TENNESSEE STATE FAIRGROUNDS MASTER PLAN PHASE 1 FINDINGS February - PowerPoint PPT Presentation

TENNESSEE STATE FAIRGROUNDS MASTER PLAN – PHASE 1 FINDINGS February 21, 2013

Presentation Outline 1. Introduction & Methods 2. Facility Condition Assessment 3. Existing Fairgrounds Operating Performance 4. Comparable Fairgrounds Benchmarking 5. Market Demand Analysis 6. Supportable Program & Operating Issues 7. Potential Concepts by Scenario 8. Economic Impacts & Costs

Phase 1 Purpose “A forward-thinking effort to protect and enhance the long-term viability of the Fairgrounds for the benefit of Nashville and the state of Tennessee.”

Phase 1 Objectives Recommend a Fairgrounds market supportable program and analyze several potential development scenarios, with the end purpose of identifying a solution that considers industry best practices and enhances the long-term financial and economic impact-generating performance of a Fairgrounds complex in Davidson County.

Tennessee State Fairgrounds 9 1 2 10 3 7 8 16 4 5 1 Creative Arts Building 13 12 2 Annex Building 6 3 Exhibitor's Building 4 Banquet Building 5 Agriculture Building 6 Vaughn Building 11 7 Wilson Hall 8 Judging Arena 14 9 Sports Arena 10 Grandstand 11 Rabbit Barn 15 12 Shed 2 13 Shed 3 14 Shed 4 15 Shed 5 16 Pulling Shed

Facility Condition Assessment 1. Most structures in fair condition; some better, some worse 2. Little HVAC maintenance has been performed 3. There are no HVAC controls 4. Roofing condition is questionable; further analysis required if buildings remain 5. Door air curtains not easily controlled 6. All facilities have cosmetic needs (paint, flooring)

Facility Condition Assessment 7. Little to no sustainability measures in place 8. Steel structures on sheds are oxidizing 9. Wi-Fi is available in all buildings 10. Some areas of wooden structure have rotted 11. Concessions graphics are dated 12. Phone and electrical service are typically provided without taxing the system

Facility Condition Assessment The Annex Vaughn Building Volunteer Village

Facility Condition Assessment Wilson Hall Perimeter Fencing CARTS Grandstand Men’s Room

Sample of Fairgrounds Events PRIMARY TENANTS PUBLIC / CONSUMER SHOWS • Tennessee State Fair • Bill Goodman’s Gun and Knife Show • Nashville Flea Market • American Gem Expo • Fairgrounds Speedway Nashville • Liquidation Expo • Antique Expo • Music City Brawl Stars Roller Derby • Christmas Village HORSE / LIVESTOCK / AG. ENTERTAINMENT EVENTS • Limited to none • MMA Fight • Professional Wrestling • Boxing Matches CONVENTIONS / CONFERENCES OTHER EVENTS • Limited to none • Meetings • SMERF • Banquets • Luncheons • Training • Ride-and-Drive • Exams • Parties

Fairgrounds Utilization Days Roller Derby Public/Consumer Show Meeting/Banquet Bicycle Event Racing Event Flea Market Other Animal Event Other Fight/Wrestling Parking 1,000 Concert SMERF Fair 800 728 697 Utilization Days 615 74 100 600 49 88 48 48 35 36 57 400 48 64 258 213 200 188 171 155 86 0 2009 2010 2011

Fairgrounds Financial Operating Results FY 2011 FY 2010 FY 2009 Operating Revenues: Facility rent $1,608,382 $1,649,112 $1,732,947 Food service (net) 86,194 109,322 146,249 Contract service/other 215,070 371,115 347,943 Parking 192,833 167,092 200,666 Fair 0 1,073,154 954,589 Total Operating Revenues $2,102,479 $3,369,795 $3,382,394 Operating Expenses: Salaries and benefits $1,280,883 $1,536,424 $1,393,646 Contract labor 131,600 599,474 941,860 Utilities 531,621 557,192 581,397 Repair & maintenance 128,282 182,317 170,943 General & administrative 224,649 617,462 618,213 Supplies 84,912 120,425 164,581 Insurance 51,267 107,140 84,089 Other 2,718 6,067 4,364 Total Operating Expenses $2,435,932 $3,726,501 $3,959,093 Net Operating Profit/(Loss) ($333,453) ($356,706) ($576,699)

Comparable Fairgrounds Complexes Facility City, State Arkansas State Fair Complex Little Rock, AR Illinois State Fairgrounds Springfield, IL Indiana State Fairgrounds Indianapolis, IN Iowa State Fairgrounds Des Moines, IA Kansas State Fairgrounds Hutchinson, KS Kentucky Expo Center Louisville, KY Mississippi Fair Complex Jackson, MS North Carolina State Fairgrounds Raleigh, NC Ohio Expo Center Columbus, OH State Fair Park Oklahoma City, OK South Carolina State Fairgrounds Columbia, SC Wisconsin State Fair Park Milwaukee, WI

Total Acreage Oklahoma 435 Kentucky 400 Iowa 400 Ohio 360 Illinois 360 North Carolina 344 Kansas 280 Indiana 250 Wisconsin 200 Arkansas 140 Average = 280 Tennessee 117 Median = 310 Mississippi 105 South Carolina 90 0 50 100 150 200 250 300 350 400 450 500

Permanent & Temporary Stalls Permanent Temporary 2,583 Oklahoma Kentucky 2,498 Indiana 1,065 1,102 Ohio 1,000 Mississippi Wisconsin 850 678 Illinois Arkansas 678 Iowa 600 585 North Carolina Average = 1,000 240 South Carolina Median = 760 Kansas 201 Tennessee 0 0 500 1,000 1,500 2,000 2,500 3,000

Total RV Hookups Iowa 2,378 Kansas 511 Ohio 363 Mississippi 300 Illinois 300 South Carolina 286 Kentucky 218 North Carolina 200 Arkansas 200 Oklahoma 180 Average = 440 Indiana 170 Median = 250 Wisconsin 120 Tennessee 20 0 500 1,000 1,500 2,000 2,500

Number of Exhibit Halls Indiana 13 Kansas 12 Ohio 9 Iowa 8 Kentucky 8 Tennessee 7 Oklahoma 7 South Carolina 6 North Carolina 5 Wisconsin 5 Average = 6 Illinois 5 Median = 6 Arkansas 3 Mississippi 1 0 2 4 6 8 10 12 14

Total Exhibit Space (in SF) Kentucky 957,500 Indiana 635,400 Ohio 551,600 Oklahoma 298,000 Wisconsin 279,500 Iowa 268,000 Kansas 197,900 North Carolina 190,800 South Carolina 122,500 Illinois 119,500 Average = 311,900 Tennessee 110,000 Median = 233,000 Mississippi 67,200 Arkansas 54,500 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000

Largest Single Exhibit Hall Kentucky 216,000 Wisconsin 198,900 Ohio 152,900 Indiana 147,100 Iowa 110,400 North Carolina 95,000 Oklahoma 70,000 Mississippi 67,200 Kansas 40,800 Illinois 39,000 Average = 100,700 South Carolina 36,000 Median = 82,500 Arkansas 34,500 Tennessee 28,800 0 50,000 100,000 150,000 200,000 250,000

Total Meeting Space (in SF) Indiana 35,300 Iowa 17,200 Illinois 14,900 Wisconsin 10,700 Kansas 10,000 South Carolina 8,900 North Carolina 5,700 Arkansas 4,300 Tennessee 3,200 Average = 12,100 Ohio 1,900 Median = 10,000 Oklahoma 0 Mississippi 0 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000

Number of Indoor Arenas Oklahoma 5 Kansas 3 Illinois 2 Ohio 2 Mississippi 2 Iowa 2 North Carolina 2 Kentucky 2 Tennessee 1 Indiana 1 Average = 2 Wisconsin 1 Median = 2 Arkansas 1 South Carolina 1 0 1 2 3 4 5 6

Largest Indoor Arena (in SF) Kentucky 42,500 South Carolina 37,500 North Carolina 34,200 Oklahoma 33,200 Iowa 32,000 Arkansas 28,800 Illinois 28,000 Kansas 26,500 Mississippi 25,400 Ohio 25,200 Wisconsin 23,800 Average = 30,000 Indiana 22,500 Median = 28,400 Tennessee 11,000 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000

Largest Arena (Seating Capacity) Kentucky 19,000 Arkansas 10,200 Mississippi 10,000 Oklahoma 9,000 Indiana 7,600 North Carolina 7,600 Ohio 5,000 Iowa 3,500 Wisconsin 3,100 Illinois 2,700 Tennessee 2,500 Average = 6,600 Kansas 1,000 Median = 6,300 South Carolina 300 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000

Grandstand (Seating Capacity) Wisconsin 40,000 Tennessee 15,000 Indiana 13,900 Iowa 10,400 Kansas 9,700 Illinois 8,900 South Carolina 6,000 North Carolina 2,200 Oklahoma 0 Ohio 0 Mississippi 0 Average = 13,000 Kentucky 0 Median = 9,700 Arkansas 0 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000

Integration of Racetracks at State Fairgrounds Complexes 29 Paved Track/ 9 Motorsports Dirt Track/ Horseracing Dirt Track/ Motorsports 2 & Horseracing Dirt Track/ 8 Motorsports No Racetrack 2 Tennessee and Washington

Market Analysis Methods • Team visit, site tours, & meetings at kick-off • Community outreach, including: ! Open House ! Capture of public feedback and comments ! Discussions with existing Fairgrounds users ! Interviews of visitor industry leaders & stakeholders • Benchmarking of comparable facilities • Competitive facilities assessment • Demographics & local market conditions • Telephone survey of potential facility events

State Fair Attendance 3,000,000 2,500,000 Average = 606,000 Median = 430,500 Attendance 2,000,000 1,500,000 1,000,000 500,000 0

Fairgrounds Speedway Overall Issues: • Noise & issues impacting neighborhood • Limitation in dates available to racing • Deficiencies in functionality, amenities, etc. • Historical challenges w/ promoter stability • Closure of Nashville Superspeedway • High costs re: construction & operation of a state-of-the-industry speedway