city of arlington - economic / fiscal impact - proposed nfl stadium presentation of economic &...
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City of Arlington - Economic / Fiscal Impact - Proposed NFL Stadium
Presentation ofEconomic & Fiscal
ImpactsProposed NFL
Stadium
August 13, 2004
City of Arlington - Economic / Fiscal Impact - Proposed NFL Stadium
Since 1958….
Economics Research Associates
City of Arlington - Economic / Fiscal Impact - Proposed NFL Stadium
Our History
Founded
in 1958 EconomicPlanning for Disney
World
City of Arlington - Economic / Fiscal Impact - Proposed NFL Stadium
Our History
Since 1958
Over15,000
Assignments
Completed
City of Arlington - Economic / Fiscal Impact - Proposed NFL Stadium
International Reach, Personal Service
San Diego
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London
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www.econres.com
City of Arlington - Economic / Fiscal Impact - Proposed NFL Stadium
Our Services
Market Research
Feasibility Analysis
Economic
Impact
City of Arlington - Economic / Fiscal Impact - Proposed NFL Stadium
Our Core Competencies
• Economic Policy and Planning
• Recreation and Tourism
• Real Estate Services
City of Arlington - Economic / Fiscal Impact - Proposed NFL Stadium
Our Expertise
Theme Parks
Film Studios
Tourism Strategies
Retail Entertainment
Resorts
Cultural AttractionsSpecialty Attractions
Sports Venues
Visitor Centers
Events
Sports Venues
City of Arlington - Economic / Fiscal Impact - Proposed NFL Stadium
Local Experience
- City of Arlington - Lakes of Arlington
- Los Colinas Land Valuation
- City of Seabrook
- University of Texas
- Hampstead Group
- United Commercial Properties
City of Arlington - Economic / Fiscal Impact - Proposed NFL Stadium
Key Experience - Economic & Fiscal
- City of New York (arena/stadium)
- San Francisco Giants
- Portland Oregon Sports Authority
- Staples Center
- Pittsburgh Penguins (arena)
- 2002 Winter Olympics
- University of Southern California
City of Arlington - Economic / Fiscal Impact - Proposed NFL Stadium
Scope of Services
• Economic Impact Analysis
• Fiscal Impact Analysis
Proposed Arlington Football Stadium
City of Arlington - Economic / Fiscal Impact - Proposed NFL Stadium
Analysis Overview
• Economic Impacts
– One-time construction impacts – direct on-site and off-site spending
generated by stadium operations and patrons
– “Multiplier” effect generated by re-spending of the initial direct
multipliers
– Impacts to the City of Arlington and to Tarrant County
– Impacts are presented in terms of:
a) Total impacts
b) Wage & Salary impacts
c) FTE Employment
City of Arlington - Economic / Fiscal Impact - Proposed NFL Stadium
Methodology
• Economic Impacts
– Conservative View
– Utilized ‘Net’ multipliers
– Excluded from impacts
a) NFL Player Salaries
b) NFL TV & Property Revenues
c) Luxury Suite & Club Seat Premiums
d) Advertising & Naming Rights
City of Arlington - Economic / Fiscal Impact - Proposed NFL Stadium
Methodology• Economic Impacts
– Determine net operating/construction expenditures of the facility
(by industry classification)
– Adjust for amounts expended in Tarrant County
– Apply corresponding economic multiplier factors based on RIMS II
industry multiplier factors developed by the BEA
City of Arlington - Economic / Fiscal Impact - Proposed NFL Stadium
Analysis Overview• Fiscal Impacts
– Identify additional fiscal revenues to the City of
Arlington’s General Fund created from:
• Direct on site (or event related) activity
– Ticket sales
– Parking
– Concessions and merchandise• Identify off-site activity
– Induced off-site retail and dining
– Gasoline purchases
– Hotel and motel usage
City of Arlington - Economic / Fiscal Impact - Proposed NFL Stadium
Methodology• Fiscal Impacts
– Examine the City’s current General Fund
– Identify taxable revenue streams that are potentially affected by the
new development
– Define on-site and off-site taxable revenues generated by facility
operations based on:
• Facility operating pro-forma (on-site expenditures) – provided by the Dallas
Cowboys
• Comparable NFL facilities and market characteristics (off-site expenditures)
– Apply appropriate tax rates to estimate fiscal revenue from all sources
City of Arlington - Economic / Fiscal Impact - Proposed NFL Stadium
Major Operating Assumptions• Stadium and franchise projections were provided by the Dallas
Cowboys• Annual Events
– Cowboy Games (pre and regular season)– Concerts– High School Football– Soccer– College Football– NCAA Bowl Alliance– Truck & Tractor– Festivals– Other
• Mega Events– Super Bowl– NCAA Final Four– Political Conventions
City of Arlington - Economic / Fiscal Impact - Proposed NFL Stadium
Major Findings – Economic Impacts
One Time Construction Impacts
(2010 dollars)
Economic FTEOutput Employment
Tarrant County $348,660,000 2,222
City of Arlington $71,764,000 457
Source: Economics Research Associates.
City of Arlington - Economic / Fiscal Impact - Proposed NFL Stadium
Major Findings – Economic Impacts
Annual Economic Impacts
(2010 dollars)
Economic FTEOutput Employment
Tarrant County $416,130,000 1,940
City of Arlington $238,096,000 807
Source: Economics Research Associates.
City of Arlington - Economic / Fiscal Impact - Proposed NFL Stadium
Major Findings – Economic Impacts
Cumulative 30 Year Impacts
0% 3% 5%
Tarrant County $12.48 billion $19.80 billion $27.65 billion
City of Arlington $7.14 billion $11.32 billion $15.82 billion
Source: Economics Research Associates.
City of Arlington - Economic / Fiscal Impact - Proposed NFL Stadium
Major Findings – Fiscal Impacts
Annual Fiscal Impacts
(2010 dollars)
FTE Annual Employment Fiscal Impact
Tarrant County 1,940 $0
City of Arlington 807 $2,916,000
Source: Economics Research Associates.
City of Arlington - Economic / Fiscal Impact - Proposed NFL Stadium
Major Findings – Fiscal Impacts
Annual Fiscal Impacts
(2010 dollars)
Year 1 Year 30
City $2,916,000 $138,729,912County $0 $0
Total $2,916,000 $138,729,912
Source: Economics Research Associates.
Annual Operations
City of Arlington - Economic / Fiscal Impact - Proposed NFL Stadium
Major Findings – Mega Events
Economic & Fiscal Impacts
(2010 dollars)Economic Annual
Output Fiscal Impact
Tarrant CountySuper Bowl $425,811,000 $0Final Four $126,033,000 $0Conventions $246,121,000 $0
City of ArlingtonSuper Bowl $245,077,000 $4,313,000Final Four $72,042,000 $1,496,000Conventions $137,984,000 $3,817,000
Source: Economics Research Associates.
City of Arlington - Economic / Fiscal Impact - Proposed NFL Stadium
Presentation ofEconomic & Fiscal
ImpactsProposed NFL
Stadium
August 13, 2004