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Home My WebLink About14- Northern Rocky Mountain Economic Impact Analysis of the Bozeman Sports Park BOZEMAN SPORTS PARK 2014 Baxter Lane UK's ' " Litt h - L _ E_ I4I. Vic, �__, I I: : : .._,.� ., i priii Li.i 0 E , . '"-Jur sof i I .- Ur- .O 1 'L..: , 1 l'' 11 I ' . '----i . rPivo:Head `. (�,- `�1 ; '8O �� c a% ��0, ' :W' 'u I P MIIIIIIIIIIIIE=F' IMPACT ANALYSIS 11 Future Fields • Phase I 11 Multi-Sport Fieds e Prepared by: � The Northern Rocky Mountain EDD February 2014 Northern Rocky Mountain ECONOMIC DEVELOPMENT DISTRICT 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 1. p-ort f. - • 5 - Proposal Location and Needs 4 r, Chiefdle Joseph MidSchool 5 "I,I Site : ' 'egional Park Meadowlark Elem. Itittt School 111111 �� B.H.S. ...4. . " :ronken Field SU Lincoln Jr. .Fields iiiiiii Area Map tit Iffitt 1997-300 Players 2013-3000 Players Brookes Field Sports Field Park Site Selection 15 Years Within City boundary. User Growth Close proximity to current and projected (Blitzz Soccer,AYSO,Adult Soccer,Gallatin Valley Lacrosse) population growth. * 50+ acre tract serves tournament and growth needs. Anticipated User Groups * Fair market price per acre. Blitzz Soccer Club * Micro-climate allows for longer seasonal use Gallatin Valley Lacrosse Club compared to sites further North and South. * Sufficient water rights to facilitate quality turf AYSO fields. Bozeman Adult League Soccer * Existing topography minimizes grading costs. Bozeman Rugby • Direct access from feeder roads. Avalanche Soccer Club 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 visitors1 • Estimated, 20,000 annual out-of-area visitor days to the Bozeman Sports Park. Estimated annual visitor expenditures related to the Bozeman Sports Park2 • 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. 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(TTRR),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. • $1.2 million in Indirect Business Taxes and Fees. Baxter Lane 1D ^iiI 1 ' I 1 iit 1 impoisiti`R . .. ..:. I` ;0_.3_ n o of a ,.,..177.6...1.1^o 0 0 L I -y e- - - _ - - - _r'irot Heod i 1. n ..r '$ i. 1, \\\\A. 1 . i _...,-•--c r k f Fenced Dng iIII /1 Area klik _T__rails Future Fields \-,_f 1 Context Plan =ar , �"°' Phase I (� 11 Multi-Sport Fie ds �° 20] 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 Indirect Total Impact and Impact Induced Impact !Architectural and Engineering One Time , $250,0001 $98,017 $348,017 Construction related expenses One Time i $6,750,0001 $3,378,694 $10;128,694; Land Acquisition - Real estate One Time j $2,070,0001 $616,149 $2,686,149 'Automotive related expenses On Going $249,2561 $100,502 $349,758 Food services and drinking On Going i $1,620,168 $699,239 $2,319,407 places ,Gasoline stations On Going $2,118,6821 $732,9141 $2,851,596, Hotels and motels On Going $747,7701 $295,4421 $1,043,212 Miscellaneous store retailers On Going $1,495,5391 $678,8901 $2,174,429, Office administrative services On Going 1 $70,0001 $28,0231 $98,023 Totals: $15,371,4151 $6,627,8691 $21,999,2841 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 Total Purchase Impact lArchitectural and Engineering One Time $250,0001 $154,086' Construction related expenses One Time $6,750,0001 $5,330,209 (Land Acquisition - Real estate One Time $2,070,000' $1,761,759 'Automotive related expenses On Going $249,2561 $160,525 Food services and drinking places On Going $1,620,1681 $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: $15,371,4151$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 Total Purchase Impact Architectural and Engineering One Time $250,000 $54,5711 :Construction related expenses One Time $6,750,000 $4,143,0251 ;Land Acquisition - Real estate One Time $2,070,000 $539,0981 !Automotive related expenses On Going $249,256L $108,9761 ',Food services and drinking places On Going $1,620,1681 $682,9341 Gasoline stations On Going $2,118,682 $868,5951 (Hotels and motels y-- On Going $747,770 $345,593 Miscellaneous store retailers On Going $1,495,539 $963,376 ;Office administrative services On Going 1 $70,000 $31,3391 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 Total Purchase Impact ;Architectural and Engineering One Time $250,000 21 Construction related expenses One Time $6,750,000) 113 ;Land Acquisition - Real estate One Time $2,070,0001 17; ;Automotive related expenses On Going $249,256) 4; ;Food services and drinking places On Going $1,620,168) 401 'Gasoline stations On Going $2,118,682) 38 Hotels and motels On Going $747,770) 151 Miscellaneous store retailers On Going $1,495,539 48 Office administrative services On Going $70,000 1 Totals: I $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 Total Purchase 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 $747,7701 $188,988 Miscellaneous store retailers On Going $1,495,5391 $252,6851 Office administrative services On Going $70,0001 $20,0401 Totals:[ I $15,371,4151 $3,383,2121 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 Total Purchase Impact Architectural and Engineering One Time $250,000 $7,260 1 Construction related expenses One Time $6,750,000 $219,500 Land Acquisition - Real estate One Time $2,070,0001 $278,891 Automotive related expenses On Going $249,256 $22,878 !Food services and drinking places On Going $1,620,1681 $115,117 Gasoline stations On Going $2,118,6821 $323,402 'Hotels and motels On Going $747,770 $79,2601 Miscellaneous store retailers On Going $1,495,5391 $240,2311 ;Office administrative services On Going 1 $70,0001 $2,2661 ^—�—_ Totals: _ --- 1 $15,371,4151 $1,288,805