Agenda 10/08/2024 Item #11B (Obtain Board direction to process with a Sports Complex Expansion & Tourism Impact Study for Phases 4 and 5 of the PCSC)10/8/2024
Item # 11.B
ID# 2024-1275
Executive Summary
Recommendation to direct staff to proceed with a Sports Complex Expansion & Tourism Impact Study for the future
phases of the Paradise Coast Sports Complex to be conducted by Hunden Partners, seek a Tourist Development
Committee recommendation for the expenditure of tourist development taxes for the tourism impact study, and provide
direction to proceed with an additional field (Field 9) and the associated restroom, shelter structure, parking, and site
work to complete Phase 3.
OBJECTIVE: To obtain Board direction to proceed with a Sports Complex Expansion & Tourism Impact Study for
Phases 4 and 5 of the Paradise Coast Sports Complex (PCSC) and provide direction on proceeding with Phase 3.
CONSIDERATIONS: PCSC Phase 1 opened in mid-2020. The contract for Phases 1 and 2 was terminated in July 2023
as part of a Board-approved settlement agreement. Phase 2 became available for use in October 2023.
On August 13, 2024, Item 10A, the Board provided direction to (1) report back on how PCSC Phase 3 could proceed,
and (2) start evaluating how Phase 4 and Phase 5 could be completed and determine if an updated market and feasibility
and Tourism Impact Study should be conducted.
Phase 3: Before the Phase 2 contract was amended to reduce the number of fields from five to four and eliminate a
portion of the parking, several key elements required for Phase 3 were already constructed. These included the sports
lighting for Field 9, part of the stormwater management system (comprising piping, structures, and lakes), fire protection
infrastructure (hydrants and piping), irrigation mains, and an electrical transformer. These elements were designed to
support Field 9, Building 21, Building 18, and the related parking areas collectively, Phase 3.
Phase 3 is proposed to include Field No. 9 and its associated pre-engineered metal building structure (Bldg. 21), the
south parking lot, and a bathroom (Bldg. 18). Staff anticipates utilizing a conventional design-bid-build contract
mechanism. The design is 100% complete; construction could start in late 2025, with an approximate construction
timeline of twelve to eighteen months. The estimated design and construction cost of this phase is $9-$10 million.
Funding for Phase 3 is available in the Sports Complex Capital Fund (3007).
Presently, dedicated TDT funding for the Sports Complex is primarily committed to the series 2018 TDT bond utilized
to fund the initial Sports Complex Phase improvements. The Sports Complex TDT allocation (72% of the 5th penny)
collected above debt service requirements, interest earnings, and potentially Parks Impact Fees is proposed to fund
Phase 3. Parks Impact Fee funding could also be utilized for a portion of future phases.
Operationally, the additional field and related improvements will improve the customer experience for parking, site
flow, sheltering, and access to restrooms. The field addition will also provide an offset to the FC Naples stadium use
schedule. Field 9 will provide a 22% increase in hours for Local programming and associated revenue of $31,680,
additional field rental for at least 34-weekend events will generate $34,000, and an 11% increase in food and beverage is
projected to be $200,000. Additional sponsorships, parking revenue, and hotel commissions bring the total positive
revenue impact to $300,000.
Phase 4: The current programming and schematic design for Phase 4 consist of eleven multipurpose fields (five fields
are programmed for softball, little league, soccer/football/lacrosse, plus six fields programmed for baseball,
soccer/football/lacrosse) as well as required restrooms, and other facilities. Phase 4 design and construction costs are
estimated to be in the $40-$50 million range.
Phase 5 involves the construction of a fieldhouse for indoor sports like volleyball, basketball, ping pong, and pickleball.
The identified location is to the west of the stadium. Design and construction costs are likely to be in the $45-$70
million, depending on the project scope.
A proposed plan of finance for Phases 4 and Phase 5 will be developed as part of the Hunden Partners study and could
involve a debt instrument, TDT funding, Parks Impact Fees, Infrastructure Surtax, and other sources of revenue.
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Item # 11.B
ID# 2024-1275
Next Steps: The development of the Sports Complex concept originated with a Sports Facility Market and Needs
Assessment completed in 2015, followed by a Feasibility and Economic Impact Study in 2017. Hunden Partners
conducted both studies.
Staff recommends proceeding with an updated Sports Complex Expansion and Tourism Impact Studies, given the
substantial additional investment required to complete Phase 4 and Phase 5. Given Hunden Partners' long involvement
with Collier County’s sports facilities and the Paradise Coast Sports Complex, staff recommends contracting with
Hunden Partners. Hunden Partners has provided a proposal to conduct an updated market, financial feasibility, and
tourism economic impact study for the current and planned expansions of the Paradise Coast Sports Complex and other
park facilities for a fee of $92,800. The Procurement Division has approved Hunden Partners as a Single Source
Vendor.
To be eligible for tourist development tax funding, an independent professional analysis, performed at the expense of the
county tourist development council, must demonstrate the positive impact of the infrastructure project on tourist-related
businesses in the county. A Tourist Development Council (“TDC”) recommendation is required prior to the expenditure
of tourist development taxes for the tourism impact study. The TDC recommendation will be provided to the Board for
the Board’s review and finding that the expenditure promotes tourism prior to proceeding with the study.
FISCAL IMPACT: The estimated cost for Sports Complex Phase 3 is $9-$10 million. Funding for Phase 3 is available
in the Sports Complex Capital Fund (3007). Additionally, Phase 3 and future phases could also qualify for Parks Impact
Fee funding. The appropriate funding mix for Phase 3 will be determined in part through the Hunden Study.
Phase 4 estimated cost is between $40-$50 million. The estimated cost range for the field house for indoor sports is
$45-$70 million, depending on the project scope.
The proposal by Hunden Partners to conduct an updated Sports Complex Expansion & Tourism Impact Study for the
PCSC is $92,800 and will be funded proportionally with TDT and other appropriate sources of funding, including parks
impact fees. Funding for the Tourism Impact Study, supported by TDT, is available in the TDC Promotion budget or
reserves.
GROWTH MANAGEMENT IMPACT: There is no impact to the Growth Management Plan related to this action.
LEGAL CONSIDERATIONS: The Tourist Development Tax Statute, Section 125.0104, Fla. Stat., was amended in
2018 to include an authorized expenditure for public facilities which are defined to include major capital improvements
that have a life expectancy of 5 or more years. The County’s plans for the PCSP may be defined as public facilities and
require that the County meet the requirements of Section 125.0104(5)(a)6, Fla. Stat., as follows:
Tax revenues may be used for these purposes only if the following conditions are satisfied:
a. In the county fiscal year immediately preceding the fiscal year in which the tax revenues were initially used
for such purposes, at least $10 million in tourist development tax revenue was received;
b. The county governing board approves the use for the proposed public facilities by a vote of at least two-
thirds of its membership;
c. No more than 70 percent of the cost of the proposed public facilities will be paid for with tourist
development tax revenues, and sources of funding for the remaining cost are identified and confirmed by the
county governing board;
d. At least 40 percent of all tourist development tax revenues collected in the county are spent to promote and
advertise tourism as provided by this subsection; and
e. An independent professional analysis, performed at the expense of the county tourist development council,
demonstrates the positive impact of the infrastructure project on tourist-related businesses in the county.
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10/8/2024
Item # 11.B
ID# 2024-1275
A TDC recommendation for the expenditure of tourist development taxes is required prior to proceeding with the
tourism impact study. The TDC recommendation will be presented to the Board for review and a finding that the
expenditure promotes tourism prior to proceeding with the study. This item is approved as to form and legality and
requires majority vote for approval. – CMG
RECOMMENDATIONS: Direct staff to proceed with a Sports Complex Expansion & Tourism Impact Study for the
current and future phases of the Paradise Coast Sports Complex to be conducted by Hunden Partners, to seek a Tourist
Development Committee recommendation for the expenditure of tourist development taxes for the tourism impact study,
and provide direction to proceed with an additional field (Field 9) and the associated restroom, shelter structure and
related parking and site work to complete Phase 3.
PREPARED BY: Ed Finn, Deputy County Manager
ATTACHMENTS:
1. Sports Complex Expansion & Tourism Impact Study 9-24-24
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Sports Complex Expansion & Tourism Impact Study
To: Collier County
Ed Finn, Deputy County Manager
3335 Tamiami Trail East, Suite 101
Naples, FL 34112
Ed.Finn@colliercountyfl.gov
From: Rob Hunden, CEO
Hunden Partners
213 W Institute Place, Suite 707
Chicago, IL 60610
rob@hunden.com
Date: September 24, 2024
Understanding
Hunden Partners is pleased to submit the following scope of work to perform a market demand,
financial feasibility and economic impact study for the current and planned expansions of the Paradise
Coast Sports Complex (Complex or Project) requested by Collier County (County or Client), Florida.
Between 2015 and 2018, Hunden Partners completed two studies related to the Complex in Collier
County. The purpose was to gain a market- and data- driven understanding of the current and future
opportunity for youth and amateur sports events and developments in Collier County, and to provide
the County with recommendations on facility development, governance and management scenarios,
followed by projections of performance.
As a result, in 2020 the County opened the 175-acre multi-purpose Paradise Coast Sports Complex.
Even through the Covid-19 pandemic, the Complex (operated originally by Sports Force, who was
then replaced by Sports Facilities Companies (SFC)) showed resiliency and experienced strong visitor
traffic. Currently the Complex is undergoing multiple phases of expansion. With local and visitor
excitement and awareness increasing, Collier County is looking to assess the tourism impact of the
current expansion (up through completion of Field 9), as well as the likely performance and impact of
the next phases of development, including multipurpose fields and a field house hardened for
hurricane season.
Hunden Partners will consider two site locations when determining recommendations for the next
phases of expansion/development: the Paradise Coast Sports Complex and Big Corkscrew Park
(BCP). Hunden will consider both locations, BCP and the Sports Complex, when preparing
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recommendations for the optimal location for additional sports fields and a hurricane hardened field
house in the County.
The financial and economic impact scenarios that the County seeks include:
1) The current Complex, pre-expansion
2) The Complex once field 9 is complete
3) The Complex once expanded with recommended/proposed outdoor elements
4) The Complex once expanded with recommended/proposed indoor/outdoor elements
5) The Complex and Big Corkscrew Park (if study recommends BCP as optimal site)
Through a comprehensive market, financial and impact study, Hunden will profile the historical
performance of the facility, evaluate past, current expansion and future phases making projections of
performance and spending, jobs and tax impacts of the Complexes various phases, including future
expansion.
Scope of Work
Hunden’s work plan is proposed to be organized as follows:
§ Task 1 – Kickoff, Project Orientation, and Interviews
§ Task 2 – Economic, Demographic and Tourism Analysis
§ Task 3 – Paradise Coast Sports Complex and Big Corkscrew Park Historical Performance
and Impact Profiles
§ Task 4 – Local Sports Facility Supply and Demand Analysis
§ Task 5 – Regional Competitive Sports Facilities Analysis
§ Task 6 – Tournament Opportunity Analysis
§ Task 7 – Case Studies
§ Task 8 – Support Amenities Analysis
§ Task 9 – Expansion Implications and Recommendations
§ Task 10 – Demand and Financial Projections
§ Task 11 – Economic, Fiscal and Employment Impact Analysis
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Task 1: Kickoff, Project Orientation and Interviews
The kickoff will be attended by members of the Hunden team and the Client to confirm the goals of
the study and other contextual issues related to the Project. Hunden will:
§ Obtain information and data from Collier County, Paradise Coast Sports Complex
management from Sports Facilities Company, County Commissioners, City of Naples
departments and their respective support staffs, and any other organizations that the
Client deems appropriate.
§ Tour the Paradise Coast Sports Complex, Big Corkscrew Park, and surrounding demand
generators, interview stakeholders from a variety of local private and public organizations,
and perform fieldwork as appropriate.
§ Review historical performance figures, previously completed studies and facility
expansion plans.
§ Gather and analyze background and performance data related to the Project, site plans
or designs related to the proposed Project as appropriate.
§ Gather and review available economic, demographic and financial data.
Task 2: Economic, Demographic and Tourism Analysis
Hunden will evaluate Collier County’s position as an economic center of activity as well as a
destination for visitors. This analysis will provide a realistic assessment of the area’s strengths,
weaknesses, opportunities and threats (SWOT). Among the data gathered and analyzed will be:
§ Geographic attributes, accessibility, and transportation links,
§ Trends in population growth and income,
§ Corporate presence, major employers and any significant recent or likely future changes,
§ Education levels and implications for the market and project, and
§ Tourism attractions, especially those popular with families.
This analysis includes an ESRI Neighborhood Analysis, Placer.ai Analysis, Census data, and CoStar
Insights. Hunden utilizes the latest market data, visitor origin data, demographic data, psychographic
data, and other resources to determine a comprehensive view of your marketplace.
Task 3: Paradise Coast Sports Complex and Big Corkscrew Park Historical
Performance and Impact Profiles
Hunden will provide an overview of the historical performance (events, by type, attendance, revenue
and expense detail) and lost business for the Paradise Coast Sports Complex. Hunden will take into
consideration the current event types and capacities, as well as the event type restrictions and lost
business due to Complex limitations. The existing and past business will be a prologue for future
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potential expanded business with enhanced/expanded facilities and amenities. Primary research will
be based on interviews with the Client and current and potential visitors, records of performance by
the management company SFC and the County, and Place.ai cell-phone tracking technology reports,
which will determine many datapoints related to visitors and their origin.
Hunden will also consider tournament, event, and sport types that cannot be currently hosted. This
lost business analysis will help Hunden determine future demand opportunities.
The goal is to evaluate the marketability of the Complex as it exists today, after planned and phased
expansions, and into the future.
Additionally, Hunden will assess the current offering of synergistic surrounding assets, such as
supportive hotels like the Great Wolf Lodge, any other walkable or proximate uses, and demand
generators to understand how the facility has induced economic development for the area.
Finally, Hunden will profile the existing offerings at Big Corkscrew Park and provide a high-level
summary of the site’s strengths and weaknesses related to future expansion.
Task 4: Local Sports Facility Supply and Demand Analysis
Hunden will provide an assessment of the current supply of and demand for local sports facilities, as
local sports usage is a key factor in weekday business.
First, Hunden will review and survey the existing public, non-profit and private inventory of sports
facilities in Collier County and nearby areas. Hunden will then inventory and survey the current
amateur sports tournament activity within the area that may compete with the Project.
Local Demand Interviews. Through interviews with relevant sports clubs and organizations, we will
focus on identifying existing demand, current facility supply and the gaps between the two. Sports
with excess demand will be identified and presented in terms of their facility needs. Demand
interviews are one of the methods that Hunden uses to determine existing participation data, rental
rates and costs for facilities in the county and nearby areas, and other key datapoints to determine
recommendations.
Task 5: Regional Competitive Sports Facilities Analysis
Many of the likely events that could occur at an expanded Paradise Coast Sports Complex will be
from around the state of Florida and the Southeast. In order to understand the competitive situation
in which the County finds themselves, Hunden will provide an updated analysis and profile on the
relevant regional competitive sports facilities as well as those proposed and under construction in the
region.
Hunden will utilize geofencing research technology to gather visitation and performance data for
relevant regional sports complexes. This research output will show how many visitors frequent the
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relevant regional facilities and where the facilities draw attendees from. Hunden will analyze and
document the following conditions, as available and appropriate:
§ Site and facility layout,
§ User and attendee counts, including local vs. out-of-town,
§ Event types,
§ Type of sports usage,
§ Utilization times,
§ Rental rates,
§ Amenities,
§ Estimated hotel room nights generated, and
§ Unique characteristics.
Hunden will utilize geofencing research technology to gather visitation and performance data for
existing facilities in Collier County and for competitive facilities in the region. This research output
will show how many visitors frequent the facilities and where the facilities draw attendees from.
Hunden can also use this tool to gather demographic and socio-economic data to understand the
current market reality in Collier County and the surrounding region. The following figures provide a
high-level illustration of the type of visitation data we can gather with this tool. We will compare this
data with previous report findings as appropriate to understand how the region has been impacted
by sports facilities.
Rock Hill Sports & Event Center - Rock Hill, SC
January 2021 - December 2021
Total Visits Total Unique Customers
Visitor Origins by Distance from Site
Est. Number
of Visits
Percent of
Total Visits
Est. Number of
Customers
Percent of Total
Customers
Avg. Visits per
Customer
Locals - Within 25 miles 314,800 29%70,700 25%4.45
Regional Distance - Between 25 and 75 miles 280,600 26%71,700 26%3.91
Long Distance only - Over 75 miles 502,800 46%138,400 49%3.63
Total Visits 1,098,200 100%280,800 100%3.91
Source: Placer.ai
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The regional competitive sports facilities analysis will provide a sense of strengths and weaknesses,
as well as opportunities and threats.
After determining current market needs and facility locations, Hunden will compile a supply and
demand matrix and suggest implications for the Project. Hunden’s matrix will identify whether the
current inventory of facilities in Collier County is adequate for each sport/facility type studied. If the
answer is no, Hunden will then consider whether the current inventory could meet demand with
proper improvements. The matrix will illustrate areas with adequate sports facility supply and those
struggling to meet demand. This analysis will influence implications in Task 9 regarding what
expanded type of fields or facilities the County should prioritize.
Task 6: Tournament Opportunity Analysis
Of critical importance to this project is the potential for economic and fiscal impact from the
inducement of events from national and regional tournaments. Just like local and small regional
tournaments, super-regional and national tournaments can generate significant visitation, spending,
room nights and other positive impacts to a community and can even support the development of
other real estate uses if enough consistent local and non-local demand occurs onsite. Participants
and their families come from farther distances and therefore must spend the night, unlike those from
the 100-mile region that may be “daytrippers.”
Tournament Demand Interviews. Hunden will conduct interviews with tournament directors,
leagues, current facility management company SFC, management at competitive facilities and others
who are likely to use the facilities. These interviews will help determine what teams, leagues, and
tournaments are likely to come to the facility and under what conditions. Demand interviews will lead
to implications of the facility program.
Task 7: Case Studies
Hunden will analyze comparable sports complexes, with specific consideration given to complexes
that include both indoor and outdoor elements, to gather implications and lessons learned. Hunden
will utilize our experience and knowledge of national facilities to determine what case studies will be
pertinent to the Project.
The comps analysis will consider the following data points, as available and appropriate:
§ Summary and overview of the facility site and market traits,
§ Facility details including size/number of fields and courts,
§ Performance and visitation of the complex and supporting development,
§ Operations/Governance/Management, and
§ Others, as appropriate.
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Geofencing/cell phone research technology will show how the sports facilities have worked in other
places, as well as identify how often they attract visitors, generate room nights, etc. Hunden can
discern between the market support from locals versus those from out of town, which will help us
determine the additional supportable retail, restaurants and hotel room nights from the sports
development and general tourism vs. local market. We can also determine the demand at
comparable sports developments to compare with projections for the Complex.
Our investment has proven essential by providing recorded statistics and figures of consumer
behaviors and visitor activity. For comparable and competitive venues, geofencing research helps
Hunden evaluate activity, determine primary trade areas (origin of customers), and establish time of
day and/or day of week facilities are busy. This data is evaluated against the proposed project, as
well as used to project possible performance and impact. The demographics of the visitors to the
sports complex are also known, which helps determine the type of tenants and user groups to seek
for your development.
The comparable developments and destinations will be profiled, and implications discussed. The
results will provide the Client with lessons learned and critical elements to success or failure.
Task 8: Support Amenities Analysis
Hunden understands that attracting sports tournaments should include capturing the hotel room
nights and spending from the visiting teams and families. As such, the community needs to have
enough quality hotels to capture the sports demand. If hotels are mostly located outside of the
County limits, the return on the investment for the sports facilities will be limited to local quality of
life, while providing neighboring communities with the hotel room night impact. As such, Hunden
will analyze the existing local hotel, retail, and restaurant supply.
Hotel. The analysis will determine the proximate quality room count, as well as the community-wide
room count, for hotels in the nearby area, to understand what impact from sports can be captured in
the city and county limits – and the implications for more hotels to be developed in the community.
The new Great Wolf Lodge, under construction, will be a primary focus, as will other hotels that can
cater to tournaments. Hunden will use Placer.ai and interviews with the Client and SFC to determine
which hotels are the most popular with visitor teams and their families.
The analysis will include tracking of occupancy, monthly room night demand, average daily rate
(ADR), and Revenue per Available Room (RevPAR), and performance by year, month, day of week,
unaccommodated demand and demand type/market mix. Hunden will include data showing local
hotel room occupancy, average daily rate, and Rev/Par for the last six years.
Hunden will assess if the local hotel market can accommodate the sizes of events/tournaments being
proposed at the expanded Project.
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Restaurant/Retail. Hunden will also profile, map and discuss the pros and cons of retail and restaurant
nodes and how their proximity to the Complex and BCP enhance or detract from the Project’s
success.
Task 9: Facility Expansion Implications: Paradise Coast Sports Complex and Big
Corkscrew Park
Hunden will provide implications and, if appropriate, recommendations for the next phase of
expansion in Collier County for outdoor fields and an indoor field house. Hunden will consider two
sites, the Paradise Coast Sports Complex and Big Corkscrew Park. Hunden will opine on the optimal
site for expansion, as well as optimal size, program, configuration, functionality, amenities, quality,
and other key elements. The recommendations will consider the results of all the prior tasks, which
will point toward logical conclusions regarding every aspect of the Project.
The recommendations may include:
§ All physical programmed areas by use, size and type,
§ Optimal location for new outdoor sports fields: at the Sports Complex or at BCP
§ Food and beverage offerings,
§ Programming and events,
§ Parking,
§ Funding, procurement and management best practices, and
§ Other on-site amenities and walkable amenities such as hotels.
Task 10: Demand and Financial Projections
Hunden’s demand, financial and impact projections will break the Project into five phases:
1) The current Complex, pre-expansion
2) The Complex once field 9 is complete
3) The Complex once expanded with recommended/proposed outdoor elements
4) The Complex once expanded with recommended/proposed indoor/outdoor elements
5) The Complex and Big Corkscrew Park (if study recommends BCP as optimal site)
Event/Demand Projections. Hunden will make projections for demand for events and uses at the
expanded fields and facilities. These will be projected for a period of time to be determined mutually
with the Client. Projections will include demand by type of event/tournament and recreation amenity
type.
Estimated Operating Financials. Based on the projection of demand and a number of assumptions
regarding rental rates, fees, concession per-capita revenues and others, Hunden will prepare a
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financial projection for the expanded facility. This will include operation and maintenance costs which
will influence the anticipated return on investment projections for each scenario.
This financial analysis will include the following:
§ Estimated line-item revenues. Expenses directly related to the facilities will also be
projected for the period. The demand profile, experience with similar facilities and data
from existing facilities will be used to model the operating revenues and costs of the
expanded Paradise Coast Sports Complex and will be incorporated into the business
plan. The model will generate a pro forma operating statement that will include revenue
and expense items, including the following:
o Revenues: rental rates, tournament fees, food and beverage, parking and other
income,
o Direct operating expenses: wages and salaries, contract services, utilities,
maintenance and repair, supplies and other expenses, and
o Unallocated expenses: employee benefits, advertising and promotion, general and
administrative, professional services, insurance and other expenses.
As stated above, the financials will be presented in a line-item by line-item basis, which will lead to
estimates of net operating performance.
Task 11: Economic, Fiscal, and Employment Impact Analysis
Hunden will conduct an economic, fiscal and employment impact analysis to determine the direct,
indirect, and induced impacts, including the tax revenues that are generated by the Project in the
various phases of development/expansion, including:
1) The current Complex, pre-expansion
2) The Complex once field 9 is complete
3) The Complex once expanded with recommended/proposed outdoor elements
4) The Complex once expanded with recommended/proposed indoor/outdoor elements
5) The Complex and Big Corkscrew Park (if study recommends BCP as optimal site)
Based on the above analysis, a projection of net new direct spending will be tabulated. New spending
is that spending that is new to the community as visitors come to Collier County due to an event,
spend the night or otherwise spend time or money in the area. Hunden will analyze the spending by
residents (transfer spending) and discuss the amount that is recaptured. For example, due to the
existence of activity generated by events, economic activity occurs as residents pass up opportunities
to leave the area to spend money. Instead of going to an event in another area, the event keeps their
spending within the area. This is considered recaptured demand. The net new and recaptured
spending is considered to be the Direct Impact.
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From the direct spending figures, further impact analyses will be completed.
• Indirect Impacts are the supply of goods and services resulting from the initial direct
spending. For example, a new resident’s direct expenditure on retail causes the store to
purchase goods and other items from suppliers. The portion of these purchases that are within
the local economy is considered an indirect economic impact.
• Induced Impacts embody the change in local spending due to the personal expenditures by
employees whose incomes are affected by direct and indirect spending. For example, a
waitress at a restaurant may have more personal income because of the new spending. The
amount of the increased income that the employee spends in the area is considered an
induced impact.
• Fiscal Impacts represent the incremental tax revenue collected by the County due to the net
new economic activity related to a development. The fiscal impact represents the
government’s share of total economic benefit. There will be distinct tax impacts for each
governmental entity. Fiscal impacts provide an offset to the potential public expenditures
required to induce the development of the Project. Hunden will identify the taxes affected
and conduct an analysis of the impact on these accounts and governmental units.
• Employment Impacts include the incremental employment provided not only onsite, but due
to the spending associated with the Project. For example, the direct, indirect, and induced
impacts generate spending, support new and ongoing businesses, and ultimately result in
ongoing employment for citizens. Hunden will show the number of ongoing jobs supported
by the project and provide the resulting income and income taxes generated.
Hunden uses one of the industry’s most relied upon multiplier models, IMPLAN. This input-output
model estimates the indirect and induced impacts, as well as employment impacts, based on the
local economy. An input-output model generally describes the commodities and income that
normally flow through the various sectors of the economy. The indirect and induced expenditure,
payroll, and employment result from the estimated changes in the flow of income and goods caused
by the projected direct impacts. The model data are available by various jurisdictional levels,
including counties.
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Milestones and Touchpoints
Hunden will incorporate the following milestones and touchpoints with the Client throughout the
study process:
§ Kickoff Organizing Call – Once the administrative engagement paperwork process is
complete, Hunden will schedule an initial kickoff organizing call/Zoom with the Client
team for introductions and to schedule the in-person site visit, tours, and meetings.
Hunden will send a kickoff memo outlining requests for data, scheduling arrangements,
and key contact information.
§ Site Visit/Local Discovery – Members of the Hunden key personnel team will travel to
Collier County to conduct an in-person kickoff trip with the Client, including stakeholder
meetings and interviews, site and facility tours, and tours of surrounding demand
generators.
§ Circle Back Call – After the kickoff trip, Hunden will schedule a ‘circle-back call’ with the
Client to wrap up data requests and any outstanding discovery phase items.
§ Check-In Calls – Throughout the market research tasks, Hunden can schedule check-in
calls with the Client to ensure timely forward direction through the study process.
§ Market Findings Presentation (deliverable) – Hunden will present a PowerPoint-style
deliverable of market findings electronically to the Client. This will include the
recommended scenarios and findings for the Client to consider.
§ Draft Analysis (deliverable) – Hunden will complete all financial modeling and compile
the results into a draft analysis of its financial outputs, which will be presented to the Client
electronically for review and comment.
§ Final Analysis (deliverable) – After receiving comments from the Client on the draft
analysis, Hunden will issue its final analysis.
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Timing
Hunden proposes the following timing for each distinct deliverable:
§ Market Findings – approximately seven weeks after the following have occurred: contract
authorization, receipt of kickoff payment, and completion of in-person site visit
§ Draft Analysis – approximately four weeks after delivery of market findings
§ Final Analysis – approximately one to two weeks after receiving Client comments on the
draft
We expect the overall timeline for the study to be approximately three months, assuming Client
responsiveness and availability.
Fees
Hunden will complete the analysis for a lump-sum fee of $92,800, inclusive of research and travel
expenses for two (2) trips to Collier County for the kickoff and a presentation in front of the County
Commission.
Hunden will invoice the Client according to the following payment milestones:
§ Kickoff Invoice, due at the completion of the site visit: $14,000
§ Market findings presentation: $32,000
§ Delivery of draft analysis: $32,000
§ Delivery of final analysis: $14,800
Written Deliverable Option. Hunden’s deliverables are comprehensive PowerPoint-style
presentations. If the Client wishes to receive a written report, an additional fee of $11,000 will be
added to the total fee, split into four equal amounts across the four payment milestones. To authorize
the written deliverable option, initial here: _______________
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Contractual Conditions
The following conditions apply to this engagement with you.
CLIENT ACKNOWLEDGEMENTS.
1. The Client acknowledges that the format of the final deliverable output is a PowerPoint-style
report document.
Client Initial: ________________________
2. The Client acknowledges their critical role in providing Hunden with project background and
other requested and necessary/ pertinent data items that only the Client has the capability of
sharing in order to start the formal study timeline. Any delay in providing critical project or
site data will delay Hunden’s deliverable.
Client Initial: ________________________
3. The Client acknowledges that these project types are often not commercially viable and
typically require public funding upfront and/or annually to be sustained.
Client Initial: ________________________
SCOPE LIMITATIONS. Hunden’s services do not include the following: any assistance with a bond
marketing strategy; any assistance with the preparation or distribution of any official statement; or
any advice on the municipal bond market. Hunden does not provide advice with respect to municipal
financial products or the issuance of municipal securities, including services with respect to the
structure, timing, terms and other similar matters concerning such financial products or issues.
Hunden is not a municipal advisor and Hunden is not subject to the fiduciary duty set forth in section
15B(c)(1) of the Registration and Regulation of Brokers and Dealers Act (15 U.S.C. 78o-4(c)(1)) with
respect to the municipal financing product or issuance of municipal securities. The Client is advised
that any actual issuance of debt must be done under the advice of its bond counsel and financial
advisors. Your financial advisor should provide any advice concerning the specific structure, timing,
expected interest cost, and risk associated with any government loan or bond issue. Potential
advisors should not rely on representations made in this report with respect to the issuance of
municipal debt.
The findings and recommendations of Hunden’s research will reflect an analysis of primary and
secondary sources of information. Estimates and analyses presented in our work product will be
based on data that are subject to variation. Hunden will use sources that it deems reliable, but will
not guarantee their accuracy. Recommendations will be made from information provided by the
analyses, internal databases, and from information provided by external sources.
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The Client is entitled to receive the work product(s) prepared by Hunden pursuant to this Agreement.
The Client has no right to access or deliverance of any underlying statistics, models, or any other
information developed by Hunden in preparing the Report to which this Agreement pertains.
REVISIONS. Hunden will complete a maximum of two drafts of the report. The Client is expected to
provide comments and edits on the draft report and those will be addressed by Hunden. Hunden’s
results may not always agree with the desires of the Client. Hunden will use its independent
perspective and research to drive our results. Any revisions, questions, conversations, zooms or travel
requested after two drafts (initial draft report, then final draft), will be billed at Hunden’s hourly rates
of $495 for Rob Hunden and $300 for the project team. Payment on the final milestone will be
required and an advance of $2,500 on the hourly work that would be required by the Client or its
designees, such as lenders and others.
UPDATES. Hunden has no responsibility to update its work product(s) for events and circumstances
occurring after the date presented to the Client. Delayed invoice payments will result in the delay of
deliverables for the next portion of work. If edits and comments are not received from the Client
related to any prior deliverable within thirty (30) days of the delivery of the deliverable, the work
product will be considered final, and the current billing will be sent and become due.
TIMING OF DELIVERABLES. The timeline for the study begins when the following have occurred: 1)
receipt of first payment, 2) signing of this contract and 3) receipt of any Client materials related to the
Project requested by Hunden.
VIRTUAL PRESENTATIONS. This contract is limited to up to three (3) virtual presentations of findings
at the conclusion of the study. Fees for additional virtual presentations will be negotiated separately.
BILLING. Any past invoices must be paid prior to the delivery of the next Milestone Deliverable. If
an invoice remains unpaid 30 days after it was emailed to the client, Hunden may without further
obligation, cease the assignment and terminate the Agreement. All previous invoices will remain
due. Any invoice unpaid after 30 days will accrue a 3% per month late fee. Any invoice unpaid after
90 days will result in legal action by Hunden to collect such invoice(s).
Failure by Hunden to assess late fees does not preclude Hunden from assessing late fees in the future.
TRAVEL. In the event that the Client chooses to alter, adjust or change dates/times of any Client-
related trip after Hunden has booked and purchased travel arrangements, it shall be the responsibility
of the Client to reimburse Hunden for any fees and fare/price differences associated with
cancellation/change of travel arrangements.
USE OF DELIVERABLE. The Work Product is copyrighted and cannot be manipulated in any way
beyond the format that it was provided to the Client.
BREACH OF AGREEMENT. In the event the Client breaches the terms of this agreement, it agrees
to indemnify Hunden for all loss, expense, claims or costs and attorneys’ fees incurred by Hunden
resulting from such breach, including the cost of any action taken to rectify any breach, including
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collection of any amounts remaining due to Hunden from client. The provisions of this section shall
survive the termination or expiration of this agreement with respect to any claims or liability occurring
prior to such termination or expiration.
TERMINATION. Notwithstanding the Billing language above, Hunden reserves the right to terminate
this Agreement on fifteen (15) days written notice to Client should Client fail to satisfactorily perform
its obligations under this Agreement. In the event Hunden terminates this Agreement, Client is
obligated to pay Hunden for all services rendered under this Agreement prior to termination,
including work through the next unbilled milestone. Nothing contained herein shall constitute a
waiver of Hunden’s right to bring suit for damages or to enforce specific performance of this
Agreement. In the event of termination of this Agreement by the Client, Client is obligated to pay
Hunden for all services rendered under this Agreement prior to termination, including work through
the next unbilled milestone. Hunden further reserves the right to take any legal action necessary to
enforce its rights under this Agreement. In the event Hunden is required to commence suit to collect
any unpaid amounts due to it from Client, Client agrees to reimburse Hunden for its costs and
attorneys’ fees in bringing such suit.
It is agreed that the liability of Hunden to the Client is limited to the amount of the fees paid by client
to Hunden.
Hunden limits its responsibility to the Client and any use of the study produced pursuant to this
Agreement by third parties shall be at the risk of the Client and/or said third parties. By the execution
of this Agreement, Client acknowledges that he/she/it has read and agrees to the terms and
conditions of this Agreement and agrees to the inclusion of a standard set of General Assumptions
and Limiting Conditions in the report. Additional conditions prompted by the discovery of
extraordinary or unusual circumstances uncovered during the course of investigation may be added
to the study assignment, if necessary.
DISPUTES. Any controversy or claim arising out of or relating to this Agreement, or the breach
thereof, other than non-payment of amounts due hereunder, shall be settled by arbitration
administered by the American Arbitration Association in accordance with its Commercial [or other
applicable] Arbitration Rules, and judgment on the award rendered by the arbitrator(s) may be
entered in any court having jurisdiction thereof.
If this document meets with Client’s approval, Client may accept this letter and authorize Hunden to
proceed by signing below.
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Authorization
Accepted By:
Signature ___________________________________________
Printed Name ___________________________________________
Title ___________________________________________
Company ___________________________________________
Date: ___________________________________________
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