KFC YUM Center Report Final

8/12/2019 KFC YUM Center Report Final

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May 30, 2014


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Table of Contents

I. INODCION ........................................................................................ 1

II. OEIE OF KFCM!CENE................................................................ 2

III. D MEHODOLOG .............................................................................. 3

I. E EL ...................................................................................... 8

. ECONOMIC &FICAL IMPAC ANALI....................................................... 13


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I. Introduction

1

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II. Overview of KFC Yum! Center

2

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2010-11 2011-12 2012-13 2013-14(2)

Average

Total Events(1)

69 83 137 131 105

(1) Certain one-off local events in 2012/13 and 2013/14 were not considered in overall analysis.

(2) Budgeted information was included in 2013-14 numbers

Note: Original bond docum ents for KFC Yum! Center financing assumed 101 events in both 2012-12 and 2013-14.

Source: KFC Yum! Center Management, 2014

First Four Years of Operation

KFC Yum! Center Events

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III. Study Methodology

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Food & Merchandise WholesalerTransport CompanyManufacturers

Energy/UtilitiesNumerous Other Industries

Business ServicesHousehold SpendingGovernmental SpendingAll Other Economic Sectors

KFC Yum! Center RevenueAncillary Community Spending

The


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IV. Survey Results

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IV. Survey Results

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IV. Survey Results

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IV. Survey Results

12

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Local Attendees Non-local Attendees

Louisville Men's Basketball $21.13 $118.22

Concerts $13.43 $143.38

Family Shows $6.45 $123.02

Conventions $44.06 $278.81

Note: Represents out-of-arena spending over the course of the ev ent

Source: Intercept surveys, 2014

Out-of-Arena, Per-capita Spending

A , L $6.45 , $21.13 L M

B, $44.06 . N

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$118.22 , $143.38 . A,

$278.81.

**********

KFC ! C

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V. Economic & Fiscal Impact Analysis

13

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2010-11 2011-12 2012-13 2013-14(1)

Louisville Men's Basketball 22 23 21 23

Concerts 16 18 22 26

Family Shows 13 18 24 19

Conventions 0 2 2 4

Other Sports/Tournaments 0 3 8 3Louisville Women's Basketball/Volleyball 18 19 32 26

Meetings & Banquets/Other 0 0 28 30

Total 69 83 137 131

(1) Budgeted information was included in 2013-14 numbers

Source: KFC Yum! Center Management, 2014

KFC Yum! Center Events, by Event Type

First Four Years of Operation


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C .

Total Out-of-Arena Direct Spending

2010-11 2011-12 2012-13 2013-14(1)

Lodging $1,381,789 $4,823,086 $3,792,407 $10,166,647

Food & Beverage 10,620,692 13,098,801 12,912,275 16,617,905

Shopping 929,412 1,649,763 1,448,610 2,748,129

Entertainment 428,406 545,481 514,497 680,990

Transportation 673,714 772,930 779,100 874,615

Other 881,130 992,240 1,060,094 1,259,380

Total $14,900,000 $21,900,000 $20,500,000 $32,300,000

(1) 2013-14 numbers based in part on budgeted event and financial data

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201213 201314

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Other Arena Direct Spending

2010-11 2011-12 2012-13 2013-14(1)

Premium Seating $15,132,050 $13,141,096 $13,581,456 $13,990,096

Naming Rights 1,114,286 1,300,000 1 ,300,000 1,300,000

Sponsorships 3,861,740 2,756,732 2 ,855,023 2,756,732

Event Revenue 2,547,058 3,693,705 3 ,972,547 3,267,400

Other Income 55,058 96,218 167,364 352,340

Total $22,700,000 $21,000,000 $21,900,000 $21,700,000


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2010-11 2011-12 2012-13 2013-14(1)

In-Arena Spending $38,994,428 $40,200,652 $42,579,442 $47,783,737

Out-of-Arena Spending 14,915,142 21,882,301 20,506,984 32,347,666

Other Arena Spending 22,710,192 20,987,749 21,876,390 21,666,567

Total $76,600,000 $83,100,000 $85,000,000 $101,800,000


Total Direct Spending

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2010-2014

In-Arena Spending $169,558,259

Out-of-Arena Spending $89,652,093

Other Arena Spending $87,240,898

Total $346,500,000

Total Direct S pending - Four-year Cumulative Total

A ,

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E I M J C

Industry Output Employment Earnings

Arena Operations 1.750 26.547 0.961

Hotel 1.457 12.062 0.458

Restaurant 1.477 20.070 0.599

Entertainment 1.470 22.362 0.722

Retail 1.401 21.444 0.651

Other Local Transit 1.470 22.396 0.827

Other Industries 1.411 12.232 0.574

Note: Employment multiplier is applied to direct spending divided by 1,000,000.

Source: Minnesota IMPLAN Group, 2014


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KFC ! C , 2010

2014. ,

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E E I (2010 2014)

Total Direct Spending $346,000,000

Non-Local Attendee Direct Spending $101,000,000

Total Jobs

Non-Local

8,400

$162,000,000 Non-Local $77,000,000 2,200

Total Earnings$581,000,000

Non-Local

Direct Spending

Employee EarningsEconomic Output Employment

Total Output $299,000,000

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Current Tax

Tax Rates Collections

Sales Taxes:

State Sales Tax 6.00% $22,000,000

Other Taxes on Hotel Spending:Bond Debt Service (for 30 years or the retirement of all bonds) 2.00% 400,000

Louisville CVB funding 4.50% 900,000

Kentucky Center for the Arts 1.00% 200,000

Tourism, Meeting and Convention Marketing Fund 1.00% 200,000

Transient Room Tax (State sales tax on the other taxes) 0.51% 100,000

Occupational Fee on Earnings:

Portion allocated to local government 1.25% 3,400,000

Portion allocated to Louisville school board 0.75% 1,400,000

Portion allocated to Louisville TARC 0.20% 500,000

TOTALS $29,100,000

Summary of Tax Collections Generated by KFC Yum! Center OperationsFirst Four Years of Operations

A , $29.1

KFC ! C .

$22.0 6.0

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KFC YUM Center Report Final

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