HomeMy WebLinkAboutCity Council Meeting - Council Workshop - Minutes - 11/20/2012 �N T
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Kent City Council Workshop
November 20, 2012
Council Members Present: Albertson, Boyce, Higgins, Perry, Ralph, and Thomas
The meeting was called to order at 5:30 p.m. by Council President Higgins.
A brief discussion on how Council members wish to receive emails relating to
Neighborhood Council concerns was held, and it was determined that they would
be provided only with information on significant issues at the time they occur,
rather than on all issues in a weekly report.
z
ShoWare Center. Ben Wolters explained that three reports will be given. ;
Economic Impact Analysis. Mark Goodman of Community Attributes gave a
summary of the study, including patron spending impact, full economic impact,
and municipal revenues.
Revenue Growth Initiatives and Recommendations. Tim Higgins and Steve
Tadlock outlined the following initiatives which have the potential to increase
revenues: live event promotion, paid parking, facility fee, ice time rental,
advertising, scheduling flexibility, and "VIP Club" membership.
Seattle Thunderbirds Report. Russ Farwell of the Seattle Thunderbirds gave an
overview of their marketing and advertising efforts, and noted the need for more
high profile events.
The presenters then responded to questions from Council members on various
issues including the cost and financial risk potential of events, accountability,
elimination of negative comments, and the impacts of paid parking.
I
The meeting adjourned at 6:40 p.m.
Brenda Jacober, CMC
City Clerk
ShoWare
9:1,11n
Historical Analysis
Revenue Growth Initiatives
and
Recommendations
October 26, 2012
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'I
Page 1 of 14
Private Management Par Public Facilities
Introduction and Background
In 2006,the U.S. and Pacific Northwest economies were robust. Credit use was abundant,home values
were soaring,and many consumers were tapping the increased equity on their homes for non-essential
spending(home renovations and/or furnishings,travel, entertainment,etc.) The City of Kent
commissioned a feasibility study conducted by Brailsford&Dunlavey to ascertain the viability of
constructing and operating a multi-purpose sports and entertainment venue. This report was completed in
February 2007. The touring entertainment business was strong, and many new facilities which had
opened within the most recent several years were enjoying successful start-up periods. Coupled with the
prospect of a long-term anchor sports tenant,the decision to move forward with the Kent Events Center
(subsequently renamed ShoWare Center)was made by the City.
Later in 2007, proposals for management of The Center were requested.Although significantly more
conservative than the B&D study relative to potential financial performance,the proposals were reflective
of the industry climate at that time. During the arena's construction in 2008, what is now being called
"The Great Recession"hit the entire U.S. economy. The longevity of the situation and the impact on the
entertainment business were not yet known, but over the subsequent few years it became apparent that
there were fundamental changes in the way venues operate and attract business, and how consumers and
businesses choose to spend and allocate their discretionary funds.
This report provides a snapshot of the competitive local marketplace for hosting live entertainment
events,and a visual summary of the first four years of ShoWare Center operations and revenue
generation, highlighting contributory factors to the results. Recognizing how the competitive
marketplace and other contributory factors impact revenue generation, immediate steps to streamline the
operation of the venue were conducted and continual, ongoing efforts are focused to reduce overall
operating costs and mitigate the impact and challenges of revenue generation.
Understanding what steps have been taken and what has been achieved, some revenue growth initiatives
recommendations will be presented that, if implemented, could serve to improve the overall financial
performance of the facility in the coming years. Knowing that these recommendations may have
obstacles, and have significant variables which can impact both their direct and indirect benefits,we look
forward to working with the City of Kent in reviewing the expectations and goals of ShoWare Center in
both the current environment and in the years to come.
Page 2 of 14
r
Recommendations
From all the information contained herein, it is extremely important to realize that the change in economic
climate since the ShoWare Center project initially began has resulted in a significant change in the touring
entertainment business, in how events are booked, and in how both consumers and businesses spend
money. From the event promoter/producer standpoint, as there are many venues competing for a share of
an inconsistent supply of indoor entertainment, all the revenue streams associated with events are
expected to be available in some fashion of partnership or risk mitigation. The days of simply renting the
facility and making guaranteed revenue are over for the most part. Many concert promoters have either
become venue operators themselves, or have exclusive affiliations with venues to drive programming to
those venues in which they share the risk/reward. The nation's two largest concert promoters, Live
Nation and AEG, both have multiple venue affiliations in the greater Seattle market and are not
incentivized to bring shows to ShoWare Center. To be able to compete in this new climate, ShoWare
Center will need to participate as a financial partner to attract enough events to have a chance for revenue
growth. Programming is the catalyst that drives most of the revenue growth opportunities.
Statistical data for the first four years of ShoWare Center operations indicate that the number of total
events has increased, and the event revenues have remained consistent (less than 10% variance from the
highest to lowest). Community-based events, catering functions, and the cultivation of local promoters
have provided the activity level to maintain this base level of business. The 10-year naming rights and
ticketing partnership with ShoWare cultivated by SMG also provides a significant revenue constant for
the next six years. The areas of significant revenue decline have been suites and club seats.
In an effort to increase revenue, a hockey-only annual suite license package was developed and has
yielded a few additional leases. Additionally, an SMG emphasis on renting suites on an individual event
basis has helped recoup a portion of the lost annual suite lease revenue. Two factors will be needed to
significantly increase the total suite revenues — a sustained economic recovery, especially for area
businesses, and higher profile entertainment programming.
The decline in club seats is also attributable to two main points. Supply and demand, and entertainment
event opportunities. At the historic and likely foreseeable attendance levels for hockey, fans can enjoy
the location and amenities of club seating on a per-game basis, without needing to make an every game
commitment. Under the current financial formula, ShoWare center receives approximately 1/2 less
revenue per seat on a club seat sold on an individual game basis than on a season basis. Unless more or
different value-added amenities are included in the program, we believe it is unlikely club seat revenue
will return to its opening season level. The current benefit of providing the opportunity to purchase
priority seating for non-hockey entertainment events could increase the perceived value, with the
implementation of the programming initiatives presented.
Although the advertising revenues have not dropped as dramatically as premium seating(down 12% from
opening year), they have decreased slightly every year,a trend which is not uncommon in similar venues.
With the hockey team as the agent in charge of selling both team and arena advertising, this is a non-
traditional arrangement that could inhibit revenue growth in this area. The more customary industry
arrangement has the arena management selling"arena inventory" and the tenant selling"team inventory".
A third party solution on a commission-only basis could increase sales without adding overhead. The
hockey team would still receive its contractual team share on all sales and commission on existing client
Page 3 of 14
renewals, but the commission would go to a third party for new sales. In this case, the likelihood of
additional revenues for both ShoWare Center and the Thunderbirds could increase.
Whereas the potential benefit is not easily quantified, the recommendation of expanding scheduling
flexibility with the Thunderbirds could be relevant to revenue growth. The Thunderbirds have continued
to work with SMG staff on scheduling non-hockey events; however, there is a need for more flexibility
during their season. The ability to schedule events when available and capitalize on opportunities is
paramount to maximizing revenue growth. However, based on available information the WHL American
Division operating guidelines do not currently provide for this type of scheduling scenario. We would
recommend engaging the league in a dialogue regarding this issue in an effort to provide greater
flexibility.
The other recommendations include potential opportunities to generate some additional revenue based on
existing business and community interests. Increasing the facility fee could be implemented to keep pace
with industry trends. While the proposed facility fee amount would reflect an increase over fees charged
amongst venues within the region, it is not anticipated that this would become a barrier to event
generation. Increases to facility fees such as this have not proven to be a deterrent to patron ticket
purchases, or be a point of contention with show deal negotiations and approvals. Promoters also
understand the additional revenue would become an increased revenue stream for any partnership or risk
mitigation scenarios. The VIP experience would be attractive to those interested in paying for additional
services to enhance their entertainment experience. The benefits and associated fees of this type of
program can be fluid and adjusted/tailored on a per event basis.
As demand for ice time grows in the market, the ice time rental is a plan to capitalize on dark day
scenarios. The allure of playing or skating on ice within facilities where spectators pay to view similar
activities has proven successful over many years, oftentimes as "post-event skates" after hockey games or
other ice events. With local youth and adult programs in the area, addressing this demand could be a
worthwhile initiative. This initiative would be implemented in coordination and discussion with the Kent
Valley Hockey Center.
The revenue assumptions made back in 2006-7 during conception of the ShoWare Center project are no
longer applicable in the today's economic environment. The timing of the nationwide economic recession
essentially negated the"honeymoon period"new venues typically enjoy and the associated initial
financial prosperity. The revenue growth outlook for the next several years at ShoWare Center is focused
on a central theme—making educated decisions to determine when to take calculated risks to increase
programming of entertainment events with a reasonable probability of local public appeal. As with any
risk venture,there are no guarantees of success. However, based on our experience in managing multiple
facilities we believe the implementation of recommendations contained herein could serve at a minimum
to stabilize the operating subsidy to average historic levels, and have the realistic potential to further
reduce the annual operating subsidy of ShoWare Center over the next several years. SMG will continue
to manage operating expenses, maintain the City's venue and assets,work with both local and national
groups on varied uses of the facility, and provide quality service to the patrons, supporters and users of
ShoWare Center. We look forward to working with the City and the Thunderbirds on implementing any
or all of the initiatives for the benefit of all.
Page 4 of 14
Regional Venue Competition
As most revenue generation directly correlates to success in attracting and hosting events, it is important
to recognize the competitive landscape of the local marketplace.The following chart lists the venues
within approximately a one hour drive(except The Gorge)which host live entertainment events.
Distance From Venue
Venue Capacity ShoWare Center A iWation
Benaro a Hall 2500 17 miles
Chateau St. Michelle 4300 20 miles Live Nation
Christian Faith Center 5000 5 miles
Comcast Arena 10000 46 miles
Emerald Queen Casino 2000 10 miles
Gorge Amphitheatre 20000 150 miles Live Nation
KeyArena 15500 15 miles
Ma moor Park 5000 25 miles
McCaw Hall 2960 15 miles
Paramount Theater 2807 20 miles
Puyallup Fair 10580 17 miles AEG
Showbox At The Market 1997 15 miles AEG
Showbox SODO 2050 15 miles AEG
Sno ualmie Casino 2000 30 miles
Tacoma Dome 22500 17 miles
Tulalip Amphitheatre 2400 55 miles
WAMU Theater 7000 15 miles AEG
White River Amphitheatre 20000 15 miles Live Nation
Woodland Park Zoo 3800 25 miles
Two venues excluded from the chart due to their size are Century Link Field and Safeco Field. Although
not direct competition to host events, their NFL,MLS and MLB sports tenants and other events serve as
formidable competition for consumer discretionary spending on entertainment.
National Promoter Venue Affiliations
• The two largest concert promoters in the country;AEG and Live Nation,are incentivized to bring
shows to venues they own or have risk partner/revenue sharing affiliations.
• Currently in the absence of a full financial risk partnership on events,where the city would share
in both financial reward and risk,AEG has indicated they will only consider ShoWare Center
when their affiliated venues are not available.
• SMG staff continues to work with Live Nation for future events, but have been told that the
ShoWare Center seating capacity does not meet their needs for most of the larger shows they are
now promoting.
Page 5 of 14
The following graphs and associated comments will serve to illustrate the financial performance of
ShoWare Center and trends during its four years of operation. This historical perspective will
indicate what has taken-place and how it has affected revenue generated.
Number of Events
190 82��' 776
180
170
160 — —
Events 150 ;
140 --
130
2009 2010 2011 2012
(Forecast)
Hockey games 47 33 41 34
• Non-hockey events have increased 33% since the opening year.
• Local promoter development,primarily initiated by SMG, has accounted for 44%of concerts
hosted thus far.
• SMG works closely with every community organization in the City of Kent and surrounding
municipalities to bring their event to ShoWare Center. This effort has further contributed to
increased usage of the venue.
• Maintaining or increasing event activity will likely require ShoWare to partner as a co-promoter
to mitigate risk, or to self-promote. This is becoming an industry requirement for secondary and
tertiary market venues to compete for events.
Event Attendance
350,000 307.24 294,187
300,000
250,000
200,000
150,000
100,000 —50,000
2009 2010 2011 2012(Forecast)
Hockey games 47 33 41 34
Non-hockey events 106 131 141 142
• Hockey game attendance was relatively consistent the first three years,and forecasting a 10%
increase this year,mainly attributable to an increase in attendance during the second half of 2011-
2012 season.
• Whereas total attendance has increased due to event volume,attendance per event varies up to
10%each year based on event mix.
Page 6 of 14
Event Income
1
$1,400,000 295 913
1,191,554 1,215,734 1,211,061
$1,200,000
$1,000,000 1 6
$800,000 18 6
$ 00,000 Non-Hockey Income
$400,000 Hockey Income
$200,000 36 k::jM 2 55
$-
2009 2010 2011 2012
(Forecast)
Hockey Games 47 33 41 34
Hockey income per game $8,901 $9,694 $8,998 $11,278
Non-hockey events 106 131 141 142
Non-hockey income/event $7,295 $6,839 $6,574 $5,828
• Event income includes net rental income, food and beverage income, novelty/merchandise
income, facility fees,ticketing royalties, and individual non-hockey event suite rental income
• Annual variances of hockey game income can be significant due to number of games per
calendar year(spans two league seasons, and playoff potential)
• Non-hockey annual income has increased from the opening year,however per event income has
steadily declined due to tighter deals to attract events,and thus decreasing per event yields.
Catering Income
$160,000
$140,000 137,405.
$120,000
$100,000 a® �
74,361
$80,000
$60,000 52,11 ..._ _ a
$40,000
$20,000
2009 2010 2011 2012
(Forecast)
Events 20 32 37 48
Income per event $2,608 $4,293 $2,009 $1,895
• As a result of SMG's concentrated outreach,catering events have more than doubled.
• Catering income can vary widely from year to year due to number of attendees and menu
selection.
Page 7 of 14
Suite Income
$250,000 220,635
$200,000
174 898 ■Non Hockey
$150,000 4
3
5 Hockey
$100,000 _-._..... _ _�__.__ 90,019
87 35 43 26
$50,000
$-
2009 2010 2011 2012
(Forecast)
• Total Suite income has declined 59%from opening year.
• Annual suite leases have declined 77%, but that has been mitigated slightly with increase in
individual event rentals of approximately$38,000 and$28,000,respectively,the past two years.
• Decline in annual suite leases likely attributable not only to economic recession,but also due to
less than desired quantity of touring entertainment events.
• To combat lack of interest in annual suite leases, a hockey-only package was offered,with suites
sold on an individual event basis for other events.
• This new arrangement has helped renew three suite holders, and interest and inquiries have
increased.
• Total suite income growth can increase with hockey team success for hockey-only packages, and
for individual event rentals based on the ability to attract higher profile entertainment events.
Club Ticket Income
$200,000
$150 000 ■Single Game
109,652 108,348 88,607 Tickets
$100,000 M Season Tickets
74 3
$50,000 -
1 8 8
2009 2010 2011 2012
(Forecast)
Hockey Games 47 33 41 34
Season club tickets/game 257 203 224 226
Single game club tickets/game 55 60 67 73
• Club Ticket Revenue to include single game tickets and season tickets has declined 52%
• 2009 Season Club tickets are season tickets that where purchased while at Key Arena and carried
over to the ShoWare Center when the team made the move.
• Number of club seats isn't varying greatly but revenue is declining due to a decrease in price.
• Single game tickets include the 24 game Flex Plan. This plan was put in place in 2011
Page 8 of 14
A
Other Income
$350,000 3 68 313,283 310,720
288,091
$300,000
$250,000 ■Suites
203,787
$200,000 1 Club Seats
� 150,735
$150,000 M Advertising
.3
$100,000 d
0 Naming
45 493 Rights
$50,000
2009 2010 2011 2012
(Forecast)
Hockey games 47 33 41 34
• Naming rights revenue is fixed at$255,000 per year, six years remaining on ten year term.
• Advertising revenue has decreased by 12%over four years. Additional resources and/or new
types of inventory may be needed to reverse trend.
• Annual Suite lease revenue has decreased by 77%from the opening year. Unless there's a
significant economic turnaround for businesses, growth in this area over next several years will
come from individual event rental efforts.
• Club Seat Revenue has declined 58%from opening year. Since also available on a per game
basis,we do not expect growth in club season tickets. Individual game club seat income will be
reflected in hockey game event income.
Total Income
$2,500,000
2,150,492 2,032,144 2,075,494
$2,000,000
9 8 2 52
$1,500,000 Other Income
$1,000,000 .............
Event Income
1, 3 735 12 1 61
$500,000
2009 2010 2011 2012
(Forecast)
• Total Income in 2012 is forecasted to decline approximately 13% from its peak.
• Event Income has been fairly consistent,with a variance range of less than 9%over the four years
of operation.
• Other income has steadily declined, down over 30%from its peak,with the largest contributing
factor being suite revenue decline of 60%.
Page 9 of 14
Indirect Expenses 2012
$ 2009 2010 2011 (forecast)
$(500,000) _
$(1,000,000) ) ) ) )
Payroll
$(1,500,000)
Other
$(2,000,000) ............__
$(2,500,000) -
($2,602,215) ($2,430,157) ($2,532,976) ($2,502,918)
$(3,000,000)
• Overall indirect expenses have remained steady with less than 1%variance over four years.
• Opening year expenses are typically higher due to non-recurring expenses associated with
"Grand Opening"
• Full Time Employees has been reduced by 20%.
• All non-payroll indirect expenses have normal variations due to increases in utilities, repairs,
maintenance, supplies, insurance,etc...
Historic Operating Subsidy 2012
2009 2010 2011
forecast
$(100,000)
$(200,000)
$(300,000)
$(400,000)
$(500,000) $ 398 013
$(600,000)
$(700,000)
• With constant annual focus on managing expenses to mitigate reductions in forecasted revenues,
the"bottom line"held relatively steady over the first three years with a variance of approximately
2.4%
• Increase in the forecasted 2012 operating subsidy of approximately$195,000 over three-year
historic average is primarily attributable to three components.
• Unbudgeted liability of$30k as a result of state B&O tax findings.
• Emergency repair of ice plant compressors for approximately$69,000
• Significant reduction in suites and club seat income from last year of$94,000
Page 10 of 14
Revenue Growth Initiatives
The single most critical component of revenue growth in live entertainment venues is increasing event
programming,which ultimately drives the majority of the revenue generating facets of the operation.
Below are several initiatives which, if implemented,have the potential to increase revenues to keep up
with or exceed inevitable increases in operating costs.
Partnership in Live Event Promotion
Recommendation—Risk participation through venue co-promotion or self-promotion
• SMG identifies potential touring entertainment events
• SMG staff researches potential local interest levels to generate recommendations
• Event offer and proforma generated to measure risk/reward potential
• Risk model presented to City(Contract Administrator)for approval to submit offer
• Co-promoter sought as I"option, Self-promotion 2nd option
• Due to availability and timing of opportunities,multiple offers/risks may be in play
simultaneously
• Frequency — target 4-8 opportunities per year
• Measurement of success should be on an annual basis,or after multiple events
Revenue potential/target
• Direct—Increase potential event revenues $100K+annually
• Indirect—Increase programming appeal for potential suite, club seat, and advertising sales
• Possible to lose money directly,but still have indirect benefits
Parking
Recommendation-Implement paid parking for events with admission charge
• Common revenue stream for venues which control some or all of their available parking
inventory
• Paid parking already present at majority of regional competing venues
• Approximately 550 spaces available for sale on site per event
• Creates additional revenue to potentially mitigate risk/increase profit for event promoters
• Fee based parking operations will require the necessary planning, and coordination with local
traffic management to minimize any traffic congestion and issues that might occur on adjacent
roadways.
Revenue potential/target
• Paid parking is based on an estimated 50-75 qualifyng events per year.
• Recommend$5 per space - quick transactions,within regional market range for on-site parking.
• Implementation for Thunderbirds game will be done in collaboration with the team.
Net of associated expenses, fee based parking could potentially generate$50-75K annually
Page 11 of 14
Facility Fee
Recommendation-Increase the current facility fee from $2.00 to$3.00
• Common revenue stream among venues, added to every ticket sold,to offset operating or
repair/replacement costs, or debt service
• Based on experience managing multiple venues we do not believe this fee would be a deterrent to
agents and managers and will be viewed as additional revenue sharing opportunity by promoters
for risk partnerships.
• Negotiate with Thunderbirds and existing multi-year or annual event producers(such as Feld
Entertainment)on the increase and potential sharing of same.
Revenue Potential/Target
Using the 2012 forecast for tickets sold and adding an additional $1.00 facility fee,this initiative could
generate approximately$100,000 in additional revenue.
Ice Time Rental
Recommendation—Promote ice time rental to local and regional youth and adult hockey teams, and
figure skating groups. This initiative would be implemented in coordination with the Kent Valley Ice
Center,with intention of minimizing a competitive impact.
• As amateur hockey is expanding in the region,there has been an increased local demand for ice
time.
• Rent the ice on"dark"nights with the facility in the appropriate configuration
• Promote this opportunity to all local and regional hockey leagues, and figure skating groups.
• Work through the Thunderbirds and their relationship with local teams.
• Outreach to local public ice rink to analyze demand and strategize how best to accommodate all
parties,with intention of minimizing direct competition.
Revenue Potential/TarEet
Estimating the potential for 50 dark nights, 75% "occupancy", 3 hours rental per evening,and rental cost
at$350 per hour(going rate for prime time ice with a premium being at ShoWare Center),annual
potential revenue could be$20,000 range,net of operating costs.
Page 12 of 14
Advertising
Recommendation-Propose an amendment to the hockey agreement to bring in a third party
company to sell remaining unsold arena advertising inventory and potential new inventory.
• Solicit proposals from third party advertising sales firms to sell unsold arena inventory(currently
20%,representing potentially$50,000 annually), and propose new forms of advertising inventory
on commission-only basis.
• The team will continue to sell all team advertising inventory exclusively and retain 100% of
revenue.
• The team will still receive 25%of all building advertising sales revenue(net of third party
commission and exclusive of scoreboard), including newly added inventory.
• The team will receive 15%commission on renewal contracts of existing clients.
Benefits
The City would have dedicated resource selling arena advertising inventory as primary focus,without
adding additional overhead. Based on the current value of remaining advertising signage alone,this
could net the arena an additional $50,000 annually after commission and hockey team split. Additional
sales without overhead would also benefit the hockey team and allow their current resources to focus
exclusively on remaining team inventory.
Scheduling Flexibility
Under the current hockey lease scheduling process,there have been missed event opportunities including,
for example, Chris Tomlin,ZZ Top, and The Avett Brothers. It is important to note,the Thunderbirds
have and continue to work with SMG on event opportunities, occurring during the hockey season.
However, additional flexibility from the current process would enhance the ability to capitalize on as
many opportunities as possible.
Recommendation-Propose an amendment to the hockey lease that permits more flexibility in
scheduling non-hockey events.(Based on available information,current WHI.American Division
Lease agreements do not provide for this scheduling option.)
• Opportunity to confirm events on hockey hold dates prior to finalization of league regular season
schedule or playoff schedule,providing alternative hold dates to team and league.
• Non game day practices can be moved with at least 30 days notice and alternative ice time
provided.
• After league schedule is finalized,ability to reschedule up to two regular season games annually,
one pre Jan1, one post Jan 1 with at least 30 days advance notice in order to accommodate for
touring entertainment events or other significant revenue generating events.No moving of
playoff games.
• Negotiate fair compensation to Thunderbirds in the event of a rescheduled game
• Flat fee per rescheduled game
Page 13 of 14
• Formula based on average ticket sales gross difference from day of original game today
of rescheduled game
• After league schedule is finalized, ShoWare staff would work with the Thunderbirds in
identifying those critical game days not to be subject to rescheduling, i.e. opening night, fan
appreciation night, special promotion games,rivalry games, etc...
Benefit
Capitalizing on as much programming as possible to maximize event revenues, and provide additional
value to the suites, club seats, and advertising sales efforts.
"VIP Club" Membership*
Recommendation-offer a$15 "VIP Club" membership per non- hockey ticketed event.
• Includes a reserved parking space, designated no-waiting entrance to the building through the
club/suite entrance, $5.00 Food and Beverage coupon.
• Initial offer limitation of 100 spaces to create demand
• Tickets and Parking pass will be mailed.
Revenue Potential/Target
Based on 38 ticketed events(not including hockey games), after food cost, labor, and ticketing service
charge, potential to generate approximate $40K annually.
*This initiative is currently in development.
Page 14 of 14
i
THUNDERBIRD HOCKEY ENTERPRISES LLC
I
SEATTLE THUNDERBIRDS
AND ShoWare CENTER
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Q
Not-"
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ShoWare
(KENT
625 WEST JAMES ST.
KENT, WA , 98032
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1
f5,: _I' ShoWare
-. �IKENT
CITY OF KENT REPORT
SEATTLE THUNDERBIRDS
INTRODUCTION
We pondered how exactly to respond to your request for a submission pertaining to future marketing j
and growth plans for the Thunderbirds. Since we sell all the advertising in the building we have tried to
address both Thunderbirds and overall advertising potential in our remarks, f
Since opening the ShoWare Center during the 2009 — 2010 season the Thunderbirds have increased
average attendance each full season. In addition to attendance we have seen growth in revenue to the
City in Advertising, Rent, Concessions and Admissions Tax. The Strength of our marketing program
continues to be in a strong group sales effort combined with individual promotions geared to attract
new fans to try our game experience. We continue to offer fundraising opportunities to various non-
profit organizations along with our discount and special event nights.
_..__._ _—
j SEASON AVG. REVENUE
j AITENDANCE TO THE CITY
LICENSE&FACILITY FEE
f2008—2009" 4,150* $230,166
aj 2009—2010 3,848 $255,443
2010—2011 4,095 $277,773
2011 —2012 4,206 $283,514
2012—2013** 4,465** tbd
-First Year to ShoWare not full season-takes into account the second half only
2'112-2013 Season to date
Our initial reception and our general approval rating from almost all new patrons is very positive, all
while selling a new sport in a new territory with limited previous exposure to hockey. Young families
have built memories when they attended the circus,the Globetrotters,a Disney show or a Thunderbirds
game in the building and they came to Kent to do those things. Graduations are a huge success and
present extremely well in this venue and these too create very special memories for all that are a part of
them.
In our experience the citizens of Kent are very proud of ShoWare and it is our opinion that the sooner
all partners in the building can speak positively about the ShoWare Center and its benefits to the City
the easier it will be to grow the revenue that the building can produce. The question we feel is how we
increase the revenues to allow the ShoWare Center to pay its own way and we believe that speaking
positively about the benefits of the building will help the bottom line.
2
ISEATTLE/ ShoWare
�IKHNT
Thunderbird Hockey is (and was expected to be) the biggest revenue producer for ShoWare Center. To
date our games have generated for the building in excess of$1.3 million per year in rent, advertising,
concessions naming rights hts and sponsorship. We feel this number can continue to grow, through our
continued marketing and promotion and an increase in quality events that advertisers will want to be
tied too.
We strongly endorse the building management's plans to more aggressively pursue larger and higher
profile shows and concerts for the building because this will increase total traffic and exposure for
advertisers and will allow additional ad revenue to be attracted as a result To date the advertising
revenue generated for the building is mainly based on advertisers' interest in being involved at
Thunderbirds games.
TICKETS / SEASON & PACKAGES / GROUPS
Game Night Promotions / Events
Since opening up the ShoWare Center we have worked to provide a fun, family affordable
entertainment option for our fans. The goal was and is to create promotions and events around each of
our games. The events listed below are some of the examples of ones we are currently doing and they
have shown growth each year we have done them. Also listed are some of the new programs we are
starting and will build off in coming seasons.
Recurring Events / Game Night Promotions
1. Two -fer-Tuesday's presented by Directors Mortgage
a. These nights have built a following of their own and are growing in popularity.
2. Bobble heads presented by XFINITY
3. Teddy Bear Toss presented by Fred Meyer
4. Pub Nights
s. Youth Group Night
6. Boy Scout Night
7. Girl Scout Cookie Kick Off
8. Beginner Festival presented by KPS Health
9. Hockey Challenge to Benefit Ronald McDonald House Charities of Western Washington and
Alaska
Each of these Nights have increased each year and continue to be games fans and groups look for
each year.
As an example;last season our first Two for Tuesday fell on October 18`h,and drew 2,784 fans—
This season the first Two-fer-Tuesday fell on October 16`'and drew 4,143.
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New Programs
1. Thunderbirds Community Sports Foundation — Support a Sport - Benefiting Kent School
District. The Support a Sport event is a fundraising opportunity for the Kent School District.
Students, teachers, staff, parents and friends of Kent High Schools and Middle Schools can
purchase Seattle Thunderbirds tickets to the game on Wednesday, November 21, to earn
funding for the school of their choice.
The full purchase price of a $24 T-Birds ticket will be donated to the Kent school of the i
purchaser's choice. $12 per ticket is being donated by the Seattle Thunderbirds and$12 is being
matched by the Thunderbird Community Sports Foundation. The unique part of this f
fundraising opportunity is the matching donation given by the Foundation. The Kent School
District has the opportunity to raise over$72,000 through the Support a Sport Event.
We are excited about this promotion both for the fundraising opportunity it provides to Kent
Schools but longer term to our growing involvement and partnership with the Kent School
District to build long term fans.
2. GLOW and Valle Medical Center — Pink the Rink — Now in it y s second season, we have
partnered with Valley Medical and GLOW to bring awareness and funds to provide
mammograms and breast health education for uninsured women at high risk of developing
breast cancer. This year's event is October 28`h,2012.
Season Tickets / Packages / Groups
Overall we have had good success within the south King County region; Tacoma, Renton, Auburn,
Covington,Federal Way and Maple Valley markets while maintaining our fans in East King County. We
continue to make strides throughout the south and will keep working to show the business community
of Kent that our product is a very good value. Currently we have only 14% of the KDP businesses and
11% of the Kent Chamber businesses with ticket packages. We see this as a growth opportunity, and
we will keep working to increase our penetration into these key areas of the Kent business community.
We would urge the City to join with us and ShoWare Management to speak positively about the
ShoWare Center,its benefits to the City and the experience of attending events in Kent.
We have learned from our experiences here at the ShoWare Center that building our season ticket base
is a multi-step process, since so few of our new fans has any previous hockey experience. We are
developing and growing the fan base through reach and frequency and use the philosophy of;
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The Attendance Frequency Escalator
"Get`Em On"; "Move `Em Up";and"Keep `Em On".
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GET'EM ON I MOVE'EM UP I KEEP'EM ON
-Sampling& -Full Menu of Partial and Mini Plana I -S-1—a Retantton
Trial -Individual and Group Sales
ATTENDANCE FREQUENCY
Our Marketing Strategy has three steps ....
1. Focus on keeping the most avid Fans we have.
2. Build products and services and unique benefits that encourage the casual customers to increase
their purchase frequency (move up the ladder). This is done through the sale of our smaller
packages and marketing to our single game buyer lists through, direct mail, direct email, phone
calls,and social media,etc.
3. By making the avid and casual fans so satisfied, encourage them to use word of mouth to bring
family, friends and associates. Sampling / Trial programs aimed at high probability targets
(youth sport participants, school children, business groups). Reduce the emphasis on Mass
Media advertising and use Direct Marketing instead. Examples include: our email database,
Target Marketing using Comcast Spotlight, other email databases obtained from businesses,
radio stations etc.,Reporter Newspapers in Kent and surrounding Cities,etc.
Group ticket sales have been and will be a main area of focus for our sales and marketing team. Within
group sales there are a number of different targets that we focus on.
Businesses -We create opportunities for Businesses to use Thunderbirds games to grow their revenues;
opportunities include; entertaining current and potential customers, employees, and advertising and
marketing opportunities that can give companies direct access to a very loyal fan base.
Community Groups-Social events and potential fundraisers for the non-profit groups as well.
I
Service Groups-Social outings, fundraisers,and building relationships in the community.
Youth or Kids Groups, teams,etc....
i
Birthday Parties
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Any group of people looking for great entertainment at a great value.
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SUITE SALES
As we all are aware this type of item is one of the most dramatically affected by a major downturn in the
economy. Prior to the building opening we had 14 of 20 suites committed to on an annual basis (3 year
agreements) and this was based on initial estimates of the number of shows and concerts. Before the
opening and through that first year we lost 5 of them to the economy(businesses went under or needed
to get out of their deals). This became a tough sell in a bad economy and we were hurt by the lack of
major shows and concerts that the building was able to attract in our first 4 years of operation.
We had not seen any new sales after the crash for a long stretch which emphasized the need to alter our
initial sales strategy of selling the suites at a higher price for all events that were (or might be) held in the
building. We adjusted to our present arrangement to sell suites for Thunderbird hockey only to patrons
who are interested in buying for hockey games and having first option to buy other events.The change
also allows the building to sell suites to the other events it is able to attract and keep 100% of that
revenue. Another advantage is to better target the customers for the various shows. These changes i
allow us to set a price more aligned to the value and consequently we have seen 3 new suites sold for
this season and renewed all but 1 from last season. With the change in pricing we also have been able to
adjust the single game price and have greater flexibility to attract new businesses to sample the product.
(An example is the Two - fer - Tuesday Promotion.) We are having great success so far this year in
selling individual games that will allow us to increase the number of potential customers to step up and
purchase on a greater frequency leading to full season sales.
With the adjustments that have been made, suite sales are an area for growth for the building, not just
from more suites being sold but also the increased per-cap spending in catering that comes with the
suites being used.
ADVERTISING PARTNERSHIP SALES
Signage and Partnership Philosophy
In the very early design stages of the ShoWare Center.the City of Kent decided they did not want to
have a building that looked like it was"NASCAR like",meaning they did not want the building over run
with advertisers and signage. This set out a philosophy of less is more for the Building and Team
advertisers,and in fact is the philosophy used in most new buildings. We limit the number of signs thus
making the ones we do have more relevant,visible and valuable.
1°LESS IS MORE"
In addition to limiting the number of ad panels and signage points, the location and size were also
factored in to make them part of the action as much as possible. Then we set out to build integrated
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marketing proposals and packages for our Corporate Partners that maximize the benefits of both the
team and building inventories.
Despite the downturn in the economy the fact that we are able to offer exclusivity to potential
advertisers and combined packaging with both building and hockey team connected, ads we have been
able to maintain the value and premium price for our inventory. With one selling agent we are able to
increase ,the value of signage by being able to include promotions that run in and around the
Thunderbirds games. Advertisers today for the most part are not looking to just buy signage, they need
the ability to tie in promotions and opportunities to more interact with their customers and potential
customers and find ways to measure return on investment. The partnership of our original deal puts
only one selling agent on the street and because of that we are not competing and more importantly
undercutting each other for access in ShowWare Center. In looping at pricing of other facilities in this
area and in the state we are able to maintain a greater return for the building by being able to offer
exclusivity and integrated packages that include the team and building.
ShoWare Center Advertising Inventory
Vomitory Signs—14 total
Ring Signs—26 total
Concourse Signs—14 total
Score Clock Signs—10 total
Total Revenue Potential— $505,000.00
Total Advertising Sold(not including naming rights)for 2012—2013 Season- $407,000.00 or 81%of the
possible Revenue.
List of Building_and Team Advertising Partners
1. Valley Medical Centers
2. University of Phoenix
3. Les Schwab
4. XFINITY/ Comcast
5. Sterling Bank
6. Directors Mortgage
7. Coca-Cola
8. Labatt/ Pabst/Pyramid / Mike's Hard Lemonade/ Sam Adams
9. KPS Health
10. Allied Waste
11. Industry Graphics
12. Pape
13. Schneider Homes
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K6NT
14. Sound Transit
We believe there is opportunity for continued growth in the advertising revenue the building will
generate. One of the key factors is to attract larger and higher profile concerts,shows and events that
will allow advertisers to become part of those events as well. These shows combined with an improved
public perception of the building and its role and contribution to Kent would allow additional
advertisers to be attracted to the building.
THUNDERBIRDS COMMUNITY SPORTS FOUNDATION
MISSION STATEMENT: The Seattle Thunderbirds Community Sports Foundation promotes good j
health,physical education,and academic achievement by providing scholarships and grants for athletics
in the Puget Sound Region to participate in athletic competitions in team and individual sports,as well
as providing grants to local youth and amateur sports associations for equipment and facilities for use in
the community.
Since our move to Kent and forming this foundation we have given grants of nearly$120,000(we are {
scheduled to fill another$20,000 in grants in the next few weeks) to various minor sports
organizations in the region with the majority going to Kent based sports programs. We have funded
school sports,we have fielded disabled sports,we have funded disadvantaged participation fees,we
have funded start up and special events and all of these were made possible by our move to Kent and
involvement in ShowWare Center.
Funds Awarded
■ Kent School District $21,700 to support 0Thunderbird Community Sports
Athletic Participation Fees Foundation Scholarship- 3
000$ ,
• Kent Meridian High School Key Club: ■ Kentwood High School Water Polo: $3,000
$21,319 ■ Kent East Hill Boxing Club: $2,500
• Kent Valley Hockey Association: $14,218 0 Cedar Heights Cheetleading Uniforms:
• Western Washington Female Hockey $2,000
Association: $5,500 ■ XTREME Speed Track Club: $2,000
• Kent Parks Foundation: $5,000 ■ Layfette Elementary School: $2,000 for
■ Kent School District $5,000 to purchase Roller Skates
sports equipment ■ Lil Evolution Basketball Team: $2,000
• Auburn Specialized Recreation Program: ■ Team Seattle Hockey: $1,695
$4,500 ■ Shoreline Community College Women's
■ Kent Cobras-Kent Football Association: Basketball: $1,500
$4,000 ■ Cruisin'Passport Program—Kent and i
Orting Middle School: $4,000 Covington: $1,063
■ Covington Community Sports: $4,000 ■ Kent Little League: $1,000
■ Kent AM Kiwanis Club: $3,627 • Auburn Little League: $100
■ Seattle Adaptive Sports: $3,000 ■ Project Uth—Kent: $843
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SUMMARY
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Through the entire project of building the ShoWare Center the Thunderbirds have operated with an
approach of partnership with the City of Kent in all areas. Our rental agreement reflects this in the way j
the.building advertising is divided and marketed. This has allowed the building to maintain the value
and pricing at a higher level than in comparable buildings in our area due to both the limited number of
signage points and the exclusivity offered to customers interested in owning their segment exclusively.
This partnership is necessary to allow the building management,the City of Kent,and the Thunderbirds
to continue to grow the business needed to increase revenues.
Due to the unique restriction on being able to charge for parking we have worked hard to market the
fact that we have free parking into a strong positive and it is a significant part of the extra value that
patrons of ShowWare feel they are getting when our venue is compared to others in the area.
We are very proud of the building and how it presents our product to our fans,and we know from our
close involvement in the community that the citizens of Kent are proud of the fatality and the fact that
people come to Kent for the various events ShoWare hosts. Although there are various factors in play
the sooner the City and all involved can become ambassadors for the positives that ShoWare brings to
our community the sooner and better the bottom line will look each year.
We thank you for the opportunity to contribute our thoughts to your building.deliberations.
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Presented to:
., ShoWare
N
KENT
Prepared by:
Community
attributes
. - with ALISOw PETERS
l�r
community
attributes
Community Attributes tells data rich stories about communities
that are important to decision-makers.
Principal: Chris Mefford
Analysts: Mark Goodman
Aaron Blumenthal
Alexandra Hudson
Community Attributes Inc.
1402 Third Avenue, Suite 930
Seattle,Washington 98101
www.communityattributes.com
EXECUTIVE SUMMARY
Kent's ShoWare Center opened for business in January 2009,with kick-off events including a
grand opening party, immediately followed by the inaugural ShoWare Center Seattle
Thunderbirds hockey season. Within its first few months, ShoWare Center bustled, having
hosted a variety of concerts, sporting events and civic events.
ShoWare Center's opening came at a difficult time in the midst of mounting national and global
economic problems. The City of Kent had committed to building ShoWare Center in July of
2007.Just five months after construction began, the world's economy stumbled and the U.S. fell
into the worst economic era since the Great Depression of the 1930s.
An Entertainment Magnet
Since that time, the economy has stabilized, and ShoWare Center has become a major local
institution with a diverse offering of entertainment events and steady tenant draw in the
Thunderbirds. ShoWare Center is now a regional magnet, attracting more than one
million visitors to Kent for sports events, entertainment, conferences, civic events and
more.
Patrons come from across the region to attend events at Kent's
Mai rrr+
ShoWare Center and patron draw is characterized as follows: 57
• More than half of ShoWare Center visitors (excluding
Thunderbirds patrons) come from south King County V „
3�
and North Pierce County, with the highest concentration (� a%
in and around the Kent (20%) and the Federal 1�
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Way/Bonney Lake area (21%). Significant patron drawn..
seatii <a�,
ranges from Seattle (south of the Montlake Cut; 11%) >»:
Tacoma (11%), and the Bellevue/Redmond area (8%). ff 1
• Patrons from beyond Kent's borders are increasingly °
Sha re s igic
drawn to Kent for ShoWare Center events. From 2009
to 2011 the proportion of ShoWare Center patrons with
residences in Kent fell from 19% to 12%. Meanwhile, in
that same time period the proportion of Tacoma and ;
kt
5� 210
Pierce County patrons grew from 16% to 25%.
• Thunderbirds season ticket-holders residences are
concentrated in and around Kent, with the highest
concentration located between Interstate 5 and Patron Draw. SboWare's patrons come
Highway 167. from all over the central Puget Sound region,
whose residences are sbovn by the yellow dots
• The most highly attended events from 2009 to 2011 (2011 patrons).
were Thunderbirds hockey and other sporting events.
Kent ShoWare Center November 2012 Page i
Economic Impacts
In 2011 Thunderbirds and other sporting events drew 164,000 patrons. The second
largest draw was family entertainment with 62,000 patrons in 2011.
• Thunderbirds ticket holders attended events more frequently than non-Thunderbirds
patrons. Among non-Thunderbirds patrons 72% stated they attended events 1 to 2 times
a year.
• Since opening in 2009 more than 1,000,000 patrons have attended events at ShoWare
Center.
Patron Spending Impacts
ShoWare Center patrons that attend events also spend recreation dollars in Kent. They go out
for dinner, shop at local businesses and sometimes spend the night at local hotels. All told,
ShoWare Center patrons spent an estimated $12.1 million in 2011 at local businesses.
Dining was the most common form of spending for all patron types,with shopping and lodging
less common. The following sections highlight spending patterns of ShoWare Center patrons
surveyed during the summer of 2012.
Dining $12.1 Million in Patron Spending
Outside of ShoWare, 2011
• Intercept surveys suggest that roughly 60% $Millions
of patrons (not including Thunderbirds $10.0 $9•7
patrons) dine out before or after events.
Those that do spend roughly $40 on $8.0 _
dining, not including spending at ShoWare
Center. $6.0
• Thunderbirds patrons are even more likely
to dine out before or after the event. $4.0 — --- ---------._.T_
Roughly 85% dine out before
Thunderbirds events. $2'0 - $0.9— " " $0.6 _$0.9
Shopping and Lodging $0.0 -,. -...........
_ -
Dining Lodging
• Shopping was found to be less common Shopping Entertainment
than dining, with an estimated 8% of non- ShoWare patrons spent more than$12.1 million in 2011.
Thunderbirds patrons shopping before or
after events (the Thunderbirds patron survey did not include questions on shopping).
Among those that spent money on shopping, they spent $35 per ShoWare Center related
trip, on average, not including spending at ShoWare Center.
• Kent Station was the most commonly mentioned destination for shopping among survey
respondents. Historic Downtown Kent and East Hill, although far less common among
respondents, were also mentioned as shopping destinations.
• Spending on lodging and entertainment was rare among all types of survey respondents.
Kent ShoWare Center November 2012 Page ii
Economic Impacts
Full Economic Impact
The $12.1 million in patron spending provides revenues for Kent businesses. These revenues
allow Kent businesses to buy supplies and services from other Kent and regional businesses, and
pay wages and salaries for Kent workers. These wages allow employees to spend their hard
earned money on local products and services. Incorporating these induced business and
employee spending benefits raises the overall impact of ShoWare Center activity to $25.1
million in 2011. The following findings provide details regarding spending by patrons both at
and outside of events.
• In 2011,visitors spent an estimated $12.1 million at dining and shopping businesses in
Kent while attending ShoWare Center events (not including concessions sold at
ShoWare Center), based on ShoWare Center patron surveys conducted in 2012.
• ShoWare Center and Thunderbirds ticket and concession sales added an additional $4.5
million in 2011, for a total direct local benefit of$16.6 million.
• Indirect and induced benefits, which reflect business to business spending and employee
spending of personal income, are estimated to bring the total spending impact to $25.1
million in 2011.'
Municipal Revenues
The $25.1 million in spending generates critical tax revenues for the City of Kent, King County,
Washington State and various municipal service jurisdictions. In terms of tax revenues reaped by
the City of Kent, ShoWare Center related spending contributes more than $609,000 in tax
revenues in the form of sales tax, admissions tax and lodging taxes. These revenue figures
do not include property taxes supported by local businesses and the improvements and
investments they have made to Kent buildings and establishments.
The following sections detail findings regarding estimated fiscal impacts to the City of Kent:
• ShoWare Center contributes a total of$609,700 in tax revenues to the City of Kent
annually.
• Of this, $403,000 comes from patron spending at Thunderbirds games and ShoWare
Center events, including dining and shopping during trips to ShoWare Center.
• The additional $206,700 includes tax revenues that come from indirect and induced
impacts estimated and derived from economic models.
• These models capture business to business spending and the impacts from employee
spending (same assumption of 75% of indirect and induced impacts captured locally).
I The indirect and induced impacts assume 75%of all indirect and induced benefits are captured
within Kent city limits.The actual number could be higher or lower than 75%,likely less than
100%,but likely fairly high within a range of 0 to 100%as well. Kent's concentration of
wholesale suppliers and distributors suggest a relatively higher number.
Kent ShoWare Center November 2012 Page iii
Economic Impacts
( 1
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Kent SboWare Center November 2012 Page iv
Economic Impacts
CONTENTS
ExecutiveSummary...............................................................................................................................i
Introduction..........................................................................................................................................1
Backgroundand Purpose.................................................................................................................1
Methods.............................................................................................................................................1
Organizationof this Report.............................................................................................................2
CurrentConditions...............................................................................................................................3
Revenuesand Operations ................................................................................................................5
Event Segmentation and Attendance..............................................................................................8
PatronOrigin and Draw................................................................................................................12
Email and Intercept Survey Results ..................................................................................................16
InterceptResults.............................................................................................................................17
EmailSurvey Results......................................................................................................................22
ImpactAnalysis....................................................................................................................................27
VisitorSpending.............................................................................................................................28
KentFiscal Impacts........................................................................................................................30
Direct, Indirect and Induced Benefits ..........................................................................................33
StakeholderInterviews.......................................................................................................................35
Impactsto Local Businesses..........................................................................................................35
Challengesand Opportunities .......................................................................................................36
Relationship to Kent and Place Making........................................................................................36
Appendix A. Patron Feedback for ShoWare Center Experience....................................................38
Appendix B. Stakeholder Interviews.................................................................................................46
InterviewResponses...........................................................................................................................47
Kent Sbollare Center November 2012 Page v
Economic Impacts
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Kent SboWare Center November 2012 Page vi
Economic Impacts
r .
INTRODUCTION
Background and Purpose
Kent City leadership and stakeholders alike recognize that ShoWare Center
contributes economic and fiscal benefits to the City. However, ancillary spending
of ShoWare Center visitors is not currently captured by survey data and many in
the business community feel that its economic impact is positive. As a publically
managed and financed facility, the City is interested in long-term sustainability of
the facility and supporting its independence as an enterprise fund, providing
events and recreation to the public for a fee that makes the entity self-supporting.
This report quantifies economic benefits associated with its activities. The study
provides analytic foundation for City strategies related to ShoWare Center. The
following report provides a detailed evaluation of ShoWare Center's current
conditions, spending impacts and direct fiscal impacts to the City of Kent. Both
quantitative and qualitative findings are based on a series of surveys of ShoWare
Center patrons in addition to interviews with local businesses impacted by
ShoWare Center events.
Methods
The approach to this work leverages existing data from ShoWare Center,
combined with primary data collection in the form of ShoWare Center attendee
surveys and business interviews, along with impact modeling to tell a complete
story of the economic impact of ShoWare Center.
Survey research provides ancillary consumer spending data to describe visitor and
business activity related to ShoWare Center. The surveys enhance perspectives on
activity before, during and after ShoWare Center events and impacts on a variety
of business types and locations. The business survey includes representatives
from retail, restaurateurs and other businesses types and associations.
The analysis draws from data compiled specifically for this analysis, including:
• ShoWare Center event data and financial analysis obtained directly from
ShoWare Center operator SMG.
• Intercept Survey Data from two events held during the summer of 2012.
• Email Survey Data obtained through an online survey distributed to 2012
ShoWare Center patrons and 2012 Thunderbirds season ticket holders.
• Stakeholder interviews with key businesses throughout Kent's
Downtown, East Hill and industrial neighborhoods.
• City of Kent adopted budgets for 2011 and 2012.
Kent ShoWare Center November 2012 Page 9
Economic Impacts
Organization of this Report
• Current Conditions. An overview of ShoWare Center's current
operations, attendance and event segmentation.
• Survey Quantitative Results. A review of spending averages obtained
through both survey types.
• Impact Analysis. A detailed analysis of ShoWare Center's economic
impact in terms of direct spending and fiscal impact to the City of Kent.
• Patron and Stakeholder Feedback. A summary of qualitative survey
results and key findings from interviews conducted with Kent area
businesses impacted by ShoWare Center,
Kent ShoWare Center November 2012 Page 2
Economic Impacts
CURRENT CONDITIONS
Ground breaking for ShoWare Center took place in 2007 and the facility opened
in January of 2009. ShoWare Center is owned by the City of Kent. In addition,
the Special Events Center Public Facilities District oversees state sales tax
revenues dedicated to servicing the debt on the construction of ShoWare
Center. Public Facilities Districts (PFDs) are municipal corporations with
independent taxing authority and are taxing districts under the State constitution.
The event space and arena management, marketing and development firm SMG
contracts with the City of Kent to operate ShoWare Center. SMG operates all
aspects of the facility including booking, tickets sales, food and beverage,
maintenance, finance and marketing. Food and Beverage is operated by Savor
Catering, the food services division of SMG. SMG manages facilities across the
nation and world, including several NFL, NBA and MLB facilities. ShoWare, the
facility's namesake and official sponsor, is a ticket sales and distribution
company. Naming rights to the facility were secured for ten years by ShoWare for
$3,000,000. Vision One, a ticketing/ecommerce company,is the parent company
of ShoWare and a direct competitor of TicketMaster.
Similar events to those held at ShoWare Center can be found at several facilities
in the region including Tacoma Dome in Tacoma and Comcast Arena in Everett.
Concerts held at ShoWare Center are typically the only regional stop on a tour.
Exhibit 1 illustrates major venues with comparable facilities and competitive
draw.
Kent ShoWare Center November 2012 Page 3
Economic Impacts
Exhibit 1. Major Competitive Venues,
Puget Sound Region, 2012
Max Distance From
Venue Location Capacity ShoWare Center
Year-Round
ShoWore Center Kent, WA 6,300 NA
Comcast Arena Everett, WA 10,000 46 miles
Christian Faith Center Federal Way, WA 5,000 5 miles
Emerald Queen Casino Fife, WA 2,000 10 miles
Showbox at the Market Seattle, WA 1,200 15 miles
Showbox SODO Seattle, WA 1,500 15 miles
Paramount Theater Seattle, WA 2,800 20miles
Moore Theater Seattle, WA 1,400 18 miles
KeyArena Seattle, WA 15,500 15 miles
McCaw Hall Seattle, WA 3,000 15 miles
WaMu Theater Seattle, WA 7,000 15 miles
Benaroya Hall Seattle, WA 2,500 17 miles
Snoqualmie Casino- Ballroom Snoqualmie,WA 1,500 30 miles
Tacoma Dome Tacoma, WA 22,500 17 miles
Tacoma Dome Theater Tacoma,WA 7,000 17 miles
Broadway Center,Tacoma Tacoma,WA 1,200 19 miles
Pantages Theater,Tacoma Tacoma, WA 1,200 19 miles
Summer Season
White River Amphitheatre Auburn, WA 20,000 15 miles
Puyallup Fair Puyallup, WA 10,800 17 miles
Gorge Amphitheatre Quincy,WA 22,000 150miles
Marymoor Park Redmond,WA 5,000 25 miles
Woodland Park Zoo Seattle,WA 3,700 25 miles
Snoqualmie Casino- Mountain View Plaza Snoqualmie,WA 2,000 30 miles
Tulalip Amphitheater Tulalip, WA 2,400 54 miles
Chateau St. Michelle Winery Woodinville,WA 4,300 20 miles
Source: Community Attributes Inc., 2012.
Kent ShoWare Center November 2012 Page 4
Economic Impacts
Revenues and Operations
The following provides a brief synopsis of ShoWare Center revenues and income
statements. Included are exhibits on overall operating income, profits/losses,
operating costs and labor. In addition, the following section segments operating
income and concession sales by event type.
ShoWare Center has been operating at a deficit since its opening in 2009.
Exhibit 2 provides a financial history of ShoWare Center, distinguishing between
hockey related income and non-hockey related income. Total income in 2011 was
$2,075,496 and total costs were $2,532,976, resulting in a net loss of$457,480.
Exhibit 2. Financial History, ShoWare Center, 2009-2012
2009 Actual 2010 Actual 2011 Actual
Hockey event income $ 418,336 $ 319,888 $ 368,932
Advertising 583,568 568,285 565,720
Club revenue 171,574 97,391 93,221
Suite revenue 203,787 150,735 120,642
Total hockey income 1,377,265 1,136,299 1,148,515
Other income 774,492 895,846 926,981
Total income 2,151,757 2,032,145 2,075,496
Indirect/operating expenses 2,602,213 2,430,157 2,532,976
Net proifit/(loss) $(450,456) $(398,012) $(457,480)
Source: ShoWare Center, 2012.
Kent ShoWare Center November 2012 Page 5
Economic Impacts
Exhibit 3 provides a detailed summary of operating expenses for ShoWare
Center from for 2009 through 2011. Salaries and wages make up the largest share
of operating expenses. In 2012 salaries and wages totaled $1,154,432,
representing 46% of all operating costs. Line items such as operations, repair and
maintenance, and supplies made up a smaller portion of operating expenses all
three years of operation.
Exhibit 3. Operating Expenses Detail, ShoWare Center, 2009-2011
FY 2009 FY 2010 FY 2011
Operating Expenses Actual Actual Actual
Employee Salaries and Wages $ 1,473,104 $ 1,336,101 $ 1,371,056
Benefits $ 221,155 $ 241,588 $ 279,898
Less: Event Labor Allocations $ (474,691) $ (407,571) $ (496,521)
Net Employee Wages and Benefits $ 1,219,568 $ 1,170,118 $ 1,154,432
Contracted Services $ 227,366 $ 145,405 $ 150,925
General and Administrative $ 257,766 $ 215,632 $ 248,992
Operations $ 69,898 $ 53,894 $ 58,873
Repair&Maintenance $ 42,019 $ 60,951 $ 70,654
Supplies $ 53,926 $ 37,131 $ 48,870
Insurance $ 75,653 $ 70,725 $ 71,513
Utilities $ 411,615 $ 428,278 $ 478,617
Other $ - $ - $ -
SMG Management Fees $ 244,404 $ 248,023 $ 250,099
Less: Expenses Allocated $ - $ - $ -
Total Operating Expenses $ 2,602,215 $ 2,430,157 $ 2,532,975
Source: ShoWare Center, 2012.
Note: Event labor allocation refers to staffing costs attributable to specific events at
ShoWare Center.
Kent ShoWare Center November 2012 Page 6
Economic Impact
Employment associated with ShoWare Center includes two distinct groups, SMG
employees and Thunderbirds employees. SMG employees that work directly at
ShoWare Center are responsible for the overall operation of the facility.
Thunderbirds employees are only associated with the hockey team and its
operations in Kent. Exhibit 4 illustrates the total employment for each group. In
2011 SMG had 16 full-time employees and was responsible for 85,000 hours of
part-time employment directly associated with events. During the same year the
Thunderbirds had 16 full-time employees and employed 20 part-time employees
each game night (Thunderbirds athletes are not included).
Exhibit 4. Employment, Thunderbirds and
ShoWare Center, 2011
Employee Type Employees Type
SMG Employees at ShoWare Center 16 FTE
SMG Part Time Equivalent 85,000 Hours Part Time
Thunderbirds Employees 16 FTE
Thunderbird Part Time Equivalent 20 Each game night
Source: ShoWare Center, 2012.
Exhibit 5 provides a detail of employee labor costs directly associated with SMG
and its operation of ShoWare Center. Event labor allocations represent staffing
costs attributable to events and totaled $496,521 in 2011. Full time salaries and
wages in 2011 totaled $1,154,432.
Exhibit 5. Employment Expenditures,
ShoWare Center, 2011
Fiscal Year
Expenditure 2011 Actual
Employee Salaries and Wages $ 1,371,056
Benefits $ 279,898
Less: Event Labor Allocations $ (496,521)
Net Employee Wages and Benefits $ 1,154,432
Source: ShoWare Center, 2012.
Kent ShoWare Center November 2012 Page 7
Economic Impacts
Event Segmentation and Attendance
Exhibits 6 and 7 summarize overall patron attendance at ShoWare Center
during 2011. Events are categorized by type along with overall attendance, total
number of events and percentage of total events (some event days included
multiple performances). Events taking place on a single day may consist of
multiple performances. The Thunderbirds and Other Sporting Events category
represented the largest share of patron visits during 2011 (50% of all patrons).
Family Entertainment represented the next largest category (21%) with
Graduation and Civic (15%), Concerts (10%) and Business/Trade Events (6%)
responsible for the remainder of attendance. Business/Trade events represent
banquets, trade shows, meetings and consumer/public shows. Total attendance in
2011 was 331,355 spread over 138 distinct events.
Exhibit 6. Event Attendance, ShoWare Center, 2011
Patrons per Percentage of
Event Category Patrons Events Event All Patrons
T-Birds and Other Sporting Events 164,087 60 2,735 50%
Family Entertainment 62,438 5 12,488 19%
Graduation and Civic 49,331 12 4,111 15%
Concerts 34,080 12 2,840 10%
Business/Trade 21,419 49 437 6%
Total 331,355 138 2,401 1000/0
Source: Sho`,X'are Center, 2012.
Exhibit 7. Event Attendance, ShoWare Center, 2011
Attendance 1
180,000 64,087
50%
160,000
140,000
120,000
100,000
80,000 62,438
19% 49,331
60,000 15%
34,080
40,000 10% 21,419
6%
20,000
0
T-Birds and Other Family Graduation and Civic Concerts Business/Trade
Sporting Events Entertainment
Event Type
Source: ShoWare Center, 2012.
Kent ShoWare Center November 2012 Pale 8
Economic Impacts
Exhibits 8 and 9 illustrate attendance trends from ShoWare Center's opening in
2009 through 2011. The majority of attendance during this time period is
attributable to Thunderbirds games and Other Sporting Events. Family
Entertainment is the second largest attendance category. Both event categories
experienced similar attendance patterns attendance declining from 2009 to 2010
and increasing from 2009 to 2012. The highest level attendance at ShoWare
Center is typically during January of each year, the height of the Thunderbirds
season.
Exhibit 8. Total Event Attendance, ShoWare Center, 2009-2011
Attendance
180,000 170,555
164,087
160,000 50,6 _
Year
140,000 2009 Total
120,000
W :ti 2011 Total
100,000
80,000 74,229
62,438
"--�� 59,451
60,000 1 33
9,331
40,000 31 98t1:: 34,080
- 19,54 21,419
20,000 16 596 13,789 13,20
0
T-Birds and Other Family Entertainment Graduation and Civic Concerts Business/Trade
Sporting Events Event Type
Source: ShoWare Center, 2012.
Exhibit 9. Event Attendance by Month, ShoWare Center, 2009-2011
Attendance
70,000 ....................__..._._
60,000
50,000 -- _.._. _ _ ._._._. -- —
40,000 a, . _... .....
30,000 y .._ ...._. .
20,000
10,000
0 _ .......,
Jan-2009 Jul-2009 Jan-2010 Jul-2010 fan-2011 Jul-2011
Date
Source: ShoWare Center, 2012.
Kent ShoWare Center November 2012 Page 9
Economic Impacts
Exhibits 10 and 11 illustrate total event income by event type for 2011. The
majority of income generated by ShoWare Center comes directly from
Thunderbirds and Other Sporting Events, totaling $532,373 in 2011. Concerts
were the second largest income generator at $339,634 in 2011.
Exhibit 10. Event Income Table, ShoWare Center, 2011
2011 Percentage
Event Category 2011 Income Events Perfomances Income
T-Birds and Other Sporting Event $532,373 60 71 41%
Family Entertainment $216,059 5 24 17%
Graduation and Civic $72,772 12 24 6%
Concerts $339,634 13 12 26%
Business/Trade $135,082 49 51 10%
Total $1,295,920 139 182 100%
Source: ShoWare Center, 2012.
Exhibit 11. Event Income Graph, ShoWare Center, 2011
Income($)
$600,000
$532,373
$500,000
$400,000
$339,634
$300,000 _
$216,059
$200,000
$135,082
$100,000 $72,772_
$0
T-Birds and Other Family Graduation and Concerts Buslness/Trade
Sporting Events Entertainment Civic
Event Type
Source: ShoWare Center, 2012.
Kent ShoWare Center November 2012 Page 10
Economic Impacts
Exhibit 12 illustrates overall concessions sold segmented into event categories.
The largest share of concessions income is derived from Thunderbirds and Other
Sporting Events, reflecting the frequency of these events at ShoWare Center.
Concerts were the second largest producer of concession income in 2011.
Exhibit 12. Concessions Income by Event Type, ShoWare Center, 2011
Food and Food and
Beverage Beverage Novelty Sales Total Ancillary
Event Category Concessions Catering Income Income Income
T-Birds and Sporting Events $ 360,024 $ 47,065 $ 5,769 $ 412,859
Family Entertainment $ 59,873 $ (3,819) $ 8,060 $ 64,114
Graduation and Civic $ 29,147 $ 6,201 $ 100 $ 35,448
Concerts $ 93,245 $ 26,960 $ 10,537 $ 130,743
Business/Trade $ 13,896 $ 95,286 $ - $ 109,182
Total $ 556,186 $ 171,693 $ 24,466 $ 752,345
Source: ShoWare Center, 2012.
Exhibit 13 uses the same segmentation to present operating income at ShoWare.
In 2011 Thunderbirds and Other Sporting Events were responsible for the largest
share of net operating income. Rental Revenues and Facility Fees were the largest
proportion of revenues for Thunderbirds and Sporting Events ($428,239) with
Total Ancillary Income ($412,859) making up a substantial share as well. Gross
ticket sales totaled $2.5 million in 2011, most of which goes to event producers;
ShoWare's share of ticket sales is included in Ticket Rebates, Box Sales and
Ticket Rebates totaled $211,895 in 2011.
Exhibit 13. Direct Event Income Detail by Event Type, ShoWare Center 2011
Box Sales and Rental Revenues Billable Total Ancillary Service Net
Event Category Ticket Rebates and Facility Fees Services Income Expenses Operating
T-Birds and Sporting Events $ 24,512 $ 428,239 $ 82,685 $ 412,859 $ (415,928) $ 532,366
Family Entertainment $ 59,904 $ 280,565 $ 9,679 $ 64,114 $ (198,202) $ 216,060
Graduation and Civic $ (605) $ 98,355 $ 2,841 $ 35,448 $ (63,266) $ 72,773
Concerts $ 127,984 $ 213,318 $ 5,676 $ 130,743 $ (138,088) $ 339,633
Business/Trade $ 101 $ 72,588 $ 4,443 $ 109,182 $ (51,233) $ 135,081
Total $ 211,895 $ 1,093,065 $ 105,324 $ 752,345 $ (866,717) $ 1,295,912
Source: ShoWare Center, 2012.
Kent ShoWare Center November 2012 Page 11
Economic Impacts
Patron Origin and Draw
The following section provides a geographic analysis of where ShoWare Center
patrons draw. Patron origins are based on data collected by ShoWare Center with
supplemental analysis by Community Attributes.
Exhibit 14 illustrates the origins of 2011 patrons attending concerts, family
events and several miscellaneous sporting events (not including Thunderbirds
games). A large portion of patrons live in the Kent/Renton/Covington area
(20%) while another large portion (21%) live in south King County and North
Pierce County including Federal Way, Bonney Lake,Auburn and Sumner.
Concentrations also exist in Tacoma (11%), Seattle south of the Montlake Cut
(11%), the Bellevue/Redmond Area (8%) and North Seattle to Mukilteo (5%).
There is also a noticeable concentration of patrons with residences in the
Olympia/Lacey area.
Exhibit 15 on the following page illustrates the origins of 2011 Thunderbirds
season ticketholders. The map depicts season ticket holder by zip code,with the
largest share of season ticket holder located within Kent. Other areas with
relative concentrations of season ticket holder include South King County as a
whole as well as Redmond and Lacey.
Kent ShoWare Center November 2012 Page 12
Economic Impacts
Exhibit 14. Non Thunderbirds Patron Residences, ShoWare Center, 2011
'Marysville Granite,Falls
4_Eve`rett
an �
Snohomish
Mukilteo
1k°Monroe
MiIItCreek
Edmondsp
r � z
Sh n#* �. ,l Woodmvalle
oreline'; a Ke morI a r 1
poufsbo Bothell' i'-
-
t,
ry
Kirklai�u Redmond -
I p
Bellevue arrv�iamsh
t
r
Bremerton
SeattjeJ Issaquah
Sno ualmie
PortY3rc y
hard 1i1� �� q
o �r r
� eritory
Bvrien Tukwila
t Sea`Tac 2d1O
I
�f10W3i'f'. �
J
e Maplaalley
1
� ♦CEO VIngtOn
Gig Harbor �.�'"�Federal� � '
e y Black niainond
Tacoma
l �7' Fkife
170 Sumner Enumclaw
Puyaflup x i
Sa n Lak e y `
LAkewood e
i City Boundaries I
m Kent Boundaries
� ., 2011 ShoWare Patrons
Olytnpra }
' d ShoWare Patrons
- Ley
community
attributes
227 Miles Source ShoWare Center.
Community Attributes Inc 2012
Kent SboWlare Center November 2012 Page 13
Economic Impacts
Exhibit 15. Thunderbirds Season Ticket Holder Residence by Zip Code, ShoWare
Center, 2011
(Mary'ille Granite•F all s
t
Everett
t
c
1 Snohomish
€l Mukilteo'
i
j_ Creek
Eeirnonits
" �Kenmo e,;Woodinville
�i Sharehne�
Poulsbo
Bothell
l
r4
Kirkland RedmSnd`�
.�
Sammamish
Bremerton
�.
..cx. SeattI6, �¢rU s;l Iss®push .
PorttIIrchard �. �;�Y,}} n4 � Snoqualmie
y.-
.lrv�
�"a
ton Ren,7ukavtia� •,
' .........
SeaTac 8� y
a
r
t \
�Shp are "
is "Maple Valley
9.0%
m
�� pCovgtonr:.�`
bor
S
Grgk�ar {Auburn
Black,Diamond
* C Auburn..�i t, _- _
Tacoma<� s i t H„
City Boundaries
Fife
y- summer
all Kent Boundaries
Puyup'^ , 3 5
--y i.' ( '. 1, `t Enumclaw
"t &awood i j [ Bonney Lake Percentage of Thunderbird
Season Ticket Holders,2011
Less than 0.51
µ
TL 0.5%- 1.0%
1.0%-5.0°,ro'
syRipta_�, r
Lacey 6 Il 9.0`Ao
' fl}7T€7ltitllt
attributes
0 10 20 Miles source sttoware Center.
1`elm I I - l Coivrmuntiy AtWbutes W 2012
Kent ShoWare Center November 2012 Page 14
Economic Impacts
3
,4 -
• R. I
Exhibit 16 illustrates home residences for all ShoWare Center patrons from 2009
to 2011. During the three years analyzed the most common areas of residence
were South King County and Tacoma/Pierce County. The proportion of patrons
from Kent has steadily declined from a high of 19% in 2009 to a 12% in 2011.
The proportion of patrons from Seattle in 2011 was 13%, similar to that of Kent.
The share of Tacoma/Pierce County patrons has increased steadily from 2009 to
2011, from 16% to 25%.
Exhibit 16. Distribution of Patron Residences, ShoWare Center, 2009-2011
100%
900/0
80% _. ..
7No
60%
16% 25% South King County
22%
50% _
9%
40'/0
13%
8%
30% Kent
Eastside
20% rlsurst€ n County and Southern 1C A
/
4 4 J
100/0 5% ry ' Snohomish County
2"/6 2% 2%
0% i 1 _, 71�L._....--
2009 2010 2011
Source: ShoWare Center, 2012,
Kent ShoWare Center November 2012 Page 15
Economic Impacts
T ,T'
c
���,,.,
;ti.?,
QN.,5..
EMAIL AND INTERCEPT SURVEY RESULTS
Alison Peters Consulting, in conjunction with Community Attributes, conducted
two intercept surveys during the summer of 2012. In addition, two email surveys
were distributed to ShoWare Center patrons: one to 2012 Thunderbirds Hockey
season ticket holders and one sent to all other 2012 ShoWare Center patrons. In
all, four surveys contributed to this analysis, described as follows:
• Email All survey distributed to all non-Thunderbirds 2012 ShoWare
Center patrons
• Email Thunderbirds survey distributed to 2012 Thunderbirds season
ticketholders
• Graduation Intercept survey conducted at 2012 Kentridge High School
graduation
• New Edition Intercept survey conducted at 2012 New Edition concert
Quantitative questions focused on spending patterns within the City of Kent and
outside of ShoWare Center. Four separate surveys were conducted in order to
ascertain data on the broad spectrum of ShoWare Center patrons. The following
sections show the quantitative results related to spending for each individual
survey.
Kent ShoWare Center November 2012 Page 16
Economic Impact
Intercept Results
In order to capture a representative demographic of ShoWare Center attendees
the intercept surveys were conducted at two different types of events: the
Kentridge High School Graduation and the New Edition Concert. The following
presents the quantitative results of the intercept surveys. Exhibit 17 shows the
two intercept survey methods and number of survey participants.
Exhibit 17. Intercept Surveys, ShoWare Center, 2012
Survey Method Total Responses
Graduation In person survey at Kentridge 167
Intercept Survey High school graduation
Concert Intercept In person survey at New 171
Survey Edition Concert
Source: Community Attributes Inc., 2012, Alison Peters Consulting, 2012.
Kentridge Graduation
One intercept survey was conducted at the Kentridge High School Graduation in
June 2012. Overall attendance at Graduation events totaled 36,905 patrons in
2011 spread over eight Graduation events (Exhibit 18). The Kentridge
Graduation was attended by approximately 4,100 people and started at 7pm.
Exhibit 18. Graduation Event Attendance, 2011
Event Attendance Events Avg Attendance
Graduation 36,904 8 4,613
Source: ShoWare Center, 2012.
Exhibit 19 summarizes spending results from the Graduation Intercept Survey.
Dining before or after the event was found to be fairly common among patrons
with more patrons (36%) spending money on dining after the event than before
(20%). Shopping, lodging and miscellaneous spending were found to be less
common. 10% of patrons stated they shopped before or after the event while the
percentages of those spending money on lodging (4%) and miscellaneous items
(5%) was even lower.
Kent ShoWare Center November 2012 Page 97
Economic Impacts
Exhibit 19. Graduation Intercept Survey Spending Results,
ShoWare Center, 2012
Dining Before Dining After 2 Shopping
7%
P..o
$21 to$30 64% $21 to$30 $21 to$50
$31 to$50 5% $31 to$50 More than $50
80% More than$100 More than$100
90%
2 %
Lodging 2`tb 1% Miscellaneous
Less than$100 $21 to$30
More than$100 $31 to$50
96% 95% More than$100
Source: Community Attributes Inc., 2012, Alison Peters Consulting, 2012,
Exhibit 20 summarizes the percentage of patrons that spent money on dining,
shopping, lodging or miscellaneous items as well as the average amount spent.
On average, those that did spend money on dining spent a total of$35.38 before
and/or $43.24 after (referred to in the table as "Avg., Those Spending".
Shopping was less common with those that did spend money spent $28.18 on
average. The Average All Patrons column illustrates per patron spending by
graduation attendees and includes those that spent nothing. Average spending
figures from this column were utilized in estimating spending impacts described
later in the report.
Kent SboWare Center November 2012 Page 18
Economic Impacts
Exhibit 20. Spending Averages,
Graduation Intercept Survey, 2012
Spending Percentage Avg,Those Avg All
Category Spending Spending Patrons
Dining
Before 20% $35.38 $6.99
After 36% $43.24 $15.46
Combined 28% $78.62 $22.45
Shopping 10% $28.18 $2.85
Lodging 4% $59.88 $2.22
Miscellaneous 5% $36.30 $1.82
Source: Community Attributes Inc., 2012, Alison Peters
Consulting, 2012.
Kent SboWare Center November 2012 Page 19
Economic Impacts
New Edition Concert
An intercept survey was conducted at the New Edition concert held at ShoWare
Center on June 22, 2012. Concert events in 2011 attracted a total of 34,080
patrons spread over 12 concert events (Exhibit 21). The New Edition Concert
drew 2,996 patrons to ShoWare Center and started at 9pm.
Exhibit 21. Concert Event Attendance, 2011
Event Attendance Events Avg Attendance
Concert 34,080 12 2,840
Source: ShoWare Center, 2012.
Exhibit 22 summarizes spending results from the New Edition Intercept Survey.
The proportion of those surveyed dining before or after the concert was similar
to the proportion of graduation diners. Among the concert survey participants
34% responded that they dined before the event and 33% responded that they
dined after. Similarly to the graduation survey respondents, shopping,lodging
and miscellaneous spending were found to be less common. Six percent of
patrons stated they shopped before or after the event while 1% stated they spent
money on lodging. A slightly higher percentage spent money on miscellaneous
items (13%).
Exhibit 22. Concert Intercept Survey Spending Results,
ShoWare Center, 2012
9% Dining Before Dining After o Shopping
1000/0
$21 to$30 $21 to$30 $21 to$50
66% $31 to$50 % 67% $31 to$50 More than$50
More than$100 More than$100
4446
3
Lodging 4% Miscellaneous
Less than$100
More than$100 $21 to$30
$31 to$50
°10
$7
99 More than$100
Source: Community Attributes Inc., 2012,Alison Peters Consulting, 2012.
Kent ShoWare Center November 2012 Page 20
Economic Impacts
Exhibit 23 illustrates the percentage of New Edition concert patrons that spent
money outside of ShoWare Center within Kent along with the average amount
that they spent. On average, those that did spend money on dining spent a total
of$35.10 before and/or $42.88 after. Spending associated with shopping was less
common but those that did spent $38.62 on average. The Average All Patrons
column also illustrates per patron spending by Concert attendees and includes
those that spent nothing. Average spending figures from this column were
utilized in estimating spending impacts described later in the report.
Exhibit 23. Concert Survey,
Spending Summary Table, 2012
Percentage Avg,Those Avg All
Spending Spending Spending Patrons
Dining
Before 34% $35.10 $11.77
After 33% $42.88 $14.12
Combined 33% $77.98 $25.89
Shopping 6% $38.62 $2.23
Lodging 1% $59.88 $0.71
Miscellaneous 13% $36.71 $4.91
Source: Community Attributes Inc., 2012. Alison Peters
Consulting, 2012.
Kent ShoWare Center November 2012 Page 21
Economic Impacts
Email Survey Results
In coordination with ShoWare Center staff, Community Attributes distributed an
email survey to all ShoWare Center patrons that attended events in 2012. A
separate email survey was distributed to Seattle Thunderbirds season
ticketholders during the same time period. The following subsections summarize
the quantitative results from the email surveys. Exhibit 24 summarizes the two
email survey types and number of survey participants.
Exhibit 24. Email Surveys, ShoWare Center, 2012
Survey Method Total Responses
Email All Survey emailed to 2012 non- 318
Thunderbird ShoWare patrons
Email Thunderbird Survey emailed to 2012 782
Thunderbird season ticket
holders
Source: Community Attributes Inc., 2012.
Kent ShoWare Center November 2012 Page 22
Economic Impacts
Email Survey to 2012 Event Patrons (not including Thunderbirds patrons)
Exhibit 25 summarizes spending results from the email survey distributed to all
2012 patrons not including Thunderbirds season ticket holders. The survey
results in the dining category differed from the intercept survey results as dining
out was more common among respondents. 78% of respondents stated they
spent money on dining before events while 47% of respondents stated they spent
money on dining after events. Spending on lodging and entertainment outside of
ShoWare Center was found to be less frequent. Shopping outside of ShoWare
Center was not calculated for this survey, but shopping for souvenirs at the event
was found to be fairly common.
Exhibit 25. Email All Survey Spending Results,
ShoWare Center, 2012
22% Dining Out Before Dining Out After
h
SI1 to S"10
$21 to$30
$31 to$50 53% $31 to$50
23% 10
More than$100 k More than$100
15%
Entertainment Before 3%
Entertainment After
$21 to 5S0 511 ttz$So
More than$50 More than$So
94% 91%
1 %
Lodging 35% Souvenirs
Less than$l00
More than$100 $21 to$50
$More than$50
14%
96%
Source: Community Attributes Inc., 2012.
Kent ShoWare Center November 2012 Page 23
Economic Impacts
Exhibit 26 illustrates the percentage of those Email All survey participants that
spent money outside of ShoWare Center and within Kent. Also provided is the
average amount spent of those that did spend money outside of ShoWare Center.
Of those that did spend money on dining, the average spent before an event was
$26.45 and the average spent after was $24.45. The exhibit illustrates per patron
spending by Email All survey respondents including those that spent nothing.
Average spending figures from this column were utilized in estimating spending
impacts described later in the report.
Exhibit 26. Email All Survey,
Spending Summary Table, 2012
Spending Percentage Avg,Those Avg All
Category Spending Spending Patrons
Dining
Before 78% $26.45 $20.72
After 47% $24.45 $11.57
Combined 63% $50.90 $32.29
Shopping NA NA NA
Lodging 4% $93.11 $3.34
Entertainment
Before 6% $26.46 $1.64
After 9% $35.12 $3.06
Source: Community Attributes Inc., 2012.
Kent ShoWare Center November 2012 Page 24
Economic Impacts
Email Survey to 2012 Thunderbirds Season Ticketholders
Exhibit 27 summarizes spending results from the email survey distributed to all
2012 Thunderbirds season ticketholders. Dining out was common among
respondents with 85% stating they spent money on dining before and 38%
spending after. The noticeable difference between the Email All Survey and the
Thunderbirds Email survey is the larger percentage of patrons dining before the
game. Spending on lodging and entertainment outside of ShoWare Center was
found to be low. Almost half(46%) of survey respondents stated that they spend
money on souvenirs at the event.
Exhibit 27. Thunderbirds Email Survey Spending Results,
ShoWare Center, 2012
15%
Dining Out Before 8% Dining Out After
a
$21 to$30 $21 to$30
28% io $31 to$50 62% $31 to$50
More than$100 4 More than$100
3% .3% 2%
.6°10
Entertainment Before Entertainment After
$21 to$50 $21 to$50
More than$50 More than$50
95% 95%
Lodging Souvenirs
Less than $100 46%
More than$100 $21 to$50
Wore than$50
98% 23%
Source: Community Attributes Inc., 2012.
Kent ShoWare Center November 2012 Page 25
Economic Impacts
Exhibit 28 illustrates the percentage of Thunderbirds email survey patrons that
spent money outside of ShoWare Center within Kent along with spending
averages. Average spending among those that did spend money on dining was
$26.26 before the event and $22.03 after. The Average All Patrons column
illustrates per patron spending by Thunderbirds email survey respondents
including those that spent nothing. Average spending amounts from the exhibit
were utilized in calculating total spending by event type.
Exhibit 28. Thunderbirds Email Survey,
Spending Summary Table, 2012
Spending Percentage Avg,Those Avg All
Category Spending Spending Patrons
Dining
Before 85% $26.26 $22.42
After 38% $22.03 $8.36
Combined 62% $48.28 $30.78
Shopping NA NA NA
Lodging 2% $54.77 $1.34
Entertainment
Before 5% $19.30 $0.87
After 5% $19.95 $0.93
Source: Community Attributes Inc., 2012.
Kent ShoWare Center November 2012 Page 26
Economic Impacts
IMPACT ANALYSIS
The following section provides a detailed analysis of the economic impacts
ShoWare Center has on both City of Kent's economy and the direct fiscal
impacts it has on the City of Kent's revenues. Exhibit 29 maps ShoWare
Center's impact and depicts revenue sources and impacts.
Exhibit 29. ShoWare Center Impacts
l
ShoWare
Non-Event
Income Income
ShoWare
Advertising Concessions Food &
Beverages
SponsorshipsRetail
Ticket Sales
Lodging
Rental Fees Parking
Merchandise
Admissions Tax Lodging Tax RestaurantlBar Tax
B&O Tax Parking Tax Sales Tax
Fuel Tax Property Tax Utility Tax
Source: Community Attributes Inc., 2012.
Kent ShoWare Center November 2012 Page 27
Economic Impacts
Visitor Spending
Visitor spending estimates and overall impacts are based on survey data collected
during the summer of 2012 (see Email and Intercept Survey Quantitative Results
section). Impacts are also based on attendance and revenue data provided by
ShoWare Center. Both sources provided the foundation for estimating direct and
indirect financial impact generated by ShoWare Center. Financial impacts include
direct and induced fiscal impacts for the City of Kent.
Exhibit 30 illustrates the average per patron spending used to calculate spending
outside ShoWare Center (spending directly related to ShoWare Center events).
Events are segmented into five categories based on the attendance data shown
earlier in the report. Exhibit 31 illustrates the number of responses given by
survey respondents organized by each survey type completed.
Exhibit 30. Patron Average Spending by Event Type
Outside ShoWare Center, 2011
Event Category Dining Shopping Lodging Entertainment Total
T-Birds and Other Sporting Events/1 $30.78 $2.54 $1.34 $1.80 $36.46
Family Entertainment/2 $32.29 $2.85 $3.34 $4.71 $43.19
Graduation and Civic $22.45 $2.85 $2.22 $1.82 $29.34
Concerts $24.20 $2.23 $0.71 $4.91 $32.06
Business/Trade/3 $32.29 $2.54 $3.34 $4.71 $42.88
Weighted Average $29.25 $2.60 $1.60 $3.08 $36.63
Notes:
1 Assumes spending at T-Birds games is same at other sporting events
2 Utilizes same per patron spendingvalues as Graduation and Civic Events
3 Utilizes All Events Email Survey averages
Source: Community Attributes Inc., 2012.,Allison Peters Consulting, 2012.
Exhibit 31. Survey Responses by Survey Type and
Spending Category, ShoWare Center, 2011
Spending Category Survey Type
I me rce pt Email
Graduation Concert Merged All Events T-Birds
Dining 167 173 340 291 689
Shopping 168 173 341 291 725
Lodging 162 168 330 279 694
Entertainment/Miscellaneous 160 172 NA 275 689
Source: Community Attributes Inc., 2012.,Allison Peters Consulting, 2012.
Kent ShoWare Center November 2012 Page 28
Economic Impacts
ShoWare Center attendance in 2011 was used to calculate spending by patrons
outside of ShoWare Center. The averages calculated for each event type and
spending type were multiplied by the attendance numbers shown in Exhibit 32.
Exhibit 32. Patron Attendance by Event Category, ShoWare Center, 2011
Patrons per
Event Category Patrons Events Event Percentage
T-Birds and Other Sporting Events 164,087 60 2,735 50%
Family Entertainment 62,438 5 12,488 19%
Graduation and Civic 49,331 12 4,111 15%
Concerts 34,080 12 2,840 10%
Business/Trade 21,419 49 437 6%
Total 331,355 138 2,401 100%
Source: ShoWare Center, 2012.
Exhibit 33 illustrates total patron spending outside ShoWare Center in 2011
segmented into event types and spending types. Total patron spending is based
on the averages shown in Exhibit 30 as well as overall attendance calculated for
each event type provided in Exhibit 32. Thunderbirds and Other Sporting
Events result in the largest amount of spending outside ShoWare Center, totaling
an estimated $5,982,684 in 2011. Total spending from all events is estimated at
$12,137,440 in 2011.
Exhibit 33. Total Patron Spending Outside ShoWare Center, 2011
Event Category Dining Shopping Lodging Entertainment Total
T-Birds and Other Sporting Events $5,050,643 $416,362 $220,155 $295,523 $5,982,684
Family Entertainment $2,016,364 $178,038 $208,381 $293,869 $2,696,653
Graduation and Civic $1,107,579 $140,664 $109,406 $89,542 $1,447,191
Concerts $824,896 $76,085 $24,294 $167,291 $1,092,567
Business/Trade $691,702 $54,350 $71,484 $100,810 $918,346
Total $9,691,185 $865,499 $633,720 $947,035 $12,137,440
Source: Community Attributes Inc., 2012.,Allison Peters Consulting, 2012.
Kent ShoWare Center November 2012 Page 29
Economic Impacts
Kent Fiscal Impacts
Fiscal impacts associated with ShoWare Center are related to a variety of sources
including spending at ShoWare Center, ticket sales and patron spending outside
of ShoWare Center and within Kent. Impacts from the following spending types
were calculated for ShoWare Center.
• Sales tax revenues —patron spending times sales tax rate
• Hotel/motel tax revenues
• Restaurant and bar taxes
• Ticket sales (admissions tax)
Exhibit 34 illustrates the sales tax rate and distribution for the City of Kent. The
tax is collected for sales on food, beverages and souvenirs for purchases made
within ShoWare Center and sales made at surrounding shops and restaurants in
Kent. Exhibit 35 illustrates other applicable tax rates which consist of a
hotel/motel tax, a Lodging/Convention Center tax and an admission tax.
Exhibit 34. Sales Tax Rate and Distribution,
City of Kent, 2011
9.5%Rate Structure Distribution Percent
State 6.50% 68.4%
RTA 0.90% 9.5%
Criminal Justice 0.10% 1.1%
Metro 0.80% 8.4%
City of Kent 0.85% 8.9%
King County 0.35% 3.7%
Total 9.50% 100.00/0
Sales Tax Distribution of.05%Stadium Tax
State 100.00/0
Source: City of Kent, Washington Office of Financial
Management, 2012.
Exhibit 35. Other Tax Rates, City of Kent, 2011
Tax Rate
Special Hotel/Motel Tax 1.0%
Lodging/Convention Center Tax 2.8%
Source: City of Kent, Washington Office of Financial
Management, 2012.
Kent ShoWare Center November 2012 Page 30
Economic Impacts
Estimates of statewide and City of Kent fiscal impacts are based on the
aforementioned tax rates in addition to the average spending rates by spending
type and event type. Exhibit 36 illustrates the statewide fiscal impact of patron
spending outside of ShoWare Center. Exhibit 37 illustrates the City of Kent's
share of those fiscal impacts. Total statewide impacts of patron spending outside
ShoWare Center in 2011 are estimated at $1,177,138. Fiscal impacts for the City
of Kent are estimated at $127,250 in 2011.
Exhibit 36. Estimated Statewide Fiscal Revenues (includes Local, County and
State), Patron Spending Outside ShoWare Center, 2011
Event Category Dining Shopping Lodging Entertainment Total
T-Birds and Other Sporting Events $479,811 $39,554 $29,281 $28,075 $576,721
Family Entertainment $191,555 $16,914 $27,715 $27,918 $264,100
Graduation and Civic $105,220 $13,363 $14,551 $8,506 $141,641
Concerts $78,365 $7,228 $3,231 $15,893 $104,717
Business/Trade $65,712 $5,163 $9,507 $9,577 $89,959
Total $920,663 $82,222 $84,285 $89,968 $1,177,138
Source: Community Attributes Inc., 2012.,Allison Peters Consulting, 2012.
Exhibit 37. City of Kent Fiscal Revenues,
Patron Spending Outside ShoWare Center, 2011
Dining Shopping Lodging Entertainment Total
T-Birds and Other Sporting Events $42,930 $3,539 $10,237 $2,512 $59,219
Family Entertainment $17,139 $1,513 $9,690 $2,498 $30,840
Graduation and Civic $9,414 $1,196 $5,087 $761 $16,459
Concerts $7,012 $647 $1,130 $1,422 $10,210
Business/Trade $5,879 $462 $3,324 $857 $10,522
Total $82,375 $7,357 $29,468 $8,050 $127,250
Source: Community Attributes Inc., 2012.,Allison Peters Consulting, 2012.
Kent ShoWare Center November 2012 Page 31
Economic Impacts
In addition to spending outside of ShoWare Center by patrons, SMG,which
operates ShoWare Center, collects sales and Admissions taxes on sales inside
ShoWare Center. Exhibit 38 shows the sales and admissions taxes collected by
SMG from 2009 to 2011. Thunderbirds Hockey also collects admissions taxes
which are described in the next section of the impact analysis.
Exhibit 38. Sales and Admissions
Taxes Paid, ShoWare Center, 2009 - 2011
Tax 2009 2010 2011
Sales $175,128 $165,316 $184,535
Admissions $119,558 $105,954 $133,249
Source: ShoWare Center, 2012.
Exhibit 39 summarizes Thunderbirds operations at ShoWare Center in 2011.
Gross ticket sales totaled $2,520,000 including $126,000 collected in admissions
tax in 2011. The Thunderbirds estimate total expenditures in the Kent to have
been $930,000 in 2011 and payroll equaled $1,391,000 during the same year.
Exhibit 39. Thunderbirds Revenues/Expenditures,
City of Kent, 2011
Revenue/Expenditure Amount
Gross Ticket Sales $2,394,000
Admission Tax Collected $126,000
Total $2,520,000
Payroll $1,391,000
Kent Area Expenditures/1 $930,000
Source: Seattle Thunderbirds Hockey, 2012.
Kent ShoWare Center November 2012 Page 32
Economic Impacts
Direct, Indirect and Induced Benefits
Exhibit 40 summarizes total revenues by revenue category, including ticket sales
and rental revenues for SMG and the Thunderbirds, ShoWare Center concession
sales and event related spending outside of ShoWare. Total fiscal benefits are
calculated based on applicable tax rates provided by the state and City of Kent. In
2011 it is estimated that there was a total of$16,606,900 in direct revenues (or
spending) associated with ShoWare Center. The total fiscal benefits, those
accruing to the state, county and City of Kent, totaled $1,620,900. The City of
Kent's share of the direct fiscal benefits was $403,000.
Exhibit 40 includes the indirect and induced multiplier output based on the
Implan Input/Output model (Exhibit 41). The multiplier used-(1.68) is a
weighted average of the segments shown. Total direct, indirect and induced
spending in 2011 is estimated at $25,126,200 —assuming 75% of indirect and
induced impacts are captured within Kent. The total fiscal impact of this
spending is estimated at $2,452,400, including taxes gathered by other
Washington State jurisdictions.
Exhibit 40. Business Incomes and Fiscal Impact Analysis,
ShoWare Center, 2011
Revenues Total Fiscal Benefits/1 Kent Fiscal Benefits
SMG Ticket Sales and Revenues/2 $1,323,200 $133,200 $133,200
Thunderbirds Gross Ticket Sales $2,394,000 $126,000 $126,000
ShoWare Sales(concessions)/3 $752,300 $184,500 $16,500
Event related Spending
Dining $9,691,200 $920,700 $82,400
Shopping $865,500 $82,200 $7,400
Lodging $633,700 $84,300 $29,500
Entertainment $947,000 $90,000 $8,000
Subtotal $12,137,400 $1,177,200 $127,300
Subtotal of ShoWare direct revenues $16,606,900 $1,620,900 $403,000
Indirect&Induced revenues/5 $8,519,300 $831,500 $206,700
Total Direct,Indirect,and Induced $25,126,200 $2,452,400 $609,700
Notes
1 Benefits to the State,County and City of Kent
2 Adjusted gross income less ancillary income
3 Includes taxable retail sales made at ShoWare Center
4 Based on Implan InpuVouputmodel,King County,2010.
5 Assumed that 75%of Indirect and induced revenues are captured in Kent
Source: Community Attributes Inc., 2012.,Allison Peters Consulting, 2012.
Kent ShoWare Center November 2012 Page 33
Economic Impacts
Exhibit 41. Indirect and Induced Multipliers by Impact Segment,
Implan Model, 2012
Industry Output
Code Industry Description Output Assigned Multiplier
327 Retail Stores-Clothing and clothing accessories Shopping 1.73
328 Retail Stores-Sporting goods, hobby,book and music Shopping 1.66
329 Retail Stores-General merchandise Shopping 1.58
402 Performing arts companies ShoWare 1.85
403 Spectator sports companies ShoWare 1.69
409 Amusement parks,arcades,and gambling industries Entertainment 1.60
410 Other amusement and recreation industries Entertainment 1.60
411 Hotels and motels, including casino hotels Lodging 1.62
413 Food services and drinking places Dining 1.62
Regional Multiplier 1.68
Source: MIG Inc., 2010.
Exhibit 42 details the fiscal impacts associated with ShoWare Center for the City
of Kent and provides a combined total for direct and indirect fiscal benefits for
2011. In 2011, total fiscal benefits generated by ShoWare Center for the City of
Kent are estimated at $609,700.
The fiscal impact estimates include taxes collected by the City from ShoWare
Center and Thunderbirds Hockey (sales tax and admissions tax at ShoWare
Center), taxes collected from event related spending outside of ShoWare Center
and indirect/induced impacts based on the previously described multiplier
calculation (Exhibit 40).
Exhibit 42. City of Kent Fiscal Impact Summary,
ShoWare Center, 2011
Direct Benefits
Admissions tax $259,200
Sales tax from sales at ShoWare $16,500
ShoWare Sales Impacts $275,700
Other Patron Spending Impacts $127,300
Total Direct Benefits $403,000
Indirect and Induced Benefits $206,700
Total Kent Fiscal Benefits $609,700
Source: Community Attributes Inc., 2012,
Allison Peters Consulting, 2012.
Kent ShoWare Center November 2012 Page 34
Economic Impacts
STAKEHOLDER INTERVIEWS
This section of the report synthesizes the perspective of stakeholders interviewed
during the summer of 2012. Perspectives on the impacts of ShoWare Center to
surrounding businesses and the City of Kent in general provide qualitative
feedback and enrich the understanding of how ShoWare Center functions within
the economy of Kent. Appendix B provides a detailed compilation of the
stakeholder comments summarized in this section.
Impacts to Local Businesses
Restaurants in particular report increased revenues. Restaurants located near
ShoWare Center report that events directly increase their revenues, in terms of
both total number of customers and per-person spending. Not all events have the
same impact, and it was widely reported that these benefits are more pronounced
for sporting events, and are more likely before, rather than after an event.
"On concerts and sports events we will see upwards of 50 and 75% increase."
Non-retail businesses use ShoWare Center events for business
development and employee appreciation. Many companies, especially
Thunderbirds sponsors, report that they frequently give tickets away to existing
or potential clients. Business owners report that this benefit helps drive sales and
is a regular feature of their sales plans. Businesses also report using tickets to
ShoWare events for employee appreciation and fringe benefits, noting that
younger employees especially enjoy this perk.
"We give away the tickets and our employees use them. That is good for business."
Increased visibility for business located near ShoWare Center. ShoWare
Center events result in increased visibility of all businesses in the surrounding
area. Stakeholders generally feel that patrons attending events are exposed to
their businesses in general, and that ShoWare Center events serve as an important
soft marketing tool.
`More traffic downtown is good for exposure. This means people seeing my signs I have
at my downtown office, The foot and vehicle traffic provides good exposure."
Businesses have positive associations with ShoWare Center. Many business
interviewed do not measure sales and revenues in a way that can attribute boosts
to ShoWare Center. However, stakeholders report general positive association
with ShoWare Center. They attribute increases in profits to ShoWare events and
in general assign positive attributes to proximity to the venue.
Kent ShoWare Center November 2012 Page 35
Economic Impacts
`7'm not sure what the revenue impacts have been for our business, but overall it has
been a positive experience for our business."
Challenges and Opportunities
Parking is an issue for surrounding businesses. The impacts of parking on
surrounding businesses in not always perceived positively. Some feedback stated
that ShoWare Center patrons will come and dine at a restaurant before and event
and walk to the facility from the restaurant, leaving their cars behind and making
it difficult for customers later in the evening to find parking spots. Police
assistance to manage parking was requested.
`Events destroy parking, Parking is a limited premium as is, and people attending
ShoWare Center come in for a beer or an appetiser and then they leave their car and
prevent other customers."
Event related traffic can be problematic. Traffic, especially traffic going east
and west, can become clogged on big event days. Stakeholders report this less as
a severe negative impact on their business and rather as a minor inconvenience.
Having big events one after another caused heavier traffic in the area. But this didn't
really impact us heavily. It was minimal"
There is untapped potential for cross-collaboration with local businesses.
Many businesses said they do not partner or sponsor with ShoWare Center in any
way, but expressed interest in learning new ways to cross-collaborate. There is a
desire to see collaboration and marketing of the entire area as a whole.
`Trying to find a way to promote ShoWare Center and Downtown Kent is a top
priority. There is just a wonderful product and we just need to figure out how to
promote it."
Relationship to Kent and Place Making
ShoWare Center compliments its neighbors well, especially Kent Station,
and serves as an anchor institution. Stakeholders, both representatives of
business in Kent Station and outside the general area agree that ShoWare Center
serves as an anchor institution to its area and is helping to drive economic
development. The events drive people into the area to shop, dine and seek
professional services. The retail opportunities in Kent Station provide a full
experience for event attendees. One stakeholder who works in real estate
development credited ShoWare Center as being a major factor in a recent land
deal.
Kent ShoWare Center November 2012 Page 36
Economic Impacts
"As Kent keeps getting nicer, our employees and customers want to do things in Kent.
It's nice. Our ability to move in that area is improved the nicer it is and more reasons
we have to go down there."
Stakeholders feel generally aware of events at ShoWare Center. Stakeholders
are generally aware of the type and frequency of events at ShoWare Center,
reflecting that marketing and event promotion efforts are effective. Some
stakeholders, however, feel that a holistic tourism and marketing program is
necessary to promoting Kent as a destination.
`7f we're evergoing to go to the next level we have to actually promote it. Tourism can
grow through an actual marketing program, that's where we are right now."
The Thunderbirds are vital to the success of ShoWare Center and a major
benefit to surrounding businesses. The Thunderbirds are perceived to be the
anchor tenants of the ShoWare Center. Restaurants and retail respect and
understand the positive impacts this relationship has for them, and desire to
maintain the Thunderbirds as a continual local draw and opportunity for business
development through the use of sponsor tickets.
"Thunderbirds games provide the most positive impact."
Stakeholders find the facility clean and well-maintained. Stakeholders
compliment the facility for its design, maintenance and describe attending events
there as a pleasurable experience. These sentiments echo findings from patron
surveys. It is also noted as being particularly well located for access to the
Highways, and for transit.
`71's an awesome and great facility. I am a big advocate. Its nice to have a local
facility like this so we don't have to go to Tacoma or Seattle. Its clean and nice."
Kent ShoWare Center November 2012 Page 37
Economic Impacts
APPENDIX A. PATRON FEEDBACK FOR SHOWARE EXPERIENCE
The following section provides a synopsis of qualitative information gathered
from the four surveys during the summer of 2012.
Intercept Surveys
Exhibit 43 shows the origins of Intercept Survey participants. Nearly 70 percent
of graduation attendees live within the city limits (43%) or within 10 miles of
Kent (26%). The New Edition concert drew from a noticeably different
geography in that they arrived from outside the immediate area (60% said they
were not from Kent or within 10 miles). (Alison Peters Consulting Intercept
Survey Report, 2012).
Exhibit 43. Attendee Origin,
Intercept Surveys, 2012
7No
60%
60%
50%
43%
4090
32/0 30%
30% 26%
_r
20°� m Residence
— Live in Kent
9%
10°/u Live Farther Away
0% N�
Kentridge Graduation New Edition Concert
Source: Alison Peters Consulting, 2012.
Kent ShoVare Center November 2012 Page 38
Economic Impacts
Exhibit 44 illustrates satisfaction levels of Intercept Survey participants.
Satisfaction with ShoWare Center is very high among both graduation attendees
(81%very satisfied) and concert goers (76%very satisfied). Satisfaction increases
among local Kent residents (85% for residents of Kent). Dissatisfied patrons
represented a small percentage of patrons surveyed (4%).
Exhibit 44. Attendee Satisfaction, Intercept Surveys, 2012
Surrounding Out of
Level of Satisfaction Total City of Kent Areas Town Graduation Concert
Very satisfied 78% 85% 80% 73% 81% 76%
Somewhat satisfied 17% 13% 14% 22% 13% 21%
Somewhat dissatisfied 2% 2% 3% 2% 4% 1%
Very dissatisfied 2% 00/0 2% 3% 2% 2%
Source: Alison Peters Consulting, 2012.
Exhibit 45 illustrates ShoWare Center attributes mentioned by attendees
surveyed. There was a strong degree of consensus from attendees at both events
around the top two answers provided overall: Location is convenient (mentioned
by 36% overall) and Clean/New (mentioned by 34% overall).
Exhibit 45. Best ShoWare Center Attributes, Intercept Surveys, 2012
ShoWare Attribute Overall Graduation Concert
Location is convenient 36% 39% 33%
Clean, new 34% 30% 38%
Parking is convenient,free 32% 25% 38%
General venue is good 25% 13% 36%
Good views from all seats 19% 14% 23%
Seating, aisles are comfortable 15% 13% 16%
Friendly staff 9% 1% 16%
Concessions 8% 00/0 14%
Restrooms 7% 1% 12%
Sound system 5% 0% 100/0
Venue is built green 4% 00/ 7%
Luxury boxes 3% 00/0 5%
Other 19% 289/6 12%
Source: Alison Peters Consulting, 2012.
Kent ShoWare Center November 2012 Page 39
Economic Impacts
Exhibit 46 illustrates desired event types by ShoWare Center patrons. The most
desirable events mentioned by patrons were music events (62% of intercept
survey respondents). Sports events (35%), family events (17%) and theater events
(11%) were other event types mentioned.
Exhibit 46. Desired Event Type, Intercept Survey, 2012
I1%
Event Type
Sports Events
62% Family Events
Source: Alison Peters Consulting, 2012.
Exhibit 47 cross tabulates event preferences with several subgroups of intercept
survey respondents. Of note is that a majority of every subgroup has a preference
for more musical acts/concerts at ShoWare Center. Second, those who dined out
prior to and during the concert were more likely to indicate an interest in sports
events at ShoWare Center. They were also slightly less likely to indicate an
interest in other concerts. The same demographic group (interested in sporting
events specifically) is more likely to live in Kent. Finally, Kent residents were
twice as likely to mention an interest in family-friendly shows at ShoWare Center
(33% vs. 17% overall). Even residents within 10 miles did not see the
convenience or value-add in having more family-friendly shows in Kent. (Alison
Peters Consulting, 2012)
Exhibit 47. Desired Event Type Cross Tabulation, Intercept Survey, 2012
Surrounding Out of Dined Out Purchased Dined Out
Event Total Kent Areas Town Before Event Concessions After Event
Music events 62% 67% 67% 59% 55% 54% 63%
Sports events 35% 42% 30% 38% 50% 40% 34%
Family events 17% 33% 15% 14% 20% 19% 19%
Theater events 11% 8% 19% 9% 15% 15% 19%
Source: Alison Peters Consulting, 2012.
Kent ShoWare Center November 2012 Page 40
Economic Impacts
Email Surveys
The following section illustrates quantitative results from the email surveys sent
to general 2012 patrons in addition to 2012 Thunderbirds season tickets holders.
Exhibits 48 and 49 illustrate attendance frequency by those surveyed. The
percentage of events attended is also provided for survey types. Thunderbirds
season ticket holders were, expectedly, more frequent visitors of ShoWare Center
than Email All survey respondents. 72% of Email All respondents reported
attending events 1 to 2 times per year. Among events attended, Email All
respondents frequented concerts and non-musical performances the most.
Exhibit 48. ShoWare Center Attendance, Email All Survey, 2012
Responses 227
250 _ Events Attended
72% 4 15% .
Other sporting events
200 _ 2G Concert
150
Graduation
100
54
17% 35
50
0
1-2 times a year 3-4 times a year 5 or more times a year
Times Per Year
Source: Community Attributes Inc., 2012.
Exhibit 49. ShoWare Center Attendance, Thunderbirds Email Survey, 2012
Responses
350 311
300 260
40% Events Attended
34% 4
Other sporting events
z50 2D2 Concert
26%
200
67%
150 Graduation
100
50
0
1-2 times a year 3-4 times a year 5 or more times a year
Times Per Year
Source: Community Attributes Inc., 2012.
Kent ShoWare Center November 2012 Page 41
Economic Impacts
Exhibits 50 and 51 illustrate the frequency that both email survey respondent
groups dine and shop when visiting ShoWare Center. Both survey groups
indicated that dining was a much more likely activity than shopping. 53% of
Email respondents and 57% of Thunderbirds respondents stated they dined
Usually. Comparatively, 9% of Email respondents and 10% of Thunderbirds
respondents stated they shopped Usually.
Exhibit 50. ShoWare Center Dining and Shopping Frequency,
Email All Survey, 2012
17% Dining Out Shopping
Usually 29% Usually
30% 62%
Source: Community Attributes Inc., 2012.
Exhibit 51. ShoWare Center Dining and Shopping Frequency,
Thunderbirds Email Survey, 2012
19% Dining Out Shopping
Usually 2 Usually
24% 62%
Source: Community Attributes Inc., 2012.
Kent ShoWare Center November 2012 Page 42
Economic Impacts
Exhibits 52 and 53 illustrate the locations where both email survey groups
spend money before or after attending an event at ShoWare Center. Kent Station
was the predominant location mentioned. Among Email All survey respondents,
54% stated they spend money at Kent Station and among Thunder Email survey
respondents 58% stated they spent money at Kent Station.
Exhibit 52. Dining and Shopping Location,
Email All Survey, 2012
Responses 182
200 _ ........
54%
180 ......_. ._.__._.. ........ ................-..- ---- -- -.
160 _.._
140 ----- --- — .... _.......................... .- -....... . _............... .........................
120 _. __..-..-_._ ._.. ...-- - . ....... - ...... ........ ...........
100 _._.... ...-....._ .. .. Z4 ..........
80 _ 22%
60 _36. 38
_
11% 11%
40
8
20 ... - - � Z"fu _
-- .
Kent Station Historic East Hill West Hill Outside of Kent
Downtown Kent
Location
Source: Community Attributes Inc., 2012.
Exhibit 53. Dining and Shopping Location,
Thunderbirds Email Survey, 2012
Responses
600 533 _ _......_. _
58%
500 _
400
300 --.--
163
200 86 --18%......__
12%
100 — - - 9% 27- - --
■ 3%
0 _—
Kent Station Historic East Hill West Hill Outside of Kent
Downtown Kent
Location
Source: Community Attributes Inc., 2012.
Kent SboVare Center November 2012 Page 43
Economic Impacts
Exhibits 54 and 55 illustrate the responses provided by Email survey
participants concerning amenities and experience. Patrons were asked what
amenities they wished to see added to the City of Kent. Participants were given
three options: public spaces, cultural arts or entertainment, each with a detailed
description. Distribution among the categories was even among both surveys
with entertainment being the most commonly selected for both.
Patrons were also asked what would enhance the overall experience of events at
ShoWare Center and in Kent. Enhance the Event was the most common answer
for both survey types, with Enhance Nearby Restaurants and Enhance Nearby
Amenities also mentioned frequently.
Exhibit 54. Amenities and Experience,
Email All Survey, 2012
Desired Amenities t Experience
"
40% Public Spaces ,._==. Enhance the event
� �,
8% "�i 263Cf ISE`cdt t3°¢ F)lai£S
33% 22%
Source: Community Attributes Inc., 2012.
Exhibit 55. Amenities and Experience,
Email All Survey, 2012
�ql
Desired Amenities Experience
Enhance the event
Public Spaces
46%
4
28'Y 3TY
Source: Community Attributes Inc., 2012.
Kent ShoWare Center November 2012 Page 44
Economic Impacts
Exhibits 56 and 57 illustrate patron household income data for both email
surveys. A greater percentage of Thunderbirds respondents have a household
income $100,000 or more (40%). Email All respondents, representing a mix of
event types, had a smaller percentage with household income greater than
$100,000 (32%), with a greater proportion of respondents in the $60,000 to
$99,000 category or less than $60,000 category.
Exhibit 56. Household Income,
Email All Survey, 2012
Responses
140 123 _
41%
120 _ _ _ 97 .
100 80 __ _ _ _ ...--- - -- 32% ..
27%
80
60 _ ._..- — -. .....
40 __...
20
<60k 60-99k 100k+
Household Income
Source: Community Attributes Inc., 2012.
Exhibit 57. Household Income,
Thunderbirds Email Survey, 2012
Responses
350 - ___ 290
300
271
3
250
167
200
23%
150
100 ......... _.._._—. -- —...........
50
0
<60k 60-99k 100k+
Household Income
Source: Community Attributes Inc., 2012.
Kent SboWare Center November 2012 Page 45
Economic Impacts
APPENDIX B. STAKEHOLDER INTERVIEWS
Over the summer of 2012 Community Attributes interviewed a total of eighteen
Kent based businesses. Community Attributes identified businesses believed to
be impacted or directly associated with ShoWare Center events. Questions
focused on overall impacts in addition to the following:
• Goods and services offered
• Dependence on ShoWare Center events
• Revenues and expenses
• Marketing efforts currently underway
• Needs from the City of Kent
Exhibit 58 provides a list of businesses interviewed along with their applicable
industry and location.
Exhibit 58. Businesses and Organizations Interviewed, City of Kent, 2012
Business Industry Location
1 Cave Man Kitchen Dine in and Take-Out 807 West Valley Highway
2 Red's Wine Bar Dining and Bar Kent Station
3 Ram Restaurant&Brewery Dining and Brewery Kent Station
4 Kent Bowl Entertainment 1234Central Avenue North
5 Kent Valley Ice Center Entertainment 6015South 240th
6 Thunderbirds Entertainment Kent Station
7 Holiday Inn Hotel(Thunderbird Sponsor) 22318 84th Avenue South
8 Valley Bank Kent Chamber&Downtown Bank 1244th Avenue South
9 Tarragon Property Management Kent Station Property Manager Kent Station
10 Kent Valley Motel Motel 743 Central Avenue North
11 World Wide Distributors Retail Distributor 8211 South 194th
12 Gleason&Co. Real Estate 317 W Meeker St
13 Cal's Classic American Restaurant Kent Station
14 El No que No Restaurant Historic Downtown
15 Airways Brewing Company Restaurant and Brewery South 196th Street
16 Smith Brother's Farms Official Milk Supplier(Thunderbird Sponsor) 2744168th Avenue South
17 Lincoln Moving&Storage Official Moving Company(Thunderbird Sponsor) 8420S.190th Street
18 Great American Casino Entertainment(Thunderbird Sponsor) 20500108th Ave.SE
Source: Community Attributes Inc., 2012.
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INTERVIEW RESPONSES
The following compilation of stakeholder feedback provides a detailed look at
interview responses. Responses have been categorized by themes and have been
edited for brevity and clarity. In order to provide context, certain responses
include the stakeholder's industry type in parentheses.
General Comments
Supportive, Positive Statements
In addition to quantitative impacts, stakeholders described qualitative impacts to
their businesses and the area. Stakeholders described impacts on jobs,increased
restaurant visits, community building and employee
Strongly Supportive
• Just the fact that hockey team is there is positive. We give away our tickets and the
employees use them. That is good for our business.
• It creates jobs, obviously. Not the highest paying jobs, but they're go od, regular income.
• I've seen people lined out the doors of restaurants.
• We love ShoWare Center.A huge positive impact.
• The graduation events were fun and very busy, especially if it was sunny. (Restaurant)
• Thunderbirdsgames are great family events and the people that attend are great people
to be in front of. The demographics of the events are good I'm not sure what the
revenue impacts have been on our business, but overall it has been a positive experience
for our business. (Sponsor)
• I feel that it has had agreat impact on Kent Station.
• More traffic downtown is always good for exposure. This means people seeing my signs
I have at my downtown Office. The more people the merrier. The foot and vehicle traffic
providesgood exposure. (Real Estate)
• Its definitely a positive overall. It's great to have a community connection. The
community connection with Sho Ware Center is a positive. (Entertainment)
Mixed Reaction
• ShoWare Center itself hasn't affected me personally, but it stands to reason that it
hasn't hurt our business.
• Right before an event we get busy and then business slows and becomes normal. We get
busy after events as well. Because of our location on the other side of Highway 167 we
are less affected by the arena.
• It's a good thing. Enough events do impact us (positively)making it a positive for our
business.
• I don't see any overall impact on our business. Most of our clients are regulars, no one
has ever told me there are coming orgoing to a show. (Entertainment)
• It's been positive and negative. It draws people from outside the area, or from the
surrounding neighborhoods. There is more traffic, more potential first time guests. It's
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bit or miss. Some crowds are more aboutgetting food and drink before, some aren't.
Families don't make a night of it like sports fans do. Sports fans (hockey and lingerie
football) are a better boon for us than families. (Restaurant)
• I would characterise it as favorable. It brings people into the area. It supports the local
population and I believe there's a trickle down affect,particularly from the
Thunderbirdsgames and their relationship with us. I believe more is always better.
There is trickle down from any event at ShoWare Center. No Change on event nights
in foot traffic or spending. (Entertainment)
Concerns and Negative Statements
Negative feedback was generally limited to parking and traffic. Several
stakeholders found parking during events to be impactful on their business. In
addition, traffic before and after events were also a concern. One stakeholder
stated that family events brought parking issues but little positive impacts to their
business. Another stakeholder mentioned way finding a visibility up as an issue.
• Ladies nights at ShoWare Center bring in a different type ofgroup, not always a
positive thing.
• The debt service on it is taking away about$3.5 million from the capital budget. A
levy and sales tax increase for roads and parks.
• The City promised police support for parking during events. There is police support on
James.
• 3,500 to 4,000 tickets sold is a tipping point. More than that creates parking impacts
and movie theatre suffers. Their customers turn back from parkers.
• East west traffic is a nightmare during events.
• Wlhy do they have to clock the left turn lane into the parking lot for events?
• Events destroy parking. Parking is a limited premium as is, and people attending
ShoWare Center come in for a beer or an appetiser and then they leave their car and
prevent other customers. If its Disney on ice, we don'tget the positive impact from
people coming out we justget the negative impact of parking. Family events have a
negative impact. Family events hurt our business.
• Graduations, having them one after another caused heavier traffic in the area. But this
didn't really impact us heavily. It was minimal.
• ShoWare Center definitely needs more parking
• It is not very visible, and kind of hard to find(way finding issues).
Restaurant and Entertainment Quantitative Impacts
Financial impacts to those businesses interviewed varied depending on their
location and type. Restaurants located nearby in Kent Station felt the greatest
impact, and restaurants located within Kent but farther from ShoWare Center
also experienced impacts. Non-restaurant businesses were less affected. For
example, one restaurant interviewed cited a 20% increase in foot traffic on
ShoWare Center event nights, while another cited an increase in spending of$14
per guest to $15.50 per guest.
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• Guest check average on a normal day is$14 perguest. On event days itgoes up to
$15.50.Any event at ShoWare Center affects us, unless it's a small event like
luncheon. On a Monday night,for example, we experienced a bump of$2,000 in
sales. On a Hockey night, it can be considerably more. An extra 200 people can bring
an extra$4,000 and$5,000. (Restaurant)
• Kent Station is doing fine. Restaurants did really well. The theatre has also done
well... The occupancy level never dipped below 93%. We're at 96% leased and 94%
open for business.
• The typical customer spends$35.00 per visit. This varies depending on what they
want. I estimate that there is a 20% increase, sometimes more or less depending on the
event. (Restaurant)
• On average it's probably$100. There is no change on nights of events on our business.
We don't have larger crowds or anything. This is due to the proximity of ShoWare
Center to our location. We are located on the other side of a hill from the arena.
(Entertainment)
• Depending on the size of the group and the time of day, our typical customer spends
$25430 per visit. Hockey and sports events draw more customers that spend less are
likely "bar-hopping"before the event. Concerts tend to bring in full dinners whether
its before or after the event. It depends on the event due to the fact that we're 21 and
over only. For concerts, it depends on the type of crowd it draws. Sports events bring
good crowds for us. Family events bring less foot traffic. (Restaurant)
— Earlier in the week (Mon, Tue, Wed)we are slower so the impact is greater when
there are events (events that draw crowds for us)
— On a Fridayl Saturday night(busy nights) we will see a 20% to 30%increase in
people
On Tuesdays and Wednesdays (slower nights) we will see up to a 50% increase in
people.
• Average guest check is about$16. On concerts and sports events we will see upwards
of 50 and 75% increase. (Restaurant)
Non Retail Business Impacts
Several non-retail businesses were interviewed. Impacts from these businesses
were less pronounced and did not include direct financial gains. Generally,
businesses of this type viewed ShoWare Center in a positive light. One
stakeholder described how the ShoWare Center drastically improved networking
opportunities for their business and how it directly impacted company.
• The impact has been that I have met people through it and it has directly impacted me
by providing opportunities for networking.
— Deals have resulted directly from ShoWare Center.
— Networking at ShoWare Center has been the most impactful to business.
• Land deal I'm working on next to ShoWare Center couldn't have been pulled off
without ShoWare Center Arena. It had a direct impact on the deal. The property,
which is under contract, is a stones throw from the arena. (Real Estate)
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• Our salesmen when they have appointments, usually with people in the South End, not
necessarily Seattle Clients, but Federal Way to Kenton clients, they will take the
tickets to an upcominggame to a customer. It helps them remember us and brings us
business. That has been an effective marketing tool. We try to give them to customers
we are wooing or as an appreciation. It's usually ouryounger clients. I think it is a
good chance that they haven't been to aSame before so this is agame chance to bring
them to Kent. People like going to the game. You watch up and coming stars. It
enhances salesman's chances to make good and meaningful contact with potential
customers. (Sponsor)
Hotel Impacts
Community Attributes interviewed two local hotels. Impacts from events were
noticeable at one of the hotels interviewed. Patron stays brought room nights,
but the most noticeable impacts cited were from visiting performers and hockey
teams that booked rooms during their stay.
• The impacts are positive. We get a good amount of business from ShoWare Center.
We get consistent business from ityear overyear. From September to May, when we're
slow, events hep us. Concerts have less of an impact because they draw more locally.
We get leisure people for concerts, etc... We get business people for business
events...and families for other types of events.
• Financial impacts vary greatly by season. Our average room rate for the year is,$90 to
$92 a room. Our typical stay on average is 2 nights. Hockey doesn't result in much of
a change in foot traffic. It's reallygoodyear overyear for us.
• The following surmises overall impacts in 2011.
— Toy Story cast.•238 room nights
— Toy Story production team: 149 room nights
Visiting hockey teams: 143 room nights
— Thunder Birds.242 room nights
— 2011 total.• 850 (including estimate on graduation and other ShoWare Center
attributedguests) out of a total of 30,685 room nights.
Tourism and Marketing
Questions regarding complimentary facilities and attraction located in near
ShoWare Center were asked. Kent Station and downtown were the most
commonly mentioned facilities. In addition, stakeholders were asked about
current marketing efforts and their effectiveness.
Complimentary Facilities and Attractions
• Most people want to park once and walk to where they're going to go. Downtown
Kent.
• Kent Station and the associated Sunday Farmer's Market,
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• Nothing on the same scale as ShoWare Center. The Courthouse draws lots of people,
who aren't necessarily in a spending mood. Its good professional business spending.
Some people are drawn to the downtown core.
• I guess I can't really think of Kent as a place to go for recreation or events. I don't see
anything to come to Kent for. It's like Auburn. Its got restaurants and a movie
theater, stuff everywhere has. I don't see anything else.
• Maybe the ice rink. Kent Station definitely attracts people.
• It seems to be doing a good job with Kent Station.
• Kent Station, meaningyou can go there before and after events. Downtown has that
opportunity but not as much as Kent Station. For example, I'm able to walk to games
from my downtown Kent office. Not much else besides this.
• Kent Station certainly, with its restaurants. Also us, with our mini golf, batting cages
and bar. There are plenty of hotels. Also Wild Waves, which really isn't that far
away.
• Last September I took my salesmen down to Kent Station as an appreciation event. I
do like that area down there. I see it becoming more relevant to me as my sales force
becomes larger, because we take our clients to eat in Kent Station. As Kent keeps
getting nicer, our employees and customers want to do things in Kent. Its nice. Our
ability to move in that area is improved the nicer it is and more reasons we have to go
there.
Marketing and Promotion of ShoWare Center and Kent
• I think they do a good job. We have a chamber and the Kent Downtown Partnership.
I think they do a good job. The Mayor does a good job as well.
• The City does a good job. The promotions at Kent Commons are good.
• The City has a done a good job. I can't think of anything more.
— There is the South Seattle Tourism Network
T.V. ads might be a good idea
— The ShoWare Center website and email blasts works well
— The addition of the new sign in front of ShoWlare Center was important and
he ps a lot. It lets people know what happening at the venue.
• To be blunt, we're not marketing it at all. Outside of the promoter, we're not getting it
out to the people
— There are a lot of people within 5 miles that haven't been there.
— Tourism can grow through an actual marketing program, that's where we are
right now.
There no good signage andyou won't see ShoWare Center ifyou aren't
looking for it.
— If we're evergoing to go the next level(City of Kent and ShoWare Center) we
actually have to promote it.
• I don't know if Kent is a destination. The downtown area is really nice. There are
businesses there that are useful to my business and I can bring clients there.
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• Trying to find a way to promote ShoWare Center and Downtown Kent is a top
priority. There is just a wonderful product and we just need to figure out how to
promote it.
• The City is doing a good job. Merchants need to get more involved(mentioned
downtownl Old Kent merchants). Educating towards this would help. It would hep
them learn how to attract more business down here. If there was more info in ShoWare
Center on what else is in Kent that would be great.
• Linking events such as the softball tournaments in town, and a concert at night would
make sense.
Event Mix
Stakeholders were asked to describe events that impacted them the most
(positively).
• Would like to see the Mist. We're busy for the Thunderbirds. Older concerts, we do
well, too. We were really busy for Perfect Circle. We are busier for oldergroups,
nostalgicgroups. Newergroups don't drive traffic here that much.
• Have more!
• The events that seem to attractgood crowds are the family events, Globetrotters,
Circus, Disney on Ice, NBC skating show televised nationally, Skate America coming
in October. That one in particular should bring in people overnight. 600 hotel rooms
for several nights in a row. Should have a little more impact.
• Male oriented events like wrestling, hockey and sporting events in general.
• Hockey games and concerts are a good thing and good events to have. I'd like to see
family friendly events and other kid type events, whatever those may be. (Sponsor)
• Business expos are good(mentioned several that have taken place in the lastyear or
two). They are good for-meeting and are also good for downtime in the summer when
the arena is not very buy. (Real Estate)
• Concerts are a big draw. Kent Station probably sees the biggest impact.
• Concerts are better. The clientele is associated with dining out and gaming more. Such
events complement dining andgaming well. (Entertainment)
• Definitely sporting events. (Restaurant)
• Sporting events have the mostpositive impact. (Restaurant)
• Thunderbirds games provide the most positive impact because of the hockey skating
nature ofgames. The Thunderbirds games encourage skating. Even a concert provides
exposure (for my business)for people from out of town. (Entertainment)
• Perfect facility for HS Grads in particular
• Impactful Events (Hotel)
— Disney on Ice, we got the entire cast and crew.
— Hockey is the most impactful.
— We get 90% of opposing teams to stay with us (estimated)
— Concerts and associated crews stay with us, such as the upcoming Ladies
Night Tour.
— Graduation events (second most impactful)
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The more important impact is the teams/crews staying with us than the people
staying in town to see the shows/events.
Use as a Business Facility or Tool
Stakeholders were asked about their use of ShoWare Center as a business venue
and tool. A range of responses were given with some stakeholder never using the
facility to others valuing the facility as a networking tool.
• No. I do most of my business in the north end.
• I didn't know thatyou could advertise in ShoWare Center.
• We have used it through our sponsorship, but have not hosted business functions there.
Our suite has been used for our sales team during Thunderbirds games. I heard it was
fun and they enjoyed it. (Sponsor)
• I don't see us using the ShoWare Center for these types of events. Ve have nothing
against the facility, I just don't see us using. (Sponsor)
• We are a Thunderbirds sponsor. Our sponsorship is a trade sponsorship. It is working
well and we are in our 2nd or 3rd year as a sponsor.
• Yes, I purchased a sweet in the past and have bought tickets for clients. I had 14
people in the suite. It was intimate and everyone could talk to one another. It was a
great way to interact. Since then,people that were in the suite have attended events
again, coming from outside Kent. (Real Estate)
• I will probably do it again more often in the future. It's agood way to network with
clients and potential clients. I did some advertising but I didn't get enough out of it.
(Real Estate)
• Yes we have used the facility for customer appreciation events. Over the last fewyears
we have had season tickets to the T-Birds and have taken clients to a suite. We have
also taken clients to some other events, such as concerts and circus events. Very
satisfied with the facility.(Entertainment)
• I've attended several events. My visits were more often for business functions such as
Chamber events. If we have events we use our own facility. (Restaurant)
• We did look at sponsoring the T-Birds but it was too costly for a small business. We
haven't looked at anything through ShoWlare Center(only looked at sponsoring the
Thunderbirds).
• Yes, we had an event there and it was satisfactory. (Restaurant)
• Through the Thunderbirds we hep them by supplying rental skates for season ticket
holders during the mid-winter season ticket holder's promotion. We've loaned skates
for several other events as well. It was very good. We do a little cross advertising with
ShoWare Center through the youth hockey association.
• (Holiday Inn)I've been for a trade shawl business expo. I've been to a couple of State
of the City speech's and networking events as well. We have meeting rooms at our
building. We've had booths at expos taking place at ShoWare Center, but that's it.
We don't have a need far such a large facility. Ve advertise on the Thunderbirds
website, in radio ads and in the game programs. We have no signage at the arena. All
Of our advertising is through the Thunderbirds. We'd like to discuss accommodations
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for performers and crew, as there is no formal relationship right now. There are things,
like this, that we can do to draw more people from ShoWare Center.
Improvements to Kent and ShoWare Center
A number of stakeholder mentioned ways to improve both Kent and ShoWare
Center. Comments ranged from better use of parking lots to timing of events.
• They could do a better job of using the parking lot for sales that we have not done.
There are many days where the arena is empty.
• Car dealers, RVs, boats, etc., could be something we could use more of.
• I'm an advocate for us to start to charge for parking.
• More activities going on at ShoWare Center. More positive advertising. The train goes
to Kent Station, but we need more frequent transit and light rail. We need easier
parking at Kent Station.
• Suites are expensive. Tickets for Mariners games suites are$90 but include food
credit. Cost of tickets and food/drink for suites at ShoWare Center events adds up.
Deals like this may hep fill suites at ShoWare Center.
• We need a higher quality food store, like a Metropolitan Market or a Whole Foods.
Maybe they say it can't he supported, but I think the Kent market is ready for this.
People have money and they want to spend it. The lack of alternatives drives people out
of their neighborhood and into Tukwila and South Center. I see what happens in other
places and we would draw lots of people if there was something like that here. The
movie theater is our biggest consistent draw. It pulls people in consistently, if the movie
theater went out of business I would fear for the entire station.
• Time of day, day of week is important to us. Having an event on a Friday night hurts
us and an event on a Tuesday night in February he ps us. We have looked at joint
partnership and it seemed really expensive to capture people who will already come here
(like the hockey folks) but I want to talk to the Disney people. I want to target my
advertising to those people. I think Kent Station shouldn't fight ShoWare Center over
the parking we should collaborate somehow,for example, with a shuttle. That would
alleviate the traffic problem.
• The Green River runs through the heart of Kent. Cities that have taken advantage of
natural features such as rivers and lakes have greatly benefited(e.g. San Antonio). A
shopping/commercial development along the river might be an enhancement to tourism.
Thunderbirds Interview
Community Attributes spoke with a representative of the Thunderbirds in order
to gain an understanding of their operations and impacts on Kent.
Team Impacts
• 30 people typically travel with visiting teams requiring 15 to 19 rooms
• We give them a list of hotel partners
• Thunderbirds generally live with Kent families. Some team members are still in high
school, some are done. They are integrated into the community.
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• Thunderbirds do school visits
• $130,000 in donations given back from Thunderbirds Foundation, mostly in Kent
Operations
• Training Camp which ends in August brings a lot of people to town. This includes
tryouts with 70 kids and their families staying in town for 3 to 7 days
• Grown attendance each year
• Season ticket holders are south centric but range from Olympia to Everett
• We sold a few new suites in the off season
• Advertising and sponsorship have grown each year
• Majority of original sponsors and advertisers have renewed
• Renewed 95% of season ticket holders from Key Arena
• 16 FTE, 20 part time on games nights
Being in Kent
• We're happy with Kent and the facility
• Tremendous atmosphere
• Generally, its been really good
• Not a single thing to change design wise
• Location has worked out really well.
• Next to Kent Station with restaurants is tremendous
• Easy access off of the freeway
• Great to have a community ice rink nearby
Design, Location and Operations
Good Location
The majority of stakeholders responded positively to the location of ShoWare
Center. Easy freeway access, proximity to downtown and proximity to transit
were commonly cited. The following is a sampling of stakeholder responses:
• The particular area that it is in is nice. Clients are taken there.
• It's an interesting location.
• It's a convenient location for transit with the train nearby.
• The location is fine for us. Its close to us which is nice.
• I'm very satisfied with the location and presence. It's only 3.5 miles away from our
location. The ease ofgetting in and out of the facility is great. Free parking is great.
• Has easy access.
• Location off of Highway 167 is good and provides easy access.
• It's excellent. Its 1.5 miles from the hotel. Parking is easy and close. Its located in the
right spot, in a commercial area near a freeway and Kent Station. We event shuttle
guests to and from ShoWare Center. (Hotel)
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ShoWare Center Facility and Design
Comments concerning the facility design and operations were positive.
Stakeholders found the facility clean,well planned and mentioned that the facility
serves as a symbol of what the Kent is trying to accomplish.
• It's fine, overall it's OK
• It's nice to have a local activitylgroup to sponsor.
• Overall, we're happy to have it in Kent.
• Its great and shows what we're trying to do. Starting to recognise it as a place to
(people in Kent and outside of Kent). It's slowly getting better recognition.
• They have a really good product. I've been to many different side events at ShoWare
Center and they do a good job with service and getting people involved.
• It's an awesome and great facility. I am a big advocate. It's nice to have a local facility
like this so we don't have logo to Tacoma or Seattle. Its clean and nice.
• I don't have any feelings towards it. It's perfectly fine. There are no downsides to it. I
like the facility. It has a good layout and is a nice enough design for a stadium. No
strong feeling one way or another.
• For the immediate person that lives here it is very convenient.
• I'm very pleased with facility. We're right down the street from it. The venue is great.
It has great site lines (for patrons inside). Thunderbirds provide great exposure to
skating. There isn't any better event for us.
• We get a lot of stays from opposing hockey teams. ShoWare Center has added to the
City and brought it up a level. Kent Station and ShoWare Center are the top things in
the area. Great, I haven't ever heard of any negatives about it. Good for hotels. It's
laid out well. Its setup is user friendly.
Customer Base
The customer base of businesses interviewed varied between business types.
Restaurants and entertainment businesses generally draw a more locally oriented
customer base. Several other businesses, though, mentioned drawing from a more
broad geography. This included non-retail businesses such as hotels and
entertainment facilities.
• Most customers are local and come through word of mouth. There are many from out of
town (some from far away). (Restaurant)
• Our customer base in general is the Puget Sound region. We sell as far east as
Marysville, as far south as Yelm, as far east as North Bend and as far west as
Silverdale. Our customers are mostly families with children. (Sponsor)
• 50% come from within 3 to 5 miles of downtown Kent. We also have many deals in
Bothell and Tacoma. (Real Estate)
• Most of our customers are local Kent residents and live within 5-10 miles of our
location. (Entertainment)
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• Our customers are from all over because of craft brewery. We're able draw tourists plus
Kent locals. It also depends on the time ofyear. In the summertime we draw more
tourists. (Restaurant)
• Most are Kent residents, league bowlers, 90% are regulars (Entertainment)
• Our customers are between 35 and 55, males and females. Lunch draws working
professionals and local businesses up and down the Highway 167 corridor. Dinnertime
is more family and people that live in and around Kent, Tukwila, and Auburn.
(Restaurant)
• We draw from the Kent area and from all over the region. We draw people from
Issaquah to the north, and Puyallup to the south and also people from Bremerton. The
hockey league draws teams from Tacoma, Lakewood and even north of Everett.
(Entertainment)
• It depends on the season. September through May, its mostly corporate clientele and
busier on weekdays. From June through August there is a mix of corporate and leisure
guests andl orgeneral travelers. This includes sports teams and families. Most
customers are from the U.S. with some from Canada. Some customers are
international and come from Japan and London,for example. (Hotel)
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