons,and skating lessons.The facility also has an indoor track,snack/beverage vending machines,and meeting room available for meetings,training events and private parties.In addition,the facility offers a free after school program for middle school students,and high school students are eligible to utilize the field house for open basketball. Rochester Regional Sports Center &National Volleyball Center The Rochester Regional Sports Center is a multi-purpose facility with 44,000 square feet of competition floor space,and a 1,700-seating capacity.In total,the venue can hold a maximum of six volleyball courts,six basketball courts or sixteen wrestling mats.The National Volleyball Center is a multi-use building that is highly tuned for the sport of volleyball.There are 11 courts within the center and three additional courts in the adjacent Century High School.The facility offers many programs for all ages including open volleyball,summer camps &clinics and private lessons. Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 24 Season Overview % of Total No. of Tournaments 211 First Tournament 9/18/2021 Last Tournament 7/31/2022 Boys Tournaments 136 53.8% Girls Tournaments 117 46.2% Tournament Length % of Total Average Length 1.7 1-day Tournaments 77 36.5% 2-day Tournaments 121 57.3% 3-day Tournaments 13 6.2% Age of Tournament Participants % of Total 3rd Graders 63 6.3% 4th Graders 173 17.3% 5th Graders 186 18.6% 6th Graders 186 18.6% 7th Graders 184 18.4% 8th Graders 182 18.2% 9th - 12th Graders 26 2.6% Adults 1 0.1% Registration Costs % of Total Average Cost $331 No. of Tournaments <$100 2 1.1% No. of Tournaments $100-$199 24 13.3% No. of Tournaments $200-$299 38 21.0% No. of Tournaments $300-$399 40 22.1% No. of Tournaments $400-$499 76 42.0% No. of Tournaments $500+1 0.6% Seasonality % of Total September 1 0.5% October 2 0.9% November 35 16.6% December 43 20.4% January 60 28.4% February 57 27.0% March 1 0.5% April 3 1.4% May 5 2.4% June 1 0.5% July 3 1.4% Summary of Metro-Area Basketball Tournaments LOCAL &REGIONAL CONDITIONS2 Metro-Area Tournament Activity To gain a better understanding of the market for tournament activity that currently exists,we conducted an inventory of basketball and volleyball tournaments throughout the greater Minneapolis/St.Paul metropolitan area.Leveraging a variety of tournament aggregator websites including Minnesota Youth Athletic Services and SportsEngine,we compiled data on over 900 tournaments that were held in the most recent winter sports season.As shown below,there were over 200 basketball and 700 volleyball tournaments held throughout the metro area,the vast majority of which were conducted within one or two days.The average tournament entry fee was approximately $330 for basketball and nearly $200 for volleyball tournaments.The vast majority of these tournaments were hosted by a local community sports association for competition or fundraising purposes or a facility to generate occupancy within the complex.Additional detail is presented below. Season Overview % of Total No. of Tournaments 723 First Tournament 12/5/2021 Last Tournament 6/12/2022 Tournament Length % of Total Average Length 1.0 1-day Tournaments 692 95.7% 2-day Tournaments 31 4.3% Age of Tournament Participants % of Total 11U 65 6.1% 12U 133 12.6% 13U 120 11.4% 14U 194 18.4% 15U 152 14.4% 16U 186 17.6% 17U 84 7.9% 18U 123 11.6% Registration Costs % of Total Average Cost $198 Tournaments <$100 55 7.9% Tournaments $100-$124 97 13.9% Tournaments $125-$149 231 33.2% Tournaments $150-$174 95 13.6% Tournaments $175-$199 24 3.4% Tournaments $200+194 27.9% Seasonality % of Total December 4 0.6% January 145 20.1% February 135 18.7% March 202 27.9% April 175 24.2% May 47 6.5% June 15 2.1% Number of Teams % of Total Average No. of Teams 15 7 Teams or Fewer 35 5.0% 8-11 Teams 270 38.7% 12-15 Teams 149 21.4% 16-19 Teams 132 18.9% 20-23 Teams 33 4.7% 24-27 Teams 31 4.4% 28-31 Teams 14 2.0% 32 Teams or More 33 4.7% Summary of Metro-Area Volleyball Tournaments 3 COMPARABLE FACILITIES Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 26 Basketball Volleyball Year Courts Courts Facility Name City, State Opened Owner Operator (number) (number) 1 Best Choice Fieldhouse Fishers, IN 2013 Private Private 6 6 2 Cape Girardeau Sportsplex Cape Girardeau, MO 2017 City of Cape Girardeau City of Cape Girardeau 6 12 3 Finch Creek Fieldhouse Noblesville, IN 2018 Klipsch-Card Athletic Facilities Klipsch-Card Athletic Facilities 5 5 4 Hammond Sportsplex Hammond, IN 2018 City of Hammond City of Hammond 6 10 5 Max McCook McCook, IL 2006 Village of McCook Village of McCook 6 4 6 New Century Fieldhouse New Century, KS 2011 Johnson County Johnson County Parks & Rec 4 8 7 Rocky Top Sports World Gatlinburg, TN 2014 City of Gatlinburg Sports Facilities Companies 6 12 8 Salina Fieldhouse Salina, KS 2017 City of Salina City of Salina 6 8 9 Epic Center Fort Wayne, IN 2000 Private Private 8 8 10 The Arena Sioux City, IA 2019 Private Private 5 5 11 West River Community Center Dickinson, ND 2004 City of Dickinson City of Dickinson 4 4 12 Bob Keefer Center Springfield, OR 2010 Willamalane Parks & Rec Willamalane Parks & Rec 6 11 AVERAGE 6 8 MEDIAN 6 8 COMPARABLE FACILITIES3 Overview A benchmarking analysis of selected comparable indoor amateur sports facilities located throughout the country was conducted.This section provides information on the various physical and operational characteristics of comparable facilities.The data helps place a potential new Youth and Amateur Sports Complex in Mounds View within a comparable context with respect to facility offerings,demographics and other related host market features. The comparable facilities reviewed were selected based on their characteristics,space offerings and the size and location of the markets in which they are located.The exhibit below presents a summary of the 12 selected comparable indoor sports facilities and markets analyzed. Source: CSL research, interviews with facility management, facility websites, 2022. 2 7 1, 3 11 4, 5 12 68 9 Summary of Characteristics of Selected Comparable Facilities 10 Demographic Comparison The level of population from which sports facilities will draw participants,both short-term and long-term,impacts the utilization of the facilities.As shown in the exhibits on the following page,Mounds View’s population ranks just below the midpoint of comparable facility markets for most demographic measurements. As previously mentioned,household income is another important socioeconomic characteristic of host markets that typically impacts amateur sports facility performance.Income levels can serve as an indication of area households’ability to support sports and recreation participation by paying league and registration fees and other costs associated with participation.The affluence of area households can also impact the types of programming that will be most successful at a new sports facility. Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 27 COMPARABLE FACILITIES3 The regional corporate base (number of companies)also can play an important role in the success of sports facilities.The majority of corporate sponsorship opportunities in comparable sports facilities are often in the form of sponsorships,banners, scoreboard advertising and other such opportunities;many of which would be relatively inexpensive.As a result,a significant portion of companies within a host market have the opportunity to participate in advertising and sponsorship opportunities at local sports and recreation facilities. Population Average Household Income Market 15-min 30-min 90-min 180-min Market 15-min 30-min 90-min 180-min 1 McCook, IL 418,696 2,991,218 10,133,454 18,012,509 1 New Century, KS $98,787 $111,498 $88,059 $78,799 2 Mounds View, MN 596,931 2,356,740 4,403,092 6,460,668 2 Mounds View, MN $96,535 $104,834 $105,192 $95,642 3 Hammond, IN 331,794 1,598,821 9,637,975 21,407,699 3 Dickinson, ND $98,992 $99,065 $88,190 $89,242 4 Fishers, IN 243,367 1,051,023 3,262,008 15,594,493 4 Noblesville, IN $120,287 $98,627 $81,072 $80,302 5 Noblesville, IN 144,016 783,437 3,198,753 14,906,552 5 McCook, IL $110,013 $97,803 $102,926 $92,792 6 New Century, KS 105,055 768,222 2,832,235 5,561,493 6 Fishers, IN $120,244 $94,584 $80,783 $79,635 7 Fort Wayne, IN 268,916 476,699 2,127,018 19,406,266 7 Sioux City, IA $73,994 $76,617 $76,538 $82,748 8 Springfield, OR 138,925 331,969 1,089,969 4,476,123 8 Springfield, OR $71,540 $76,473 $77,066 $91,397 9 Sioux City, IA 115,904 146,433 1,109,490 3,516,995 9 Fort Wayne, IN $76,752 $75,970 $71,744 $80,410 10 Cape Girardeau, MO 74,090 106,684 928,172 6,744,328 10 Hammond, IN $67,986 $72,836 $102,371 $90,779 11 Salina, KS 51,189 73,748 963,674 4,452,045 11 Cape Girardeau, MO $72,570 $70,586 $70,259 $76,910 12 Dickinson, ND 28,818 33,963 173,089 431,108 12 Salina, KS $68,232 $70,321 $73,438 $83,050 13 Gatlinburg, TN 6,656 28,080 1,072,877 5,675,813 13 Gatlinburg, TN $64,118 $65,684 $73,495 $70,583 AVERAGE 194,181 826,695 3,148,600 9,742,007 AVERAGE $87,696 $85,761 $83,933 $84,022 Rank (out of 13)1 2 3 7 Rank (out of 13)6 2 1 1 Number of Businesses Retail Sales Market 15-min 30-min 90-min 180-min Market 15-min 30-min 90-min 180-min 1 McCook, IL 13,643 106,955 329,545 598,931 1 McCook, IL $6,333,979 $45,072,940 $151,651,606 $266,591,784 2 Mounds View, MN 18,418 83,597 146,121 233,230 2 Mounds View, MN $10,657,347 $44,468,361 $73,494,126 $106,397,752 3 Hammond, IN 9,945 42,253 318,905 702,653 3 Hammond, IN $5,372,880 $19,666,673 $143,205,453 $312,312,599 4 Fishers, IN 9,583 37,908 103,003 496,498 4 Fishers, IN $5,182,960 $15,966,428 $44,256,603 $211,601,017 5 New Century, KS 3,609 30,306 97,395 201,828 5 New Century, KS $1,684,226 $13,270,949 $40,431,508 $83,325,481 6 Noblesville, IN 4,303 27,381 101,544 481,189 6 Noblesville, IN $2,239,189 $11,593,759 $43,691,747 $207,071,825 7 Fort Wayne, IN 9,963 15,506 68,608 608,313 7 Fort Wayne, IN $5,278,260 $7,005,154 $28,571,492 $267,073,720 8 Springfield, OR 5,977 12,323 36,882 166,854 8 Springfield, OR $2,429,304 $6,632,426 $16,871,615 $74,258,061 9 Sioux City, IA 4,586 5,599 44,295 141,829 9 Sioux City, IA $3,003,474 $3,281,367 $17,011,982 $51,122,924 10 Cape Girardeau, MO 3,315 3,960 29,995 221,570 10 Cape Girardeau, MO $1,655,855 $1,822,198 $12,520,456 $94,123,597 11 Salina, KS 2,353 3,394 39,488 168,877 11 Salina, KS $1,252,090 $1,404,391 $19,471,243 $70,257,707 12 Gatlinburg, TN 737 2,037 36,485 185,390 12 Gatlinburg, TN $137,640 $640,649 $18,055,632 $82,628,662 13 Dickinson, ND 1,525 1,807 9,379 22,337 13 Dickinson, ND $427,064 $508,823 $3,702,087 $8,172,033 AVERAGE 6,766 28,694 104,742 325,346 AVERAGE $3,511,867 $13,179,548 $47,148,888 $141,149,012 Rank (out of 13)1 2 3 6 Rank (out of 13)1 2 3 6 Entertainment/Recreation Spending Participant Sports Spending Market 15-min 30-min 90-min 180-min Market 15-min 30-min 90-min 180-min 1 McCook, IL $560,764,347 $3,617,708,487 $13,309,188,885 $22,514,539,764 1 McCook, IL $21,035,691 $131,093,891 $488,646,185 $795,814,420 2 Mounds View, MN $775,732,843 $3,396,346,211 $6,252,259,251 $8,802,447,338 2 Mounds View, MN $28,963,636 $126,589,625 $232,708,046 $299,684,401 3 Hammond, IN $304,902,022 $1,539,817,459 $12,646,447,118 $26,233,749,395 3 Hammond, IN $10,467,307 $53,976,329 $460,214,120 $923,058,416 4 Fishers, IN $385,103,388 $1,371,814,559 $3,683,553,040 $17,481,778,450 4 Fishers, IN $15,175,501 $50,223,854 $125,697,388 $590,494,509 5 New Century, KS $123,756,075 $1,169,474,961 $3,501,210,708 $6,320,681,400 5 New Century, KS $4,875,636 $44,461,889 $123,176,502 $206,481,106 6 Noblesville, IN $213,637,317 $1,066,423,615 $3,623,227,010 $16,901,218,707 6 Noblesville, IN $8,730,336 $39,170,672 $123,963,164 $571,810,433 7 Fort Wayne, IN $291,249,337 $510,221,855 $2,180,885,286 $21,877,630,176 7 Fort Wayne, IN $10,234,068 $17,277,744 $68,261,938 $743,058,656 8 Springfield, OR $142,145,959 $366,258,248 $1,157,850,003 $5,633,398,836 8 Springfield, OR $4,933,409 $12,963,902 $40,816,135 $203,718,294 9 Sioux City, IA $115,146,762 $154,897,101 $1,248,293,089 $4,334,491,861 9 Sioux City, IA $3,939,856 $5,078,956 $39,037,605 $134,573,602 10 Cape Girardeau, MO $76,965,196 $109,652,690 $970,269,859 $7,490,320,201 10 Cape Girardeau, MO $2,627,376 $3,480,840 $29,472,272 $242,028,941 11 Salina, KS $50,855,303 $78,336,783 $1,018,651,717 $5,305,752,709 11 Salina, KS $1,786,190 $2,493,283 $32,850,888 $177,075,665 12 Dickinson, ND $45,761,280 $55,281,893 $253,158,766 $625,837,045 12 Dickinson, ND $1,471,884 $1,640,436 $7,614,876 $17,908,923 13 Gatlinburg, TN $6,661,559 $27,353,616 $1,179,536,200 $6,028,926,318 13 Gatlinburg, TN $196,583 $858,786 $36,748,226 $178,964,298 AVERAGE $237,898,568 $1,035,660,575 $3,924,963,918 $11,503,905,554 AVERAGE $8,802,883 $37,639,247 $139,169,796 $391,128,590 Rank (out of 13)1 2 3 6 Rank (out of 13)1 2 3 6 Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 28 COMPARABLE FACILITIES3 Case Studies Case studies for the selected comparable indoor amateur sports facilities are provided below and on the pages that follow. Utilization figures represent the most recent full year not impacted by the COVID-19 pandemic (in most cases,2019). Best Choice Fieldhouse in Fishers,Indiana is a 53,000 sq ft basketball facility privately owned and operated.The facility opened in 2013 and attracts 800,000 players and spectators annually through training,games, tournaments and more. The fieldhouse contains six full-size basketball/volleyball courts with a championship court seating up to 1,000 attendees.In the center of the complex is a high-quality concession area with an observatory deck above it. The fieldhouse hosts youth leagues,tournaments,individual trainings,and an elite traveling team.Head trainer,Isaac Loechle,was formerly a D1 basketball coach and has now shifted his skillset to youth sports.Training sessions are available for beginners and advanced players grades 2nd-12th. $200/month for training once per week (four sessions)and $320/month for training twice per week (eight sessions). The facility also offers adult basketball leagues throughout the year and a variety of basketball options available for every age and skill level. Best Choice Fieldhouse 1 CITY, STATE:Fishers, IN OWNER:Private OPERATOR:Private YEAR OPENED:2013 FACILITY SIZE (SF):53,000 COST (original, in millions):N/A COST (current, in millions):N/A COURTS (basketball):6 COURTS (volleyball):6 Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 29 COMPARABLE FACILITIES3 The Cape Girardeau Sportsplex is a 121,000 square-foot,multi-sport facility located on Interstate 55 in Cape Girardeau,Missouri.The Sportsplex opened in May of 2017 at a cost of $12 million.It is owned and operated by the City of Cape Girardeau,with construction debt service and operations supported by a 1.0 percent restaurant tax,which generates an estimated $160,000 annually. The Sportsplex includes two fully-enclosed regulation indoor turf fields with netting and drop-down batting cages;six high school regulation basketball courts convertible to twelve hardwood volleyball courts;multi-use space for meetings;and full-service concessions.The 10+acres for the building and surrounding parking was donated by Midamerica Hotels Corporation. Court and turf rentals for tournaments are available with both a commercial and non-profit rate that vary based on number of usage days and number of courts.The average court rate per day is $425 for commercial and $305 for non-profit.The average turf rate per day is $615 for commercial and $410 for non-profit. The City of Cape Girardeau Parks &Recreation Department has developed programming for various indoor sports including basketball,volleyball and sports training.The Sportsplex hosts over 40 annual tournaments,most of which are two-day events.Nearly every weekend is occupied from early December through July (with the exception of the two weeks spanning Christmas and New Years). The facility also has full-service concessions and a multi-use space for team meetings,coach’s clinics,team parties and more.The facility is open to the public for court,turf and batting cage use or can be rented for tournaments. According to facility management,the facility draws tournament business from a five-state region including Missouri,Arkansas,Illinois,Kentucky and Tennessee. The facility generated revenues of $595,000 and expenses of $701,000 excluding approximately $325,000 in depreciation.Revenue include concessions,usage fees and other miscellaneous sources.Expenses include those related to contractual services,general operating expenses, materials and supplies,personnel services and other expenses. Approximately 13 full-time equivalents are dedicated to facility operations. Cape Girardeau Sportsplex 2 CITY, STATE:Cape Girardeau, MO OWNER:City of Cape Girardeau OPERATOR:City of Cape Girardeau YEAR OPENED:2017 FACILITY SIZE (SF):121,000 COST (original, in millions):$12.5 COST (current, in millions):$15.2 COURTS (basketball):6 COURTS (volleyball):12 Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 30 CITY, STATE:Noblesville, IN OWNER:Klipsch-Card Athletic Facilities OPERATOR:Klipsch-Card Athletic Facilities YEAR OPENED:2018 FACILITY SIZE (SF):130,000 COST (original, in millions):$24.0 COST (current, in millions):$28.1 COURTS (basketball):5 COURTS (volleyball):5 COMPARABLE FACILITIES3 The Finch Creek Fieldhouse in Noblesville,Indiana is a 130,000-square foot facility that opened in 2018 at a cost of $24 million.It was brought to development through a partnership between the City of Noblesville and Klipsch-Card Athletic Facilities,LLC;the owner and operator of the facility. The city funds the project with $600,000 per year from property taxes and rental fee revenue as well as additional funding of $200,000 annually. The fieldhouse consists of 5 hardwood basketball courts,11 indoor batting cages,and 65,000-square feet of turf space.The complex also offers a 10,000-square foot physical therapy office,indoor and outdoor concessions, a second-floor viewing area and high-definition cameras for streaming and recording game play. The Finch Creek Fieldhouse grounds contain trails,four pickleball courts,a lighted basketball court,playgrounds,picnic space,and a seasonal splash pad. Memberships are offered for baseball and softball batting cages for individuals or families at time increments of three months,six months or twelve months. The facility offers youth sports camps in baseball,softball,football and basketball,with 14 instructors for the various camp and training offerings. St.Vincent Sports Performance is the exclusive provider of athletic trainers and healthcare. The complex hosts large sporting events,team and individual training and large private parties. It was initially anticipated the facility would create 40 full-time jobs and 350 part-time jobs. Finch Creek Fieldhouse 3 Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 31 CITY, STATE:Hammond, IN OWNER:City of Hammond OPERATOR:City of Hammond YEAR OPENED:2018 FACILITY SIZE (SF):135,000 COST (original, in millions):$17.0 COST (current, in millions):$19.9 COURTS (basketball):6 COURTS (volleyball):10 COMPARABLE FACILITIES3 The Hammond Sportsplex officially opened in September 2018.The 135,000-square foot facility includes two regulation-size indoor turf soccer fields that can be utilized as a baseball/softball field,six basketball courts that can be converted into ten volleyball courts,six batting cages,an upper level quarter-mile track open free to the community,a community room, concessions,and restrooms and changing rooms. The $17 million facility was constructed by Madison Construction in partnership with the City of Hammond.The Sportsplex sits on the old site of the Woodmar Mall on Indianapolis Boulevard;centrally located in Hammond, yet easily accessible for traveling teams and non-local guests. The facility was funded by a $9 million loan from the U.S.Department of Housing and Urban Development in conjunction with a tax-increment financing district (TIF)that covered the additional $8 million needed. Major tenants include Kennedy Avenue Chiropractic,Velocity 219 Volleyball Club and various youth volleyball and basketball leagues/camps. Full-day facility rental (eight hours)for the six basketball and volleyball courts is $3,000 per day and $1,600 for two turf soccer fields.Courts and fields rent individually for $50 per hour during peak for basketball and $65 per hour for volleyball.Non-peak rentals are $25 per hour for basketball and $35 for volleyball.Soccer is $100 per hour for a full-field and $60 per hour for a half-field. Hammond Sportsplex 4 Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 32 CITY, STATE:McCook, IL OWNER:Village of McCook OPERATOR:Village of McCook YEAR OPENED:2006 FACILITY SIZE (SF):150,000 COST (original, in millions):N/A COST (current, in millions):N/A COURTS (basketball):6 COURTS (volleyball):4 COMPARABLE FACILITIES3 Max McCook Athletic &Exposition,The MAX,is a 150,000-square foot multi- purpose facility located in McCook,Illinois.It is owned and operated by the Village of McCook and opened in 2006. The facility has 25,000 square feet of hard court space,containing two full- sized main basketball courts,a full-sized private wood court gymnasium, and an elevated private deck court.It also consists of 80,000 square feet of turf space that can be divided into four fields;a baseball/softball academy with 8 batting tunnels,2 full size dirt pitching mounds,and 3 full size turf/rubber pitching;three locker rooms;a strength training area;and a 6,000 square foot restaurant space. The complex is home to many special events throughout the year.The space and amenities provide the opportunity to host both large and small events including expositions,corporate events,health fairs,dog shows, birthday parties and school events. The MAX is designed to allow coinciding events as well as singular,full- building events.The entire building is climate controlled to allow for year- round usage,and an over-field viewing mezzanine with allows for sight-lines from all locations and a comfortable off-field environment.There is also a full concession and vending area within the complex. Open gym rental is available for $9 per person or a $70 punch card that is good for ten visits.Court and turf rental are also available. The facility’s main tenants are Lions Juniors Volleyball Club,Lyons Township Soccer Club,Prep Baseball Report,and Top Tier Baseball. MAX Days through MAX Camp are offered to children 6-12 years old during summer,fall,winter,and spring break.The program provides full days of sports,activities,and other kinds of fun.Parents have flexibility to choose the number of days for their kids.The program runs 9:00am –4:00pm,and extended hours are available for an extra fee in the morning and afternoon to accommodate schedules. Max McCook 5 Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 33 CITY, STATE:New Century, KS OWNER:Johnson County OPERATOR:Johnson County Parks & Rec YEAR OPENED:2011 FACILITY SIZE (SF):88,000 COST (original, in millions):$5.8 COST (current, in millions):$8.9 COURTS (basketball):4 COURTS (volleyball):8 COMPARABLE FACILITIES3 The New Century Fieldhouse is located in New Century,Kansas.It opened in 2011 as an 88,000 square foot facility at a total cost of $5.8 million.It is owned by Johnson County and operated by the Johnson County Parks and Recreation Department. The indoor sports and multi-use facility has over 40,000 square feet of court space that can be configured to include four basketball courts,eight volleyball courts,four futsal courts,or even pickleball courts.It also features a 27,000 square foot indoor turf field that can be utilized for a variety of field sports and activities.Other features include a large multi-purpose room, concessions,flat screen TVs,a lounge,meeting rooms,an upper-level longue area with court and field views,and four party rooms for meetings, parties,or other special events. The fieldhouse offers a wide assortment of programs,activities and clinics for all ages and interests.They offer fitness and health,arts and crafts, walking,adult and youth leagues,youth camps and clinics,and 50 plus programming. When the facility opened in 2011,it had already booked events for every weekend from December through April.In 2012,they had nearly 93,000 participants,and by 2013,they had nearly 117,000 participants. Courts and turf space as well as the multi-purpose room are all available to be rented. New Century Fieldhouse 6 Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 34 CITY, STATE:Gatlinburg, TN OWNER:City of Gatlinburg OPERATOR:Sports Facilities Companies YEAR OPENED:2014 FACILITY SIZE (SF):86,000 COST (original, in millions):$20.0 COST (current, in millions):$27.4 COURTS (basketball):6 COURTS (volleyball):12 COMPARABLE FACILITIES3 The 80-acre Rocky Top Sports World (Complex)opened in 2014 and is a joint development of the City of Gatlinburg and Sevier County.The City of Gatlinburg serves as the owner and Sports Facilities Companies (SFC) operates the complex under contract. The Complex includes six turf outdoor fields and a natural grass championship stadium with seating for 1,500 people.The outdoor fields are configurable for 14 youth soccer fields.Six of the fields feature lights. The signature facility of the Complex is an indoor court complex referred to as “The Rock”.The Rock has 53,000 SF of hardwood court space in an 86,000-square foot facility.The configuration allows for six basketball courts or 12 volleyball courts in addition to team rooms,referee locker rooms,a full-service indoor/outdoor café,office space for coaches and a balcony viewing area.There is a separate facility in an adjacent location that can accommodate four additional basketball courts and five volleyball courts. The City contributed approximately 70 percent of the development cost by issuing bonds and the County contributed the balance utilizing bonds and grants. The Complex was created to encourage sports tourism in the City and County.Any teams that are based in Sevier County or affiliated with a Sevier County School qualify for the opportunity to use the Rocky Top facilities for free.Specific times are allocated during the week for this free use.Local officials indicate that having a booking policy clearly outlining the objectives of the complex is important for long-term success.Marketing of the Complex is part of the private management team’s annual budget but is significantly augmented by the City’s overall tourism marketing budget.The Complex management team works closely with the City,State,Gatlinburg Convention and Visitors Bureau,school officials and hoteliers to maximize bookings,particularly during the slower winter months when tourism surrounding the Smoky Mountains is not as robust. In 2018,the complex hosted 190 events,including 61 multi-day events in both traditional and non-traditional sports,and drew over 120,000 athletes and spectators to the complex,according to facility management.This activity was estimated to generate nearly $50 million in economic impact to Sevier County. In 2019,Rocky Top Sports World (both indoor and outdoor facilities) generated operating revenues of $1.2 million and operating expenses of $1.7 million in 2019,which excludes depreciation of $1.2 million.Operating revenues primarily consisted of food services,events,sponsorships and rentals.Operating expenses included personnel costs,occupancy and contractual services. Rocky Top Sports World 7 Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 35 CITY, STATE:Salina, KS OWNER:City of Salina OPERATOR:City of Salina YEAR OPENED:2017 FACILITY SIZE (SF):68,500 COST (original, in millions):$11.8 COST (current, in millions):$14.4 COURTS (basketball):6 COURTS (volleyball):8 COMPARABLE FACILITIES3 The Salina Fieldhouse located in downtown Salina,Kansas opened in 2017, is owned and operated by the Salina Parks and Recreation Department.The 68,500-square foot facility had a cost of $11.8 million.Funding came through public and private partnerships,and half was funded through private donations held in a provisional fund at the Greater Salina Community Foundation. The facility contains six basketball courts,three of which are hardwood and three are synthetic turf.The courts can be converted to eight volleyball courts or six futsal courts.The facility also has a 21,000-square foot indoor turf space that can accommodate soccer,football,kickball,baseball,softball and field hockey,as well as drop-down batting cages and pitching tunnels. Additionally,the complex has a spacious entrance,lobby,team gathering areas,a concession area and a landscaping with featured art elements. The fieldhouse mainly hosts Parks and Recreation programming,as well as clubs,teams and organizations,and is capable of hosting a variety of athletic events such as league play,tournaments,team practices,camps and clinics. Court rentals are available for $30/court/hour for practices,and $40/court/hour for events.Turf rental is also available at a rate of $35/one- third of the field/hour before 5:30pm,and $45/one-third of the field/hour after 5:30pm and on weekends.It is also possible to rent out half the facility or the whole facility. Salina Fieldhouse has youth and adult programs for basketball,soccer,flag football,volleyball,pickleball and wiffle ball. Salina Fieldhouse 8 Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 36 CITY, STATE:Fort Wayne, IN OWNER:Private OPERATOR:Private YEAR OPENED:2000 FACILITY SIZE (SF):150,000 COST (original, in millions):N/A COST (current, in millions):N/A COURTS (basketball):8 COURTS (volleyball):8 COMPARABLE FACILITIES3 The Spiece Fieldhouse in Fort Wayne,Indiana is a state-of-the-art basketball and fitness center,owned and operated by Thomas Spiece.It opened in 2001 as a 150,000-square foot.The facility underwent a $2.5 million renovation in 2021 that included upgrades to the basketball courts,new fitness equipment and the opening of the new Adrenaline Adventure Park – a family-oriented athletic park. The fieldhouse consists of eight basketball or volleyball courts,and a 45,000- sqare foot indoor turf space.Additionally,the building contains spas, saunas,a large fitness and performance center,an indoor track,childcare options and updated locker rooms. The facility is used for athlete development,weight training,sports games and tournaments and group fitness classes.The facility is youth through senior friendly. Court rental is available for $50/court/hour before 5pm Monday-Friday,and $70/court/hour after 5pm and on weekends.Turf fields are also available to rent at a rate of $70/field/hour Monday-Sunday. Membership fees are as follows: Red Card Membership •$20 enrollment fee $20 monthly fee •Includes:Full weight section accessibility with limited hours. White Card Membership •$20 enrollment fee $35 monthly fee •Includes:Full weight section accessibility,24/7.Basketball access when available. Blue Card Membership •$20 enrollment fee $50 monthly fee 1-5 family members covered •Includes:Full weight section accessibility,24/7.Basketball access when available.Group fitness classes.Youth sports training. Black Card Membership •$20 enrollment fee $75 monthly fee 1-5 family members covered •Includes:Full weight section accessibility,24/7.Basketball access when available.Group fitness classes.Youth sports training.2 monthly guests.Access to turf fields when available. Spiece Fieldhouse 9 Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 37 CITY, STATE:Sioux City, IA OWNER:Private OPERATOR:Private YEAR OPENED:2019 FACILITY SIZE (SF):80,000 COST (original, in millions):$13.0 COST (current, in millions):$14.6 COURTS (basketball):5 COURTS (volleyball):5 COMPARABLE FACILITIES3 The Arena is an 80,000-square-foot facility located in Sioux City,Iowa.It opened in 2019 at a cost of $13 million and is owned by Mike Hesse and operated by HCC Enterprises.the Arena was built by remodeling an existing 60,000-square-foot retail store into a sports facility.$1.5 million in assistance came from an economic development grant provided by the city. The facility offers five full-size basketball/volleyball courts with 18 basketball hoops with height control,divider curtains and scoreboards.They have an Arena Performance Facility with new equipment,and a certified performance coach;an Arena Wrestling Academy with new equipment, small group training and tournaments and matches;as well as an Arena Dance Academy with a hardwood dance studio. Additional amenities include classrooms;locker rooms;batting cages;the Wells Blue Bunny Lounge with flatscreen TVs;the Scheels Snack Shack with a large selection of food,snacks,and drinks;the Chesterman’s Sports Bar & Grill with a full bar and food menu;and upper-level mezzanine seating with views of all five courts. The complex focuses on developing young athletes both physically and mentally,looking to build their character,create team players and enrich the community.They also strive to deliver top tier training through elite coaches, trainers and facilities.They try an emphasize two things:affordable programming without sac The Arena hosts leagues,tournaments,clubs,camps and other events for youth baseball,basketball,volleyball,wrestling and dance,as well as fitness classes through the Arena Fit program –all geared toward Siouxland athletes. The Arena 10 Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 38 CITY, STATE:Dickinson, ND OWNER:City of Dickinson OPERATOR:City of Dickinson YEAR OPENED:2004 FACILITY SIZE (SF):135,000 COST (original, in millions):$12.2 COST (current, in millions):$24.7 COURTS (basketball):4 COURTS (volleyball):4 COMPARABLE FACILITIES3 The 135,000-square foot West River Community Center originally opened in 2004 as a 77,000-square foot complex at a cost of $12.2 million.A half-cent sales tax funded $8.7 million of the project cost,with $3.5 million coming from private fundraising efforts.The Center was expanded twice,most recently in 2013,at a total cost of $15.0 million.Each expansion was funded by an extension of the half-cent sales tax. The facility contains four basketball courts,a weight room,daycare,lap and leisure pool,offices,two tennis courts,a golf simulator,an outdoor waterpark and a group fitness area. One-month memberships are available for $50 for all ages 2+.3-month memberships are available as follows:19+$125,2-18 years old $90 and seniors 60+$115.Corporate memberships for local businesses are a large part of their business as well. In 2019,the West River Community Center averaged 105 monthly members, 475 three-month memberships and 6,100 annual memberships. The facility has never operated at a loss.The half-cent sales tax is used to fund the center and the City subsidizes up to $130,000 for capital repairs. Utilities expense is roughly $400,000 per year. Unique revenue opportunities include concessions,tanning beds,indoor vending machines and donations. All marketing is handled through the City of Dickinson and the Dickinson Conventions and Visitors Bureau. The facility has 12 full-time employees and 120 part-time employees. West River Community Center 11 Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 39 CITY, STATE:Springfield, OR OWNER:Willamalane Parks & Rec OPERATOR:Willamalane Parks & Rec YEAR OPENED:2010 FACILITY SIZE (SF):97,000 COST (original, in millions):$8.0 COST (current, in millions):$12.8 COURTS (basketball):6 COURTS (volleyball):11 COMPARABLE FACILITIES3 The Bob Keefer Center located in Springfield,Oregon,opened in 2010,is a 97,000-square foot facility owned and operated by the Willamalane Park and Recreation District.The Park and Recreation District purchased the foreclosed Regional Sports Center for $1.5 million transforming it into the Willamalane Center after $450,000 in improvements,repairs and remodeling.It was renamed the Bob Keefer Center in 2016 at the retirement of the long-term Superintendent of the Willamalane Park and Recreation District. Bob Keefer Center athletic courts provide space for a multitude of sports for group and large-scale events and tournaments.The facility contains six basketball courts that can be converted to 12 volleyball courts,four indoor tennis courts,three roller derby rinks,four outdoor baseball/softball fields, four lighted,outdoor,artificial soccer fields,and seating for 1,000 people. Additionally,the facility has a climbing wall,a fitness/martial arts area,and 25,000-square feet of office space,conference room space,and early childhood educational space. Indoor courts can be rented for between $25 to $60 per hour,and outdoor turf fields can be rented for between $25 to $45 per hour,with an extra $15 per hour for lights. The complex has four meeting spaces: Two50 Youth Center •High-tech youth center that features 8 flat-screen TVs with PS3s and an 18-foot-wide 3D HD projection screen.There is also a pool table and lounge area. •Capacity:49 •Rental Rate:$50-$60 per hour Heron Room •718-square foot room with and advanced sound system,It’s great for business meetings,presentations,and workshops.Includes:Full weight section accessibility,24/7.Basketball access when available. •Capacity:49 •Rental Rate:$40-$50 per hour Ken Long Room •1,772 square feet with a gym-type resilient floor,an adjacent warming kitchen,and an advanced sound system.It can be divided into two rooms and is good for dances,parties,and gatherings. •Capacity:118 full/49 north section/73 south section •Rental Rate:$65-$75 full/$40-$50 north/$50-$60 south Mill Race Room •235 square foot conference room. •Capacity:16 •Rental Rate:$15-$18 per hour Bob Keefer Center 12 4 INDUSTRY TRENDS Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 41 INDUSTRY TRENDS4 Overview The economy of any destination can be influenced by many factors outside the control of community leaders.Economic conditions, corporate relocations,changes in governmental or institutional presence and other factors will influence employment,income,tax revenues and other critical aspects of an economy. In Mounds View,as with many communities,the visitor industry also plays an important role in local and regional economic health. Visitors to a market offer an opportunity to inject new dollars into the economy,with relatively limited use of public infrastructure. Visitor spending then generates net new tax revenue,reducing the tax burden on residents. At the same time,the competition for visitor industry market share is fierce.Communities throughout the country,many competing with Mounds View,continue to invest in assets and amenities that are designed in part to attract visitors.Much of this investment involves sports tourism facilities. The market success of sports tourism facility products can be partially attributed to broader industry characteristics and trends.In order to assess the current and future strength of the market with regard to sports tourism activity that could utilize a potential new sports facility product in Mounds View,it is important to evaluate prominent and emerging trends from a national perspective. Sports tourism is one of the fastest growing sectors of tourism.An increasing number of communities throughout the country are investing in the development and operation of large,multi-sport amateur sports complexes for the purpose of driving new sports tourism,as well as better accommodating local sports and recreation demand.An increase in the number of travel sports programs and participation has been matched by the recognition by many communities of the oftentimes high return-on-investment modern sports complexes can have in host destinations in terms of driving visitation,hotel room nights and economic impact. In 2022,Sports Events and Tourism Association (Sports ETA) released its annual State of the Industry report for 2021 noting an estimated direct spending impact of $39.7 billion.This impact resulted in a total economic impact of $91.8 billion,creating 635,000 full-and part-time jobs and generating $12.9 billion in tax revenue for municipalities throughout the country.Additionally,the study noted that despite decreased attendance at sports tourism activities in 2020,the industry rebounded in 2021 to levels comparable to 2019 levels. Significant investment in sports facilities and multi-component sports complexes has occurred throughout the country.Modern sports and event facilities have significantly evolved in terms of capabilities,flexibility,amenities,operating efficiencies and revenue generation opportunities. Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 42 INDUSTRY TRENDS4 Participation Levels A summary overview of sports participation trends in the United States and the West North-Central region has been assembled.An understanding of these trends at a national, regional and local level provides a framework from which to begin to assess potential demand for new Youth and Amateur Sports Complex in Mounds View. The statistical data presented in this section was derived from the National Sporting Goods Association’s Sports Participation study,which was most recently conducted in 2018.The study measures the annual number of participants in a variety of sports and recreational activities,and the frequency of participation during the previous calendar year.Research is derived from a study based on approximately 40,000 interviews encompassing youth and adult sports participation. Additionally,we have analyzed data from the National Recreation and Park Association 2019 Agency Performance Review (representing the latest relevant pre-pandemic data), which presents data and insights from over 1,000 park and recreation agencies,including metrics on facilities per resident, budgets,staffing and more. Although it is anticipated that a large portion of programming at a new Youth and Amateur Sports Complex in Mounds View would be dedicated to local sports and recreation,it is important to understand the overall rates on a national level. National participation levels can provide insights into the overall popularity of a sport or athletic activity,as well as the size of the base from which to attract new frequent participants.The exhibit to the top right presents a summary of the national participation rates of indoor sports,broken out by participation level (i.e.,frequent,infrequent and occasional). Swimming,basketball and volleyball have the highest participation levels for indoor sports with a high amount of infrequent and occasional participants,and a relatively normal number of frequent participants.Investing in more of these facilities benefits many communities across the nation. The exhibit to the bottom right summarizes sports participation levels by age group for indoor sports.A new Youth and Amateur Sports Complex in Mounds View would be anticipated to be utilized by a variety of age groups,and it is important to understand which sports and athletic activities appeal to each age group in order to consider appropriate programming. The largest user groups in almost every sport are ages 7 to 11 and ages 12 to 17.Youth sports dominate the national participation levels;therefore,facility management can plan on having most of its programming originating from youth sports and athletics. Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 43 INDUSTRY TRENDS4 This exhibit to the right summarizes the frequent participation rates nationally and regionally for each sport indicated.The rate of participation includes only frequent users and does not account for occasional and infrequent users. The exhibit below summarizes the estimated population base participating in each identified sport based on participation rates applied to the overall market population.As previously mentioned,the rate of participation includes only frequent users and does not account for occasional and infrequent users.Using this type of extrapolation,the hypothetical number of frequent basketball and volleyball participants within a 30-minute drive of Mounds View calculates to 38,778 and 51,059 persons,respectively.Importantly,this type of evaluation metric is only one of a number of tools that are helpful in assessing demand associated with various sports and activities.Further research,including interviews with potential user groups,will be presented and discussed in subsequent sections of this report. Frequent Participation (times annually) National Frequent Participation Rate West North Central Index Adjusted West North Central Participation Rate Indoor Sports: Basketball 50+1.57%108 1.69% Cheerleading 70+0.28%70 0.19% Gymnastics 40+0.54%75 0.40% Martial Arts 80+0.46%115 0.53% Pickleball 30+0.05%100 0.05% Volleyball 20+1.17%191 2.23% Wrestling 50+0.16%141 0.22% Outdoor Sports: Baseball 50+0.70%110 0.77% Flag Football 50+0.14%124 0.17% Lacrosse 60+0.11%64 0.07% Soccer 40+1.31%128 1.68% Softball 40+0.59%129 0.75% Tackle Football 50+0.71%119 0.84% Market Population National Regional National Regional National Regional National Regional Rate Rate Rate Rate Rate Rate Rate Rate Basketball 8,534 9,217 35,905 38,778 69,108 74,636 101,280 109,383 Volleyball 6,354 12,136 26,733 51,059 51,453 98,275 75,407 144,026 Gymnastics 2,940 2,205 12,367 9,275 23,803 17,852 34,884 26,163 Cheerleading 1,511 1,057 6,356 4,449 12,233 8,563 17,927 12,549 Wrestling 856 1,206 3,599 5,075 6,927 9,768 10,153 14,315 Soccer 7,128 9,124 29,989 38,386 57,720 73,882 84,592 108,277 Tackle Football 3,849 4,580 16,192 19,268 31,164 37,086 45,673 54,351 Flag Football 758 939 3,187 3,952 6,134 7,606 8,990 11,148 Lacrosse 615 394 2,588 1,656 4,981 3,188 7,300 4,672 Baseball 3,810 4,191 16,027 17,630 30,848 33,933 45,209 49,730 Softball 3,186 4,110 13,405 17,292 25,800 33,282 37,811 48,777 Martial Arts 2,511 2,887 10,563 12,147 20,330 23,380 29,795 34,264 Pickleball 251 251 1,058 1,058 2,036 2,036 2,983 2,983 Total 42,301 52,298 177,967 220,025 342,538 423,486 502,004 620,638 of MVCC of MVCC of MVCC of MVCC 544,415 2,290,424 4,408,431 6,460,746 Hypothetical Population-Based Extrapolation of Estimated Frequent Participation by Sport 15-Minute 30-Minute 90-Minute 180-Minute Drive Time Drive Time Drive Time Drive Time Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 44 INDUSTRY TRENDS4 The following present some noteworthy trends relative to design and capabilities of indoor sports tourism-focused facilities: CRITICAL MASS OF HIGH QUALITY PLAYING SURFACES TURF FIELDS (INDOOR & OUTDOOR) EMPHASIS ON PARTNERSHIPS CREATION/ENHANCEMENT OF QUALITY SUB-DESTINATIONS INCORPORATION OF AMENITIES PERFORMANCE CENTERS & E-SPORTS RESTAURANTS/CAFES/FOOD COURTS COMPLEMENTARY ANCILLARY DEVELOPMENT •Critical mass of high-quality courts, fields and playing surfaces in one location. •Maximization of local uses and sports tourism. •Flexibility to accommodate the widest variety of uses. •Synthetic turf (indoor & outdoor) is increasing accepted and expected by most tournament and local sports/rec activity. •Growing emphasis on partnerships (equity, sponsorship and ancillary development). •Focus on creating/enhancing the quality of sub-destinations surrounding facility complexes. •Incorporation of quality amenities & specialty components: o Performance centers o eSports capabilities/technology o Restaurants/cafes/food courts o Fitness & wellness o Leisure amenities (child play areas, mini-golf, AR tech) o Ancillary development (hotels, retail, attractions) The “state-of-the-industry”in terms of the physical product aesthetics and functionality of youth and amateur sports facilities has continued to advance year-over-year in communities throughout the country.Organizers for youth and amateur sports activities increasingly prefer,and oftentimes demand,modern facility complexes with state-of-the-industry playing surfaces,equipment and amenities.Beyond attracting higher numbers of teams,athletes,tournaments,visitors and economic impact,modern youth and amateur sports facilities often offer significant advancements in operating efficiencies and enhanced revenue generation opportunities,as compared to previous generations of facilities.Synthetic turf is increasingly utilized for both outdoor and indoor sports facility projects,delivering significant advantages over other surfaces,particularly for sports tourism activity.The following present some noteworthy trends relative to design and capabilities of indoor turf sports facilities: 1.FACILITY DESIGN ELEMENTS:A typical indoor turf facility has a space of at least 75’x185’,with the ability to increase the size of the playing surface to accommodate a variety of user groups,with a minimum ceiling height of thirty feet.The minimum space allotted to turf in a given facility should be no less than 15x60 feet or 900 square feet of turf space.However,those spaces can only support training and clinics,and no competitions or leagues because of the lack of space,and,in fact,are typically located inside of fitness centers as an alternative place to do focused training. 2.UPKEEP:Turf,like any other exercise facility,requires regular cleaning and maintenance should occur to keep the facility attractive and inviting.In addition,the use of cleats on turf,regardless of type,reduces its lifespan by 50 percent so it is generally recommended to require use of turf shoes to not need to consistently replace turf padding. 3.COST:There are two primary upfront costs regarding installation of turf,the drainage base and the turf itself.The drainage base lies below the turf and allows any liquids to seep through and reach the drainage system without getting trapped.These systems can last 20-30 years,and cost approximately $4 per square foot.The turf panels themselves are laid atop the drainage base,a conservative price estimate for cost is $5 per square foot of turf space.All in all,for a typically 75’x185’turf field,installation costs can range from $120,000 to $180,000. 4.DURABILITY:The industry standard for a given turf field’s life span is between eight and twelve years,though with proper maintenance and cleaning fields have been shown to last longer. 5.ANCILLARY REVENUES:To generate additional revenues for turf facilities,a variety of programs should be considered such as membership fees,admissions fees,seniors'programs,in-house tournaments and mother’s programs.Additionally,more traditional revenue sources such as corporate partnerships (sponsorship and advertising),food service (concessions and hospitality)and event space rental for non-sports activities (e.g.,consignment sales,meetings,team building events,etc.)can provide important support to year-round operations. Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 45 INDUSTRY TRENDS4 COVID-19 Pandemic Effects &Recovery Since early 2020,the negative impact of the COVID-19 pandemic on the sports/recreation,event,entertainment,retail,hospitality and tourism industries cannot be understated.Cancellations and postponements of nearly all events and gatherings through the end of 2020 and early 2021 occurred.Most live event activity throughout the country was cancelled,postponed or shifted to a virtual format through mid-2021.These conditions,however,will not be permanent.The timeline for full industry recovery is still somewhat uncertain.Late 2021 and early 2022 saw a widespread loosening of public assembly restrictions and began to manifest a general return of consumer confidence,travel and participation in all types of event activities. From the perspective of a potential new Youth and Amateur Sports Complex in Mounds View,it is important to consider how the planned product will be positioned following this highly-unusual period.Careful planning during this period could lead to significant and cost-effective product development over the next economic recovery and growth cycle and beyond.Near-term planning,marketing and sales efforts associated with the proposed sports facility project should be able to capitalize on this unique timing.Subsequent operational planning will certainly take into account the evolving needs and best practices facing such facilities in a post-COVID environment (including emphasis on flex spaces,attendee/participant social distancing,PPE and other health/safety policies, amenities and operating practices).A best practices approach developed by Legends,CSL’s parent company,is summarized below. As a long-term planning document,the findings and conclusions presented herein are believed to be relevant with respect to a post- pandemic recovery within the context of the likely timeframe of facility development and operation of a potential new Youth and Amateur Sports Complex in Mounds View.For example,the timeline of facility development would most likely represent construction completion and commencement of operations in 2024 or later.Indications suggest that the industry will most likely be in a post-COVID environment by that time,with a significant portion of event activity nationwide functioning consistent with the pre-COVID environment and a portion of activity continuing to grow or evolve. 5 MARKET DEMAND & PROGRAM Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 47 Overview The potential development of a new Youth and Amateur Sports Complex in Mounds View has the opportunity to better accommodate demand among Mounds View area residents and provide a venue capable of attracting sports tourism activity to the destination.Currently,Mounds View and the Mounds View Independent School District offer a variety of indoor amateur sports and recreation facilities;however,there are very few existing facilities that can offer a critical mass of indoor court or activity space capable of accommodating the growing local demand or hosting tournaments,meets or other large competitions. In order to provide guidance to the City and other community stakeholders,CSL’s project leader initially participated in a kick-off visit to Mounds View,which included tours and meetings with key client representatives,stakeholders and business leaders. Subsequently,CSL conducted direct outreach to local area user group candidates and national/regional sports team,club,association and tournament organizers that could represent candidates for use of a new Youth and Amateur Sports Complex in Mounds View.Overall,more than 80 organizations were targeted and 30 telephone interviews were completed with organizations representing in excess of 100 annual activities.These groups were contacted in order to determine their interest in a new facility and the amenities and elements that would be necessary to host a variety of programming essential to the successful operations of the facility,including practices,camps,clinics,training, recreational programs and other such uses.Specific groups contacted as part of this process and stakeholder meetings include the following: MARKET DEMAND &PROGRAM5 •ACE Athletics•Active Kids Association•Blaine Soccer Club•City of Mounds View•Coon Rapids Cardinal Basketball Club•Fridley Youth Sports Basketball Association•Hype Volleyball•Impact Volleyball•Irondale Baseball League•Irondale Basketball Association•Irondale High School•Kokoro Volleyball•Midwest Gymnastics•Minnesota AAU•Minnesota Fury Basketball•Minnesota Heat Hoops•Minnesota Volleyball Association •Minnesota Youth Athletic Services (MYAS)•MKG North Martial Arts•Mounds View Basketball•Mounds View Community Center•Mounds View High School•Mounds View Parks and Recreation•North Country Region Volleyball•North Suburban Soccer Association•Northern Impact Volleyball Club•Northern Lights Volleyball•Prep Network•Spring Lake Park Panthers Basketball Club•Tribe Athletics Sports Events•Triple Crown Sports•Twin Cities Gateway•Willie Brown Taekwondo The purpose of the remainder of this section is to provide a summary of the research and analysis of market demand and opportunities to guide the evaluation and planning for a new Youth and Amateur Sports Complex project Mounds View,as summarized on the following pages. Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 48 Basketball Demand Basketball is the leading participatory team sport in the U.S.Based on national statistics,there are more than 25.2 million individuals that participated at least once in basketball last year.Of these participants,nearly 4.7 million people (19 percent)participated in basketball activities at least 50 times,with another 10.6 million people (42 percent)playing basketball at least ten times.Among team sports,basketball is the activity with the most nationwide participants and has maintained this level of participation for over ten years. Boys and girls can start out at an early age with adjustable hoops with in-house teams or camps/clinics,working their way up to full-court games and traveling teams for players seven and older.League and tournament games typically feature eight to ten athletes and two to three coaches per team and an average of 1.5 spectators per athlete. Younger teams tend to attract more spectators,as do girls games. 5 MARKET DEMAND &PROGRAM Historically,games and practices have been held in gymnasium space found in local high schools,middle schools and elementary schools,as well as in other community facilities such as churches and health and fitness clubs (e.g.,YMCAs,etc.).However, increasing utilization of school gymnasium space,coupled with rising costs of labor,security,utilities,insurance and other costs to operate school gymnasiums and growing demand among sports organizations for practice and game spaces have put pressure on communities to develop purpose-built court spaces to accommodate this demand. Most basketball leagues and tournaments require access to a minimum of four to six courts to accommodate both boys and girls programs for a variety of age groups.Historically,these courts have been amassed among a variety of locations throughout a community;however,league and tournament organizers increasingly note the ease and importance of maintaining activity at a single location.Court sizes can range from approximately 5,000 square feet per court to up to nearly 10,000 square feet for championship court requirements (which incorporates additional surrounding space for seating,scorer’s tables,benches,etc.). Additional requirements include temporary/bleacher seating for 20 to 40 people per court,bathroom facilities,concessions, lobby/registration space,small meeting facilities,dividing walls/curtains for courts and at least five feet of distance around each court (ten feet total between courts). Conversations with area basketball leagues indicate a moderate to strong level of demand for a multi-court sports facility capable of hosting weekday practices and weekend tournaments.Specific organizations expressing an interest in utilizing indoor court space at the Mounds View Community Center include the Mounds View Basketball Association (MVBA)and Blaine Youth Basketball (BYB).Each association indicated demand for indoor practice space between mid-September through mid-March on Mondays,Tuesday and/or Thursday,during which time they could utilize all five potential courts for between two and four hours per night.On average,basketball organizations would look to rent the facility for approximately $25 to $35 per court hour. Additionally,demand was noted for hosting weekend tournaments between November and February.These tournaments would be two-days long,held on Saturday and Sunday and would look to attract between 50-60 teams per tournament weekend.In addition to tournaments hosted by the MVBA and BYB,organizations including the Spring Lake Park Panthers Basketball Club, Minnesota Fury Basketball,Minnesota Fury Basketball,Minnesota Heat Basketball and Tribe Athletics Sports Events indicated demand for hosting weekend tournaments.Tournaments would primarily be held during the primary season;however,moderate demand exists for off-season tournaments as well.On average,tournaments generate approximately $2,000 to $2,500 in rental revenue per weekend tournament. Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 49 Volleyball Demand There are over 10.6 million people participating in volleyball in the United States at least once over the past year,of which nearly 33 percent (3.5 million)were considered frequent participants,having participated 20 or more days in the last year.Another 3.7 million (35 percent) participated in at least 5 volleyball activities last year. Volleyball participation rates continue to grow among young girls and many communities have introduced youth and high school boys’volleyball teams and leagues as well. Most girls start playing volleyball at a slightly older age than basketball,with many not starting out until their pre- teen or early teen years;however,there are some volleyball programs offered for girls as young as 4/5 years old. Teams consist of six players on the court.Younger teams typically have fewer substitutes to maximize playing time, with older and more competitive teams typically rostering 12 players with 2 to 3 coaches per team. 5 MARKET DEMAND &PROGRAM Based on court construction and configuration,it is typical to be able to fit two youth/tournament volleyball courts within one full- sized basketball court.Tournaments can attract 60 to 70 teams within a 6 to 8 court facility and an average of 1.8 spectators per athlete. Similar to basketball,tournament organizers have historically been forced to utilize multiple venues across a community. However,with the growing interest in the sport,more tournaments are being held in venues that are able to accommodate a greater mass of courts to accommodate multiple age groups and competition levels simultaneously. Overall,demand for indoor volleyball space is strong,as an estimated 30,000 people currently playing and demand for court space continuing to increase as participation expands into boys volleyball and among adult volleyball leagues.Conversations with area club volleyball programs such as Impact Volleyball Club and Northern Impact Volleyball Club indicated moderate to strong demand for a multi-court sports facility to host weekday practices and weekend tournaments.Each Club indicated primary demand exists for two nights per week for up to four hours of practice time on up to ten volleyball courts (equivalent to approximately five full-sized basketball courts).Club volleyball season typically runs from November through early May.Similar to basketball demand,club volleyball demand is primarily on Mondays,Tuesdays and Thursdays,as many participants attend religious classes on Wednesday nights.Clubs and other organizations typically look to rent out the court space between $20 and $30 per court hour. However,demand also exists for Wednesday night volleyball court space through the Minnesota Volleyball Association (MVA), which is an adult league that currently runs from October through the end of December.Conversations with MVA leadership suggested that an opportunity exists to extend the season or offer additional seasons in the winter and/or spring months. Moderate weekend tournament demand was also noted for in-season tournaments,which would primarily consist of two-day tournaments that can attract approximately 80 teams per tournament. Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 50 5 MARKET DEMAND &PROGRAM Other Indoor Sports Demand There are a variety of other indoor sports that typically require a critical mass of flat floor space and accompanying seating in which to host practices,games,competitions,tournaments,meets,exhibitions and other such events. Indoor training space for baseball,softball,soccer and other spring sports is one such potential opportunity from January through March/early April.Organizations such as the Irondale Baseball League,Irondale High School and North Suburban Soccer Association indicated a moderate to strong interest in off-season indoor training space for baseball,softball and/or soccer.These organizations could utilize the entire five-court complex an average of three times per week.While they prefer prime hours (between 5:00 pm and 9:00 pm,these organizations offering opportunities for off-season training are generally flexible with their utilization and willing to utilize early morning,late night and even weekend space for training. Another opportunity is with Active Kids Association,which is a 501(c)3 non-for-profit organization that offers summer camps, before and after school programs,school release break day programs and community events designed for kids and families to spend time playing a variety of sports,socializing,learning healthy lifestyle skills and attending educational events.Program offerings tend to be early mornings,before the school day,immediately following school release and weekdays during the summer months.They serve over 800 families and 1,000 kids in grades kindergarten through fifth grade,annually.As a non- profit organization,they tend to seek more modest rental terms;however,they utilize indoor activity space during typical non-peak hours and provide an important service to area households with working parents and underserved families. Pickleball is one of the fastest growing sports in the nation,with an estimated 4.8 million participants,with 4.0 million participants playing eight times per year or more,according to USA Pickleball.Depending on configuration,facilities can get two or three pickleball courts on each full-sized basketball court and can operate year-round on weekdays during typical non-peak rental periods.The average age of pickleball players has been declining in recent years,as younger individuals begin to participate,with an estimated decrease in the average age by 2.9 years from 2020 to 2021.Additionally,pickleball tournaments have been increasingly prevalent in some markets;however,these tournaments tend to be held at dedicated pickleball facilities,and not a multi-sport indoor court complex. Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 51 Market Demand Conclusions Based on the results of the research and analyses conducted under this feasibility study,overall findings suggest that a distinct market opportunity exists for a new Youth and Amateur Sports Complex in Mounds View inclusive of three additional full-size basketball courts adjacent to the Mounds View Community Center.Key findings and conclusions related to market demand include the following: 5 MARKET DEMAND &PROGRAM 1.OVERALL DEMAND &FACILITY FOCUS:In general,interest in a potential new Youth and Amateur Sports Complex in Mounds View,measured through interviews with stakeholders and potential user groups,is considered moderately-strong to strong. Market research and analysis suggest that a state-of-the-industry Youth and Amateur Sports Complex,suitable to accommodate basketball,volleyball,pickleball,martial arts,indoor soccer,and off-season/supplemental training for various field sports and their related practices and training activities,could address certain local and non-local market demand that is not currently being met by existing facilities in the local and regional marketplace.In particular,volleyball and basketball appear to be some of the most prominent sports that would represent core uses of a new Youth and Amateur Sports Complex in Mounds View.Activities such as pickleball,training for baseball,softball and soccer,and community space for before and after school care would be expected to supplement utilization. 2.DEMOGRAPHICS:The goal of any new investment in a new Youth and Amateur Sports Complex in Mounds View would be envisioned to not only meet the needs of Mounds View residents,but also the needs of tournaments,meets and competitions that draw out-of-town visitors to the area and generate economic and fiscal impacts to Mounds View.As a result,the viability of any potential investment in a new Youth and Amateur Sports Complex is dependent,in large part,on local market demographic and socioeconomic characteristics of both the local and regional area,and the marketability of the community to potential visiting participants and spectators.A substantial population base exists within both the primary and secondary markets serving Mounds View (nearly 600,000 within 15 minutes and 2.4 million within 30 minutes’drive). 3.LACK OF DEDICATED INDOOR COURT TOURNAMENT AND TRAINING FACILITIES:Research suggests that unmet demand exists in Mounds View for a quality indoor sports facility that is optimized for youth and amateur sports activity.Outreach and interviews have indicated the lack of facilities in Mounds View and the greater Minneapolis/St.Paul metropolitan area offering a critical mass of indoor courts in one location.Importantly,a new Youth and Amateur Sports Complex in Mounds View would serve residents of other communities surrounding Mounds View that are similarly experiencing challenges with accessing quality indoor training,game and tournament court space. 4.IMPROVED COMMUNITY ACTIVITY SPACE:While optimized to attract youth and amateur sports activities (i.e.,practices, games,tournaments,meets and competitions),state-of-the-industry amateur sports facilities,such as the proposed subject Youth and Amateur Sports Complex,often deliver substantial benefits to local community members through enhancing the rental,practice,programming and alternatives available for sports,recreation,leisure and wellness activities.Local usage and attendance (as opposed to non-local usage and attendance)normally contribute the majority of utilization at comparable indoor sports facilities—positively contributing to the quality of life for local citizens. 5.OPTIMIZED OPERATIONS IN CONJUCTION WITH EXISTING MVCC:Mounds View currently has much of the operational staff and management infrastructure in place to manage additional indoor court space at the MVCC.While there will be additional staffing requirements to manage incremental event activity (e.g.,event sales/service,custodial,operations,etc.),the MVCC can expect to realize some economies of scale with existing staffing levels. 6.HIGH-IMPACT,YEAR-ROUND PRODUCT:Unlike outdoor sports facilities (such as baseball,softball or soccer complexes), hardcourt indoor sports facilities typically have broad-based usage and tend to be highly-utilized year-round,delivering some of the highest returns-on-investment in terms of utilization,revenue and economic impact per square foot.Typical use types for indoor sports facilities offering hardcourt activity space include,but are not limited to: •Basketball •Volleyball •Wrestling •Cheerleading •Dance •Gymnastics•Futsal •Table Tennis•Running / Walking•Fitness / Aerobics•Martial Arts•Pickleball•Weightlifting / Strength Training •Baseball•Softball•Soccer•Lacrosse•Rugby•Field Hockey•Badminton •Open Leisure / Recreation•Public / Consumer Shows•Tradeshows•Special Events•Graduations•Civic Events / Festivals•Before / After School Care Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 52 5 MARKET DEMAND &PROGRAM Facility Concept &Program The purpose of this section is to build off the market demand research,analysis and conclusions related to a potential new Youth and Amateur Sports Complex in Mounds View to evaluate market-indicated facility development options.Recommendations regarding potential facility components and other aspects evaluated in this section are based on the results of the market analysis,including the historical,current and projected demographic and socioeconomic characteristics of the market area,an assessment of existing sports and recreation facilities in the marketplace,characteristics of comparable sports facility developments throughout the country and discussions with potential users of a new Youth and Amateur Sports Complex in Mounds View. Specifically,the following elements represent a target market supportable program and key attributes for a potential new Youth and Amateur Sports Complex in Mounds View inclusive of three additional full-size basketball courts adjacent to the Mounds View Community Center : •CONCEPT:Three additional full-sized (95’x 50’alleys)hardwood basketball courts (total of 5 basketball courts,convertible to 10 volleyball courts)extending from the two existing hardwood courts at the Mounds View Community Center. •INCREMENTAL FACILITY SIZE:Approximately 30,000 gross square feet. •PARKING:Approximately 400 total spaces. Description Quantity Unit Cost Total Hard Cost Detail: Hardwood courts 24,000 GSF $250.00 $6,000,000 Support space 6,000 GSF $275.00 $1,650,000 HARD CONSTRUCTION COST SUBTOTAL $7,650,000 Soft Cost Detail: General Requirements 10%$765,000 Design Contingency 15%$1,147,500 FF&E 5%$382,500 ESTIMATED SOFT COSTS $2,295,000 ESTIMATED TOTAL CONSTRUCTION COSTS $9,945,000 Order-of-Magnitude Project Costs The table below summarizes the order-of-magnitude program cost summary for a new Youth and Amateur Sports Complex in Mounds View.As shown,it is estimated that the total cost (hard and soft costs)to develop the site and construct the Complex is estimated at approximately $9.9 million (in 2022 dollars). While the final project costs could vary based on changes to the building program,timing of the project,recent economic conditions (e.g.,inflation)and other such factors,this cost estimate is useful in determining the appropriate amount of project funding that may be required.Further discussions between stakeholder,local community leaders,project architects and other such individuals will be necessary in order to finalize the building program.This figure does not include any costs related to site acquisition,nor does it consider the highly-volatile steel,lumber and materials costs presently impacting the construction industry nationwide.It is assumed that current construction cost volatility will largely be normalized to pre-pandemic levels by the time that construction services would be contracted/purchased for any new Youth and Amateur Sports Complex in Mounds View. 6 COST / BENEFIT ANALYSIS Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 54 COST /BENEFIT ANALYSIS6 Overview &Key Assumptions An analysis was completed to produce key cost/benefit estimates associated with a potential new Youth and Amateur Sports Complex in Mounds View,Minnesota inclusive of three additional full-size basketball courts adjacent to the Mounds View Community Center.Performance estimates for the Youth and Amateur Sports Complex have been presented over a 20-year projection period. For purposes of this analysis,construction is assumed to commence during 2023 and be completed in 2024,while the first full year of operations is assumed to be 2025.A stabilized year of operation is assumed to occur by the fourth full year of operation (assumed 2028).The assumptions used in this analysis are based on the market research and analysis,past experience with hundreds of similar sports facility projects,local market visits and City and stakeholder-provided data,industry trends,knowledge of the marketplace and use/financial results from comparable facilities.Additional planning (i.e.,site selection,soil and environmental testing,architectural design,etc.)must be completed before more precise estimations of the Youth and Amateur Sports Complex’s ultimate construction and operating costs can be made.Also,upon completion of further planning,revenue and expense assumptions should be updated to reflect changes to the assumptions made herein. These estimates are designed to assist project representatives in assessing the financial and economic effects of a new Youth and Amateur Sports Complex and cannot be considered a presentation of expected future results.Accordingly,the analysis of potential financial operating results and economic impacts may not be useful for other purposes.The assumptions disclosed herein are not all inclusive,but are those deemed to be significant.Because events and circumstances frequently do not occur as expected,there usually will be differences between estimated and actual results and these differences may be material. COSTS (Construction &Operations) Preliminary analyses were completed to estimate order-of-magnitude construction costs and the annual financial operating performance associated with a Youth and Amateur Sports Complex in Mounds View.Construction cost estimates were generated using industry per-unit data adjusted for conditions in Mounds View and cost data of comparable youth and amateur sports facility projects,modified for time and locations. To produce the financial operating estimates,a computer-based model was developed incorporating comparable facility data and the estimated levels of utilization and attendance derived from the market analysis to generate estimates with regard to potential annual facility operations.Revenues including rentals,concessions,advertising and sponsorship revenues,and other such sources were estimated.Expenses including salaries/wages/benefits (including contracted services costs),utilities,maintenance &repair, materials &supplies,insurance,general &administrative,programming and others were estimated.The comparison of revenues and expenses enables stakeholders to evaluate the level of facility-supportable revenues or public subsidies that may be required for annual Youth and Amateur Sports Complex operations. It has been assumed that the Youth and Amateur Sports Complex in Mounds View would be publicly-owned and operated as an expansion of the Mounds View Community Center (MVCC).Figures only represent the incremental annual operations of the MVCC as a result of the development of the Youth and Amateur Sports Complex and do not include construction debt service payments,capital repair/replacement reserve funding or other non-operating income and expenses. BENEFITS (Economic Impacts &Other) The ability of an amateur sports facility to generate new spending and associated economic impact in a community is often one of the primary determinants regarding a decision by a public sector entity to participate in investing in the development and/or operation of such facilities.Beyond generating new visitation and associated spending in local communities,amateur sports complexes also benefit a community in other important ways,such as providing venues for athletic and recreation activities attended and participated in by local community members and drawing new visitation/traffic into target areas. The impact of an amateur sports facility project is maximized when out-of-town athletes/participants and family members or guests spend money in a community while visiting.This spending by visitors represents new money to the community hosting the event. This new money then creates multiplier effects as the initial spending is circulated throughout the local economy. It is important to note that spending estimates associated with the potential new Youth and Amateur Sports Complex only represent spending that is estimated to be new to the Mounds View area (net new spending),directly attributable to the operation (and existence)of the potential new Youth and Amateur Sports Complex. Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 55 COST /BENEFIT ANALYSIS6 Economic Impact Concepts &Methods The investment in a new Youth and Amateur Sports Complex project will be expected to provide quantifiable benefits.These quantifiable benefits often serve as the “return on investment”of public dollars that are contributed to develop the facility project and site.Quantifiable measurements of the effects that facility project could have on the local economy are characterized in terms of economic impacts and fiscal impacts.Direct spending represents the primary spending that would occur as a result of the construction and operations of the Youth and Amateur Sports Complex.Direct spending occurs in three ways: A primary intent of this analysis is to estimate the direct spending that could occur directly at the Youth and Amateur Sports Complex itself,in order to approximate the potential associated tax revenues generated from such spending.The vast majority of Construction and In-Facility Spending will be estimated to occur within the Mounds View area.Additionally,net new impacts will be generated throughout the Mounds View area,primarily relating to Out-of-Facility Spending (i.e.,spending occurring off the Youth and Amateur Sports Complex site by visitors to the Mounds View area on items such as hotels,restaurants,retail, transportation,etc.). From a broad perspective,gross direct spending would flow to various economic entities,including the City of Mounds View, Ramsey County and other applicable municipal government(s),restaurants,hotel operators,retail businesses and other such entities.However,some of the spending that occurs in connection with the ongoing operations of the Youth and Amateur Sports Complex project would not fully impact the local area.As such,reductions must be made to gross direct spending to reflect the amount of direct spending associated with the Youth and Amateur Sports Complex project and site improvements that are considered net new to Mounds View.These adjustments include: CONSTRUCTION SPENDING Construction materials, labor, design and professional fees, and other soft cost spending are generated during the planning and construction of the new Youth and Amateur Sports Complex. IN-FACILITY SPENDING Direct spending is generated by visitors and participants at the new sports facility during the course of annual operations. This spending occurs with respect to both event and non-event items, such as admissions, facility rentals, food and beverage, merchandise, sponsorship and advertising and retail leases. OUT-OF-FACILITY SPENDING Outside the Youth and Amateur Sports Complex itself, additional direct spending is generated in city, county and regional areas by visitors, spectators, attendees, participants, event staff and visiting facility users on lodging, food and beverage, retail, entertainment, transportation and other such items in connection with their visit to the area. LEAKAGE represents the portion of gross spending estimated to occur outside the larger geographic area considered for this analysis (Mounds View).Immediate leakage occurs when initial direct expenditures occur outside the area,such as an out-of-town Youth and Amateur Sports Complex visitor that patronizes a hotel or restaurant located outside of Mounds View.Leakage also occurs when initial local spending is used immediately to pay for goods,services,etc.outside of Mounds View.Examples of this type of secondary leakage include food and beverage profits retained by companies based outside of Mounds View. DISPLACEMENT refers to spending that would have likely occurred anyway in Mounds View without the presence of the Youth and Amateur Sports Complex.Examples of displaced spending would include spending by Mounds View residents in connection with their visit to the new Youth and Amateur Sports Complex site (registrations,food and beverage,retail items,etc.)that would have been spent in Mounds View anyway on other items (e.g.,movies, restaurants,shopping,etc.)if they did not visit the Youth and Amateur Sports Complex site.Another example of displaced spending would include out-of-facility spending by non-local individuals visiting from outside of Mounds View whose primary purpose for visiting Mounds View was something other than visiting or participating in activities at the Youth and Amateur Sports Complex itself,and who would have spent their money in some other form in Mounds View.The concept of displacement is oftentimes referred to as the substitution effect. The flow of gross direct spending is adjusted to reflect only the spending that is considered net new to the local economy (i.e., Mounds View).The resulting spending after all adjustments is referred to throughout the remainder of this analysis as net new direct spending. Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 56 COST /BENEFIT ANALYSIS6 Economic impacts are further increased through re-spending of the direct spending.The total impact is estimated by applying an economic multiplier to initial direct spending to account for the total economic impact.The total output multiplier is used to estimate the aggregate total spending that takes place beginning with direct spending and continuing through each successive round of re-spending.Successive rounds of re-spending are generally discussed in terms of their indirect and induced effects on the area economy.Each is discussed in more detail below. INDIRECT EFFECTS consist of the re-spending of the initial or direct expenditures.These indirect impacts extend further as the dollars constituting the direct expenditures continue to change hands.This process,in principle,could continue indefinitely. However,recipients of these expenditures may spend all or part of it on goods and services outside the market area,put part of these earnings into savings or pay taxes.This spending halts the process of subsequent expenditure flows and does not generate additional spending or impact within the community after a period of time.This progression is termed leakage and reduces the overall economic impact. Indirect impacts occur in a number of areas including the following: •Wholesale industry as purchases of food and merchandise products are made. •Transportation industry as the products are shipped from purchaser to buyer. •Manufacturing industry as products used to service the Youth and Amateur Sports Complex and site,vendors and others are produced. •Utility industry as the power to produce goods and services is consumed. •Other such industries. INDUCED EFFECTS consist of the positive changes in spending,employment,earnings and tax collections generated by personal income associated with the operations of the Youth and Amateur Sports Complex and other related facilities.Specifically,as the economic impact process continues,wages and salaries are earned,increased employment and population are generated,and spending occurs in virtually all business,household and governmental sectors.This represents the induced spending impacts generated by direct expenditures. Indirect and induced effects are calculated by applying the appropriate multipliers to the net new direct spending estimates.The appropriate multipliers to be used are dependent upon certain regional characteristics and also the nature of the expenditure. Generally,an area which is capable of producing a wide range of goods and services within its borders will have high multipliers, a positive correlation existing between the self-sufficiency of an area's economy and the higher probability of re-spending occurring within the region.If a high proportion of the expenditures must be imported from another geographical region,lower multipliers will result. The multiplier estimates used in this analysis are based on the IMPLAN system.IMPLAN,which stands for Impact Analyses and Planning,is a computer software package that consists of procedures for estimating local input-output models and associated databases.Input-output models are a technique for quantifying interactions between firms,industries and social institutions within a local economy.IMPLAN was originally developed by the U.S.Forest Service in cooperation with the Federal Emergency Management Agency and the U.S.Department of the Interior's Bureau of Land Management to assist in land and resource management planning.Since 1993,the IMPLAN system has been developed under exclusive rights by the Minnesota Implan Group,Inc.,which licenses and distributes the software to users.Currently,there are thousands of licensed users in the United States including universities,government agencies and private companies. The economic data for IMPLAN comes from the system of national accounts for the United States based on data collected by the U.S.Department of Commerce,the U.S.Bureau of Labor Statistics and other federal and state government agencies.Data are collected for 440 distinct producing industry sectors of the national economy corresponding to the Standard Industrial Categories (SICs).Industry sectors are classified on the basis of the primary commodity or service produced.Corresponding data sets are also produced for each county and zip code in the United States,allowing analyses at both the city and county level and for geographic aggregations such as clusters of contiguous cities,counties,individual states or groups of states. Data provided for each industry sector include outputs and inputs from other sectors;value added,employment,wages and business taxes paid;imports and exports;final demand by households and government;capital investment;business inventories; marketing margins and inflation factors (deflators).These data are provided both for the 440 producing sectors at the national level and for the corresponding sectors at the local level.Data on the technological mix of inputs and levels of transactions between producing sectors are taken from detailed input-output tables of the national economy.National and local level data are the basis for IMPLAN calculations of input-output tables and multipliers for geographic areas.The IMPLAN software package allows the estimation of the multiplier effects of changes in final demand for one industry on all other industries within a local economic area. Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 57 COST /BENEFIT ANALYSIS6 In addition to the economic impacts that could be generated by the new Youth and Amateur Sports Complex,fiscal revenues could be generated to Mounds View and various other municipal/governmental entities from a variety of sources.In preparing estimates of fiscal impacts,revenues generated to Mounds View from direct,indirect and induced spending were examined.As a focus of this analysis relates to the economic and tax impact within the Mounds View area,the primary fiscal revenues estimated herein are sales and lodging taxes that are estimated to be generated within Mounds View.The net new tax impacts consider reductions for assumed displaced spending within Mounds View,as well as spending that is assumed to occur outside of Mounds View. Although there may be other tax revenues and public sector fees/charges generated as a result of the construction and operations of the new Youth and Amateur Sports Complex,net new food &beverage and innkeeper’s taxes represent the most directly-attributable and relevant sources relating to this analysis. •TOTAL OUTPUT represents the total direct,indirect and induced spending effects generated by the new Youth and Amateur Sports Complex.Total output is calculated by multiplying the appropriate total output multiplier by the estimated direct spending within each industry. •PERSONAL INCOME (EARNINGS)represent the wages and salaries earned by employees of businesses impacted by the new Youth and Amateur Sports Complex.Personal earnings are calculated by multiplying the appropriate personal earnings multiplier by the estimated direct spending within each industry. •EMPLOYMENT is expressed in terms of total jobs and includes both full and part-time jobs.Employment is calculated by dividing the appropriate employment multiplier by one million,and then multiplying by the estimated direct spending within each industry. The multiplier effects estimated in this analysis include: The graphic to the right illustrates key measurements of economic and tax impacts utilized in this analysis.Commencing with the estimation of net new direct spending associated with the Youth and Amateur Sports Complex project,successive rounds of re-spending generate indirect and induced effects.The sum of all this net new spending in Mounds View’s economy represents total economic output.This new economic output,in turn,likewise generates added earnings (personal income),jobs (employment)and tax revenues. In addition to the quantifiable benefits associated with a new Youth and Amateur Sports Complex, there are a number of existing and potential benefits that cannot be quantified.In fact,these qualitative benefits tend to be a critical factor in the consideration of public and private investment in facilities of this nature.These include issues pertaining to quality of life,ancillary economic development facilitation,employment opportunities, community pride,complementing the greater project site and other such items. ECONOMIC OUTPUT Personal Income Employment Taxes DIRECT SPENDING Construction In-Facility Out-of-Facility Business Services Household Spending Governmental Other Sectors Food & Merchandise Transport Company Manufacturers Energy/Utilities The quantitative impact figures do not include economic impact that could be generated by other greater project elements associated with any larger mixed-use project and other ancillary private sector development/investment that may occur as result of the Youth and Amateur Sports Complex development (i.e.,hotels,restaurants,etc.).Some of the impacts associated with the new Youth and Amateur Sports Complex would be quantitatively captured by these other developments and improvements,but substantial additional economic impact could be generated by any new public or private investment that occurs at,or near,the site.The net effect of a calculation of quantified economic impact could hypothetically be several times greater in magnitude (depending on the level of investment and development outcomes that are ultimately realized at,or near,the site). Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 58 Opening Stabilized 20-Year UTILIZATION Year 1 Year 2 Year 3 Year 4 Cumulative LEAGUE TEAMS Basketball 10 12 14 18 342 Volleyball 24 30 36 40 770 Indoor Spring Sports 0 0 0 0 0 Total 34 42 50 58 1,112 LEAGUE GAMES Basketball 80 96 112 144 2,736 Volleyball 240 300 360 400 7,700 Indoor Spring Sports 0 0 0 0 0 Total 320 396 472 544 10,436 TOURNAMENTS Basketball 15 17 19 20 391 Volleyball 9 11 13 16 305 Indoor Spring Sports 0 0 0 0 0 Total 24 28 32 36 696 TOURNAMENT GAMES Basketball 1,000 1,160 1,320 1,360 26,600 Volleyball 360 504 576 672 12,864 Indoor Spring Sports 0 0 0 0 0 Total 1,360 1,664 1,896 2,032 39,464 CAMPS & OTHER RENTALS Basketball 60 72 84 84 1,644 Volleyball 20 32 40 40 772 Indoor Spring Sports 24 24 24 24 480 Private Rentals/Practices/Drop-in 1,500 1,580 1,710 1,790 35,220 Total 1,604 1,708 1,858 1,938 38,116 6 Estimated Utilization A detailed utilization model was developed to consider a large number of variables and inputs to analyze each sport/use for a potential Youth and Amateur Sports Complex in Mounds View.For instance,when considering different types of usage (i.e.,use from local leagues/clubs versus non-local tournaments/meets versus clinics/camps/lessons versus open recreation,etc.), separate assumptions were used to generate usage and attendance (participants and spectators)estimates.The exhibit below presents a summary of key utilization levels associated with a Youth and Amateur Sports Complex in Mounds View,pursuant to the previously outlined facility program and assumptions. COST /BENEFIT ANALYSIS As shown,the primary sources of utilization at a new Youth and Amateur Sports Complex in Mounds View would consist of weekend tournament activity (just over 2,000 annual court hours of usage)and private rentals,practices and drop-in activity (over 1,900 annual court hours).Limited opportunity exists to host league games,primarily consisting of adult basketball and volleyball games,as the in-season model for youth basketball and volleyball is to practice Monday through Thursday and play tournaments on weekends. Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 59 6 COST /BENEFIT ANALYSIS Estimated Attendance The exhibit below presents a summary of estimated attendance levels associated with a potential Youth and Amateur Sports Complex in Mounds View. Opening Stabilized 20-Year ATTENDANCE Year 1 Year 2 Year 3 Year 4 Cumulative LEAGUES Basketball 480 576 672 864 16,416 Volleyball 2,400 3,000 3,600 4,000 77,000 Indoor Spring Sports 0 0 0 0 0 Total 2,880 3,576 4,272 4,864 93,416 TOURNAMENTS Basketball 8,000 9,280 10,560 10,880 212,800 Volleyball 3,600 5,040 5,760 6,720 128,640 Indoor Spring Sports 0 0 0 0 0 Total 11,600 14,320 16,320 17,600 341,440 CAMPS & OTHER RENTALS Basketball 900 1,224 1,512 1,680 32,196 Volleyball 400 704 800 920 17,544 Indoor Spring Sports 432 528 576 624 12,144 Private Rentals/Practices/Drop-in 8,700 9,020 10,340 10,660 209,280 Total 10,432 11,476 13,228 13,884 271,164 SPECTATORS Basketball 18,722 21,834 24,929 25,986 507,240 Volleyball 15,320 20,764 24,088 27,676 530,664 Indoor Spring Sports 216 264 288 312 6,072 Total 34,258 42,862 49,305 53,974 1,043,976 TOTAL ATTENDANCE Basketball 28,102 32,914 37,673 39,410 768,652 Volleyball 21,720 29,508 34,248 39,316 753,848 Indoor Spring Sports 648 792 864 936 18,216 Private Rentals/Practices/Drop-in 8,700 9,020 10,340 10,660 209,280 Total 59,170 72,234 83,125 90,322 1,749,996 Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 60 COST /BENEFIT ANALYSIS6 Financial Operating Projections Many indoor amateur sports facilities of this nature involve public sector funding participation (both in terms of construction and operations).Many similar youth and amateur sports facilities throughout the country operate at an annual financial deficit.Non- operating direct support could come from a variety of sources including public sector support (i.e.,general funds,dedicated tax proceeds,etc.),grants,philanthropy and other such sources. The exhibit below presents a summary of projected annual financial operating results associated with a potential Youth and Amateur Sports Complex in Mounds View,as previously outlined herein.Based on the preliminary analysis,upon stabilization (assumed fourth full year of operation),a Youth and Amateur Sports Complex in Mounds View is estimated to generate a net operating profit of approximately $16,500,before debt service and capital repair/replacement funding.This projected level of operating profit is consistent with other comparable indoor sports facilities throughout the country. Opening Stabilized 20-Year FINANCIAL OPERATIONS Year 1 Year 2 Year 3 Year 4 Cumulative OPERATING REVENUES Rental Income $154,400 $175,500 $208,800 $232,200 $5,609,200 Camps/Clinics $10,400 $13,200 $21,800 $22,200 $543,600 Concessions $103,700 $132,700 $157,400 $177,000 $4,246,100 Advertising/Sponsorship $6,600 $7,600 $8,700 $9,900 $237,400 Subtotal $275,100 $329,000 $396,700 $441,300 $10,636,300 OPERATING EXPENSES Salaries, Wages and Benefits $160,000 $166,900 $174,900 $184,100 $4,507,500 Utilities $65,900 $67,900 $69,900 $72,000 $1,860,500 Maintenance and Repair $27,500 $28,300 $29,100 $30,000 $775,000 Materials and Supplies $16,500 $17,000 $17,500 $18,000 $465,000 Insurance $1,600 $1,700 $1,700 $1,800 $45,500 Concessions $57,000 $73,000 $86,600 $97,400 $2,335,400 General and Administrative $15,000 $17,500 $19,000 $21,500 $519,400 Subtotal $343,500 $372,300 $398,700 $424,800 $10,508,300 NET OPERATING INCOME ($68,400) ($43,300) ($2,000) $16,500 $128,000 It is assumed that the additional courts consistent with a Youth and Amateur Sports Complex would share important operating synergies with existing Mounds View Community Center operations including shared management and staffing,supplies and equipment,support space and other such elements.Should the City of Mounds View or another entity seek to independently develop a multi-court indoor youth sports complex elsewhere in the area,that complex would be expected to operate with a significantly higher expense budget and much lower cost coverage ratio. Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 61 COST /BENEFIT ANALYSIS6 Economic Impacts The exhibit below presents a summary of the annual,and 20-year cumulative total of projected economic impacts generated in Mounds View by the potential new Youth and Amateur Sports Complex.The economic impact estimates additionally assume : •Construction impacts occur during the construction period,prior to the first year of operation—these impacts are shown under the 20-year cumulative estimates.•In-facility impacts are driven by the gross spending occurring at the sports facility itself and represent a percentage of gross operating revenues that are estimated to be net new to Mounds View.•Out-of-facility impacts are generated across a variety of industries within Mounds View by athletes,families and sponsoring organizations that do not reside in Mounds View.Out-of-facility spending by residents who reside in Mounds View is not considered within this analysis,as such spending is assumed to represent displaced spending that would have otherwise occurred locally.Reductions have been made to account for certain spending (i.e.,hotel)that is assumed to leak to areas outside of Mounds View. Opening Stabilized 20-Year ECONOMIC IMPACT Year 1 Year 2 Year 3 Year 4 Cumulative A) Construction Impacts Net New Hotel Room Nights 0 0 0 0 0 Total Attendee Days 0 0 0 0 0 Net New Non Local Visitor Days 0 0 0 0 0 Direct Spending $0 $0 $0 $0 $4,972,500 Indirect/Induced Spending $0 $0 $0 $0 $3,414,209 Economic Output $0 $0 $0 $0 $8,386,709 Personal Income $0 $0 $0 $0 $2,824,243 Employment (full & part-time jobs)0 0 0 0 60 B) In-Facility Impacts Net New Hotel Room Nights 0 0 0 0 0 Total Attendee Days 0 0 0 0 0 Net New Non Local Visitor Days 0 0 0 0 0 Direct Spending $165,060 $197,400 $238,020 $264,780 $6,381,780 Indirect/Induced Spending $113,572 $135,880 $163,824 $182,254 $4,392,605 Economic Output $278,632 $333,280 $401,844 $447,034 $10,774,385 Personal Income $117,001 $139,577 $168,402 $187,259 $4,514,158 Employment (full & part-time jobs)4 5 5 6 147 C) Out-of-Facility Impacts Net New Hotel Room Nights 1,040 1,284 1,467 1,589 30,797 Total Attendee Days 59,170 72,234 83,125 90,322 1,749,996 Net New Non Local Visitor Days 25,411 31,393 35,870 38,832 752,824 Direct Spending $1,674,093 $2,130,297 $2,507,100 $2,795,577 $67,147,691 Indirect/Induced Spending $1,148,028 $1,460,875 $1,719,272 $1,917,098 $46,047,278 Economic Output $2,822,122 $3,591,172 $4,226,372 $4,712,676 $113,194,970 Personal Income $1,160,142 $1,476,289 $1,737,412 $1,937,326 $46,533,143 Employment (full & part-time jobs)37 48 56 63 1,503 TOTAL NET NEW IMPACTS Net New Hotel Room Nights 1,040 1,284 1,467 1,589 30,797 Total Attendee Days 59,170 72,234 83,125 90,322 1,749,996 Net New Non Local Visitor Days 25,411 31,393 35,870 38,832 752,824 Direct Spending $1,839,153 $2,327,697 $2,745,120 $3,060,357 $78,501,971 Indirect/Induced Spending $1,261,600 $1,596,755 $1,883,096 $2,099,353 $53,854,092 Economic Output $3,100,754 $3,924,452 $4,628,215 $5,159,710 $132,356,063 Personal Income $1,277,142 $1,615,866 $1,905,815 $2,124,586 $53,871,544 Employment (full & part-time jobs)41 52 62 69 1,709 Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 62 COST /BENEFIT ANALYSIS6 Summary &Key Projections Based on analysis results,a summary of key cost/benefit projections for a Youth and Amateur Sports Complex in Mounds View, inclusive of three additional full-size basketball courts adjacent to the Mounds View Community Center,associated with its construction and annual operations is presented below (upon stabilization of operations,assumed to occur by the fourth full year of operations). ANNUAL PERSONAL INCOME $2.1M ANNUAL EMPLOYMENT (FULL & PART-TIME JOBS) 69 ANNUAL TOURNAMENT & PRACTICE HOURS 3,970 ANNUAL DIRECT SPENDING $3.1M ANNUAL INDIRECT/INDUCED SPENDING $2.1M ANNUAL ECONOMIC OUTPUT $5.2M+= SUMMARY OF ESTIMATED KEY PROJECTIONS ASSOCIATED WITH A NEW YOUTH AND AMATEUR SPORTS COMPLEX IN MOUNDS VIEW, MINNESOTA (Operating Impacts Reflect Annual Impacts Upon Stabilization, Assumed Fourth Full Year of Operations) ANNUAL NON-LOCAL ATTENDEE DAYS 38,800 ANNUAL ATTENDEE DAYS 90,300 ANNUAL FINANCIAL OPERATING RESULTS $16,500 ANNUAL HOTEL RM NIGHTS 1,600 CONSTRUCTION ECONOMIC IMPACT $8.4M CONSTRUCTION COSTS $9.95M Feasibility Study of a Potential New Youth and Amateur Sports Complex in Mounds View, Minnesota ●Page 63 Qualitative Impacts /Other Benefits In addition to the more quantifiable benefits,some benefits related to the construction and operation of a Youth and Amateur Sports Complex in Mounds View cannot be quantitatively measured.Beyond the economic activity and jobs indirectly provided, these types of non-quantifiable impacts of a project of this nature and scope can serve to elevate Mounds View’s profile and brand as a youth and amateur sports destination and as a quality place to live,work,learn and play. In fact,these qualitative benefits tend to be a critical factor in the consideration of public and private investment in projects of this nature,particularly those involving a major investment in community assets and infrastructure.These include issues pertaining to quality of life (through accommodating local events that would otherwise not be able to visit Mounds View itself), ancillary economic development facilitation,employment opportunities,community pride and other such issues. Potential non-quantifiable benefits could include: •Potential Transformative and Iconic Effects –High profile sports facility projects,like the proposed Youth and Amateur Sports Complex,can have extensive,long-lasting transformative impacts on the Mounds View community and destination,in terms of quality of life,community prestige,perception by visitors and non-locals and other such effects. •Quality of Life for Residents –New/enhanced sports,recreation and special event facilities provide diversified activities for local residents and families,which can make Mounds View a more attractive and enjoyable place to reside.Quality public assembly facilities can contribute to enhancing community pride,self-image,exposure and reputation.All these items can assist in retaining and attracting an educated workforce,particularly younger adults who often desire quality sports, recreational,meeting,entertainment,cultural and leisure amenities. •Additional Programmable Space for Mounds View Community Center –While additional courts are expected to provide a direct benefit to indoor youth and amateur sports programming,the additional court space provides important programmable space for daytime community activity such as before/after school childcare,daytime summer youth programming and daytime community health and wellness space (e.g.,pickleball,ping pong,wellness classes,etc.). •New Visitation –New visitors will be attracted to the area because of an athletic tournament,meet,competition,clinic or camp.These attendees,in turn,may elect to return to the area later with their families,etc.for a leisure visit after visiting the area for the first time. •Spin-Off Development –New retail/business tend to invariably sprout up near major new sports and event facility developments,spurred by the operations and activities associated with the facilities,representing additions to the local tax base.Enhanced economic growth and ancillary private sector development (or improvement)surrounding the ultimate site for a Youth and Amateur Sports Complex in Mounds View may be spurred by the investment in the project •Anchor for Revitalization –Major sports facility and other tourism facility developments can oftentimes serve as an anchor for larger master plans and revitalization efforts.Indoor sports facilities,like the proposed project,can attract consistent levels of annual attendees,particularly those with disposable income.This added visitation to an area or district can be critical to the health and vitality of existing nearby businesses,as well as providing the incentive for future investment by the private sector in business improvements and expansions. •Other Benefits –Increased synergy with the other athletic,event,hospitality and entertainment facilities can lead to increased visitation to Mounds View and recognition of the community as a desirable place to reside. COST /BENEFIT ANALYSIS6