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REINVESTMENT IN SPORTS STUDY IN CURRENT FACILTIES 3.5.24Convention & Visitors Bureau Victus Advisors Existing Facility Reinvestment Summary Nancy Helman, Director, Convention and Visitors Bureau Brian Connolly, Founder & Managing Principal, Victus Advisors LLC March 5, 2024 SUMMARY PRESENTATION FOR CITY COUNCIL: EXISTING FACILITY REINVESTMENT STUDY FOR VIRGINIA BEACH SPORTS FACILITIES MARCH 5, 2024 STUDY OVERVIEW Victus Advisors was engaged by the City of Virginia Beach in December 2023 •Analysis of potential capital reinvestment of $18.5 million in available Sports Tourism CIP funds in existing local Virginia Beach sports facilities. •Four (4) local facilities requested Sports Tourism CIP funding totaling $34.3 million: 3 TOTAL REQUESTED Facility CIP FUNDS Hampton Roads Soccer Complex $15,000,000 Virginia Beach Sportsplex & Field Hockey Training Center $9,390,000 Princess Anne Athletic Complex $7,800,000 Pickleball Virginia Beach $2,100,000 TOTAL $34,290,000 STUDY OVERVIEW (CONT.) Victus had two (2) primary project goals for this study: 1)Evaluate local sports facilities for re-investment consideration, and assess which facility re-investments could yield the highest ROI for the City. 2)Make recommendations regarding contract/ordinance standards and approaches for operations of sports facilities on City-owned property. 4 5 STUDY OVERVIEW (CONT.) Victus interviewed current/projected users of the 4 facilities. Interview goal was to identify incremental sports tourism impacts that could be generated by: a)Facility improvement funds requested by the Operator, versus… b)Any other improvements that might be preferred by the Sports User Groups •Beach FC •Championship 7v7 Football •Clubwaka •Coastal Crush Lacrosse •Cross Country Advocate •Friday Night Lights Youth Flag Football •J&A Racing •Liga Internacional de Futbol •National Flag Football League •OTSL •Professional Pickleball Association (PPA) •Southeastern Virginia Women's Soccer Association •Special Olympics of Virginia •Tidewater Soccer Referee Association •US Lacrosse •USA Field Hockey •USA Lacrosse •USA Pickleball •USA Softball of Virginia •USSSA Adult Softball •USSSA Baseball •USSSA Virginia Beach Baseball •Virginia Beach Mustangs •Virginia Rush •Virginia Wesleyan University Cross Country 25 COMPLETED INTERVIEWS FACILITY IMPROVEMENT ANALYSIS 6 Organization Expansion of Existing Events New Events Beach FC -1 Clubwaka -1 Liga Internacional de Futbol -1 National Flag Football League 1 - OTSL 1 - SEVWSA 1 2 SOVA -1 VA Rush 1 1 TOTAL 4 7 Potential Economic Impact IMPROVEMENTS BY OPERATOR BY SPORTS USER GROUPS General Aesthetic upgrades (shade structures, bathrooms, etc.)Bathroom updates, more bleachers, meeting space, etc. Lights Add lights to existing and new fields Lights on every field More Fields 6 artificial turf fields 6-10 artificial turf fields Parking Resurface and add lights to existing parking, develop walkway from amphitheater for more parking More lighted parking spots and closer to the complex Artificial Turf Fields Resurface existing artificial turf fields More artificial turf fields REQUESTED FACILITY UPGRADES HAMPTON ROADS SOCCER COMPLEX: OPERATOR REQUESTS VS. USER REQUESTS 7*Note: Incremental event estimate is based solely on the sports user group improvement requests HRSC operator requests closely align with the requests of the sports event organizers. PICKLEBALL VIRGINIA BEACH: OPERATOR REQUESTS VS. USER REQUESTS 8 Potential Economic Impact IMPROVEMENTS BY OPERATOR BY SPORTS USER GROUPS Court Surface Resurface and repaint courts Resurface and repaint courts Covered Courts Cover eight pickleball courts for "Championship Court"Cover at least one court for "Championship Court" Lights New lights throughout the complex REQUESTED FACILITY UPGRADES Organization Expansion of Existing Events New Events PPA Tour -1 USAPA -2 Other Pickleball Groups -2 TOTAL 0 5 *Note: Incremental event estimate is based solely on the sports user group improvement requests Pickleball operator requests closely align with the requests of the sports event organizers. Organization Expansion of Existing Events New Events US Lacrosse 1 2 USA Softball -2 USSSA Baseball 5 5 Other Endurance Groups -3 Virginia Wesleyan Cross Country -2 TOTAL 6 14 Potential Economic Impact IMPROVEMENTS BY OPERATOR BY SPORTS USER GROUPS General Bathroom updates, roadway and asphalt trail repairs and repaving, meeting space for officials, etc. Storage and office space, pavilions and shaded structures, better concessions, Wi-Fi capabilities, more seats Cross Country Develop a cross country course Lights Add lights to existing and new fields Ball Fields Make fields adjustable for various age groups More Fields 6 new artificial turf fields Parking Resurface parking lot Artificial Turf Fields Resurface existing artificial turf fields and convert two (2) rectangular grass fields to artificial turf, fencing around artificial turf fields Convert all rectangular grass and ball fields to artificial turf REQUESTED FACILITY UPGRADES PRINCESS ANNE ATHLETIC COMPLEX: OPERATOR REQUESTS VS. USER REQUESTS 9 PAAC operator requests do not closely align with the requests of the sports event organizers. Sports groups would prefer: a) all grass fields converted to artificial turf, b) addition of six (6) new artificial turf rectangular fields, and c) running trails/cross country course. *Note: Incremental event estimate is based solely on the sports user group improvement requests *Note: There would also be transfer of existing running/walking events from the Virginia Beach Oceanfront >>> Potential Economic Impact 10 VB SPORTSPLEX & FIELD HOCKEY TRAINING CENTER: OPERATOR REQUESTS VS. USER REQUESTS *Note: Incremental event estimate is based solely on the sports user group improvement requests Organization Expansion of Existing Events New Events Championship 7v7 Football 1 2 HRAYFL 1 2 USA Field Hockey 3 3 UYFL VB Mustangs 1 3 TOTAL 6 10 IMPROVEMENTS BY OPERATOR BY SPORTS USER GROUPS New Field Hockey Stadium Install stadium seating, press box, concessions, merchandise and locker rooms at the Field Hockey Training Center Upgraded bathrooms and new concessions stand at Field Hockey Training Center, Wi-Fi capabilities throughout Lights on Existing Field Hockey Fields Lights for Field 2 Lights for Field 2 More Artificial Turf Fields with Lights Two new artificial turf fields with lights, more grass training fields Convert grass fields to artificial turf fields with lights REQUESTED FACILITY UPGRADES Sportsplex operator requests closely align with the requests of the sports event organizers. ESTIMATED ECONOMIC IMPACT SUMMARY BASED UPON SPORTS USER GROUP REQUESTS 11 If all of the sports user groups’ requested improvements were made at each facility, Victus Advisors estimates demand for: •Up to 36 new & 16 expanded sports events •Up to 49,000 more contracted room nights could be generated from these 52 events Note: Incremental economic impact estimates are based solely on the sports user group improvement requests Notes: Sorted by Contracted Rooms in descending order. Incremental economic impact estimates shown above are based solely on the sports user group improvement requests. Annual Expanded/New Total Contracted % of Facility Sports Events Attendees Rooms Total Princess Anne Athletic Complex 20 28,125 20,000 41% VA Beach Sportsplex/Field Hockey Training Center 16 24,301 14,000 29% Hampton Roads Soccer Complex 11 58,300 9,000 18% Pickleball Virginia Beach 5 10,000 6,000 12% TOTAL - ALL SPORTS EVENTS 52 120,726 49,000 100% PROJECTED INCREMENTAL IMPACTS 12 Victus has identified two (2) potential options for City Council to consider regarding how to invest Sports Tourism CIP funds in local sports facilities: •Distribution based solely on projected economic impact of each venue’s requested improvements •Distribution to all facilities who submitted funding requests RECOMMENDED OPTIONS FOR LOCAL SPORTS FACILITY REINVESTMENT 13 * Refers to projected economic impact of the funding requests submitted by each venue operator (not the feedback from sports user groups). ** It should be noted that the recommended investment allocation in this economic impact-only model does not include any contributions to the PAAC, because the PAAC's requests do not align with those of the sports event organizers and thus are not likely to generate material incremental economic impacts. RECOMMENDED OPTIONS FOR LOCAL SPORTS FACILITY REINVESTMENT – ECONOMIC IMPACT CRITERIA ONLY Recommended Sports Tourism CIP Fund Distribution Based Solely on Projected Economic Impact* NOTES Pickleball Virginia Beach: Immediate & Short-Term Court/Venue Needs $402,000 Championship Court Improvements $1,700,000 11%Pickleball - Total:$2,102,000 VB Sportsplex & Field Hockey Training Center: Replace Grass with 2 Artificial/Lighted Fields $2,311,000 Flatten Berm & Create Grass Training Area $102,500 Install New Lights on Field 2 $725,000 17%Sportsplex - Total:$3,138,500 Hampton Roads Soccer Complex: Resurface Existing Artificial Turf (2)$1,000,000 Six (6) New Artificial Turf Fields with Lights $9,000,000 Parking Improvements & Storm Water Contingencies $2,100,000 Other (Accessibility, Aesthetics, etc.)$1,159,500 72%Soccer - Total:$13,259,500 TOTAL INVESTMENT AMOUNT:$18,500,000 ** 100% Improvements would directly benefit USAPA & PPA events. User groups indicated that the improvements shown at left would be enough to increase/expand their event activity, whereas a new field hockey building was viewed as a "nice to have". The improvements shown at left prioritize renovation and addition of lighted artificial turf fields, which are the most important factor to tournament organizers, as well as the parking improvements necessary for tournaments. The remaining investment budget is allocated to other accessibility and aesthetic improvements, although not as much as HRSC requested. 14 RECOMMENDED OPTIONS FOR LOCAL SPORTS FACILITY REINVESTMENT – DISTRIBUTIONS TO ALL VENUES Recommended Sports Tourism CIP Fund Distribution if City Prefers to Contribute to All Four Venues NOTES Pickleball Virginia Beach: Immediate & Short-Term Court/Venue Needs $402,000 Championship Court Improvements $1,700,000 11%Pickleball - Total:$2,102,000 VB Sportsplex & Field Hockey Training Center: Replace Grass with 2 Artificial/Lighted Fields $2,311,000 Flatten Berm & Create Grass Training Area $102,500 Install New Lights on Field 2 $725,000 17%Sportsplex - Total:$3,138,500 Princess Anne Athletic Complex: Convert 2 Multi-Use Grass Fields to Artificial/Lights $3,259,500 18%PAAC - Total:$3,259,500 Hampton Roads Soccer Complex: Resurface Existing Artificial Turf (2)$1,000,000 Six (6) New Artificial Turf Fields with Lights $9,000,000 54%Soccer - Total:$10,000,000 TOTAL INVESTMENT AMOUNT:$18,500,000 100% Improvements would directly benefit USAPA & PPA events. User groups indicated that the improvements shown at left would be enough to increase/expand their event activity, whereas a new field hockey building was viewed as a "nice to have". The improvements shown at left prioritize renovation and addition of lighted artificial turf fields, which are the most important factor to tournament organizers. This would not provide parking improvements, so alternative parking options in the area may need to be considered for large events. Converting two of the existing rectangular grass fields to artificial turf with lights would help better meet local usage demand for multi-use fields. LOCAL OPERATING AGREEMENT ANALYSIS & RECOMMENDATIONS 15 16 KEY FINDINGS REGARDING LOCAL OPERATING AGREEMENTS 1)INCONSISTENCY ACROSS MANAGEMENT AGREEMENTS CREATES CONFUSION 2)SPORTS TOURISM GOALS FOR OPERATING PARTNERS ARE UNCLEAR 3)ANNUAL REPORTING REQUIREMENTS ARE LACKING FOR PRIVATE OPERATORS OF CITY-OWNED SITES/FACILITIES KEY VIRGINIA BEACH SPORTS FACILITY OPERATIONS FINDINGS 17 VICTUS RECOMMENDATIONS REGARDING OPERATING CONTRACT STANDARDS 1)IMPLEMENT UNIVERSAL MAINTENANCE & CAPITAL IMPROVEMENT FUNDING POLICIES 2)IMPLEMENT UNIVERSAL FINANCIAL REPORTING & OPERATIONAL TRANSPARENCY POLICIES 3)ENSURE CITY FUNDS CONTRIBUTED FOR CAPITAL REINVESTMENT ARE SPENT PROPERLY 4)ESTABLISH SPORTS TOURISM GOALS FOR VENUES RECEIVING SPORTS TOURISM CIP FUNDS 5)IMPLEMENT SPORTS TOURISM TRACKING & REPORTING POLICIES RECOMMENDATIONS FOR VIRGINIA BEACH SPORTS FACILITY OPERATIONS CONTACT INFORMATION 18 VICTUS ADVISORS LLC 2720 Homestead Road, Suite 130 Park City, Utah 84098 (435) 776-5728 www.victusadvisors.com THINK ARCHITECTURE 7297 High Point Pkwy, Suite 300 Sandy, Utah 84094 (801) 269-0055 www.thinkaec.com