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2	A Dynamic Sports and Entertainment Complex In the Heart of the City to make
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4	A Vision For The Future
5	A Vision For The Future
6	A Vision For The Future
7	The Situation Downtown Deteriorating industrial core area Retail and Service business moving away Disables Wichita from presenting “first-class” image Is not conducive for attracting visitors, new businesses, site selection committees, or the citizens in our own community
8	This Deteriorating Industrial Core Area is Surrounded by Major financial, business and professional firms Successful attractions and amenities created by public-private partnerships
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10	Plus The Other Museums on the River Mid-America All Indian Center Old Cowtown Botanica Gardens Wichita Art Museum All made more accessible by the Kellogg Expressway which was funded by citizens - imposed sales tax to relieve traffic congestion
11	Doesn’t it make sense to turn this into a valuable asset? Income and Job Producing Increased Tax Revenues Tying and Connecting all of our Attractions Together
12	That was the challenge to the Greater Wichita Area Sports Commission! Mission: To promote, attract and support a variety of sports programs and other special events.
13	In 1998 The Sports Commission Decided to study Long-range utilization of existing facilities General interest and support for such a facility Design and cost of construction Support of city and county governments Wichita State University’s involvement Management of existing facilities and a new facility for sports and entertainment Financial instruments, their availability and feasibility
14	Feasibility Committee A Feasibility Committee, comprised of members of the Sports Commission and other individuals knowledgeable in relevant areas, formed three sub-committees to address the seven issues Design, Location and Cost Interest, Support and Finance Utilization and Management
15	Design, Location and Cost Sub-committee The sub-committee considered eight different locations in downtown Wichita. Several factors were considered in recommending a site for an arena: Ingress and egress Ample parking Land area and cost Proximity to new and existing support facilities Environmental Displacing businesses/residents
16	Utilization and Management Sub-committee This sub-committee identified potential utilization for the Sports and Entertainment Complex. The capital needs of the Kansas Coliseum for renovations to become ADA compliant. Possible management entities for both a Sports and Entertainment Complex and the Kansas Coliseum have been identified.
17	Interest, Support and Finance Sub-committee This sub-committee explored interest within the community regarding a downtown arena. Fifteen (15) of the city’s major companies supported pursuing the feasibility of a downtown facility Most offered financial assistance for the study. Some city and county officials were invited to serve. They also focused on the capability and methods of financing a downtown area. The sub-committee was also charged with identifying an appropriate entity to oversee construction of the new facility and the operation of both the new complex and the Kansas Coliseum
18	The 1998 KPMG Impact Study This KPMG Peat Marwick feasibility study estimated economic and tax revenue benefits that could accrue to the local community and the State of Kansas from construction and ongoing operations of a Sports and Entertainment Complex, including such tangible and intangible benefits as: Enhancing the area’s image as a business and sports community; Receiving state and regional exposure through media coverage; Providing a first-class entertainment venue to area residents; Generating economic benefits and new tax revenues for local/state governments.
19	Other Committee Activities Harrow Sports Ventures Retained - May, 2001 HSV presents committee with 14 step plan Committee reviewed case histories in communities with similar demographics
20	Other Committee Activities Successfully obtained private funding of $496,000 for marketing /communications budget AppointedAssociated Advertising Agency, Inc. to serve as communications agency on a pro-bono basis Awareness Campaign launched Feb. 8-24, 2002 Prepared a comprehensive marketing/communications plan McLaughlin & Associates Survey - July 30-Aug 1, 2001
21	Survey Summary McLaughlin & Associates 81.1% positive quality of life in Sedgwick County. 55.7% say downtown needs to be revitalized. 50.4% to 41.3% ratio approved of using public funds to redevelop Wichita. 61.9% prefer “pay as you go.” Only 20.3% favored a bond that would continue to use public funds for 20-30 years after it was built.
22	Survey Summary McLaughlin & Associates Voters are more likely to support a Regional Events Center knowing: It would improve the local economy and attract new business and jobs. It would create a thousand jobs during construction and about the same amount of jobs following construction. It would bring family-oriented shows. It would allow for a property tax reduction to homeowners It would allow for a senior citizen rebate.
23	McLaughlin & Associates Survey Summary - July 30 to Aug 1, 2001 “How often would you say you visit downtown Wichita?”
24	McLaughlin & Associates Survey Summary - July 30 to Aug 1, 2001 “Would you say that downtown Wichita needs to be redeveloped?”
25	McLaughlin & Associates Survey Summary - July 30 to Aug 1, 2001 “What is the single most important reason to you to redevelop downtown Wichita?”*
26	McLaughlin & Associates Survey Summary - July 30 to Aug 1, 2001 “What is the single most important reason you oppose redeveloping downtown Wichita?”
27	KWCH Channel 12 Survey - February 11, 2002 Question 2: Sports Arena/All Adult Respondents “Do you support or oppose the construction of a sports arena in downtown Wichita?”
28	Case Studies Bakersfield, CA - Bakersfield Arena Des Moines, IA - Iowa Events Center Little Rock, AR - Alltel Arena Moline, IL - Mark of the Quad Cities Oklahoma City, OK - Metropolitan Area Project Strategies (MAPS) Omaha, NE - Metropolitan Entertainment and Convention Center
29	Case Studies Bakersfield, CA - Bakersfield Arena (opened 1998) MSA: 661,645 (#65) Capacity: 10,000 fixed seats 24 suites 989 club seats Financing $30 million total budget $30 million in Certificates of Participation (COPs) issued by the Redevelopment Agency 80% of annual debt service to be paid by the city 20% of annual debt service to be paid by the Redevelopment Authority
30	Case Studies Des Moines, IA - Iowa Events Center (ground breaking fall 2001) MSA: 456,002 (#91) Capacity: 16,000 fixed seats 36 suites 500 club seats Financing $201 million total budget $92 million for the arena - no soft cost $106 million in General Obligation Bonds issued by Polk County, additional funds from local casino revenue may offset tax needs $50 million in Vision Iowa Grant $15 million forgivable loan from Vision Iowa
31	Case Studies Little Rock, AR - Alltel Arena (Fall 1999) MSA: 583,845 (#74) Capacity: 18,000 fixed seats 24 suites 3,000 club seats Financing $68 million total budget $31 million Pulaski County, one-year, one-cent sales tax increase $20 million grant from the State of Arkansas $10 million sale of premium seating $7 million from the sale of Naming Rights
32	Case Studies Moline, IL - Mark of the Quad Cities (Fall 1993) MSA: 359,062 (#116) Capacity: 12,000 fixed seats / 15 suites Includes exhibit space and is adjacent to a public/private partnership which includes a 163 room hotel, TGI Friday’s restaurant and the new John Deere Visitors Center. Financing $36 million total budget $27.9 million grant from the State of Illinois $6.1 million General Obligation bonds issued by the City,one-cent City sales tax $2 million from various corporate gifts
33	Case Studies Oklahoma City, OK - Metropolitan Area Project Strategies (MAPS) (completion early 2002) MSA: 1,083,346 (#49) Capacity: Includes nine facilities: new 20,000 seat arena, library/learning center, mass transit, Southwestern Bell Ballpark, fairgrounds improvement, canal development, recreation facilities, civic center music hall and Myriad Convention Center. Financing MAPS funded by a temporary one-cent sales tax approved by city voters in Dec. 1993. The tax expired in July 1, 1999. During the 66 months the tax was in effect, over $309 million was collected. Approximately $47.5 million in accrued interest revenue is also being utilized for MAPS construction. The arena portion of the project is $87.7 million.
34	Case Studies Omaha, NE - Metropolitan Entertainment & Convention Center MSA: 716,998 (#61) Capacity: 14,500 fixed seats 32 suites, Club seats to be determined 5,300 parking spaces Financing $281 million total budget $198 million in General Obligation Bonds, to be paid by existing taxes and tax revenue generated by the facility. $86 million in private contributions $8 million gap (assumed to be paid by Naming Rights and major sponsorships)
35	Wichita Area Metropolitan Statistical Area 2000 MSA: 545,200 (#78)
36	Metropolitan Statistical Area Wichita - Largest City in Kansas
37	Major Arenas without Division I Basketball
38	The Committee Report on Why We Need A Dynamic Sports and Entertainment Complex in the Heart of the City!
39	Why We Need The DynaPlex 1. A dynamic complex to enhance the quality of life in Wichita Attract popular concert tours, family shows, regional sporting events, exhibition games, educational events, graduations, religious conferences and other attractions for which we could not otherwise compete or who automatically leap frog Wichita. Let us bid on events like NCAA Regional Tournaments
40	Why We Need The DynaPlex In Addition: A home for the Wichita Thunder Ice Hockey and Wichita Stealth Arena Football Attract other professional indoor sports teams to Wichita. Positively promote Wichita and our other attractions. It would be a showplace of which we could be duly proud.
41	Why We Need The DynaPlex 2. This complex would have a dynamic effect on the revitalization of downtown It will have a synergistic effect upon downtown revitalization that we have been talking about for years. It would support existing business and investments already in the downtown area. New retail shops, restaurants, other businesses, and service opportunities will naturally be developed. It will open the opportunities for major hotels to be added to downtown. It will bring people back to downtown and with people will come more businesses.
42	Why We Need The DynaPlex 3. It will have a dramatic economic impact upon Wichita It will provide economic strength to the community. It will create jobs both during construction and for operation of the facility along with increased employment in new businesses attracted to the area. It will also increase tourism and thus revenue for the city. It will be a great asset to recruit key employees. It will increase tax revenue for the city.
43	Why We Need The DynaPlex 4. To bring together, to promote and to better utilize all of Wichita’s attractions Combined with all these attractions, Wichita would be able to offer the finest sports and entertainment complex, convention facilities, cultural, educational, historical and social attractions of any city in the Midwest. It would put us on the map regionally where people can come and enjoy all of the amenities that Wichita offers.
44	Why We Need The DynaPlex 5. It will give Wichita a First Class Image that can compete with other cities such as Oklahoma City, Kansas City, Des Moines and Little Rock which have aggressively constructed and promoted facilities such as this To not finish this project could relegate Wichita to a “third tier” city status. It comes at a time when we need to provide more job opportunities. The time to do it is now when bond rates are at a historic low. We need to do it now so we can enjoy the benefits sooner.
45	The Kansas Coliseum- How does it fit in? 1. The Kansas Coliseum does not meet the need of Wichita for a quality sports and entertainment facility. It is a 24-year old facility that was originally designed for agricultural and related events. It has not had any extensive upgrades since that time. It does not have the capacity to attract NCAA events or major exhibition events which require a minimum of 12,000 seats and nearby hotels. It does not have the capacity to attract many concert tours or family show. It is not ADA compliant and its construction is not conducive to solve the problems with stairs, restrooms and concourses to handle crowds at breaks.
46	The Kansas Coliseum- How does it fit in? It is not easily accessible from the city. The Kansas Coliseum and Sedgwick County has developed plans for upgrading the Coliseum at a cost between $60 and $100 million. It still would not meet the needs of major customers and capacity needs. The costs of these modifications would then involve a mill levy increase on property taxes county wide.
47	The Kansas Coliseum and the Wichita DynaPlex would come under the jurisdiction of a Wichita Sports and Entertainment Authority Will report to the City Council to develop, operate and maintain spectator sports and entertainment facilities The Kansas Coliseum will work in harmony with the new Sports and Entertainment Complex The mission of the Kansas Coliseum will be redefined to primarily host agricultural related events such as horse shows, rodeos, tractor pulls, dog shows and and events where substantial flat floor space is needed. The Kansas Coliseum will be upgraded to be ADA compliant, which will be funded by this initiative. The Wichita DynaPlex will fund any losses incurred by the Kansas Coliseum.
48	The Kansas Coliseum complex will be leased to the Sports and Entertainment Authority This lease will be for a period not less than 50 years. The lease will also include all fixed and movable assets and motor pool equipment currently allocated to the Kansas Coliseum This lease will include the Britt Brown Arena and all Pavilions.
49	Scope of the Wichita DynaPlex Project Seating 1. Hockey - 15,000 seats 2. Basketball - 16,000 seats 3. Concert (center stage) - 17,000 seats 4. Concert (end stage) - 15,000 seats Premium Seating 1. 24 Suites located at mid-level 2. 24 Future Suites located at mid-level 3. Club lounge
50	Scope of Project Food and Retail Facilities in the Wichita DynaPlex Food and Retail Facilities 1. Club/restaurant 2. Deli 3. Kitchen/Commissary 4. Pantries -Suites / Future Suites -Club lounge -Vendor rooms 5. Concessions (easy access at two levels) 6. Retail Stores -Stores -Kiosk locations -Shops -Memorabilia -Museum 7. Convenient and adequate rest rooms 8. Circulation - two concourses 9. Sports Medicine/Training Room 10. Strength Training 11. First Aid 12. Lost and Found 13. Customer Service 14. Arena Management Offices 15. Team Offices 16. Box Office 17. Ticket Windows 18. Media Workroom 19. Media Interview Room 20. Control Room 21. Building Staff Offices and Lockers 22. Event Storage 23. General Building Storage 24. Dock and Staging Areas 25. Mechanical/Electrical Spaces and Ice Support
51	Scope of Project - Availability of Parking 12,185 parking spaces are available in adjacent areas including 2500-3000 new on site parking locations at the DynaPlex facility — 5,033 public parking — 1,488 leased spaces — 3,164 customer spaces — 2,500 undesignated spaces This basically exceeds the recommendations of one parking space for each three seats
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53	Budget Summary for the Wichita DynaPlex and renovation of the Kansas Coliseum - February 7, 2002 Hard Construction Cost structure, finishes, mechanical, electrical, etc. Soft Cost and Development legal, design, financing, data/phone, etc. Land Acquisition purchase, environmental, demolition, infrastructure, etc. Site Development parking, utilities, landscape, hardscape, etc. FF&E scoreboard, equipment, concessions, furniture, etc. Contingency & Escalation Total Construction Budget Kansas Coliseum Renovation GRAND TOTAL
54	Preliminary Design Schedule as of January 29, 2002 TASK COMPLETION General election for Wichita Sports and Entertainment Complex May 21, 2002 Design Complete August 1, 2003 Construction Complete November 1, 2005
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59	Location - Wichita DynaPlex Site Evaluation The Feasibility Committee initially examined 20 tracts of land in the downtown area as the potential site location of the new Sports and Entertainment Complex. This was then reduced to eight locations, and then to the final three as shown on the aerial photo of the downtown area.
60	Location - Wichita DynaPlex Site Evaluation Site Evaluation Criteria Access from all directions Ample parking Proximity to restaurants and supporting facilities Link between downtown and Century II Land area costs Minimal Displacement of business/residences
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62	Location - Site A PROS Within walking distance of Old Town Good access from all directions Ample public parking Good link between Old Town and Century II Does not block east/west streets CONS Access to lodging Some displacement of businesses
63	Location - Site B PROS Within walking distance of Old Town Good access from all directions Access to lodging Centrally located CONS Poor proximity to Old Town Displacement of businesses difficult Limited public parking Requires blocking of north/south streets Limited land area
64	Location - Site C PROS Good proximity to Century II Large portion of land owned by city Good proximity to lodging River frontage CONS Some displacement of businesses Overloads parking adjacent to Century II and requires structured parking Poor proximity to Old Town Limited access from west High development costs
65	Utilization and Event Analysis Projections Almost every area affecting the utilization has been explored and evaluated to see if it can be economically justified. This includes: The impact it would have on events that normally come to the Kansas Coliseum The effect of the Roundhouse Renaissance at WSU Analysis showed: Worst case - 66 events Break even - 70 events Best case - 133 events
66	Utilization and Event Analysis Projections First Year of Operation Number of Events 101 Paid attendance 567,000 Operating revenues $2,385,615 Other income expense $1,986,289 Operating expense-DynaPlex $836,866 Operating expense-Kansas Coliseum ($208,869) Total Net Operating Income $627,997
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68	Utilization and Event Analysis Projections We have identified 118 events that we could attract when the Wichita DynaPlex is completed Concerts 26 Boxing/Wrestling 7 Comedy Tours 4 Family Shows 6 Expos 5 Music Theatre/Broadway Musicals 12 Christian Events/Educational Meetings 9 Trade Shows 12 Sporting Events 20 Other Events 17 TOTAL 118
69	Economic Impact of the Wichita DynaPlex and the immediate Project Area adjacent to the Complex Site for a 10-year period (2005-2015) The KPMG (Peat Marwick) Economic and Fiscal Impacts Analysis updated March 4, 2002 KPMG updated their 1998 report based on the current concept, proposed operations, utilization and maintenance of the project as presented in this report. Their report details the potential economic and fiscal benefits which could accrue to the City of Wichita and the State of Kansas from the construction and ongoing operation of the proposed DynaPlex Sports and Entertainment Complex.
70	Economic Impact of the Wichita DynaPlex and the immediate Project Area adjacent to the Complex Site for a 10-year period (2005-2015) Impacts from DynaPlex operation Ongoing $29,256,000 annually 10 years $292,256,000 Impacts from DynaPlex construction One Time $111,370,000 Generation of new Sales/Use Tax Ongoing $1,979,000 annually 10 years $19,790,000 Employment During Construction 1260 Ongoing annually 530
71	Economic Impact The Project Area Impact Report (not included in KPMG Analysis) The following reflects the economic benefits for a 10-year period from the redevelopment of an approximately two block area immediately adjacent to the proposed site, using Site A for this analysis for a conservative estimate. The estimates in the Project Area Analysis are based on actual historical results using the Old Town Area as a model. Impacts of additional direct development $100,000,000 Impacts of construction spending $160,000,000 Sales/Use Tax $104,000,000 Property Tax $27,430,000 Employment not estimated
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73	Combined Economic Impact of the DynaPlex and Immediate Project Area – Ten-Year Period Economic Spending Benefits KMPG Analysis (DynaPlex project) $292,253,000 Project Area Report (Surrounding Area) $100,000,000 $392,256,000 Generation of New Sales/Use Tax KMPG Analysis $19,790,000 Project Area Report $104,000,000 $123,790,000 New Construction KMPG Analysis $111,370,000 Project Area Report $160,000,000 $271,370,000 Property Tax KMPG Analysis none Project Area Report $27,430,000 $27,430,000 Employment KMPG Analysis 1260 Project Area Report 530 not estimated