The Economic Impact of the Mohegan Sun Arena at Casey Plaza

Transcription

The Economic Impact of the
Mohegan Sun Arena at Casey Plaza
May 2015
The Economic Impact of the
Mohegan Sun Arena at Casey Plaza
To:
Donna M. Cupinski, Chairwoman
Luzerne County Convention Center Authority
255 Highland Park Boulevard
Wilkes-Barre, PA 18702-6769
By:
Steven N. Zaricki, Research & Information Manager
Northeastern Pennsylvania Alliance
1151 Oak Street
Pittston, PA 18640-3726
Phone: 570.655.5581 or 866.758.1929
Fax: 570.654.5137
Email: [email protected]
May 2015
Table of Contents
List of Tables ...................................................................................................................................... iii
Executive Summary ............................................................................................................................. 1
About the Northeastern Pennsylvania Alliance.................................................................................... 4
Economic Impact Analysis Team ..................................................................................................... 4
About the Mohegan Sun Arena at Casey Plaza.................................................................................... 6
Economic Impact Modeling ................................................................................................................. 7
Assumptions ......................................................................................................................................... 8
Definition of Impact Regions ............................................................................................................. 11
Financial and Visitation Data ............................................................................................................. 13
Payroll Expenses during 2013 ........................................................................................................ 13
Arena Operating Expenses during 2013 ......................................................................................... 15
Hockey Team Operations ............................................................................................................... 17
Total Operation ............................................................................................................................... 19
Visitation ........................................................................................................................................ 21
Visitation by Event Attendees ........................................................................................................ 21
Number of Visitors for Hockey ................................................................................................... 21
Number of Visitors for Concerts, and Entertainment and Family Shows .................................. 22
Visitor Spending ......................................................................................................................... 22
Family, Entertainment and Trade Shows, Concerts and Graduations ...................................... 23
Day Hockey Visitation ................................................................................................................ 24
Night Hockey Visitation ............................................................................................................. 26
Day Concert Visitation ............................................................................................................... 28
Night Concert Visitation............................................................................................................. 30
Day Entertainment Show Visitation ........................................................................................... 32
Night Entertainment Show Visitation ......................................................................................... 34
Day Family Show Visitation ....................................................................................................... 36
Night Family Show Visitation .................................................................................................... 38
Visitation from Religious Conventions ....................................................................................... 40
Visitation from Graduations....................................................................................................... 47
Visitation from the Northeastern Pennsylvania Home and Garden Show ................................. 49
Total Visitation by Event Attendees ........................................................................................... 51
Visitation by Performers, Exhibitors and Visiting Hockey Teams ................................................ 53
Performers who Travel by Bus and Dine at a Restaurant ......................................................... 54
Performers who Travel by Bus and Dine at the Arena .............................................................. 56
Performers who Travel by Bus, Have Additional Trailers and Dine at the Arena .................... 58
i
Performers who Stay in a Hotel and Dine at a Restaurant ........................................................ 60
Performers who Stay in a Hotel and Dine at the Arena............................................................. 62
Performers who Travel by Train and Dine on the Train ........................................................... 64
Northeastern Pennsylvania Home and Garden Show ................................................................ 66
Total Spending by Performers and Exhibitors at Trade Shows ................................................. 68
Visiting Hockey Team Expenditures .......................................................................................... 70
Total Estimated Impact from the Spending by Performers, Trade Show Exhibitors and
Members of the Visiting Hockey Team ....................................................................................... 72
Total Estimated Impact from Visitation ......................................................................................... 74
Total Estimated Impact from Operation and Visitation ................................................................. 76
Construction of the New Savory Concessions and Bar during 2014 and 2015 .............................. 78
Operation of the New Savory Concessions and Bar during 2016 .................................................. 80
Conclusion .......................................................................................................................................... 82
ii
List of Tables
Table 1. Zip Codes within a 15-Mile Radius of Mohegan Sun Arena at Casey Plaza ...................... 11
Table 2. Estimated Impact on the 15-Mile Radius Regional Economy from Payroll Expenses during
2013 (2013 Dollars) ........................................................................................................................... 13
Table 3. Estimated Tax Impact from Payroll Expenses during 2013 (2013 Dollars) ........................ 14
Table 4. Estimated Impact on the 15-Mile Radius Region Economy from Arena Operating Expenses
during 2013 (2013 Dollars) ................................................................................................................ 15
Table 5. Estimated Tax Impact from Arena Operating Expenses during 2013 (2013 Dollars) ......... 16
Table 6. Estimated Impact on the 15-Mile Radius Region Economy from the Operation of the
Wilkes-Barre/Scranton Penguins during 2013 (2013 Dollars) .......................................................... 17
Table 7. Estimated Tax Impact from the Operation of the Wilkes-Barre/Scranton Penguins during
2013 (2013 Dollars) ........................................................................................................................... 18
Table 8. Estimated Impact on the 15-Mile Radius Region Economy from Total Operation during
2013 (2013 Dollars) ........................................................................................................................... 19
Table 9. Estimated Tax Impact from Total Operation during 2013 (2013 Dollars) .......................... 20
Table 10. Visitation Numbers Used in Estimating the Impact on the 15-Mile Radius Regional
Economy during 2013 ........................................................................................................................ 22
Table 11. Spectator Spending Data Used in Estimating the Impact on the 15-Mile Radius Regional
Economy during 2013 (2013 Dollars) ................................................................................................ 23
Table 12. Estimated Impact on the 15-Mile Radius Regional Economy from Day Hockey Visitation
Expenditures during 2013 (2013 Dollars) .......................................................................................... 24
Table 13. Estimated Tax Impact from Day Hockey Visitation Expenditures during 2013 (2013
Dollars) ............................................................................................................................................... 25
Table 14. Estimated Impact on the 15-Mile Radius Regional Economy from Night Hockey
Visitation Expenditures during 2013 (2013 Dollars) ......................................................................... 26
Table 15. Estimated Tax Impact from Night Hockey Visitation Expenditures during 2013 (2013
Dollars) ............................................................................................................................................... 27
Table 16. Estimated Impact on the 15-Mile Radius Regional Economy from Day Concert Visitation
Expenditures during 2013 (2013 Dollars) .......................................................................................... 28
iii
Table 17. Estimated Tax Impact from Day Concert Visitation Expenditures during 2013 (2013
Dollars) ............................................................................................................................................... 29
Table 18. Estimated Impact on the 15-Mile Radius Regional Economy from Night Concert
Table 19. Estimated Tax Impact from Night Concert Visitation Expenditures during 2013 (2013
Dollars) ............................................................................................................................................... 31
Table 20. Estimated Impact on the 15-Mile Radius Regional Economy from Day Entertainment
Show Visitation Expenditures during 2013 (2013 Dollars) ............................................................... 32
Table 21. Estimated Tax Impact from Day Entertainment Show Visitation Expenditures during
2013 (2013 Dollars) ........................................................................................................................... 33
Table 22. Estimated Impact on the 15-Mile Radius Regional Economy from Night Entertainment
Show Visitation Expenditures during 2013 (2013 Dollars) ............................................................... 34
Table 23. Estimated Tax Impact from Night Entertainment Show Visitation Expenditures during
2013 (2013 Dollars) ........................................................................................................................... 35
Table 24. Estimated Impact on the 15-Mile Radius Regional Economy from Day Family Show
Table 25. Estimated Tax Impact from Day Family Show Visitation Expenditures during 2013 (2013
Dollars) ............................................................................................................................................... 37
Table 26. Estimated Impact on the 15-Mile Radius Regional Economy from Night Family Show
Table 27. Estimated Tax Impact from Night Family Show Visitation Expenditures during 2013
(2013 Dollars) .................................................................................................................................... 39
Table 28. Spending Data Used in Estimating the Impact from the Jehovah’s Witnesses Convention
and the Northeastern Pennsylvania Synod of the Evangelical Lutheran Church in America (ELCA)
Convention on the 15-Mile Radius Regional Economy during 2013 ................................................ 40
Table 29. Estimated Impact on the 15-Mile Radius Regional Economy from the Jehovah’s
Witnesses Convention during 2013 (2013 Dollars) ........................................................................... 41
Table 30. Estimated Tax Impact from the Jehovah’s Witnesses Convention during 2013 (2013
Dollars) ............................................................................................................................................... 42
Table 31. Estimated Impact on the 15-Mile Radius Regional Economy from the Northeastern
Pennsylvania Synod of the Evangelical Lutheran Church in America Convention during 2013 (2013
Dollars) ............................................................................................................................................... 43
iv
Table 32. Estimated Tax Impact from the Northeastern Pennsylvania Synod of the Evangelical
Lutheran Church in America Convention during 2013 (2013 Dollars) ............................................. 44
Table 33. Estimated Impact on the 15-Mile Radius Regional Economy from the Spending by
Attendees at the Jehovah’s Witnesses and Northeastern Pennsylvania Synod of the Evangelical
Lutheran Church in America Conventions during 2013 (2013 Dollars) ............................................ 45
Table 34. Estimated Tax Impact from the Spending by Attendees at the Jehovah’s Witnesses and
Northeastern Pennsylvania Synod of the Evangelical Lutheran Church in America Conventions
during 2013 (2013 Dollars) ................................................................................................................ 46
Table 35. Estimated Impact on the 15-Mile Radius Regional Economy from the Spending by People
who Attend Graduations during 2013 (2013 Dollars) ........................................................................ 47
Table 36. Estimated Tax Impact from the Spending by People who Attend Graduations during 2013
(2013 Dollars) .................................................................................................................................... 48
Table 37. Estimated Impact on the 15-Mile Radius Regional Economy from the Spending by People
who Attend the Northeastern Pennsylvania Home and Garden Show during 2013 (2013 Dollars) .. 49
Table 38. Estimated Tax Impact from the Spending by People who Attend the Northeastern
Pennsylvania Home and Garden Show during 2013 (2013 Dollars) ................................................. 50
Table 39. Estimated Impact on the 15-Mile Radius Regional Economy from Total Event Attendee
Spending during 2013 (2013 Dollars) ................................................................................................ 51
Table 40. Estimated Tax Impact from Total Event Attendee Spending during 2013 (2013 Dollars) 52
Table 41. Performer and Exhibitor Per Person Spending Data Used in Estimating the Impact from
Family, Entertainment and Trade Shows, and Concerts during 2013 (2013 Dollars) ....................... 53
Performers who Travel by Bus and Dine at a Restaurant (2013 Dollars) .......................................... 54
Table 43. Estimated Tax Impact from the Spending by Performers who Travel by Bus and Dine at a
Restaurant (2013 Dollars) .................................................................................................................. 55
Performers who Travel by Bus and Dine at the Arena (2013 Dollars) .............................................. 56
Table 45. Estimated Tax Impact from the Spending by Performers who Travel by Bus and Dine at
the Arena (2013 Dollars) .................................................................................................................... 57
Performers who Travel by Bus, Have Additional Trailers and Dine at the Arena (2013 Dollars) .... 58
v
Table 47. Estimated Tax Impact from Performers who Travel by Bus, Have Additional Trailers and
Dine at the Arena (2013 Dollars) ....................................................................................................... 59
Performers who Stay in a Hotel and Dine at a Restaurant (2013 Dollars)......................................... 60
Table 49. Estimated Tax Impact from the Spending by Performers who Stay in a Hotel and Dine at
a Restaurant (2013 Dollars)................................................................................................................ 61
Performers who Stay in a Hotel and Dine at the Arena (2013 Dollars) ............................................. 62
Table 51. Estimated Tax Impact from the Spending by Performers who Stay in a Hotel and Dine at
the Arena (2013 Dollars) .................................................................................................................... 63
Performers who Travel by Train and Dine on the Train (2013 Dollars)............................................ 64
Table 53. Estimated Tax Impact from the Spending by Performers who Travel by Train and Dine on
the Train (2013 Dollars) ..................................................................................................................... 65
Table 54. Estimated Impact on the 15-Mile Radius Regional Economy from the Spending by NonLocal Vendors at the Northeastern Pennsylvania Home and Garden Show (2013 Dollars) .............. 66
Table 55. Estimated Tax Impact from the Spending by Non-Local Vendors at the Northeastern
Pennsylvania Home and Garden Show (2013 Dollars) ...................................................................... 67
Performers and Exhibitors at Trade Shows during 2013 during 2013 (2013 Dollars)....................... 68
Table 57. Estimated Tax Impact from the Spending by Performers and Exhibitors at Trade Shows
during 2013 (2013 Dollars) ................................................................................................................ 69
Table 58. Estimated Impact on the 15-Mile Radius Regional Economy from Visiting Hockey Team
Expenditures (2013 Dollars) .............................................................................................................. 70
Table 59. Estimated Tax Impact from Visiting Hockey Team Expenditures (2013 Dollars) ............ 71
Table 60. Total Estimated Impact on the 15-Mile Radius Regional Economy from the Spending by
People who are Performers, Exhibitors at Trade Shows or Members of the Visiting Hockey Team
during 2013 (2013 Dollars) ................................................................................................................ 72
Table 61. Total Estimated Tax Impact from the Spending by Performers, Exhibitors at Trade Shows
or Members of the Visiting Hockey Team during 2013 (2013 Dollars) ............................................ 73
vi
Table 62. Total Estimated Impact on the 15-Mile Radius Regional Economy from Visitation during
2013 (2013 Dollars) ........................................................................................................................... 74
Table 63. Total Estimated Tax Impact from Visitation during 2013 (2013 Dollars)......................... 75
Table 64. Total Estimated Impact on a the 15-Mile Radius Regional Economy from Operation and
Visitation during 2013 (2013 Dollars) ............................................................................................... 76
Table 65. Total Estimated Tax Impact from Operation and Visitation during 2013 (2013 Dollars) . 77
Table 66. Data Used in Estimating the Impact on the Pennsylvania Economy from the Construction
of the New Savory Concessions and Bar during 2014 and 2015 ....................................................... 78
Table 67. Estimated Impact on the Pennsylvania Economy from the Construction of the New
Savory Concessions and Bar during 2014 and 2015 (Standardized Dollars) .................................... 78
Table 68. Estimated Tax Impact from the Construction of the New Savory Concessions and Bar
during 2014 and 2015 (Standardized Dollars) ................................................................................... 79
Table 69. Estimated Impact on the 15-Mile Radius Regional Economy from the Operation of the
New Savory Concessions and Bar during 2016 (2016 Dollars)......................................................... 80
Table 70. Estimated Tax Impact from the Operation of the New Savory Concessions and Bar during
2016 (2016 Dollars) ........................................................................................................................... 81
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Executive Summary
Built on previously mine-scarred land, the Mohegan Sun Arena at Casey Plaza was opened
on November 13, 1999 when the Wilkes-Barre/Scranton Penguins made their home debut with a 42 victory over the Kentucky Thoroughblades, who are now the San Jose Barracuda.
The arena has had several names since its opening; it was first called the Northeastern
Pennsylvania Civic Arena before becoming First Union Arena at Casey Plaza and then Wachovia
Arena at Casey Plaza, after a bank merger. In January 2010, the naming rights were purchased by
Downs Racing, LP and the name of the arena was changed to Mohegan Sun Arena at Casey Plaza.
In its fifteen year history, many hockey games, concerts, entertainment shows, circuses and
trade shows, along with a Women’s National Basketball Association (WNBA) exhibition game,
have been held at the arena. On average, ticketed events draw over 360,000 attendees annually.
People travel from all over to see these events.
The arena contributes to the regional and state economy in several ways. Workers at the
arena itself and with the hockey team, through their spending of wages, support jobs in other
industries. This cycle continues with the workers in other industries spending their earnings on
items in additional other industries until the dollar leaks out of the economy. The arena also
contributes to the regional economy by purchasing goods and services from local sources that are
used in its operation.
Sporting event and entertainment show attendees, who live outside of the impact region,
provide new spending to the economy in terms of purchasing overnight lodging, restaurant meals,
gasoline and other items while attending an event. This spending supports jobs in the local
economy.
Entertainers, including musicians and their entourages, circus actors and comedians, have
provided shows at the arena over the years. Their spending on lodging; diesel fuel if they travel by
bus; restaurant meals; catered food through SAVOR, the catering division of the arena management
company, SMG; and in some cases, food purchases from grocery stores, along with purchasing of
other items would support jobs in the local economy.
In May 2014, the Board of Directors of the Luzerne County Convention Center Authority
and the SMG Management Team engaged the Northeastern Pennsylvania Alliance to conduct an
economic impact analysis of the arena. After several meetings, a scope of work was defined and a
contract was executed in September 2014.
This economic impact analysis consists of three distinct scenarios including:
1. The overall impact of the operations of the arena, which includes the impact from visitors
traveling from outside the impact region.
2. The impact from the construction and operations of the newly proposed Savory Concessions
and Bar, which would be in operation within the arena in 2016.
3. The negative impact that would be evident if the arena did not exist.
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Impact of Operation and Visitation - 2013
The first scenario is the impact from operating the arena and visitor spending in 2013. The
estimated impact is the following:
 Total estimated output or economic activity of $62.6 million
 Total estimated employment supported of 1,141 jobs, which can be either full-time or parttime
 Total estimated labor income of $22.6 million
 Total estimated taxes of $9.9 million, which consists of an estimated $5.0 million in federal
taxes and an estimated $4.9 million in state and local taxes
Key Assumptions
•
It was assumed that 80 percent of the workers at the arena itself who are residents of Lackawanna and Luzerne
counties reside in an area that is within 15 miles of the arena. Since the impact region is a 15-mile radius,
workers who reside in other counties such as Carbon and Monroe are excluded.
•
Visitation spending occurs when the visitor travels from beyond 15 miles to attend an event. Lodging is based
on people who reside beyond 50 miles from the arena. This is based on federal government travel guidelines.
This does not apply to visitation related to hockey. This is based on the fact that most people would not travel
outside the region to see an event because they would have other recreational spending opportunities within
the region.
•
An assumption was made that the full-time personnel with the Wilkes-Barre/Scranton Penguins reside in the
15-mile radius region year round and that the players reside in the same region from September through May.
•
Since it is not known the number of people who travel with performers, some information was gathered from
online sources and others were based on assumptions. A list of events was provided by SMG.
Impact from the Construction and Operation of the Newly Proposed Savory
Concessions and Bar
The impact from the construction of the new Savory Concessions and Bar on the
Pennsylvania economy is from 2015. The estimated impact is the following:
 Total estimated employment supported of 48 jobs in 2015, which can be either full-time or
part-time
 Total estimated labor income of $3.0 million
 Total estimated taxes of $820,000, which consists of an estimated $560,000 in federal taxes
and an estimated $260,000 in state and local taxes
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Key Assumptions
•
This impact is at the state level because not all construction materials are available at the county level.
•
Due to the changing value of the dollar from year to year, the dollar amounts are presented in standardized
dollars, which are set to 2015.
The operation of the new Savory Concessions and Bar in 2016 is based on an impact region
that consists of a 15-mile radius from the arena. This impact will occur annually as long as the
business is operating. The estimated impact is the following:
 Total estimated output or economic activity of $860,000
 Total estimated employment supported of 11 jobs, which can be either full-time or part-time
 Total estimated labor income of $340,000
 Total estimated taxes of $125,000, which consists of an estimated $74,000 in federal taxes
and an estimated $51,000 in state and local taxes
Key Assumption
•
It was assumed that the workers at the new Savory Concessions and Bar will reside within a 15-mile radius of
the arena.
The Negative Impact Due to the Nonexistence of the Arena
If the arena did not exist, some people would choose to travel outside the region to attend an
event, thus reducing family discretionary spending in our regional economy. For example, if
someone traveled to another area to see a show, they would spend dollars on gasoline to and from
the show, meals at a restaurant, snack foods, souvenirs and depending on distance, an overnight
stay, resulting in lost revenue or “leakage” to another region. Furthermore, it is known that the loss
would be greater because some people within the 15-mile radius area would travel outside the
region to spend discretionary dollars.
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About the Northeastern Pennsylvania Alliance
The Northeastern Pennsylvania Alliance (NEPA Alliance) is a regional multi-county
economic development agency providing leadership, planning, expertise and services to regional
and local governments, businesses, institutions and individuals through innovative and beneficial
collaborations and partnerships to enhance the economic development and quality of life of the area.
The NEPA Alliance was organized in 1964 by the private sector that saw the need for a
regional approach to economic and community development issues within the region. The NEPA
Alliance is now a public/private sector partnership with representation from government and nongovernmental private sector organizations. The goal of the NEPA Alliance is to provide a quality
menu of programs and valuable services that best match the needs of our partners and add value to
our region.
The NEPA Alliance carries out its mission within the counties of Carbon, Lackawanna,
Luzerne, Monroe, Pike, Schuylkill and Wayne, which have a total population of 1,015,692 people
(according to estimates provided by the U.S. Census Bureau, July 1, 2014) and covers 4,476 square
miles.
The NEPA Alliance is one of seven regional agencies called Local Development Districts
(LDDs). LDDs help coordinate community and economic development activities in the
Commonwealth of Pennsylvania.
The NEPA Alliance is guided by a fifty (50) member Board of Directors, headed by Board
Chairperson, Mary Beth Wood, of which forty-five (45) members have voting capabilities.
Members of the Board of Directors represent industries, labor, governments, general businesses,
professionals and citizens in each of the seven counties that the NEPA Alliance serves.
Jeffrey K. Box, President & CEO of the NEPA Alliance, provides executive leadership
working with state and federal legislators to expand and explore opportunities that will be beneficial
for northeastern Pennsylvania.
Economic Impact Analysis Team
The Community Services Division highlights NEPA’s emphasis on community
development, nonprofit assistance, research, telecommunications and energy conservation and
efficiency initiatives. The division includes the operation of the Nonprofit & Community Assistance
Center and the Research & Information Center that provide valuable services to nonprofits, local
governments and businesses.
The division is lead by Kurt Bauman, Vice President Community Services and Executive
Director of the Nonprofit & Community Assistance Center. Steve Zaricki, Research & Information
Manager, is the lead researcher and technical service provider for Economic Impact Modeling
services. Kurt and Steve work as a team to assist clients in the scoping of Economic Impact
Analysis projects; Kurt, drawing on his expertise in grant writing, program development and project
evaluation; and Steve, utilizing his years of experience in using IMPLAN and other models to help
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determine the impact of economic engines and proposed development initiatives in the region and
throughout the Commonwealth. The end result is an analysis that includes the overall impact of
current or proposed business/venue/project that could be used to tell the story and develop public
support for a project. The analysis can also be used to assist government agencies and elected
officials to compare, evaluate and rank viable projects for consideration for relevant aid (grants,
loans, rebates, technical services, etc.).
Since August 2002, Steve Zaricki has been the Research & Information Manager at the
NEPA Alliance. He has a bachelor’s degree in agricultural and resource economics, with an
emphasis in agribusiness management, from the University of Maryland, and a master’s degree in
agricultural economics, with a concentration in rural economic development, from West Virginia
University. His master’s thesis topic was the economic impact of the, proposed at the time, Canaan
Valley National Wildlife Refuge. He has completed additional graduate study beyond the master’s
degree in agricultural economics at the University of Kentucky. He has worked at the University of
Virginia in its library system and in the Center for Economic and Policy Studies of the Weldon
Cooper Center for Public Service. He has received training from Business Retention & Expansion
International in its Certified Master Consultant Training Program and is a graduate of the South
Carolina Economic Development Institute and the Economic Development Course in Pennsylvania.
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About the Mohegan Sun Arena at Casey Plaza
Mohegan Sun Arena at Casey Plaza is owned by the Luzerne County Convention Center
Authority, a government body appointed by Luzerne County.
The arena is managed by SMG, the world leader in entertainment and sports facilities
management with catering and concessions services provided by SAVOR at Mohegan Sun Arena.
The arena opened on November 13, 1999 when the Wilkes-Barre/Scranton Penguins of the
American Hockey League made their debut.
Originally called the Northeastern Pennsylvania Civic Arena, the facility became First
Union Arena at Casey Plaza when First Union Bank purchased the naming rights. The name
changed to Wachovia Arena at Casey Plaza in 2002 after a corporate merger. In January 2010,
Downs Racing, LP purchased the naming rights and changed the venue name to Mohegan Sun
Arena at Casey Plaza.
The arena’s primary tenant is the Wilkes-Barre/Scranton Penguins hockey team, an
American Hockey League affiliate of the National Hockey League Pittsburgh Penguins.
With over 8,000 permanent seats and a capacity of nearly 10,000 for concerts, the arena has
played host to some of the biggest names in entertainment, including Elton John, Cher, Neil
Diamond, James Taylor, Carole King, Barry Manilow, Janet Jackson, The Eagles, AC/DC and
Simon & Garfunkel.
The above is from the Mohegan Sun Arena website, http://mohegansunarenapa.com/aboutthe-arena/.
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Economic Impact Modeling
NEPA Alliance uses IMPLAN® for economic impact modeling services.1 IMPLAN®, or Impact
Analysis for Planning, is a software package that was developed by the Department of Applied Economics at
the University of Minnesota and the U.S. Forest Service Land Management Planning Unit in Fort Collins,
Colorado. Estimated direct, indirect (supplier) and induced (household spending) impacts in terms of the
number of jobs, personal income and output, or economic activity, are determined by the model.
The software that was used is Version 3, which is available from IMPLAN Group, LLC of
Huntersville, North Carolina and is well-known in both the economic development professional and
academic communities. Data are available at the national, state, county and zip code levels. IMPLAN® has a
feature where information can be used for current and future years.
The results include estimates of the direct, indirect and induced impacts from construction, operation
and visitation. Direct impacts consist of permanent jobs, wages and output of the project company itself,
construction or tourism. Indirect impacts are the jobs, wages and output created by businesses, which
provide goods and services essential to the construction of the project or to the operation of the company.
They are also referred to as “supplier” impacts. These businesses range from manufacturers (who make
goods) to wholesalers (who deliver goods) to janitorial firms that clean buildings. Induced impacts are
spending of wages and salaries by the direct and indirect employees on items such as food, housing,
transportation and medical services. This spending creates induced employment in various sectors of the
economy. Induced impacts are also commonly referred to as “consumer” impacts. The total impact is the
sum of the direct, indirect and induced impacts.
Some measures of economic impact are output, employee compensation, proprietor income, indirect
business taxes, total value added and employment. Employment can be either full-time or part-time jobs.
Labor Income is the sum of Employee Compensation and Proprietor Income. According to
IMPLAN Group, LLC, “Proprietor Income consists of payments received by self-employed individuals and
unincorporated business owners.” Total Value Added is the sum of Labor Income, Other Property Type
Income and Indirect Business Taxes. According to IMPLAN Group, LLC, “Other Property Type Income
represents Property Income minus Proprietor Income. It includes corporate profits, capital consumption
allowance, payments for rent, dividends, royalties and interest income.” Output, also referred to as sales or
economic activity, relates to the gross receipts for goods and services generated by the company’s operations.
In regards to fiscal impact, taxes at the federal and state and local levels are presented.
Unfortunately, the state and local tax impacts are combined and therefore, cannot be dissected. Some of the
federal taxes are employee and employer contribution to social security, excise taxes, corporate profits taxes
and personal income taxes. Some of the state and local taxes are dividends, employee and employer
contribution to social security, sales taxes, property taxes, motor vehicle license fees, personal income taxes
and fishing and hunting license fees.
The impacts indicated in this report are estimates and the actual numbers can be higher or
lower than estimated.
1
IMPLAN® is a registered trademark of IMPLAN Group, LLC.
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Assumptions
In this economic impact analysis, some assumptions had to be made and they are indicated
below.
Impact Region
•
The impact region is based on an October 2003 OmniStats report that contains information about the average
commuting distance by the U.S. Department of Transportation, Bureau of Transportation Statistics. According
to the report, the average commuter travels approximately 15 miles one way to get to work.
Arena Payroll
•
It was assumed that 80 percent of the workers at the arena itself who are residents of Lackawanna and Luzerne
counties reside in an area that is within 15 miles of the arena. Since the impact region is a 15-mile radius,
workers who reside in other counties such as Carbon and Monroe are excluded.
Hockey Team Operations
•
An assumption was made that the full-time personnel with the Wilkes-Barre/Scranton Penguins reside in the
15-mile radius region year round and that the players reside in the same region from September through May.
•
It is realized that members of the hockey team, along with their mascot, “Tux,” participate in charitable
events, which provide an economic impact to the region. Due to the unavailability of related data, this impact
is not included in the analysis.
General Visitation
•
Visitation numbers are based on zip code data from June 2012 Ticketmaster sales, which were generated in
June 2014 and provided by SMG. It is realized that there would be additional visitation by patrons who visit
the Box Office and the impact from those sales is not included due to survey data being unavailable.
•
Visitation spending occurs when the visitor travels from beyond 15 miles to attend an event. Lodging is based
on people who reside beyond 50 miles from the arena. This is based on federal government travel guidelines.
This does not apply to visitation related to hockey. This is based on the fact that most people would not travel
outside the region to see an event because they would have other recreational spending opportunities within
the region.
•
Assumptions regarding expenditures were made based on the Continental United States (CONUS) Per Diem
Rates and on reasonable generalizations. Assumptions were made in regards to whether groups stay in hotels
with double occupancy, on buses or on a train, in the case of a circus. In the case of trade shows, assumptions
were made in regards to the number of people who are non-local and stay overnight. In regards to food
purchases, some groups purchase meals from a restaurant, some purchase meals from the catering facility at
the arena and some purchase food from a grocery store and have professional chefs on staff.
•
There is no accountability for casuals and time switchers in the analysis. Casuals are people who were already
in the community and were there because of other reasons. Time switchers are visitors who were planning a
visit to the community and switched their time because of the event that they wanted to attend at the arena.
•
This economic impact analysis does not include the spending on tickets, which typically accrues to performers.
Page 8 of 84
•
It is realized that there would be an economic impact from the spending by members of the media who are
from outside the region and travel to the arena to provide coverage of a sporting event or a review of a
performer. Due to the lack of a number of press visitors and the lack of spending data, this impact is not
presented.
•
This economic impact analysis does not include the spending by people who are affiliated with family,
entertainment and trade shows, and concerts on food and other supplies that are used in the care of animals or
for automotive expenses such as repairs and replacement tires. Also not included is spending by individuals on
emergency health care and prescriptions.
Visitation by Event Attendees
•
It was assumed that 1 percent of the hockey spectators would stay overnight.
•
There were several graduations held at the arena during 2013. Since it is not known how many people
attended the ceremonies, some assumptions had to be made. It was assumed that 5 percent of the graduates
who were not from Luzerne County would bring 4 guests and purchase a restaurant dinner at $23 per person
and gasoline at $5 per person at locations that are within a 5-mile radius of the arena. This applies to the
graduation ceremonies of The Commonwealth Medical College, Marywood University and The University of
Scranton. Since King’s College and Luzerne County Community College are located in Luzerne County, the
resulting impact will be from the college’s themselves and not from the arena.
•
An assumption was made that 3,750 people attended the Jehovah’s Witnesses convention on each of two
weekends. Based on a Penn State Center for Economic & Community Development study, 97.4 percent of
attendees at a religious conference in the Harrisburg area were from outside Cumberland and Dauphin
counties. Therefore, that percentage was used in determining that 7,305 people attended the convention from
outside the 15-mile radius area.
•
As part of their mission, members of the Jehovah’s Witnesses clean the arena. Since the amount spent on
cleaning supplies is not known, the economic impact from that purchase cannot be estimated.
•
An assumption was made that for the convention of the Northeastern Pennsylvania Synod of the Evangelical
Lutheran Church in America, 1,000 people attended the convention and 600 people stayed overnight.
Visitation by Event Performers, Trade Show Exhibitors and Members of Opposing Hockey Teams
•
Since it is not known the number of people who travel with performers, some information was gathered from
online sources and others were based on assumptions. A list of events was provided by SMG.
•
Based on a list of events that was provided by SMG, assumptions were made in regards to the number of
people who travel with performers, in most cases.
•
Based on a January 25, 2014 article in “The Times Leader” about the 2013 Northeastern Pennsylvania Home
and Garden Show, there were 125 vendors. When a 56.6 non-local percent rate from the Pennsylvania Home
Show was applied, the result was that 71 vendors were non-local.
•
For other trade shows, an assumption was made that there were three non-local booths with 2 people at each
booth.
Page 9 of 84
•
During 2013, the Ringling Brothers and Barnum & Bailey Circus presented 5 performances over 4 days at the
arena. The circus travels by train that has a diner-like restaurant, the “Pie Car,” where a professional
culinary team prepares meals and several kitchens where employees can prepare meals. An assumption was
made that the circus purchases food from local grocery stores at a cost of $40 per person per day with no
snack food purchases. To account for any transportation expense between the train and the arena, an
assumption was made that there would be a $5 per person expense for gasoline. Another assumption that is
related to the circus is that there was no “parking fee” for its train while it is here.
Construction of the New Savory Concessions and Bar
•
An assumption was made that the impact region for construction of the new Savory Concessions and Bar to be
Pennsylvania. This is because not all of the construction materials are manufactured within Luzerne County.
To account for any purchases of materials from non-Pennsylvania sources, a Local Purchase Percentage was
used.
•
It was assumed that all of the furniture, fixtures and equipment that will be used in the new Savory
Concessions and Bar was not manufactured or purchased from Pennsylvania sources. Consequently, they are
not included in the economic impact analysis.
•
Due to the changing value of the dollar from year to year, the dollar amounts are presented in standardized
dollars, which are set to 2015.
Operation of the New Savory Concessions and Bar
•
It was assumed that the workers at the new Savory Concessions and Bar will reside within a 15-mile radius of
the arena.
Page 10 of 84
Definition of Impact Regions
With the exception of the impact from the construction of Savory Concessions and Bar,
which is on the Pennsylvania economy, all of the impacts are based on a 15-mile radius from the
arena. This distance was based on an October 2003 OmniStats report by the U.S. Department of
Transportation, Bureau of Transportation Statistics. IMPLAN® data based on zip codes were used in
the analysis and a list of zip codes that are within the 15-mile radius of the arena are provided in
Table 1.
Table 1. Zip Codes within a 15-Mile Radius of Mohegan Sun Arena at Casey Plaza
Zip Code
Place
County
18507
MOOSIC
LACKAWANNA
18518
OLD FORGE
LACKAWANNA
18653
RANSOM
LACKAWANNA
LACKAWANNA
18517
SCRANTON
LACKAWANNA
18504
SCRANTON
LACKAWANNA
18505
SCRANTON
LACKAWANNA
18501
SCRANTON
18706
ASHLEY
LUZERNE
18641
AVOCA
LUZERNE
18602
BEAR CREEK
LUZERNE
18702
BEAR CREEK TOWNSHIP
LUZERNE
18704
COURTDALE
LUZERNE
18612
DALLAS
LUZERNE
18642
DURYEA
LUZERNE
18643
EXETER
LUZERNE
18224
FREELAND
LUZERNE
18617
GLEN LYON
LUZERNE
18618
HARVEYS LAKE
LUZERNE
18705
HILLDALE
LUZERNE
18640
HUGHESTOWN
LUZERNE
18621
HUNLOCK CREEK
LUZERNE
18708
JACKSON TOWNSHIP
LUZERNE
18651
LARKSVILLE
LUZERNE
18627
LEHMAN
LUZERNE
18709
LUZERNE
LUZERNE
18707
MOUNTAIN TOP
LUZERNE
18634
NANTICOKE
LUZERNE
18644
PITTSTON
LUZERNE
18654
SHAWANESE
LUZERNE
18661
WHITE HAVEN
LUZERNE
18711
WILKES-BARRE
LUZERNE
18766
WILKES-BARRE
LUZERNE
18765
WILKES-BARRE
LUZERNE
Page 11 of 84
Zip Code
Place
18764
WILKES-BARRE
18773
WILKES-BARRE
18762
WILKES-BARRE
18710
WILKES-BARRE
18703
WILKES-BARRE
18701
WILKES-BARRE
Source: GetZips.com and FreeMapTools.com
Page 12 of 84
County
LUZERNE
LUZERNE
LUZERNE
LUZERNE
LUZERNE
LUZERNE
Financial and Visitation Data
Payroll Expenses during 2013
The economic impact from payroll expenses is based on the number of direct jobs along
with the amount of employee compensation and amount of sales. Since there are arena employees
who reside in areas that are outside the 15-mile radius of the arena, they are not included in the
analysis. However, it is realized that there would be spending by these employees on restaurant
meals and gasoline while they are in the region. There are also employees who are part-time
stagehands and reside in other parts of Pennsylvania and out of state. Since it is not known which
counties in Pennsylvania where they reside and that data are not available for other states, then it is
assumed that their entire earnings will be spent outside the seven-county impact region. The
employee compensation and number of jobs were provided by SMG.
For the impact from arena payroll, which is based on the number of full-time and part-time
employees, and part-time stagehands, along with their compensation, which includes salaries and
fringe benefits, an impact region which is the area that is within a 15-mile radius of the arena was
used. This information was provided by SMG, the managing company of the arena.
Tables 2 and 3 provide the estimated impact on the 15-mile radius regional economy from
payroll expenses during 2013.
Table 2. Estimated Impact on the 15-Mile Radius Regional Economy from Payroll Expenses
during 2013 (2013 Dollars)
Employee Compensation
+Proprietor Income
=Labor Income
+Other Property Type Income
+Indirect Business Taxes
=Total Value Added
Output
Employment Supported
Direct
$939,633
$468,601
$1,408,234
$806,379
$933,762
$3,148,375
$10,938,167
507.0
+Indirect
$1,230,765
$197,732
$1,428,497
$736,576
$246,666
$2,411,739
$4,496,548
50.6
Source: IMPLAN®
Page 13 of 84
+Induced
$581,930
$77,169
$659,099
$488,882
$120,238
$1,268,219
$2,003,965
17.4
=Total
$2,752,328
$743,502
$3,495,830
$2,031,837
$1,300,666
$6,828,333
$17,438,680
574.9
Table 3. Estimated Tax Impact from Payroll Expenses during 2013 (2013 Dollars)
Federal Tax Impact
Social Ins Tax – Employee Contribution
Social Ins Tax – Employer Contribution
Indirect Bus Tax: Excise Taxes
Indirect Bus Tax: Custom Duty
Indirect Bus Tax: Fed Non-Taxes
Corporate Profits Tax
Personal Tax: Income Tax
Total Federal Tax
State and Local Tax Impact
Dividends
Indirect Bus Tax: Sales Tax
Indirect Bus Tax: Property Tax
Indirect Bus Tax: Motor Vehicle License
Indirect Bus Tax: Severance Tax
Indirect Bus Tax: Other Taxes
Indirect Bus Tax: S/L Non-Taxes
Personal Tax: Non-Taxes (Fines – Fees)
Personal Tax: Motor Vehicle License
Personal Tax: Property Taxes
Personal Tax: Other Tax (Fish/Hunt)
Total State and Local Tax
Grand Total
Employee
Compensation
$144,114
$187,830
Proprietor
Income
$26,902
Indirect Business
Tax
Households
Corporations
$113,085
$44,833
$12,848
$137,915
$219,600
$331,944
$26,902
$1,517
$2,983
$0
$170,766
$219,600
Total
$171,016
$187,830
$113,085
$44,833
$12,848
$137,915
$219,600
$137,915
$887,127
$773
$773
$1,517
$2,983
$544,615
$482,312
$9,893
$0
$88,145
$4,935
$26,323
$70,423
$11,411
$2,834
$1,295
$1,572
$544,615
$482,312
$9,893
$0
$88,145
$4,935
$26,323
$70,423
$11,411
$2,834
$1,295
$1,572
$4,500
$0
$1,129,900
$87,535
$27,096
$1,249,031
$336,444
$26,902
$1,300,666
$307,135
$165,011
$2,136,158
IMPLAN®
Source:
Page 14 of 84
Arena Operating Expenses during 2013
Based on the 2013 Schedule of Operating Expenses that was provided by the Luzerne
County Convention Center Authority, Tables 4 and 5 provide the estimated impact on the 15mile radius regional economy from arena operation expenses during 2013.
Table 4. Estimated Impact on the 15-Mile Radius Region Economy from Arena Operating
Expenses during 2013 (2013 Dollars)
+Proprietor Income
=Labor Income
=Total Value Added
Output
Direct
$779,426
$113,858
$893,284
$411,122
$163,506
$1,467,912
$2,889,133
37.3
+Indirect
$265,616
$46,467
$312,083
$165,797
$47,346
$525,226
$931,703
9.4
Source: IMPLAN®
Page 15 of 84
+Induced
$246,981
$32,758
$279,739
$207,605
$51,083
$538,427
$850,692
7.4
=Total
$1,292,023
$193,083
$1,485,106
$784,524
$261,935
$2,531,565
$4,671,528
54.1
Table 5. Estimated Tax Impact from Arena Operating Expenses during 2013 (2013 Dollars)
Federal Tax Impact
Total Federal Tax
Dividends
Grand Total
Source: IMPLAN
Employee
Compensation
$67,651
$88,173
Proprietor
Income
$6,986
Indirect Business
Tax
Households
Corporations
$22,774
$9,029
$2,587
$53,251
$92,550
$155,824
$6,986
$712
$1,400
$0
$34,390
$92,550
Total
$74,637
$88,173
$22,774
$9,029
$2,587
$53,251
$92,550
$53,251
$343,001
$298
$298
$712
$1,400
$109,677
$97,130
$1,992
$0
$17,751
$994
$10,164
$29,680
$4,809
$1,194
$546
$663
$109,677
$97,130
$1,992
$0
$17,751
$994
$10,164
$29,680
$4,809
$1,194
$546
$663
$2,112
$0
$227,544
$36,892
$10,462
$277,010
$157,936
$6,986
$261,934
$129,442
$63,713
$620,011
®
Page 16 of 84
Hockey Team Operations
It was assumed that the management, support staff and players of the WilkesBarre/Scranton Penguins reside within a 15-mile radius of the arena. An assumption was made
that the full-time personnel who are not players live in the area year round and the players are in
the area from September through May. Consequently, not all of the income earned by a player
stays in the region.
A major component of the impact analysis originates from the Wilkes-Barre/Scranton
Penguins hockey team. An average of the number of full-time employees who are not players,
along with their salaries and benefits, for the seasons from 2009-2010 to 2012-2013 was used.
To account for the players, the total salaries from the opening night roster of the 2012-2013
season were used. This information is from http://nhlnumbers.com.
Also included in the economic impact from the operation of the hockey team is the
average amount of sales of team merchandise and the average ticket price. With the exception of
the players’ salary information, this information was provided by the Wilkes-Barre/Scranton
Penguins.
It is realized that members of the hockey team, along with their mascot, “Tux,”
participate in charitable events, which provide an economic impact to the region. Due to the
unavailability of related data, this impact is not included in the analysis.
Therefore, based on information provided by the Wilkes-Barre/Scranton Penguins,
Tables 6 and 7 provide the estimated impact on the 15-mile radius region economy from the
operation of the hockey team during 2013.
Table 6. Estimated Impact on the 15-Mile Radius Region Economy from the Operation of
the Wilkes-Barre/Scranton Penguins during 2013 (2013 Dollars)
+Proprietor Income
=Labor Income
=Total Value Added
Output
Direct
$2,944,225
$1,170,356
$4,114,581
($759,373)
$1,036,670
$4,391,878
$4,910,994
48.4
+Indirect
$379,857
$137,149
$517,006
$98,429
$128,264
$743,699
$1,281,474
13.9
Source: IMPLAN®
Page 17 of 84
+Induced
$949,502
$125,900
$1,075,402
$797,466
$196,090
$2,068,958
$3,269,434
28.3
=Total
$4,273,584
$1,433,405
$5,706,989
$136,522
$1,361,024
$7,204,535
$9,461,902
90.6
Table 7. Estimated Tax Impact from the Operation of the Wilkes-Barre/Scranton Penguins during 2013 (2013 Dollars)
Federal Tax Impact
Total Federal Tax
Dividends
Grand Total
Source: IMPLAN
Employee
Compensation
$223,768
$291,647
Proprietor
Income
$51,864
Indirect Business
Tax
Households
Corporations
$118,333
$46,913
$13,444
$9,267
$359,825
$515,415
$51,864
$2,356
$4,632
$0
$178,690
$359,825
Total
$275,632
$291,647
$118,333
$46,913
$13,444
$9,267
$359,825
$9,267
$1,115,061
$52
$52
$2,356
$4,632
$569,889
$504,695
$10,352
$0
$92,236
$5,164
$1,769
$115,392
$18,697
$4,643
$2,121
$2,576
$569,889
$504,695
$10,352
$0
$92,236
$5,164
$1,769
$115,392
$18,697
$4,643
$2,121
$2,576
$6,988
$0
$1,182,336
$143,429
$1,821
$1,334,574
$522,403
$51,864
$1,361,026
$503,254
$11,088
$2,449,635
®
Page 18 of 84
Total Operation
For the impact from arena operation expenses, which includes arena payroll, and hockey
team payroll expenses, the impact region is the 39 zip code region that is within 15 miles of the
arena. An assumption was made that a substantial amount of operation expenses would originate
from the Scranton – Wilkes-Barre area and that the management, support staff and players of the
hockey team reside within the same area. Tables 8 and 9 provide the estimated economic impact
from all operations.
Table 8. Estimated Impact on the 15-Mile Radius Region Economy from Total Operation
during 2013 (2013 Dollars)
+Proprietor Income
=Labor Income
=Total Value Added
Output
Direct
$4,663,284
$1,752,815
$6,416,099
$458,127
$2,133,937
$9,008,163
$18,38,295
592.7
+Indirect
$1,876,238
$381,348
$2,257,586
$1,000,802
$422,277
$3,680,665
$6,709,725
73.9
Source: IMPLAN®
Page 19 of 84
+Induced
$1,778,413
$235,826
$2,014,239
$1,493,952
$367,410
$3,875,601
$6,124,090
53.0
=Total
$8,317,935
$2,369,989
$10,687,924
$2,952,881
$2,923,624
$16,564,429
$31,572,110
719.6
Table 9. Estimated Tax Impact from Total Operation during 2013 (2013 Dollars)
Federal Tax Impact
Total Federal Tax
Dividends
Grand Total
Source: IMPLAN
Employee
Compensation
$435,534
$567,650
Proprietor
Income
$85,752
Indirect Business
Tax
Households
Corporations
$254,192
$100,775
$28,879
$200,433
$671,975
$1,003,184
$85,752
$4,585
$9,015
$0
$383,846
$671,975
Total
$521,286
$567,650
$254,192
$100,775
$28,879
$200,433
$671,975
$200,433
$2,345,190
$1,123
$1,123
$4,585
$9,015
$1,224,181
$1,084,137
$22,236
$0
$198,132
$11,093
$38,255
$215,495
$34,916
$8,671
$3,961
$4,810
$1,224,181
$1,084,137
$22,236
$0
$198,132
$11,093
$38,255
$215,495
$34,916
$8,671
$3,961
$4,810
$13,600
$0
$2,539,779
$267,853
$39,378
$2,860,610
$1,016,784
$85,752
$2,923,625
$939,828
$239,811
$5,205,800
®
Page 20 of 84
Visitation
Visitation to the arena occurs by event attendees, performers and exhibitors to trade
shows. The economic impact from spending by visitors of lodging, restaurant meals, gasoline
and other items should be included in an economic impact analysis of an arena. According to a
survey that was included in an economic impact analysis of the Sovereign Center in Berks
County, Pennsylvania by Lolita Paff, Ph.D., 77.1 percent would not have spent dollars on
shopping, gasoline, restaurant meals and an overnight stay if they did not purchase a ticket to a
concert or show at the Center. The same question was asked to hockey game attendees and the
response was 50.3 percent.
The estimated impact for event attendees is presented first and then followed by the
estimated impact for performers, exhibitors and members of visiting hockey teams.
Visitation by Event Attendees
The region for this impact consists of the zip codes that are within a 15-mile radius of the
arena. Since economic impact analysis is based on new spending within an impact region,
spending by people who visit the arena and reside within the impact region is not included in the
analysis. This spending is not included because people who live within the impact region have
the capability of spending dollars on other recreational activities. Therefore, new spending
occurs when people come from outside the 15-mile radius area to attend events at the arena.
To estimate the economic impact from the spending by visitors who have purchased
tickets for events such as concerts, family and entertainment shows and hockey games on
lodging, restaurant meals, gasoline and other items, zip code data from June 2012 Ticketmaster
sales, which was generated in June 2014, was used. It is realized that there are additional sales
from walk-up transactions at the Box Office and these sales are not included in the economic
impact because of data being unavailable.
Based on federal government travel guidelines, an overnight stay is justified if travel is
greater than 50 miles. Consequently, the region for a day visitor who contributes to the economic
impact of the arena consists of an area that is beyond 15 miles and not greater than 50 miles.
Therefore, an assumption was made that any visitor who lives beyond 50 miles would stay
overnight. In regards to hockey fans who stay overnight, an assumption was made that 1 percent
of them would stay overnight in a hotel.
Number of Visitors for Hockey
Based on a five-year average, the number of visitors for hockey, which is 200,455, was
provided by SMG. This number was coupled with the average ticket price over the 2009-2010 to
2012-2013 seasons of $18.01 that was provided by the Wilkes-Barre/Scranton Penguins in order
to calculate the sales of hockey tickets to be $3,610,195.
Page 21 of 84
Number of Visitors for Concerts, and Entertainment and Family Shows
The number of attendees was based on a five-year event average and was provided by
SMG. For the concerts, entertainment shows and family shows, the number of attendees was
multiplied by $45.46, which is the average cost per ticket adjusted for inflation. The average cost
per ticket of $44.14 was based on the average cost from June 2012 Ticketmaster data that was
provided by SMG.
Based on a five-year average, the number of visitors attending a concert that was used in
the analysis is 48,492 and the number of visitors attending an entertainment show is 46,950. The
number of visitors attending a family show is 68,936. These numbers were used in a proportion
to determine the number of visitors who live within a 15-mile radius, between 15 and 50 miles
and beyond 50 miles respectively. This proportion was based on June 12, 2012 Ticketmaster
Sales by Location data that was generated on June 9, 2014 and provided by SMG.
The numbers of visitors were then broken down into two groups for each type of event,
people who stay the day and people who stay overnight. The visitation numbers that were used
are in Table 10.
Table 10. Visitation Numbers Used in Estimating the Impact on the 15-Mile Radius
Regional Economy during 2013
Type of Visitor
Attend Hockey Game and Stay the Day
Attend Hockey Game and Stay Overnight
Attend Concert and Stay the Day
Attend Concert and Stay Overnight
Attend Entertainment Show and Stay the Day
Attend Entertainment Show and Stay Overnight
Attend Family Show and Stay the Day
Attend Family Show and Stay Overnight
Total
Number
142,120
1,436
23,568
14,829
22,848
14,376
33,474
21,061
273,712
Visitor Spending
Spending by people, who reside outside the impact region and attend an event at the
arena, provide an impact to the local economy. Spending data for people who attend a hockey
game, concert, entertainment event or family event, originated from the Longwoods Travel USA
2012 Visitor Report for the Poconos, which was accessed through the Pocono Mountains
Visitors Bureau website. This information was used whether the visitor spent the day or night.
Table 11 provides the spending data from “2012 Visitor Report, The Poconos,” by
Longwoods Travel USA. This information has been adjusted for 1 percent inflation from 2012 to
Page 22 of 84
2013, according to the U.S. Bureau of Labor Statistics Consumer Price Index (CPI) Inflation
Calculator. These data were used in estimating the impact from the spending by visitors who
attend hockey games, concerts, entertainment shows and family shows.
Table 11. Spectator Spending Data Used in Estimating the Impact on the 15-Mile Radius
Regional Economy during 2013 (2013 Dollars)
Type of Expenditure
Day
Amount
Recreation/Sightseeing/Entertainment
Restaurant Food and Beverage
Retail Purchases
Transportation at Destination
Total
$19.19
$18.18
$13.13
$9.09
$59.59
Night
Lodging
Retail Purchases
Recreation/Sightseeing/Entertainment
Total
$63.63
$31.31
$20.20
$19.19
$11.11
$145.44
Source: Longwoods Travel USA
Family, Entertainment and Trade Shows, Concerts and Graduations
Assumptions regarding expenditures were made based on the Continental United States
(CONUS) Per Diem Rates and on reasonable generalizations. Assumptions were made in regards
to whether groups stay in hotels with double occupancy, on buses or on a train, in the case of a
circus. In the case of trade shows, assumptions were made in regards to the number of people
who are non-local and stay overnight. In regards to food purchases, some groups purchase meals
from a restaurant, some purchase meals from the catering facility at the arena and some purchase
food from a grocery store and have professional chefs on staff.
There were several graduations held at the arena during 2013. Since it is not known how
many people attended the ceremonies, some assumptions had to be made. It was assumed that 5
percent of the graduates who were not from Luzerne County would bring 4 guests and purchase a
restaurant dinner at $23 per person and gasoline at $5 per person at locations that are within a 5mile radius of the arena. This applies to the graduation ceremonies of The Commonwealth
Medical College, Marywood University and The University of Scranton. Since King’s College
and Luzerne County Community College are located in Luzerne County, the resulting impact
will be from the college’s themselves and not from the arena.
Page 23 of 84
Day Hockey Visitation
Based on the information in Tables 10 and 11, Tables 12 and 13 provide the estimated
impact on the 15-Mile Radius Regional Economy from Day Hockey Visitation Expenditures
during 2013.
Table 12. Estimated Impact on the 15-Mile Radius Regional Economy from Day Hockey
Visitation Expenditures during 2013 (2013 Dollars)
+Proprietor Income
=Labor Income
=Total Value Added
Output
Direct
$3,153,533
$155,878
$3,309,411
$842,099
$419,620
$4,571,130
$7,117,921
133.6
+Indirect
$426,315
$73,564
$499,879
$331,162
$86,333
$917,374
$1,560,483
11.7
Source: IMPLAN®
Page 24 of 84
+Induced
$777,620
$103,149
$880,769
$653,889
$160,948
$1,695,606
$2,678,795
23.2
=Total
$4,357,468
$332,591
$4,690,059
$1,827,150
$666,901
$7,184,110
$11,357,199
168.5
Table 13. Estimated Tax Impact from Day Hockey Visitation Expenditures during 2013 (2013 Dollars)
Federal Tax Impact
Total Federal Tax
Dividends
Grand Total
Source: IMPLAN
Employee
Compensation
$228,160
$297,372
Proprietor
Income
$12,034
Indirect Business
Tax
Households
Corporations
$57,983
$22,987
$6,587
$124,022
$290,607
$525,532
$12,034
$2,402
$4,723
$0
$87,557
$290,607
Total
$240,194
$297,372
$57,983
$22,987
$6,587
$124,022
$290,607
$124,022
$1,039,752
$695
$695
$2,402
$4,723
$279,245
$247,300
$5,072
$0
$45,195
$2,530
$23,671
$93,194
$15,100
$3,750
$1,713
$2,080
$279,245
$247,300
$5,072
$0
$45,195
$2,530
$23,671
$93,194
$15,100
$3,750
$1,713
$2,080
$7,125
$0
$579,343
$115,837
$24,366
$726,670
$532,657
$12,034
$666,899
$406,444
$148,388
$1,766,422
®
Page 25 of 84
Night Hockey Visitation
impact on the 15-Mile Radius Regional Economy from Night Hockey Visitation Expenditures
during 2013.
Table 14. Estimated Impact on the 15-Mile Radius Regional Economy from Night Hockey
+Proprietor Income
=Labor Income
=Total Value Added
Output
Direct
$64,117
$2,524
$66,641
$26,051
$12,960
$105,652
$187,851
2.7
+Indirect
$16,634
$2,931
$19,565
$10,761
$2,892
$33,218
$57,874
0.5
Source: IMPLAN®
Page 26 of 84
+Induced
$17,613
$2,336
$19,949
$14,811
$3,645
$38,405
$60,675
0.5
=Total
$98,364
$7,791
$106,155
$51,623
$19,497
$177,275
$306,400
3.7
Table 15. Estimated Tax Impact from Night Hockey Visitation Expenditures during 2013 (2013 Dollars)
Federal Tax Impact
Total Federal Tax
Dividends
Grand Total
Source: IMPLAN
Employee
Compensation
$5,150
$6,713
Proprietor
Income
$282
Indirect Business
Tax
Households
Corporations
$1,695
$672
$193
$3,504
$6,579
$11,863
$282
$54
$107
$0
$2,560
$6,579
Total
$5,432
$6,713
$1,695
$672
$193
$3,504
$6,579
$3,504
$24,788
$20
$20
$54
$107
$8,164
$7,230
$148
$0
$1,321
$74
$669
$2,110
$342
$85
$39
$47
$8,164
$7,230
$148
$0
$1,321
$74
$669
$2,110
$342
$85
$39
$47
$161
$0
$16,937
$2,623
$689
$20,410
$12,024
$282
$19,497
$9,202
$4,193
$45,198
®
Page 27 of 84
Day Concert Visitation
impact on the 15-Mile Radius Regional Economy from Day Concert Visitation Expenditures
during 2013.
Table 16. Estimated Impact on the 15-Mile Radius Regional Economy from Day Concert
+Proprietor Income
=Labor Income
=Total Value Added
Output
Direct
$522,956
$25,849
$548,805
$139,647
$69,586
$758,038
$1,180,377
22.2
+Indirect
$70,697
$12,199
$82,896
$54,917
$14,317
$152,130
$258,777
1.9
Source: IMPLAN®
Page 28 of 84
+Induced
$128,954
$17,105
$146,059
$108,436
$26,690
$281,185
$444,229
3.8
=Total
$722,607
$55,153
$777,760
$303,000
$110,593
$1,191,353
$1,883,383
27.9
Table 17. Estimated Tax Impact from Day Concert Visitation Expenditures during 2013 (2013 Dollars)
Federal Tax Impact
Total Federal Tax
Source: IMPLAN
Dividends
Employee
Compensation
$37,836
$49,314
Proprietor
Income
$1,996
Indirect Business
Tax
Households
Corporations
$9,615
$3,812
$1,092
$20,567
$48,192
$87,150
$1,996
$398
$783
$0
$14,519
$48,192
Total
$39,832
$49,314
$9,615
$3,812
$1,092
$20,567
$48,192
$20,567
$172,424
$115
$115
$398
$783
$46,308
$41,010
$841
$0
$7,495
$420
$3,925
$15,455
$2,504
$622
$284
$345
$46,308
$41,010
$841
$0
$7,495
$420
$3,925
$15,455
$2,504
$622
$284
$345
$1,181
$0
$96,074
$19,210
$4,040
$120,505
Grand Total
$88,331
$1,996
$110,593
$67,402
$24,607
$292,929
®
Page 29 of 84
Night Concert Visitation
impact on the 15-Mile Radius Regional Economy from Night Concert Visitation Expenditures
during 2013.
Table 18. Estimated Impact on the 15-Mile Radius Regional Economy from Night Concert
+Proprietor Income
=Labor Income
=Total Value Added
Output
Direct
$662,113
$26,067
$688,180
$269,020
$133,828
$1,091,028
$1,939,859
28.2
+Indirect
$171,776
$30,264
$202,040
$111,120
$29,860
$343,020
$597,643
4.7
Source: IMPLAN®
Page 30 of 84
+Induced
$181,884
$24,126
$206,010
$152,943
$37,645
$396,598
$626,565
5.4
=Total
$1,015,773
$80,457
$1,096,230
$533,083
$201,333
$1,830,646
$3,164,067
38.3
Table 19. Estimated Tax Impact from Night Concert Visitation Expenditures during 2013 (2013 Dollars)
Federal Tax Impact
Total Federal Tax
Dividends
Grand Total
Source: IMPLAN
Employee
Compensation
$53,187
$69,321
Proprietor
Income
$2,911
Indirect Business
Tax
Households
Corporations
$17,505
$6,940
$1,989
$36,184
$67,942
$122,508
$2,911
$560
$1,101
$0
$26,434
$67,942
Total
$56,098
$69,321
$17,505
$6,940
$1,989
$36,184
$67,942
$36,184
$255,979
$203
$203
$560
$1,101
$84,302
$74,658
$1,531
$0
$13,644
$764
$6,906
$21,788
$3,530
$877
$401
$486
$84,302
$74,658
$1,531
$0
$13,644
$764
$6,906
$21,788
$3,530
$877
$401
$486
$1,661
$0
$174,899
$27,082
$7,109
$210,751
$124,169
$2,911
$201,333
$95,024
$43,293
$466,730
®
Page 31 of 84
Day Entertainment Show Visitation
impact on the 15-Mile Radius Regional Economy from Day Entertainment Show Visitation
Expenditures during 2013.
Table 20. Estimated Impact on the 15-Mile Radius Regional Economy from Day
Entertainment Show Visitation Expenditures during 2013 (2013 Dollars)
+Proprietor Income
=Labor Income
=Total Value Added
Output
Direct
$503,083
$25,039
$528,122
$134,557
$66,825
$729,504
$1,141,741
20.5
+Indirect
$68,401
$11,803
$80,204
$53,128
$13,854
$147,186
$250,393
1.9
Source: IMPLAN®
Page 32 of 84
+Induced
$124,184
$16,473
$140,657
$104,424
$25,703
$270,784
$427,795
3.7
=Total
$695,668
$53,315
$748,983
$292,109
$106,382
$1,147,474
$1,819,929
26.1
Table 21. Estimated Tax Impact from Day Entertainment Show Visitation Expenditures during 2013 (2013 Dollars)
Federal Tax Impact
Total Federal Tax
Source: IMPLAN
Dividends
Employee
Compensation
$36,426
$47,475
Proprietor
Income
$1,929
Indirect Business
Tax
Households
Corporations
$9,249
$3,667
$1,051
$19,828
$46,410
$83,901
$1,929
$383
$754
$0
$13,967
$46,410
Total
$38,355
$47,475
$9,249
$3,667
$1,051
$19,828
$46,410
$19,828
$166,035
$111
$111
$383
$754
$44,544
$39,449
$809
$0
$7,209
$404
$3,784
$14,883
$2,412
$599
$274
$332
$44,544
$39,449
$809
$0
$7,209
$404
$3,784
$14,883
$2,412
$599
$274
$332
$1,137
$0
$92,415
$18,500
$3,895
$115,947
Grand Total
$85,038
$1,929
$106,382
$64,910
$23,723
$281,982
®
Page 33 of 84
Night Entertainment Show Visitation
impact on the 15-Mile Radius Regional Economy from Night Entertainment Show Visitation
Table 22. Estimated Impact on the 15-Mile Radius Regional Economy from Night
Entertainment Show Visitation Expenditures during 2013 (2013 Dollars)
+Proprietor Income
=Labor Income
=Total Value Added
Output
Direct
$641,887
$25,271
$667,158
$260,802
$129,740
$1,057,700
$1,880,599
27.3
+Indirect
$166,529
$29,340
$195,869
$107,726
$28,948
$332,543
$579,386
4.5
Source: IMPLAN®
Page 34 of 84
+Induced
$176,328
$23,389
$199,717
$148,270
$36,495
$384,482
$607,424
5.3
=Total
$984,744
$78,000
$1,062,744
$516,798
$195,183
$1,774,725
$3,067,409
37.1
Table 23. Estimated Tax Impact from Night Entertainment Show Visitation Expenditures during 2013 (2013 Dollars)
Federal Tax Impact
Total Federal Tax
Dividends
Grand Total
Source: IMPLAN
Employee
Compensation
$51,562
$67,203
Proprietor
Income
$2,822
Indirect Business
Tax
Households
Corporations
$16,970
$6,728
$1,928
$35,079
$65,866
$118,765
$2,822
$543
$1,067
$0
$25,626
$65,866
Total
$54,384
$67,203
$16,970
$6,728
$1,928
$35,079
$65,866
$35,079
$248,158
$197
$197
$543
$1,067
$81,727
$72,377
$1,485
$0
$13,227
$741
$6,695
$21,122
$3,422
$850
$388
$472
$81,727
$72,377
$1,485
$0
$13,227
$741
$6,695
$21,122
$3,422
$850
$388
$472
$1,610
$0
$169,557
$26,254
$6,892
$204,313
$120,375
$2,822
$195,183
$92,120
$41,971
$452,471
®
Page 35 of 84
Day Family Show Visitation
impact on the 15-Mile Radius Regional Economy from Day Family Show Visitation
Table 24. Estimated Impact on the 15-Mile Radius Regional Economy from Day Family
Show Visitation Expenditures during 2013 (2013 Dollars)
+Proprietor Income
=Labor Income
=Total Value Added
Output
Direct
$742,762
$36,714
$779,476
$198,342
$98,834
$1,076,652
$1,676,508
31.5
+Indirect
$100,411
$17,327
$117,738
$78,000
$20,334
$216,072
$367,546
2.8
Source: IMPLAN®
Page 36 of 84
+Induced
$183,155
$24,295
$207,450
$154,013
$37,909
$399,372
$630,945
5.5
=Total
$1,026,328
$78,336
$1,104,664
$430,355
$157,077
$1,692,096
$2,674,999
39.8
Table 25. Estimated Tax Impact from Day Family Show Visitation Expenditures during 2013 (2013 Dollars)
Federal Tax Impact
Total Federal Tax
Dividends
Grand Total
Source: IMPLAN
Employee
Compensation
$53,739
$70,041
Proprietor
Income
$2,834
Indirect Business
Tax
Households
Corporations
$13,657
$5,414
$1,552
$29,211
$68,448
$123,780
$2,834
$566
$1,112
$0
$20,623
$68,448
Total
$56,573
$70,041
$13,657
$5,414
$1,552
$29,211
$68,448
$29,211
$244,896
$164
$164
$566
$1,112
$65,771
$58,247
$1,195
$0
$10,645
$596
$5,575
$21,950
$3,557
$883
$404
$490
$65,771
$58,247
$1,195
$0
$10,645
$596
$5,575
$21,950
$3,557
$883
$404
$490
$1,678
$0
$136,454
$27,284
$5,739
$171,155
$125,458
$2,834
$157,077
$95,732
$34,950
$416,051
®
Page 37 of 84
Night Family Show Visitation
impact on the 15-Mile Radius Regional Economy from Night Family Show Visitation
Table 26. Estimated Impact on the 15-Mile Radius Regional Economy from Night Family
Show Visitation Expenditures during 2013 (2013 Dollars)
+Proprietor Income
=Labor Income
=Total Value Added
Output
Direct
$940,372
$37,022
$977,394
$382,078
$190,070
$1,549,542
$2,755,099
40.0
+Indirect
$243,967
$42,983
$286,950
$157,820
$42,408
$487,178
$848,807
6.7
Source: IMPLAN®
Page 38 of 84
+Induced
$258,323
$34,266
$292,589
$217,218
$53,465
$563,272
$889,883
7.7
=Total
$1,442,662
$114,271
$1,556,933
$757,116
$285,943
$2,599,992
$4,493,789
54.4
Table 27. Estimated Tax Impact from Night Family Show Visitation Expenditures during 2013 (2013 Dollars)
Federal Tax Impact
Total Federal Tax
Dividends
Grand Total
Source: IMPLAN
Employee
Compensation
$75,539
$98,453
Proprietor
Income
$4,135
Indirect Business
Tax
Households
Corporations
$24,861
$9,856
$2,824
$51,391
$96,495
$173,992
$4,135
$795
$1,564
$0
$37,541
$96,495
Total
$79,674
$98,453
$24,861
$9,856
$2,824
$51,391
$96,495
$51,391
$363,554
$288
$288
$795
$1,564
$119,730
$106,034
$2,175
$0
$19,378
$1,085
$9,809
$30,945
$5,014
$1,245
$569
$691
$119,730
$106,034
$2,175
$0
$19,378
$1,085
$9,809
$30,945
$5,014
$1,245
$569
$691
$2,359
$0
$248,402
$38,464
$10,097
$299,322
$176,351
$4,135
$285,943
$134,959
$61,488
$662,876
®
Page 39 of 84
Visitation from Religious Conventions
In 2013, the arena hosted two religion-related conventions and those expenditures would
be different. For these conventions, visitor spending data for the Ahmadiyya Jalsa Salana
Conference, an annual formal gathering of the Ahmadiyya Muslim Community that is held every
year at the Farm Show Complex in Harrisburg, was used.
According to “The Economic Impact of the Farm Show Complex & Expo Center,
Harrisburg” by the Penn State Center for Economic & Community Development, 97.4 percent of
participants at the conference were from outside Cumberland and Dauphin counties. According
to a July 15, 2012 article, “Jehovah’s Witnesses Prepare for Convention” that was in The
Citizen’s Voice, between 3,500 and 4,000 people will visit the arena for a convention held on two
consecutive weekends. An assumption was made that 3,750 people attended the convention on
each weekend, resulting in 7,500 people. When the 97.4 percent is applied, then there were 7,305
attendees who are from outside the 15-mile region.
As part of their mission, members of the Jehovah’s Witnesses clean the arena. Since the
amount spent on cleaning supplies is not known, the economic impact from that purchase cannot
be estimated.
The second religion-related convention that was held in 2013 was one by the
Northeastern Pennsylvania Synod of the Evangelical Lutheran Church in America (ELCA).
Since attendance data were not available for this convention from online sources, an assumption
was made that 1,000 people attended the 2-day convention and that 60 percent or 600 people
stayed overnight. For this analysis, the same spending data from the Penn State study were used.
Table 28 provides the spending data that was used in the two religious conferences that
were held at the arena during 2013.
Table 28. Spending Data Used in Estimating the Impact from the Jehovah’s Witnesses
Convention and the Northeastern Pennsylvania Synod of the Evangelical Lutheran Church
in America (ELCA) Convention on the 15-Mile Radius Regional Economy during 2013
Type of Expenditure
Lodging
Retail Purchases from Gasoline Stations
Retail Purchases from Stores
Total
Amount
$70.94
$17.55
$14.35
$6.68
$0.05
$109.57
Source: Penn State Center for Economic and Community Development
Based on the spending data in Table 28, with a number of visitors of 7,305, Tables 29 and
30 provide the estimated impact from the spending by visitors at the Jehovah’s Witnesses
convention on the 15-mile radius economy during 2013.
Page 40 of 84
Table 29. Estimated Impact on the 15-Mile Radius Regional Economy from the Jehovah’s
Witnesses Convention during 2013 (2013 Dollars)
+Proprietor Income
=Labor Income
=Total Value Added
Output
Direct
$174,286
$6,966
$181,252
$94,776
$48,145
$324,173
$634,118
7.6
+Indirect
$67,327
$11,902
$79,229
$40,946
$11,168
$131,343
$230,959
1.8
Source: IMPLAN®
Page 41 of 84
+Induced
$53,262
$7,065
$60,327
$44,785
$11,023
$116,135
$183,478
1.6
=Total
$294,875
$25,933
$320,808
$180,507
$70,336
$571,651
$1,048,555
11.0
Table 30. Estimated Tax Impact from the Jehovah’s Witnesses Convention during 2013 (2013 Dollars)
Federal Tax Impact
Total Federal Tax
Dividends
Grand Total
Source: IMPLAN
Employee
Compensation
$15,440
$20,124
Proprietor
Income
$938
Indirect Business
Tax
Households
Corporations
$6,115
$2,424
$695
$12,252
$19,897
$35,564
$938
$163
$320
$0
$9,234
$19,897
Total
$16,378
$20,124
$6,115
$2,424
$695
$12,252
$19,897
$12,252
$77,885
$69
$69
$163
$320
$29,451
$26,082
$535
$0
$4,767
$267
$2,339
$6,381
$1,034
$257
$117
$142
$29,451
$26,082
$535
$0
$4,767
$267
$2,339
$6,381
$1,034
$257
$117
$142
$483
$0
$61,102
$7,931
$2,408
$71,924
$36,047
$938
$70,336
$27,828
$14,660
$149,809
®
Page 42 of 84
Based on 600 visitors who spent the night and attended the Northeastern Pennsylvania
Synod of the Evangelical Lutheran Church in America (ELCA) 2-day convention at the arena in
June 2013, along with the spending data from Table 28, Tables 31 and 32 provide the estimated
impact on a region being a 15-mile radius from the arena.
Table 31. Estimated Impact on the 15-Mile Radius Regional Economy from the
Northeastern Pennsylvania Synod of the Evangelical Lutheran Church in America
Convention during 2013 (2013 Dollars)
+Proprietor Income
=Labor Income
=Total Value Added
Output
Direct
$15,150
$598
$15,748
$8,255
$4,193
$28,196
$55,186
0.7
+Indirect
$5,868
$1,038
$6,906
$3,566
$973
$11,445
$20,123
0.2
Source: IMPLAN®
Page 43 of 84
+Induced
$4,632
$614
$5,246
$3,895
$959
$10,100
$15,956
0.1
=Total
$25,650
$2,250
$27,900
$15,716
$6,125
$49,741
$91,265
1.0
Table 32. Estimated Tax Impact from the Northeastern Pennsylvania Synod of the Evangelical Lutheran Church in America
Convention during 2013 (2013 Dollars)
Federal Tax Impact
Total Federal Tax
Dividends
Grand Total
Source: IMPLAN
Employee
Compensation
$1,343
$1,750
Proprietor
Income
$81
Indirect Business
Tax
Households
Corporations
$532
$211
$60
$1,067
$1,730
$3,093
$81
$14
$28
$0
$803
$1,730
Total
$1,424
$1,750
$532
$211
$60
$1,067
$1,730
$1,067
$6,774
$6
$6
$14
$28
$2,564
$2,271
$47
$0
$415
$23
$204
$555
$90
$22
$10
$12
$2,564
$2,271
$47
$0
$415
$23
$204
$555
$90
$22
$10
$12
$42
$0
$5,320
$689
$210
$6,261
$3,135
$81
$6,123
$2,419
$1,277
$13,035
®
Page 44 of 84
Tables 33 and 34 provide the total impact on the 15-mile radius regional economy from
both conventions, with a total overnight visitation of 7,905 people.
Table 33. Estimated Impact on the 15-Mile Radius Regional Economy from the Spending
by Attendees at the Jehovah’s Witnesses and Northeastern Pennsylvania Synod of the
Evangelical Lutheran Church in America Conventions during 2013 (2013 Dollars)
+Proprietor Income
=Labor Income
=Total Value Added
Output
Direct
$189,435
$7,564
$196,999
$103,031
$52,338
$352,368
$689,304
8.2
+Indirect
$73,195
$12,940
$86,135
$44,512
$12,141
$142,788
$251,081
2.0
Source: IMPLAN®
Page 45 of 84
+Induced
$57,894
$7,679
$65,573
$48,680
$11,981
$126,234
$199,433
1.7
=Total
$320,524
$28,183
$348,707
$196,223
$76,460
$621,390
$1,139,818
11.9
Table 34. Estimated Tax Impact from the Spending by Attendees at the Jehovah’s Witnesses and Northeastern Pennsylvania
Synod of the Evangelical Lutheran Church in America Conventions during 2013 (2013 Dollars)
Federal Tax Impact
Total Federal Tax
Dividends
Grand Total
Source: IMPLAN
Employee
Compensation
$16,783
$21,874
Proprietor
Income
$1,020
Indirect Business
Tax
Households
Corporations
$6,648
$2,636
$755
$13,319
$21,628
$38,657
$1,020
$177
$347
$0
$10,039
$21,628
Total
$17,803
$21,874
$6,648
$2,636
$755
$13,319
$21,628
$13,319
$84,663
$75
$75
$177
$347
$32,016
$28,353
$582
$0
$5,182
$290
$2,542
$6,936
$1,124
$279
$127
$155
$32,016
$28,353
$582
$0
$5,182
$290
$2,542
$6,936
$1,124
$279
$127
$155
$524
$0
$66,423
$8,621
$2,617
$78,185
$39,181
$1,020
$76,462
$30,249
$15,936
$162,848
®
Page 46 of 84
Visitation from Graduations
During 2013, the arena hosted several college graduations. Ceremonies were held for The
Commonwealth Medical College, Marywood University, King’s College, Luzerne County
Community College, The University of Scranton and Crestwood High School. Since King’s
College, Luzerne County Community College and Crestwood High School are located in
Luzerne County, which is where the arena is located, it was assumed that the economic impact
from those ceremonies is based on the institution, not on the arena.
Since The Commonwealth Medical College, Marywood University and The University of
Scranton are located in Lackawanna County, an assumption was made that 5 percent of the
graduates who were not from Luzerne County would bring 4 guests and purchase a restaurant
dinner at $23 per person and gasoline at $5 per person at locations that are within a 5-mile radius
of the arena. Based on newspaper reports and assumptions, there were, in 2013, 97 graduates
from outside Luzerne County who graduated from The Commonwealth Medical College, 800
graduates from outside Luzerne County who graduated from Marywood University and 1,689
graduates from outside Luzerne County who graduated from The University of Scranton.
Therefore, based on 646 people, with the aforementioned purchases of a restaurant dinner and
gasoline, Tables 35 and 36 provide the total impact on the 15-mile radius regional economy from
people who attend graduations.
by People who Attend Graduations during 2013 (2013 Dollars)
+Proprietor Income
=Labor Income
=Total Value Added
Output
Direct
$5,002
$567
$5,569
$1,652
$787
$8,008
$15,217
0.3
+Indirect
$1,135
$184
$1,319
$877
$251
$2,447
$4,344
0.0
Source: IMPLAN®
Page 47 of 84
+Induced
$1,408
$187
$1,595
$1,183
$291
$3,069
$4,849
0.0
=Total
$7,545
$938
$8,483
$3,712
$1,329
$13,524
$24,410
0.3
Table 36. Estimated Tax Impact from the Spending by People who Attend Graduations during 2013 (2013 Dollars)
Federal Tax Impact
Total Federal Tax
Source: IMPLAN
Dividends
Employee
Compensation
$395
$515
Proprietor
Income
$34
Indirect Business
Tax
Households
Corporations
$116
$46
$13
$252
$528
$910
$34
$4
$8
$0
$175
$528
Total
$429
$515
$116
$46
$13
$252
$528
$252
$1,899
$1
$1
$4
$8
$557
$493
$10
$0
$90
$5
$48
$169
$27
$7
$3
$4
$557
$493
$10
$0
$90
$5
$48
$169
$27
$7
$3
$4
$12
$0
$1,155
$210
$49
$1,426
Grand Total
$922
$34
$1,330
$738
$301
$3,325
®
Page 48 of 84
Visitation from the Northeastern Pennsylvania Home and Garden Show
Based on an assumption that 3,000 people attended the Northeastern Pennsylvania Home
and Garden Show during January 2013 and that each of them purchased a $23 restaurant meal
and $5 in gasoline, Tables 37 and 38 provide the total impact on the 15-mile radius regional
economy.
by People who Attend the Northeastern Pennsylvania Home and Garden Show during 2013
(2013 Dollars)
+Proprietor Income
=Labor Income
=Total Value Added
Output
Direct
$23,229
$2,632
$25,861
$7,670
$3,655
$37,186
$70,665
1.3
+Indirect
$5,273
$853
$6,126
$4,072
$1,167
$11,365
$20,176
0.1
Source: IMPLAN®
Page 49 of 84
+Induced
$6,537
$867
$7,404
$5,495
$1,352
$14,251
$22,517
0.2
=Total
$35,039
$4,352
$39,391
$17,237
$6,174
$62,802
$113,358
1.6
Table 38. Estimated Tax Impact from the Spending by People who Attend the Northeastern Pennsylvania Home and Garden
Show during 2013 (2013 Dollars)
Federal Tax Impact
Total Federal Tax
Dividends
Grand Total
Source: IMPLAN
Employee
Compensation
$1,835
$2,391
Proprietor
Income
$157
Indirect Business
Tax
Households
Corporations
$537
$213
$61
$1,170
$2,450
$4,226
$157
$19
$38
$0
$811
$2,450
Total
$1,992
$2,391
$537
$213
$61
$1,170
$2,450
$1,170
$8,814
$7
$7
$19
$38
$2,586
$2,290
$47
$0
$418
$23
$223
$786
$127
$32
$14
$18
$2,586
$2,290
$47
$0
$418
$23
$223
$786
$127
$32
$14
$18
$57
$0
$5,364
$977
$230
$6,628
$4,283
$157
$6,175
$3,427
$1,400
$15,442
®
Page 50 of 84
Total Visitation by Event Attendees
Tables 39 and 40 provide the estimated impact on the 15-Mile Radius Regional Economy
from Total Event Attendee Spending during 2013.
Table 39. Estimated Impact on the 15-Mile Radius Regional Economy from Total Event
Attendee Spending during 2013 (2013 Dollars)
+Proprietor Income
=Labor Income
=Total Value Added
Output
Direct
$7,448,489
$345,128
$7,793,617
$2,364,949
$1,178,244
$11,336,810
$18,655,140
315.8
+Indirect
$1,344,334
$234,387
$1,578,721
$954,094
$252,505
$2,785,320
$4,796,511
36.8
Source: IMPLAN®
Page 51 of 84
+Induced
$1,913,900
$253,873
$2,167,773
$1,609,362
$396,125
$4,173,260
$6,593,110
57.0
=Total
$10,706,723
$833,388
$11,540,111
$4,928,405
$1,826,874
$18,295,390
$30,044,761
409.6
Table 40. Estimated Tax Impact from Total Event Attendee Spending during 2013 (2013 Dollars)
Federal Tax Impact
Total Federal Tax
Dividends
Grand Total
Source: IMPLAN
Employee
Compensation
$560,612
$730,671
Proprietor
Income
$30,154
Indirect Business
Tax
Households
Corporations
$158,836
$62,971
$18,045
$334,525
$715,144
$1,291,283
$30,154
$5,902
$11,604
$0
$239,852
$715,144
Total
$590,766
$730,671
$158,836
$62,971
$18,045
$334,525
$715,144
$334,525
$2,610,958
$1,875
$1,875
$5,902
$11,604
$764,949
$677,440
$13,895
$0
$123,806
$6,931
$63,849
$229,338
$37,160
$9,228
$4,216
$5,119
$764,949
$677,440
$13,895
$0
$123,806
$6,931
$63,849
$229,338
$37,160
$9,228
$4,216
$5,119
$17,506
$0
$1,587,021
$285,061
$65,724
$1,955,312
$1,308,789
$30,154
$1,826,873
$1,000,205
$400,249
$4,566,270
®
Page 52 of 84
Visitation by Performers, Exhibitors and Visiting Hockey Teams
The impact region for the spending from Performers at Family and Entertainment Shows
and Concerts, Exhibitors at Trade Shows and Visiting Hockey Teams is based on the region that
is within a 15-mile radius of the arena. It is assumed that all related spending on items such as
overnight lodging, meals, gasoline and other items will occur within this area.
The Mohegan Sun Arena at Casey Plaza hosted several family, entertainment and trade
shows and concerts and hockey games during 2013. Entertainers, along with people who exhibit
at trade shows and members of the opposing hockey team spend dollars on lodging, restaurant
meals, snack food and gasoline while they are near the arena. Some entertainers travel by bus
between concerts and others fly. It was assumed that the entertainers who travel by bus would
refuel in the area. The amount used for purchasing diesel fuel was $555 per bus which is the
midpoint of the $185 to $925 range that was from the Limousine, Charter and Tour magazine
website. Other costs for lodging and restaurant meals originated from the Continental United
States (CONUS) Per Diem Rates from the U.S. General Services Administration. The lodging
expense of $77 was divided by 2 for double occupancy. The restaurant meals from the CONUS
Per Diem Rates are $7 for breakfast, $11 for lunch and $23 for dinner for a total of $41 per day.
Assumptions were made for catered food at the arena at a cost of $40 per person per day; snack
food at a cost of $5 per person per day; gasoline at a cost of $5 per person and incidentals at $5
per person per day, which is an increase of $2 from the CONUS Per Diem Rate of $3. An
assumption was made that the incidentals amount would be spent on health and personal care
items. Therefore, the incidentals amount was assigned to the Retail Trade – Drug Stores industry.
A summary of the spending data used is presented in Table 41.
Table 41. Performer and Exhibitor Per Person Spending Data Used in Estimating the
Impact from Family, Entertainment and Trade Shows, and Concerts during 2013 (2013
Dollars)
Type of Expenditure
Lodging
Retail Purchases from Gasoline Stations
Retail Purchases from Stores for Snack Food
Retail Purchases from Stores for Incidentals
Total
Amount
$38.50
$41.00
$5.00
$5.00
$5.00
$94.50
Source: U.S. General Services Administration Continental United States Per Diem Rates and
Professional Assumptions
Page 53 of 84
Performers who Travel by Bus and Dine at a Restaurant
Based on a list of events provided by SMG, along with the assumptions that there are 65
performers who travel by bus, dine at a restaurant and spend $41 on restaurant meals, $17.08 on
diesel fuel, $5 on snack food and $5 on health and personal care, Tables 42 and 43 provide the
estimated impact on the 15-mile radius regional economy during 2013.
by Performers who Travel by Bus and Dine at a Restaurant (2013 Dollars)
+Proprietor Income
=Labor Income
=Total Value Added
Output
Direct
$1,012
$116
$1,128
$307
$164
$1,599
$2,975
0.1
+Indirect
$222
$36
$258
$173
$49
$480
$845
0.0
Source: IMPLAN®
Page 54 of 84
+Induced
$283
$38
$321
$238
$59
$618
$976
0.0
=Total
$1,517
$190
$1,707
$718
$272
$2,697
$4,796
0.1
Table 43. Estimated Tax Impact from the Spending by Performers who Travel by Bus and Dine at a Restaurant (2013 Dollars)
Federal Tax Impact
Total Federal Tax
Dividends
Grand Total
Source: IMPLAN
Employee
Compensation
$79
$104
Proprietor
Income
$7
Indirect Business
Tax
Households
Corporations
$24
$9
$3
$49
$106
$183
$7
$1
$2
$0
$36
$106
Total
$86
$104
$24
$9
$3
$49
$106
$49
$381
$0
$0
$1
$2
$114
$101
$2
$0
$18
$1
$9
$34
$6
$1
$1
$1
$114
$101
$2
$0
$18
$1
$9
$34
$6
$1
$1
$1
$3
$0
$236
$43
$9
$291
$186
$7
$272
$149
$58
$672
®
Page 55 of 84
Performers who Travel by Bus and Dine at the Arena
Based on an assumption that 120 performers travel by bus and dine at the arena through
its catering service and having the purchases of $40 in catered food, $5 in snack food, $13.88 in
diesel fuel and $5 in health and personal care items, Tables 44 and 45 provide the estimated
impact on the 15-mile radius regional economy from their spending during 2013.
by Performers who Travel by Bus and Dine at the Arena (2013 Dollars)
+Proprietor Income
=Labor Income
=Total Value Added
Output
Direct
$1,814
$203
$2,017
$549
$294
$2,860
$5,329
0.1
+Indirect
$399
$65
$464
$309
$87
$860
$1,516
0.0
Source: IMPLAN®
Page 56 of 84
+Induced
$507
$67
$574
$426
$105
$1,105
$1,746
0.0
=Total
$2,720
$335
$3,055
$1,284
$486
$4,825
$8,591
0.1
Table 45. Estimated Tax Impact from the Spending by Performers who Travel by Bus and Dine at the Arena (2013 Dollars)
Federal Tax Impact
Total Federal Tax
Dividends
Grand Total
Source: IMPLAN
Employee
Compensation
$142
$186
Proprietor
Income
$12
Indirect Business
Tax
Households
Corporations
$42
$17
$5
$87
$190
$328
$12
$1
$3
$0
$64
$190
Total
$154
$186
$42
$17
$5
$87
$190
$87
$681
$0
$0
$1
$3
$203
$180
$4
$0
$33
$2
$17
$61
$10
$2
$1
$1
$203
$180
$4
$0
$33
$2
$17
$61
$10
$2
$1
$1
$4
$0
$422
$75
$17
$518
$332
$12
$486
$265
$104
$1,199
®
Page 57 of 84
Performers who Travel by Bus, Have Additional Trailers and Dine at the Arena
Based on 15 performers who travel by bus, have additional trailers and dine at the arena
through its catering service with expenditures of $40 for food, along with the additional spending
of $5 for snack food, $13.88 for diesel fuel and $5 for health and personal care items, Tables 46
and 47 provide the estimated impact on the 15-mile radius regional economy.
by Performers who Travel by Bus, Have Additional Trailers and Dine at the Arena (2013
Dollars)
+Proprietor Income
=Labor Income
=Total Value Added
Output
Direct
$262
$45
$307
$81
$46
$434
$775
0.0
+Indirect
$57
$9
$66
$45
$12
$123
$215
0.0
Source: IMPLAN®
Page 58 of 84
+Induced
$76
$10
$86
$64
$16
$166
$263
0.0
=Total
$395
$64
$459
$190
$74
$723
$1,253
0.0
Table 47. Estimated Tax Impact from Performers who Travel by Bus, Have Additional Trailers and Dine at the Arena (2013
Dollars)
Federal Tax Impact
Total Federal Tax
Source: IMPLAN
Dividends
Employee
Compensation
$21
$27
Proprietor
Income
$2
Indirect Business
Tax
Households
Corporations
$6
$3
$1
$13
$29
$48
$2
$0
$0
$0
$10
$29
Total
$23
$27
$6
$3
$1
$13
$29
$13
$102
$0
$0
$0
$0
$31
$28
$1
$0
$5
$0
$2
$9
$1
$0
$0
$0
$31
$28
$1
$0
$5
$0
$2
$9
$1
$0
$0
$0
$0
$0
$65
$10
$2
$77
Grand Total
$48
$2
$75
$39
$15
$179
®
Page 59 of 84
Performers who Stay in a Hotel and Dine at a Restaurant
Based on 1,168 performers and people who are exhibitors at trade shows not including
the Northeastern Pennsylvania Home and Garden Show, along with $38.50 in lodging expenses
(double occupancy), $41 in restaurant meals, $5 in snack food purchases, $5 in gasoline
purchases and $5 in health and personal care purchases, Tables 48 and 49 provide the estimated
impact on the 15-mile radius regional economy.
For these trade shows, an assumption was made that there were three non-local booths
with 2 people at each booth.
by Performers who Stay in a Hotel and Dine at a Restaurant (2013 Dollars)
+Proprietor Income
=Labor Income
=Total Value Added
Output
Direct
$29,086
$1,887
$30,973
$12,530
$6,480
$49,983
$96,856
1.4
+Indirect
$9,128
$1,570
$10,698
$6,034
$1,672
$18,404
$32,430
0.2
Source: IMPLAN®
Page 60 of 84
+Induced
$8,518
$1,130
$9,648
$7,162
$1,763
$18,573
$29,343
0.3
=Total
$46,732
$4,587
$51,319
$25,726
$9,915
$86,960
$158,629
1.9
Table 49. Estimated Tax Impact from the Spending by Performers who Stay in a Hotel and Dine at a Restaurant (2013
Dollars)
Federal Tax Impact
Total Federal Tax
Dividends
Grand Total
Source: IMPLAN
Employee
Compensation
$2,447
$3,189
Proprietor
Income
$166
Indirect Business
Tax
Households
Corporations
$862
$342
$98
$1,746
$3,186
$5,636
$166
$26
$51
$0
$1,302
$3,186
Total
$2,613
$3,189
$862
$342
$98
$1,746
$3,186
$1,746
$12,036
$10
$10
$26
$51
$4,152
$3,677
$75
$0
$672
$38
$333
$1,022
$166
$41
$19
$23
$4,152
$3,677
$75
$0
$672
$38
$333
$1,022
$166
$41
$19
$23
$77
$0
$8,614
$1,271
$343
$10,305
$5,713
$166
$9,916
$4,457
$2,089
$22,341
®
Page 61 of 84
Performers who Stay in a Hotel and Dine at the Arena
Based on an assumption that there are 2,094 people who stay in a hotel and dine at the
arena through its catering services, with each person having $38.50 in double occupancy lodging,
$40 in catered food purchases, $5 in snack food purchases, $5 in gasoline purchases and $5 in
health and personal care purchases, Tables 50 and 51 provide the estimated impact on the 15mile radius regional economy during 2013.
by Performers who Stay in a Hotel and Dine at the Arena (2013 Dollars)
+Proprietor Income
=Labor Income
=Total Value Added
Output
Direct
$51,457
$3,313
$54,770
$22,237
$11,511
$88,518
$171,551
2.5
+Indirect
$16,209
$2,790
$18,999
$10,697
$2,963
$32,659
$57,541
0.4
Source: IMPLAN®
Page 62 of 84
+Induced
$15,079
$2,000
$17,079
$12,678
$3,120
$32,877
$51,944
0.4
=Total
$82,745
$8,103
$90,848
$45,612
$17,594
$154,054
$281,036
3.3
Table 51. Estimated Tax Impact from the Spending by Performers who Stay in a Hotel and Dine at the Arena (2013 Dollars)
Federal Tax Impact
Total Federal Tax
Dividends
Grand Total
Source: IMPLAN
Employee
Compensation
$4,333
$5,647
Proprietor
Income
$293
Indirect Business
Tax
Households
Corporations
$1,530
$606
$174
$3,096
$5,639
$9,980
$293
$46
$90
$0
$2,310
$5,639
Total
$4,626
$5,647
$1,530
$606
$174
$3,096
$5,639
$3,096
$21,318
$17
$17
$46
$90
$7,367
$6,524
$134
$0
$1,192
$67
$591
$1,808
$293
$73
$33
$40
$7,367
$6,524
$134
$0
$1,192
$67
$591
$1,808
$293
$73
$33
$40
$136
$0
$15,284
$2,247
$608
$18,275
$10,116
$293
$17,594
$7,886
$3,704
$39,593
®
Page 63 of 84
Performers who Travel by Train and Dine on the Train
During 2013, the Ringling Brothers and Barnum & Bailey Circus presented 5
performances over 4 days at the arena. The circus travels by train that has a diner-like restaurant,
the “Pie Car,” where a professional culinary team prepares meals and several kitchens where
employees can prepare meals. An assumption was made that the circus purchases food from
local grocery stores at a cost of $40 per person per day with no snack food purchases. To account
for any transportation expense between the train and the arena, an assumption was made that
there would be a $5 per person expense for gasoline. Another assumption that is related to the
circus is that there was no “parking fee” for its train while it is here.
Therefore, based on an assumption that there were 1,000 circus performers with the
aforementioned spending information, Tables 52 and 53 provide the estimated impact on the 15mile radius regional economy from the spending by performers who travel by train and dine on
the train during 2013.
by Performers who Travel by Train and Dine on the Train (2013 Dollars)
+Proprietor Income
=Labor Income
=Total Value Added
Output
Direct
$3,006
$247
$3,253
$246
$614
$4,113
$6,265
0.1
+Indirect
$492
$84
$576
$403
$92
$1,071
$1,735
0.0
Source: IMPLAN®
Page 64 of 84
+Induced
$782
$104
$886
$658
$162
$1,706
$2,694
0.0
=Total
$4,280
$435
$4,715
$1,307
$868
$6,890
$10,694
0.1
Table 53. Estimated Tax Impact from the Spending by Performers who Travel by Train and Dine on the Train (2013 Dollars)
Federal Tax Impact
Total Federal Tax
Dividends
Grand Total
Source: IMPLAN
Employee
Compensation
$224
$292
Proprietor
Income
$16
Indirect Business
Tax
Households
Corporations
$76
$30
$9
$89
$293
$516
$16
$2
$5
$0
$115
$293
Total
$240
$292
$76
$30
$9
$89
$293
$89
$1,029
$0
$0
$2
$5
$364
$322
$7
$0
$59
$3
$17
$94
$15
$4
$2
$2
$364
$322
$7
$0
$59
$3
$17
$94
$15
$4
$2
$2
$7
$0
$755
$117
$17
$896
$523
$16
$870
$410
$106
$1,925
®
Page 65 of 84
Exhibitors at the Northeastern Pennsylvania Home and Garden Show
The Northeastern Pennsylvania Home and Garden Show has been held every January for
the past 14 years. Since this show is organized and promoted by Show Technology Productions
of San Antonio, Texas, it is assumed that a portion of the booth rental fees are retained by the
arena and the other portion is retained by Show Technology Productions. Depending on whether
the vendor at the show is locally-based, there would be an economic impact based on the
purchasing of goods and services from the vendor by people who live within the 15-mile radius
of the arena. There would also be an economic impact from the spending of non-local vendors
and visitors on lodging, gasoline and other items. According to a January 25, 2014 article in The
Times Leader, “Annual Event Concludes Today at Mohegan Sun Arena,” there were over 125
vendors at the 13th annual show. According to “The Economic Impact of the Farm Show
Complex & Expo Center, Harrisburg” by the Penn State Center for Economic & Community
Development, 56.6 percent of the vendors at the Pennsylvania Home Show, which was held for 8
days in March 2013, were non-local. Consequently, when this percentage is multiplied by 125,
the result is that 71 vendors are non-local.
Since it is not known the amount of sales for each of the local vendors who participate in
the show, the resulting economic impact cannot be estimated. Sales from the non-local vendors
are not included because the services provided are outside the 15-mile radius. There is an impact
from the spending by non-local vendors while they are at the arena for the duration of the show,
which is 3 days. When the data from Table 41 are coupled with the 71 non-local vendors that
have 2 people at each booth and are in the area for 3 days, the resulting estimated economic
impact is in Tables 54 and 55.
by Non-Local Vendors at the Northeastern Pennsylvania Home and Garden Show (2013
Dollars)
+Proprietor Income
=Labor Income
=Total Value Added
Output
Direct
$10,608
$688
$11,296
$4,570
$2,364
$18,230
$35,326
0.5
+Indirect
$3,329
$573
$3,902
$2,201
$610
$6,713
$11,828
0.1
Source: IMPLAN®
Page 66 of 84
+Induced
$3,107
$412
$3,519
$2,612
$643
$6,774
$10,702
0.1
=Total
$17,044
$1,673
$18,717
$9,383
$3,617
$31,717
$57,856
0.7
Table 55. Estimated Tax Impact from the Spending by Non-Local Vendors at the Northeastern Pennsylvania Home and
Garden Show (2013 Dollars)
Federal Tax Impact
Total Federal Tax
Dividends
Grand Total
Source: IMPLAN
Employee
Compensation
$892
$1,163
Proprietor
Income
$61
Indirect Business
Tax
Households
Corporations
$314
$125
$36
$637
$1,162
$2,055
$61
$9
$18
$0
$475
$1,162
Total
$953
$1,163
$314
$125
$36
$637
$1,162
$637
$4,390
$4
$4
$9
$18
$1,514
$1,341
$28
$0
$245
$14
$122
$373
$60
$15
$7
$8
$1,514
$1,341
$28
$0
$245
$14
$122
$373
$60
$15
$7
$8
$27
$0
$3,142
$463
$126
$3,758
$2,082
$61
$3,617
$1,625
$763
$8,148
®
Page 67 of 84
Total Spending by Performers and Exhibitors at Trade Shows
Based on the assumptions indicated above along with their respective spending, Tables
56 and 57 provide the estimated impact from the total spending by performers and exhibitors
during 2013.
by Performers and Exhibitors at Trade Shows during 2013 (2013 Dollars)
+Proprietor Income
=Labor Income
=Total Value Added
Output
Direct
$97,245
$6,499
$103,744
$40,521
$21,474
$165,739
$319,077
4.7
+Indirect
$29,837
$5,128
$34,965
$19,861
$5,485
$60,311
$106,111
0.8
Source: IMPLAN®
Page 68 of 84
+Induced
$28,353
$3,761
$32,114
$23,839
$5,867
$61,820
$97,668
0.8
=Total
$155,435
$15,388
$170,823
$84,221
$32,826
$287,870
$522,856
6.3
Table 57. Estimated Tax Impact from the Spending by Performers and Exhibitors at Trade Shows during 2013 (2013 Dollars)
Federal Tax Impact
Total Federal Tax
Dividends
Grand Total
Source: IMPLAN
Employee
Compensation
$8,139
$10,608
Proprietor
Income
$557
Indirect Business
Tax
Households
Corporations
$2,854
$1,131
$324
$5,717
$10,604
$18,747
$557
$86
$168
$0
$4,309
$10,604
Total
$8,696
$10,608
$2,854
$1,131
$324
$5,717
$10,604
$5,717
$39,934
$32
$32
$86
$168
$13,745
$12,172
$250
$0
$2,225
$125
$1,091
$3,401
$551
$137
$63
$76
$13,745
$12,172
$250
$0
$2,225
$125
$1,091
$3,401
$551
$137
$63
$76
$254
$0
$28,517
$4,228
$1,123
$34,122
$19,001
$557
$32,826
$14,832
$6,840
$74,056
®
Page 69 of 84
Visiting Hockey Team Expenditures
The data which were used for estimating the economic impact from visiting team
expenditures is based on what the Wilkes-Barre/Scranton Penguins spend annually when they
travel. The impact region is the area within a 15-mile radius of the arena. Therefore, Tables 58
and 59 provide the estimated impact on the 15-mile radius regional economy from visiting
hockey team expenditures during 2013.
Table 58. Estimated Impact on the 15-Mile Radius Regional Economy from Visiting
Hockey Team Expenditures (2013 Dollars)
+Proprietor Income
=Labor Income
=Total Value Added
Output
Direct
$91,843
$8,144
$99,987
$40,673
$13,187
$153,847
$271,720
4.2
+Indirect
$21,885
$3,922
$25,807
$14,343
$3,849
$43,999
$77,043
0.6
Source: IMPLAN®
Page 70 of 84
+Induced
$25,723
$3,412
$29,135
$21,627
$5,322
$56,084
$88,608
0.8
=Total
$139,451
$15,478
$154,929
$76,643
$22,358
$253,930
$437,371
5.6
Table 59. Estimated Tax Impact from Visiting Hockey Team Expenditures (2013 Dollars)
Federal Tax Impact
Total Federal Tax
Dividends
Grand Total
Source: IMPLAN
Employee
Compensation
$7,302
$9,517
Proprietor
Income
$560
Indirect Business
Tax
Households
Corporations
$1,944
$771
$221
$5,202
$9,627
$16,819
$560
$77
$151
$0
$2,936
$9,627
Total
$7,862
$9,517
$1,944
$771
$221
$5,202
$9,627
$5,202
$35,144
$29
$29
$77
$151
$9,362
$8,291
$170
$0
$1,515
$85
$993
$3,087
$500
$124
$57
$69
$9,362
$8,291
$170
$0
$1,515
$85
$993
$3,087
$500
$124
$57
$69
$228
$0
$19,423
$3,837
$1,022
$24,510
$17,047
$560
$22,359
$13,464
$6,224
$59,654
®
Page 71 of 84
Total Estimated Impact from the Spending by Performers, Trade Show Exhibitors and Members
of the Visiting Hockey Team
Tables 60 and 61 provide the estimated economic impact on the 15-mile radius region
from spending by people who are performers, trade show exhibitors or members of the visiting
hockey team.
Table 60. Total Estimated Impact on the 15-Mile Radius Regional Economy from the
Spending by People who are Performers, Exhibitors at Trade Shows or Members of the
Visiting Hockey Team during 2013 (2013 Dollars)
+Proprietor Income
=Labor Income
=Total Value Added
Output
Direct
$189,089
$14,643
$203,732
$81,194
$34,661
$319,587
$590,797
8.9
+Indirect
$51,721
$9,050
$60,771
$34,204
$9,333
$104,308
$183,154
1.4
Source: IMPLAN®
Page 72 of 84
+Induced
$54,077
$7,173
$61,250
$45,465
$11,189
$117,904
$186,275
1.6
=Total
$294,887
$30,866
$325,753
$160,863
$55,184
$541,800
$960,226
11.9
Table 61. Total Estimated Tax Impact from the Spending by Performers, Exhibitors at Trade Shows or Members of the
Visiting Hockey Team during 2013 (2013 Dollars)
Federal Tax Impact
Total Federal Tax
Dividends
Grand Total
Source: IMPLAN
Employee
Compensation
$15,440
$20,124
Proprietor
Income
$1,117
Indirect Business
Tax
Households
Corporations
$4,798
$1,902
$545
$10,919
$20,231
$35,564
$1,117
$163
$320
$0
$7,245
$20,231
Total
$16,557
$20,124
$4,798
$1,902
$545
$10,919
$20,231
$10,919
$75,076
$61
$61
$163
$320
$23,107
$20,463
$420
$0
$3,740
$209
$2,084
$6,488
$1,051
$261
$119
$145
$23,107
$20,463
$420
$0
$3,740
$209
$2,084
$6,488
$1,051
$261
$119
$145
$483
$0
$47,939
$8,064
$2,145
$58,631
$36,047
$1,117
$55,184
$28,295
$13,064
$133,707
®
Page 73 of 84
Total Estimated Impact from Visitation
from visitation.
Table 62. Total Estimated Impact on the 15-Mile Radius Regional Economy from
Visitation during 2013 (2013 Dollars)
+Proprietor Income
=Labor Income
=Total Value Added
Output
Direct
$7,637,578
$359,771
$7,997,349
$2,446,143
$1,212,905
$11,656,397
$19,245,937
324.7
+Indirect
$1,396,055
$243,437
$1,639,492
$988,298
$261,838
$2,889,628
$4,979,665
38.2
Source: IMPLAN®
Page 74 of 84
+Induced
$1,967,977
$261,046
$2,229,023
$1,654,827
$407,314
$4,291,164
$6,779,386
58.6
=Total
$11,001,610
$864,254
$11,865,864
$5,089,268
$1,882,057
$18,837,189
$31,004,988
421.5
Table 63. Total Estimated Tax Impact from Visitation during 2013 (2013 Dollars)
Federal Tax Impact
Total Federal Tax
Dividends
Grand Total
Source: IMPLAN
Employee
Compensation
$576,053
$750,796
Proprietor
Income
$31,271
Indirect Business
Tax
Households
Corporations
$163,634
$64,873
$18,590
$345,444
$735,375
$1,326,849
$31,271
$6,065
$11,924
$0
$247,097
$735,375
Total
$607,324
$750,796
$163,634
$64,873
$18,590
$345,444
$735,375
$345,444
$2,686,036
$1,936
$1,936
$6,065
$11,924
$788,056
$697,904
$14,314
$0
$127,546
$7,141
$65,932
$235,826
$38,211
$9,489
$4,335
$5,264
$788,056
$697,904
$14,314
$0
$127,546
$7,141
$65,932
$235,826
$38,211
$9,489
$4,335
$5,264
$17,989
$0
$1,634,961
$293,125
$67,868
$2,013,943
$1,344,838
$31,271
$1,882,058
$1,028,500
$413,312
$4,699,979
®
Page 75 of 84
Total Estimated Impact from Operation and Visitation
from operation and visitation.
Table 64. Total Estimated Impact on the 15-Mile Radius Regional Economy from
Operation and Visitation during 2013 (2013 Dollars)
+Proprietor Income
=Labor Income
=Total Value Added
Output
Direct
$12,300,862
$2,112,585
$14,413,447
$2,904,270
$3,346,843
$20,664,560
$37,984,232
917.4
+Indirect
$3,272,293
$624,786
$3,897,079
$1,989,100
$684,115
$6,570,294
$11,689,390
112.2
Source: IMPLAN®
Page 76 of 84
+Induced
$3,746,389
$496,872
$4,243,261
$3,148,779
$774,724
$8,166,764
$12,903,476
111.7
=Total
$19,319,544
$3,234,243
$22,553,787
$8,042,149
$4,805,682
$35,401,618
$62,577,098
1,141.3
Table 65. Total Estimated Tax Impact from Operation and Visitation during 2013 (2013 Dollars)
Federal Tax Impact
Total Federal Tax
Dividends
Grand Total
Source: IMPLAN
Employee
Compensation
$1,011,586
$1,318,446
Proprietor
Income
$117,024
Indirect Business
Tax
Households
Corporations
$417,826
$165,647
$47,469
$545,877
$1,407,350
$2,330,032
$117,024
$10,650
$20,939
$0
$630,942
$1,407,350
Total
$1,128,610
$1,318,446
$417,826
$165,647
$47,469
$545,877
$1,407,350
$545,877
$5,031,225
$3,060
$3,060
$10,650
$20,939
$2,012,237
$1,782,041
$36,551
$0
$325,678
$18,233
$104,188
$451,321
$73,127
$18,161
$8,296
$10,075
$2,012,237
$1,782,041
$36,551
$0
$325,678
$18,233
$104,188
$451,321
$73,127
$18,161
$8,296
$10,075
$31,589
$0
$4,174,740
$560,980
$107,248
$4,874,557
$2,361,621
$117,024
$4,805,682
$1,968,330
$653,125
$9,905,782
®
Page 77 of 84
Construction of the New Savory Concessions and Bar during 2014 and 2015
An assumption was made that the impact region for construction of the new Savory
Concessions and Bar to be Pennsylvania. This is because not all of the construction materials are
manufactured within Luzerne County. To account for any purchases of materials from nonPennsylvania sources, a Local Purchase Percentage was used.
It was assumed that all of the furniture, fixtures and equipment that will be used in the new
Savory Concessions and Bar was not manufactured or purchased from Pennsylvania sources.
Consequently, they are not included in the economic impact analysis.
Although the construction costs occur in 2014 and 2015, the resulting dollar amounts are
presented in standardized dollars, which are set to 2015. In order to avoid double-counting, the
number of jobs is presented in each of the two years.
The following data that was used in the analysis is in Table 66 and is from the Luzerne
County Convention Center Authority. Tables 67 and 68 provide the estimated economic impact
from the construction of the new Savory Concessions and Bar on the Pennsylvania economy.
Table 66. Data Used in Estimating the Impact on the Pennsylvania Economy from the
Construction of the New Savory Concessions and Bar during 2014 and 2015
2014 Cost
$48,802
Architecture and Engineering Services
Construction
Total
$48,802
2015 Cost
$3,835,158
$3,835,158
Source: Luzerne County Convention Center Authority
Table 67. Estimated Impact on the Pennsylvania Economy from the Construction of the New
Savory Concessions and Bar during 2014 and 2015 (Standardized Dollars)
+Proprietor Income
=Labor Income
=Total Value Added
Output
Employment Supported – 2014
Employment Supported – 2015
Direct
$1,352,687
$369,479
$1,722,166
($142,061)
$25,133
$1,605,238
$3,882,077
0.4
24.9
+Indirect
$546,624
$90,653
$637,277
$223,417
$57,255
$917,949
$1,692,622
0.1
9.7
Source: IMPLAN®
Page 78 of 84
+Induced
$597,425
$86,830
$684,255
$425,466
$97,788
$1,207,509
$1,917,522
0.2
13.9
=Total
$2,496,736
$546,962
$3,043,698
$506,822
$180,176
$3,730,696
$7,492,221
0.7
48.5
Table 68. Estimated Tax Impact from the Construction of the New Savory Concessions and Bar during 2014 and 2015
(Standardized Dollars)
Federal Tax Impact
Total Federal Tax
Dividends
Grand Total
Source: IMPLAN
Employee
Compensation
$118,963
$155,049
Proprietor
Income
$20,015
Indirect Business
Tax
Households
Corporations
$12,580
$4,987
$1,429
$33,350
$213,182
$274,012
$20,015
$1,214
$2,387
$0
$18,996
$213,182
Total
$138,978
$155,049
$12,580
$4,987
$1,429
$33,350
$213,182
$33,350
$559,555
$187
$187
$1,214
$2,387
$77,689
$68,802
$1,411
$0
$12,574
$704
$6,365
$68,365
$11,077
$2,751
$1,257
$1,526
$77,689
$68,802
$1,411
$0
$12,574
$704
$6,365
$68,365
$11,077
$2,751
$1,257
$1,526
$3,601
$0
$161,180
$84,976
$6,552
$256,309
$277,613
$20,015
$180,176
$298,158
$39,902
$815,864
®
Page 79 of 84
Operation of the New Savory Concessions and Bar during 2016
The operation of the new Savory Concessions and Bar, which is based on a sales
projection that was provided by SMG, has an impact region of 39 contiguous zip codes that are
within a 15-mile radius of the arena. This distance was based on an October 2003 OmniStats
report by the U.S. Department of Transportation, Bureau of Transportation Statistics. According
to the report, the average commuter travels approximately 15 miles one way to get to work.
It was assumed that the people who will be employed at the new Savory Concessions and
Bar will reside within the 39 zip codes that are within a 15-mile radius of the arena.
Tables 69 and 70 provide the estimated impact on the 15-mile radius regional economy
from the operation of the new Savory Concessions and Bar during 2016.
Table 69. Estimated Impact on the 15-Mile Radius Regional Economy from the Operation
of the New Savory Concessions and Bar during 2016 (2016 Dollars)
+Proprietor Income
=Labor Income
=Total Value Added
Output
Direct
$214,015
$17,333
$231,348
$55,442
$26,014
$312,804
$515,530
9.0
+Indirect
$38,261
$6,177
$44,438
$29,502
$8,496
$82,436
$146,936
0.9
Source: IMPLAN®
Page 80 of 84
+Induced
$56,329
$7,472
$63,801
$47,360
$11,656
$122,817
$195,486
1.6
=Total
$308,605
$30,982
$339,587
$132,304
$46,166
$518,057
$857,952
11.5
Table 70. Estimated Tax Impact from the Operation of the New Savory Concessions and Bar during 2016 (2016 Dollars)
Federal Tax Impact
Total Federal Tax
Dividends
Grand Total
Source: IMPLAN
Employee
Compensation
$16,159
$21,060
Proprietor
Income
$1,121
Indirect Business
Tax
Households
Corporations
$4,014
$1,591
$456
$8,980
$21,083
$37,219
$1,121
$170
$334
$0
$6,061
$21,083
Total
$17,280
$21,060
$4,014
$1,591
$456
$8,980
$21,083
$8,980
$74,464
$50
$50
$170
$334
$19,330
$17,119
$351
$0
$3,129
$175
$1,714
$6,761
$1,096
$272
$124
$151
$19,330
$17,119
$351
$0
$3,129
$175
$1,714
$6,761
$1,096
$272
$124
$151
$504
$0
$40,104
$8,404
$1,764
$50,776
$37,723
$1,121
$46,165
$29,487
$10,744
$125,240
®
Page 81 of 84
Conclusion
This economic impact analysis is based on an area that is a 15-mile radius from the arena
and for the construction of the new Savory Concessions and Bar, the economic impact is based
on the Pennsylvania economy. The total impact results are the following:
During 2013, the estimated impact on the area that is a 15-mile radius from the arena
from payroll expenses is the following:
 Total estimated employment supported of 575 jobs, which can be either full-time or parttime
 Total estimated labor income of $3.5 million, which consists of $2.8 million in estimated
employee compensation and $700,000 in estimated proprietor income
 Total estimated value added of $6.8 million
 Total estimated taxes of $2.1 million, which consists of an estimated $900,000 in federal
taxes and an estimated $1.2 million in state and local taxes
During 2013, the estimated impact from the non-payroll operating expenses of the arena
on the 15-mile radius region is the following:
 Total estimated taxes of $620,000, which consists of an estimated $340,000 in federal
taxes and an estimated $280,000 in state and local taxes
During 2013, the estimated impact on a region that consists of an area that is a 15-mile
radius from the arena from the operation of the Wilkes-Barre/Scranton Penguins hockey team is
the following:
Page 82 of 84
employee compensation and $1.4 million in estimated proprietor income
 Total estimated taxes of $2.4 million, which consists of an estimated $1.1 million in
federal taxes and an estimated $1.3 million in state and local taxes
During 2013, the estimated impact on a region that consists of an area that is a 15-mile
radius from the arena from the spending by people who are from outside that region and visit the
arena to attend a hockey game, concert, entertainment show, family show, trade show, religious
convention or graduation ceremony is the following:
 Total estimated labor income of $11.5 million, which consists of $10.7 million in
estimated employee compensation and $800,000 in estimated proprietor income
 Total estimated taxes of $4.6 million, which consists of an estimated $2.6 million in
federal taxes and an estimated $2.0 million in state and local taxes
During 2013, the estimated impact on a region that consists of a 15-mile radius of the
arena from the spending by performers, trade show exhibitors and members of visiting hockey
teams that come to play the Wilkes-Barre/Scranton Penguins is the following:
 Total estimated labor income of $330,000, which consists of $300,000 in estimated
 Total estimated value added of $540,000
From 2014 to 2015, the estimated impact on the Pennsylvania economy from
constructing the new Savory Concessions and Bar is the following:
Page 83 of 84
 Total estimated employment supported of 48 jobs in 2015, which can be either full-time
or part-time
Note: Due to the changing value of the dollar from year to year, the amounts are presented in
standardized dollars, which are set to Year 2015.
During 2016, the estimated impact on the 15-mile radius regional economy from
operating the new Savory Concessions and Bar will be the following:
 Total estimated labor income of $340,000, which consists of $310,000 in estimated
 Total estimated value added of $520,000
If the arena did not exist, some people would choose to travel outside the region to attend
an event, thus reducing family discretionary spending in our regional economy. For example, if
someone traveled to another area to see a show, they would spend dollars on gasoline to and
from the show, meals at a restaurant, snack foods, souvenirs and depending on distance, an
overnight stay, resulting in lost revenue or “leakage” to another region. Furthermore, it is known
that the loss would be greater because some people within the 15-mile radius area would travel
outside the region to spend discretionary dollars.
Page 84 of 84
Our Mission
The Northeastern Pennsylvania Alliance (NEPA) is a regional multi-county
economic development agency providing leadership, planning,
expertise and services to regional and local governments, businesses,
institutions and individuals through innovative and beneficial
collaborations and partnerships to enhance the economic development
and quality of life of the area.
1151 Oak Street • Pittston, PA 18640
Tel: 570.655.5581 & 866.758.1929 • Fax: 570.654.5137
www.nepa-alliance.org

The Economic Impact of the Mohegan Sun Arena at Casey Plaza

Transcription

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