2016-326-E Visitors Bureau - Conventions Sports & Leisure for feasibility study of potential new convention center, etc. in OC

Browse Search

DocuSign Envelope ID: 137AC14B-6250-4081-9084-0BF0B086A047 Ms. Laurie Paolicelli June 3, 2016 Page 8 of 13 • hotel requirements; • parking requirements; and, • seasonality data. We will identify the event markets that represent the primary sources of demand for a potential new visitor-oriented event facility. We will then assess the potential penetration of these markets to estimate event levels, attendance levels and other primary characteristics by type of event/activity. These estimates will form the basis on which we will evaluate various development options for the new visitor-oriented event facility, their ability to accommodate demand and fill areas of need in the market, as well as the potential financial and economic impact parameters of facility operations. Task 4. Potential Cost Analysis The purpose of this task is to synthesize findings of the previous tasks to identify and estimate upfront and ongoing costs associated with potential convention center/public assembly facility or other visitor- oriented development options. Based on the program information, local cost characteristics and other relevant features, we will provide preliminary cost and construction time table estimates for the outlined visitor-oriented event facility development scenarios. The cost estimates will focus on per-unit data adjusted for conditions in the Orange County area and cost data of comparable facilities modified for time and locations. The estimates will focus on the building programs and development scenarios developed in previous study tasks. These estimates will be useful for framing an overall discussion on project cost if the project gathers support for an implementation phase. Additionally, we will analyze the financial operating and other cost characteristics of the potential new Orange County visitor-oriented event facility. Based on the results of the market demand, market supportable development analysis and event levels research and analysis, we will prepare a financial operating analysis for the potential new visitor-oriented event facility. We will present financial operation projections for the scenarios previously identified as being market supportable. Specifically, we will develop a computer-based model incorporating comparable facility data and the estimated levels of event utilization and attendance derived from the market analysis in order to develop estimates with regard to facility operating revenues and expenses. Revenues including rental, food service, event service, parking, advertising and sponsorship revenues, and other such sources will be estimated. Expenses including salaries (permanent and event driven staff costs), utilities, maintenance, supplies, insurance, contract service costs and others will be estimated. Further, we will work with you to develop other non-operating revenue and expense assumptions in order to provide initial estimations of overall costs associated with the project(s). We will present estimates of financial performance for visitor-oriented event facility operations for ten years. The comparison of revenues and expenses will enable you to evaluate the level of facility- supportable revenues or public subsidies that may be required for annual facility operations. Task 5. Evaluation of Ownership I Management Options The purpose of this task is to evaluate options for the ownership of the potential visitor-oriented event facility and to suggest appropriate key operating policies to ensure any facility developed serves as an economic development tool for the County and surrounding community. In many communities, a partnership with existing or planned lodging facility ownership is created to secure the necessary facilities. This creates important efficiencies; however, the importance to structure a development,