HomeMy WebLinkAbout03-14 Bozeman Sports Park Economic Impact Analysis2014
Prepared by:
The Northern Rocky Mountain EDD
February 2014
BOZEMAN SPORTS PARK
AN ECONOMIC IMPACT ANALYSIS
Table of Contents
General Project Description ........................................................................................................................ 3
Definitions and Methods ............................................................................................................................. 4
Background and Methodology: Background and Methodology:................................................................ 5
About the Northern Rocky Mountain Economic Development District: ................................................... 5
Summary of Economic Impacts .................................................................................................................. 6
Economic Impact Report ............................................................................................................................ 7
General Project Description
This study analyzes the potential economic impacts of the proposed Bozeman Sports Park located in
Bozeman, Montana. The study is based on information provided by the developers and seeks to value
the land acquisition, construction, operation and key venues.
The Bozeman Sports Park is a multi-phase project designed to meet the current and future needs of the
Bozeman field sport community, specifically youth soccer and lacrosse, while providing a neighborhood park,
urban open space, and Safe-Route-To-School benefits for Bozeman’s northwestern neighborhoods.
Bozeman’s soccer and lacrosse community has undergone tremendous growth over the last 15 years since
Adam Bronken Field was built to accommodate a community of 300 players. Since its construction, these
communities have grown tenfold, numbering in excess of 3,000 registered participants in Bozeman Blitzz FC,
AYSO (American Youth Soccer Organization), Bozeman Adult League Soccer, and Gallatin Valley Lacrosse League.
The demand for suitable practice, league, tournament fields, and indoor practice facilities far outstrips the
supply currently provided by the Bozeman Public School system, MSU, and the Bozeman Parks and Recreation
Department. Access to these fields is tenuous with year to year arrangements that are threatened by multiple
demands, seasonal limitations, increased user fees, and in the case of MSU, a shrinking recreational land base.
As an economic driver, soccer and lacrosse tournaments in Bozeman, at a scale that is relevant, are untenable
given the lack of a sufficiently sized, centralized tournament venue. The Montana Youth Soccer Association and
the Montana High School Association have consistently denied Bozeman’s bids for tournaments citing
insufficient infrastructure for large multi-day tournaments. Bozeman’s ability to host spring and fall league
games are limited by short seasons and fields that were not sighted or designed for the extended seasons these
sports require. Bozeman’s inability to host tournaments during the shoulder seasons results in an economic loss
to our merchants and hoteliers.
To meet the current and growing demands of Bozeman’s youth and adult field sport teams, while providing a
significant economic driver for the community, the wholly volunteer, Bozeman Soccer Education Foundation in
conjunction with the Gallatin Valley Lacrosse League propose the acquisition, development, and co-
management of an 80 acre sports park located south and west of the intersection at Baxter and Flanders Mill
roads.
Definitions and Methods
The Project’s analysis reports on the following six categories:
1. Gross Economic Output: The aggregated market value of goods and services produced by
businesses and government enterprises in the economy. It is essentially equal to the revenue
collected by businesses (including indirect taxes) within the County or impact area.
2. Gross County Product: The total of value added created by the production of goods and
services in the economy. It represents the sum of labor compensation, capital type income and
indirect business taxes. Gross County Product is best described as new money added as a result
of the combined activities of this project.
3. Total Labor Income: The compensation to employees and self-employed proprietors including
both wages and indirect payments such as retirement benefits, health insurance and other
similar fringe benefits.
4. Total Employment: The number of jobs generated within the impact area including full-time
and part-time positions, salaried workers and sole proprietors.
5. Capital Income: The sum of income such as business profits, interest and rental income.
Capital Income is best described as non-labor benefits.
6. Indirect Business Tax: Taxes and fees not based in the businesses’ income. It may represent
sales taxes (if any) levied by the state and county and also property taxes levied against
businesses as well as federal, state and local fees.
The data sets used in this report are provided by Minnesota IMPLAN Group, Inc (MIG, Inc), the
developers of the IMPLAN® economic impact modeling system. IMPLAN® is used to create complete,
extremely detailed Social Accounting Matrices and multiplier models of local economies. Implan
enables users to make in-depth examinations of state, multi-county, county or sub-county and
metropolitan regional economies. Implan is used by more than 1,000 public and private institutions.
MIG, Inc. has been developing complex localized databases and serving public and private
organizations since 1993.
Background and Methodology
The analysis seeks to measure the economic impact of the proposed Bozeman Sports Park. The facility
is not yet constructed, the formal designs have not yet been rendered and although a site has been
identified the land has yet to be acquired.
Estimates for land acquisition and construction costs have been provided by the developer. A
preliminary budget has been assembled and a number of sport venues that would attract visitors have
been forecasted. It is not possible to know with certainty the actual expenditures or visitor counts.
The following assumptions draw on existing research and related data:
Estimated number of annual visitors
1
Estimated, 20,000 annual out-of-area visitor days to the Bozeman Sports Park.
Estimated annual visitor expenditures related to the Bozeman Sports Park
2
2.3 visitors comprise a visitor unit.
8,596 room nights per year.
The average hotel cost per visitor unit is $85.99.
Hotel costs represent 12% of daily expenditures.
Misc retail and service costs represent 24% of daily expenditures.
Auto repair and rentals represent 4% of daily expenditures
Restaurant and food expenses represent 26% of daily expenditures.
Gasoline and fuel expenses represent 34% of daily expenditures.
Total annual visitor related expenditures equal an estimated $6,231,415.
The report that follows represents a broader view than simply the Project’s direct expenditures or
employment. For example the analysis measures the economic “footprint” as dollars multiply inside
and outside of the market area and includes both direct and indirect impacts. This analysis seeks to
quantify the economic benefits to Gallatin County. The results of this report are not scientific but are
historically-representative of the economic impacts.
About the Northern Rocky Mountain Economic Development District:
The principals of the Northern Rocky Mountain Economic Development District have prepared
hundreds of economic impact reports for state agencies, cities, counties, economic development
districts and private corporations. Each report is based on IMPLAN datasets specific to the project’s
location and unique industry sectors. Robert Gilmore, the Executive Director, is the recipient of the
Ford Foundation’s Award for Innovations in American Government and the Council of State
Government’s Award for Innovation.
1 Estimates for annual visitors provided by the developer.
2
The percentages for this analysis were drawn from information provided in the Economic Review of the Travel Industry in
Montana, Jan 2013, The Institute for Tourism and Recreation Research (ITRR), Kara Grau, M.S., Norma Nickerson, Ph.D.,
Jacob Jorgenson
Summary of Economic Impacts
The Economic Impact Report (shown below) details the Project’s economic impacts. The impact
categories are described above in the “Definitions and Methods” section. In summary, it is estimated
that the business-related activities will produce the following economic benefits:
$21.9 million in Gross Economic Output
$12.4 million in Gross County Product.
$7.7 million in Total Labor Income
277 total jobs (full and part-time).
$3.3 million in Capital Income.
$1.2 million in Indirect Business Taxes and Fees.
Economic Impact Report
Gross Economic Output
The aggregated market value of goods and services produced by firms and
government enterprises in the County's economy. It is essentially equal to the
revenue collected by businesses (including indirect taxes) within the County.
Implan Industry Frequency Direct
Impact
Indirect
and
Induced
Impact
Total
Impact
Architectural and Engineering One Time $250,000 $98,017 $348,017
Construction related expenses One Time $6,750,000 $3,378,694 $10,128,694
Land Acquisition - Real estate One Time $2,070,000 $616,149 $2,686,149
Automotive related expenses On Going $249,256 $100,502 $349,758
Food services and drinking
places
On Going $1,620,168 $699,239 $2,319,407
Gasoline stations On Going $2,118,682 $732,914 $2,851,596
Hotels and motels On Going $747,770 $295,442 $1,043,212
Miscellaneous store retailers On Going $1,495,539 $678,890 $2,174,429
Office administrative services On Going $70,000 $28,023 $98,023
Totals: $15,371,415 $6,627,869 $21,999,284
Gross County Product
The total value added created by the production of goods and services in the local
economy. It is analogous to the concept of Gross Domestic Product at the national
level. It represents the sum of labor compensation, capital type income (profits,
interests and rents), and indirect business taxes (which are mainly sales taxes, but
also include property taxes and government mandated fees).
Implan Industry Frequency Initial
Purchase
Total
Impact
Architectural and Engineering One Time $250,000 $154,086
Construction related expenses One Time $6,750,000 $5,330,209
Land Acquisition - Real estate One Time $2,070,000 $1,761,759
Automotive related expenses On Going $249,256 $160,525
Food services and drinking places On Going $1,620,168 $1,075,345
Gasoline stations On Going $2,118,682 $1,803,855
Hotels and motels On Going $747,770 $613,834
Miscellaneous store retailers On Going $1,495,539 $1,456,292
Office administrative services On Going $70,000 $53,646
Totals: $15,371,415 $12,409,552
Total Labor Income
The compensation to employees and self-employed proprietors including both
wages and indirect payments such as retirement benefits, health insurance and
other similar fringe benefits.
Implan Industry Frequency Initial
Purchase
Total
Impact
Architectural and Engineering One Time $250,000 $54,571
Construction related expenses One Time $6,750,000 $4,143,025
Land Acquisition - Real estate One Time $2,070,000 $539,098
Automotive related expenses On Going $249,256 $108,976
Food services and drinking places On Going $1,620,168 $682,934
Gasoline stations On Going $2,118,682 $868,595
Hotels and motels On Going $747,770 $345,593
Miscellaneous store retailers On Going $1,495,539 $963,376
Office administrative services On Going $70,000 $31,339
Totals: $15,371,415 $7,737,508
Total Employment
The number of jobs generated within the County, and includes: * full-time and part-
time positions * salary workers *sole proprietors.
Implan Industry Frequency Initial
Purchase
Total
Impact
Architectural and Engineering One Time $250,000 2
Construction related expenses One Time $6,750,000 113
Land Acquisition - Real estate One Time $2,070,000 17
Automotive related expenses On Going $249,256 4
Food services and drinking places On Going $1,620,168 40
Gasoline stations On Going $2,118,682 38
Hotels and motels On Going $747,770 15
Miscellaneous store retailers On Going $1,495,539 48
Office administrative services On Going $70,000 1
Totals: $15,371,415 277
Capital Income
The sum of all property type income (such as business profits, interest income and
rental income) generated within the County.
Implan Industry Frequency Initial
Purchase
Total
Impact
Architectural and Engineering One Time $250,000 $92,255
Construction related expenses One Time $6,750,000 $967,685
Land Acquisition - Real estate One Time $2,070,000 $943,752
Automotive related expenses On Going $249,256 $28,671
Food services and drinking places On Going $1,620,168 $277,279
Gasoline stations On Going $2,118,682 $611,858
Hotels and motels On Going $747,770 $188,988
Miscellaneous store retailers On Going $1,495,539 $252,685
Office administrative services On Going $70,000 $20,040
Totals: $15,371,415 $3,383,212
Indirect Business Tax
Are taxes and fees that are not based in the businesses' income. For the most part
they represent sales taxes levied by the State and the county, but also include
property taxes levied against businesses as well as fees imposed by federal, state
and local governments.
Implan Industry Frequency Initial
Purchase
Total
Impact
Architectural and Engineering One Time $250,000 $7,260
Construction related expenses One Time $6,750,000 $219,500
Land Acquisition - Real estate One Time $2,070,000 $278,891
Automotive related expenses On Going $249,256 $22,878
Food services and drinking places On Going $1,620,168 $115,117
Gasoline stations On Going $2,118,682 $323,402
Hotels and motels On Going $747,770 $79,260
Miscellaneous store retailers On Going $1,495,539 $240,231
Office administrative services On Going $70,000 $2,266
Totals: $15,371,415 $1,288,805