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Agenda 07/23/2019 Item #16F1 (09/10/2019 Item #16F1D for 07/23/2019 Absentia)07/23/2019 EXECUTIVE SUMMARY Recommendation to approve the first amendment to Professional Service Agreement # 18 -7404, Collier County Sports Complex Marketing and Support, to Sports Fields, Inc. in the not to exceed amount of $950,000, with a limited Notice to Proceed capping expenditures at $150,000 for promotional activities until Board ratification of the entire amendment. OBJECTIVE: To begin the initial startup, marketing, and, management phase of the Collier County Sports and Special Events Complex through the approval of the first amendment to contract #18-7404 for continued professional services from Sports Fields, Inc. CONSIDERATIONS: Sports Fields, Inc. (SFI) has performed services under Phase I of Professional Services Agreement #18-7404 that was awarded on October 23, 2018. The Phase I Scope of Services for SFI included consulting and assistance during the design and construction of the complex using a fee schedule not-to-exceed $50,000 and not-to-exceed 120 days in length. Specific deliverables were outlined per the contract, which SFI has to fulfill prior to entering the next phase of the contract. SFI has developed and delivered a business plan necessary to enter Phase II of the contract for management, operation, advertising, and marketing of the complex. The plan, and draft 1-year, 5-year, and 10-year pro-forma documents, have been reviewed with staff and used to construct the Phase II approach to the County’s contract with SFI. Per the Phase II Scope of Services, using the information gathered during Phase I, staff has been negotiating the Phase II piece of the contract. In consultation with SFI, County staff is recommending that Phase II be split into two (2) sub-phases. Phase II-A will comprise the operational startup of the facility, to include marketing, advertising, and partial equipping and staffing of the complex up to commencement of operations. Phase II-B will be brought forward in advance of construction completion to transfer the complete management of the complex prior to opening day. This phased approach allows us to time the transition from a predominantly marketing, consulting, and start-up operation to a full management contract based on a negotiated operating agreement that meets the actual date of completion. While SFI would prefer to incorporate the transition to the operating agreement into this contract, County staff believes that we will achieve a better outcome through continued negotiations prior to opening day. Phase II-A will start August 1, 2019 and end May 1, 2019, when it is anticipated that the complex will be turned over to SFI to commence regular operations. The total cost of Phase II-A is not-to-exceed $950,000. Phase IIA includes the following cost categories: • Category A: Corporate Marketing and Consulting/Management Fees (not-to-exceed $444,000) • Category B: Operations Start-up Costs (not-to-exceed $341,000) • Category C: Limited Park Staffing (not-to-exceed $165,000) Costs incurred in Phase II-A will be pass-through costs, fully reimbursable, and auditable at any time by the County. Contract exhibits are provided for budgeting and scheduling purposes, the timing and adherence of actual expenditures to identified spending categories may differ. 16.F.1 Packet Pg. 37 07/23/2019 Phase II-B is anticipated to begin May 1, 2020. The details of Phase II-B will be negotiated with SFI over the course of the operational startup phase and presented as an amendment to this contract at a later Date. Due to the issuance of this contract amendment coming during the summer in absentia, the contractor will be issued a limited Notice to Proceed that limits any costs incurred to $150,000 until the Board is back and can ratify the amendment in September. It is essential that SFI begins the marketing, management, and operational consulting phase on as soon as possible so that the County has the highest positive exposure when the facility opens in the spring/summer of 2020. Most sports events in the industry are organized, scheduled and booked a minimum of one year in advance. The importance of beginning the operational start-up items identified in this phase immediately is to start getting the necessary information in front of potential end-users as soon as possible. This includes attendance at industry leading trade shows, such as Connect Sports in Louisville, Kentucky taking place August 25 - 28, 2019. Along with the marketing aspects of the park come the operational start-up tasks ranging from staffing and hiring to standard operating procedure manuals, website, branding and social media account activation. All of these items take time in their own silo, however as you incorporate all of the items together with the necessary chronological order, it is imperative that the process begins as soon as possible. Approval of this item by the County Manager is subject to formal ratification by the Board of County Commissioners. If the decision by the County Manager is not ratified by that Board, the Amendment shall be enforceable against Collier County only to the extent authorized by law in the absence of such ratification by that Board. FISCAL IMPACT: Phase II-A of the contract with SFI will not exceed $950,000. Funding for the FY19 portion of Phase II-A of the Contract is currently available in Amateur Sports Complex Fund (759). Fund 759 is comprised of transfers from the General Fund (001) and TDC Promotions fund (184). Funding for the FY20 portion of the contract is budgeted in the proposed FY20 Sports Complex budget. GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this action. LEGAL CONSIDERATIONS: This item is approved for form and legality and requires a majority vote for Board action. - JAK RECOMMENDATION: That the Board of County Commissioners approve the first amendment to Professional Service Agreement # 18-7404, Collier County Sports Complex Marketing and Support, to Sports Fields, Inc. in the not to exceed amount of $950,000, with a limited Notice to Proceed capping expenditures at $150,000 for promotional activities until Board ratification of the entire amendment. Prepared by: Sean Callahan, Executive Director, Corporate Business Operations ATTACHMENT(S) 1. 18-7404 Sports Complex Amendment CAO approved (PDF) 2. Collier Business Plan Final (PDF) 16.F.1 Packet Pg. 38 07/23/2019 COLLIER COUNTY Board of County Commissioners Item Number: 16.F.1 Doc ID: 9665 Item Summary: Recommendation to approve the first amendment to Professional Service Agreement # 18-7404, Collier County Sports Complex Marketing and Support, to Sports Fields, Inc. in the not to exceed amount of $950,000, with a limited Notice to Proceed capping expenditures at $150,000 for promotional activities until Board ratification of the entire amendment. Meeting Date: 07/23/2019 Prepared by: Title: Executive Secretary to County Manager – County Manager's Office Name: MaryJo Brock 07/23/2019 11:17 AM Submitted by: Title: County Manager – County Manager's Office Name: Leo E. Ochs 07/23/2019 11:17 AM Approved By: Review: County Attorney's Office MaryJo Brock Level 3 County Attorney's Office Review Skipped 07/23/2019 11:17 AM Office of Management and Budget MaryJo Brock Level 3 OMB Gatekeeper Review Skipped 07/23/2019 11:17 AM County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 07/23/2019 12:12 PM Board of County Commissioners MaryJo Brock Meeting Pending 07/23/2019 9:00 AM 16.F.1 Packet Pg. 39 16.F.1.a Packet Pg. 40 Attachment: 18-7404 Sports Complex Amendment CAO approved (9665 : Sports Complex Marketing and Support) 䨀 椀 洀  䄀 爀 渀 漀 氀 搀 圀 椀 氀 氀  匀 瀀 攀 渀 挀 攀 16.F.1.a Packet Pg. 41 Attachment: 18-7404 Sports Complex Amendment CAO approved (9665 : Sports Complex Marketing and Support) 16.F.1.a Packet Pg. 42 Attachment: 18-7404 Sports Complex Amendment CAO approved (9665 : Sports Complex Marketing and Support) 16.F.1.a Packet Pg. 43 Attachment: 18-7404 Sports Complex Amendment CAO approved (9665 : Sports Complex Marketing and Support) 16.F.1.a Packet Pg. 44 Attachment: 18-7404 Sports Complex Amendment CAO approved (9665 : Sports Complex Marketing and Support) 16.F.1.a Packet Pg. 45 Attachment: 18-7404 Sports Complex Amendment CAO approved (9665 : Sports Complex Marketing and Support) 16.F.1.a Packet Pg. 46 Attachment: 18-7404 Sports Complex Amendment CAO approved (9665 : Sports Complex Marketing and Support) 16.F.1.a Packet Pg. 47 Attachment: 18-7404 Sports Complex Amendment CAO approved (9665 : Sports Complex Marketing and Support) SFI BUSINESS PLAN COLLIER COUNTY SPORTS PARK & YOUTH SPORTS TOURISM Created For: 16.F.1.b Packet Pg. 48 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) July 17, 2019 Sean Callahan Executive Director Corporate Business Operations Naples, FL 34104 Dear Mr. Callahan: In 2018, the Board of County Commissioners of Collier County entered into an agreement with Sports Fields, Inc. (SFI) to provide consulting services for the new Collier County Sports Complex. As part of these services, SFI has worked closely with the project team to assist with a number of deliverables throughout the design phase of the project that we believe will have a long lasting positive impact on the project in a number of different ways, including but not limited to: guest experience, community impact, economic impact and profitability. As part of our agreement, SFI was also engaged to complete it’s own business plan, financial analysis and economic impact report for the project. SFI’s unique approach of self-operations and creative management has a long and proven track record of creating facilities that deliver an immense amount of economic impact, increase local resident opportunities and quality of life, and drive profitability. The business plan included in this package looks at the first ten years of operations at both the new sports complex as well as tournament operations at North Collier Regional Park. As you will see, the approach is a creative one, with our structure starting as a management entity and evolving into an operations team. The purpose of this strategy is to not overspend or overuse assets in the initial years while the complex is being phased in; while still creating opportunities for events that will drive visitation and in-market spending. This systematic approach allows the complex to grow its operations effectively and efficiently while creating a solid long-term foundation and positive reputation in the local, regional and national landscapes of youth sports tourism. We are excited to explore this business plan with you and your team and look forward to continuing our partnership as we work together on what we are confident will be one of the best sports complexes in the entire country. Sincerely, Jim Arnold Director of Business Development Sports Fields Inc. 3760 Sixes Rd. Suite 126-331 Canton, GA 30114 16.F.1.b Packet Pg. 49 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) 2019START-UPSCHEDULE 16.F.1.b Packet Pg. 50 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) 2019 START-UP It is anticipated that SFI will enter into a Phase 2A agreement with Collier County by August 1, 2019. Phase 2A will cover all of the necessary operational start-up tasks for the park to have a successful opening on or around May 1,2020. It is important to note that these services will take place parallel to the construction of the facility, and include a variety of operational tasks that are time sensitive and need to happen in a chronological order. Most sports events in the industry are organized, scheduled and booked a minimum of one year in advance. The importance of beginning the operational start-up items identified in this section immediately is to be able to start getting the necessary information in front of potential end-users as soon as possible. Along with the marketing aspects of the park come the operational start-up tasks ranging from staffing and hiring to standard operating procedure manuals, website, branding and social media account activation. All of these items take time in their own silo, however as you incorporate all of the items together with the necessary chronological order, it is imperative that the process begins as soon as possible. A full schedule break down of these tasks can be found at the end of this section. It is important to note that one of the first key dates is the CONNECT sports trade show that is scheduled for the week of August 26th. While the date is a few weeks after the anticipated schedule for the activation of Phase 2A; SFI has already started to put the planning in place for this event as the who requires materials, schedules, and event set up to happen far in advance of the event date. Phase 2A is broken up into three sections: • Corporate Marketing and Consulting/Management Fees • Operations Start-up Costs • Limited Park Staffing Descriptions of these phases can be found on the following pages, along with brief descriptions of items included in each section. 16.F.1.b Packet Pg. 51 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) CORPORATE MARKETING & CONSULTING FEES During the Category A time-frame, Sports Fields, Inc (SFI) will perform a variety of services via the corporate staff to prepare for the launch of the sports complex in May of 2020. This will include a range of individuals based out of our Canton, GA office that will provide services including project management, accounting, sales, marketing, and operations support. These services include, but are not limited to: Branding SFI will provide consulting support for the design and development of key branding elements to include, but not limited to: website, logo, marketing materials. Marketing SFI will provide consulting support and real marketing services including, but not limited to: digital advertising, print advertising, trade shows and conferences, and CRM/email marketing. Partnerships SFI will prepare a partnership sales package and begin the sales process by engaging local business, delivering proposals, and working with Superlative Group to avoid any conflicts of interest and ensure fulfillment of partnership assets. Sales Support SFI will provide as needed sales support for major events and to attract potential business to the sports complex in future years. Operations Manual & Standard Operating Procedures SFI will take the best practices and standard operating procedures from our other existing facilities to create an Operations Manual for the facility in Collier County. While some practices translate directly, every sports park is different. T his i s a critical step t o ensure o ur s taff, as we ll as th e County, are set up for success from Day 1. Travel SFI’s corporate team will be heavily involved in the pre-opening phase. As such, there will be substantial travel between Atlanta and Collier County during this time period. While the exact schedule will be determined by needs, it is expected that members of SFI’s team will be in market throughout the fall, winter, and spring prior to the May 2020 opening. 16.F.1.b Packet Pg. 52 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) OPERATIONS START-UP COSTS Category B will entail pre-opening costs necessary to open an operational sports park that coincides with the substantial completion of the construction phase. In order to maximize the assets once completed, there is a significant amount of groundwork that must be completed on the operations in order to be operational. These include, but are not limited to: Hiring There are hiring costs that go along with the start up of a park this size with three major cost centers. Every employee, part time and full time, must undergo a background check and drug screen before they will be hired by SFI. This is core to our mission of providing a safe environment for families, but does come at a cost, particularly when hiring an entire staff. Future years will be considerably lower as we supplement our staff in certain positions that turnover. SFI also strives to identify and hire the best possible candidates for the available positions and doing so requires posting job listings on top networking sites that charge membership or listing fees. Finally, while a unique situation, there can be relocation fees if the perfect candidate does not already live in the local area. While rare and on a case-by-case basis, this will be addressed throughout the staffing process. Hiring costs are all those costs associated with bringing full-time, part-time, and hourly staff on board at the park. These costs will include items such as background checks and job postings. Marketing There are a variety of marketing avenues that SFI will explore in the pre-opening phase in order to create awareness and buzz around the sports complex. These include digital advertising, print advertising, and CRM/email marketing. One of the biggest marketing costs during this time period will also be trade shows and conferences. December, January, and February are the primary times for many sport- specific trade shows such as the American Baseball Coaches Association, United Soccer Coaches Convention, LaxCon, National Fastpitch Coaches Association, and more. Additional start-up items that fall under this broader category include, but are not limited to: • Logo, Branding & Website Development: The park’s branding and the website will likely be the first touch point for most potential customers and is a critical component of a successful business. The website will drive interest, but is also the primary sales tool for tournaments and any E-commerce products that are available for sale. • Printing in Park: This includes a wide range of printing needs in the park that range from in-park items such as park maps and temporary signage to in-market fliers and marketing materials. 16.F.1.b Packet Pg. 53 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) • Staff Apparel: It is important that both the park staff and corporate staff represent the park when in the community and across the country marketing and promoting the facility. Staff Apparel also includes uniforms for hourly employees for retail, food and beverage, maintenance etc. Staff uniforms and apparel will be included in the branding of the park as well as outlined in the standard operating procedures. Partnerships SFI will design, produce, and print a partnership sales package necessary to begin the sales process. Once this document has been created, SFI will begin engaging local business, delivering proposals, and working with Superlative Group to avoid any conflicts of interest and ensure fulfillment of partnership assets. Insurance, Licenses & Permits These are all the costs associated with SFI securing the necessary permits and licenses to run the day-to-day operations of the sports complex. F&B Consulting F&B operations will be handled by SFI throughout the duration of the agreement. The F&B consulting services are third party services that include front-end start up items such as recipe preparation and staff training. Staff training includes a wide variety of items ranging from health and food safety certifications to actual cooking orientation and training. Inventory & Smallware Inventory and smallware costs include two major categories inside the operations at the park – retail and food & beverage. Inventory is defined as the initial stocking of the actual items being sold, for instance: shirts and hats for retail and hot dogs, drinks for food and beverage locations. Smallware includes the items that are needed to display or serve these items, i.e. hangars and manikins for retail and containers, mixing bowls, serving utensils for food and beverage. All of the initial items to stock the inventory and provide smallware necessary to open are considered operational start-up items. Any replacement of these items once the park opens would be considered a cost of goods sold. Maintenance & Janitorial Supplies Much like the inventory described above, maintenance and janitorial supplies include the necessary items to open the new sports park on Day 1. These items include user items such as toilet paper, and paper towels and actual janitorial tools such as brooms, mops, buckets, etc. The initial start up item acquisitions are included start-up costs, while the replacement of these items will be considered a park expense. Travel Start-up travel includes costs for park employees to attend select conferences, shows and meetings throughout the area and industry. 16.F.1.b Packet Pg. 54 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) PARK STAFFING Based on the updated Phase 1 operating structure, staffing will occur at a slower pace than SFI would normally recommend for a facility of this size. This will reduce the operating costs in the pre-opening phase and allow for a more phased approach. Starting with the execution of this agreement, SFI will immediately begin soliciting, identifying, and hiring a General Manager and Sales Representative. SFI believes these positions will be critical in driving the pre-opening operations while also marketing and seeking events to come to the park during the first phase. Pending the completion of this agreement, SFI will target September or October to hire a General Manager and Sales Representative. However, SFI will not rush this process as finding the appropriate fit is more important than hitting a specific date on hiring. Once in place the General Manager will take the lead in hiring the remainder of the staff, in-market sponsorship sales and community relationships, and implementing the Sports Force Parks Standard Operating Procedures. Once the General Manager and Sales Representative have been hired, the remainder of the staff hiring will not occur until January or February of 2020. SFI plans to bring on an Assistant General Manager, Sports Coordinator, and Hospitality Manager in this time frame. This will allow time to find the appropriate candidates for these positions, undergo training and orientations, and be in position prior to the May 2020 opening, without carrying significant salaries throughout the construction phase. Finally, SFI plans to bring on an Events Coordinator just prior to the opening of the complex in 2020. 16.F.1.b Packet Pg. 55 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) Week 1Week 2Week 3Week 4Week 5Week 6Week 7Week 8Week 9Week 10Week 11Week 12Week 13Week 14Week 15Week 16Week 17Week 18Week 19Week 20Week 21Week 22Week 23Week 24Week 25Week 26Week 27Week 28Week 29Week 30Week 31Week 32Week 33Week 34Week 35Week 36Week 37Week 38Week 39Week 405-Aug12-Aug19-Aug26-Aug2-Sep9-Sep16-Sep23-Sep30-Sep7-Oct14-Oct21-Oct28-Oct4-Nov11-Nov18-Nov25-Nov2-Dec9-Dec16-Dec23-Dec30-Dec6-Jan13-Jan20-Jan27-Jan3-Feb10-Feb17-Feb24-Feb2-Mar9-Mar16-Mar23-Mar30-Mar6-Apr13-Apr20-Apr27-Apr4-MayOPERATIONS START-UP SCHEDULE Job Descriptions & Job Board Account Park Logo & Branding Advertising Targets Website Database Development Heat Press Equipment Bank Account & Processes Local/Regional Club Outreach Sport Partner & Programming Outreach Existing Programming Outreach Pricing Development Tournament Partnerships Negotiation Tournament Schedule Development & Release General Manager Hiring Park Sales Rep Hiring Facility Guidelines & SOP Development Facility Marketing & Show Materials CONNECT Sports Conference MailChimp Park Rental and Event Sales Registration Platform Launch Social Media Account Set Up Trade Show Booth Production Weekday Operations/Champions RFP CTTA Equipment Awards Production Tournament Rules Sponsorhsip Package & Outreach New Events (Secondary Sports, College, HS) Giveaways/Promotional Items Wirstbands/Admission Drone Video/Photo #1 Liquor & Food Licenses Menu Development National Fast Pitch Association Sports Coordinators Hiring Recipe Development Stripe POS Uniforms Full Time Staff Hospitality Manager Hiring AGM/Retail Manager Hiring Maintenance Manager Hiring American Basbeall Coaches Association United Soccer Coaches Convention In Park Signage Orientation #1 Food Distributor Contract Purchasing Drone Video/Photo #2 Scheduling Platform Launch Medical Staff Hiring Seasonal Staff Hiring Printed Materials F&B Consultant Events Coordinator Hiring Food Service Training Online Store Launch Weather System Computer Ordering, Delivery, Setup Field Maintenance Lead Hiring Janitorial Lead Hiring Orientation #2 Phone Number Auto Attendent Amenities Procedures Drone Video/Photo #3 Heat Transfer Ordering, Production, Delivery Uniforms Seasonal Staff Orientation #3 Orientation #4 OPERATIONAL START-UP TIME-LINE Green items represent operations tasks, orange represent staffing tasks, and red identify key event dates on the industry calendar. 16.F.1.b Packet Pg. 56 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) 2020BUSINESS PLAN 16.F.1.b Packet Pg. 57 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) 2020 ANTICIPATED FACILITIES & AMENITIES Fields 1. Four (4) Synthetic Turf Rectangle Fields 2. One (1) Stadium Turf Rectangle Field (end of year) Buildings 1. Welcome Center a. Administrative Offices b. Tournament Central c. Restrooms d. Retail Store 2. Market Building 3. South Entry Gate 4. Great Lawn Restroom Building 5. Great Lawn Bar/Food Truck Shelter 6. Maintenance Building 8. Stadium (end of year) a. Locker Rooms b. Food Commissary Amenities 1. Great Lawn Other 1. Two (2) Food Trucks 16.F.1.b Packet Pg. 58 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) 2020 OVERVIEW 2020 will be the first year of operations at the new sports complex. With only four (4) synthetic turf rectangular fields along with support buildings and the great lawn; the complex operations will focus on a number of major areas: 1. Creative programming opportunities 2. Fine tuning operations and gaining full understanding of great lawn 3. Developing relationships throughout the industry to create the foundations of long-term operating partnerships. 4. Develop local-use programming and local champion operating structures. 5. Engaging with the surrounding market to create the foundation for sponsorships and partnerships. 6. Driving the marketing plan and installing the necessary items in order to drive self-operated events across the new sports complex and NCRP in 2021. While the lack of facilities does create a challenge from a programming standpoint, the silver lining is that it provides the park the opportunity to engage with the market and the industry while also working out some of the more unknown areas of the business plan and pro-forma (i.e. great lawn operations, market reaction to self-operations, and local champion structure and usage). NORTH COLLIER REGIONAL PARK SFI will not operate any park related programming or partner programming at North Collier Regional Park (NCRP) in 2020. The reason for this is that NCRP already has events booked throughout the year in 2020. Rather than insert SFI operations into the park and deal with renegotiations and event management; this business plan proposes SFI programming and tournament operations beginning at North Collier in 2021. With that said, this business plan assumes that SFI will take control over the booking process for 2021 and beyond at North Collier Regional Park. This calendar control would include all event dates after January 1, 2021. Controlling the booking of North Collier in 2021 and beyond will protect programming at the new park and spur partnership conversations between existing events and the new sports complex. 16.F.1.b Packet Pg. 59 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) STAFFING While SFI has already started identifying potential internal and external candidates, the official search will begin upon the execution of Phase 2A. An initial staff team will be in place as soon as possible to include a General Manager and a Park Sales Director. These positions will immediately begin to implement programming and activation of both NCRP as well as the new sports complex. With the complex being built in phases, staffing offers a significant challenge as the complex only has one chance to make a first impression. This impression is made through off and on-site experience throughout the year, both of which are heavily influenced by customer service. We believe the staffing model in 2019 and 2020 outlined can create amazing experiences while being mindful of the budget and providing a spring board into 2020 operations and beyond as the facility grows to capacity. A projected staffing chart is included below. 16.F.1.b Packet Pg. 60 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) SALES & MARKETING Facility Advertising As part of our partnership with the CVB and the SFP network across the country, we will activate and market the park at all major industry shows. It would be our intent to work together with the CVB at industry shows such as NASC and CONNECT Sports as we can collectively promote the park as well as the entire area. Our team would then represent the park along with our other locations at sports specific shows such as ABCA, NSCAA, etc. Our park staff and tournament coordinators will work to develop a list of all regional coach, league, and organizational meetings/conferences that they can also attend to market the park to Florida teams in order to develop relationships through each different sports category. Social Media As one of the first marketing tasks, SFI will launch social media accounts for the park on all major platforms. These accounts will immediately begin marketing the park throughout the state, region and country. Our marketing team will begin canvassing social media to find coaches, teams and leagues that have social media accounts and begin reaching out and creating relationships. In the first year of operations, the goal of social media will be to raise as much local, regional and national attention for the park and the future full build out. OPERATIONS Events 2019 will have a major focus on partner events and outside operated events. With only four (4) fields to work with SFI will have four main opportunities to drive programming at the park and additional economic impact and visitation to Collier County. SFI will focus on four event types in 2020: 1. Overflow & Existing Events SFI will work with the Collier County Sports Tourism and Parks and Recreation to identify potential NCRP events that may require additional fields and/or want to expand to the new sports complex. SFI will look for opportunities to create revenue, but these events will be geared toward creating exposure for the new sports complex and the future build out of the park. With existing events; we do not want to cannibalize NCRP, but there may be certain events that make more sense to be moved to the new sports complex, i.e. FBU. 16.F.1.b Packet Pg. 61 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) 2. Partner Events SFI will work diligently to identify potential partner events that provide long-term partnership opportunities. These events include the aforementioned existing and overflow events that could become partner events at the new sports complex and new events with a small base that have growth potential. For example, lacrosse and football events can take advantage of a smaller complex in its initial years and grow as the complex expands over the next three years. The first year of operations will be used to work with partners to get an agreement structure right for all involved, rather than rushing into long-term commitments. 3. One-Off Events Not all events are multi-year commitments. The complex will promote itself and market to potential one-year events or programs looking for a facility. 4. Non-Sporting Events With a minimal number of fields, it will be imperative to look at additional event opportunities. While 2020 will be limited without the stadium, it will provide the opportunity to soft open/soft-market events. These events could include artfests, craft beer or food festivals, and concerts. The opportunity to expand these events will increase upon the completion of the stadium while the expansion of the east side of the park will allow for event expansion and/or the ability to run non-sporting events and sports tournaments at the same time. It is important to note that the current 2020 plan does not incorporate any self-operated SFI events. Based on a number of factors including schedule, NCRP’s current bookings, and facility build-out; it is our recommendation that the self-operated events at the facility be pushed out until 2021 which provides SFI the adequate time, facility control and amenity/field package to be successful. 16.F.1.b Packet Pg. 62 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) SPORTS Football Football events will be able to be 100% hosted at the new sports complex. In addition to hosting FBU, the facility will explore opportunities to host and operate additional football events, including tackle, 7v7, camps, and flag football events. Flag football is the only event that we anticipate potentially needing more than five or six fields at full capacity. However, based on the growth curve of these events in new markets, we anticipate that the event would grow along with the complex. Soccer There are currently a number of successful events being run out of NCRP that we believe have the opportunity to be split between NCRP and the new sports complex (overflow events). In 2019 SFI will begin negotiations with potential soccer partners and the local Champions in an attempt to create a partnership that can make all groups “whole,” while also returning a profitable event for the park. Through this process, we will be able to thoroughly verify and identify true partners for the future new facility versus event rights holders who are simply out to make as much money as possible for themselves. This will help dictate future programming and scheduling decisions in 2021 and beyond. Lacrosse In terms of structure and functionality between parks, lacrosse is a bit of a hybrid between our approach with football and soccer. As with soccer, events can grow rather large and there are opportunities to market to national events that will likely require both NCRP and the new sports complex in 2020 and 2021. We believe Naples has the market conditions to support growth among lacrosse teams, organizations and event organizers. However, like football, there is an opportunity in the market place to find the right partners and begin organically growing events exclusively at the new park. The lacrosse market is one of the smallest travel sports segments and is a close-knit industry that typically follows brands, events and markets that they trust. With a smaller travel calendar than other sports, it is imperative to begin growing lacrosse in the market immediately. In 2020, SFI will begin conversations with a number of our contacts in the lacrosse industry as well as existing local groups about the potential to host yearly destination and/or championship events in Naples. Baseball/Softball The 2020 business plan does not account for any baseball or softball programming. 16.F.1.b Packet Pg. 63 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) FOOD & BEVERAGE Food & beverage will be more of a puzzle through the first year of operations than at any other time throughout the operations of the park. Food & beverage operations areas are highlighted below: 1. Market The market will be the main hub of a majority of in-park food and beverage sales at the park in 2020. The creative and unique layout of this area allows for strategic staffing that can both address smaller events as well as weekday local programming. The market’s ability to provide long shelf-life products and control labor expenses will be crucial to the operational success of the park in 2020. 2. Food Trucks The current plan calls for two (2) food trucks to be included in the first phase. The food trucks provide a number of added benefits over static concession stands. • Food trucks in general provide a festive atmosphere and drive traffic more than static general layout concession buildings. • The flexibility of food trucks allow us the opportunity to move points of sale throughout the park during events that may focus more heavily on certain spaces while also blending in to larger non-sports events to drive additional revenue. • Food trucks also offer upside to be taken to other areas throughout Collier County when not in-use by the park. SFI will examine all in-market events and sales opportunities in the market in order to drive additional F&B revenues. NCRP is currently engaged in a food and beverage agreement, but there may also be opportunities to bring the food trucks over to events if this arrangement can be worked out. • Another benefit to the flexibility of the food trucks will be their ability to assist other operations in the case of emergency or need. These operations could include other sporting events in the area or larger scale emergency situations. 3. Portable Concessions Portable concessions include golf carts and portable stands that are typically used to services areas that are a far distance from a traditional point of sale. With only four fields, these portable units will only be utilized on the largest events (i.e. FBU). 4. Great Lawn Great Lawn will be explored further in this business plan. However, the current plan will be to utilize the park food trucks as well as “guest trucks” to outfit this space along with selling beer and wine. It will be critical to the long-term success of this area to figure out the proper operational hours and days for the Great Lawn facility in 2020. 16.F.1.b Packet Pg. 64 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) Merchandise Merchandise is a small part of the 2020 business plan. With the structure and types of events that will be brought in during the 2020 season, there may be limited opportunities for custom merchandise sales. The retail store will provide sales for outside or partner events while also looking for options for more traditional retail items such as sunscreen, hats, umbrellas, etc. Sponsorships & Partnerships While the complex will not have all of the amenities of a full park in 2020, it will be critical to develop relationships in the area and region surrounding the park. As part of their responsibilities, certain park staff will be in charge of getting out into the market and identifying/closing potential short-term and long-term sponsors and partners. In the first year, many of these targets will be more local as regional and national brands may be more valuable once the entire complex comes on-line. 1. Traditional Sponsors Sponsors will be targets that provide cash or trade in return for marketing presence at the park and/or through digital marketing assets. Typical targets will include restaurants, retail stores, entertainment attractions, and other organizations in which both local and out of town park users will frequent. 2. Hotels While programming at NCRP and the new park will potentially fill up hotels throughout Collier County, it is important to have as much time as possible working with hotels who want to be a part of the project in order to create a seamless booking process protects the hotel, provides benefits to park guests and also provides a stream of revenue back to the park. One major revenue opportunity at the park will be Spring Training programming which also falls during one of the most popular and expensive times of the year for the market. These programs are vital to the upside at the new sports complex but also require affordable rates for high school and college teams. SFI will spend the first year working with potential hotel partners to develop strategies to accommodate these programs while also creating value for those partner hotels. While every sponsor and partner commitment will help the bottom line; the first year of operations does not project a high dollar return in operating revenue for this line item. Just as important as it is to get sponsors; it is equally important that our park staff gets out in the community and begins to create long-term relationships. 16.F.1.b Packet Pg. 65 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) Great Lawn One of the biggest unknowns in 2020 is the Great Lawn. The area has plenty of potential as an open public space and a revenue generator for the park. By pushing our self-operations of sports programming until 2021; we are affording ourselves the opportunity to focus on driving business and notoriety to this space. There are a number of examples of similar venues creating critical mass, but each of these venues created a following and unique events in order to get to the place where they currently are. Once such example would be “The Hub” in Watersound Beach, FL. Working out the proper type of events, operating hours, etc. will be a main focus in 2020. As part of our staff and our commitment to this space, our staffing model includes a position dedicated to the Great Lawn from the very beginning of our operations. Local Use Programming Tenant/Champion Operations As part of the park programming, SFI will work with Collier County to release, review, and award a “Local Champion” RFP for each sport. Once these champions are in place, SFI and the County will sit down with each and start to develop a schedule as well as financial impact analysis to the park. Each Champion will be expected to support SFI tournament programming in exchange for the ability to utilize the park during non-tournament hours. All Local Champions will be required to schedule their field usage through SFI and tournament programming. Once these schedules are developed, SFI will work to market any additional capacity to other end-users for potential field usage. The Local Champion structure is currently a work-in process that the County has requested as part of the project to ensure that local residents and organizations have the opportunity to have access to the facility without paying full market rental rates. During the early years, the process of either selecting or tiering Local Champions will be important as there will be a limited number of fields, and thus availability. It would be our long term intent to activate multiple Local Champions at the park as field inventory increases. The actual structure and local champion process (including the RFP process) will be one of the early items that SFI and the County work on together in Phase 2A. Open-Public Use In 2020, we will focus on open-public use primarily in the Great Lawn area of the park. This will mostly be due to the limited number of fields and the anticipated usage requirements of the Local Champions. 16.F.1.b Packet Pg. 66 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) Business Planning and Income Statement Development As described throughout this 2020 business plan, there are a number of sports and non-sports events that our staff will focus on throughout the year. Many of these discussions and potential event partnerships will begin in 2019 and continue into the 2020 operational year. While all of these items are a priority and we believe the park is well positioned over the long-term, we believe it is not prudent to predict financial revenue, profit or economic impact off of unknown events that could happen in the park. We have built a pro-forma and 2020 plan based off of revenue goals that we believe are attainable and will bring the operational profitability of the park close to a break even. With dedicated and talented marketing staff, and a continued strong economy, the park could easily reach operational profitability (defined as operating revenue less operating COGS). Starting in 2021, when SFI takes over control of both NCRP and the new sports complex and begins to introduce self-operated programs; we are much more comfortable predicting a fully broken out income statement and economic impact analysis. 16.F.1.b Packet Pg. 67 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) 2021BUSINESS PLAN 16.F.1.b Packet Pg. 68 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) 2021 ANTICIPATED FACILITIES & AMENITIES ANTICIPATED FACILITIES & AMENITIES Fields 1. Four (4) Synthetic Turf Rectangle Fields 2. One (1) Stadium Turf Rectangle Field 3. NCRP Fields Buildings 1. Welcome Center a. Administrative Offices b. Tournament Central c. Restrooms d. Retail Store 2. Market Building 3. South Entry Gate 4. Great Lawn Restroom Building 5. Great Lawn Bar/Food Truck Shelter 6. Maintenance Building 7. Northeast Restroom Building 8. Stadium a. Locker Rooms b. Food Commissary Amenities 1. Great Lawn 2. Miniature Golf Course 3. Climbing Tower/Course or Similar 4. West Playgrounds Other 1. Two (2) Food Trucks 16.F.1.b Packet Pg. 69 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) 2021 OVERVIEW 2021 will be a high profile year for both NCRP and the operations of the new sports complex as it will be the first year that the facilities introduce self-operated programming as a major tenant source at both facilities. While the groundwork for this programming will be laid out starting in 2020; 2021 is the first year of actual operations for these programs. Operations in 2021 will focus on growing relationships with long-term partners identified in early vetting, while also focusing a large effort on direct to consumer marketing. One of the largest shifts in operations that will be reflected in this year’s strategy and business plan is the transition from facility marketing aimed at organizations and event rights holders to program marketing aimed at the end consumer (coaches, parents, players). It will be imperative that our staff, marketing and promotion are front in center with our audience throughout the year to not only bring in teams for the facility, but more importantly position the park for success in 2022 and beyond when the entire complex is built out. NORTH COLLIER REGIONAL PARK The SFI pro-forma and business plan are built around having programming control over tournament events at North Collier Regional Sports Park (NCRP) beginning in 2021. Event schedule and business plan are based on SFI having booking control of the 2021 calendar year and beyond beginning in 2019. This would allow SFI to create partnerships with current and potential tournament operators while also starting to establish ourselves as a tournament operator in the market place. As part of this structure, Parks and Recreation/Collier County Sports Tourism, would forward any potential event organizer to SFI to negotiate the rental rates/structure of their programs. When and where possible, SFI would develop our own self-operated tournament programming. All park management, league play, and local usage would still be handled by Parks and Recreation. SFI’s calendar and booking control would only be as it relates to groups specifically renting the park to run for-profit youth sports tournaments. 16.F.1.b Packet Pg. 70 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) STAFFING The only change to the staffing model in 2021 is the addition of a sports coordinator. With the takeover of NCRP, the responsibilities for the sports coordinators will increase dramatically. This staffing addition will allow us to have a sports coordinator at both locations during large events or multi-event weekends. The 2021 staffing model is below. 16.F.1.b Packet Pg. 71 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) SALES & MARKETING The biggest shift in the sales and marketing strategy at the park is the switch from facility management to event operator. While the budget is still in place to market the facility itself to larger regional and national events, tournament and program Marketing will be a major focus for the park and its staff. Whereas facility marketing is aimed at event organizers and governing bodies, tournament and program marketing is aimed directly at the end-user consumer (coaches, teams, parents, etc.) Email Marketing SFI uses Mailchimp as our database and email marketing tool. SFI will identify major milestones for the park development and create an email marketing strategy around these dates. Our e-mail marketing campaign will target Florida and the Gulf Coast region heavily as well as our entire database throughout the United States. With databases built on more than 15 years of operating sports tournaments, including the facility’s we currently manage, SFI has a huge reach across the entire country with a heavy focus on the Southeast, Midwest, Mid-Atlantic, Northeast, and Ohio Valley. Email marketing will also capture all participants from 2019 events at the new sports complex as well as any capture we can receive from events at NCRP. Digital Advertising SFI will work to identify all pertinent digital advertising space, with a heavy focus on targeted advertising through Google Adwords, social media, and other proven media channels. Additional opportunities range from large national sites to local and regional message boards and forums. This advertising during the start-up of the park is directly related to driving awareness of the park/programming as well as creating traffic on our social media accounts and website. We will be focusing on industry specific content and pages. Social Media Immediately following the completion of a management agreement, SFI will launch social media accounts for the park on all major platforms. These accounts will immediately begin marketing the park throughout the state, region and country. Our marketing team will begin canvassing social media to find coaches, teams and leagues that have social media account and begin reaching out and creating social relationships. As we have a heavy emphasis on self-operated programming, it is this “in the trenches” marketing and lead cultivation that creates success in the first few years of a complex’s operations. 16.F.1.b Packet Pg. 72 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) In-Person/Print Marketing Materials While the bulk of advertising and marketing is done through digital and social media, there are still a number of opportunities for our team to get out in front of players, coaches, leagues and families to have direct interaction with our customers. These opportunities include state and regional team/league meetings, national conferences and industry trade shows. Our team will identify these opportunities and create marketing materials for the programs (included in start-up costs as well as yearly marketing budget). These marketing materials include but may not be limited to: Print Materials Having physical handouts that highlight the park and the programming are essential to these environments. The intent of these items are to provide enough information and intrigue for the recipient to want to learn more by visiting our website or calling our sales team. Booth Materials For many of these opportunities, our staff/the park will have the opportunity to have a table or booth set up to draw attention to the facility. As part of the start-up costs we have included the creation of V-Burst displays and booth items to accommodate these shows. Yearly marketing budgets include the cost of conference registrations, shipping, etc. Partner Advertising As we continue to grow our network of parks across the country, we are also growing our cross marketing strength with each park. As part of all of our partnerships (both programming and sponsorship), we actively work to secure the ability to market our entire park network. For example, Cedar Fair Entertainment is our partner in Sandusky through their Cedar Point Amusement Park. As part of this relationship, we work with their marketing team to strategically market additional parks through their database that covers 11 amusement parks and millions of people. We also work marketing coverage into our programming partnerships, ensuring that programming partners help us market and promote all of our facilities through their local, regional, and national networks. This partner advertising includes all of the parks in the SFI park network that co-market and brand events together. Other Sports Force Parks locations have drawn teams from around the country, and have shown a proven ability to cross-sell teams between markets. We anticipate Collier County being a destination park that will be come a high-profile destination event facility in our marketing to guests of other parks. 16.F.1.b Packet Pg. 73 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) Pre-305 Marketing One of the challenges in the sports tourism industry is convincing teams that a park will be open when you say it will be. This hesitation is a direct reflection of an industry that is littered with organizations promising facilities and even pre-selling tournaments, only to end up not opening on time. Due to the “horror” stories that travel throughout youth sports, teams have rightfully been taught to take a wait and see approach. We have identified a number of items below that can help with the start-up marketing of the park: Renderings & Video 3-D renderings and conceptual videos can be a great tool when selling the vision of the park. Still renderings are the bare minimum while videos, add credence to the project, and receive more engagement (i.e. many projects with renderings never happen, while the investment in a video tend to make the general public a bit more comfortable). Renderings and videos are still however taken with a grain of salt and a wait and see approach that is why we do recommend combining them with: Construction Cam Construction cameras are a huge tool as you can send people directly to the action so they can see that the project is actually happening and underway. Photos, Drones & Videography Photos and videography through a local company can do wonders to create marketing and excitement for the park with relatively low investment. Ideally the project will work with a company that can complete the photos and drone videos while also engaging videography, interviews, commentary etc. leading up to the opening. If these are already in place with the construction team, then SFI will work directly with them to leverage important areas, dates, etc. If these items are not in place, it would be our recommendation to work with the construction team to do so. While the construction camera provides a constant update and real-time feeds; the drone work can be tailored toward important milestones to be highlighted through digital marketing and social media. During the construction of the park, there should be constant dialogue with teams and customers, but this also requires new and engaging content which can sometimes be hard to find before a park opens. 16.F.1.b Packet Pg. 74 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) SPORTS Football 2021 will have a heavy focus on growing existing events at the new sports park. We believe that the stadium will increase interest and notoriety in these events while also providing additional revenue and broadcast opportunities. It is anticipated that the park will host 2 football events in addition to FBU in 2021. Lacrosse Similar to football, 2021 will focus on growing existing events between the new sports complex and NCRP. With full control over events at both facilities, there is a much better ability to capture revenues from these events within the operations of the park. We anticipate introducing a minimum of one (1) additional lacrosse event in combination with existing partner events from 2020. Soccer Soccer programming structure is most likely one of the biggest unknowns at this point for 2021 and beyond. This business plan is built on the ability to negotiate a partnership between existing events in the market while also working with local champions to create additional programming between the new sports complex and NCRP. It is anticipated that we will introduce five (5) new soccer tournaments while maintaining four (4) partner events. Baseball/Softball Access and tournament control of NCRP is critical to the long-term success of baseball and softball at the new sports complex. Beginning with the winter of 2020; SFI plans to begin running self-operated tournament programming using the five (5) fields at NCRP. Baseball and softball will remain one of the most important elements to the profitability of the Collier County sports properties, as they simply offer the most event opportunities. With the structure of teams and decision makers, baseball and softball are also the easiest to introduce new programming into a market place. Softball and baseball offer a number of different programming options, ranging from simple weekend tournaments to full week-long experiences. During 2021, these events will primarily be 2 and 3-day tournaments with the potential for longer tournaments when the new sports complex reaches full build-out. The 2021 calendar includes fourteen (14) self operated baseball tournaments with the opportunity for more based on the market reaction and partnership opportunities. 16.F.1.b Packet Pg. 75 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) Spring Training One of the largest areas for revenue growth and potential at the sports park is baseball and softball spring training. These programs provide high school and college teams a location and trip for their preseason training and games. While we will not have the ability host spring training in 2021, this year will be critical to creating partnerships in the market with hotel groups as well as developing relationships with high school and college programs throughout the country. There is also the potential market for lacrosse spring training that will be explored as well. It is anticipated in our business plan that the first spring training programming will begin in 2022. 16.F.1.b Packet Pg. 76 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) FOOD & BEVERAGE 2021 Food and Beverage opportunities are explored below. 1. Self-Operations and Staffing With a majority of events being partner events and self-operated events, SFI will have a much better opportunity to maximize staffing and facility hours. While the number of programs may not increase, SFI will have a year of operations in the market to better understand the local use component as well as create efficiencies in the cost of goods sold. 2. North Collier Regional Park North Collier is currently under a concessions agreement. SFI will work with the County as well as the existing concessionaire to explore opportunities at North Collier during SFI programming. 3. Commissary A commissary is currently in the design of the stadium. In the first year of operations, SFI will have limited food storage space which will result in a higher cost of goods and a smaller opportunity for product. The addition of the commissary will provide a much needed space that will allow for quantity discount opportunities as well as increased product and inventory opportunities. Merchandise Merchandise will become a much larger focus for SFI in 2021. With a calendar filled with self-operated events, there will be a number of opportunities to push a number of merchandise lines. The largest opportunity will revolved around individual tournament t-shirts and apparel. Apparel sales will be handled locally at the park and supported by SFI’s corporate team. Sponsorships & Partnerships Several opportunists exist in 2021 that were not available to the programming in 2020. Two of these opportunities are explored below. 1. Self Operated Programming This is by far the largest opportunity for additional sponsor and partner opportunities. With the switch over to self-operated events; SFI will immediately have the opportunity to speak and market directly to all visitors coming to the park. This ability to directly promote to guests is a huge value to potential sponsors. 2. Stadium While the stadium naming rights are anticipated to be outside of SFI’s services, the stadium does provide the opportunity to bring in larger and more notable events. Not only do these events drive more recognition to the park; they also increase the number of people visiting the park throughout the year. The more people the facility draws and the more attention the facility gets; the more valuable and numerous the sponsorship opportunities are. 16.F.1.b Packet Pg. 77 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) Great Lawn SFI will continue to build on the successes and lessons learned in the Great Lawn from 2020. At this point, it is our goal to have an understanding of not only what type of events work well in the area, but also a better understanding of daily, weekly and seasonal usage. In 2021, SFI will continue to grow special events while beginning to stabilize a calendar of events in the Great Lawn area. Local Use Programming Tenant/Champion Operations As of 2021, local champion agreements will be in place. It is anticipated that the local champions will continue to take up most of the open time at the facility as the park will still only feature five (5) fields. We will however have a better understanding of what hours and times the park is available for rentals or additional income generating opportunities. These opportunities will be revisited at the end of the 2020 operating year. Open-Public Use In 2021, we will continue focus on open-public use primarily in the Great Lawn area of the park as there is still a lack of total fields. With the overall cost to open, clean and maintain the stadium; this field will not add much general opportunity to open local use. The addition of the stadium does open up additional opportunity for potential larger community events such as concerts and festivals. 16.F.1.b Packet Pg. 78 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) AMENITIES Florida is filled with sports complexes that provide facilities to host tournaments with experiences ranging from okay to excellent. As competition for teams increases, it is important to have factors outside of the quality of the fields stand out in a crowded market place. While the location, field quality and the operations will place the complex immediately in the top tier of complexes in the market; it is often the non-sport amenities that push people over the edge when deciding what tournament to attend. SFI has spent time in the national and regional market engaging with teams participating at tournaments in Florida in different locations. Most of the feedback trended in the same direction: teams were traveling to an event but families were splitting up before or during the trip. The reasons were lack of amenities for other kids to partake in, quality or price of food, and/or lack of comfort for spectators (lack of shade, too much concrete, bad seating options, etc.). Two coaches we met with in Fort Myers admitted that they had been in the market for three days and their daughters were yet to leave the hotel. This story is repeated over and over again, particularly in the Florida market. This creates two massive problems for the longevity of the new sports complex: 1. Siblings and parents staying at home is a major revenue loss. In park spending such as gate fees, concessions, and retail all drastically decrease. In almost every conversation SFI has had in the market, parents said that they would all come together if prices were reasonable and there were things for the other members of the family to do. 2. For the most part, families like doing things together. Kids who are participating in sports want their families to be there to watch and cheer them on. Splitting families up for the bulk of their trip does not accomplish the idea of creating a family vacation experience that will keep teams returning year-in and year-out. In combination with a stadium, we have recommended that the park look into an amenity zone that will create opportunities for athletes and their entire families to have entertainment options on site. We believe this zone will not only be a game changer and major differentiator in the market place for tournaments, but also a major benefit to the long term success of stadium events, national event procurement, local non-sporting events and the great lawn. The following page shows a schematic layout of this area in the park. 16.F.1.b Packet Pg. 79 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) 16.F.1.b Packet Pg. 80 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) 2022+BUSINESS PLAN 16.F.1.b Packet Pg. 81 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) 2022+ ANTICIPATED FACILITIES & AMENITIES Fields 1. Fourteen (14) Synthetic Turf Rectangle Fields 2. Six (6) Multi-Purpose 90’ Baseball Diamonds 3. One (1) Stadium Turf Rectangle Field 4. North Collier Fields 5. Large Multi-Purpose Turf Flex Space 6. Sixteen (16) Full Size Batting Cages Buildings 1. Welcome Center a. Administrative Offices b. Tournament Central c. Restrooms d. Retail Store 2. Market Building 3. South Entry Gate 4. Great Lawn Restroom Building 5. Great Lawn Bar/Food Truck Shelter 6. Maintenance Building 7. Northeast Restroom Building 8. Stadium a. Locker Rooms b. Food Commissary 9. 305 Entry Gate 10. 305 Scaled Market Building 11. Two (2) 305 Restroom Buildings 12. 305 Operations Room/Building Amenities 1. Great Lawn 2. Miniature Golf Course 3. Climbing Tower/Course or Similar 4. West Playgrounds 5. East Playgrounds 6. Splash Pad Other 1. Three (3) Food Trucks (one additional) 2. Additional Portable Concession Carts and Temp Facilities 16.F.1.b Packet Pg. 82 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) 2022+ OVERVIEW The business plan created for years 2022 and beyond have been built based on having the full build- out of the outdoor facility. The biggest change/upside in 2022 will be the addition of diamond sports to the new facility. As explored in this business plan, rectangular fields offer opportunities for larger events; however are typically constrained by the number of events possible. The diamond sports create the opportunity for large scale events combined with a constant flow of traffic at the park throughout the year. While it is hard to predict the exact circumstances on an annual basis so far in advance, the plan takes into account the following two items in order to make the best possible assessment of the strengths, opportunities, weakness and threats over this time period: 1. The model is created using a combination of real in-park experiences at other complexes SFI is currently operated and has operated in the past. While each park and each market is different; the tourism segment does have a number of characteristics that are similar across the country, including but, not limited to: • Drive-time growth and reaction to a market based on amenities and opportunities in the market • Programming and participation growth curves • Incremental event growth 2. The plan is built around predictions of a combination of self-operated programming and partner events. While SFI and Collier County Sports Tourism will work to attract high end, large third party events; these events are not built into the economic impact and pro-formas of this plan. Attempting to guess at what events as well as what the financial ramifications/requirements of these events is somewhat of a fools errand. Building the plan based on knowns vs. unknowns provides the following benefits: • The plan is built from the beginning around self-operated and partner events. Building your base programming on these types of events rather than outside interests provides higher levels of profitability and insulation against potential industry bubble bursts or threats of new facilities in the region. • Ultimately planning on knowns provides a baseline for expectations. Any outside, third party event can then be assessed by SFI and Collier County Sports Tourism on a case by-case basis. This process allows outside events to be added value to the park in all scenarios, rather than guessing wrong on initial numbers and creating a negative correlation to these events in the long-term park performance. 16.F.1.b Packet Pg. 83 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) As with any business, the future is full of unknowns and variables that could affect any number of areas of this business plan. SFI’s business model is built around creating sports and event facilities/ operations that offer ultimate flexibility. This flexibility in combination with our unique PPP models work in tandem to create facilities and facility operations that are able to react and adapt to these unknowns while continue to strive to maximize economic impact, local opportunity and profitability. NORTH COLLIER REGIONAL PARK For the purposes of this business plan, it is anticipated that SFI will maintain control of all tournament bookings and operations at North Collier Regional Park and any other tournament facilities that may be built in the County during this time. These items are imperative to the success of this business structure and any changes to this will have large affects on the financial outlook of the facility. STAFFING 2022 will be the first year where the entire complex is open. The 305 facilities more than double to size of the complex, which will create an additional strain on staffing. The proposed staffing model highlights what we believe will be the added positions for the complex at full run. With an increase in programming and the potential to be run three separate events across two facilities – there is a clear need for an additional sports coordinator. Our goal as an operator is to maximize economic impact and drive towards profitability. These factors are both rooted in foot traffic in the park(s). With this said, during peak season you could be in a situation where you have a baseball tournament on the east side of the park, a soccer tournament on the west side and another event at NCRP. In this scenario, it would be necessary to have a coordinator at each location ensuring that each event is running smoothly. With the heavy load of programming and a year-round calendar, weekends in which all three coordinators are not needed will provide a much-needed break for one of the staff members. Under the same scenario or a standalone tournament that takes up the entire facility; there is an added emphasis on driving revenue through food and beverage, retail, amenities, etc. These areas will see an increase in staffing as these positions have a direct positive impact on the bottom line. The staffing model is meant to provide an overview of the potential growth in staff from 2022 through 2029 and additional staff positions will be created as needed. For instance, if there are not many examples of weekend scenarios explained above in 2022; then an additional sports coordinator may not be brought on until a future year. These positions should be viewed as “good expenses to have to bring on board,” rather than “burdens on overhead.” 16.F.1.b Packet Pg. 84 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) 16.F.1.b Packet Pg. 85 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) SALES & MARKETING Beginning in 2022, SFI will have the ability to market a complete park for the first time. Much of the consumer marketing will maintain the same strategies, but simply cover a larger platform of end users. Marketing to large-scale national and international events will begin to open up as an opportunity. Many of these events want to see a complex open and operating before committing to the park to avoid situations where events must be cancelled because of construction delays or budget cuts. Email Marketing Through our self-operated programming in 2021 and beyond, SFI will continue to grow the database of current and potential customers to which the park is able to directly market to. Existing SFI facilities traditionally generate in the neighborhood of 20 – 30,000 new real customer database entries per year. With the size of the new sports complex, these numbers could significantly higher on a year-to-year basis. Digital Advertising SFI will continue to have a heavy focus on targeted advertising through Google Adwords, social media, and other proven media channels. As the complex grows, it will be important to focus on the areas that are showing the best return while also striving to engage in new technology. Social Media As a self-operating park, social media will remain one of our best marketing and communication tools for the foreseeable future. It is important that the park continues to have direct conversations and interactions with end-users in an effort to promote new events, amenities and opportunities for teams and their families at the facility. In-Person/Print Marketing Materials In-person and print marketing materials will be reworked once the entire park is complete and professional photos are obtained. In 2020 and 2021 the park will primarily be using conceptual renderings and progress photos for marketing. In 2022, it will be important to redo these materials so that the entire complex can be marketed along with real action shots from events held at the complex. Annual marketing pieces such as schedules, special events, etc. will be needed each year. With regards to the overall branding and themes of the marketing materials, it is assumed a full overhaul will be needed every four (4) years. These costs are accounted for in the income statement and business plan. Partner Advertising Partner advertising will continue similarly to 2021 but will grow over the years as more partners and more parks come on-line. 16.F.1.b Packet Pg. 86 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) SPORTS Football It is anticipated that the same number of events will be held in 2022 with additional events being added as opportunities present themselves. There is a large need in the football industry for a potential location to be known as “the football event and championship” destination. With the Hall of Fame complex in Canton, OH taking on a small piece of this role, we believe there is an opportunity for Collier County to establish a presence in the football world. SFI has already begun strategic relationship discussions with a number of highly influential groups in the sport. We believe these relationships will continue to gain momentum each year at the park and there is added upside to football above and beyond what our income statement projects. Soccer Soccer will continue to grow through a mix of self-operated new events and partner events. In terms of tournament size, soccer offers an unmatched opportunity to growl large tournaments with the combination of the new sports complex and NCRP. It is important to keep in mind that the most successful rectangular complexes in the country max out at roughly 17 events. This is mostly due to the travel nature and number of season programming opportunities for soccer and lacrosse. It will be important to maximize soccer dates when possible while complimenting them and filling surrounding weekends with other sports and events. On are that SFI has begun initial conversations with a number of groups is the potential for Collier County to host international training programs. With the location of the facility and the recognition of the market place, we believe there is an opportunity here, but have not gone as far as to put it into the income statement and programming plan. As of now we are looking at this as a high-profile opportunity that will only bolster the overall business if it is available. As of now, the current plans for rectangular events at the complex to grow to 15 events (not including football). This is a conservative approach that will create a solid foundation for the operations while also offering additional upside as we market and grow the new complex. Lacrosse Lacrosse will continue to be a market that SFI works to grow year in and year out. The Naples market fits the traveling demographic perfectly within the lacrosse industry and lacrosse holds the highest per-team upside of any sport. With this said, it will be critical to the success of the sport in Naples to make the correct strategic relationships while also installing a “smart” growth plan. The business plan calls for two (2) lacrosse events; however SFI believes there is upside in this space for more. Any additional large lacrosse events that can be developed will have huge benefits on the impact and profitability at the park. 16.F.1.b Packet Pg. 87 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) Baseball/Softball 2022 and beyond will see a huge revenue increase to the facility through baseball and softball programming. We will continue to market the new facility as well as NCRP as the premiere diamond sports destination in Florida and the Gulf Coast region. The addition of diamond fields is critical to the long-term success of the complex as the travel demographics of baseball and softball are far better than any other sport in terms of length of season, number of tournaments, and number of teams. Rather than a set number of travel dates for a full club/program, baseball and softball tournaments are typically decided on a team-by-team basis. The only big holes in tournament schedules will exist during periods of the year in which local and regional travel teams are disbanding and restructuring. We do believe that during the term of this partnership that a renovation should be explored at NCRP. Putting synthetic turf infields and adding a small overhaul to the buildings and support system at the park will continue to put the entire market ahead of anyone else in the region as a baseball and softball destination. The current plan calls for 28 baseball and softball events with 6 weeks of week-long programming. If the week-long programming becomes successful, we would anticipate additional events being added. Spring Training 2022 will be the first year for spring training programming at the new sports complex. SFI has had success in the past driving a very successful Spring Training operation in Myrtle Beach and envisions a similar growth pattern in Collier County. The conservative growth model is shown below. While the team totals are not necessarily dramatic, it is important to remember that a number of variables make these programs extremely important to the long-term operational upside of the complex: 1. These programs are typically 4 – 7 day stays that utilize the facility during traditional downtimes at a sports park 2. Teams are large – many times brining upwards of 30 players per team. Events are marketed as an all-inclusive package on a per player basis. 3. Spring training drives revenue while not dramatically increasing operational expenses. It is also important to note that the projections are based on being able to find hotel partners that are willing to negotiate hotel rates into the range necessary and acceptable to high school and collegiate athletic programs. 16.F.1.b Packet Pg. 88 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) FOOD & BEVERAGE Food and beverage will continue to be one of the most important revenue line items at the park. As the complex nearly triples in size; flexibility as well as product and staff flexibility will be key to maximizing the opportunity of food and beverage. Below identifies 1. Satellite Market It is anticipated that a satellite market will be built into Phase 305 in the smaller great lawn space in between the quads. This market will be much smaller and not require the level of “back of house” that the main market features. It is anticipated that the main market location will service the satellite market. 2. Food Trucks With a much larger park, it is anticipated that one to two additional food trucks would be included in the Phase 305 capital costs. These food trucks would be in place of the concession stands originally planned in the middle of the baseball quads. These quads will now feature all the necessary food truck hook ups, but will allow for lower capital costs and higher operational flexibility and efficiency. Ultimately the stable of food trucks at the park will also offer a number of long-term opportunities at park, including but not limited to: • Food trucks can continue to be taken off-site and throughout the community to other events as opportunities present themselves; driving additional revenue to the park operations. • Food trucks can be re-branded with new looks and menus over the years. This can be operationally turned into advantages for teams who come back to the park year in and year out as it keeps the park offerings from becoming stale or outdated. 3. Portable Concessions With a very large sports complex now in place in combination with NCRP; SFI’s business plan calls for the addition of a number of portable concession solutions. These portable options include options such as beverage and concession express stands to golf cart concessions (i.e. golf course carts). These portable concessions allow the expansion of food and beverage points of sale as needed while not creating staffing problems or a sense of a closed down park on smaller events. 4. Great Lawn Much as described in the 2021 plan, SFI will continue to build events and create unique opportunities at the Great Lawn while also creating a dedicated schedule around local usage trends. The Great Lawn will continue to be a space where SFI staff will be as creative as possible to drive local participation as well as revenue generating events. 16.F.1.b Packet Pg. 89 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) Merchandise Merchandise will continue to be a staple revenue line item at the park throughout the business plan. Over time, the profitability should raise as the park is able to react to trends, pre-sale opportunities, additional product opportunities. As the park network continues to grow, this will also provide the opportunity for bulk purchasing opportunities that will improve the bottom line performance. Sponsorships & Partnerships With a finished product and a huge increase in visitation; sponsorship and partnerships offer one of the biggest growth areas in terms of revenue at the park. SFI will have dedicated staff at the park as well as at our corporate office who are focused on selling packages at the sports complex. With naming rights opportunities separated from our proposed sponsorship sales, we have conservatively planned for a growth to $300k in annual sponsorship sales. This area has a great opportunity for growth, however sponsorship sales across the industry outside of naming rights are seeing a downward trend over the past few years. The upside in sponsorship lies in the ability of the local market to buy into the park. While we believe the local use component mixed with the visitation the park will create is a perfect combination for local activation; we do not believe that building a business plan around aggressive sponsorship numbers is prudent. Local Use Programming Tenant/Champion Operations With the completion of the full complex, SFI will work to identify additional local champion opportunities. The additional fields will also open up the opportunity to drive revenue through field rentals, which was not a realistic option in prior years due to lack of fields. Coordinating and maintaining schedules of multiple local partners, field rentals and additional open public-use opportunities will be an added lift on the park; however it does offer up the potential opportunity to break even on these expenses through increased food and beverage spending during the week. Open-Public Use Based on local champions and field rental schedules, SFI will identify opportunities for open public use of the facility. As a company, we believe strongly that sports facilities are only successful if they can create economic impact while also providing opportunities for local use participation. SFI has a strong track record at all of our facilities in terms of local programming opportunities including partnerships with local recreational leagues, adaptive programming and at-risk youth opportunities. 16.F.1.b Packet Pg. 90 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) AMENITIES The main amenity zone was proposed for a 2021 installation at the new sports complex. We do recommend adding amenities as the entire park gets built out. Based on the budget and opportunities in the full build out, SFI proposes the addition of a splash park at the complex. Heat is one of the biggest issues that the complex will deal with from both a player and guest standpoint. We believe that the investment of the splash pad will return immediate benefits to the park in terms of number of teams, revenue, and overall local-use opportunity. DEVELOPING SPORTS PARKS OF DISTINCTIONTM0’NORTH10’20’40’COLLIER COUNTY SPORTS FACILITYAMENITY AREA CONCEPT PLANMay 20, 2019PARK LEGEND1. MAIN ENTRANCE2. PICNIC GROVE3. PLAYGROUND (2-5 YEARS OLD)4. PLAYGROUND (6-12 YEARS OLD)5. SHADE SHELTER/CHANGING ROOMS6. WATER PARK7. SHADE CANOPY (FABRIC)8. 5 LEVEL CHALLENGE ROPES COURSE9. 9 HOLE MINI GOLF COURSE12234777689516.F.1.b Packet Pg. 91 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) aquatix.playlsi.comDESIGN CONCEPT4Color Palette for:CranberryRedBlueMetallic SilverXColor selection approved- as shown aboveCustomer SignatureColor PaletteCollier Country Sports Complex SPLASH PAD Custom16.F.1.b Packet Pg. 92 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) FINANCIALANALYSIS 16.F.1.b Packet Pg. 93 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) FINANCIAL ANALYSIS The financial analysis to follow is based on the business plan detailed in this report. It is important to note that there are still a number of unknowns in this project and the projected revenues and expenses are based on years of operating tournaments and events, industry trends and knowledge, and real data from existing sports complexes. While it is our intent to provide real and achievable numbers; there are numerous factors that take place that will affect these numbers in both positive and negative ways. SFI’s park operations model is purposefully structured to ensure that the public and private sector goals are constantly aligned throughout the life of the project to drive economic impact, provide local use opportunities and drive profitability. The budget does not include line items that will be covered by the County outside of SFI’s operations. As discussed earlier in this business plan, the financial analysis does not include operations of the Great Lawn. This area will be managed as a revenue driving area of the park by SFI; but without more detailed plans and discussions, we have opted to leave this out of the analysis at this point. Operations During the course of Phase 1 services, SFI has worked with the County’s project team to put together a model that will create the highest amount of economic impact, while also aligning the goals of both SFI and the County. The current model that has been discussed is a hybrid model that will maximize revenue for the complex and incentivize SFI in coherence with the private activity restrictions of the facility. The goal of this structure is to drive revenue through high levels of programming to a point where SFI’s management fee is eliminated, and the complex offsets the maximum amount of its operating expenses. In the first few years, SFI will receive a management fee as the complex is built out to full size. Once the full complex is open and under operation for an agreed-upon amount of time, the management fee is eliminated for SFI and a revenue model is employed that protects the tax-exempt status of the facility financing proceeds while also incentivizing park management to meet the underlying economic goals the park was built for. The financial analysis on the following pages does not take into account any split of revenue nor agreed-upon services that the County will provide outside of the operations of the facility. While these items will be finalized and fine-tuned during Phase 2A; they currently include landscape and common area maintenance, building and structural maintenance, insurance, and utilities. These numbers are also created with assumptions that will affect the operations of the park on a short term and long-term basis (i.e. local champion requirements and usage, final sponsorship vs. naming rights definitions, etc.). The purpose of this financial analysis will be to allow for continued conversation in Phase 2A to put together a PPP that provides the best opportunity for both SFI and Collier County. These financial numbers will continue to evolve throughout the next phase. Through our initial conversations and workshops with the County, we have no doubt that we will be able to create an amazing partnership that will drive economic impact for years to come, create amazing local opportunities for residents, and continue to drive towards the underlying goals the park was built for. 16.F.1.b Packet Pg. 94 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) 2020*202120222023202420252026202720282029OPERATING REVENUETeam Entry Fees & Facility Rental50,000$ 281,880$ 803,100$ 956,550$ 1,288,905$ 1,494,848$ 1,687,868$ 1,738,504$ 1,790,659$ 1,844,379$ Food & Beverage62,000$ 330,936$ 671,252$ 700,350$ 820,755$ 933,766$ 991,754$ 1,021,507$ 1,052,152$ 1,083,716$ Merchandise15,000$ 91,872$ 206,587$ 222,494$ 260,333$ 282,055$ 302,664$ 311,744$ 321,096$ 330,729$ Hotel Commissions-$ 30,000$ 40,000$ 50,000$ 51,500$ 53,045$ 54,636$ 56,275$ 57,964$ 59,703$ Gate Fee-$ 203,580$ 297,369$ 308,655$ 348,156$ 367,907$ 387,657$ 399,287$ 411,265$ 423,603$ Sponsorship50,000$ 50,000$ 200,000$ 220,000$ 242,000$ 266,200$ 292,820$ 301,605$ 310,653$ 319,972$ TOTAL OPERATING REVENUE177,000$ 988,268$ 2,218,309$ 2,458,049$ 3,011,649$ 3,397,820$ 3,717,400$ 3,828,922$ 3,943,789$ 4,062,103$ COST OF GOODS SOLDTournament COGS-$ 154,560$ 517,320$ 591,096$ 810,144$ 905,108$ 1,026,184$ 1,056,970$ 1,088,679$ 1,121,339$ Merchandise COGS23,490$ 41,342$ 92,964$ 100,122$ 117,150$ 126,925$ 136,199$ 140,285$ 144,493$ 148,828$ Food & Beverage COGS37,200$ 198,562$ 402,751$ 420,210$ 492,453$ 560,259$ 595,052$ 612,904$ 631,291$ 650,230$ Programming Hourly Staffing (F&B, Merch, Tournaments)62,400$ 101,760$ 12,800$ 12,800$ 12,800$ 13,600$ 14,400$ 14,976$ 15,575$ 16,198$ Event Operations COGS (HR, Accounting, Sales, Marketing, Etc.)75,000$ 359,738$ 536,481$ 548,130$ 586,520$ 614,576$ 652,266$ 671,586$ 691,703$ 712,649$ Sponsorship COGS17,500$ 17,500$ 70,000$ 77,000$ 84,700$ 93,170$ 102,487$ 105,562$ 108,728$ 111,990$ TOTAL COST OF GOODS SOLD215,590$ 873,462$ 1,632,317$ 1,749,359$ 2,103,767$ 2,313,638$ 2,526,588$ 2,602,282$ 2,680,469$ 2,761,234$ OPERATIONS NET INCOME-$38,590$114,807$585,992$708,691$907,882$1,084,182$1,190,812$1,226,640$1,263,320$1,300,869FACILITY EXPENSESSFI Facility Maintenance & Janitorial 358,680.00$ 563,510.00$ 726,974.00$ 494,711.40$ 507,695.63$ 824,860.24$ 869,059.07$ 896,503.33$ 924,865.25$ 954,176.89$ Salary/ FT Staffing & Benefits332,150$ 490,880$ 566,415$ 589,072$ 612,635$ 637,140$ 662,626$ 689,131$ 716,696$ 745,364$ Facility Marketing75,000$ 77,250$ 79,568$ 81,955$ 84,413$ 86,946$ 89,554$ 92,241$ 95,008$ 97,858$ Insurance50,000$ 51,500$ 53,045$ 54,636$ 56,275$ 57,964$ 59,703$ 61,494$ 63,339$ 65,239$ Legal35,000$ 36,050$ 37,132$ 38,245$ 39,393$ 40,575$ 41,792$ 43,046$ 44,337$ 45,667$ Corporate Services/Management Fee280,000$ 350,000$ 350,000$ 300,000$ 300,000$ -$ -$ -$ -$ -$ Travel-Transp., Lodging, Meals33,600$ 34,608$ 35,646$ 36,716$ 37,817$ 38,952$ 40,120$ 41,324$ 42,563$ 43,840$ General & Administrative facility expenses161,939$ 166,797$ 171,801$ 176,955$ 182,264$ 187,731$ 193,363$ 199,164$ 205,139$ 211,293$ TOTAL OPERATING AND MANAGEMENT1,326,369$ 1,770,595$ 2,020,580$ 1,772,290$ 1,820,492$ 1,874,167$ 1,956,217$ 2,022,902$ 2,091,947$ 2,163,438$ FACILITY NET INCOME(1,364,959)$ (1,655,789)$ (1,434,588)$ (1,063,599)$ (912,610)$ (789,985)$ (765,405)$ (796,262)$ (828,627)$ (862,570)$ * 2020 represents a pro-rated year from May 1 through December 31. Full income statement based on calendar year.** Income statement does not include line items that will be covered by the County outside of SFI’s operations. *** Income statement does not include gross profit sharing splits**** Income statement should not be treated as a final document. Numbers are conceptual and will change based on Phase 2A and 2B items. These numbers should be used for planning purposes only.16.F.1.b Packet Pg. 95 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) ECONOMICIMPACT 16.F.1.b Packet Pg. 96 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) ECONOMIC IMPACT SFI’s economic impact analysis looks at the effect the recommended operating plan will have on the local economy. Given the level of investment being put into the new facility, the project should have a significant and measurable impact on the local community. By attracting new, out-of-market visitors, the complex operations will generate new direct spending in the economy via hotel room nights and tax revenue. Further, the complex should have a positive impact on the quality of life for local residents by providing high quality field space for local groups, non-profit organizations and community events. Visitor Spending Profile Based on first-hand data gathered through years of operating tournaments in multiple locations, SFI has established an average per-day, per-person amount spent on local goods and services. The categories which make up this visitor spending profile include lodging, transportation, food and beverage, entertainment, shopping, event related expenses and other spending. Projected Visitor Information With the daily spending profile in hand and using the programming plan created for this business plan, SFI is able to project the total number of visitors and their average length of stay in the area for a tournament. In order to make these projections, several assumptions must be made regarding team size and traveling party based on real-time data drawn from our other facilities. It is important to note that the numbers below only take into account tournament participants and guests. These numbers do not include local programming, great lawn visits or non-sports events. In the second year of operations, SFI programming is projected to attract 1,008 teams, 92,000 visits and over 22,000 room nights. As the complex continues to expand and increase its draw, it is expected to generate over 3,000 teams per year, 370,000 visits and 50,000 room nights. Even before considering the visitor spending profile, this is a substantial influx of new out-of-market visitors to the local area. 2020 2021 2022 2023 2024 - 1,008 2,082 2,174 2,390 - 15,120 32,196 33,660 37,200 - 28,728 60,097 62,610 68,530 - 43,848 92,293 96,270 105,730 - 92,916 218,527 232,774 259,296 - 22,401 29,751 32,181 37,236 2025 2026 2027 2028 2029 2,559 2,721 2,925 3,144 3,380 39,918 42,540 45,731 49,160 52,847 73,156 77,600 83,420 89,677 96,403 113,074 120,140 129,151 138,837 149,250 280,411 300,134 322,644 346,843 372,856 41,102 44,775 48,133 51,743 55,624 Total Complex Visits Total Room Nights Visitor Category Total Complex Teams Total Complex Part. Total Complex Guests Total Complex Visitors Visitor Category Total Room Nights Total Complex Visits Total Complex Visitors Total Complex Guests Total Complex Part. Total Complex Teams 16.F.1.b Packet Pg. 97 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) IMPACT Using the visitor projections and visitor spending profile detailed earlier in this section, SFI is now able to estimate the amount of new direct spending directly attributable to complex operations. SFI estimates that the direct spending generated by sports programming will fall between $11 million and $40 million per year during the first ten years of operations. The final step of the economic impact analysis requires the use of RIMS II Economic Impact multipliers, compiled and supplied by the United States Bureau of Economic Analysis (BEA). Using the direct spending related to sports operations, the RIMS II Type-II multipliers can be used to calculate the following: Direct Spending For the purposes of this report, direct spending includes all real dollars spent on the following categories by both visitors and the complex operations for an event hotel, entertainment, food and beverage, retail, transportation and expenses related to event operations. Economic Impact The indirect impact includes the impact of local industries buying goods and services from other local industries. The cycle of spending works its way backward through the supply chain until all money is spent outside of the local economy. Earnings Impact This is the total wages created through the economic impact spending from the facility. Thes are wages to current and existing jobs as well as jobs created through the impact. Jobs Impact Jobs impact is the additional jobs created as a result of the sports operation’s economic impact. Local companies that provide goods and services to support facility visitors increase their number of employees as purchasing increases. Jobs impact numbers in this report are inclusive of full-time, part-time, and seasonal employment. 16.F.1.b Packet Pg. 98 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) Year 2 Direct Spending Economic Impact Earnings Impact Jobs Impact Hotel $140.00 3,136,140$ $4,324,423 $1,092,631 34 Entertainment $21.77 2,022,781$ $3,047,725 $704,737 32 Food & Beverage $37.00 3,437,892$ $4,916,529 $1,421,568 63 Retail $16.65 1,547,051$ $2,099,349 $543,479 23 Transportation $7.12 661,562$ $1,009,543 $383,574 22 Event Related $5.27 489,667$ $752,864 $221,183 7 11,295,094$ $16,150,433 $4,367,172 179 Year 3 Direct Spending Economic Impact Earnings Impact Jobs Impact Hotel $140.00 4,165,140$ $5,743,312 $1,451,135 44 Entertainment $21.77 4,757,337$ $7,167,880 $1,657,456 74 Food & Beverage $37.00 8,085,506$ $11,563,083 $3,343,357 147 Retail $16.65 3,638,478$ $4,937,414 $1,278,197 54 Transportation $7.12 1,555,914$ $2,374,324 $902,119 51 Event Related $5.27 1,151,638$ $1,770,644 $520,195 17 23,354,013$ $33,556,657 $9,152,459 388 Year 4 Direct Spending Economic Impact Earnings Impact Jobs Impact Hotel $140.00 4,505,340$ $6,212,413 $1,569,660 48 Entertainment $21.77 5,067,481$ $7,635,174 $1,765,510 79 Food & Beverage $37.00 8,612,623$ $12,316,912 $3,561,320 157 Retail $16.65 3,875,680$ $5,259,298 $1,361,527 57 Transportation $7.12 1,657,348$ $2,529,113 $960,930 54 Event Related $5.27 1,226,717$ $1,886,077 $554,108 18 24,945,190$ $35,838,988 $9,773,056 414 Year 5 Direct Spending Economic Impact Earnings Impact Jobs Impact Hotel $140.00 $5,213,040 $7,188,261 $1,816,223 56 Entertainment $21.77 $5,644,874 $8,505,132 $1,966,674 88 Food & Beverage $37.00 $9,593,952 $13,720,311 $3,967,099 175 Retail $16.65 $4,317,278 $5,858,547 $1,516,660 64 Transportation $7.12 $1,846,188 $2,817,282 $1,070,420 61 Event Related $5.27 $1,366,490 $2,100,978 $617,243 20 $27,981,822 $40,190,510 $10,954,319 463 Year 6 Direct Spending Economic Impact Earnings Impact Jobs Impact Hotel $140.00 $5,754,210 $7,934,480 $2,004,767 61 Entertainment $21.77 $6,104,552 $9,197,728 $2,126,826 95 Food & Beverage $37.00 $10,375,214 $14,837,594 $4,290,151 189 Retail $16.65 $4,668,846 $6,335,625 $1,640,166 69 Transportation $7.12 $1,996,528 $3,046,701 $1,157,587 66 Event Related $5.27 $1,477,767 $2,272,067 $667,507 21 $30,377,117 $43,624,195 $11,887,004 502 16.F.1.b Packet Pg. 99 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) Year 7 Direct Spending Economic Impact Earnings Impact Jobs Impact Hotel $140.00 $6,268,500 $8,643,635 $2,183,945 67 Entertainment $21.77 $6,533,926 $9,844,666 $2,276,420 102 Food & Beverage $37.00 $11,104,973 $15,881,222 $4,591,906 202 Retail $16.65 $4,997,238 $6,781,252 $1,755,530 74 Transportation $7.12 $2,136,957 $3,260,996 $1,239,008 70 Event Related $5.27 $1,581,708 $2,431,876 $714,458 23 $32,623,302 $46,843,647 $12,761,266 538 Year 8 Direct Spending Economic Impact Earnings Impact Jobs Impact Hotel $140.00 $6,738,638 $9,291,907 $2,347,741 72 Entertainment $21.77 $7,023,970 $10,583,016 $2,447,151 110 Food & Beverage $37.00 $11,937,846 $17,072,313 $4,936,299 217 Retail $16.65 $5,372,031 $7,289,846 $1,887,194 79 Transportation $7.12 $2,297,229 $3,505,571 $1,331,933 76 Event Related $5.27 $1,700,336 $2,614,267 $768,042 25 $35,070,049 $50,356,920 $13,718,361 578 Year 9 Direct Spending Economic Impact Earnings Impact Jobs Impact Hotel $140.00 $7,244,035 $9,988,800 $2,523,822 77 Entertainment $21.77 $7,550,768 $11,376,742 $2,630,688 118 Food & Beverage $37.00 $12,833,184 $18,352,737 $5,306,522 234 Retail $16.65 $5,774,933 $7,836,584 $2,028,734 85 Transportation $7.12 $2,469,521 $3,768,489 $1,431,828 81 Event Related $5.27 $1,827,862 $2,810,337 $825,645 27 $37,700,303 $54,133,689 $14,747,238 622 Year 10 Direct Spending Economic Impact Earnings Impact Jobs Impact Hotel $140.00 $7,787,338 $10,737,960 $2,713,109 83 Entertainment $21.77 $8,117,076 $12,229,998 $2,827,989 127 Food & Beverage $37.00 $13,795,673 $19,729,192 $5,704,511 251 Retail $16.65 $6,208,053 $8,424,328 $2,180,889 92 Transportation $7.12 $2,654,735 $4,051,125 $1,539,215 87 Event Related $5.27 $1,964,951 $3,021,113 $887,568 28 $40,527,826 $58,193,716 $15,853,281 669 16.F.1.b Packet Pg. 100 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support) The sheer volume of additional dollars reaching the area due to the addition of the sports park is substantial. Upwards of $40 million currently being spent at other outdoor tournament destinations elsewhere in the region will be spent locally on an annual basis, providing revenue and job growth across multiple industries, especially in lodging, food services and entertainment. This should come as no surprise. Many of the teams and families traveling to the tournament will stay locally for the duration of the tournament, if possible. The majority of the new job creation may be attributed to the development of additional hotels, to accommodate the increased traffic to the area or simply additional staff hired at existing hotels to handle the extra room-nights that the sports park will create. Similarly, the food industry will benefit tremendously from the influx of people that will come to the area each weekend and seek two-to-three meals a day for the duration of the tournament. As most teams have only a game or two each day, there is also the need to fill the rest of the day with entertainment options for teams and families. Here the local industry gets another boost, as they are treated to thousands of people looking for additional activities during their time in town. Annual Tax Impact The chart below looks at the estimated total tax impact that the complex will have on Collier County and the State of Florida. As shown in the table above the complex provides a significant amount of new tax opportunity for the region – nearly $1 million in the second year, increasing to more than $2.4 million by the tenth year of operations. Tax Tax Rate Year 1 Year 2 Year 3 Year 4 Year 5 Tourism Tax 5.00%$0 $156,807 $208,257 $225,267 $260,652 Collier County Sales Tax 1.00%$0 $112,951 $233,540 $249,452 $279,818 State Sales Tax 6.00%$0 $677,706 $1,401,241 $1,496,711 $1,678,909 Total $0 $947,464 $1,843,038 $1,971,430 $2,219,380 Tax Tax Rate Year 6 Year 7 Year 8 Year 9 Year 10 Tourism Tax 5.00%$287,711 $313,425 $336,932 $362,202 $389,367 Collier County Sales Tax 1.00%$303,771 $326,233 $350,700 $377,003 $405,278 State Sales Tax 6.00%$1,822,627 $1,957,398 $2,104,203 $2,262,018 $2,431,670 16.F.1.b Packet Pg. 101 Attachment: Collier Business Plan Final (9665 : Sports Complex Marketing and Support)