reliant park master plan analysis

RELIANT PARK MASTER PLAN ANALYSIS
CONSULTANT TEAM STUDY PROCESS STUDY PROCESS Compe88ve Facili8es Comparable Facili8es Historical Analysis Market Demand & Building Program Financial Projec8ons & Funding Poten8al 1 Market Interviews KEY CONCLUSIONS KEY CONCLUSIONS 1. It is recommended that the Replacement Arena Project be developed at an esEmated Project Cost of $385.4 million 2. It is the team’s strong recommendaEon that acEon be taken on the Replacement Arena Project and Astrodome. 3. It is also recommended that HCSCC conEnue its efforts to secure a private developer for the on-­‐site Hotel. KEY CONCLUSIONS 3.  It is recommended the MulE-­‐Purpose Facility opEon be selected for the future use of the Astrodome site at an esEmated cost of $270.3 million 4.  Analysis of the Astrodome Renaissance has been unable to idenEfy a mix of uses that can be financed today through tradiEonal sources. 5.  However, if Harris County elects to pursue the MulE-­‐
Purpose Facility opEon, it preserves the Astrodome Renaissance opEon if other sources of funding become available. 6.  The Status Quo opEon is not recommended. RELIANT PARK ANALYSIS RELIANT PARK COMPLEX RELIANT PARK MAJOR TENANTS RELIANT CENTER EVENTS -.//01234"5"678292.0:"
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RELIANT ARENA CONDITION 1. The ceiling in the arena is too low and lacks the rigging capacity required for major event producEon. 2. The seaEng capacity is too low to abract the majority of touring events RELIANT ARENA CONDITION 3.  The exhibit space adjacent to the arena is divided into five separate halls of various sizes making show layout inefficient. 4.  Access and circulaEon within the halls is awkward and confusing. RELIANT ARENA CONDITION 5.  The exhibit halls have low ceiling heights with poor quality lighEng and inadequate event power and data capabiliEes. 6.  Concession faciliEes are limited and outdated and do not offer guests abending events the variety and/or quality of products expected. RELIANT ARENA CONDITION 7.  There is no secure backstage area with loading faciliEes for events. 8.  There are only two (2) small locker rooms, which can only be accessed from the public concourse. 9.  There are an insufficient number of restrooms and the current restroom faciliEes and ameniEes are of poor quality and outdated. RELIANT PARK HISTORIC OPERATING PERFORMANCE MARKET ANALYSIS DRIVE TIME MAP RESIDENT MARKET •  The primary resident market is 3.56 million persons •  2.12 million persons in the 30-­‐60 minute segment. •  Forecasted to grow at an average annual rate of 2.0%, from 5.68 million in 2010 to 6.28 million by 2015. •  Secondary resident market consist of 1.21 million •  By 2015, the total available resident market is forecasted to 7.54 million persons RESIDENT MARKET Household Income •  $55,869, compared to $54,442 naEonwide •  Primary market (0-­‐60 minutes) has a more affluent median household income of $58,366 Household Expenditures •  Households in the total resident market spent a total of $8.1 billion on entertainment and recreaEon in 2010 •  The primary market’s per capita spending totaled to $3,516 on entertainment and recreaEon in 2010 •  The higher average annual spend in the primary market is expected as the primary market encompasses the Greater Harris County metropolitan area and is comprised of higher-­‐earning households RESIDENT MARKET !"#$%"&'()*+,%
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RELIANT PARK MASTER PLAN ANALYSIS RELIANT PARK MASTER PLAN MASTER PLAN OVERVIEW Replacement Arena Project •  The Replacement Arena Project includes the following components: •  Performance Arena with 8,000 to 10,000 fixed seats •  250,000 square feet of exhibiEon space •  45,000 square foot ballroom with addiEonal meeEng space •  2,500 to 3,000 space parking garage •  Intermodal TransportaEon Center •  FesEval Plaza •  DemoliEon of the current Reliant Arena and Plant II •  Site improvements and paving RELIANT PARK MASTER PLAN Reliant Center
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Astrodome
Site
Reliant
Stadium
Festival
Plaza
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Reliant Park Master Plan
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PROJECT COSTS TIMELINE Reliant Center Exhibit Space Occupancy Percentages by Hall Hall A1
Adjus&ng for Hold Dates Hall A2
Hall A3
Hall A4
Hall B
Hall C
Hall D
Hall E1
Hall E2
Hall E3
Hall E4
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90%
80%
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60%
50%
40%
30%
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FY 2007
FY 2008
FY 2009
FY 2010
FY 2011
Daily Reliant Center Exhibit Hall U8liza8on Note: Mul*ple colors reflect mul*ple events held on the same day. Rota8ng Events Hosted by Des8na8on – Top US Conven8ons and Trade Shows 2008-­‐2010 ;/7.43"5%*L%
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FINANCIAL PROJECTIONS CONCLUSIONS AND RECOMMENDATIONS •  It is recommended that the Replacement Arena Project be developed at an esEmated Project Cost of $385.4 million. –  Depending upon the opEon selected for the Astrodome, addiEonal exhibiEon space in the Replacement Arena Project may be required. –  It is the team’s strong recommendaEon that acEon be taken on the Replacement Arena Project and Astrodome. The improvements will have a significant posiEve effect on the tenants, major long term clients like OTC and commibed special events including the 2016 Final Four and the 2017 Super Bowl bid. In order to derive these benefits this work must begin as soon as possible. •  It is also recommended that HCSCC conEnue its efforts to secure a private developer for the on-­‐site Hotel. –  The analysis shows that the on-­‐site Hotel would have a posiEve impact on Reliant Park. –  The HCSCC has stated that Harris County property taxes will not be used to develop the hotel. ASTRODOME SITE FUTURE USE ANALYSIS FUTURE USE OPTIONS Maintain Status Quo This opEon maintains the Astrodome in its current condiEon. The building will remain unusable and the cost of maintenance will conEnue to rise as the building ages and systems further deteriorate. Reliant Park Plaza This opEon demolishes the Astrodome, fills the exisEng site to grade and constructs Reliant Park Plaza with perimeter support faciliEes for outdoor events. Astrodome Mul8-­‐Purpose Facility This opEon would renovate the Astrodome into a mulE-­‐use indoor event facility. A new event floor would be constructed at grade, exisEng seaEng would be removed, systems would be upgraded or replaced and improvements would be made to the exterior skin. Astrodome Renaissance This opEon would overlay the MulE-­‐Purpose Facility with Science, Technology, Engineering and MathemaEcs (STEM) programs and/or privately funded concepts, including retail, dining and entertainment (RD+E) and abracEons. Approximately 400,000 square feet of new space would be created within the Astrodome to house the overlaid components. RELIANT PARK PLAZA RELIANT PARK PLAZA MULTI-­‐PURPOSE FACILITY Design Program Astrodome Mul8-­‐Purpose Facility Floor area by level and uses: Level 1 -­‐ 394,000 square feet •  VerEcal circulaEon •  FesEval/ExhibiEon expansion •  Support space •  Central plant & chilled water storage •  Event storage •  Staging, loading and marshaling Level 3 – 410,000 square feet •  MulE-­‐purpose floor •  Permanent restrooms •  Food and beverage service •  Entrance to leasable floors above Astrodome Mul8-­‐Purpose Facility Astrodome Renaissance Possibility ,-.*/&0("1"&'2(
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Astrodome Renaissance Possibility Astrodome Renaissance FUTURE USE OPTIONS ANALYSIS Maintain Status Quo •  Maintenance and capital costs will increase as the building ages •  DeterioraEon of the building detracts from the appeal of the Complex •  Obstructs site circulaEon and event operaEons •  Preserves the opEon to determine a best use in the future •  ConEnue to cost money while returning no benefit Reliant Park Plaza •  Lowest publicly funded Project Cost •  Provides addiEonal outdoor event space •  Includes limited addiEonal parking •  Reduces current Reliant Park maintenance costs •  Improves site circulaEon and access FUTURE USE OPTIONS ANALYSIS Astrodome Mul8-­‐Purpose Facility •  Highest publicly funded Project Cost. •  Expands and supports core business. •  Reduces operaEng income. •  Provides interior, column-­‐free, high bay exhibiEon space. •  Creates highly marketable, funcEonal and unique space. •  Preserves the opportunity for addiEonal future use. •  Improves site circulaEon and access. •  Creates ideal locaEon for fairs, fesEvals and performances. Astrodome Renaissance •  All MulE-­‐Purpose Facility findings apply, including opportunity for future use. •  Provides opportunity for third party development. •  Creates a regional desEnaEon •  Economically not viable FUTURE USE OPTIONS ANALYSIS FUNDING ANALYSIS FUTURE USE OPTIONS CONCLUSIONS AND RECOMMENDATIONS •  It is recommended the MulE-­‐Purpose Facility opEon be selected for the future use of the Astrodome ü  This recommendaEon considers more than just the financial projecEons. It recognizes the magnitude of potenEal opportuniEes offered by this one-­‐of-­‐a-­‐kind structure. In the MulE-­‐Purpose Facility opEon the event floor would be over 300,000 square feet, column free and rising to a height of over 200 feet. The result is any event is possible, making Reliant Park a truly unique desEnaEon. There is simply no space like this in the world today ü  In the event this opEon is not chosen or available funds are not sufficient to support the MulE-­‐Purpose Facility opEon, then Harris County should choose the Reliant Park Plaza opEon at an esEmated cost of $63.9 million*. •  Analysis of the Astrodome Renaissance has been unable to idenEfy a mix of uses that can be financed today through tradiEonal sources. However, if Harris County elects to pursue the MulE-­‐Purpose Facility opEon, it preserves the Astrodome Renaissance opEon if other sources of funding become available. •  The Status Quo opEon is not recommended.