Master Plan 2013 - Utah State Fairpark

Transcription

Utah State Fairpark
Master Plan
Updated: 11/14/13
UTAH STATE FAIRPARK MASTER PLAN
Introduction
The Utah State Fairpark Board of Directors issued a Request for Proposals in November 2011 for
consultants to prepare a physical master plan and market demand analysis. Populous, a global
architectural and planning firm with a specialty in fairgrounds planning and design, and it’s consultants
Markin Consulting, market and feasibility; local architects Archiplex and local engineers Ensign
Engineering, were selected and contracted in January, 2012.
During the next 14 months, the consultants met with the Board and staff, existing and potential facility
users, the general public and others to solicit input; conducted site tours, market research and market
analysis; prepared alternatives and presented this final master plan in March, 2013.
Issues
The major issues identified by the Board to be addressed were:
•
Capabilities to increase Fair attendance and revenues
•
The advisability of locating unrelated economic uses on the grounds as a means of
increasing on grounds activities and income
•
Opportunities for increased non‐fair events and activities
Utah State Fairpark and the Utah State Fair
The Utah State Fairpark, established in 1902 and home of the Utah State Fair, is a 65 acre complex
located approximately two (2) miles from downtown Salt Lake City. The complex consists of 25
buildings of which 13 are historic, a food court, open Arena, open Grandstand and equestrian facilities.
There are reportedly 2,800 parking spaces; adjacent and across North Temple in the White Ball park
property. The historic campus is on a grid with the Mall being the predominate visual and organizing
element. As expected, the overall layout is conducive for the Fair and other major events in that it is
properly “zoned” with like uses being grouped. The major zones are indoor and outdoor exhibition,
entertainment, livestock, equestrian and the carnival. The only known conflict is the movement of
animals from the barns to the Showring which crosses pedestrian circulation. The facility is serviced by
TRAX light rail with a station located in the vicinity of the barns. TRAX saw an increase in ridership
during the Fair and other events and over time could help to alleviate the need for additional on‐
grounds parking.
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Fair Growth
The 2013 Fair paid and other attendance was 259,000 and experienced 9 days of inclement weather.
Five year average attendance is approximately 290,000. Three (3) methods were used to project future
fair growth. They are as follows:
•
Market Penetration Rate as percent of State Population: Market penetration rate is a theoretical
number that expresses Fair attendance as a percent of the market area. If one assumes that the
primary and secondary markets are the state as a whole, the current penetration rate is 10.5 %. A
review of 35 other state fairs indicates an average rate of 15%. Given the state’s current population
of 2,763,000, a 15 % rate would result in an attendance of 415,000.
•
Fair Growth as a percent of State Population Growth: The state’s population is projected to be
4,382,000 by 2030. If the Fairs rate remained at 10.5%, the projected attendance would be 460,000
by then.
•
Market Penetration Rates as a percent of Metropolitan Area: The bulk of the state’s population is in
the Salt Lake City metropolitan area. A review of three (3) other state fairs located in similarly sized
area indicates their rates to average 38%. If the same rate were achieved, the attendance would be
427,000.
As shown above, it is reasonable to expect that the Fair’s attendance can grow with aggressive
marketing and relevant programing. Averaging of the above results in a projected attendance of 435,
000 and is a reasonable goal.
Market Demand Analysis Summary
Site Assessment
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High visibility along North Temple
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Easy access from major highways
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TRAX station can have positive effect on Fair
•
Close proximity to lodging, restaurants, retail
Market Area Characteristics
•
The Fairpark has access to almost 700,000 people living within 10 miles of its location
•
The households within 10 miles of Fairpark have sufficient disposable income for events at the
grounds, such as consumer shows, festivals and the like.
3
Competitive Factors
•
The Salt Lake City area lacks mid‐sized exhibition facilities (30,000sf to 50,000sf)
•
Opportunities exist for lower cost and multi‐use event facilities in the northern part of SLC area
•
Plethora of equestrian event facilities in and around SLC area and northern half of Utah
•
Fairpark has singular large outdoor area for festival‐type event in Salt Lake City proper area
Utah State Fairpark
Incremental Event Potential
Facility Options
Exhibition Building
•
40,000 square feet net rentable exhibition space
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Clear‐span, high‐ceiling flat floor space
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Dividable into 2 to 3 separate spaces
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Restrooms to serve separate function areas
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Catering kitchen expandable to commercial kitchen
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Foyer area for pre‐function space
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Box office and multiple windows
•
Multiple concession areas
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Show office, technology amenities
Equestrian Facilities
• Improved and expanded stalls and multi‐purpose building
• Cover existing warm‐up arena
4
Physical Master Plan Recommendations
Recommended physical improvements and additions are of two general types, those for which there
are both Fair and non‐fair demands and those that are needed to accommodate Fair growth and
improve the overall grounds and hence, the visitors experience.
The overall master plan is shown by Illustration1.
Master Plan - Illustration 1
Master Plan Legend
1. Expo‐Office Complex Option One
8. Stall installment
2. Expo‐Office Complex Option Two
9. Screening of Equestrian Complex
3. Covered Arena Seating
10. Grandstand Screening and Portals
4. Additional Bleacher Seats
11. North Patron Gate
5. Covered Warm‐Up Arena
12. Mall Improvements
6. Removed Row Barns
13. Renovation of the Brick Barns
7. Multipurpose Building Renovation
14. Multipurpose Arena Exhibition Building
15. North Temple Patron Gate
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Market Demand
• Expo‐Office Complex: As noted above, there is a non‐fair market demand for 40,000 net square
foot exhibition building which would be used during the Fair for additional exhibits and perhaps
relocated ones. A proposal has also been made to build a 60,000 square foot state office structure
as part of the complex. Two (2) optional locations are shown. Option One is at the west end of the
mall and requires removal of the existing Administration and the Bonneville buildings. Those
functions would be relocated into the new complex. The second option is at the main parking lot
on the north side of the Mall. The Driver License and Statewide Auction buildings would be
removed resulting in a loss of non‐fair revenue. See illustrations 2‐5. In either case, the suggested
architectural design recalls the existing historic buildings. See Illustration 6.
Looking Northwest: Expo‐Office Complex Option One ‐ Illustration 2
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Looking Northeast: Expo‐Office Complex Option One ‐ Illustration 3
Looking Northwest: Expo‐Office Complex Option Two ‐ Illustration 4
Looking Northeast: Expo‐Office Complex Option Two ‐ Illustration 5
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Expo-Office Complex Architectural Image ‐ Illustration 6
Equestrian Complex: Improvements to the equestrian complex are: covering of the existing Arena
seats, the addition of 2,000 uncovered bleacher seats, covering the existing Warm up Arena, removal
of the existing row barns, remodeling of the Multipurpose Building and an addition to replace the
removed stalls. Removal of the barns will allow for the area to be developed as an events plaza and for
the expansion of the Little Farm Hands exhibit. These improvements will increase the complex’s
marketability for non‐fair uses and keep a strong equestrian presence during the Fair. See Illustration 7
8
Equestrian Complex ‐ Illustration 7
Fair Growth and Site Enhancements
• Patron Gates: Two ceremonial patron gates are recommended; one on North Temple adjacent to
the existing gate‐ticket booth and the second at the north parking lot in the vicinity of the
Grandstand. As shown by Illustration 8, the architectural style recalls the historic buildings.
Patron Gates ‐ Illustration 8
•
Screening: Landscape and fabric screening is recommended to screen the equestrian service area
and around the Grandstand. Portals are recommended at the entrances to the Grandstand, as well.
•
The Mall: The Mall is one of the grounds organization elements and unique among features among
fairs. During the Fair it is used for the carnival; non‐fair as concert spaces and other events.
Recommended improvements are to re‐construct with an “engineered” lawn so as to better
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withstand increased uses and add architectural elements at the corners. Illustration 9 shows the
Mall with the Option One Expo‐Office Complex.
Mall Development ‐ Illustration 9
•
Renovation of the Historic Barns: Although uses are currently limited to the Fair and one non‐
fair agricultural function, they are important to the Fair Park’s architectural integrity.
Recommended improvements include re‐glazing, reroofing, masonry repairs and others as may
be required by structural and detailed architectural analysis.
•
Building Replacements: The Showring, free standing restrooms and metal exhibition buildings
are inconsistent with the facility’s historic architectural vocabulary and quality level. It is
recommended that they be replaced. See Illustration 10.
10
Multipurpose Arena‐Exhibition Building ‐ Illustration 10
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The Fairpark site enjoys easy access from major highways and city streets, is centrally located in the
greater Salt Lake City area, is highly visible along North Temple, it is in close proximity to support
services and public transit and in good relation to the majority of Utah’s population.
Hotel/Motels
According to the Salt Lake City CVB, there are nearly 17,000 hotel rooms in the entire SLC metro area.
The map below shows the proximity of the Fairpark to area lodging facilities – both national chain and
locally‐owned properties.
Restaurants
The Fairpark is in close proximity to a variety of eating establishments located along North Temple and
in the downtown Salt Lake City area.
Area Attractions
There are a variety of attractions in the greater Salt Lake City area including:
 Clark Planetarium
 LDS Church
 Discovery Gateway
 Lagoon Amusement Park
 Family History Library
 Living Planet Aquarium
 Family Search Center
 National History Museum of Utah
 Great Salt Lake
 This Is The Place Heritage Park
 Historic Temple Square
 Thanksgiving Point
 Hogle Zoo
 Utah Olympic Park
A significant amount of outdoor recreation is in close proximity to the Salt Lake City area, with major
ski areas in the Park City area to the west of the metro area, along with city, county, state and national
parks and recreation areas.
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UTAH STATE FAIRPARK FACILITIES
Layout and Buildings
Fairpark is located on approximately 65 acres of land, with about 28 acres of parking available. A
number of buildings on the grounds (Zion Building, Bonneville, Promontory, Grand and Livestock Barns)
are of historic significance and would be unable to be torn down and replaced.
Below is a map of the existing Fairpark with principal buildings and structures identified.
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Following are descriptions of the principal buildings and structures of the existing Fairpark that are
available for rental.
In addition, the White Ball Park (parking lot area) on the south side of North Temple is rented for
various uses. The Fairparks’ center mall area, consisting of large grass areas, is also rented for events,
such as outdoor festivals.
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Facility Usage Trends
A review of reports and records for events held at the Fairpark in 2009 to 2011 and scheduled in 2012,
revealed a variety of uses of facilities at the grounds. Major recurring events and activities held at
Fairpark have included;
 Small consumer shows
 Banquets and receptions
 Quinceaneras
 Small animal shows
 Weddings
 Festivals
 Sales and auctions
 Fundraisers
 Dances
 Concerts
DEMOGRAPHIC AND ECONOMIC TRENDS
For purposes of the market assessment, based on the location of the Fairpark site, access to the site
and estimated drive times and other transportation access, the primary market area for non‐Fair
events and activities at the Fairpark that appeal to local residents is expected to be within a 10 mile
radius. For purposes of this assessment, we have analyzed key market characteristics of the population
within a 3, 5 and 10 mile radius of the grounds, as shown in the map below.
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Market Characteristics
The table below presents key demographic trend data concerning the population within a 3, 5 and 10
mile radius of the Fairpark.
Utah State Fairpark - Demographic and Economic Trends
A review of recent and prospective trends in demographics for the primary market shows:
•
The population of the primary market area increased by about 50,000 people between 2000 and
2010 – an 8.5 percent increase. This market area is expected to increase by another 39,000
between 2010 and 2015.
•
The average age in 2010 of the primary market area (31.4) was slightly higher than the average for
the State of Utah (29.2).
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•
The demographic makeup of the primary market area is predominantly Caucasian and a mix of
other races and 20.4 percent of Hispanic origin.
A review of the economic trends of households within the primary market area, as presented in the
table below, shows:
•
The median household income of the primary market area, in 2010, was $57,223; slightly less
than that of the State of Utah ($57,783) and substantially higher than Salt Lake City ($44,501).
•
Disposable income (after‐tax household income) for the primary market area, as shown in the
table, appears healthy. There appears to be sufficient disposable income (both median and
average) within the primary market area to support spending on discretionary goods and
services.
Utah State Fairpark - Demographic and Economic Trends
Discretionary Spending
The tables on this page and the next show 2010 household discretionary incomes and “recreation”
expenditures for the 3, 5 and 10 mile radius out from the Fairpark site. The recreation categories are
typically classified as discretionary spending. Along with the average annual household expenditures or
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discretionary items is an index number that is measured against the US average, which has an index of
100.
Utah State Fairpark - Demographics/Economics Trends
The households within 10 miles of the Fairpark site consistently have higher indices for discretionary
spending on most items than the US average. Most notable are airline fares, catered affairs, computers
and hardware, fees and admissions, and pets (the highest).
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It is evident that the households within a 3 and 5 mile radius have substantially lower median and
average disposable incomes (and, thus, lower indices) than when including the households within a 5
to 10 mile radius of the Fairpark.
Below are additional annual household expenditures for discretionary items, along with indices for
photo equipment, TV/Video/Audio products, toys and games and sports and recreation equipment.
Utah State Fairpark - Demographics/Economics Trends
Market Niches
On the basis of factors affecting demand for facilities at Fairpark (i.e., location, area economics and
demographics, competitive factors, usage trends and the like) and interviews/surveys of stakeholders
and current and potential users of Fairpark facilities, our review of the 2012 Utah State Fair and our
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assessment of the optimal market opportunities for the future of Fairpark, the following expanded and
new market opportunities exist for facilities at the Utah State Fairpark:
•
Mid‐sized consumer and public shows
•
Agriculture‐focused trade and industry shows
•
Festivals (music, ethnic, community, etc.)
•
Small animal shows, such as dog, cat, bird and rabbit
•
Banquets, receptions, fundraisers and similar events
•
Single and multi‐day horse shows
•
State and regional RV rallies
•
Community events and users
Market Opportunities and Operating Focus
Generally, the facilities at Fairpark have limited use due to age, condition and size, as well as
competition from larger event facilities in the Salt Lake City area. In spite of the limitations of existing
facilities, there are opportunities to increase the number of events held at Fairpark throughout the
year, in existing facilities, as well as to attract new markets/events with expanded or new facilities.
Existing Facility Opportunities
The Fairpark has been “home” to Vans Warped Tour for several years – successful due largely to the
grassed center mall area that can be easily converted into festival grounds through staging venues.
Fairpark can build the “festival” market, appealing to a variety of other music festivals as well as ethnic,
community and family festivals – all without much change in existing facilities. Examples of these
festivals include:
•
Taste of Utah
•
Bluegrass Festival
•
Celtic/Irish Festival
•
Rockapalooza
•
Uproar Festival
•
Hispanic Festivals
•
Jazz Festival
•
Music & Arts Festival
•
Car/Street Rod Shows
Another market that Fairpark could compete in is for state and regional RV rallies. The Salt Lake City
setting, with easy access to historical, ancestral and outdoor recreation venues, affords Fairpark with
the potential to attract these types of gatherings with existing event facilities – centermall, exhibition
and meeting space and parking lots.
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Expanded/New Facility Opportunities
With expanded/new event facilities, Fairpark could successfully attract and stage events with both new
markets and build on existing markets, as well as better participation in the annual Utah State Fair
through additional growth in attendance, participation and net revenues.
Existing markets that could be expanded with new event facilities include consumer and public shows,
trade and industry shows, mid‐sized banquets/receptions, small animal shows and sales and auctions.
All of these types of events have been limited in size at Fairpark; constrained by its relatively small
exhibition and meeting spaces. Some “successful” events have moved to competitive event facilities in
the Salt Lake City area when they outgrew available space at Fairpark.
Another market niche that could be attracted to use facilities at Fairpark is single and multi‐day horse
shows. Though there are a seemingly plethora of competitive equestrian facilities in the market area,
there also exists a very high demand for these facilities – demand that sometimes exceeds the
available facilities.
Rental Rate Assumptions
Based on the rental rate schedule of competitive and comparable facilities, as well as discussions with
potential users, we have developed a proposed rental rate structure for the Recommended Facilities,
presented in the following table.
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Utah State Fairpark - Proposed Pricing of Recommended Facilities
Operating Revenue Assumptions
For purposes of the projections, revenue sources include building rental income, arena and stall rental
income, concession income, parking income, camping income, incremental fair revenues and
advertising/signage.
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Building Rentals
Building income includes revenues generated from renting the recommended exhibition building.
Below are the assumptions for the low and high scenarios that were used to estimate the potential
incremental building rental income for the Recommended Facilities.
Utah State Fairpark- Building Rental Revenue - Low Scenario
Utah State Fairpark - Building Rental Revenue - High Scenario
Concessions Income
For purposes of the projections, it is assumed that the Fairpark would have sufficient volume of event
activity to enter into a multi‐year contract with a third‐party concessionaire to provide food
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service/concessions for consumer shows, spectator events, animal shows and community events,
paying Fairpark 30% of gross concession sales. For banquets, receptions, fundraisers and meetings
where food is catered, it is assumed that Fairpark would receive a 10% caterer’s fee. Below are the
detailed assumptions and calculations of concessions and concession income.
Utah State Fairpark - Concession Income Potential - Low Scenario
Utah State Fairpark - Concession Income Potential - High Scenario
Arena and Stall Rental Income
It is assumed that, in addition to building rental revenues from the proposed Exhibition Building, the
Fairpark would receive income related to the potential equestrian events (single and multi‐day shows)
for rental of arenas and stalls. The assumptions and calculations of arena and stall rental income are
presented in the tables below.
Utah State Fairpark - Arena and Stall Income Potential - Low Scenario
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Utah State Fairpark - Arena and Stall Income Potential - High Scenario
Parking Revenue
For purposes of the projections, it is assumed that the Fairpark would continue to contract with a third
party parking operator to manage, control and collect parking revenues for consumer shows and
festivals. It is assumed that Fairpark would receive a net of $4.00 per car parked. The tables below
present the assumptions and calculations of parking revenue potential for the Recommended Facilities.
Utah State Fairpark - Parking Income Potential - Low Scenario
Utah State Fairpark - Parking Income Potential - High Scenario
Camping Income
Fairpark could generate camping income from RV rallies and multi‐day horse shows held at the
grounds. The table below presents the assumptions and calculations of camping income.
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Utah State Fairpark - Camping Income - Low Scenario
Utah State Fairpark - Camping Income - High Scenario
Incremental Fair Revenue
With the availability of the proposed exhibition building, it would be possible to increase the number
of indoor commercial vendors (both new and relocated), as well as food booths, during the annual
Utah State Fair. In addition, signage and sponsorship revenues can be generated with the new
exhibition building, providing incremental revenue for the Utah State Fair ranging between $40,000
and $50,000 per year.
Sponsorship Revenues
It is assumed that the Fairpark could generate sponsorship/signage revenue on a year‐round basis with
the addition
of the proposed exhibition building, ranging from $25,000 to $35,000 per year.
Operating Expense Assumptions
Operating the Recommended Facilities will consist of a variety of expenses, including incremental
staffing costs, utilities, general and administrative costs, supplies, repairs and maintenance, marketing
and advertising and contracted services. Following is an overview of the assumptions used in preparing
the operating expense projections, based on historical financial operating costs at Fairpark.
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Salaries, Wages and Benefits
In addition to the current staffing levels of non‐fair operations at the Utah State Fairpark, based on the
additional events and activities under the high and low scenarios, the following new positions would be
required:
Maintenance Staff – Under the low scenario, two additional full‐time maintenance staff would be
needed. For the high scenario, three additional full‐time maintenance staff would be needed. These
positions would assist with overall facility maintenance, as well as specific set‐up and clean‐up
activities at Fairpark.
Using current approximate salary and wage levels and benefits and taxes for other Fairpark employees,
below are the expected new labor costs associated with the above positions.
Utah State Fairpark - Incremental Personnel Costs
Utilities
Utility costs include electricity, gas, water, sewer and trash removal for the operation of the
Recommended Facilities.
General and Administrative Expenses
General and administrative expenses cover the incremental costs of operating the Recommended
Facilities including office supplies, travel, postage, telephone, equipment rentals and other costs.
Supplies
Supply costs include supplies used in the operation and maintenance of the facilities, such as rest room
supplies and those supplies used in cleaning and maintaining the facilities.
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Repairs and Maintenance
Repairs and maintenance costs include the cost of normal repairs and maintenance of the facilities; not
extraordinary costs associated with new facilities.
Advertising and marketing
These costs include the production of brochures, marketing materials, travel and tours, mailing and
other costs associated with advertising and promoting the Recommended Facilities.
Contractual Services
It is assumed that Fairpark would contract for certain services associated with operating and
maintaining the facilities, such as hourly works for event set‐up and clean‐up, as well as equipment
rentals and special services.
Projected Revenues and Expenses
The projected revenues and expenses for the proposed exhibition building and expanded equestrian
facilities at the Utah State Fairpark, in a stabilized year of operation, are presented in the table to the
right. The projected cash flows are based on the assumed rental rates and operating policies presented
in this document, the projected utilization of the proposed facilities, and the estimated revenues and
expenses associated with operating the facilities.
These projections and the assumptions herein represent the revenues and expenses associated with
operating the Recommended Facilities and are considered to be incremental to current revenues and
expenses. There will usually be differences between the estimated and actual results because events
and circumstances frequently do not occur as expected, and those differences may be material. The
projections are presented in 2012 dollars.
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Utah State Fair Park
Projected Incremental Operating Revenues and Expenses - Stabilized Year of Operations
Comparison of Options
The table below presents a summary of key aspects of operational, economic and cost factors for the
market driven components of the Recommended Facilities presented in this report. Included in this
table is the average cost estimates for each facility option prepared by Populous, the projected
incremental net revenues, and the annual return on investment (ROI) calculation using the projected
incremental net revenues and the average total development costs.
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Utah State Fairpark - Comparison of Costs, Net Revenues and Return on Investment
Office Space Option
Subsequent to our study completion, the Fairpark was approached by a Division of Utah State
government with a broad proposal to have 50,000 square feet to 70,000 square feet of office space
built on Fairpark property and leased back to the Division making the inquiry.
To partly assess the feasibility of Fairpark building such office space, Populous prepared an estimate of
the cost of adding the space on top of the proposed exhibition building and Markin Consulting
calculated the required next lease payments that would be required from the Division. The table below
presents the estimated total construction costs for the proposed exhibition building alone
($12,025,000) and for the exhibition building with office space (60,000 square feet) on top
($33,400,000); the difference representing the additional cost of constructing the office space on top
of the exhibition building that would need to be covered by lease payments.
We reviewed recent state and local government and government related bond issues and noted an
range of interest rates between 3 percent and 5 percent. Based on the $21,375,000 additional cost
related to constructing office space on top of the exhibition building and a range of 3 perfect to 5
Percent for a bond sale, Fairpark would need to achieve a minimum of $27 to $32 per square foot with
a long‐term lease.
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Master Plan 2013 - Utah State Fairpark

Transcription

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