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

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DocuSign Envelope ID: 137AC14B-6250-4081-9084-0BF0B086A047 Ms. Laurie Paolicelli June 3, 2016 Page 9 of 13 marketing and operational agreement is very critical to protecting the needs of community. Conversely, publicly-developed project(s) could be pursued, with more of a loose operational agreement with area lodging properties, perhaps focusing on food and beverage service. A key component of the analysis will focus on the various means of facility ownership and guidance. In addition, the study will address options for day-to-day issues of the facility (or facilities), including how the facility could be operated and marketed. We will evaluate operating and marketing relationships with public and private entities. In conducting this task, we will evaluate ownership and management structures at comparable facilities throughout the country, and provide specific pros and cons to every model analyzed. At the conclusion of the analysis process, we will develop findings and recommendations as to how the CHOCVB, County and community should proceed in order to protect its priorities and to best integrate efficiencies that may be available through a partnership with a local hotel or other private entities. Task 6. Economic Impact and Cost/Benefit Analysis In this final task, we will estimate the economic and fiscal (tax) impacts associated with the operation of a new visitor-oriented event facility in Orange County. The operation of such a facility typically attracts some level of out-of-town event delegates to the community. The non-local delegates brought into the community by convention center operations represents the basis for added local economic and fiscal impacts. As part of this analysis, we will develop estimates of total incremental out-of-town delegates to the Orange County area generated as a result of a new visitor-oriented event facility. We will then apply appropriate per-delegate spending estimates using industry data adjusted to the local area. The resulting delegate spending levels will be segmented by industry and applied to economic impact multipliers. The multipliers, specific to Orange County and provided by leading input/output multiplier models, will be used to estimate total economic output, earnings and employment generated as a result of each of the supportable development options identified. From these economic impact variables, we will apply appropriate local, regional and statewide tax rates to estimate the added tax revenue generated as a result of the project in order to estimate ten years of Hotel Occupancy Tax collections as generated by the identified supportable development options. The completion of the economic and fiscal impact analysis will allow for a comparison of key costs and benefits associated with the development and operation of a new visitor-oriented event facility. If more than one program scheme and/or project concept was previously developed, costs and benefits will be comparatively evaluated to allow project stakeholders and the community to assess issues related to return on investment. Professional Fees and Expenses Total professional fees for any engagement will depend on the number of hours required to complete the project and skill levels of the assigned personnel. Professional fees and out-of-pocket expenses associated with the scope of services outlined herein will not exceed $55,000. This fee and expense figure assumes three person-visits by CSL project leaders. Professional fees and out-of-pocket expenses will be billed and are payable on a monthly basis.