CAI ShoWare Economic Impacts 2012 1116

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ShoWare Center Economic Impact AnalysisCity of KentNovember 2012

Presented to:

Prepared by

with


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Community Attributes tells data rich stories about communities

that are important to decision-makers.

Principal: Chris Mefford

Analysts: Mark Goodman Aaron Blumenthal Alexandra Hudson

Community Attributes Inc.1402 Third Avenue, Suite 930

Seattle, Washington 98101

www.communityattributes.com


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Kent ShoWare Center November 2012 Page i Economic Impacts

EXECUTIVE S UMMARY Kents ShoWare Center opened for business in January 2009, with kick-off events including agrand opening party, immediately followed by the inaugural ShoWare Center Seattle

Thunderbirds hockey season. Within its first few months, ShoWare Center bustled, having

hosted a variety of concerts, sporting events and civic events.

ShoWare Centers opening came at a difficult time in the midst of mounting national and globaleconomic problems. The City of Kent had committed to building ShoWare Center in July of 2007. Just five months after construction began, the worlds economy stumbled and the U.S. fellinto the worst economic era since the Great Depression of the 1930s.

An Entertainment MagnetSince that time, the economy has stabilized, and ShoWare Center has become a major localinstitution with a diverse offering of entertainment events and steady tenant draw in the

Thunderbirds. ShoWare Center is now a regional magnet, attracting more than one million visitors to Kent for sports events, entertainment, conferences, civic events andmore.

Patrons come from across the region to attend events at KentsShoWare Center and patron draw is characterized as follows:

More than half of ShoWare Center visitors (excluding Thunderbirds patrons) come from south King County and North Pierce County, with the highest concentrationin and around the Kent (20%) and the Federal

Way/Bonney Lake area (21%). Significant patron draw ranges from Seattle (south of the Montlake Cut; 11%),

Tacoma (11%), and the Bellevue/Redmond area (8%). Patrons from beyond Kents borders are increasingly

drawn to Kent for ShoWare Center events. From 2009to 2011 the proportion of ShoWare Center patrons withresidences in Kent fell from 19% to 12%. Meanwhile, inthat same time period the proportion of Tacoma andPierce County patrons grew from 16% to 25%.

Thunderbirds season ticket-holders residences areconcentrated in and around Kent, with the highestconcentration located between Interstate 5 andHighway 167.

The most highly attended events from 2009 to 2011 were Thunderbirds hockey and other sporting events.

Patron Draw. ShoWare's patrons come rom all over the central Puget Sound regio

whose residences are shown by the yellow (2011 patrons).


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Kent ShoWare Center November 2012 Page ii Economic Impacts

In 2011 Thunderbirds and other sporting events drew 164,000 patrons. The secondlargest draw was family entertainment with 62,000 patrons in 2011.

Thunderbirds ticket holders attended events more frequently than non-Thunderbirdspatrons. Among non-Thunderbirds patrons 72% stated they attended events 1 to 2 timesa year.

Since opening in 2009 more than 1,000,000 patrons have attended events at ShoWareCenter.

Patron Spending ImpactsShoWare Center patrons that attend events also spend recreation dollars in Kent. They go outfor dinner, shop at local businesses and sometimes spend the night at local hotels. All told,ShoWare Center patrons spent an estimated $12.1 million in 2011 at local businesses. Dining was the most common form of spending for all patron types, with shopping and lodging less common. The following sections highlight spending patterns of ShoWare Center patrons

surveyed during the summer of 2012.Dining

Intercept surveys suggest that roughly 60%of patrons (not including Thunderbirdspatrons) dine out before or after events.

Those that do spend roughly $40 ondining, not including spending at ShoWareCenter.

Thunderbirds patrons are even more likely to dine out before or after the event.Roughly 85% dine out before

Thunderbirds events.

Shopping and Lodging

Shopping was found to be less commonthan dining, with an estimated 8% of non-

Thunderbirds patrons shopping before orafter events (the Thunderbirds patron survey did not include questions on shopping).

Among those that spent money on shopping, they spent $35 per ShoWare Center relatedtrip, on average, not including spending at ShoWare Center.

Kent Station was the most commonly mentioned destination for shopping among survey respondents. Historic Downtown Kent and East Hill, although far less common among respondents, were also mentioned as shopping destinations.

Spending on lodging and entertainment was rare among all types of survey respondents.

$9.7

$0.9 $0.6 $0.9

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$ Millions

$12.1 Million in Patron SpendingOutside of ShoWare, 2011

DiningShopping

LodgingEntertainment

ShoWare patrons spent more than $12.1 million in 201


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Kent ShoWare Center November 2012 Page iii Economic Impacts

Full Economic Impact The $12.1 million in patron spending provides revenues for Kent businesses. These revenuesallow Kent businesses to buy supplies and services from other Kent and regional businesses, andpay wages and salaries for Kent workers. These wages allow employees to spend their hardearned money on local products and services. Incorporating these induced business andemployee spending benefits raises the overall impact of ShoWare Center activity to $25.1 million in 2011 . The following findings provide details regarding spending by patrons both atand outside of events.

In 2011, visitors spent an estimated $12.1 million at dining and shopping businesses inKent while attending ShoWare Center events (not including concessions sold atShoWare Center), based on ShoWare Center patron surveys conducted in 2012.

ShoWare Center and Thunderbirds ticket and concession sales added an additional $4.5million in 2011, for a total direct local benefit of $16.6 million.

Indirect and induced benefits, which reflect business to business spending and employeespending of personal income, are estimated to bring the total spending impact to $25.1million in 2011.1

Municipal Revenues The $25.1 million in spending generates critical tax revenues for the City of Kent, King County, Washington State and various municipal service jurisdictions. In terms of tax revenues reaped by the City of Kent, ShoWare Center related spending contributes more than $609,000 in tax revenues in the form of sales tax, admissions tax and lodging taxes. These revenue figuresdo not include property taxes supported by local businesses and the improvements and

investments they have made to Kent buildings and establishments.

The following sections detail findings regarding estimated fiscal impacts to the City of Kent:

ShoWare Center contributes a total of $609,700 in tax revenues to the City of Kentannually.

Of this, $403,000 comes from patron spending at Thunderbirds games and ShoWareCenter events, including dining and shopping during trips to ShoWare Center.

The additional $206,700 includes tax revenues that come from indirect and inducedimpacts estimated and derived from economic models.

These models capture business to business spending and the impacts from employeespending (same assumption of 75% of indirect and induced impacts captured locally).

1 The indirect and induced impacts assume 75% of all indirect and induced benefits are captured within Kent city limits. The actual number could be higher or lower than 75%, likely less than100%, but likely fairly high within a range of 0 to 100% as well.Kents concentration of

wholesale suppliers and distributors suggest a relatively higher number.


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Kent ShoWare Center November 2012 Page iv Economic Impacts

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Kent ShoWare Center November 2012 Page v Economic Impacts

CONTENTS Executive Summary .......................... .......................... .......................... ........................... ......................

Introduction ........................ .......................... ........................... .......................... .......................... .........

Background and Purpose ......................... ........................... .......................... .......................... ......... 1

Methods ....................... .......................... ........................... .......................... .......................... .............

Organization of this Report .......................... ........................... .......................... .......................... .... 2

Current Conditions ........................... .......................... .......................... ........................... ..................... 3

Revenues and Operations ........................ ........................... .......................... .......................... ......... 5

Event Segmentation and Attendance ........................ .......................... ........................... ................. 8

Patron Origin and Draw .......................... ........................... .......................... .......................... ....... 12

Email and Intercept Survey Results .......................... .......................... ........................... ................... 16

Intercept Results ........................... .......................... .......................... ........................... ................... 17

Email Survey Results ........................ .......................... .......................... .......................... ................ 22

Impact Analysis ........................ .......................... .......................... ........................... .......................... .. 2

Visitor Spending .... ...... ... ...... ... ...... ... ...... ... ...... ... ...... ... ...... ... ... ...... ... ...... ... ...... ... ...... ... ...... ... ...... ... . 28

Kent Fiscal Impacts .......................... .......................... .......................... .......................... ................ 30

Direct, Indirect and Induced Benefits ................................... ........................... ........................... . 33

Stakeholder Interviews ......................... .......................... .......................... .......................... ................ 35

Impacts to Local Businesses ......................... ........................... .......................... .......................... .. 35

Challenges and Opportunities .......................... ........................... .......................... ........................ 36

Relationship to Kent and Place Making.......................................... .......................... .................... 36

Appendix A. Patron Feedback for ShoWare Center Experience ... ... ...... ... ...... ... ...... ... ... ...... ... ...... . 38

Appendix B. Stakeholder Interviews ... ...... ... ...... ... ...... ... ... ...... ... ...... ... ...... ... ...... ... ...... ... ...... ... ...... ... . 46

Interview Responses ......................... .......................... .......................... ........................... ................... 47


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Kent ShoWare Center November 2012 Page vi Economic Impacts

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Kent ShoWare Center November 2012 Page 1 Economic Impacts

INTRODUCTION Background and Purpose

Kent City leadership and stakeholders alike recognize that ShoWare Centercontributes economic and fiscal benefits to the City. However, ancillary spending

of ShoWare Center visitors is not currently captured by survey data and many inthe business community feel that its economic impact is positive. As a publically managed and financed facility, the City is interested in long-term sustainability of the facility and supporting its independence as an enterprise fund, providing events and recreation to the public for a fee that makes the entity self-supporting.

This report quantifies economic benefits associated with its activities. The study provides analytic foundation for City strategies related to ShoWare Center. Thefollowing report provides a detailed evaluation of ShoWare Center s currentconditions, spending impacts and direct fiscal impacts to the City of Kent. Both

quantitative and qualitative findings are based on a series of surveys of ShoWareCenter patrons in addition to interviews with local businesses impacted by ShoWare Center events.

Methods The approach to this work leverages existing data from ShoWare Center,combined with primary data collection in the form of ShoWare Center attendeesurveys and business interviews, along with impact modeling to tell a completestory of the economic impact of ShoWare Center.

Survey research provides ancillary consumer spending data to describe visitor andbusiness activity related to ShoWare Center. The surveys enhance perspectives onactivity before, during and after ShoWare Center events and impacts on a variety of business types and locations. The business survey includes representativesfrom retail, restaurateurs and other businesses types and associations.

The analysis draws from data compiled specifically for this analysis, including: ShoWare Center event data and financial analysis obtained directly from

ShoWare Center operator SMG. Intercept Survey Data from two events held during the summer of 2012.

Email Survey Data obtained through an online survey distributed to 2012ShoWare Center patrons and 2012 Thunderbirds season ticket holders.

Stakeholder interviews with key businesses throughout KentsDowntown, East Hill and industrial neighborhoods.

City of Kent adopted budgets for 2011 and 2012.


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Organization of this Report Current Conditions. An overview of ShoWare Center's current

operations, attendance and event segmentation. Survey Quantitative Results. A review of spending averages obtained

through both survey types. Impact Analysis. A detailed analysis of ShoWare Center's economicimpact in terms of direct spending and fiscal impact to the City of Kent.

Patron and Stakeholder Feedback. A summary of qualitative survey results and key findings from interviews conducted with Kent areabusinesses impacted by ShoWare Center.


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CURRENT CONDITIONS Ground breaking for ShoWare Center took place in 2007 and the facility openedin January of 2009. ShoWare Center is owned by the City of Kent. In addition,the Special Events Center Public Facilities District oversees state sales tax

revenues dedicated to servicing the debt on the construction of ShoWareCenter. Public Facilities Districts (PFDs) are municipal corporations withindependent taxing authority and are taxing districts u nder the State constitution.

The event space and arena management, marketing and development firm SMGcontracts with the City of Kent to operate ShoWare Center. SMG operates allaspects of the facility including booking, tickets sales, food and beverage,maintenance, finance and marketing. Food and Beverage is operated by SavorCatering, the food services division of SMG. SMG manages facilities across thenation and world, including several NFL, NBA and MLB facilities. ShoWare, thefacilitys namesake and official sponsor, is a ticket sales and distributioncompany. Naming rights to the facility were secured for ten years by ShoWare for$3,000,000. Vision One, a ticketing/ecommerce company, is the parent company of ShoWare and a direct competitor of TicketMaster.

Similar events to those held at ShoWare Center can be found at several facilitiesin the region including Tacoma Dome in Tacoma and Comcast Arena in Everett.Concerts held at ShoWare Center are typically the only regional stop on a tour.Exhibit 1 illustrates major venues with comparable facilities and competitivedraw.


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Exhibit 1. Major Competitive Venues,Puget Sound Region, 2012

Source: Community Attributes Inc., 2012.

Venue LocationMax

CapacityDistance From

ShoWare CenterYear-Round

ShoWare Center Kent, WA 6,300 NA

Comcast Arena Everett, WA 10,000 46 milesChristian Faith Center Federal Way, WA 5,000 5 milesEmerald Queen Casino Fife, WA 2,000 10 milesShowbox at the Market Seattle, WA 1,200 15 milesShowbox SODO Seattle, WA 1,500 15 milesParamount Theater Seattle, WA 2,800 20 milesMoore Theater Seattle, WA 1,400 18 milesKeyArena Seattle, WA 15,500 15 milesMcCaw Hall Seattle, WA 3,000 15 miles

WaMu Theater Seattle, WA 7,000 15 milesBenaroya Hall Seattle, WA 2,500 17 milesSnoqualmie Casino - Ballroom Snoqualmie, WA 1,500 30 milesTacoma Dome Tacoma, WA 22,500 17 milesTacoma Dome Theater Tacoma, WA 7,000 17 milesBroadway Center, Tacoma Tacoma, WA 1,200 19 milesPantages Theater, Tacoma Tacoma, WA 1,200 19 miles

Summer SeasonWhite River Amphitheatre Auburn, WA 20,000 15 milesPuyallup Fair Puyallup, WA 10,800 17 miles

Gorge Amphitheatre Quincy, WA 22,000 150 milesMarymoor Park Redmond, WA 5,000 25 milesWoodland Park Zoo Seattle, WA 3,700 25 milesSnoqualmie Casino - Mountain View Plaza Snoqualmie, WA 2,000 30 milesTulalip Amphitheater Tulalip, WA 2,400 54 milesChateau St. Michelle Winery Woodinville, WA 4,300 20 miles


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Revenues and Operations The following provides a brief synopsis of ShoWare Center revenues and incomestatements. Included are exhibits on overall operating income, profits/losses,operating costs and labor. In addition, the following section segments operating income and concession sales by event type.

ShoWare Center has been operating at a deficit since its opening in 2009.Exhibit 2 provides a financial history of ShoWare Center, distinguishing betweenhockey related income and non-hockey related income. Total income in 2011 was$2,075,496 and total costs were $2,532,976, resulting in a net loss of $457,480.

Exhibit 2. Financial History, ShoWare Center, 2009-2012

Source: ShoWare Center, 2012.

2009 Actual 2010 Actual 2011 ActualHockey event income 418,336$ 319,888$ 368,932$Advertising 583,568 568,285 565,720 Club revenue 171,574 97,391 93,221 Suite revenue 203,787 150,735 120,642 Total hockey income 1,377,265 1,136,299 1,148,515

Other income 774,492 895,846 926,981

Total income 2,151,757 2,032,145 2,075,496

Indirect/operating expenses 2,602,213 2,430,157 2,532,976

Net proifit/(loss) (450,456)$ (398,012)$ (457,480)$


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Exhibit 3 provides a detailed summary of operating expenses for ShoWareCenter from for 2009 through 2011. Salaries and wages make up the largest shareof operating expenses. In 2012 salaries and wages totaled $1,154,432,representing 46% of all operating costs. Line items such as operations, repair andmaintenance, and supplies made up a smaller portion of operating expenses allthree years of operation.

Exhibit 3. Operating Expenses Detail, ShoWare Center, 2009-2011


Note: Event labor allocation refers to staffing costs attributable to specific events atShoWare Center.

FY 2009 FY 2010 FY 2011Operating Expenses Actual Actual ActualEmployee Salaries and Wages 1,473,104$ 1,336,101$ 1,371,056$Benefits 221,155$ 241,588$ 279,898$Less: Event Labor Allocations (474,691)$ (407,571)$ (496,521)$Net Employee Wages and Benefits 1,219,568$ 1,170,118$ 1,154,432$Contracted Services 227,366$ 145,405$ 150,925$General and Administrative 257,766$ 215,632$ 248,992$Operations 69,898$ 53,894$ 58,873$Repair & Maintenance 42,019$ 60,951$ 70,654$Supplies 53,926$ 37,131$ 48,870$Insurance 75,653$ 70,725$ 71,513$Utilities 411,615$ 428,278$ 478,617$Other -$ -$ -$SMG Management Fees 244,404$ 248,023$ 250,099$Less: Expenses Allocated -$ -$ -$Total Operating Expenses 2,602,215$ 2,430,157$ 2,532,975$


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Employment associated with ShoWare Center includes two distinct groups, SMGemployees and Thunderbirds employees. SMG employees that work directly atShoWare Center are responsible for the overall operation of the facility.

Thunderbirds employees are only associated with the hockey team and itsoperations in Kent. Exhibit 4 illustrates the total employment for each group. In2011 SMG had 16 full-time employees and was responsible for 85,000 hours of part-time employment directly associated with events. During the same year the

Thunderbirds had 16 full-time employees and employed 20 part -time employeeseach game night (Thunderbirds athletes are not included).

Exhibit 4. Employment, Thunderbirds andShoWare Center, 2011


Exhibit 5 provides a detail of employee labor costs directly associated with SMGand its operation of ShoWare Center. Event labor allocations represent staffing costs attributable to events and totaled $496,521 in 2011. Full time salaries and

wages in 2011 totaled $1,154,432.

Exhibit 5. Employment Expenditures,ShoWare Center, 2011


Employee Type Employees TypeSMG Employees at ShoWare Center 16 FTESMG Part Time Equivalent 85,000 Hours Part Time

Thunderbirds Employees 16 FTEThunderbird Part Time Equivalent 20 Each game night

ExpenditureFiscal Year

2011 ActualEmployee Salaries and Wages 1,371,056$Benefits 279,898$Less: Event Labor Allocations (496,521)$Net Employee Wages and Benefits 1,154,432$


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Event Segmentation and AttendanceExhibits 6 and 7 summarize overall patron attendance at ShoWare Centerduring 2011. Events are categorized by type along with overall attendance, totalnumber of events and percentage of total events (some event days includedmultiple performances). Events taking place on a single day may consist of multiple performances. The Thunderbirds and Other Sporting Events category represented the largest share of patron visits during 2011 (50% of all patrons).Family Entertainment represented the next largest category (21%) withGraduation and Civic (15%), Concerts (10%) and Business/Trade Events (6%)responsible for the remainder of attendance. Business/Trade events representbanquets, trade shows, meetings and consumer/public shows. Total attendance in2011 was 331,355 spread over 138 distinct events.

Exhibit 6. Event Attendance, ShoWare Center, 2011


Exhibit 7. Event Attendance, ShoWare Center, 2011


Event Category Patrons EventsPatrons per

EventPercentage of

All PatronsT-Birds and Other Sporting Events 164,087 60 2,735 50%Family Entertainment 62,438 5 12,488 19%Graduation and Civic 49,331 12 4,111 15%Concerts 34,080 12 2,840 10%Business/Trade 21,419 49 437 6%Total 331,355 138 2,401 100%


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Exhibits 8 and 9 illustrate attendance trends from ShoWare Center s opening in2009 through 2011. The majority of attendance during this time period isattributable to Thunderbirds games and Other Sporting Events. Family Entertainment is the second largest attendance category. Both event categoriesexperienced similar attendance patterns attendance declining from 2009 to 2010and increasing from 2009 to 2012. The highest level attendance at ShoWareCenter is typically during January of each year, the height of the Thunderbirdsseason.

Exhibit 8. Total Event Attendance, ShoWare Center, 2009-2011


Exhibit 9. Event Attendance by Month, ShoWare Center, 2009-2011



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Exhibits 10 and 11 illustrate total event income by event type for 2011. Themajority of income generated by ShoWare Center comes directly from

Thunderbirds and Other Sporting Events, totaling $532,373 in 2011. Concerts were the second largest income generator at $339,634 in 2011.

Exhibit 10. Event Income Table, ShoWare Center, 2011


Exhibit 11. Event Income Graph, ShoWare Center, 2011


Event Category 2011 Income Events Perfomances2011 Percentage

IncomeT-Birds and Other Sporting Event $532,373 60 71 41%Family Entertainment $216,059 5 24 17%Graduation and Civic $72,772 12 24 6%Concerts $339,634 13 12 26%Business/Trade $135,082 49 51 10%Total $1,295,920 139 182 100%


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Exhibit 12 illustrates overall concessions sold segmented into event categories. The largest share of concessions income is derived from Thunderbirds and OtherSporting Events, reflecting the frequency of these events at ShoWare Center.Concerts were the second largest producer of concession income in 2011.

Exhibit 12. Concessions Income by Event Type, ShoWare Center, 2011


Exhibit 13 uses the same segmentation to present operating income at ShoWare.In 2011 Thunderbirds and Other Sporting Events were responsible for the largestshare of net operating income. Rental Revenues and Facility Fees were the largestproportion of revenues for Thunderbirds and Sporting Events ($428,239) with

Total Ancillary Income ($412,859) making up a substantial share as well. Grossticket sales totaled $2.5 million in 2011, most of which goes to event producers;ShoWares share of ticket sales is included in Ticket Rebates. Box Sales and

Ticket Rebates totaled $211,895 in 2011.

Exhibit 13. Direct Event Income Detail by Event Type, ShoWare Center 2011


Event Category

Food andBeverage

Concessions

Food andBeverage

Catering IncomeNovelty Sales

IncomeTotal Ancillary

IncomeT-Birds and Sporting Events 360,024$ 47,065$ 5,769$ 412,859$Family Entertainment 59,873$ (3,819)$ 8,060$ 64,114$Graduation and Civic 29,147$ 6,201$ 100$ 35,448$Concerts 93,245$ 26,960$ 10,537$ 130,743$Business/Trade 13,896$ 95,286$ -$ 109,182$Total 556,186$ 171,693$ 24,466$ 752,345$

Event CategoryBox Sales andTicket Rebates

Rental Revenuesand Facility Fees

BillableServices

Total AncillaryIncome

ServiceExpenses

NetOperating

T-Birds and Sporting Events 24,512$ 428,239$ 82,685$ 412,859$ (415,928)$ 532,366$Family Entertainment 59,904$ 280,565$ 9,679$ 64,114$ (198,202)$ 216,060$Graduation and Civic (605)$ 98,355$ 2,841$ 35,448$ (63,266)$ 72,773$Concerts 127,984$ 213,318$ 5,676$ 130,743$ (138,088)$ 339,633$Business/Trade 101$ 72,588$ 4,443$ 109,182$ (51,233)$ 135,081$Total 211,895$ 1,093,065$ 105,324$ 752,345$ (866,717)$ 1,295,912$


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Patron Origin and Draw The following section provides a geographic analysis of where ShoWare Centerpatrons draw. Patron origins are based on data collected by ShoWare Center withsupplemental analysis by Community Attributes.

Exhibit 14 illustrates the origins of 2011 patrons attending concerts, family events and several miscellaneous sporting events (not including Thunderbirdsgames). A large portion of patrons live in the Kent/Renton/Covington area(20%) while another large portion (21%) live in south King County and NorthPierce County including Federal Way, Bonney Lake, Auburn and Sumner.Concentrations also exist in Tacoma (11%), Seattle south of the Montlake Cut(11%), the Bellevue/Redmond Area (8%) and North Seattle to Mukilteo (5%).

There is also a noticeable concentration of patrons with residences in theOlympia/Lacey area.

Exhibit 15 on the following page illustrates the origins of 2011 Thunderbirdsseason ticketholders. The map depicts season ticket holder by zip code, with thelargest share of season ticket holder located within Kent. Other areas withrelative concentrations of season ticket holder include South King County as a

whole as well as Redmond and Lacey.


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Exhibit 14. Non Thunderbirds Patron Residences, ShoWare Center, 2011


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Exhibit 15. Thunderbirds Season Ticket Holder Residence by Zip Code, ShoWareCenter, 2011


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Exhibit 16 illustrates home residences for all ShoWare Center patrons from 2009to 2011. During the three years analyzed the most common areas of residence

were South King County and Tacoma/Pierce County. The proportion of patronsfrom Kent has steadily declined from a high of 19% in 2009 to a 12% in 2011.

The proportion of patrons from Seattle in 2011 was 13%, similar to that of Kent. The share of Tacoma/Pierce County patrons has increased steadily from 2009 to2011, from 16% to 25%.

Exhibit 16. Distribution of Patron Residences, ShoWare Center, 2009-2011



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EMAIL AND INTERCEPT S URVEY RESULTS Alison Peters Consulting, in conjunction with Community Attributes, conductedtwo intercept surveys during the summer of 2012. In addition, two email surveys

were distributed to ShoWare Center patrons: one to 2012 Thunderbirds Hockey

season ticket holders and one sent to all other 2012 ShoWare Center patrons. Inall, four surveys contributed to this analysis, described as follows:

Email All survey distributed to all non-Thunderbirds 2012 ShoWareCenter patrons

Email Thunderbirds survey distributed to 2012 Thunderbirds seasonticketholders

Graduation Intercept survey conducted at 2012 Kentridge High Schoolgraduation

New Edition Intercept survey conducted at 2012 New Edition concert

Quantitative questions focused on spending patterns within the City of Kent andoutside of ShoWare Center. Four separate surveys were conducted in order toascertain data on the broad spectrum of ShoWare Center patrons. The following sections show the quantitative results related to spending for each individualsurvey.


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Intercept ResultsIn order to capture a representative demographic of ShoWare Center attendeesthe intercept surveys were conducted at two different types of events: theKentridge High School Graduation and the New Edition Concert. The following presents the quantitative results of the intercept surveys. Exhibit 17 shows thetwo intercept survey methods and number of survey participants.

Exhibit 17. Intercept Surveys, ShoWare Center, 2012

Source: Community Attributes Inc., 2012, Alison Peters Consulting, 2012.

Kentridge Graduation

One intercept survey was conducted at the Kentridge High School Graduation in June 2012. Overall attendance at Graduation events totaled 36,905 patrons in2011 spread over eight Graduation events ( Exhibit 18 ). The KentridgeGraduation was attended by approximately 4,100 people and started at 7pm.

Exhibit 18. Graduation Event Attendance, 2011


Exhibit 19 summarizes spending results from the Graduation Intercept Survey.Dining before or after the event was found to be fairly common among patrons

with more patrons (36%) spending money on dining after the event than before(20%). Shopping, lodging and miscellaneous spending were found to be lesscommon. 10% of patrons stated they shopped before or after the event while the

percentages of those spending money on lodging (4%) and miscellaneous items(5%) was even lower.

Survey Method Total ResponsesGraduationIntercept Survey

In person survey at KentridgeHigh school graduation

167

Concert InterceptSurvey

In person survey at NewEdition Concert

171

Event Attendance Events Avg AttendanceGraduation 36,904 8 4,613


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Exhibit 19. Graduation Intercept Survey Spending Results,ShoWare Center, 2012


Exhibit 20 summarizes the percentage of patrons that spent money on dining,shopping, lodging or miscellaneous items as well as the average amount spent.On average, those that did spend money on dining spent a total of $35.38 beforeand/or $43.24 after (referred to in the table as Avg., Those Spending .Shopping was less common with those that did spend money spent $28.18 onaverage. The Average All Patrons column illustrates per patron spending by graduation attendees and includes those that spent nothing. Average spending figures from this column were utilized in estimating spending impacts describedlater in the report.


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Exhibit 20. Spending Averages,Graduation Intercept Survey, 2012

Source: Community Attributes Inc., 2012, Alison Peters

Consulting, 2012.

PercentageSpending

Avg, ThoseSpending

Avg AllPatrons

DiningBefore 20% $35.38 $6.99After 36% $43.24 $15.46Combined 28% $78.62 $22.45

Shopping 10% $28.18 $2.85Lodging 4% $59.88 $2.22Miscellaneous 5% $36.30 $1.82

SpendingCategory


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New Edition Concert

An intercept survey was conducted at the New Edition concert held at ShoWareCenter on June 22, 2012. Concert events in 2011 attracted a total of 34,080patrons spread over 12 concert events ( Exhibit 21 ). The New Edition Concertdrew 2,996 patrons to ShoWare Center and started at 9pm.

Exhibit 21. Concert Event Attendance, 2011


Exhibit 22 summarizes spending results from the New Edition Intercept Survey. The proportion of those surveyed dining before or after the concert was similar

to the proportion of graduation diners. Among the concert survey participants34% responded that they dined before the event and 33% responded that they dined after. Similarly to the graduation survey respondents, shopping, lodging and miscellaneous spending were found to be less common. Six percent of patrons stated they shopped before or after the event while 1% stated they spentmoney on lodging. A slightly higher percentage spent money on miscellaneousitems (13%).

Exhibit 22. Concert Intercept Survey Spending Results,ShoWare Center, 2012


Event Attendance Events Avg AttendanceConcert 34,080 12 2,840


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Exhibit 23 illustrates the percentage of New Edition concert patrons that spentmoney outside of ShoWare Center within Kent along with the average amountthat they spent. On average, those that did spend money on dining spent a totalof $35.10 before and/or $42.88 after. Spending associated with shopping was lesscommon but those that did spent $38.62 on average. The Average All Patronscolumn also illustrates per patron spending by Concert attendees and includesthose that spent nothing. Average spending figures from this column wereutilized in estimating spending impacts described later in the report.

Exhibit 23. Concert Survey,Spending Summary Table, 2012

Source: Community Attributes Inc., 2012. Alison PetersConsulting, 2012.

SpendingPercentageSpending

Avg, ThoseSpending

Avg AllPatrons


Shopping 6% $38.62 $2.23Lodging 1% $59.88 $0.71Miscellaneous 13% $36.71 $4.91


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Email Survey ResultsIn coordination with ShoWare Center staff, Community Attributes distributed anemail survey to all ShoWare Center patrons that attended events in 2012. Aseparate email survey was distributed to Seattle Thunderbirds seasonticketholders during the same time period. The following subsections summarizethe quantitative results from the email surveys. Exhibit 24 summarizes the twoemail survey types and number of survey participants.

Exhibit 24. Email Surveys, ShoWare Center, 2012


Survey Method Total ResponsesEmail All Survey emailed to 2012 non-

Thunderbird ShoWare patrons318

Email Thunderbird Survey emailed to 2012Thunderbird season ticketholders

782


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Email Survey to 2012 Event Patrons (not including Thunderbirds patrons)

Exhibit 25 summarizes spending results from the email survey distributed to all2012 patrons not including Thunderbirds season ticket holders. The survey results in the dining category differed from the intercept survey results as dining out was more common among respondents. 78% of respondents stated they spent money on dining before events while 47% of respondents stated they spentmoney on dining after events. Spending on lodging and entertainment outside of ShoWare Center was found to be less frequent. Shopping outside of ShoWareCenter was not calculated for this survey, but shopping for souvenirs at the event

was found to be fairly common.

Exhibit 25. Email All Survey Spending Results,ShoWare Center, 2012



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Exhibit 26 illustrates the percentage of those Email All survey participants thatspent money outside of ShoWare Center and within Kent. Also provided is theaverage amount spent of those that did spend money outside of ShoWare Center.Of those that did spend money on dining, the average spent before an event was$26.45 and the average spent after was $24.45. The exhibit illustrates per patronspending by Email All survey respondents including those that spent nothing.

Average spending figures from this column were utilized in estimating spending impacts described later in the report.

Exhibit 26. Email All Survey,Spending Summary Table, 2012


PercentageSpending

Avg, ThoseSpending

Avg AllPatrons


Shopping NA NA NALodging 4% $93.11 $3.34Entertainment

Before 6% $26.46 $1.64After 9% $35.12 $3.06

SpendingCategory


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Email Survey to 2012 Thunderbirds Season Ticketholders

Exhibit 27 summarizes spending results from the email survey distributed to all2012 Thunderbirds season ticketholders. Dining out was common among respondents with 85% stating they spent money on dining before and 38%spending after. The noticeable difference between the Email All Survey and the

Thunderbirds Email survey is the larger percentage of patrons dining before thegame. Spending on lodging and entertainment outside of ShoWare Center wasfound to be low. Almost half (46%) of survey respondents stated that they spendmoney on souvenirs at the event.

Exhibit 27. Thunderbirds Email Survey Spending Results,ShoWare Center, 2012



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Exhibit 28 illustrates the percentage of Thunderbirds email survey patrons thatspent money outside of ShoWare Center within Kent along with spending averages. Average spending among those that did spend money on dining was$26.26 before the event and $22.03 after. The Average All Patrons columnillustrates per patron spending by Thunderbirds email survey respondentsincluding those that spent nothing. Average spending amounts from the exhibit

were utilized in calculating total spending by event type.

Exhibit 28. Thunderbirds Email Survey,Spending Summary Table, 2012


PercentageSpending

Avg, ThoseSpending

Avg AllPatrons


Shopping NA NA NALodging 2% $54.77 $1.34Entertainment

Before 5% $19.30 $0.87

After 5% $19.95 $0.93

SpendingCategory


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IMPACT ANALYSIS The following section provides a detailed analysis of the economic impactsShoWare Center has on both City of Kents economy and the direct fiscalimpacts it has on the City of Kents re venues. Exhibit 29 maps ShoWare

Centers impact and depicts revenue sources and impacts.Exhibit 29. ShoWare Center Impacts



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Visitor Spending Visitor spending estimates and overall impacts are based on survey data collectedduring the summer of 2012 (see Email and Intercept Survey Quantitative Resultssection). Impacts are also based on attendance and revenue data provided by ShoWare Center. Both sources provided the foundation for estimating direct andindirect financial impact generated by ShoWare Center. Financial impacts includedirect and induced fiscal impacts for the City of Kent.

Exhibit 30 illustrates the average per patron spending used to calculate spending outside ShoWare Center (spending directly related to ShoWare Center events).Events are segmented into five categories based on the attendance data shownearlier in the report. Exhibit 31 illustrates the number of responses given by survey respondents organized by each survey type completed.

Exhibit 30. Patron Average Spending by Event TypeOutside ShoWare Center, 2011

Source: Community Attributes Inc., 2012., Allison Peters Consulting, 2012.

Exhibit 31. Survey Responses by Survey Type andSpending Category, ShoWare Center, 2011


Event Category Dining Shopping Lodging Entertainment TotalT-Birds and Other Sporting Events/1 $30.78 $2.54 $1.34 $1.80 $36.46Family Entertainment/2 $32.29 $2.85 $3.34 $4.71 $43.19Graduation and Civic $22.45 $2.85 $2.22 $1.82 $29.34Concerts $24.20 $2.23 $0.71 $4.91 $32.06Business/Trade/3 $32.29 $2.54 $3.34 $4.71 $42.88Weighted Average $29.25 $2.60 $1.60 $3.08 $36.63

Notes:

1 Assumes spending at T-Birds games i s s ame at other s porting events2 Utilizes same per patron spending values as Graduation and Civic Events

3 Utilizes All Events Email Survey averages

Spending Category

Graduation Concert Merged All Events T-Birds

Dining 167 173 340 291 689Shopping 168 173 341 291 725Lodging 162 168 330 279 694Entertainment/Miscellaneous 160 172 NA 275 689

Intercept EmailSurvey Type


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ShoWare Center attendance in 2011 was used to calculate spending by patronsoutside of ShoWare Center. The averages calculated for each event type andspending type were multiplied by the attendance numbers shown in Exhibit 32 .

Exhibit 32. Patron Attendance by Event Category, ShoWare Center, 2011


Exhibit 33 illustrates total patron spending outside ShoWare Center in 2011segmented into event types and spending types. Total patron spending is basedon the averages shown in Exhibit 30 as well as overall attendance calculated foreach event type provided in Exhibit 32 . Thunderbirds and Other Sporting Events result in the largest amount of spending outside ShoWare Center, totaling an estimated $5,982,684 in 2011. Total spending from all events is estimated at$12,137,440 in 2011.

Exhibit 33. Total Patron Spending Outside ShoWare Center, 2011


Event Category Patrons EventsPatrons per

Event PercentageT-Birds and Other Sporting Events 164,087 60 2,735 50%Family Entertainment 62,438 5 12,488 19%Graduation and Civic 49,331 12 4,111 15%Concerts 34,080 12 2,840 10%Business/Trade 21,419 49 437 6%Total 331,355 138 2,401 100%

Event Category Dining Shopping Lodging Entertainment TotalT-Birds and Other Sporting Events $5,050,643 $416,362 $220,155 $295,523 $5,982,684Family Entertainment $2,016,364 $178,038 $208,381 $293,869 $2,696,653Graduation and Civic $1,107,579 $140,664 $109,406 $89,542 $1,447,191Concerts $824,896 $76,085 $24,294 $167,291 $1,092,567Business/Trade $691,702 $54,350 $71,484 $100,810 $918,346Total $9,691,185 $865,499 $633,720 $947,035 $12,137,440


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Kent Fiscal ImpactsFiscal impacts associated with ShoWare Center are related to a variety of sourcesincluding spending at ShoWare Center, ticket sales and patron spending outsideof ShoWare Center and within Kent. Impacts from the following spending types

were calculated for ShoWare Center.

Sales tax revenues patron spending times sales tax rate Hotel/motel tax revenues Restaurant and bar taxes Ticket sales (admissions tax)

Exhibit 34 illustrates the sales tax rate and distribution for the City of Kent. Thetax is collected for sales on food, beverages and souvenirs for purchases made

within ShoWare Center and sales made at surrounding shops and restaurants in

Kent. Exhibit 35 illustrates other applicable tax rates which consist of ahotel/motel tax, a Lodging/Convention Center tax and an admission tax.

Exhibit 34. Sales Tax Rate and Distribution,City of Kent, 2011

Source: City of Kent, Washington Office of FinancialManagement, 2012.

Exhibit 35. Other Tax Rates, City of Kent, 2011

Source: City of Kent, Washington Office of FinancialManagement, 2012.

9.5% Rate Structure Distribution PercentState 6.50% 68.4%RTA 0.90% 9.5%Criminal Justice 0.10% 1.1%Metro 0.80% 8.4%

City of Kent 0.85% 8.9%King County 0.35% 3.7%Total 9.50% 100.0%

Sales Tax Distribution of .05% Stadium TaxState 100.0%

Tax RateSpecial Hotel/Motel Tax 1.0%Lodging/Convention Center Tax 2.8%


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Estimates of statewide and City of Kent fiscal impacts are based on theaforementioned tax rates in addition to the average spending rates by spending type and event type. Exhibit 36 illustrates the statewide fiscal impact of patronspending outside of ShoWare Center. Exhibit 37 illustrates the City of Kentsshare of those fiscal impacts. Total statewide impacts of patron spending outsideShoWare Center in 2011 are estimated at $1,177,138. Fiscal impacts for the City of Kent are estimated at $127,250 in 2011.

Exhibit 36. Estimated Statewide Fiscal Revenues (includes Local, County andState), Patron Spending Outside ShoWare Center, 2011


Exhibit 37. City of Kent Fiscal Revenues,Patron Spending Outside ShoWare Center, 2011


Event Category Dining Shopping Lodging Entertainment TotalT-Birds and Other Sporting Events $479,811 $39,554 $29,281 $28,075 $576,721Family Entertainment $191,555 $16,914 $27,715 $27,918 $264,100Graduation and Civic $105,220 $13,363 $14,551 $8,506 $141,641Concerts $78,365 $7,228 $3,231 $15,893 $104,717Business/Trade $65,712 $5,163 $9,507 $9,577 $89,959Total $920,663 $82,222 $84,285 $89,968 $1,177,138

Dining Shopping Lodging Entertainment TotalT-Birds and Other Sporting Events $42,930 $3,539 $10,237 $2,512 $59,219Family Entertainment $17,139 $1,513 $9,690 $2,498 $30,840Graduation and Civic $9,414 $1,196 $5,087 $761 $16,459Concerts $7,012 $647 $1,130 $1,422 $10,210Business/Trade $5,879 $462 $3,324 $857 $10,522Total $82,375 $7,357 $29,468 $8,050 $127,250


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In addition to spending outside of ShoWare Center by patrons, SMG, whichoperates ShoWare Center, collects sales and Admissions taxes on sales insideShoWare Center. Exhibit 38 shows the sales and admissions taxes collected by SMG from 2009 to 2011. Thunderbirds Hockey also collects admissions taxes

which are described in the next section of the impa ct analysis.

Exhibit 38. Sales and AdmissionsTaxes Paid, ShoWare Center, 2009 - 2011


Exhibit 39 summarizes Thunderbirds operations at ShoWare Center in 2011.Gross ticket sales totaled $2,520,000 including $126,000 collected in admissionstax in 2011. The Thunderbirds estimate total expenditures in the Kent to havebeen $930,000 in 2011 and payroll equaled $1,391,000 during the same year.

Exhibit 39. Thunderbirds Revenues/Expenditures,City of Kent, 2011

Source: Seattle Thunderbirds Hockey, 2012.

Tax 2009 2010 2011Sales $175,128 $165,316 $184,535Admissions $119,558 $105,954 $133,249

Revenue/Expenditure AmountGross Ticket Sales $2,394,000Admission Tax Collected $126,000

Total $2,520,000

Payroll $1,391,000Kent Area Expenditures/1 $930,000


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Direct, Indirect and Induced Benefits Exhibit 40 summarizes total revenues by revenue category, including ticket salesand rental revenues for SMG and the Thunderbirds, ShoWare Center concessionsales and event related spending outside of ShoWare. Total fiscal benefits arecalculated based on applicable tax rates provided by the state and City of Kent. In2011 it is estimated that there was a total of $16,606,900 in direct revenues (orspending) associated with ShoWare Center. The total fiscal benefits, thoseaccruing to the state, county and City of Kent, totaled $1,620,900. The City of Kents share of the direct fiscal benefits was $ 403,000.

Exhibit 40 includes the indirect and induced multiplier output based on theImplan Input/Output model ( Exhibit 41 ). The multiplier used (1.68) is a

weighted average of the segments shown. Total direct, indirect and inducedspending in 2011 is estimated at $25,126,200 assuming 75% of indirect andinduced impacts are captured within Kent. The total fiscal impact of thisspending is estimated at $2,452,400, including taxes gathered by other

Washington State jurisdictions .

Exhibit 40. Business Incomes and Fiscal Impact Analysis,ShoWare Center, 2011


SMG Ticket Sales and Revenues/2 $1,323,200 $133,200 $133,200Thunderbirds Gross Ticket Sales $2,394,000 $126,000 $126,000ShoWare Sales (concessions)/3 $752,300 $184,500 $16,500Event related Spending

Dining $9,691,200 $920,700 $82,400Shopping $865,500 $82,200 $7,400Lodging $633,700 $84,300 $29,500Entertainment $947,000 $90,000 $8,000Subtotal $12,137,400 $1,177,200 $127,300

Subtotal of ShoWare direct revenues $16,606,900 $1,620,900 $403,000

Indirect & Induced revenues/5 $8,519,300 $831,500 $206,700

Total Direct, Indirect, and Induced $25,126,200 $2,452,400 $609,700

Notes1 Benefits to the State, County and City of Kent 2 A djusted gross income less ancillary income3 Includes taxable retail sales made at ShoWare Center 4 Based on Implan Input/ouput model, King County, 2010.5 Assumed that 75% of Indirect and induced revenues are captured in Kent

Total Fiscal Benefits/1Revenues Kent Fiscal Benefits


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Exhibit 41. Indirect and Induced Multipliers by Impact Segment,Implan Model, 2012

Source: MIG Inc., 2010.

Exhibit 42 details the fiscal impacts associated with ShoWare Center for the City of Kent and provides a combined total for direct and indirect fiscal benefits for2011. In 2011, total fiscal benefits generated by ShoWare Center for the City of Kent are estimated at $609,700.

The fiscal impact estimates include taxes collected by the City from ShoWareCenter and Thunderbirds Hockey (sales tax and admissions tax at ShoWareCenter), taxes collected from event related spending outside of ShoWare Centerand indirect/induced impacts based on the previously described multipliercalculation ( Exhibit 40 ).

Exhibit 42. City of Kent Fiscal Impact Summary,ShoWare Center, 2011

Source: Community Attributes Inc., 2012, Allison Peters Consulting, 2012.

IndustryCode Industry Description Output Assigned

OutputMultiplier

327 Retail Stores - Clothing and clothing accessories Shopping 1.73328 Retail Stores - Sporting goods, hobby, book and music Shopping 1.66329 Retail Stores - General merchandise Shopping 1.58402 Performing arts companies ShoWare 1.85403 Spectator sports companies ShoWare 1.69409 Amusement parks, arcades, and gambling industries Entertainment 1.60410 Other amusement and recreation industries Entertainment 1.60411 Hotels and motels, including casino hotels Lodging 1.62413 Food services and drinking places Dining 1.62

Regional Multiplier 1.68

Direct BenefitsAdmissions tax $259,200Sales tax from sales at ShoWare $16,500ShoWare Sales Impacts $275,700

Other Patron Spending Impacts $127,300Total Direct Benefits $403,000

Indirect and Induced Benefits $206,700

Total Kent Fiscal Benefits $609,700


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S TAKEHOLDER INTERVIEWS This section of the report synthesizes the perspective of stakeholders interviewedduring the summer of 2012. Perspectives on the impacts of ShoWare Center tosurrounding businesses and the City of Kent in general provide qualitative

feedback and enrich the understanding of how ShoWare Center functions withinthe economy of Kent. Appendix B provides a detailed compilation of thestakeholder comments summarized in this section.

Impacts to Local BusinessesRestaurants in particular report increased revenues. Restaurants located nearShoWare Center report that events directly increase their revenues, in terms of both total number of customers and per-person spending. Not all events have thesame impact, and it was widely reported that these benefits are more p ronouncedfor sporting events, and are more likely before, rather than after an event.

On concerts and sports events we will see upwards of 50 and 75% increase.

Non-retail businesses use ShoWare Center events for businessdevelopment and employee appreciation. Many companies, especially

Thunderbirds sponsors, report that they frequently give tickets away to existing or potential clients. Business owners report that this benefit helps drive sales andis a regular feature of their sales plans. Businesses also report using tickets toShoWare events for employee appreciation and fringe benefits, noting thatyounger employees especially enjoy this perk.

We give away the tickets and our employees use them. That is good for business.

Increased visibility for business located near ShoWare Center. ShoWareCenter events result in increased visibility of all businesses in the surrounding area. Stakeholders generally feel that patrons attending events are exposed totheir businesses in general, and that ShoWare Center events serve as an importantsoft marketing tool.

More traffic downtown is good for exposure. This means people seeing my signs at my downtown office. The foot and vehicle traffic provides good exposure.

Businesses have positive associations with ShoWare Center. Many businessinterviewed do not measure sales and revenues in a way that can attribute booststo ShoWare Center. However, stakeholders report general positive association

with ShoWare Center. They attribute increases in profits to ShoWare events andin general assign positive attributes to proximity to the venue.


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Im not sure what the revenue impacts have been for our business, but overall it hbeen a positive experience for our business.

Challenges and OpportunitiesParking is an issue for surrounding businesses. The impacts of parking onsurrounding businesses in not always perceived positively. Some feedback statedthat ShoWare Center patrons will come and dine at a restaurant before and eventand walk to the facility from the restaurant, leaving their cars behind and making it difficult for customers later in the evening to find parking spots. Policeassistance to manage parking was requested.

Events destroy parking, Parking is a limited premium as is, and pe ople attending ShoWare Center come in for a beer or an appetizer and then they leave their car an

prevent other customers.

Event related traffic can be problematic. Traffic, especially traffic going eastand west, can become clogged on big event days. Stakeholders report this less asa severe negative impact on their business and rather as a minor inconvenience.

H aving big events one after another caused heavier traffic in the area. But this didreally impact us heavily. It was minimal

There is untapped potential for cross -collaboration with local businesses.Many businesses said they do not partner or sponsor with ShoWare Center in any

way, but expressed interest in learning new ways to cross -collaborate. There is a

desire to see collaboration and marketing of the entire area as a whole.Trying to find a way to promote ShoWare Center and Downtown Kent is a top

priority. There is just a wonderful product and we just need to figure out how to promote it.

Relationship to Kent and Place MakingShoWare Center compliments its neighbors well, especially Kent Station,and serves as an anchor institution. Stakeholders, both representatives of business in Kent Station and outside the general area agree that ShoWare Center

serves as an anchor institution to its area and is helping to drive economicdevelopment. The events drive people into the area to shop, dine and seek professional services. The retail opportunities in Kent Station provide a fullexperience for event attendees. One stakeholder who works in real estatedevelopment credited ShoWare Center as being a major factor in a recent landdeal.


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As Kent keeps getting nicer, our employees and customers want to do things in KIts nice. Our ability to move in that area is improved the nicer it is and more reasons we have to go down there.

Stakeholders feel generally aware of events at ShoWare Center. Stakeholders

are generally aware of the type and frequency of events at ShoWare Center,reflecting that marketing and event promotion efforts are effective. Somestakeholders, however, feel that a holistic tourism and marketing program isnecessary to promoting Kent as a destination.

If were ever going to go to the next level we have to actually promote it. Tourism grow through an actual marketing pr ogram, thats where we are right now.

The Thunderbirds are vital to the success of ShoWare Center and a majorbenefit to surrounding businesses. The Thunderbirds are perceived to be the

anchor tenants of the ShoWare Center. Restaurants and retail respect andunderstand the positive impacts this relationship has for them, and desire tomaintain the Thunderbirds as a continual local draw and opportunity for businessdevelopment through the use of sponsor tickets.

Thunderbirds games provide the most positive impact.

Stakeholders find the facility clean and well-maintained. Stakeholderscompliment the facility for its design, maintenance and describe attending eventsthere as a pleasurable experience. These sentiments echo findings from patronsurveys. It is also noted as being particularly well located for access to theHighways, and for transit.

Its an awesome and great facility. I am a big advocate. Its nice to have a local facility like this so we dont have to go to Tacoma or Seattle. Its clean and nice.


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APPENDIX A. P ATRON FEEDBACK FOR S HO WARE EXPERIENCE The following section provides a synopsis of qualitative information gatheredfrom the four surveys during the summer of 2012.

Intercept Surveys

Exhibit 43 shows the origins of Intercept Survey participants. Nearly 70 percentof graduation attendees live within the city limits (43%) or within 10 miles of Kent (26%). The New Edition concert drew from a noticeably differentgeography in that they arrived from outside the immediate area (60% said they

were not from Kent or within 10 miles). (Alison Peters Consulting InterceptSurvey Report, 2012).

Exhibit 43. Attendee Origin,Intercept Surveys, 2012

Source: Alison Peters Consulting, 2012.


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Exhibit 44 illustrates satisfaction levels of Intercept Survey participants.Satisfaction with ShoWare Center is very high among both graduation attendees(81% very satisfied) and concert goers (76% very satisfied). Satisfaction increasesamong local Kent residents (85% for residents of Kent). Dissatisfied patronsrepresented a small percentage of patrons surveyed (4%).

Exhibit 44. Attendee Satisfaction, Intercept Surveys, 2012


Exhibit 45 illustrates ShoWare Center attributes mentioned by attendeessurveyed. There was a strong degree of consensus from attendees at both eventsaround the top two answers provided overall: Location is convenient (mentionedby 36% overall) and Clean/New (mentioned by 34% overall).

Exhibit 45. Best ShoWare Center Attributes, Intercept Surveys, 2012


Level of Satisfaction Total City of KentSurrounding

AreasOut of Town Graduation Concert

Very satisfied 78% 85% 80% 73% 81% 76%Somewhat satisfied 17% 13% 14% 22% 13% 21%Somewhat dissatisfied 2% 2% 3% 2% 4% 1%Very dissatisfied 2% 0% 2% 3% 2% 2%

ShoWare Attribute Overall Graduation ConcertLocation is convenient 36% 39% 33%Clean, new 34% 30% 38%Parking is convenient, free 32% 25% 38%General venue is good 25% 13% 36%Good views from all seats 19% 14% 23%Seating, aisles are comfortable 15% 13% 16%Friendly staff 9% 1% 16%Concessions 8% 0% 14%Restrooms 7% 1% 12%Sound system 5% 0% 10%Venue is built green 4% 0% 7%Luxury boxes 3% 0% 5%Other 19% 28% 12%


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Exhibit 46 illustrates desired event types by ShoWare Center patrons. The mostdesirable events mentioned by patrons were music events (62% of interceptsurvey respondents). Sports events (35%), family events (17%) and theater events(11%) were other event types mentioned.

Exhibit 46. Desired Event Type, Intercept Survey, 2012


Exhibit 47 cross tabulates event preferences with several subgroups of interceptsurvey respondents. Of note is that a majority of every subgroup has a preferencefor more musical acts/concerts at ShoWare Center. Second, those who dined outprior to and during the concert were more likely to indicate an interest in sportsevents at ShoWare Center. They were also slightly less likely to indicate aninterest in other concerts. The same demographic group (interested in sporting events specifically) is more likely to live in Kent. Finally, Kent residents weretwice as likely to mention an interest in family-friendly shows at ShoWare Center(33% vs. 17% overall). Even residents within 10 miles did not see theconvenience or value-add in having more family-friendly shows in Kent. (AlisonPeters Consulting, 2012)

Exhibit 47. Desired Event Type Cross Tabulation, Intercept Survey, 2012


Event Total KentSurrounding

AreasOut of Town

Dined OutBefore Event

PurchasedConcessions

Dined OutAfter Event

Music events 62% 67% 67% 59% 55% 54% 63%Sports events 35% 42% 30% 38% 50% 40% 34%Family events 17% 33% 15% 14% 20% 19% 19%Theater events 11% 8% 19% 9% 15% 15% 19%


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Email Surveys

The following section illustrates quantitative results from the email surveys sentto general 2012 patrons in addition to 2012 Thunderbirds season tickets holders.

Exhibits 48 and 49 illustrate attendance frequency by those surveyed. Thepercentage of events attended is also provided for survey types. Thunderbirdsseason ticket holders were, expectedly, more frequent visitors of ShoWare Centerthan Email All survey respondents. 72% of Email All respondents reportedattending events 1 to 2 times per year. Among events attended, Email Allrespondents frequented concerts and non-musical performances the most.

Exhibit 48. ShoWare Center Attendance, Email All Survey, 2012


Exhibit 49. ShoWare Center Attendance, Thunderbirds Email Survey, 2012



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Exhibits 50 and 51 illustrate the frequency that both email survey respondentgroups dine and shop when visiting ShoWare Center. Both survey groupsindicated that dining was a much more likely activity than shopping. 53% of

Email respondents and 57% of Thunderbirds respondents stated they dinedUsually . Comparatively, 9% of Email respondents and 10% of Thund erbirdsrespondents stated they shopped Usually .

Exhibit 50. ShoWare Center Dining and Shopping Frequency,Email All Survey, 2012


Exhibit 51. ShoWare Center Dining and Shopping Frequency,Thunderbirds Email Survey, 2012



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Exhibits 52 and 53 illustrate the locations where both email survey groupsspend money before or after attending an event at ShoWare Center. Kent Station

was the predominant location mentioned. Among Email All survey respondents,54% stated they spend money at Kent Station and among Thunder Email survey respondents 58% stated they spent money at Kent Station.

Exhibit 52. Dining and Shopping Location,Email All Survey, 2012


Exhibit 53. Dining and Shopping Location,Thunderbirds Email Survey, 2012



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Exhibits 54 and 55 illustrate the responses provided by Email survey participants concerning amenities and experience. Patrons were asked whatamenities they wished to see added to the City of Kent. Participants were giventhree options: public spaces, cultural arts or entertainment, each with a detaileddescription. Distribution among the categories was even among both surveys

with entertainment being the most commonly selected for both.

Patrons were also asked what would enhance the overall experience of events atShoWare Center and in Kent. Enhance the Event was the most common answerfor both survey types, with Enhance Nearby Restaurants and Enhance Nearby

Amenities also mentioned frequently.

Exhibit 54. Amenities and Experience,Email All Survey, 2012


Exhibit 55. Amenities and Experience,Email All Survey, 2012



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Exhibits 56 and 57 illustrate patron household income data for both emailsurveys. A greater percentage of Thunderbirds respondents have a householdincome $100,000 or more (40%). Email All respondents, representing a mix of event types, had a smaller percentage with household income greater than$100,000 (32%), with a greater proportion of respondents in the $60,000 to$99,000 category or less than $60,000 category.

Exhibit 56. Household Income,Email All Survey, 2012


Exhibit 57. Household Income,

Thunderbirds Email Survey, 2012



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APPENDIX B. S TAKEHOLDER INTERVIEWS Over the summer of 2012 Community Attributes interviewed a total of eighteenKent based businesses. Community Attributes identified businesses believed tobe impacted or directly associated with ShoWare Center events. Questions

focused on overall impacts in addition to the following: Goods and services offered Dependence on ShoWare Center events Revenues and expenses Marketing efforts currently underway Needs from the City of Kent

Exhibit 58 provides a list of businesses interviewed along with their applicableindustry and location.

Exhibit 58. Businesses and Organizations Interviewed, City of Kent, 2012


Business Industry Location1 Cave Man Kitchen Dine in and Take-Out 807 West Valley Highway2 Red's Wine Bar Dining and Bar Kent Station3 Ram Restaurant & Brewery Dining and Brewery Kent Station4 Kent Bowl Entertainment 1234 Central Avenue North5 Kent Valley Ice Center Entertainment 6015 South 240th6 Thunderbirds Entertainment Kent Station7 Holiday Inn Hotel (Thunderbird Sponsor) 22318 84th Avenue South8 Valley Bank Kent Chamber & Downtown Bank 124 4th Avenue South9 Tarragon Property Management Kent Station Property Manager Kent Station10 Kent Valley Motel Motel 743 Central Avenue North11 World Wide Distributors Retail Distributor 8211 South 194th12 Gleason & Co. Real Estate 317 W Meeker St13 Cal's Classic American Restaurant Kent Station14 El No que No Restaurant Historic Downtown15 Airways Brewing Company Restaurant and Brewery South 196th Street16 Smi th Brother's Farms Offi ci al Mi lk Suppl ier (Thunderbi rd Sponsor) 27441 68th Avenue South17 Lincoln Moving & Storage Official Moving Company (Thunderbird Sponsor) 8420 S. 190th Street18 Great American Casino Entertainment (Thunderbird Sponsor) 20500 108th Ave. SE


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INTERVIEW RESPONSES The following compilation of stakeholder feedback provides a detailed look atinterview responses. Responses have been categorized by themes and have beenedited for brevity and clarity. In order to provide context, certain responses

include the stakeholders industry t ype in parentheses.

General CommentsSupportive, Positive Statements

In addition to quantitative impacts, stakeholders described qualitative impacts totheir businesses and the area. Stakeholders described impacts on jobs, increasedrestaurant visits, community building and employee

Strongly Supportive

Just the fact that hockey team is there is positive. We give away our tickets and theemployees use them. That is good for our business.

It creates jobs, obviously. Not the highest paying jobs, but theyre good, regular income. Ive seen people lined out the doors of restaurants. We love ShoWare Center. A huge positive impact. The graduation events were fun and very busy, especially if it was sunny. (Restaura Thunderbirds games are great family events and the people that attend are great pe

to be in front of. The demographics of the events are good. Im not sure what the revenue impacts have been on our business, but overall it has been a positive exper

for our business.(Sponsor) I feel that it has had a great impact on Kent Station.

More traffic downtown is always good for exposure. This means people seeing myI have at my downtown office. The more people the merrier. The foot and vehicle t provides good exposure.(Real Estate)

Its definitely a positive overall. Its great to have a community connection. The community connection with ShoWare Center is a positive.(Entertainment)

Mixed Reaction

ShoWare Center itself hasnt affected me personally, but it stands to reason that it hasnt hurt our business.

Right before an event we get busy and then business slows and becomes normal. Wbusy after events as well. Because of our location on the other side of Highway 16are less affected by the arena.

Its a good thing. Enough events do impact us (positively) making it a positive for business.

I dont see any overall impact on our business. Most of our clients are regulars, no has ever told me there are coming or going to a show.(Entertainment)

Its been positive and negative. It draws people from outside the area, or from the surrounding neighborhoods. There is more traffic, more potential first time guests.


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hit or miss. Some crowds are m ore about getting food and drink before, some arent.Families dont make a night of it like sports fans do. Sports fans (hockey and linge

football) are a better boon for us than families . (Restaurant) I would characterize it as favorable. It brings people into the area. It supports the lo

population and I believe theres a trickle down affect, particularly from the

Thunderbirds games and their relationship with us. I believe more is always better.There is trickle down from any event at ShoWare Center. No Change on event nighin foot traffic or spending.(Entertainment)

Concerns and Negative Statements

Negative feedback was generally limited to parking and traffic. Severalstakeholders found parking during events to be impactful on their business. Inaddition, traffic before and after events were also a concern. One stakeholderstated that family events brought parking issues but little positive impacts to theirbusiness. Another stakeholder mentioned way finding a visibility up as an issue.

Ladies nights at ShoWare Center bring in a different type of group, not always a positive thing.

The debt service on it is taking away about $3.5 million from the capital budget. Alevy and sales tax increase for roads and parks.

The City promised police support for parking during events. There is police suppor James.

3,500 to 4,000 tickets sold is a tipping point. More than that creates parking impacand movie theatre suffers. Their customers turn back from parkers.

East west traffic is a nightmare during events. Why do they have to clock the left turn lane into the parking lot for events?

Events destroy parking. Parking is a limited premium as is, and people attending ShoWare Center come in for a beer or an appetizer and then they leave their car an

preve nt other customers. If its Disney on ice, we dont get the positive impact from people coming out we just get the negative impact of parking. Family events have negative impact. Family events hurt our business.

Graduations, having them one after another caused heavier traffic in the area. But didnt really impact us heavily. It was minimal.

ShoWare Center definitely needs more parking It is not very visible, and kind of hard to find (way finding issues).

Restaurant and Entertainment Quantitative ImpactsFinancial impacts to those businesses interviewed varied depending on theirlocation and type. Restaurants located nearby in Kent Station felt the greatestimpact, and restaurants located within Kent but farther from ShoWare Centeralso experienced impacts. Non-restaurant businesses were less affected. Forexample, one restaurant interviewed cited a 20% increase in foot traffic onShoWare Center event nights, while another cited an increase in spending of $14per guest to $15.50 per guest.


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Guest check average on a normal day is $14 per guest. On event days it goes up to$15.50. Any event at ShoWare Center affects us, unless its a small event like luncheon. On a Monday night, for example, we experienced a bump of $2,000 in sales. On a Hockey night, it can be considerably more. An extra 200 people can bran extra $4,000 and $5,000.(Restaurant)

Kent Station is doing fine. Restaurants did really well. The theatre has also done well... The occupancy level never dipped below 93%. Were at 96% leased and 94%open for business.

The typical customer spends $35.00 per visit. This varies depending on what they want. I estimate that there is a 20% increase, sometimes more or less depending onevent.(Restaurant)

On average its probably $100. There is no change on nights of events on our businWe dont have larger crowds or anything. This is due to the proximity of ShoWare Center to our location. We are located on the other side of a hill from the arena.(Entertainment)

Depending on the size of the group and the time of day, our typical customer spend

$25-$30 per visit. Hockey and sports events draw more customers that spend less alikely bar - hopping before the event. Concerts tend to bring in full dinners whetherits before or after the event. It depends on the event due to the fact that were 21 aover only. For concerts, it depends on the type of crowd it draws. Sports events bri

good crowds for us. Family events bring less foot traffic.(Restaurant) Earlier in the week (Mon, Tue, Wed) we are slower so the impact is greater wh

there are events (events that draw crowds for us) On a Friday/Saturday night (busy nights) we will see a 20% to 30% increase in

people On Tuesdays and Wednesdays (slower nights) we will see up to a 50% increase

people.

Average guest check is about $16. On concerts and sports events we will see upwaof 50 and 75% increase.(Restaurant)

Non Retail Business ImpactsSeveral non-retail businesses were interviewed. Impacts from these businesses

were less pronounced and did not include direct financial gains. Generally,businesses of this type viewed ShoWare Center in a positive light. Onestakeholder described how the ShoWare Center drastically improved networking opportunities for their business and how it directly impacted company.

The impact has been that I have met people through it and it has directly impacted by providing opportunities for networking. Deals have resulted directly from ShoWare Center. Networking at ShoWare Center has been the most impactful to business.

Land deal Im working on next toShoWare Center couldnt have been pulled off without ShoWare Center Arena. It had a direct impact on the deal. The property,which is under contract, is a stones throw from the arena. (Real Estate)


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Our salesmen when they have appointments, usually with people in the South End,necessarily Seattle Clients, but Federal Way to Renton clients, they will take the tickets to an upcoming game to a customer. It helps them remember us and brings business. That has been an effective marketing tool. We try to give them to customwe are wooing or as an appre ciation. Its usually our younger clients. I think it is a

good chance that they havent been to a game before so this is a game chance to brthem to Kent. People like going to the game. You watch up and coming stars. It enhances salesmans chances to m ake good and meaningful contact with potential customers.(Sponsor)

Hotel ImpactsCommunity Attributes interviewed two local hotels. Impacts from events werenoticeable at one of the hotels interviewed. Patron stays brought room nights,but the most noticeable impacts cited were from visiting performers and hockey teams that booked rooms during their stay.

The impacts are positive. We get a good amount of business from ShoWare CenterWe get consistent business from it year over year. From September to May,when were slow, events help us. Concerts have less of an impact because they draw more locaWe get leisure people for concerts, etc We get business people for business eventsand families for other types of events.

Financial impacts vary greatly by season. Our average room rate for the year is $90$92 a room. Our typical stay on average is 2 nights. Hockey doesnt result in mucha change in foot traffic. Its really good year over year for us.

The following surmises overall impacts in 2011. Toy Story cast: 238 room nights Toy Story production team: 149 room nights Visiting hockey teams: 143 room nights Thunder Birds: 242 room nights 2011 total: 850 (including estimate on graduation and other ShoWare Center

attributed guests) out of a total of 30,685 room nights.

Tourism and MarketingQuestions regarding complimentary facilities and attraction located in nearShoWare Center were asked. Kent Station and downtown were the mostcommonly mentioned facilities. In addition, stakeholders were asked aboutcurrent marketing efforts and their effectiveness.

Complimentary Facilities and Attractions

Most people want to park once and walk to where theyre going to go. Downtown Kent.

Kent Station and the associated Sunday Farmers Market.


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Nothing on the same scale as ShoWare Center . The Courthouse draws lots of peopwho arent necessarily in a spending mood. Its good professional business spendinSome people are drawn to the downtown core.

I guess I cant really think of Kent as a place to go for recreation or events. I dontanything to come to Kent for. Its like Auburn. Its got restaurants and a movie

theater, stuff everywhere has. I dont see anything else. Maybe the ice rink. Kent Station definitely attracts people. It seems to be doing a good job with Kent Station. Kent Station, meaning you can go there before and after events. Downtown has tha

opportunity but not as much as Kent Station. For example, Im able to walk to gam from my downtown Kent office. Not much else besides this.

Kent Station certainly, with its restaurants. Also us, with our mini-golf, batting cagand bar. There are plenty of hotels. Also Wild Waves, which really isnt that far away.

Last September I took my salesmen down to Kent Station as an appreciation eventdo like that area down there. I see it becoming more relevant to me as my sales forbecomes larger, because we take our clients to eat in Kent Station. As Kent keeps

getting nicer, our employees and customers want to do things in Kent. Its nice. Ouability to move in that area is improved the nicer it is and more reasons we have tothere.

Marketing and Promotion of ShoWare Center and Kent

I think they do a good job. We have a chamber and the Kent Downtown PartnershiI think they do a good job. The Mayor does a good job as well.

The City does a good job. The promotions at Kent Commons are good. The City has a done a good job. I cant think of anything more.

There is the South Seattle Tourism Network T.V. ads might be a good idea

The ShoWare Center website and email blasts works well The addition of the new sign in front of ShoWare Center was important and

helps a lot. It lets people know what happening at the venue. To be blunt, were not marketing it at all. Outside of the promoter, were not gettin

out to the people There are a lot of people within 5 miles that havent been there. Tourism can grow through an actual marketing program, thats where we ar

right now. Theres no good signage and you wont see ShoWare Center if you arent

looking for it. If were ever going to go the next level (City of Kent and ShoWare Center) we

actually have to promote it. I dont know if Kent is a destination. The downtown area is really nice. There are

businesses there that are useful to my business and I can bring clients the

Documents

CAI ShoWare Economic Impacts 2012 1116