A Catalyst Development Project for High Point

A Public Private Partnership for aMulti Purpose Stadium and

Mixed Use Development

Randy Hemann – Assistant City Manager for Community ServicesSims Hinds – Vice Chairman, Forward High Point

Eric Olmedo – Budget Director

Create a downtown catalyst project that produces:500 private sector jobs15-20 new restaurants and shops250 additional residential housing unitsA centralized gathering space

City Council Goal:

Receive Sports and Entertainment Facility report – accept and approve, determine ownership and financing

Short Term Goal:

Its not about baseball…

Its about development and our future…… it has been development driven from the beginning….

Developers…

• Blue Ridge Properties• Wynnefield Properties• Willard-Stewart Inc.• My Niche Properties • Kotis Properties

• The Carroll Companies• Lomax Properties LLC• Samet Properties, LLC• Sidewalk Development• Garfield Public/Private

• A project that pays for itself over time through project income and increased tax base

• A project that “jump starts” our Core City economy and helps spur the creation of a vibrant downtown

• A project that creates a downtown with 365 days-a-year activity• A project that includes all the elements required for success

when it is presented to City Council

Staff Goals

• An Experienced Development Team• A Downtown Development Corporation – Randy Hemann• A Team Partnership – Sims Hinds• A Feasible Stadium Operation (CS&L Report) – Sims Hinds• Site Control – Randy Hemann• Financing – Randy Hemann & Eric Olmedo

Elements Required for Success

Forward High Point Board/Staff • Bill Bencini• Randy Carda• Tony Collins• Tom Conley• David Congdon• David Covington• Greg Demko• Doyle Early• Patrick Harman• Randy Hemann• Sims Hinds

• Rev. Kinston Jones• Buck Kester• Barry Kitley• Jordan Lessard• Mike McNair• Clark Pierce• Taylor West• Jim White• Ashley Davis Williams• Chris Williams

Ray GibbsExecutive Director

• Atlantic League• Professional Baseball• 40% of players have played in the major leagues• Team available• League approval for expansion to High Point• Team ownership group being finalized

Team Partnership

Stadium Feasibility - Estimated Utilization

• Market – 230,000+ south of the middle of HP• Atlantic League Average Attendance: 4,184• Worst Team in League Attendance: 2,916• Our Atlantic League Attendance Assumptions: 2,500• Coastal Plains League Average Attendance: 1,319• Thomasville High Point Average Attendance: 1,042• Our Coastal Plains League Attendance Assumptions: 1,000• 74 Other Events (other sports, concerts, festivals,

banquets) totaling 33,250 in attendance

Stadium Feasibility – Attendance per Game Assumptions

Stadium Feasibility – Building Program

Stadium Feasibility -Building Program andCost Estimate

Stadium Feasibility - Ancillary Development Assumptions

A Total of $99 Million in Cumulative Development is Assumed

• Team(s)/Operators(s) annual lease payment to City: $500,000 yr.• Annual Facility Fee Surcharge (on ticket): $700,000 • Annual Parking Surcharge (on ticket): $400,000• Revenue from new development: Ranges from $375,582 in 2020 to

$967,391 in 2038• Naming Rights: $3 million (for 10 years)• Team(s)/Operators(s) responsible for operating costs

Stadium Feasibility – Income Assumptions

Revenue from new developmentValues increase from $805 Million to $904 Million

FinancingRevenue Target Area

Revenue Target Area

• Current Tax Value Revenue Target Area: $805+ million• Increased Value from New Development: $ 99+ million• New Value in Revenue Target Area: $904+ million

• Funds from increased Tax Value of New Development ($99 million that will not occur without the development of the Stadium) will be used to help pay for Stadium

Revenue from Increased Property Value

Project Plan of Finance

Catalyst Financial Plan

• Three Sites under consideration• Some property has been optioned at all three sites by FHP• Some sites were more difficult to assemble and more costly• Site selection was guided by potential development as well as

availability of parcels• Our preferred site includes land for the stadium as well as some

of the anticipated development

Site Control

Stadium & Development SitesPRIVATE DEVELOPMENT SITES

FHP DEVELOPMENT SITES

MULTI USE STADIUM & DEVELOPMENT SITES

$16.5 - $22 million

$70 - $91.5 million

$12.5 - $18.5 million

$41 - $51 million

$3 - $6million

$4 - $7million

$10 - $16million

$3 - $6million

80%+ Under Option

$20 - $35 million

Main Street Station

Mixed Use Development32,000 SF Retail/Restaurant/Professional20,000 SF Class A Office120-150 Residential UnitsTotal Value: $16,500,000 to $22,000,000

• Total one-time net new construction spending - $30+ million • Construction will create 137 new full-time equivalent jobs with $6

million in personal earnings• Over 30 years the stadium will generate an estimated $708 million

in total consumer spending• Operations will support 708 new full time equivalent jobs in the

Core City• These new jobs are estimated to generate personal earnings of

$267 million in net present value dollars over a 10 year period

Stadium Economic Impact

*Based on Convention Sports and Leisure Report

Achieve the City's goal of:500 private sector jobs15-20 new restaurants and shops250 additional residential housing unitsA centralized gathering space

Without a tax increase…

Opportunity for the City

Project Timeline…

• Approve a Budget Amendment for use of reserves and internal loans to proceed with land purchases, site design and Multi Use Stadium design with a total cost not to exceed $15 million

Next Steps – Initial Project Budget

Land Acquisition Funding

• Authorize the Manager to proceed with land purchases, site design and Multi Use Stadium design with a total cost not to exceed $15 million

Next Steps – Land Purchase

• Authorize the Manager to seek County participation regarding increased tax base

• Authorize the Manager to proceed with development of Multi Use Stadium financing plan

• Authorize the Manager to develop an Agreement with Forward High Point regarding their coordination of design and private development for the site

• Authorize Forward High Point to finalize Team Ownership and Naming Rights for Multi Use Stadium

Next Steps - Operational