01 DT Ballpark Fact Sheet With City Hall Basic, Green, Improvements; Garage Estimates

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    Downtown Ballpark

    The City of El Paso is in the crucial stages of a downtown ballpark project which will change the future of the City.

    The information below provides responses to questions that have come up from various groups in the community.

    Why AAA Baseball?

    To acquire a Triple-A Baseball team is an economic development opportunity for the City of El Paso. Triple-Abaseball is the highest classification of minor league teams affiliated with Major League Baseball franchises. Thereare only 30 cities in the nation that host Triple-A baseball teams. Minor League Baseball has two leagues, one thatplays in the eastern half of the US and one that predominantly plays in the western half. El Paso would participatein the western Pacific Coast League or PCL. The PCL has sixteen teams comprised of two conferences.

    Triple-A baseball would provide 71 home games per season plus additional special events to the Downtown area.

    Visiting teams, officials, media and visitors will stay in El Paso as part of this investment. Triple-A will bring anannual estimated 436,000 patrons to the downtown area with an estimated annual event-related spending of over$17.9 million.

    What is the economic impact of having Triple-A Baseball in El Paso?

    Upon the acquisition of Triple-A baseball, many cities have experienced considerable growth in the area where theballpark is located. In addition to the direct spending that occurs within the ballpark such as ticket sales,concessions, merchandise sales, advertising, naming rights, and sponsorships, surrounding proprietors benefit fromhotel stays, restaurants visits, retail purchases, entertainment opportunities, taxi, and parking. Based on othercomparable studies, a Ballpark visitor will spend an average of $41.17, which translates to over $17.9 million indirect spending. The economic impact of constructing a $50 million ballpark contributes an estimated totaleconomic impact (direct, indirect and induced) of $76.8 million, labor income of $22.6 million and 611.7 jobs.

    Additional research shows that El Paso is the only city in a recent benchmark study without a major or minor leaguebaseball team. Additionally, El Paso ranks as 4th lowest in the CBSA comparison among Triple A markets (out of17 CBSAs) and ranks third youngest among the 17 PCL Triple A markets. Following is a chart listing thosecomparable cities and the applicable MLB or Triple A team.

    Chart I. El Paso Benchmark Cities with a MLB or Triple A Team

    SUMMARY

    SUPPORTING DOCUMENTATION

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    What is are some of the social, non-quantitative impacts of a Triple-A team in El Paso?

    Having Triple-A baseball in El Paso means:

    Enhanced affordable entertainment alternatives for families in the local area Enhanced City economic growth and private sector development in ballpark area New advertising opportunities for local businesses Increased civic and community pride Promotes positive self-image, exposure and reputation

    Opportunities for growth in the existing complementary entertainment areas Professional sports venues are considered important assets and attractions for tourism and business

    development

    Why Downtown and Specifically the City Hall Site?

    In early 2012, the City contracted with the planning firm of Urban Design+ to identify sites for three major sportsfacilities: AAA Baseball stadium, MLS Soccer Stadium and a multi-purpose events arena. Key objectives of thisstudy was to minimize takings of private propertiesprioritize city-owned properties, facilitate fast trackdevelopment, especially for AAA facility and support the continuing improvements in downtown El Paso and createsynergies between uses. As a result of this study, the following key points were determined for the City Hall site asit related to Triple-A.

    The City Hall site is the best site for the AAA baseball stadium The size of the site can accommodate baseball in the required orientation

    The adjacent historic sites add critical authenticity to the facilitya hallmark of successful new fields

    The location at the entry to downtown provides an opportunity for iconic architecture

    Strong synergies with existing Convention Center

    City Hall is in need of extensive repairs and relocation can reinforce the Government Center area

    Site could work with proposed AAA timeline

    Other sites have significant size, schedule, and acquisition constraints

    Comparable downtown stadiums analyzed included Redhawks Field at OKC, Aces Ball Park in Reno, NV; CanalPark, Akron, OH. (See detailed presentation on urban impact of these new facilities on the Citys website atwww.elpasotexas.gov.)

    Where does City Hall go?

    An internal work group has been established to do due diligence and develop final work plan to present to CityCouncil for approval. Key objectives are as follows:

    Relocate IT functions only once with the same to the extent possible for city development; temporaryoffices for remainder of staff.

    Long-term objective is to find a permanent City-owned facility for majority of staff

    Minimize temporary rental costs by looking at all alternatives and minimizing the space requirements to theextent possible

    City real estate consultant will conduct due diligence and get best options and prices of available buildingsdowntown

    Immediate needs will be addressed first (i.e. Phase I) and then work on longer term accommodations.

    Why not Cohen Stadium?

    MiLB requires a new stadium in order to approve relocation to El Paso. Cohen stadium is over 20 years oldand does not meet Triple-A standards. In its current state, the stadium has numerous deferred maintenanceitems as identified by the City (e.g. concourse settling).

    The location of Cohen is not downtown, which is a key focus area of the City and ownership group.Additionally, Minor League Baseball typically prefers downtown locations and communities realizesubstantial revitalization impacts from downtown sites.

    Inadequate Fan Experience Infrastructure Limited Seating Options Concessions Points of Sale is Low Inadequate Commissary Limited Opportunities for Premium Menu Items

    Number of Restrooms is Low

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    Premium Seating Categories are Substandard (Suites/Club Spaces) No Lounge/Meeting Space

    Inadequate Team Infrastructure Player Locker Rooms Player Physical Conditioning Space Player Rehabilitation Space Administrative Office Space

    Inadequate Revenue Generating Opportunities to Support Triple-A Concessions

    Sponsorship Group Sales Premium Seating

    How much does this cost? And who pays?

    The $50 million stadium will be financed with a combination of revenues with a focus on limiting the impact ontaxpayers by utilizing a 2% increase in the hotel/motel occupancy tax, rental fees, ticket surcharge and general fundrevenues. Property taxes are not to be used for this project. Of the project, 72% of the project will come from theincrease in the HOT tax. City Hall will be relocated at an approximate cost of $3 million which will be capitalizedto the extent possible utilizing general fund reserves. This is a one-time cost with an objective to minimize thenumber of moves and relocate in concentrated areas. The cost to rehabilitate a downtown building varies dependingon the site ultimately selected. Various scenarios have been run as follows:

    ChartI.CityHallRehabilitationofaDowntownBuilding(175,000sq.ft.)(withnolandacquisition):

    Annual

    Payment

    Term

    (Years)

    TaxRate

    Costpersquarefoot: Amount FundingSource Rate Impact*

    @$220/squareft $ 38,500,000 CO/LongtermDebt 2,731,670 25 5% 0.00896

    @$182/squareft $ 31,850,000 CO/LongtermDebt 2,259,836 25 5% 0.00741

    @$130/squareft $ 22,750,000 CO/LongtermDebt 1,614,168 25 5% 0.00529

    *Calculated for illustration purposes only given that property taxes cannot be used to support the Ballpark. Based on $3,049,000per penny of property tax revenues generated.

    The cost to rehabilitate the present City Hall is outlined in detail on the Citys website. In summary, thebasic rehabilitation is estimated at approximately $12 million with a complete renovation of $30.4million. The cost of renovations over a 25-year period if financed would range from $841,465 to $2.62million (at 5% interest rate cost) (Refer to link.)

    Comparative Cost of a City Hall Site vs. Alternative Downtown Site:

    Cost for City Hall Site for Triple A:

    Project: Project Cost: Annual Amount Term RateCost of stadium (estimate) $ 50,815,000 $3,605,449 25 years 5%

    Cost of City Hall Relocation (estimate) $ 3,271,000 One-time costs - -Cost of Comparable Building* $ 38,500,000 $2,731,670 25 years 5%

    Total Estimated Project Cost $92,586,000*See Chart I above for costs-based on highest cost.

    Triple-A Baseball on Alternate Downtown SiteFor an alternative downtown site, the acreage needed is approximately 8 acres at an estimated cost of $75per square foot based on current estimated market value. This added to the stadium cost would equate toapproximately $76.951 million for the stadium. (This does not take into account that there are no otheravailable sites of this size downtown and whether or not there would be willing sellers of downtownproperty which may increase the project cost.) Estimated costs to demolish buildings on the site are $2million. Taken with the estimates to fully rehabilitate City Hall of $30,478,000, the total estimated cost

    of an alternative site for a stadium downtown is $109.429 million. This excludes the possible additionalparking requirements for the new stadium or City Hall, as this number cannot be determined at this time.

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    Please www.elpasotexas.gov for additional details on all aspects of this project.

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