MEMORANDUM REPORT – ATTENDANCE AND REVENUE OUTLOOK FOR THE PROPOSED LEGOLAND

MISSOURI IN LEE’S SUMMIT

April, 2007

Prepared for

City of Lee’s Summit 220 SE Green

Lee’s Summit MO 64063

Prepared by

JB Research Company 611 Del Norte Road

Ojai, CA 93023 (805) 640-1060

www.jbresearchco.com

April 9, 2007

TO: Greg Foss, Director of Development

City of Lee’s Summit

FROM: Jill Bensley, President

JB Research Company

RE: Attendance and Revenue Outlook for the Proposed

LEGOLAND Missouri in Lee’s Summit

In response to your request, JB Research Company has undertaken an analysis of available

market support, potential attendance, and per capita revenue for the LEGOLAND Missouri

theme park proposed for Lee’s Summit, a suburb of metropolitan Kansas City. This

memorandum report summarizes the findings and conclusions of the analysis. Supporting

documentation is contained in the Statistical Appendix.

BACKGROUND

The City of Lee’s Summit is evaluating a proposal from RED Development, in partnership with

the LEGO Company (now owned by Merlin Entertainments/The Blackstone Group), to develop

a $724 million multi-use complex on a prime 200-acre site within the city limits. The focal point

of the project would be a 41-acre LEGOLAND children’s theme park similar to existing

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LEGOLAND parks in California, Denmark, England, and Germany, and would also include a

walk-through aquarium, a festival retail center, large “power” shopping center, and a theme

hotel. This proposal follows cancellation of plans to develop the project on the Kansas side of

the metro area, for which Economics Research Associates (ERA) conducted a formal feasibility

study roughly four years ago.

As part of the financing package, the developers have applied for city and state assistance in the

form of Tax Increment Financing (TIF) bonds and other assistance, which would provide

approximately one-third of the total project cost. Preparatory to a public hearing on the TIF

application scheduled for mid-April, the City of Lee’s Summit desires an independent review

and analysis of the cornerstone LEGOLAND component of the project. JB Research Company

was engaged to conduct the necessary analysis, drawing on and updating information contained

in the previous ERA report as well as conducting new site demographics and incorporating

information provided by the client group and development team.

EXECUTIVE SUMMARY

The principal conclusions of JB Research Company’s analysis, detailed on subsequent pages of

this memorandum, are briefly highlighted below:

• The subject site in Lee’s Summit is readily accessible via the interstate highway network

and surrounded by compatible, complementary land uses.

• Population of the regional resident market within 100 miles amounts to 2.9 million

currently and will rise to slightly more than 3.0 million in the next five years. Some 70

percent of total regional population is contained within the key 50-mile band.

• Demographic characteristics of the resident market are largely favorable. Median

household income in the primary segment is nine percent higher than national, and the

proportion of children under age 14 (the main target audience for LEGOLAND) is

virtually identical to that of the company’s existing park in California.

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• The estimated volume of leisure tourism to greater Kansas City is approximately eight

million at the present time and is projected to increase to about nine million by 2012.

About 29 percent of all travel parties include dependent children, and 60 percent of all

tourists remain in Kansas City for one or more nights. During 2005, these overnight

tourists spent a substantial average of $101 daily per capita, 15 percent of this amount on

entertainment.

• Combined resident and tourist market support is estimated at 11.2 million currently.

Projections call for a total of 12.0 million by 2012, 75 percent of which is attributable to

tourism.

• Competition for the LEGOLAND attraction is moderate. Worlds of Fun is currently the

only theme park in Kansas City, and the LEGOLAND secondary market between 50 and

100 miles distance has no theme parks. The nearest competing facility in the outlying

area, Silver Dollar City in Branson, is located roughly 200 miles away. Other attractions

in Kansas City are by and large complementary by virtue of differing content and

orientation to different segments of the market. Several small, modestly attended local

attractions aimed at young children are of little competitive import.

• The theme park industry in the United States is mature and growing modestly. Virtually

all parks witnessed a decline in the years immediately following Crisis 9/11, but most

have steadily recovered. Overall industry growth is expected to continue at a one or two

percent average annual pace over the near term. The recent trend toward development of

multi-purpose destinations will persist, with many parks adding second gates, hotels, and

retail centers to enhance critical mass, broaden appeal, and extend the effective operating

season.

• The proposed LEGOLAND Missouri will be the fifth LEGOLAND Park worldwide and

the second in the United States. Existing parks serve markets of considerably different

size, with aggregate resident and tourist support amounting to between 7.7 million and

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39.4 million. The projected Kansas City area market in 2012 is positioned at the lower

end of this range at roughly 12.0 million.

• The overall capture rate of the combined resident and tourist market available to existing

LEGOLAND venues is a composite average of slightly less than 4.0 percent at the low

end and nearly 19.0 percent at the high end. Admission prices for the regular one-day

adult ticket vary from $39.35 to $61.00 in U.S. dollars. The composite range of total

revenue in U.S. dollars—including net admissions, merchandise sales, food and beverage

service, parking, and miscellaneous—is $34.49 to $44.64 per capita.

• Assumptions critical to projections for LEGOLAND Missouri are that the park will be

developed to the high standards of existing LEGOLAND venues, that admission pricing

will be competitive in the Kansas City market, that the attraction will be well promoted to

regional residents and visiting tourists, and that it will be located within a larger

destination complex that will augment critical mass and audience exposure.

• Given these assumptions in tandem with the findings of the market analysis, total annual

attendance at stabilization (usually the third year of operation) is projected at slightly

more than one million. Some 40 percent of total attendance will originate in the resident

market and 60 percent in the leisure tourist market. The imputed overall market capture

rate of 8.4 percent falls comfortably within the range reported for existing parks.

• The LEGO Company has projected per capita revenue at LEGOLAND Missouri at

$42.50 in current dollars at stabilization. Approximately 57 percent of this total, or

$24.35, will be derived from admissions. The latter figure is based on an adult admission

price of $39.95 at an estimated 61 percent yield (net effective ticket revenue after

allowing for scaled-down prices for children and seniors, season passes, promotional

discounts, and an allowance for complimentary admissions). Revenue from merchandise

sales is projected at $9.25 per capita, while revenue from food and beverage sales is

estimated at $7.00 per capita. JB Research Company considers these projections to be

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reasonable in light of current experience at existing LEGOLAND parks as well as

industry standards.

SITE ENVIRONMENT

The Kansas City Metropolitan Statistical Area (MSA) straddles the Missouri/Kansas state line.

It is composed of nine counties in Missouri, which had a total population of 1.95 million in 2005,

and six counties in Kansas, where 2005 population amounted to roughly 800,000 (Table 1).

Lee’s Summit is a community of 83,000 people located approximately 20 miles to the southeast

of downtown Kansas City (Figure 1). One of the metro area’s fastest-growing suburbs, it is

situated in populous Jackson County, home to some 663,000 people, or about one-third of the

metropolitan total. Kansas City is excellently served by the interstate highway system, and its

international airport has been ranked among the most passenger-friendly in the country.

Positioned close to the population center as well as the geographic center of the lower 48 states,

it is a major business and transportation hub for the Midwest region.

Kansas City is currently enjoying an unprecedented renaissance, with development in progress or

recently completed valued in excess of $7 billion. Collectively, this development activity is

sparking a measurable increase in tourist visitation to the region. Among high-profile projects

on the Kansas side is the Village West complex, which includes the NASCAR Kansas

Speedway, a minor league baseball stadium, Cabela’s sporting goods emporium, Great Wolf

Lodge hotel and indoor water park, Nebraska Furniture Mart superstore, and an 850,000-square-

foot retail entertainment center called The Legends. The latter is an enterprise of RED

Development. Now in the planning stages for a nearby site is the 300-acre Schlitterbahn

Vacation Village, ultimately to encompass up to 1,800 hotel rooms, waterfront cabins, and

unique “treehaus” elevated pod units adjoining a large water-tubing park, covered River Walk

retail entertainment center, and an interactive scuba lagoon and marine life attraction. Future

phases call for indoor snow sports that can be enjoyed all year.

Major projects on the Missouri side include a new $325 million downtown Kansas City

performing arts center, to open in 2009. The renowned Nelson-Atkins Museum of Art will

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unveil a $200 million expansion in June of this year, while a $135 million upgrade of Kansas

City’s Bartle Hall convention center has just been completed. On the calendar for opening in the

fall of this year is the 18,500-seat Sprint Sports Arena, to be the venue for a variety of sports and

concert events as well as the home of the National Collegiate Basketball Hall of Fame. Yet

another significant project to debut later this year is the $836 million Power & Light District

featuring a nine-block assemblage of restaurants, entertainment venues, shopping, offices, and

residential units.

The site proposed for the LEGOLAND theme park and associated development in Lee’s Summit

is at the southeast corner of the I-470 and U.S. 50 interchange (Figure 2). This is a 200-acre

property adjoining the existing Summit Technology Center, which contains one million square

feet of office space, a call center, data center, and light manufacturing facilities. Other nearby

land uses include RED Development’s 735,000-square-foot SummitWoods Crossing power

center completed in 2001 on the west side of U.S. 50. The LEGOLAND project will wrap

around the north and east periphery of Summit Technology Center. On the north, RED

Development plans a 600,000-square-foot power center. Adjoining the latter will be the

LEGOLAND theme park, a walk-through SEA LIFE aquarium in the mold of Merlin

Entertainments facilities in Europe, a 250-room hotel, and 50,000 square feet of festival retail

space.

The subject site’s location at a major highway intersection will afford rapid and convenient

access. According to the Missouri Department of Transportation, an average of more than

25,000 vehicles pass through this intersection on I-470 daily, giving the site continual exposure

to a large volume of both commuter and long-distance travelers. Surrounding land uses are

compatible, with SummitWoods Crossing already established as a shopping and leisure

destination.

MARKET ANALYSIS

The two components of the market available to the LEGOLAND Missouri project are the

regional resident population and nonresident tourist visitation, the size and characteristics of

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which are described subsequently. For purposes of this analysis, 2009 has been used as the

benchmark planning year. Stabilization of attendance usually occurs in about the third year of

operation. Assuming that the attraction opens in 2009, 2012 will be the third full calendar year.

Regional Resident Market

The resident market for the project is defined as a 100-mile radius, or up to two hours in driving

time. Because experience in the recreation industry not surprisingly reveals an inverse

relationship between travel distance and propensity to attend, this market has been further

subdivided into two segments—a primary segment extending up to 50 miles and a secondary

segment comprising a 50-100 mile outer band, definitions which are consistent with standard

theme park feasibility parameters.

Population Trends. The area within 50 miles or one hour of Lee’s Summit encompasses all of

metropolitan Kansas City as well as adjacent portions of Kansas and Missouri, including

Leavenworth and St. Joseph (Figure 3). The 50- to 100-mile secondary market between one and

two hours away extends almost to Manhattan on the west and Columbia on the east.

Approximately three million people currently reside within the 100-mile region as a whole

(Table 2), with nearly three-fourths living within the primary 50-mile ring. Primary market area

population is estimated at approximately 2.1 million in 2006 and is expected to increase to 2.15

million by 2009, the planned opening year of LEGOLAND Missouri. The secondary market

area (50-100 miles) is home to approximately 800,000 people currently and is projected to grow

to 804,000 by 2009. The overall resident market area thus contains 2.88 million people now and

will rise to 2.94 million by 2009 and 3.10 by 2011.

Within the primary market band, the 25-mile submarket has a 2006 population of 1.56 million,

with projections calling for 1.64 million by 2011. This nearby market is very similar to that of

LEGOLAND in Carlsbad, California, where the 25-mile market amounts to 1.56 million at the

present time. At the California park, about one-quarter of total attendance is generated from this

submarket in the form of season passes and other repeat visitation.

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Age Profile. The principal audience for LEGOLAND attractions is families with children aged 3

to 12, usually headed by parents in the 25-44 age bracket. In the case of greater Kansas City, the

0-14 age cohort makes up almost 21 percent of the 50-mile market segment and some 19 percent

of the secondary segment as of 2006 (Table 3). The secondary market has a slightly older age

median at 39.9 years versus the 35.7 years reported for the primary market (Table A-2).

Children 14 years of age or younger number about 438,000 in the primary segment and roughly

588,000 in the secondary segment. Children under 14 comprise 20.4 percent of population in the

overall 100-mile market region, coincidentally exactly equal to the national average.

Compared to LEGOLAND’s California market area, the proportion of children up to 14 years of

age is as follows:

Percent of Population

Under Age 14

Market Segment Carlsbad Lee’s Summit

Primary (0-50 miles) 21.5% 21.0%

Secondary (50-100 miles) 23.5% 18.8%

Total 23.0% 20.4% Source: ESRI Business Analyst Online and

JB Research Company

Most important in the context of this analysis is that the proportion of children in the key 50-mile

market segment is almost identical.

Household Size and Composition. The primary market area contained approximately 821,500

households in 2006, while the 50- to 100-mile secondary market had 317,400 households,

resulting in a total of 1.14 million households overall (Table A-2). Average household size is

similar at 2.48 persons in the primary market and 2.42 persons in the secondary market, which

compares to a benchmark United States average of a slightly higher 2.59 persons.

Family type is important in assessing propensity to attend the proposed LEGOLAND Missouri.

Family households (as opposed to single-person or adults-only households) represent 65 to 67

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percent of total households in all Lee’s Summit market segments. In the overall 100-mile

market, family households are equivalent to 66 percent of the total.

School Enrollment. Within greater Kansas City, approximately 340,300 children are enrolled in

public schools, about 151,200 in Kansas and 189,100 in Missouri (Table A-3). Some 300,000

youngsters aged 5 to 14 reside in the primary market.

The proposed LEGOLAND Missouri attraction will have the opportunity to partner with local

schools by designing programs with special teacher and collateral material, possibly with online

access. School field trips, however, are cost-sensitive (price of admission plus the cost of

transportation to and from the site), a factor that must be kept in mind when designing programs

to attract this market segment.

Income Characteristics. Relative household income levels are an important determinant in

theme park attendance, with higher-income households better able to afford a day at the park.

An overview of income characteristics in greater Kansas City (Table 4) indicates that median

household income of $56,324 in the primary 50-mile market area is more than nine points higher

than the national average of $51,546. In the secondary market area, conversely, median income

is significantly below the national norm at $41,263. The higher median in the primary market

area reflects the fact that a large percentage of households—some 56 percent—earn in excess of

$50,000 per year, slightly more than the national average of 51.6 percent. Households with

incomes over $75,000 comprise about 35 percent of the primary market segment compared to 32

percent in the nation at large.

It is noteworthy that Jackson County is among the three counties with the lowest median

household income in the Kansas City MSA (Table A-4), which is a major reason for efforts to

seek new retail and attraction investment in Lee’s Summit.

Household Expenditures. Household expenditures for entertainment in 2003, the most current

year available, amounted to about 4.7 percent of total consumption expenditures in the Kansas

City MSA, which compares to 5.0 percent in the United States as a whole (Table 5 and Table A-

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5). The average expenditure on all items in the MSA is approximately 6.5 percent higher than

the national benchmark. Outlays on food and beverages and other non-durable goods further

suggest a strong consumer market.

Ethnic Profile. The primary market area is predominantly Caucasian at approximately 80

percent, while the Black proportion is about 12 percent, mirroring the national profile. Residents

of Hispanic origin comprise about six percent of the primary market, with approximately two

percent classifying themselves as “other”. In the secondary market area, more than 91 percent of

the market is Caucasian.

Employment and Educational Attainment. The largest employment sectors in greater Kansas

City include (in order of importance) government and related enterprises, retail trade, and health

care (Table A-6). Major industries include automobile assembly, telecommunications, and all

sectors of government. Proprietors’ employment makes up about 17 percent of total

employment.

The educational profile for the Kansas City metro area indicates an educated populace, with 32

percent of people over 25 years of age holding a four-year college degree in 2005, compared to

27 percent nationally. High school graduates comprised 89 percent of the population in 2005,

compared to 84 percent nationally. Greater educational attainment correlates positively with

leisure and entertainment expenditure.

Available Tourist Market

Kansas City’s appeal as a visitor destination rests with its appealing inventory of shopping,

dining, and recreation assets, along with status as a major regional business and industrial center.

Estimated Volume. Agencies providing partial data on the magnitude and characteristics of the

tourist industry in the Kansas City region include the Kansas City Convention and Visitors

Bureau, Smith Travel Research, the U.S. Department of Transportation/American Travel Survey,

and the Missouri Division of Tourism. No single source, however, provides comprehensive,

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regularly updated statistics that are consistent with data from other sources. For purposes of this

analysis, therefore, JB Research has obtained available recent statistics from a variety of sources

to update estimates developed in the previously referenced ERA feasibility study for the former

site in Kansas.

The most recent tourism data is presented in a 2004-05 D.K. Shifflet & Associates study

commissioned by the Kansas City Convention and Visitors Bureau. According to this study,

which is a combination of an ongoing nation-wide travel tracking study of 45,000 monthly mail

questionnaires and 15,000 monthly online questionnaires, there were approximately 16.5 million

visitors to the Kansas City region in 2004. This total was split between 11.9 million leisure

visitors and 4.6 million business travelers, including both day-trippers and overnight or longer

visitors. The definition of “tourist visit” employed in the study is any trip (day or overnight)

generated by a resident living more than 50 miles one-way from the Kansas City metro area.

Since the definition of the resident market in this analysis extends out to 100 miles, significant

double-counting is thus implicit in the Shifflet estimates.

One way to avoid double-counting is to focus on overnight visitation. According to the Shifflet

report, leisure overnight travel to the Kansas City area increased as follows over the past five

years:

Year

Estimated Overnight

Leisure Visitors

(millions)

2000 5.4

2001 4.9

2002 5.0

2003 5.1

2004 5.9 Source: D. K. Shifflet & Associates

These are the tourists most likely to visit LEGOLAND Missouri. Estimates indicate that

significant growth averaging 2.3 percent annually has occurred since the downturn caused by

Crisis 9/11. In fact, overnight leisure travel has surpassed the 5.4 million pre-9/11 volume. It

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should be noted that these figures do not include international travelers; however, the U.S. Office

of Travel and Tourism Industries does not include Kansas City on its annual list of cities

receiving at least 60,000 foreign visitors, suggesting that the total is nominal.

As a check of overnight visitation numbers generated by the Shifflet study, JB Research utilized

an independent methodology based on the number of hotel rooms in the metropolitan area

(Table 6). According to the Kansas City Convention and Visitors Bureau, the hotel room

inventory increased from approximately 18,100 units in 1990 to 23,000 in 1997 and 26,000 in

2002. Smith Travel Research, another data source with somewhat broader coverage, reports

room inventory at 27,382 units in 2000, 28,763 in 2002, and approximately 29,741 in 2006.

Based on the latter figures and applying regional factors for occupancy, average hotel guest

length of stay, and average number of persons per room, and an overnight visitor market of

approximately 9.7 million results for 2000, which increased to 9.8 million in 2002 and 11.2

million in 2006. The significant upturn over the past four years amounts to approximately 14.2

percent in total, or 3.4 percent on an average annual basis. Among influences contributing to this

growth is the Village West project mentioned earlier, which is estimated to attract approximately

12 million customers per year, many of them from outside the immediate Kansas City region.

The preceding tourism estimates must be adjusted to exclude business travelers who, for reasons

of time limitations and preoccupation with other matters, are poor sources of support for leisure

attractions other than nighttime entertainment. Available data suggests that business visitors are

equivalent to about 30 percent of the overnight or longer component and ten percent of the day-

trip component. On this basis, the 2006 adjusted leisure market is estimated at approximately 8.3

million.

Visitor Market Characteristics. The 2004-05 Shifflet report provides the following basic

profile of tourists to greater Kansas City:

• Principal motivations for leisure travel are visiting friends and relatives (39 percent),

getaway weekend (20 percent), special event (18 percent), other personal reason (12

percent), and general vacation (11 percent).

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• Not surprisingly, summer is the high season for overnight leisure travelers, with 55

percent of visitation occurring between April and the end of September. Temperate

weather and the summer school recess are obviously influential. Secondary peaks in

tourism associated with Spring Break and the year-end holidays take place in March,

accounting for 11 percent of the annual total, and in December, at 15 percent. January,

February, and October are the low months for leisure travel.

• The primary mode of travel to Kansas City is private automobile. According to the

Shifflet report, 86 percent of overnight leisure visitors arrive by car, ten percent by air,

and four percent by other means.

• People living within the states of Kansas and Missouri account for more than 45 percent

of all annual overnight tourism, followed by Nebraska residents at slightly more than 11

percent and Iowa residents at seven percent. Oklahoma and Texas each provide about

four percent of visitation and California generates three percent. Overall, about one-third

originate between 200 and 300 miles away, and more than one-quarter travel more than

500 miles.

• The average overnight leisure travel party size is approximately 2.5 persons, and about 29

percent of all parties are traveling with children. Solo travelers accounted for 21 percent,

while couples accounted for 36 percent. Same-sex adults traveling together represented

seven percent of visitor parties and three or more adults traveling together accounted for

eight percent of parties.

• Average length of stay was approximately 2.7 days, down from 3.4 days in 1999. The

leisure day-trip market in Kansas City is significant and accounts for more than 90

percent of all day-trips to the MSA.

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• Approximately half of all leisure visitors stay in Kansas City for one or more nights.

About 60 percent stay in a hotel or motel, up from 45 percent in 1999, while 30 percent

stay in a private home.

• The average travel party spent a total of $797 during their stay in 2005. Overnight leisure

visitors had the following daily per capita expenditures:

Expenditure Type

Amount Spent

Daily Per Capita

Transportation $26

Food/Beverages $21

Lodging (paid and unpaid average) $12

Shopping $22

Entertainment $15

Miscellaneous $5

Total $101 Source: D. K. Shifflet & Associates

Compared to 2004, all categories of expense reportedly increased, especially shopping

and entertainment. Expenditures on theme park admissions fall into the latter category.

• Overnight leisure travelers have the following household income distribution:

Income Category

Percent of

Households

Less Than $25,000 8%

$25,000-$49,999 30%

$50,000-$74.999 23%

$75,000 or More 39%

Total 100% Source: D. K. Shifflet & Associates

As shown, almost 40 percent of tourist households earn in excess of $75,000 per year.

This category increased from 33 percent in the Shifflet study conducted one year earlier.

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• Larger travel parties understandably have higher total expenditures than small parties.

The market segment with the strongest impact is families, which accounted for 29 percent

of travel volume in 2005, but 37 percent of total spending. Again, these are the prime

potential customers for LEGOLAND Missouri.

• Shopping and dining are the most popular activities in Kansas City, each cited by 32

percent of all overnight leisure visitors (Figure 4). Other popular activities include

entertainment (27 percent), sightseeing (20 percent), sports (12 percent), and

theme/amusement park visitation (11 percent). When indexed to national benchmarks,

Kansas City tourists exhibit the following average activity participation rates:

Activity

Participation Index

(U.S. Average = 100)

Sports 224

Museum/Art Exhibits 149

Gambling 136

Theme Park 132

Concert/Play/Dance 125

Shopping 121

Auto/Boat/Antique Show 120

Golf 115

Entertainment 110 Source: D. K. Shifflet & Associates

It is noteworthy that people are already coming to Kansas City for amusement parks,

even though there is no major national brand in the market area.

• In 2006, the hotel occupancy rate in the Kansas City metro area averaged 59.5 percent, up

from 58.1 percent in 2005, based on the area’s approximately 30,000 rooms. Demand

growth was almost four percent and room inventory grew by 1.6 percent, while the

average daily number of rooms rented grew by 3.9 percent. JB Research understands that

about 750 rooms are under construction and 3,000 more are planned. With new visitor

attractions around Bartle Hall, the Power & Light District, the area around the Kansas

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Speedway, and the Overland Park Convention Center, total occupied room-nights should

continue to increase.

Aggregate Market Support

Aggregate resident and tourist market support available to LEGOLAND Missouri in the assumed

opening year of 2009 amounts to some 11.6 million (Table 7). In projecting available market

support through 2015 from the base year of 2006, JB Research adopted growth rates used by the

U.S. Bureau of the Census and ESRI. Tourist projections employ historical growth rates with

downward adjustments for long-term analysis. Net of business tourism, overall market size will

rise from more than 11.0 million currently to 12.4 million by 2015, about three-fourths of which

is attributable to nonlocal visitors.

LOCAL AND REGIONAL ATTRACTION EXPERIENCE

To establish a context on the competitive environment for LEGOLAND Missouri, the experience

of major existing attractions in the Kansas City area and the broader Midwest region was

reviewed. The local inventory includes a number of outstanding cultural and educational

institutions, the Worlds of Fun/Oceans of Fun themed amusement complex, several casinos, a

variety of professional and collegiate sports facilities, and other venues. The majority of these

are complementary by virtue of differing content and orientation to different segments of the

market. Educational attractions drawing at least 200,000 visitors per year are as follows:

Attraction

Annual Attendance

(thousands)

Watkins Woolen Mill SHP 768

Science City at Union Station 436

Kansas City Zoo 429

Nelson-Atkins Museum of Art 300

Deanna Rose Children’s Farmstead 250

American Jazz Museum 242 Source: JB Research Company

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Admission prices at the above attractions vary from free at Children’s Farmstead and the Nelson-

Atkins Museum to $13.95 adult for the all-inclusive ticket at Science City. In addition to these

general family destinations, there are also several attractions specifically oriented to children. A

children’s participatory art exhibit known as Kaleidoscope is located within the Hallmark Cards

headquarters at Crown Center and draws 100,000 visitors per year with free admission. The

Wonderscope Children’s Museum in Shawnee reports attendance of 60,000 at a $6 adult price,

while attendance at the Children’s Museum of Kansas City is 23,000 at $4 adult admission.

Worlds of Fun also has a Camp Snoopy kiddie ride section. These small and modestly attended

attractions are of little competitive import.

Currently, Worlds of Fun is the only theme park in the greater Kansas City area, and the

LEGOLAND secondary market between 50 and 100 miles distant has no theme parks. The

nearest competing facility in the outlying area, Silver Dollar City in Branson, is located roughly

200 miles away. Still more distant parks include Six Flags St. Louis, Adventureland USA in Des

Moines, Frontier City in Oklahoma City, Six Flags Great America near Chicago, ValleyFair in

Minneapolis, and Geauga Lake outside Cleveland. The best-attended of these parks is Great

America, which drew 2.6 million visitors in 2006 (Table 8). Silver Dollar City is next at about

2.1 million, followed by Six Flags St. Louis at 1.4 million and ValleyFair at just under one

million. Historically, attendance at Worlds of Fun has ranged between 900,000 and 1.2 million,

but dropped to 800,000 in 2005. Although final figures for 2006 have not yet been reported for

Worlds of Fun, attendance is reportedly up substantially with the debut of the $14 million Patriot

roller coaster, the largest single reinvestment in the park’s history. If plans for the previously

cited Schlitterbahn Vacation Village proceed as presently envisioned, it will become a $1 billion-

plus year-round destination that will intensify local competition. Nevertheless, the unique brand

identity of Lego toys and the high appeal of the LEGOLAND parks to children will help to

ensure a strong competitive position for Missouri if the subject complex is developed.

A broader frame of reference is provided by experience at other regional attractions around the

country. Examples include Six Flags Over Texas in Arlington at 2.3 million visitors as of 2005,

Carowinds in Charlotte and Six Flags Over Georgia in Atlanta at 2.1 million, Six Flags Fiesta

Texas in San Antonio at 1.4 million, and Elitch Gardens in Denver and Lagoon Park in Sandy,

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Utah at about 1.2 million. The rather wide range of attendance achieved is a function of several

interrelated factors, including market size and character, location, scope and content of the

attraction, operating season length, pricing, and the aggressiveness of the marketing and

promotion program. The majority of these parks derive the bulk of their visitation from their

respective 100-mile resident markets, which typically generate half or more of total attendance.

Silver Dollar City is a notable exception. This attraction serves a comparatively small resident

population and instead draws heavily from a very large tourist market.

Adult admission prices at regional theme parks sampled in this analysis (Table 9) currently

extend from a low of $35.95 at ValleyFair to a high of $54.99 at Six Flags Great America (adult

prices, it should be noted, generally refer to visitors 12-62 years of age). In response to

heightened competition together with apparently increasing price sensitivity, some major parks

have recently reduced admission fees for the first time in many years. Locally in Kansas City,

Worlds of Fun has a current adult ticket of $37.95, or near the lower end of the prevailing range.

The entry fee for children is especially low at $11.95, about half the price charged by other

regional theme parks. This is a strategy reflecting the fact that, with its array of thrill rides,

Worlds of Fun appeals strongly to teenagers, but has relatively little interest to younger children.

The theme park industry in the United States is mature and growing modestly. A new report

issued by the Themed Entertainment Association (TEA) reports that collective attendance at the

nation’s 20 largest parks increased by 1.5 percent in 2006 over the previous year. Virtually all

parks witnessed a decline in the years immediately following Crisis 9/11, but most have steadily

recovered. Attractions that have recently made major reinvestments have fared considerably

better than average, reporting attendance gains of four or five percent. LEGOLAND’s California

venue is a stand-out—attendance grew by an exceptional 16 percent in 2006 after introduction of

the new $10 million Pirate Shores interactive attraction. Overall industry growth is expected to

continue at a one or two percent average annual pace over the near term. The recent trend

toward development of multi-purpose destinations will persist, with many parks adding second

gates, hotels, and retail centers to enhance critical mass, broaden appeal, and extend the effective

length of stay and operating season.

19

EXPERIENCE OF EXISTING LEGOLAND PARKS

The proposed LEGOLAND Missouri will be the fifth LEGOLAND park worldwide and the

second in the United States. All of these attractions, based on the popular LEGO and DUPLO

lines of toys and accessories, are targeted at young families and emphasize rides and interactive

activities suitable for small children. While the parks are deliberately not identical, all contain a

signature Miniland model village constructed of millions of LEGO bricks. Other features

commonly include an Imagination Zone for fun-based learning, a DUPLO Land for tots,

Adventure Land safari-themed area, and the medieval-themed Knights’ Landing. The oldest

venue is the flagship park opened in 1968 at LEGO company headquarters in Billund, Denmark.

LEGOLAND Windsor in suburban London, built on the site of the former Windsor Safari Park,

followed in 1996. The company’s first entry into the U.S. market was LEGOLAND California,

located in the community of Carlsbad north of San Diego, which opened in 1999. Situated in

Günzburg midway between Munich and Stuttgart, the most recent addition to the chain is

LEGOLAND Germany, opened in 2002. The company has also launched a small, indoor

version of the concept known as LEGOLAND Discovery Centre. The first of these units,

containing about 35,000 square feet of floor area including a 4D theater, has just opened at Sony

Center in Berlin.

The proposed LEGOLAND Missouri will be the fifth LEGOLAND park worldwide and the

second in the United States. While data for individual venues has been withheld for

confidentiality reasons, the range of resident population within 100 miles or two hours’ drive

extends from 2.4 million to 23.8 million (Table 10). The size of the overnight leisure tourist

market varies from 5.3 million to 21 million. Aggregate market support amounts to between 7.7

million and 39.4 million. It should be noted that the aforementioned composite resident and

tourist market figures do not necessarily add to totals because different parks represent the lows

and highs in each instance. The projected Kansas City area market in 2012 (Table 7) is

positioned at the lower end of this range at roughly three million residents and nine million

leisure visitors, or 12 million in total.

20

The range of attendance at LEGOLAND attractions over the past decade is 1.2 to 1.7 million.

Again protecting confidentiality, the composite attendance distribution at the four existing parks

shows that 62 to 69 percent of all visitors originate in the 100-mile market area, 23 to 35 percent

from within 50 miles, and 30 to 39 percent from within 50 to 100 miles (Table 11). Between 31

and 38 percent of all attendees are tourists, five to 33 percent are domestic visitors, and

coincidentally five to 33 percent are international visitors. Market penetration varies from

roughly eight to 39 percent of the primary (50-mile) resident market, three to 37 percent of the

secondary (50-100 mile) resident market, two to eight percent of the domestic tourist market, and

0.4 to 11 percent of the international tourist market. The overall capture rate of the combined

resident and tourist market available in each instance is slightly less than four percent at the low

end and nearly 19 percent at the high end.

Consistent with common practice in the industry, LEGOLAND parks offer a tiered admission

pricing schedule and several ticketing options including regular one-day admission, a two-day

pass, and a season pass (Table 12). Adult entry fees are 20 to 30 percent higher than fees for

children 12 years of age and under (15 and under at the Windsor park) and senior citizens. The

highest regular one-day adult fee, equivalent to approximately $61.00 in U.S. currency, is

charged at the Windsor park, followed by the California venue at $57.00. Günzburg has the

lowest adult price at about $39.35 in U.S. dollars. Two-day adult tickets range from

approximately $59 U.S. in Günzburg to about $120 U.S. in Windsor.

In 2006, total per capita operating revenue at LEGOLAND parks ranged from $34.49 to $44.64

(Table 13). Again, figures are expressed as composites to preserve confidentiality. Admissions

contribute the highest proportion of total operating revenue, accounting for between 47 and 56

percent. Merchandise sales, which capitalize on the great popularity of LEGO toy products,

generate from 22 to 26 percent of total revenue, followed by food and beverage sales at 17 to 25

percent of the total. Parking, merchandise, and miscellaneous visitor expenditures contribute the

balance.

In July 2005, the multi-national Blackstone Group acquired a majority interest in the

LEGOLAND parks, a move that followed the Group’s acquisition of Merlin Entertainments

21

(operators of some 24 SEA LIFE aquariums and other attractions in Europe) a month earlier.

The two companies are now being combined into what is the second largest entertainment

conglomerate in the world. Recognizing that periodic reinvestment is critical to the ongoing

success of any leisure attraction, the new owners plan to initiate an aggressive park expansion

and upgrading program. JB Research understands that the strategy calls for a three to four-year

cycle of capital injections which will be employed at all LEGOLAND parks to help in

maintaining and/or increasing the attendance base. At the California venue, this strategy has

been successful in generating measurable increases in both attendance and revenue during the

past two years.

PROJECTIONS FOR LEGOLAND MISSOURI

The preceding review of the site environment, market support analysis, regional theme park

performance, and the experience of existing LEGOLAND parks provides the basis for projecting

attendance at LEGOLAND Missouri in Lee’s Summit. Assumptions critical to these projections

are:

• The proposed attraction will be developed to the high standards of existing LEGOLAND venues.

• Admission pricing will be competitive in the Kansas City market. • The attraction will be well promoted to regional residents and visiting tourists. • The park will be located within a larger destination complex that will augment critical

mass and audience exposure.

Given these assumptions, JB Research Company estimates penetration rates in a typical

stabilized year at 15 percent of the primary (50-mile) resident market, eight percent of the

secondary (50-100 mile) market, six percent of the overnight leisure tourist market, and 2.5

percent of the leisure day-trip market originating beyond 100 miles (Table 14). Based on market

size in 2012 (Table 7), these various capture rates translate into a total attendance volume of

859,000 people. Added to the latter is an allowance for 145,000 induced visits, bringing total

annual stabilized-year attendance to slightly more than 1.0 million. Induced visitation represents

22

tourists who would not ordinarily come to Kansas City, but will make special plans to travel

there specifically to visit LEGOLAND. Such inducements often occur when a unique product is

introduced that has few counterparts in other locations.

Attendance in the first year of operation will likely be somewhat higher than the stabilized total

due to the novelty of the attraction in the marketplace and publicity surrounding the grand

opening. After stabilization, attendance will tend to grow moderately in concert with increases

in market size and reinvestments that freshen the offering and stimulate repeat visitation.

Industry experience suggests that a typical progression of attendance for the first five years of

operation would be as follows:

Year

Estimated Attendance

(thousands)

Year 1 950-1,050

Year 2 850-950

Year 3 (Stabilization) 900-1,000

Year 4 900-1,000

Year 5 900-1,000 Source: JB Research Company

At stabilization, some 40 percent of total attendance will originate in the resident market and 60

percent in the leisure tourist market. This is the reverse of the profile for existing LEGOLAND

attractions (Table 15) and reflects the fact that the size of the Kansas City resident market is

smaller than that of most existing parks (Table 10), especially the relatively sparsely populated

secondary segment. Market penetration, however, falls comfortably within the range of existing

parks at 13 percent of the 100-mile resident market, five percent of the leisure tourist market, and

an imputed 8.4 percent overall.

The LEGO Company has projected per capita revenue at LEGOLAND Missouri at $42.50 in

current dollars at stabilization (Table 16). Approximately 57 percent of this total, or $24.35, will

be derived from admissions. The latter figure is based on an adult admission price of $39.95 at

an estimated 61 percent yield (net effective ticket revenue after allowing for scaled-down prices

for children and seniors, promotional discounts, season passes, and an allowance for

23

complimentary admissions). Revenue from merchandise sales is projected at $9.25 per capita,

while revenue from food and beverage sales is estimated at $7.00 per capita. JB Research

Company considers these projections to be reasonable in light of current experience at existing

LEGOLAND parks as well as industry standards. With roughly one million attendance in the

stabilized year, total gross operating revenue will amount to $42.5 million. Net of parking, which

is not taxed in the subject jurisdiction, gross revenue totals $40.6 million. This will translate into

substantial ongoing admissions and sales tax revenue to local and state government.

CONCLUSION

It has been a pleasure working with you and representatives of the LEGO Company and RED

Development on this assignment. Please let me know if you have any questions or wish further

elaboration of the study’s findings.

STANDARD DISCLAIMER

The projections presented in this report are based on estimates, assumptions, and other

information developed by JB Research Company through its independent research, general

knowledge of the leisure industry, and consultations with the client group and representatives of

the attraction development team. No responsibility is assumed for inaccuracies in reporting by

any source used in preparing the analysis. As with all projections and forecasts, no warranty or

representation is made by JB Research Company that any of the projected values or results will

actually be achieved. This report should accordingly be considered in light of these limitations,

conditions, and considerations.

JB:bd

Attachment: Statistical Appendix

Table / Figure # Page #

Table 1 Kansas City MSA Population by County 25Figure 1 Legoland Missouri Vicinity Map 26Figure 2 Site Plan for Legoland Missouri Project 27Figure 3 Resident Market Area for Legoland Missouri 28Table 2 Population Trends in the Legoland Missouri Rersident Market Area 29Table 3 Age Profile of the Legoland Missouri Resident Market 30Table 4 Household Income Profile of the Legoland Missouri Resident Market 31Table 5 Comparative Household Expenditure Patterns in the Kansas City MSA 32Table 6 Estimated Leisure Tourism to the Greater Kansas City Area 33Figure 4 Top Activities of Overnight Leisure Visitors to Kansas City 34Table 7 Aggregate Market Support for Legoland Missouri 35Table 8 Attendance Trends at Selected Regional Theme Parks 36Table 9 Admission Prices at Selected Regional Theme Parks 37Table 10 Comparative Legoland Market Size 38Table 11 Comparative Legoland Park Attendance Mix and Market Penetration 39Table 12 Ticket Prices at Existing Legoland Parks 40Table 13 Average Per Capita Revenue at Existing Legoland Parks 41Table 14 Projected Attendance at Legoland Missouri 42Table 15 Comparative Benchmarks for Legoland Missouri 43Table 16 Projected Per Capita Revenue for Legoland Missouri 44

Table A-1 Resident Market Characteristics for Legoland Carlsbad 46Table A-2 Resident Market Characteristics for Legoland Missouri 48Table A-3 Annual Enrollment by Public School District in the Kansas City MSA 50Table A-4 Kansas City MSA Demographic Characteristics by County 52Table A-5 Kansas City MSA Consumer Expenditure Patterns 53Table A-6 Kansas City MSA Employment by Place of Work 54

CONTENTS OFSTATISTICAL APPENDIX

PercentCounty 2000 2005 Change

KansasFranklin 24,873 26,247 5.5%Johnson 454,582 506,562 11.4%Leavenworth 68,966 73,113 6.0%Linn 9,604 9,914 3.2%Miami 28,501 30,496 7.0%Wyandotte 157,844 155,750 -1.3%

Total Kansas 744,370 802,082 7.8%

MissouriBates 16,719 17,027 1.8%Caldwell 8,995 9,307 3.5%Cass 82,637 94,232 14.0%Clay 184,811 202,078 9.3%Clinton 19,047 20,715 8.8%Jackson 655,642 662,959 1.1%Lafayette 33,031 33,108 0.2%Platte 74,199 82,085 10.6%Ray 23,388 24,101 3.0%

Total Missouri 1,098,469 1,145,612 4.3%

Total Kansas City MSA 1,842,839 1,947,694 5.4%

____________________Source: Greater Kansas City Chamber of Commerceand JB Research Company

Table 1

KANSAS CITY MSA POPULATION BY COUNTY2000 and 2005

Total Population

25

Source: MapQuest

Figure 1

LEGOLAND MISSOURI VICINITY MAP

26

27

Source: ESRI Business Analyst Online Figure 3

RESIDENT MARKET AREA FORLEGOLAND MISSOURI

28

Primary SecondaryYear (0-50 miles) (50-100 miles) Total

2000 1,942,781 783,812 2,726,593

2006 2,083,655 797,536 2,881,191

2011 2,197,803 897,835 3,095,638

Average AnnualRate of Increase 2000-06 1.2% 0.2% 0.9% 2006-11 1.1 0.3 0.8

__________________Source: ESRI Business Analyst Online andJB Research Company

Total Population

2000-2011

Table 2

POPULATION TRENDS IN THE LEGOLAND MISSOURI

RESIDENT MARKET AREA

29

Age Group 0-50 Miles 50-100 Miles Total Market US National 0-50 Miles 50-100 Miles Total Market US

0-4 Years 7.2% 6.5% 7.0% 6.9% 7.2% 6.4% 7.0%5-9 Years 6.9% 6.0% 6.6% 6.5% 6.6% 6.0% 6.5%10-14 Years 6.9% 6.3% 6.8% 7.0% 7.0% 6.4% 6.8%15-19 Years 7.0% 6.9% 7.0% 7.1% 6.6% 6.4% 6.6%20-24 Years 7.3% 7.0% 7.3% 7.1% 7.1% 6.2% 6.9%25-34 Years 13.6% 11.5% 13.1% 13.2% 13.4% 12.1% 13.0%35-44 Years 15.0% 13.1% 14.5% 14.6% 13.9% 11.6% 13.3%45-54 Years 14.7% 14.9% 14.8% 14.5% 15.1% 14.9% 15.0%55-64 Years 10.1% 11.5% 10.5% 10.5% 11.5% 13.3% 12.0%65-74 Years 5.6% 7.9% 6.2% 6.3% 5.9% 8.1% 6.5%75-84 Years 3.9% 5.6% 4.4% 4.4% 3.7% 5.6% 4.2%85+ Years 1.6% 2.6% 1.9% 1.8% 1.8% 2.8% 2.1%

____________________Source: ESRI Business Analyst Online and JB Research Company

2006 2011

AGE PROFILE OF THE LEGOLAND MISSOURI RESIDENT MARKET

Table 3

2006-2011

30

Primary Market Secondary Market(0-50 miles) (50-100 miles) Total

Median Household Income $56,324 $41,263 $51,692 $51,Average Household Income $72,761 $52,040 $66,986 $71,Per Capita Income $28,972 $21,205 $26,822 $27,

Distribution by Income Category< $15,000 9.4% 14.8% 10.9% 12.$15,000 - $24,999 9.0% 13.7% 10.3% 10.$25,000 - $34,999 9.8% 13.3% 10.8% 10.$35,000 - $49,999 15.3% 17.9% 16.0% 15.$50,000 - $74,999 21.6% 20.7% 21.4% 19.$75,000 - $99,999 14.4% 10.0% 13.2% 12.$100,000 - $149,999 13.0% 6.9% 11.3% 12.$150,000 - $199,999 3.8% 1.3% 3.1% 3.7$200,000 + 3.6% 1.3% 3.0% 4.0

___________________Source: ESRI Business Analyst Online and JB Research Company

US NaAve

HOUSEHOLD INCOME PROFILE OF THE

Table 4

LEGOLAND MISSOURI RESIDENT MARKET2006

31

Percent Percent PercentExpenditure Category 2001 of Total 2003 of Total 2001 of Total 2003

Consumer Units (thousands) 1 773 . . . 804 . . . 109,900 . . . 115,356

Food and Beverage $6,147 15.2% $5,987 13.8% $5,600 14.4% $5,340Housing $12,840 31.7% $14,022 32.3% $12,666 32.6% $13,432Apparel and Services $1,518 3.7% $1,490 3.4% $1,799 4.6% $1,640Transportation $7,445 18.4% $8,794 20.2% $7,526 19.4% $7,781Health Care $2,283 5.6% $2,533 5.8% $2,124 5.5% $2,416Entertainment $2,150 5.3% $2,047 4.7% $1,909 4.9% $2,060Personal Care Products and Services $519 1.3% $555 1.3% $524 1.4% $527Education $464 1.1% $647 1.5% $640 1.6% $783Miscellaneous 2 $2,629 6.5% $2,732 6.3% $2,457 6.4% $2,783Personal Insurance and Pensions $4,526 11.2% $4,643 10.7% $3,552 9.2% $4,055

Total Expenditures $40,521 100.0% $43,450 100.0% $38,797 100.0% $40,817

___________________1 Consumer units equal the number of households in the geographic area plus any independents in those households.2 Miscellaneous includes categories such as cash contributions, tobacco products/smoking supplies, and reading material.

Source: U.S. Bureau of Labor Statistics Consumer Expenditure Survey, Economics Research Associates,and JB Research Company

Table 5

Kansas City MSA US Average

2001 and 2003COMPARATIVE HOUSEHOLD EXPENDITURE PATTERNS IN THE KANSAS CITY MSA

32

2000 2002 2006

Estimated Hotel / Motel VisitorsNumber of Rooms 27,382 28,763 29,741Available Annual Room-Nights 9,994,430 10,498,495 10,855,465Annual Average Occupancy Rate 62.8% 59.0% 59.5%Annual Room Nights-Sold 6,276,502 6,194,112 6,459,002Average Guest Length of Stay (nights) 1 2.6 2.6 2.3Number of Travel Parties 2,414,039 2,429,064 2,808,261Travel Party Size 1 2.2 2.1 2.2

Estimated Hotel / Motel Visitors 5,188,000 5,101,000 6,178,200

Visiting Friends and Relatives Market 2 2,073,000 2,116,000 2,647,800

Estimated Total Overnight Visitors 7,261,000 7,217,000 8,826,000

Estimated Day-Trip Visitors 3 2,420,000 2,602,000 2,383,000

Total Visitor Volume 9,681,000 9,819,000 11,209,000

Adjustments to Market for Leisure VisitorsOvernight Visitors @ 70% Leisure . . . . . . 6,178,200Day Trippers @ 90% Leisure . . . . . . 2,144,700

Total Leisure Visitor Volume . . . . . . 8,322,900

__________________Note: Figures may not add due to rounding.1 Based on data from the Kansas City CVB, Smith Travel Research (STR), Missouri Department of Tourism, American Travel Survey, and Economics Research Associates/JB Research Company estimates.

Table 6

ESTIMATED LEISURE TOURISM TO THE GREATER KANSAS CITY AREA

2000-2006

33

AverageAnnual

2006 2009 2012 2015 Increase

Resident Market Primary (0-50 miles) 2,083,655 2,153,249 2,225,168 2,299,488 1.1% Secondary (50-100 miles) 797,536 804,714 811,956 819,264 0.3%

Subtotal Resident 2,881,191 2,957,963 3,037,124 3,118,752 0.9%

Leisure Visitors Overnight 6,178,200 6,460,544 6,755,791 7,064,530 1.5% Day-Trippers From 100+ Miles Away 2,144,700 2,177,085 2,209,959 2,243,329 0.5%

Subtotal Tourist 8,322,900 8,637,629 8,965,750 9,307,860 1.3%

Total 11,204,091 11,595,592 12,002,873 12,426,612 1.1%

____________________Source: ESRI Business Analyst Online and JB Research Company

Table 7

AGGREGATE MARKET SUPPORT FOR LEGOLAND MISSOURI2006-2015

35

2001 2002 2003 2004 2005 2006

Midwest Six Flags Great America (Gurnee, IL) 2,900 2,700 2,575 2,300 2,850 2,620

Silver Dollar City (Branson, MO) 2,080 2,100 1,900 1,800 1,910 2,050

Six Flags St. Louis (Eureka, MO) 1,860 1,750 1,675 1,350 1,380 n/a Valleyfair (Shakopee, MN) 1,100 1,050 1,100 1,040 990 n/a

Worlds of Fun (Kansas City, MO) 900 940 880 900 800 n/a

Adventureland USA (Des Moines, IA) 550 550 550 550 550 n/a

Other Regions Six Flags Over Texas (Arlington, TX) 3,000 2,675 2,600 2,200 2,310 n/a Carowinds (Charlotte, NC) 1,850 1,850 1,780 2,010 2,130 n/a

Six Flags Over Georgia (Atlanta, GA) 2,400 2,250 2,100 1,950 2,050 n/a

Six Flags Fiesta Texas(San Antonio, TX) 2,080 1,880 1,700 1,400 1,440 n/a

Name of Park

Total Attendance(thousands)

Table 8

ATTENDANCE TRENDS AT SELECTED REGIONAL THEME PARKS

2001-2006

36

Adult Child 2 Senior 3 Adult Child 2 Senior 3

Midwest Six Flags Great America (Gurnee, IL) $54.99 $34.99 $54.99 $89.99 $89.99 $89.99

Silver Dollar City 4

(Branson, MO) $46.00 $36.00 $44.00 $62.00 $52.00 $56.00

Six Flags St. Louis 5

(Eureka, MO) $44.99 $29.99 $44.99 $69.99 $69.99 $69.99 Valleyfair (Shakopee, MN) $35.95 $11.95 $11.95 $89.95 $42.95 $42.95

Worlds of Fun (Kansas City, MO) $37.95 $11.95 $11.95 $74.95 $49.95 $49.95

Adventureland USA 4

(Des Moines, IA) $29.00 $25.00 $25.00 $75.00 $75.00 $75.00

Other Regions Six Flags Over Texas (Arlington, TX) $47.00 $34.99 $47.00 $79.99 $79.99 $79.99 Carowinds (Charlotte, NC) $39.95 $19.95 $19.95 $69.95 $54.95 $54.95

Six Flags Over Georgia (Atlanta, GA) $49.99 $29.99 $49.99 $69.99 $69.99 $69.99

Six Flags Fiesta Texas (San Antonio, TX) $46.99 $31.99 $46.99 $59.99 $59.99 $59.99

Elitch Gardens (Denver, CO) $44.99 $22.99 Free 6 $54.99 $54.99 $54.99

Lagoon Park 7 $31.95/ (Sandy, UT) $36.95 $20.95 $24.95 $74.95 $74.95 $74.95__________________1 Undiscounted prices exclusive of applicable taxes except where noted

Name of Park

Table 9

ADMISSION PRICES AT SELECTED REGIONAL THEME PARKS2007

One-Day Regular Admission 1 Season Pass

37

Market Segment Low High Kansas City

Resident Primary (0-1 hour) 0.8 6.3 2.2 Secondary (1-2 hours) 1.5 17.6 0.8

Subtotal 2.4 23.8 3.0

Leisure Tourist Domestic Overnight 2.5 16.8 6.8 Foreign Overnight 0.8 10.7 neg Day Visitors . . . . . . 2.2

Subtotal 5.3 21.0 9.0

Total 7.7 39.4 12.0

__________________neg means negligible.1 Component figures do not necessarily add to totals because different parks represent the lows and highs in each category.

Source: CACI, Ltd.; ESRI Business Analyst Online; and JB Research Company

Table 10

Market Size Range forFour Existing Parks 1

(millions)

2006COMPARATIVE LEGOLAND PARK MARKET SIZE

38

Market Segment Low High Low High

Resident Primary (0-1 hour) 23% 35% 8.2% 39.0% Secondary (1-2 hours) 30% 39% 2.8% 37.2%

Subtotal 62% 69% 4.3% 38.1%

Leisure Tourist Domestic Overnight 5% 33% 1.8% 7.8% Foreign Overnight 5% 33% 0.4% 10.9% Day Visitors . . . . . . . . . . . .

Subtotal 31% 38% 2.0% 10.3%

Total 100% 100% 3.6% 18.9%

__________________li ibl

Penetration Rate

Four Existing Parks 1

Table 11

COMPARATIVE LEGOLAND PARKATTENDANCE MIX AND MARKET PENETRATION

2006

Attendance Market Distribution

39

CarlsbadTicket Type USD DK USD 1 GBP USD 1 EURO USD 1

Adult Regular $57.00 kr 229.00 $41.99 £31.00 $60.90 € 29.50 $39.35

Child/Senior Regular $44.00 kr 199.00 $35.60 £24.00 $47.15 € 25.00 $33.35

2-Day Adult $69.00 kr 390.00 $69.80 £61.00 $119.85 € 44.00 $58.65

2-Day Child/Senior $56.00 n/o . . . £47.00 $92.35 € 39.00 $52.00

Season Pass Adult 2 $106.00 kr 445.00 $79.65 £61.00 $119.85 € 49.00 $65.35

Season Pass Child/Senior 2 $86.00 kr 395.00 $70.70 £47.00 $92.34 € 39.00 $52.00

__________________n/o means not offered.1 National currencies converted at official rates in effect as of March 2007; rounded to nearest nickel.2 Unrestricted passes.

Source: Lego Company and JB Research Company

Billund Windsor Günzburg

Table 12

TICKET PRICES AT EXISTING LEGOLAND PARKS2007

40

Revenue Category Low High

Admissions $17.34 $24.43

Food/Beverage $7.48 $10.19

Merchandise $8.76 $10.72

Parking $0.17 $1.86

Total $34.49 $44.64

____________________1 Component figures do not necessarily add to totals because different parks represent the lows and highs in each category.

Source: Lego Company and JB Research Company

Per Capita Revenue Rangeat Four Existing Parks 1

(USD)

Table 13

AVERAGE PER CAPITA REVENUEAT EXISTING LEGOLAND PARKS

2006

41

Estimated AnnualMarket Size 1 Penetration Attendance

Market Segment (thousands) Rate (thousands)

ResidentPrimary (0-50 miles) 2,225 15.0% 334Secondary (50-100 miles) 812 8.0% 65

Subtotal Resident 3,037 13.0% 399

Leisure TourismOvernight or Longer 6,756 6.0% 405Day-Trippers 2,210 2.5% 55

Subtotal Tourist 8,966 5.1% 460

Estimated Induced Visitation . . . . . . 145

Total 12,003 8.4% 1,004

Table 14

PROJECTED ATTENDANCE FOR LEGOLAND MISSOURIYears 1-5

42

Existing Park Projected Existing Park ProjectedMarket Segment Range Kansas City Range Kansas City

Resident Primary (0-1 hour) 23%-35% 33% 8.2%-39.0% 15.0% Secondary (1-2 hours) 30%-39% 6% 2.8%-37.2% 8.0%

Subtotal 62-69% 40% 4.3%-38.1% 13.0%

Leisure Tourist Domestic Overnight 5%-33% 40% 1.8%-7.8% 6.0% Foreign Overnight 5%-33% neg 0.4%-10.9% neg Day Visitors . . . 20% 2 . . . 2.5%

Subtotal 31%-38% 60% 2.0%-10.3% 5.1%

Total 100%-100% 100% 3.6%-18.9% 8.4% 2

_________________neg means negligible.1

Attendance Mix Market Penetration Rate

Table 15

COMPARATIVE BENCHMARKS FORLEGOLAND MISSOURI

43

Per CapitaRevenue Source Revenue

Admissions 1 $24.35

Food/Beverages $7.00

Merchandise $9.25

Parking $1.90

Total $42.50

_________________1 Based on an adult ticket price of $39.95 at an estimated yield of 61 percent.

Stabilized Year(2007 Dollars)

Table 16

PROJECTED PER CAPITA REVENUE FOR LEGOLAND MISSOURI

Source: Lego Company andJB Research Company 44

STATISTICAL APPENDIX

0-50 Miles % 50-100 Miles % 0-100 Miles % USA %

Population2000 4,013,592 12,856,833 16,870,425 281,421,9062006 4,569,898 14,000,608 18,570,506 303,582,3612011 5,014,773 15,126,651 20,141,424 323,785,827

Households (2006)Households 1,605,388 4,419,747 6,025,135 114,049,635Families 1,091,489 3,086,632 4,178,121 76,583,133Average Household Size 2.77 3.11 3.02 2.59

Income (2006)Median Household Income $62,959 $52,478 $54,987 $51,546Average Household Income $88,219 $75,013 $78,532 $71,092Per Capita Income $31,481 $24,011 $25,849 $27,084

Population by Age Group (2006)Total 4,569,898 14,000,609 18,570,506 303,582,3610-4 324,463 7.1% 1,106,048 7.9% 1,429,929 7.7% 20,947,183 6.9%5-9 310,753 6.8% 1,008,044 7.2% 1,318,506 7.1% 19,732,853 6.5%10-14 347,312 7.6% 1,176,051 8.4% 1,522,781 8.2% 21,250,765 7.0%15-19 329,033 7.2% 1,092,048 7.8% 1,429,929 7.7% 21,554,348 7.1%20-24 329,033 7.2% 1,036,045 7.4% 1,374,217 7.4% 21,554,348 7.1%25-34 630,646 13.8% 2,100,091 15.0% 2,729,864 14.7% 40,072,872 13.2%35-44 699,194 15.3% 2,100,091 15.0% 2,785,576 15.0% 44,323,025 14.6%45-54 635,216 13.9% 1,806,079 12.9% 2,451,307 13.2% 44,019,442 14.5%55-64 434,140 9.5% 1,204,052 8.6% 1,634,205 8.8% 31,876,148 10.5%65-74 246,774 5.4% 700,030 5.0% 947,096 5.1% 19,125,689 6.3%

Primary Secondary Total

Table A-1

RESIDENT MARKET CHARACTERISTICS FOR LEGOLAND CARLSBAD2006-2011

Primary and Secondary Markets Benchmark

Source: ESRI Business Analyst Online and JB Research Company46

75-84 196,506 4.3% 476,021 3.4% 687,109 3.7% 13,357,624 4.4%85+ 82,258 1.8% 182,008 1.3% 259,987 1.4% 5,464,482 1.8%

Median Age 35.2 32.9 33.1 36.5

Age 0-14 Children's Market2006 982,528 21.5% 3,290,143 23.5% 4,271,216 23.0% 61,930,802 20.4%2011 1,018,000 20.3% 711,091 20.6% 4,350,548 21.6% 64,109,594 19.8%

Households with Household Income (2006)Household Income Base 1,605,372 4,419,627 6,025,004 114,048,424< $15,000 146,089 9.1% 574,552 13.0% 716,975 11.9% 14,142,005 12.4%$15,000 - $24,999 128,430 8.0% 437,543 9.9% 566,350 9.4% 11,632,939 10.2%$25,000 - $34,999 152,510 9.5% 472,900 10.7% 626,600 10.4% 12,203,181 10.7%$35,000 - $49,999 208,698 13.0% 618,748 14.0% 825,426 13.7% 17,221,312 15.1%$50,000 - $74,999 292,178 18.2% 817,631 18.5% 1,108,601 18.4% 22,239,443 19.5%$75,000 - $99,999 226,357 14.1% 534,775 12.1% 759,151 12.6% 14,027,956 12.3%$100,000 - $149,999 250,438 15.6% 565,712 12.8% 813,376 13.5% 13,799,859 12.1%$150,000 - $199,999 93,112 5.8% 185,624 4.2% 277,150 4.6% 4,219,792 3.7%$200,000 + 107,560 6.7% 216,562 4.9% 319,325 5.3% 4,561,937 4.0%

Race (2006)Total 4,569,899 14,000,608 18,570,507 303,582,361White 3,016,133 66.0% 6,734,292 48.1% 9,749,516 52.5% 221,615,124 73.0%Black 214,785 4.7% 1,120,049 8.0% 1,337,077 7.2% 38,251,377 12.6%American Indian 36,559 0.8% 112,005 0.8% 148,564 0.8% 2,732,241 0.9%Asian or Pacific Islander 456,990 10.0% 1,694,074 12.1% 2,154,179 11.6% 13,357,624 4.4%Some Other Race 598,657 13.1% 3,556,154 25.4% 4,159,794 22.4% 19,429,271 6.4%Two or More Races 251,344 5.5% 770,033 5.5% 1,021,378 5.5% 8,500,306 2.8%Hispanic Origin 1,293,281 28.3% 6,748,293 48.2% 8,041,030 43.3% 44,930,189 14.8%

Source: ESRI Business Analyst Online and JB Research Company47

0-50 Miles % 50-100 Miles % 0-100 Miles % USA %

Population2000 1,942,781 783,812 2,726,593 281,421,9062006 2,083,655 797,536 2,881,191 303,582,3612011 2,197,803 807,835 3,005,638 323,785,827

Households (2006)Households 821,542 317,415 1,138,958 114,049,635Families 538,476 212,390 750,866 76,583,133Average Household Size 2.48 2.42 2.46 2.59

Income (2006)Median Household Income $56,324 $41,263 $51,692 $51,546Average Household Income $72,761 $52,040 $66,986 $71,092Per Capita Income $28,972 $21,205 $26,822 $27,084

Population by Age (2006)Total 2,083,658 797,535 2,881,192 303,582,3610-4 Years 150,017 7.2% 51,840 6.5% 201,683 7.0% 20,947,183 6.9%5-9 Years 143,766 6.9% 47,852 6.0% 190,159 6.6% 19,732,853 6.5%10-14 Years 143,766 6.9% 50,245 6.3% 195,921 6.8% 21,250,765 7.0%15-19 Years 145,850 7.0% 55,030 6.9% 201,683 7.0% 21,554,348 7.1%20-24 Years 152,100 7.3% 55,827 7.0% 210,327 7.3% 21,554,348 7.1%25-34 Years 283,365 13.6% 91,717 11.5% 377,436 13.1% 40,072,872 13.2%35-44 Years 312,535 15.0% 104,477 13.1% 417,773 14.5% 44,323,025 14.6%45-54 Years 306,284 14.7% 118,833 14.9% 426,416 14.8% 44,019,442 14.5%55-64 Years 210,440 10.1% 91,717 11.5% 302,525 10.5% 31,876,148 10.5%65-74 Years 116,680 5.6% 63,005 7.9% 178,634 6.2% 19,125,689 6.3%

Table A-2

RESIDENT MARKET CHARACTERISTICS FOR PROPOSED LEGOLAND MISSOURI2006-2011

Primary and Secondary Markets BenchmarkPrimary Secondary Total

Source: ESRI Business Analyst Online and JB Research Company 48

0-50 Miles % 50-100 Miles % 0-100 Miles % USA %

Primary and Secondary Markets BenchmarkPrimary Secondary Total

75-84 Years 81,259 3.9% 44,662 5.6% 126,772 4.4% 13,357,624 4.4%85+ Years 33,337 1.6% 20,736 2.6% 54,743 1.9% 5,464,482 1.8%

Median Age 35.7 39.9 36.7 36.5

0-14 Children's Market2006 437,568 21.0% 149,937 18.8% 587,763 20.4% 61,930,802 20.4%2011 457,143 20.8% 151,873 18.8% 610,144 20.3% 0 0.0%

Households with Household Income (2006)Household Income Base 821,525 317,415 1,138,940 114,048,424< $15,000 77,223 9.4% 46,977 14.8% 124,144 10.9% 14,142,005 12.4%$15,000 - $24,999 73,937 9.0% 43,486 13.7% 117,311 10.3% 11,632,939 10.2%$25,000 - $34,999 80,509 9.8% 42,216 13.3% 123,006 10.8% 12,203,181 10.7%$35,000 - $49,999 125,693 15.3% 56,817 17.9% 182,230 16.0% 17,221,312 15.1%$50,000 - $74,999 177,449 21.6% 65,705 20.7% 243,733 21.4% 22,239,443 19.5%$75,000 - $99,999 118,300 14.4% 31,742 10.0% 150,340 13.2% 14,027,956 12.3%$100,000 - $149,999 106,798 13.0% 21,902 6.9% 128,700 11.3% 13,799,859 12.1%$150,000 - $199,999 31,218 3.8% 4,126 1.3% 35,307 3.1% 4,219,792 3.7%$200,000 + 29,575 3.6% 4,126 1.3% 34,168 3.0% 4,561,937 4.0%

Race (2006)Total 2,083,654 797,537 2,881,192 303,582,361White 1,671,091 80.2% 727,354 91.2% 2,397,152 83.2% 221,615,124 73.0%Black 252,122 12.1% 32,699 4.1% 285,238 9.9% 38,251,377 12.6%American Indian 12,502 0.6% 7,178 0.9% 20,168 0.7% 2,732,241 0.9%Asian or Pacific Islander 50,008 2.4% 4,785 0.6% 54,743 1.9% 13,357,624 4.4%Some Other Race 52,091 2.5% 11,963 1.5% 63,386 2.2% 19,429,271 6.4%Two or More Races 43,757 2.1% 13,558 1.7% 57,624 2.0% 8,500,306 2.8%Hispanic Origin 125,019 6.0% 28,711 3.6% 152,703 5.3% 44,930,189 14.8%

Source: ESRI Business Analyst Online and JB Research Company 49

KANSAS SCHOOL DISTRICTS County 2005-06 2004-05 2003-04 2002-03 2001-02 2000-01 1999-2000ATCHISON CO. COMMUNITY SCHOOLS - USD 377 Atchison 769 773 759 776 788 792 821ATCHISON PUBLIC SCHOOLS - USD 409 Atchison 1,646 1,651 1,676 1,702 1,684 1,720 1,746BALDWIN CITY - USD 348 Douglas 1,416 1,379 1,376 1,372 1,396 1,387 1,333BASEHOR-LINWOOD - USD 458 Leavenworth 2,131 2,091 2,102 2,075 2,057 2,048 1,714BLUE VALLEY - USD 229 Johnson (KS) 19,860 19,345 18,906 18,489 17,876 17,111 16,632BONNER SPRINGS - USD 204 Wyandotte 2,301 2,293 2,294 2,225 2,184 2,277 2,265CENTRAL HEIGHTS - USD 288 Franklin 619 645 649 661 639 657 679DE SOTO - USD 232 Johnson (KS) 5,207 4,795 4,491 4,104 3,657 3,249 2,958EASTON - USD 449 Leavenworth 707 726 736 730 704 689 712EUDORA - USD 491 Douglas 1,339 1,285 1,263 1,195 1,207 1,182 1,179FT. LEAVENWORTH - USD 207 Leavenworth 1,643 1,743 1,915 1,989 2,046 1,896 1,893GARDNER-EDGERTON - USD 231 Johnson (KS) 3,865 3,593 3,401 3,215 3,097 2,879 2,670JAYHAWK - USD 346 Linn 588 587 618 633 638 656 610KANSAS CITY - USD 500 Wyandotte 20,022 20,440 20,868 20,775 21,215 21,173 20,726LANSING - USD 469 Leavenworth 2,216 2,159 2,065 2,083 1,932 1,978 1,980LAWRENCE - USD 497 Douglas 10,302 10,202 10,022 10,154 10,418 10,459 10,508LEAVENWORTH - USD 453 Leavenworth 4,147 4,170 4,252 4,372 4,253 4,338 4,270LOUISBURG - USD 416 Miami 1,536 1,483 1,449 1,348 1,403 1,392 1,375OLATHE - USD 233 Johnson (KS) 24,533 23,509 22,794 22,023 21,470 20,703 20,233OSAWATOMIE - USD 367 Miami 1,246 1,212 1,238 1,229 1,262 1,263 1,350OTTAWA - USD 290 Franklin 2,459 2,445 2,472 2,503 2,431 2,474 2,329PAOLA - USD 368 Miami 2,106 2,105 2,167 2,116 2,134 2,124 2,119PIPER/KANSAS CITY - USD 203 Wyandotte 1,456 1,391 1,320 1,313 1,302 1,308 1,321PLEASANTON - USD 344 Linn 428 415 423 422 415 412 427PRAIRIE VIEW - USD 362 Linn 1,034 1,046 999 1,018 994 983 986SHAWNEE MISSION - USD 512 Johnson (KS) 28,523 28,958 29,389 29,824 30,381 30,765 31,238SPRING HILL - USD 230 Johnson (KS) 1,713 1,673 1,598 1,558 1,560 1,488 1,427TONGANOXIE - USD 464 Leavenworth 1,706 1,624 1,558 1,546 1,477 1,451 1,476TURNER/KANSAS CITY - USD 202 Wyandotte 3,959 3,885 3,856 3,856 3,671 3,704 3,729WELLSVILLE - USD 289 Franklin 824 837 819 799 773 787 789WEST FRANKLIN - USD 287 Franklin 913 914 957 947 978 985 996

Subtotal Kansas 151,214 149,374 148,432 147,052 146,042 144,330 142,491

MISSOURI SCHOOL DISTRICTSADRIAN R-III Bates 697 678 686 657 680 687 720ARCHIE R-V Cass 570 525 528 548 483 496 524BALLARD R-II Bates 142 525 528 548 152 154 144BELTON 124 Cass 4,587 144 172 165 4641 4,636 4,572BLUE SPRINGS R-IV Jackson 13,339 13,237 12,923 12,862 12,686 12,564 12,545BRAYMER C-4 Caldwell 355 341 370 365 364 401 414BRECKENRIDGE R-I Caldwell 109 105 111 108 112 109 101BUTLER R-V Bates 1,083 1,096 1,093 1,154 1,120 1,168 1,130CAMERON R-I Clinton 1,715 1,683 1,631 1,603 1,631 1,581 1,604CENTER 58 Jackson 2,424 2,372 2,497 2,562 2,566 2,649 2,695CHILHOWEE R-IV Johnson (MO) 140 137 141 145 159 168 170CLINTON CO. R-III Clinton 868 840 829 838 823 817 839CONCORDIA R-II Lafayette 478 494 477 491 489 460 460COWGILL R-VI Caldwell 43 49 52 59 57 61 56DREXEL R-IV Cass 346 360 374 370 374 377 363EAST LYNNE 40 Cass 136 164 166 161 156 165 168EXCELSIOR SPRINGS 40 Clay 2,927 2,944 2,974 2,968 2,990 2,964 2,980FORT OSAGE R-I Jackson 4,877 4,852 4,859 4,875 4,816 4,846 4,831

ANNUAL ENROLLMENT BY PUBLIC SCHOOL DISTRICT IN THE KANSAS CITY MSA

Table A-3

Source: Metrodataline.org and JB Research Company 50

KINGSVILLE R-I Johnson (MO) 269 287 293 295 286 291 277KNOB NOSTER R-VIII Johnson (MO) 1,595 1,665 1,710 1,819 1,899 1,949 1,852LAFAYETTE CO. C-1 Lafayette 1,050 1,037 1,062 1,060 1,075 1,050 1,058LATHROP R-II Clinton 860 852 890 864 842 889 882LAWSON R-XIV Ray 1,351 1,315 1,344 1,316 1,273 1,262 1,269LEE'S SUMMIT R-VII Jackson 16,458 15,934 15,496 14,861 14,523 14,185 13,920LEETON R-X Johnson (MO) 350 343 351 364 373 356 344LEXINGTON R-V Lafayette 1,009 1,021 1,042 1,066 1,097 1,140 1,137LIBERTY 53 Clay 8,463 7,982 7,640 7,428 7,055 6,793 6,517LONE JACK C-6 Jackson 535 502 498 479 464 485 467MIAMI R-I Bates 239 228 231 239 267 308 302MIDWAY R-I Cass 567 561 576 580 561 556 563MIRABILE C-1 Caldwell 48 44 37 22 35 39 42MISSOURI CITY 56 Clay 39 39 50 47 53 61 62NEW YORK R-IV Caldwell 31 36 46 44 45 48 46NORTH KANSAS CITY 74 Clay 17,369 17,193 17,003 17,030 16,977 16,768 16,920NORTH PLATTE CO. R-I Platte 715 705 703 728 715 696 726OAK GROVE R-VI Jackson 2,040 2,060 1,974 1,960 1,902 1,862 1,845ODESSA R-VII Lafayette 2,256 2,252 2,322 2,306 2,324 2,367 2,365ORRICK R-XI Ray 444 450 462 456 464 449 440PARK HILL Platte 9,648 9,498 9,460 9,343 9,171 9,004 8,845PLATTE CO. R-III Platte 2,721 2,541 2,406 2,280 2,148 2,066 1,957PLEASANT HILL R-III Cass 2,130 2,103 2,026 1,972 1,867 1,790 1,740POLO R-VII Caldwell 416 388 401 397 387 392 402RAYMORE-PECULIAR R-II Cass 5,368 5,169 4,886 4,627 4,444 4,203 4,116RAYTOWN C-2 Jackson 8,765 8,664 8,570 8,548 8,426 8,393 8,367RICH HILL R-IV Bates 436 469 494 485 492 510 496RICHMOND R-XVI Ray 1,740 1,726 1,734 1,772 1,765 1,823 1,843SANTA FE R-X Lafayette 428 424 409 402 412 399 397SHERWOOD CASS R-VIII Cass 924 913 926 924 929 918 865SMITHVILLE R-II Clay 2,071 1,955 1,876 1,789 1,703 1,632 1,541STET R-XV Ray 104 103 98 92 99 109 94STRASBURG C-3 Cass 94 107 116 117 120 123 113WARRENSBURG R-VI Johnson (MO) 3,213 3,145 3,122 3,167 3,104 3,181 3,232WELLINGTON-NAPOLEON R-IX Lafayette 463 437 442 458 431 420 390WEST PLATTE CO. R-II Platte 644 656 690 686 689 703 723

Subtotal Missouri 189,121 184,182 183,800 182,965 186,216 185,647 186,716

TOTAL KANSAS CITY MSA 340,335 333,556 332,232 330,017 332,258 329,977 329,207

Source: Metrodataline.org and JB Research Company 51

County Total White Alone

Black/ African

American Alone

American Indian Alone Asian Alone

Native Hawaiian/

Pacific Islander

Alone OtherTwo or more

races

Hispanic/Latino (of any

race)*Housing

UnitsTotal

FamiliesKansas

Johnson 477,129 432,414 13,180 1,609 14,359 164 7,935 7,468 20,130 192,798 127,765Leavenworth 70,466 58,859 7,829 565 753 90 845 1,525 2,664 25,368 17,703Miami 29,880 28,505 596 169 60 3 142 405 482 11,601 8,151Wyandotte 156,075 88,481 44,764 1,228 2,752 75 13,990 4,785 27,527 65,013 38,252

MissouriCass 86,767 82,863 1,301 507 426 31 461 1,178 2,030 33,734 24,215Clay 190,395 174,732 5,730 952 2,839 185 2,444 3,513 7,195 79,464 51,703Clinton 19,639 18,929 325 69 34 1 59 222 226 8,218 5,474Jackson 655,201 453,678 155,657 3,330 9,060 1,204 16,999 15,273 37,782 290,020 165,447Lafayette 33,952 32,352 817 106 88 9 202 378 439 14,168 9,304Platte 77,975 70,912 3,016 357 1,183 161 863 1,483 2,420 33,025 21,388Ray 23,630 22,678 426 90 48 1 107 280 291 9,566 6,607

MSA Total 1,821,109 101,186 1,464,403 233,641 8,982 31,602 1,924 44,047 36,510 762,975 476,009

County 0 to 4 5 to 9 10 to 14 15 to 17 18 to 20 21 to 64 65 and over Median AgeTotal

Households

Median Household

IncomeKansas

Johnson 35,440 35,182 35,673 21,613 16,591 284,481 48,149 35.1 185,336 $69,580Leavenworth 4,723 4,974 5,121 3,235 2,835 42,258 7,320 36.7 23,989 $45,900Miami 2,039 2,129 2,259 1,585 1,241 17,012 3,615 36.5 10,949 $52,474Wyandotte 12,885 11,852 12,510 6,851 6,582 87,157 18,238 31.9 58,912 $37,724

MissouriCass 6,208 6,591 6,929 4,249 3,306 48,850 10,634 35.7 32,129 $56,749Clay 13,641 13,343 13,387 8,259 7,241 113,363 21,161 34.9 75,642 $54,271Clinton 1,290 1,297 1,446 968 850 10,867 2,921 37.5 7,463 $47,241Jackson 46,382 44,607 47,677 27,921 25,157 380,373 83,084 34.9 267,986 $44,214Lafayette 2,083 2,257 2,520 1,728 1,345 18,721 5,298 37.4 12,994 $41,739Platte 5,220 5,424 5,435 3,453 2,906 48,267 7,270 35.8 31,294 $62,703Ray 1,547 1,667 1,861 1,207 977 13,079 3,292 36.7 8,926 $45,900

MSA Total 131,458 129,323 134,818 81,069 69,031 1,064,428 210,982 34.9 715,620 $52,118

Note: Hispanic/Latino population is not additive, but included as applicable in the racial distribution.Four Counties were added in 2003. They include Franklin and Linn counties in Kansas and Bates and Caldwell counties in Missouri. These counties are not included in this analysis.

Table A-4

Population (Race and Ethnic Background)

Population (Age in Years)

KANSAS CITY MSA DEMOGRAPHIC CHARACTERISTICS BY COUNTY2003

Source: The Greater Kansas City Chamber of Commerce, Claritas, Inc., Metra Dataline and JB Research Company 52

Item 2002-2003 2001-2002 2000-2001 1999-2000

Number of consumer units (thousands) 804 774 773 776Consumer unit characteristics:

Income before taxes (see note below) $57,460 $59,689 $56,958 $51,298Averages:

Age of reference person 47.2 48.3 49.1 45.6Persons 2.7 2.6 2.5 2.5Children under 18 0.8 0.7 0.7 0.7Persons 65 and over 0.2 0.3 0.3 0.2Earners 1.5 1.5 1.4 1.4Vehicles 2.1 2.1 2.1 2.1Percent Homeowner 69 71 75 69

Average annual expenditures $43,450 $43,201 $40,520 $37,647Food 5,672 5,736 5,835 5,302

Food at home 3,421 3,497 3,460 3,030Cereals and bakery products 496 525 533 449Meats, poultry, fish, and eggs 876 906 873 771Dairy products 388 368 391 349Fruits and vegetables 545 573 574 544Other food at home 1,115 1,125 1,089 917Food away from home 2,250 2,239 2,375 2,272

Alcoholic beverages 313 322 312 274Housing 14,022 13,962 12,840 11,513

Shelter 7,848 7,801 7,209 6,606Owned dwellings 5,463 5,506 5,248 4,603Rented dwellings 2,007 1,868 1,552 1,683Other lodging 378 427 409 320Utilities, fuels, and public services 3,329 3,406 3,184 2,645Household operations 718 645 554 549Housekeeping supplies 560 557 535 454Household furnishings and equipment 1,567 1,553 1,356 1,259

Apparel and services 1,490 1,484 1,518 1,722Transportation 8,794 8,087 7,445 7,889

Vehicle purchases (net outlay) 4,255 3,579 3,055 3,824Gasoline and motor oil 1,559 1,551 1,587 1,341Other vehicle expenses 2,655 2,635 2,527 2,403Public transportation 324 321 276 321

Health care 2,533 2,528 2,283 1,931Entertainment 2,047 2,239 2,150 1,864Personal care products and services 555 511 519 524Reading 166 156 155 144Education 647 541 464 562Tobacco products and smoking supplies 301 287 325 339Miscellaneous 640 773 722 743Cash contributions 1,625 1,598 1,427 968Personal insurance and pensions 4,643 4,978 4,526 3,873

Life and other personal insurance 397 417 442 449Pensions and Social Security 4,246 4,561 4,084 3,424

Note: Components of income and taxes are derived from complete income reporters only.

KANSAS CITY MSA CONSUMER EXPENDITURE PATTERNS

Table A-5

Source: Metrodataonline.org and JB Research Company 53

2004 2003 2002 2001

Total employment by place of work 1 1,240,397 1,224,318 1,225,719 1,231,863

Employment by type Wage and salary employment 1,024,371 1,016,498 1,025,064 1,038,186 Proprietors employment 216,026 207,820 200,655 193,677 Farm proprietors employment 14,554 14,544 14,991 14,848 Nonfarm proprietors employment 2 201,472 193,276 185,664 178,829

Employment by industry Farm employment 16,022 16,020 16,511 16,458 Nonfarm employment 1,224,375 1,208,298 1,209,208 1,215,405 Private employment 1,064,611 1,048,897 1,049,601 1,058,157 Forestry, fishing, related activities, and other 3 (D) (D) (D) (D) Mining (D) (D) (D) (D) Utilities (E) (D) (D) 4,845 (D) Construction 72,964 72,896 71,513 73,422 Manufacturing (E) 87,062 85,872 87,159 90,249 Wholesale trade (E) (D) (D) 54,883 55,719 Retail Trade (E) 139,863 137,900 132,050 131,920 Transportation and warehousing (E) 48,764 48,120 49,240 51,545 Information (E) 49,052 51,693 54,857 59,648 Finance and insurance (E) 73,637 72,797 73,216 71,962 Real estate and rental and leasing (E) 47,923 46,123 44,021 43,121 Professional and technical services (E) 87,060 82,384 83,001 83,102 Management of companies and enterprises (E) 13,500 12,926 13,781 15,523 Administrative and waste services (E) 76,423 71,945 71,247 71,758 Educational services (E) 18,796 17,510 16,736 16,160 Health care and social assistance (E) 104,182 100,348 96,847 96,001 Arts, entertainment, and recreation (E) 28,385 27,531 26,993 26,499 Accommodation and food services (E) 79,121 77,584 76,909 75,884 Other services, except public administration (E) 66,655 67,054 66,964 64,598 Government and government enterprises 159,764 159,401 159,607 157,248

Federal, civilian 26,668 27,022 27,158 27,345 Military 11,617 11,864 11,915 12,053 State and local 121,479 120,515 120,534 117,850

State government 17,958 17,686 17,608 17,453 Local government 103,521 102,829 102,926 100,397

KANSAS CITY MSA EMPLOYMENT BY PLACE OF WORK

Table A-6

2001-2004

Source: Regional Economic Information System, Bureau of Economic Analysis Table CA25N;and JB Research Company 54