Colorado Springs RTA Summary

ECONOMIC DEVELOPMENT COMMISSION (Commission) PROJECT SUMMARY REGIONAL TOURISM ACT (RTA) December 16, 2013 APPLICANT: City
of Colorado Springs (Colorado Springs). PROJECT NAME: City for Champions Project (Project). PROJECT DESCRIPTION: The City for Champions Project has four distinct not-for-profit elements intended to leverage existing assets in Colorado Springs, particularly ties to the U.S. Olympic movement as summarized in the table below. Element Name The United States Olympic Museum and Hall of Fame Colorado Sports & Event Center Description Size 60,000 SF Cost $59.4M Projected Opening June 2016
Iconic complex in downtown Colorado Springs with state of the art interactive exhibits, Hall of Fame, memorabilia, theater, retail, restaurant, broadcast studio. Complex will include Winter and Summer Olympic and Para-Olympic Games. 10,000 seat outdoor and 3,000 seat indoor multi-use stadium and event center targeting Olympic-style sports (potential for minor league professional soccer) and other events located near Olympic Museum in southwest downtown Colorado Springs. Sports UCCS facility which is part of Health and Wellness Medicine & Village designed to attract medical and athletic Performance training tourism including wounded warriors to Center Colorado with a concentration of sports medicine and wellness clinics and research on injury recovery. Air Force Located near Falcon Stadium outside the security Academy perimeter and visible from I-25. Will include: Visitors museum, Pikes Peak welcome center, grand atrium, Center retail gift store and food service. Infrastructure Southwest downtown improvements: 500 foot iconic pedestrian bridge, Wall of Fame in America the Beautiful Park, structured parking, streetscape improvements, utility upgrades. TOTAL PROJECT COSTS ACROSS ALL ELEMENTS
340,000 SF $92.7M
2017
77,000 SF
$27M
June 2016
30,000 SF
$20.5M
2017
N/A
$51M
2016-17
$250, 603,650
ECONOMIC IMPACTS: The States Third Party Analyst (TPA) estimates that the Project could create 3,114 temporary construction related jobs and 867 ongoing operations jobs
including direct, indirect and induced jobs (see Appendix I for details). TPA predicts that an adequate labor supply exists within the Colorado Springs metro area to fill the jobs created by the project. The Project is therefore not expected to result in any significant new permanent employment migration to the area which would generate new school enrollment.
ANALYSIS OF PROJECT VERSUS APPROVAL CRITERIA: For the reasons stated below, we believe the Project meets the statutory requirements for RTA support including the elements* listed below: U.S. Olympic Museum and Hall of Fame Colorado Sports and Event Center (Outdoor Stadium and Indoor Arena) UCCS Sports Medicine & Performance Center U.S. Air Force Academy Visitors Center *Includes southwest downtown enabling infrastructure This Project is unique and extraordinary (in varying degrees) and is likely to draw net new tourism to the State of Colorado. The existing U.S. Olympic Movement is one of Colorados under-leveraged crown jewels and the State has a strategic interest in strengthening this asset in Colorado Springs. The Office of Economic Development and International Trade (OEDIT) and Economic Development Commission (Commission), received many letters and emails about this Project, and OEDIT held a public hearing which provided a forum for the Commission members to hear support and concerns from the public. Those concerns included criticism of the process for local public input regarding this Project in Colorado Springs. We acknowledge valid concerns regarding this Project; however our recommendation for approval is based solely on the statutory requirements in C.R.S. 24-46-304(3). Rationale For Approval of the Project: 1. These elements are of an extraordinary and unique nature and are reasonably anticipated to contribute to economic development and tourism in the state. See C.R.S. 24-46-304(3)(a). The synergy between the elements of the Project with the existing Olympic assets in Colorado Springs - U.S. Olympic Committee Headquarters (USOC) and Colorado Springs Olympic Training Center (CSOTC) and 19 National Governing Bodies (NGBs) have the potential to leverage the Olympic brand and enhance a constellation of Olympic-themed destinations in Colorado Springs that would be difficult to replicate elsewhere. Although arguably not unique and extraordinary by itself, the UCCS Sports Medicine and Performance Center, if effectively tied to USOC, CSOTC and NGB activities, can contribute to the unique nature of the entire Project. The Air Force Academy and its campus, architecture, personnel and mission are unique and extraordinary across Colorado and the U.S. The proposed visitors center could attract additional visitors through the potentially larger, better designed, and more accessible facility.
All elements are projected by the Applicant to be completed by 2017, meeting the statutes goal of economic development in the foreseeable future. Projected creation of more than 3,000 construction jobs and almost 900 ongoing operations jobs represents a notable economic gain.
2. The Project will lead to a substantial increase in out of state tourism. See C.R.S. 24-46304(3)(b). Based on the work of the TPA, the Project is estimated to draw more than nine million net new visitors into Colorado over a thirty year period which represents a substantial increase in out of state tourism. Based on the work of the TPA, a new visitor center at the Air Force Academy, (the element with the smallest net new draw of the various Project elements) can bring 20,000 new visitors into Colorado each year of stabilized operations. 3. A significant portion of the sales tax generated within the zone can be attributed to nonresidents of the zone. See C.R.S. 24-46-304(3)(c). The Olympic brand has a national and global appeal and should attract visitors from outside the zone. The Colorado Sports and Entertainment Complex plans to target and host events that do not currently take place in Colorado because they lack an appropriate venue. This new sports complex should attract participants, fans, officials and families from outside Colorado Springs into the zone. The nine million new out of state visitors will contribute a significant portion of sales tax revenue from non-residents of the zone. 4. Absent RTA funds the Project is not likely to be completed within the foreseeable future. See C.R.S. 24-46-304(3)(d). The State RTA support will accelerate and improve the chances of the Project moving forward in the foreseeable future. All four Project elements have identified some potential specific public, private and philanthropic sources of funds.
Concerns/Weaknesses: 1. None of the Project elements have a detailed funding plan, committed capital structure, or development pro-forma which demonstrates their viability with RTA funding and their lack of viability without funding. 2. The lack of contractual commitments between the three Olympic-related Project elements and the USOC, CSOTC and the NGBs. 3. Large differentials in the estimated amount of new visitors and the size of the net new state sales tax increment available for the Project between Colorado Springs application and TPA. 4. The Air Force Academy Visitor Center as a stand-alone project may not satisfy the substantial increase in out-of-State tourism criteria. Many visitors come to the academy for its athletic, academic or specialized events. Visitors also come for sightseeing at the Cadet Chapel, Terrazzo, and other elements of the working campus including the cadets themselves. A new visitors center adjacent to Falcon Stadium may not by itself draw new visitors to Colorado. 5. The UCCS Sports Medicine and Performance Center has a substantial possibility of being built in the foreseeable future without RTA funds particularly given the comments in the
November 8, 2013 letter from Brian D. Burnett, Senior Executive Vice chancellor for Administration and Finance. Our recommendation is tightly bound to ensuring that the percent of incremental state sales tax revenue to be dedicated to the Project follows the RTA statute and avoids overestimating the net new revenue generated by the Project. This includes guard rails as described below to ensure that the states fiscal position is protected. TAX INCREMENT: Below is a summary of Applicant and TPA analysis and recommended tax increment financing calculations assuming all four Project elements are built. TPAs methodology for the estimates of new out-of-state visitation and net new sales tax revenue are included as Appendix 2. Tax Increment Assuming All Four Elements Approved & Built (rounded to nearest $M) State Sales Tax Increment Category of State Sales Tax Incremental Revenue Applicant Third Party Analyst $921M $867M Total Increment $755M $755M Natural Growth $46M $59M Cannibalization Total Net New $121M $53M $68M $28M The United States Olympic Museum $26M $15M Colorado Sports & Event Center $14M $9M UCCS Sports Medicine & Performance Center $13M $0M Air Force Academy Visitors Center NET NEW AS % of TOTAL INCREMENT 13.08% 6.14% CANNIBALIZATION AS % OF TOTAL INCREMENT 4.93% 6.8%
Dollars are nominal or inflated. Applicant from Table 5-4 November 25 Summary. EPS from EPS Final Report Table 3.
NET NEW
NOT NEW
OEDIT strongly recommends using the more conservative but analytically justifiable TPA tax increment percent of 6.14 for the following reasons: 1) Adoption of the TPA recommended tax increment percent is more protective of the States interest and consistent with prior Commission action. 2) The RTA statue only authorizes net new revenue likely created by the project and related development being dedicated to the Financing Entity and shall exclude any sales tax revenue the state would likely have received without the project and development to protect the fiscal position of the State. 3) Because of the tax increment mechanism in the RTA statute, the Financing Entity has the potential to receive unjustified windfall gains from un-related third party developments which increase the sales tax increment growth that occurs in the regional tourism zone over the 30 year duration of financing term (at a rate beyond the 1.5% growth estimates used by the TPA and Applicant models). This Project in particular has a very large regional tourism zone which has substantial potential for unforeseeable third party development.
4) When the Commission sets a state sales tax increment percent, the Financing Entity will receive that percent for at least five years and potentially longer, even if the Applicant does not build any Project elements or create any new revenue. 5) If the Commission approves a percent of state sales tax incremental revenue that leads to a dedication of funds to the Project that exceeds the net new tax revenue created by the Project, it will be reducing the states tax receipts and harming its fiscal position.
RECOMMENDATION: We recommend that you approve the City of Colorado Springs application in support of the City for Champions Project for the following four elements proposed: U.S. Olympic Museum and Hall of Fame, Colorado Sports and Event Center, the UCCS Sports Medicine & Performance Center and the U.S. Air Force Academy Visitor Center (also including the southwest downtown infrastructure improvements) subject to compliance with all requirements in 24-46-301 through 24-46-310, C.R.S., and consideration of the following terms and conditions. The final resolution is contingent upon finalizing all terms and conditions including those listed below and upon approval by the Commission within 120 days unless expressly extended by the Commission: I. Initial Terms and Conditions A. Approved Local Government - Pursuant to C.R.S. 24-46-305(3)(a), the City of Colorado Springs is the local government approved to undertake the Regional Tourism Project. B. Regional Tourism Project - Pursuant to C.R.S. 24-46-304(3), the Regional Tourism Project is defined as follows: The City of Colorado Springs via the Colorado Springs Urban Renewal Authority shall partner with a non-profit corporation to build and run the U.S. Olympic Museum and Hall of Fame, a Colorado Springs Stadium Authority to build and operate the Colorado Sports and Event Center, the University of Colorado at Colorado Springs or affiliated non-profit entity to build and operate the Sports Performance and Training Center and the U.S. Air Force Academy to build and operate the visitors center. Each element of the Project must be of the approximate cost and size described in the first table of this recommendation and with the conditions and eligible improvements described in this recommendation. C. Percentage of State Sales Tax Increment Revenue Dedicated - Pursuant to C.R.S. 24-46-305(3)(d), the percentage of the state sales tax increment revenue that will be dedicated to the City of Colorado Spring for the Project shall be 6.14%. D. Regional Tourism Authority - Pursuant to C.R.S. 24-46-305(3)(c), the creation of a Regional Tourism Authority has not been requested or authorized. E. Regional Tourism Advisory Board. The City of Colorado Springs indicated in its application that it will create a Regional Tourism Advisory Board which will make
funding allocation decisions between approved RTA Project elements. This Board should be created and will operate subject to the conditions recommended below. F. Stadium Authority The City of Colorado Springs indicated in its RTA application that it will create a Stadium Authority to oversee the construction and operation of the Colorado Sports and Event Center. Such a body shall be created by the city. G. Financing Entity Designation - Pursuant to C.R.S. 24-46-303(6), the Colorado Springs Urban Renewal Authority (CSURA) is designated to be the Financing Entity. H. Financing Term - Pursuant to C.R.S. 24-46-303(7), the Financing Term is authorized for 30 years from the effective date of the Commission award. The financing period may be extended at the sole discretion of and with the express permission of the Commission but only for such period as the Commission finds necessary to avert or resolve a default on outstanding bonds. I. Regional Tourism Zone Area - Pursuant to C.R.S. 24-46-305(3)(b), the Regional Tourism Zone Area shall be the Applicants proposed zone shown in Appendix 3 and taken from of the original application submission. J. Eligible Costs - Pursuant to C.R.S. 24-46-303(4), Eligible Costs are described in the statute. K. Before any use of RTA funds can begin on the Olympic Museum and Hall of Fame, the non-profit entity that will operate the Olympic Museum and Hall of Fame must obtain a long-term (period to the satisfaction of the Commission) license or other agreement from the USOC for the use of the Olympic name, trademarks, symbols and logos and the exclusive right to operate the Official U.S. Olympic Museum and Hall of Fame within the United States. Additionally the non-profit entity that will operate the Olympic Museum and Hall of fame must sign an agreement with the USOC and USOTC for coordinating exhibits, events between the facilities, sharing memorabilia and operating a shuttle service between the facilities for visitors. These agreements must be provided to OEDIT for Commission approval. L. The Olympic Museum complex must contain the Olympic Hall of Fame and include the Summer and Winter Olympics and Para-Olympics within its exhibits and the Hall. M. Per the statements in the City for Champions application, the Olympic Museum Complex must have an iconic design and architecture, with a World Class Facility with State of the Art technology. N. Before any use of RTA funds can be spent on the Colorado Sports and Event Center, the facility must sign and provide to OEDIT, letters of intent, memorandums of understanding, contractual agreements or other similar documents to host at least 20 Pre-Olympic and amateur sporting events such as Olympic Time Trials, Qualifiers, Playoffs and World Championship events that will draw participants from outside
Colorado or other events and meetings associated with the Olympic Sports National Governing Bodies for each of the first two years of Project operations. At least 10 of these events each year must be new to the State of Colorado meaning that they have not been previously hosted in Colorado within 5 years prior to the opening of the CSEC. O. Before any RTA funds can be spent on the UCCS Sports Medicine and Performance Center, per information provided by the Applicant, its component clinics, institutes, and/or faculty members must sign letters of intent, memorandums of understanding, terms of service agreements or other similar documents with the CSOTC, USOC and at least 10 U.S. Olympic Sport National Governing Bodies to provide some combination of specialized training, research, rehabilitation or related services to Olympic sports athletes and provide these documents to OEDIT for review and approval. P. Per information provided by the Applicant, the UCCS Sports Medicine and Performance Center must be designed with clinical and other space to perform the following services: Human Performance testing, Biomechanics, Medically-based fitness, PT, ATC, Prosthetic development and integration, Orthopedics, Cardiology, Sports Psychology, Continuing Education, Research and Educational Offerings. The Project architect and an executive official at UCCS must certify in writing to OEDIT that these elements have all been included in the facility design before construction using RTA funds can begin.
II. Additional Financial and Tax Terms and Conditions A. Colorado Springs shall submit a list of businesses in the Regional Tourism Zone to the Department of Revenue (DOR) on or before the date this award becomes effective, and subsequently every month beginning with, and through, the term of the Commission Resolution, including but not limited to: (1) The Colorado Business Account Number and site number; (2) company name; (3) trade name or d/b/a; (4) location address; (5) start date; (6) description of whether existing, new, or closed account; (7) description of whether new location in the zone or moved out of the zone. (8) Other information required by DOR B. Before any RTA funds can be used on any Project element or infrastructure, , per the governance structure discussed in the City for Champions Application, the City of Colorado Springs must create a Regional Tourism Advisory Board or Commission that includes representatives from the City, Community Members and Members from each of the approved partner Project elements. The Regional Tourism Advisory
Board must sign intergovernmental or inter-organizational agreements delineating the relationships and decision-making authority between: Colorado Springs Urban Renewal Authority and the partner entities for each of the Project elements: U.S. Olympic Museum and Hall of Fame Non Profit Corporation, Stadium Authority and UCCS or affiliated Non-Profit entity building and operating the Sports Medicine and Performance Center and the U.S. Air Force Academy. C. The State of Colorado accepts the Applicants contention that the three Olympic-rated Projects (Olympic Museum and Hall of Fame, Colorado Sports and Event Center and UCCS Sports Medicine and Performance Center) have synergies with each other and that the state has a strong interest in incentivizing the completion of all three Projects to maximize the overall beneficial economic impact of the City for Champions program in Colorado. As such, the Regional Tourism Advisory Board must allocate minimum proportions of the RTA funds to these Project elements (Minimum Element Allocation Percents or MEAPs) in approximate proportion to 80% of the TPA analysts forecasted net new incremental revenue by Project element (allocations rounded for simplicity the below adds up to 79%). The MEAPs shall be: o U.S. Olympic Museum and Hall of Fame: 42% o Colorado Sports & Event Complex: 23% o UCCS Sports Performance and Medicine Center: 14% o The remaining 21% can be allocated by the Regional Tourism Advisory Board among all the elements including needed infrastructure improvements defined in this order as eligible improvements. These percentages may be modified by and at the sole discretion of the Commission. D. As a condition precedent to paying or reimbursing any entity for any Eligible Costs, the Financing Entity shall obtain a certification from an independent engineer engaged by the Financing Entity for construction-related costs stating that such construction-related costs are reasonable and comparable to similar projects and based on competitive market pricing. The financing entity shall retain an independent CPA to certify that the soft costs of the Project including financing, consulting, legal and professional services including for the Project application preparation are reasonable and comparable to similar projects and based on competitive market pricing. Such CPA must certify that all costs are Eligible Costs ("Certified Costs") based on copies of the invoices, bills, and requests for payment provided to the Financing Entity and in accordance with this Resolution and the Act. E. Eligible Improvements Description - Pursuant to C.R.S. 24-46-303(5), the specific authorized eligible improvements are: All the following facilities except for the southwest downtown improvements must be included as part of the finished Project.
1) OLYMPIC MUSEUM AND HALL OF FAME Required Components: Attraction Exhibit: Retail: 20,000 gross square feet* 5,000 gross square feet*
4,000 gross square feet* Restaurant: Grand Lobby/Special Event Space: 8,000 gross square feet* Broadcast Studio: 1,000 gross square feet* Special Event/Flex Space: 8,000 gross square feet* Administrative: 6,000 gross square feet* Back of the House: 8,000 gross square feet* TOTAL: Minimum 60,000 gross square feet Required Components: Olympic Hall of Fame Theater Exhibition Hall Interactive Exhibits Champions Plaza: outdoor gathering place and amphitheater Retail space together with a caf Broadcast studio Event Space for travelling exhibits and programs 2) COLORADO SPORTS & EVENT CENTER Required Components: Outdoor Stadium (Minimum 10,000 seats) Spectator Facilities: 134,000 gross square feet* Team Facilities: 21,200 gross square feet* Media Facilities: 2,200 gross square feet* Operations and concessions: 22,100 gross square feet* Administrative: 1,300 gross square feet* TOTAL: Minimum 180,800 gross square feet Per the application, the Outdoor Stadium must be a multi-use facility accommodating Olympic sports and outdoor sports such as soccer, baseball, rugby, lacrosse and others. Indoor Venue (Minimum 3,000 seats) Flexible Court arrangements: 60,000 gross square feet* Seating: 21,000 gross square feet* Concessions: 5,000 gross square feet* Locker Rooms: 6,400 gross square feet* Administration: 2,500 gross square feet* Restrooms: 6,000 gross square feet* Training: 10,000 gross square feet* Storage: 15,000 gross square feet* Entry: 2,000 gross square feet* SUB Total Minimum 127,900 gross square feet Building Circulation Approximately 12,790 gross square feet TOTAL Minimum 140,690 gross square feet Per the application, the Indoor Venue must be a multi-use facility with flexible configuration hard courts accommodating regional and national events from National Governing Bodies (47 Olympic sports, 23 based in Colorado Springs) such as USA Wrestling, USA Cycling, USA Triathlon, USA Boxing, USA Volleyball and others. 3) UCCS SPORTS MEDICINE & PERFORMANCE CENTER 72 to 77,000 gross square foot facility (Minimum 72,000 gross square feet)
Required Components: State-of-the-art recovery based rehabilitation clinics Orthopedic group anchor Flexible research space Faculty, Laboratory and Teaching facilities Parking Lot 4) U.S. AIR FORCE ACADEMY VISITORS CENTER Required Components: Museum / Welcome center 7,800 gross square feet* Entry Atrium 7,000 gross square feet* Retail / Restaurant 9,400 gross square feet* Museum Storage / Back of House 7,800 gross square feet* SUB Total Minimum 32,000 gross square feet Polaris Plaza 15,000 gross square feet* TOTAL Minimum 47,000 gross square feet Plus a parking lot not included in the gross square feet above. 5) SW DOWNTOWN IMPROVEMENTS Approved but Not Required Components: Iconic 500-foot clear-span pedestrian bridge 1,500 vehicle parking structure Traffic signals Streetscape improvements Utility upgrades Olympic Wall of Fame in America the Beautiful Park A portion of Sierra Madre Street, Vermijo Ave. and associated right of way will be vacated. Waterway improvements * Since detailed architectural plans have not yet been finalized, a precise square foot calculation for each Element and Component of the Project and the Eligible Improvements within the Project is not available as of this writing. Further investigation of site issues, infrastructure planning, building design, and changes in construction cost are among the many factors that could cause material differences in the gross square footage numbers set forth above. However, the total completed space for each of the four Project elements may not be less than the minimum gross square feet outlined above.
III.
Substantial Progress Pursuant to C.R.S. 24-46-305(4), the Commission imposes the following conditions: A. Applicant (in conjunction with its partners) to submit a written plan detailing Project milestones and a graduated plan by March 16, 2014, including but not limited to the following milestones for which evidence of completion to be submitted to the Commission:
(1) Letter of intent from the Applicant and its partners stating plan to move forward with the approved Regional Tourism Project. (2) Detailed financing commitments, including but not limited to, philanthropic gifts, equity investors, debt instruments, local tax increment, and local sales tax. (3) Timeline for necessary land acquisition. (4) Engineering/Architectural plans. (5) Construction permits. (6) Construction timeline. B. The Financing Entity to submit Quarterly Reports detailing the progress on the Project and the Applicant, the Financing Entity and as needed partners to be available to participate in Quarterly Meetings with OEDIT to discuss progress on the Project to begin in the 1st quarter after the Commissions effective date of approval. C. The Applicant, the Financing Entity and relevant Project element partners to participate in twice yearly meetings with the Commission to discuss progress on the Project to begin in 1st half year after the Commissions effective date of approval. IV. Substantial Work Pursuant to C.R.S. 24-46-309, the Commission imposes the following conditions: A. Applicant must commence substantial work on each individual approved element of the Project pursuant to C.R.S. 24-46-309 (1-3) within five years of the date of the approval of the Project by the Commission or the Commission may revoke or modify its approval of that element. If substantial work is not commenced on any of the elements in the Project, the Commission may revoke or modify the entire Project. If the Commission revokes its approval of one ore more elements, the Commission may require that the MEAP of revenue associated with the revoked elements plus 7% per revoked element collected during that period plus any investment income earned thereon be refunded to the state treasurer. In addition, the percent of State Sales Tax Increment Revenue collected by the Department of Revenue and remitted to the Financing Authority going forward will be reduced by this MEAP plus 7% per revoked element. If after one or more elements have been revoked, and the Financing Entity has spent more than its available revenue on one or more non-revoked elements, the Financing Entity must refund the State Treasury associated with the revoked elements via withholding of future tax increment funds or other means approved by the Commission.
V.
Final Completion Date A. Each approved element must be fully completed and placed in service within 10 years of the Commissions Approval of the RTA Project. If not, the State Sales
Tax Increment Revenue Percent shall be reduced by the MEAP plus 7% for the remainder of the financing term for each element with a MEAP which has not been placed in service yet. Alternatively, if the Financing Authority has bonded the tax increment revenue stream, in place of reducing the State Sales Tax Increment Revenue Percent, the Financing Authority may pay the state treasurer a percent of bond proceeds equal to the MEAP plus 7% for each element with a MEAP which is not completed during this time. Note this requirement may be modified by the Commission at its sole discretion based on the final financing structure proposed by the Financing Authority. VI. Audit and Accountability A. Pursuant to C.R.S 24-46-308(1), the Financing Entity shall submit annual reports detailing: (1) the total amount of state sales tax increment revenue that the Regional Tourism Project has collected; (2) how it has been spent; (3) projected revenue for the remainder of the dedication period; and (4) a summary of the status of construction of the Eligible Improvements. B. Pursuant to C.R.S. 24-46-305(4), annual reports shall include an economic analysis that assesses the actual overall effectiveness of the Regional Tourism Project to date including: (1) the number of net new jobs directly created by the Project in each category as defined by CDLE and the wages and health benefits for jobs in each category; (2) the market impact; (3) regional and in-state competition; (4) attraction of out-of-state tourists; (5) the fiscal impact to local governments within and adjacent to the Regional Tourism Zone; (6) the return to the state on its investment; (7) information on all tax expenditures for regional tourism economic development during the prior fiscal year; and (8) In the event that the Applicant through CSURA or other local entities proposes to use property tax revenue to finance any element of the Project, Applicant must present an analysis of the impact to local school districts and the percentage of the total program that the state is required to fund. C. Pursuant to C.R.S. 24-46-308(2), annual independent audits of its financial status and confirmation that sales tax increment revenue is being used for Eligible Costs shall be submitted by the Financing Entity. D. Pursuant to C.R.S 24-46-308(3), the statute contains liability for amounts of sales tax increment revenue used for unauthorized purposes and remedy of repayment from other sources or offset against future state sales tax increment revenue to be disbursed.
APPENDIX 1: BREAKOUT OF JOB IMPACT BY PROJECT ELEMENT Element Name Temporary Construction Jobs Direct Indirect Induced Total Direct Ongoing Operating Jobs Indirect Induced Total
The United States 557 127 243 927 71 31 26 128 Olympic Museum Colorado Sports & 870 197 379 1446 232 60 106 398 Event Center Sports Medicine & 192 44 84 320 154 45 89 288 Performance Center Air Force Academy 253 58 110 421 29 13 11 53 Visitors Center TOTAL 1,872 426 816 3,114 486 149 232 867 Direct Jobs represent construction or operations jobs Indirect jobs represent business to business purchases of goods, materials and services to support construction or operation of the Projects. Induced jobs are created by the spending of labor income generated by the direct and indirect jobs. Source: Third Party Analyst (EPS)
APPENDIX 2: TPA TAX INCREMENT ANALYSIS
Colorado Springs RTA November 25, 2013
Table 3 Tax Increment Calculations
Description
Applicant
Third Party Analyst
All Projects Combined State Sales Tax Increment in RTZ Eligible Tax Increment U.S. Olympic Museum Colorado Sports Events Center Downtown Stadium Colorado Sports Events Center Subtotal UCCS Sports Medicine Center USAFA Visitors Center Total Percent Individual Projects United States Olympic Museum State Sales Tax Increment in RTZ Eligible Tax Increment Percent Colorado Sports Events Center Downtown Stadium State Sales Tax Increment in RTZ Eligible Tax Increment Percent Sports Events Center State Sales Tax Increment in RTZ Eligible Tax Increment Percent Total State Sales Tax Increment in RTZ Eligible Tax Increment Percent
$880,392,458
$866,880,851
$68,047,597
$28,268,098
$4,055,189 $26,412,751 $30,467,941 $13,657,773 $12,971,937 $125,145,248 14.2%
$4,055,203 $11,314,463 $15,369,667 $9,219,002 $260,870 $53,117,637 6.13%
N/A N/A N/A
$807,953,066 $28,268,098 3.50%
N/A N/A N/A N/A N/A N/A N/A N/A N/A
$768,862,346 $4,055,203 0.53% $779,440,751 $11,314,463 1.45% $793,055,887 $15,369,667 1.94%
UCCS Sports Medicine Center State Sales Tax Increment in RTZ Eligible Tax Increment Percent USAF Academy Visitors Center State Sales Tax Increment in RTZ Eligible Tax Increment Percent
Source: Economic & Planning Systems
H:\ 133023- Colorado Regional Tour ism\ Models\ [ 133023-Pr ogr am 11- 18- 2013.xlsx] Increment
N/A N/A N/A
$774,557,979 $9,219,002 1.19%
N/A N/A N/A
$757,055,549 $260,870 0.03%
Economic & Planning Systems, Inc.
10
Revised Final Report
3.
TAX INCREMENT ANALYSIS
This chapter presents EPS independent analysis of the proposed tourism development Project and its potential out of state visitation and associated State sales tax revenue. A revised estimate of the total RTZ tax increment and the portion of the tax increment for which the Project would be eligible is identified.
RTZ Base Sales Tax

In order to calculate the incremental sales tax that a Project is eligible to receive, the Base Sales Tax must be established. A Project is only eligible to receive the net new incremental sales tax it generates within the RTZ; other incremental sales tax revenue growth not attributable to a Project cannot be directed to a Project. The RTA allows an Applicant to define RTZ boundaries beyond project boundaries, and can encompass an entire jurisdiction, or multiple jurisdictions if there are multiple jurisdiction sponsors to an Application. Broadly defined RTZs, such as the proposed RTZ in Colorado Springs, contain a large portion of the retail and lodging development in a city and therefore will generate sales tax growth from general economic activity and the natural growth of the community. The eligible tax increment is only what is generated by the increase in tourism activity from the Project itself. The Base Sales Tax within the Colorado Springs RTZ is the 2014 Base Year Sales Tax increased over time at the estimated natural growth rate for sales tax in Colorado Springs. The Applicant has used a 1.5 percent annual growth rate for the sales tax base, which EPS judges to be a reasonable estimate. The Application identifies the RTZ 2014 Base Sales Tax of $100.1 million, as shown in Table 11. The natural increase of the Base grown at 1.5 percent per year for 30 years through 2043 is estimated at $755.2 million above the base, as shown. The total tax increment in the RTZ is the total sales tax generated by a project in the RTZ, plus the natural increase of the base. The percentage of RTZ sales tax revenue a project is eligible to receive is the net new tax revenue from out of state visitor spending divided by the total tax increment.
Table 11 RTZ Base Sales Tax
Ann. Grow th Rate
Year
2014
Base Year
2015
2016
2017
2018
2019
2020
2043
Total
Sales Tax Base ($000s) Natural Growth of Base ($000s)

1.5%
$100,183 $0
$101,686 $1,503
$103,211 $3,028
$104,759 $4,576
$106,331 $6,148
$107,925 $7,743
$109,544 $9,361
$154,280 $54,097
$755,247
H:\ 133023-Colorado Regional Tour ism\ Models\ [ 133023-Progr am.xlsx] RTZ Base
29
133023-FinalReport_112513
U.S Olympic Museum

In the Supplemental Material, the Applicant provided an expanded set of comparable facilities from which it has estimated the annual visitation to the proposed Museum. The Applicants museum consultant judges these to be more comparable pilgrimage museums than the facilities EPS cited in the initial Draft Report. The International Spy Museum is located in Washington, D.C., and attracts 700,000 annual visitors, with 90 percent from outside the District of Columbia, a very small geographic jurisdiction (Table 12). The Rock and Roll Hall of Fame in Cleveland, OH attracts 450,000 annual visitors. The 69 percent out of state visitor proportion is from an induction ceremony, which is an annual event held to induct new members into the Hall of Fame. Certainly this type of special annual event would have a larger draw than a typical day or average annual attendance. The National World War II Museum in New Orleans, LA attracts 80 percent of its visitors from outside Louisiana, which is consistent with the national draw that New Orleans has on its own as an international tourism destination. The Mob Museum (organized crime) in Las Vegas, NV has 250,000 annual visitors with 77 percent from outside Nevada, which is also consistent with the national and international draw of Las Vegas and the numerous entertainment and cultural options there. The Football Hall of Fame draws 200,000 annual visitors, with 70 to 80 percent from outside Ohio. EPS finds the Applicants estimate of 350,000 annual visitors as potentially achievable if the Museum is executed to the standards and caliber described in the Application. However EPS believes that this estimate is aggressive, given that each comparable is located in a metro area with nearly two to over 8 times the population of Colorado Springs.
Table 12 Applicants Comparable Museums
Facility
Location
MSA Population (2010)
Ann. Visitors
% Out of State
International Spy Museum Rock and Roll Hall of Fame National WWII Museum Proposed US Olympic Museum Mob Museum Football Hall of Fame
Washington, D.C. Cleveland, OH New Orleans, LA Colorado Springs Las Vegas, NV Canton, OH
5,636,232 2,077,240 1,189,866 645,613 1,951,269 2,077,240
700,000 450,000 375,000 350,000 250,000 200,000
90% 69% 80% 82% 77% 70-80%
Source: Barrie Projects, Economic & Planning Systems, US Census

H:\ 133023-Colorado Regional Tourism\ Dat a\ [ Museum Comps.xlsx] Sheet 1
30
The Applicant estimates 82 percent of the visitors to the US Olympic Museum in Colorado Springs will originate from outside Colorado. In the Initial Report, EPS used the Applicants estimate of 60 percent out of state visitation, with caveats that this too was judged to be aggressive, but adjusted down the attendance to 250,000 per year. In the Supplemental Material, the Applicant described this as a misinterpretation by EPS. EPS presents publicly available data from the Denver area Science and Cultural Facilities District that tracks the origin of its attendees. The Denver Art Museum, housed in an iconic building designed by Daniel Libeskind, drew 589,000 visitors in FY2013 with 13.9 percent from outside Colorado (Table 13). The Denver Museum of Nature and Science draws 1.3 million visitors, with 17.3 percent from outside Colorado. These data suggest that the Applicants 82 percent out of state visitor figure may be overly optimistic, given the City and States geographic location. This analysis will assume 350,000 annual visitors, with 60 percent originating from outside Colorado.
31
Table 13 Selected Attendance Figures, Science and Cultural Facility District, FY2013
Attendee Residence
Denver Museum of Nature and Science
Denver Center Denver Botanic for the Denver Zoo Gardens Performing Arts
Denver Art Museum
Central City Opera House
American Colorado Mountaineering Center Chataqua
Attendence Adams Arapahoe Boulder Broomfield Denver Douglas Jefferson CO Outside Metro Area US Outside Colorado Outside US Unknown Total Total Attendance Percent Adams Arapahoe Boulder Broomfield Denver Douglas Jefferson CO Outside Metro Area US Outside Colorado Outside US Unknown Total
117,760 151,030 74,570 29,630 221,430 63,840 162,040 274,080 232,200 15,320 --1,341,900 1,341,900
170,888 257,830 103,309 23,161 375,925 149,643 246,582 422,601 315,471 ----2,065,410 2,065,410
31,492 82,558 44,257 2,554 425,559 30,640 102,134 50,216 77,282 4,425 --851,117 851,117
40,466 120,974 40,750 11,222 157,131 64,445 101,755 91,271 49,782 15,658 --693,454 746,887
18,766 53,499 37,960 3,824 208,249 37,838 74,175 63,431 81,772 9,782 --589,296 592,536
2,994 6,671 3,963 583 17,368 3,178 7,140 7,474 188 --493 50,052 50,052
947 748 25,166 412 3,633 370 1,108 3,048 22,905 1,112 60,754 120,203 120,203
1,381 6,008 8,190 1,151 10,906 2,560 9,829 15,213 2,799 --2,719 58,037 60,756
8.8% 11.3% 5.6% 2.2% 16.5% 4.8% 12.1% 20.4% 17.3% 1.1% --100.0%
8.3% 12.5% 5.0% 1.1% 18.2% 7.2% 11.9% 20.5% 15.3% ----100.0%
3.7% 9.7% 5.2% 0.3% 50.0% 3.6% 12.0% 5.9% 9.1% 0.5% --100.0%
5.8% 17.4% 5.9% 1.6% 22.7% 9.3% 14.7% 13.2% 7.2% 2.3% --100.0%
3.2% 9.1% 6.4% 0.6% 35.3% 6.4% 12.6% 10.8% 13.9% 1.7% --100.0%
6.0% 13.3% 7.9% 1.2% 34.7% 6.3% 14.3% 14.9% 0.4% --1.0% 100.0%
0.8% 0.6% 20.9% 0.3% 3.0% 0.3% 0.9% 2.5% 19.1% 0.9% 50.5% 100.0%
2.4% 10.4% 14.1% 2.0% 18.8% 4.4% 16.9% 26.2% 4.8% --4.7% 104.7%
Source: Science and Cultural Facilities District; Economic & Planning Systems
32
Net New Visitor Adjustment

Based on the information provided in the Application, Supplemental Material, and information obtained on the comparable museums, EPS adjusted the Applicant's estimate of net new visitors and spending captured in the RTZ, as summarized in Table 14. The Museum has the potential to be a unique attraction in Colorado as the only large sporting hall of fame in Colorado. Therefore it is not assumed to erode any visitors from existing facilities. The Museum will also be a new facility, not a relocation of an existing use. While the museum can be classified as a pilgrimage museum for Olympic sports enthusiasts, it is located in a smaller market than the comparable facilities, with a smaller critical mass of other tourist attractions. Compared to the cities in which the comparables are located, the comparable cities have more direct air service markets outside their respective states. There are fewer direct flights to Colorado Springs than there are to these other Cities. Therefore EPS estimates that a maximum of 50 percent of the museums visitors would not have otherwise visited Colorado if this museum were not built.
33
Table 14 Olympic Museum Net New Adjustment
Criteria
U.S. Olympic Museum Comments
Adjustment
Initial Total Uniqueness and Competition - Only Olympic Museum in the U.S. with the backing of the USOC. - No comparable factility in Colorado. N/A
100% 0%
Relocation of Existing Use within Colorado
0%
Primary Destination / Reason for Trip
- Museum feasibility study classifies as a "pilgrimage" museum. - Less densely populated trade area compared to comparable facilities. - More difficult access than comparable facilities. Trip likely to be combined with visits to other Colorado attractions.
-50%
Ability to Capture Spending/Tourism Leakage from Colorado Residents
- No adjustment. Coloradoans still likely to visit other pilgrimage museums appealing to their particular interest.
0%
Net New Factor Percent out of State Total Adjustment

C:\ Users\ EET\ Deskt op\ Brian\ [ 133023-Program 11-18-2013.xlsx] Museum Net New
50.0% 60.0% 30.0%
USOC Museum Tax Increment in RTZ

The first step in determining the percentage of the tax increment in the RTZ that is net new and attributed to the Museum project is estimating the total tax increment in the RTZ with the Museum. This is:
Step 1 - The incremental growth in sales tax in the RTZ attributed to natural growth (1.5 percent per year); plus Step 2 - The new sales tax in the RTZ generated by the new economic activity and spending in the RTZ as a result of constructing the museum.
The sales tax from NNOSV is then estimated in a separate step and divided by the result of Step 2 to arrive at the eligible percentage.
34
The Museum generates sales tax that is new to the RTZ through the increase in visitors. Assuming that overnight visitors spend on average $327 per person per trip and make 75 percent of their purchases in the zone, overnight guests produce $1.62 billion in spending in the RTZ over the 2014 through 2043 time period (Table 15). Based on the Longwoods Survey data, day visitors from out of state spend approximately $29.11 per day on retail and food and beverages and generate $192.8 million in spending, assuming 100 percent of their purchases are made in the Zone. The new sales tax generated by the Museum is estimated at $52.7 million over 30 years. Adding this to the tax increment from natural growth results in a total tax increment in the RTZ of $807.9 million over 30 years. EPS has not assumed any increases in visitation due to the novelty effect noted by the Applicant, as they may be cancelled out by declines in visitation during economic recessions or other events or conditions that temporarily lower visitation. In addition, EPS has not assumed any net new trip extending visitors as part of this analysis, as the 60 percent out of state visitor factor is likely higher than will be achieved given the geography of Colorado Springs.
Museum Net New Sales Tax Increment

To calculate the maximum net new sales tax the Museum would be eligible to receive, the spending and State sales tax supported by the annual visitors is estimated. Of the 350,000 annual visitors in a stabilized operating year, 60 percent of Project visitors are estimated to be from outside Colorado, and for 50 percent of visitors the Museum is their primary destination. The Museum would therefore draw 105,000 visitors to Colorado who would not have otherwise come to the State in a stabilized operating year (Table 16). Museum visitors are assumed to spend $327 per trip per person, which supports $34.3 million in spending in a stabilized operating year. In addition to the 50 percent NNOSV adjustment, there needs to be an adjustment made for spending that occurs outside in the RTZ. Many visitors, even destination visitors to the Museum, will likely visit other attractions in Southern Colorado, Denver, or the mountains during their 4.5 day average stay. EPS has applied an estimated maximum capture rate of 75 percent to adjust for an estimated 25 percent of spending that occurs outside the RTZ and cannot be claimed as a Project revenue according to the Statute. After applying the 2.9 percent State sales tax rate, the Project generates $746,800 in net new annual sales tax at stabilization, and $28.3 million (with 2.0 percent inflation) over the 30-year financing period from 2014 through 2043. The sales tax base in the RTZ is the Base Year Sales Tax of $100.2 million grown at a natural growth rate of 1.5 percent as estimated by the Applicant, which includes inflation and any growth in population or retail space. The total State sales tax increment in the RTZ is $807.9 million over 30 years with the Museum Project (natural growth plus Project increment). Net new out of state visitor spending is projected to generate $28.3 million in sales tax over 30 years (Table 16). The eligible tax increment is $28.3 million divided by $807.9 million, which is 3.50 percent of the RTZ tax increment or approximately $942,000 per year.
35
Table 15 RTZ Tax Increment with Museum Project
Description
Factor
2014
Base Year
2015
2016
2017
2018
(Stabilization)
2019
2020
2043
2014-2043 Total
Museum Visitors Annual Museum Visitors Overnight Visitors, Stay in RTZ Day Visitors and Overnight Guests Staying Elsewhere Visitor Spending Potential ($000s) [1] Overnight Visitors, Stay in RTZ Day Visitors and Overnight Guests Staying Elsewhere Spending Potential Visitor Spending in RTZ ($000s) Overnight Visitors, Stay in RTZ Day Visitors and Overnight Guests Stay Elsewhere Spending Captured in RTZ State Sales Tax Increment
100% 50% 50%
0 0 0
0 0 0
71,500 35,750 35,750
200,000 100,000 100,000
300,000 150,000 150,000
350,000 175,000 175,000
350,000 175,000 175,000
350,000 175,000 175,000
9,321,500 4,660,750 4,660,750
$327/trip $29.11/day
$0.0 $0.0 $0.0
$0.0 $0.0 $0.0
$12,405.8 $1,104.4 $13,510.2
$35,395.5 $3,151.1 $38,546.6
$54,155.2 $4,821.2 $58,976.3
$64,444.6 $5,737.2 $70,181.8
$65,733.5 $103,655.2 $5,851.9 $9,227.9 $71,585.5 $112,883.0
$2,166,137.8 $192,840.0 $2,358,977.7
75% 100% 2.9%
$0.0 $0.0 $0.0 $0.0
$0.0 $0.0 $0.0 $0.0
$9,304.3 $1,104.4 $10,408.8 $301.9
$26,546.6 $3,151.1 $29,697.7 $861.2
$40,616.4 $4,821.2 $45,437.5 $1,317.7
$48,333.5 $5,737.2 $54,070.7 $1,568.0
$49,300.2 $5,851.9 $55,152.1 $1,599.4
$77,741.4 $9,227.9 $86,969.3 $2,522.1
$1,624,603.3 $192,840.0 $1,817,443.3 $52,705.9
Project Sales Tax Increment Natural Sales Tax Increment RTZ Increment with Museum Project ($000s)
[1] Includes 2.0% annual inflation above 2013 Source: Economic & Planning Systems
H:\ 133023-Colorado Regional Tour ism\ Models\ [ 133023-Program 11- 18- 2013.xlsx] 1-Museum Increment
$0.0 $0.0 $0.0
$0.0 $1,502.7 $1,502.7
$301.9 $3,028.0 $3,329.9
$861.2 $4,576.2 $5,437.4
$1,317.7 $6,147.6 $7,465.3
$1,568.0 $7,742.5 $9,310.6
$1,599.4 $9,361.4 $10,960.8
$2,522.1 $54,096.8 $56,618.9
$52,705.9 $755,247.2 $807,953.1
36
Table 16 Olympic Museum Net New Sales Tax Increment
Description
Factor
2014
Base Year
2015
2016
2017
2018
2019
(Stabilization)
2020
2043
2014-2043 Total
Visitors Annual Visitors Out of State Visitors (OSV) Overnight NNOSV
60% 50%
0 0 0
0 0 0
71,500 42,900 21,450
200,000 120,000 60,000
300,000 180,000 90,000
350,000 210,000 105,000
350,000 210,000 105,000
350,000 210,000 105,000
9,321,500 5,592,900 2,796,450
Visitor Spending ($000s of 2013$) Overnight NNOSV Captured in RTZ Sales Tax from NNOSV Eligible Tax Increment: NNOSV Spending in RTZ ($000s, Inflated)
$327/trip 75% 2.9%
$0 $0 $0.0
$0 $0 $0.0
$7,014 $5,261 $152.6
$19,620 $14,715 $426.7
$29,430 $22,073 $640.1
$34,335 $25,751 $746.8
$34,335 $25,751 $746.8
$34,335 $25,751 $746.8
$914,439 $685,829 $19,889.1
2.0%
$0.0
$0.0
$161.9
$461.9
$706.7
$841.0
$857.8
$1,352.7
$28,268.1
RTZ Sales Tax Increment with Museum ($000s) Eligible Tax Increment ($000s) % of RTZ Revenue
H:\ 133023-Colorado Regional Tourism\ Models\ [ 133023-Program 11-18-2013.xlsx] 2-Museum NNST
$0.0 $0.0 0.00%
$1,502.7 $0.0 0.00%
$3,329.9 $161.9 4.86%
$5,437.4 $461.9 8.50%
$7,465.3 $706.7 9.47%
$9,310.6 $841.0 9.03%
$10,960.8 $857.8 7.83%
$56,618.9 $1,352.7 2.39%
$807,953.1 $28,268.1 3.50%
37
Downtown Stadium and Events Center

Downtown Stadium
The existing Sky Sox stadium draws approximately 350,000 annual attendance, and the new stadium is estimated by the Applicant to draw 672,000 by 2019 when it is assumed to reach a stabilized operating year. The Applicant has estimated that the new stadium will be able to draw more visitors because of its higher visibility closer to I-25, iconic architecture, and overall improved visitor experience. The Applicant did not provide any data on comparable new stadiums in the Midwestern or Western U.S., although there have been several built in the last 10 to 15 years. Instead, the Applicant relies on a statistical analysis of locational attributes to estimate the new stadium visitation, and arrives at 672,000 visitors in a stabilized year. EPS compiled data on four other minor league stadiums. Their annual game attendance ranges from approximately 350,000 in Reno, NV to 567,000 in Albuquerque, NM, as described below. Albuquerque is judged to be a good comparable, as they are both Southwestern cities with a population of approximately half a million and lacking any major league sports teams. Aces Stadium, Reno, NV Aces Stadium is the 9,000-seat home of the Reno Aces, a minor league affiliate of the Arizona Diamondbacks. Play began in 2009 with The Freight House District, an attached entertainment facility with a sports bar, lounge and ale house, opening during the 2010 season. Their attendance numbers put them in the middle of the Pacific Coast League at approximately 429,000 per season. Werner Park, Papillion (Omaha), NE Werner Park is a 9,000-seat stadium in the Omaha suburb of Papillion, NE. It is the home of the Omaha Storm Chasers, an affiliate of the Kansas City Royals. The stadium opened in 2011 after the team relocated from downtown Omahas Rosenblatt Stadium, the site of the College Baseball World Series. Non Storm Chaser events are limited to local high school baseball games. While average annual attendance of around 405,000 puts it in the middle of the Pacific Coast League, numbers have steadily risen over the past decade for a few reasons. One, Omaha contains a large population of young families and young adults, minor league baseballs target markets for affordable family entertainment. Also, their new stadium has improved overall market capture as well as business market capture with an increase in corporate suites and group sales. Isotopes Park, Albuquerque, NM Isotopes Park is a 13,000-seat stadium in Albuquerque, NM and is the Triple A home of the Los Angeles Dodgers. The park was a $25 million redevelopment of an older, out of date stadium when the Calgary franchise relocated in 2003. The Isotopes draw an average of nearly 580,000 fans per season, which puts them in the top three in the Pacific Coast League. Events are limited to baseball as the stadium does not host any outside events at this time. EPS was not able to obtain attendance figures from the old stadium.
Downtown Stadium Net New Visitors Adjustment
The total projected visitation of 672,000 is higher than the comparable facilities and represents a 92 percent increase over existing levels. However, the Applicant makes a conservative estimate that 7.6 percent of the attendees will be net new visitors from out of state, which is only slightly above the current estimated 7.0 percent. No additional adjustments to net new out of state visitors were made by EPS. Stabilized visitation of 672,271 is assumed to be reached by 2020 (Table 17).
38
RTZ Tax Increment with Downtown Stadium Project
Stabilized attendance of 672,000, including 51,093 NNOSV, is reached in 2020 (Table 17). The tax increment in the RTZ created by the new stadium is added to the tax increment from the natural growth of sales tax to forecast the total tax increment in the RTZ over the next 30 years. The sales tax increment from the stadium comes from spending by from outside the RTZ, irrespective of their origination from inside or outside of Colorado. It does not, however, include spending from RTZ residents, as that would be a redistribution of discretionary spending from other existing retailers, food and beverage outlets, or entertainment venues. With out of state visitors extending their trip by a day to visit the stadium, they are estimated to spend $72.76 per day in the RTZ, generating $139.8 million in spending over 30 years (Table 17). Other stadium visitors from Colorado but outside the RTZ are assumed to spend $21 per day in the RTZ, generating $329.6 million in spending that is new in the RTZ but not new to Colorado. After applying the 2.9 percent State sales tax rate, the State sales tax increment resulting from the Stadium is $13.6 million over 30 years. The total increment in the RTZ with the Stadium Project is $768.9 million over 30 years.
Downtown Stadium Eligible Tax Increment
Consistent with the Applicants analysis framework, stadium attendees from outside Colorado are assumed to have travelled to Colorado for other purposes, but stay an additional day that they would not have otherwise stayed in order to visit the stadium. At $72.67 per day per person, spending from NNOSV is $3.7 million per year at stabilization. Over 30 years total spending is estimated at $98.2 million. After applying 2.0 percent annual inflation and the 2.9 percent sales tax rate, the resulting 30 year sales tax increment is $4.05 million (Table 18). Total sales tax from 2014 through 2043 is $4.05 million and the eligible tax increment is 0.53 percent of the RTZ tax increment, or $135,000 per year over 30 years.
39
Table 17 RTZ Tax Increment with Downtown Stadium Project
Description
Factor
2014
Base Year
2015
2016
2017
2018
2019
2020
2043
2014-2043 Total
Stadium Attendess Downtown Stadium Total Attendees NNOSV From outside Colorado Springs RTZ [1] From Colorado Springs (RTZ) Attendee Spending Potential ($000s) [2] NNOSV From outside Colorado Springs RTZ Spending Potential State Sales Tax Increment
7.6% 62.0% 30.4%
0 0 0 0
0 0 0 0
0 0 0 0
450,000 34,200 279,000 136,800
550,000 41,800 341,000 167,200
650,000 49,400 403,000 197,600
672,271 51,093 416,808 204,370
672,271 51,093 416,808 204,370
17,784,504 1,351,622 11,026,392 5,406,489
$72.67/day $21/day 2.9%
$0.0 $0.0 $0.0 $0.0
$0.0 $0.0 $0.0 $0.0
$0.0 $0.0 $0.0 $0.0
$2,690.2 $6,342.0 $9,032.2 $261.9
$3,353.8 $7,906.3 $11,260.1 $326.5
$4,042.8 $9,530.7 $13,573.5 $393.6
$4,265.0 $10,054.4 $14,319.4 $415.3
$6,725.4 $15,854.8 $22,580.2 $654.8
$139,834.6 $329,652.9 $469,487.5 $13,615.1
Project Sales Tax Increment Natural Sales Tax Increment RTZ Increment with Stadium Project ($000s)
[1] 62% from outside Colorado Springs, p. 23 of Stadium Market Analysis. [2] Includes 2.0% annual inflation [3] $21/day spending from Stadium Feasibility Study p. 32. Source: Economic & Planning Systems
H:\ 133023-Colorado Regional Tourism\ Models\ [ 133023-Program 11-18-2013.xlsx] 4-St adium Increment
$0.0 $0.0 $0.0
$0.0 $1,502.7 $1,502.7
$0.0 $3,028.0 $3,028.0
$261.9 $4,576.2 $4,838.1
$326.5 $6,147.6 $6,474.1
$393.6 $7,742.5 $8,136.2
$415.3 $9,361.4 $9,776.7
$654.8 $54,096.8 $54,751.7
$13,615.1 $755,247.2 $768,862.3
40
Table 18 Downtown Stadium Net New Sales Tax Increment
Description
Factor
2014
Base Year
2015
2016
2017
2018
2019
2020
(Stabilization)
2043
2014-2043 Total
NNOSV
34,200
41,800
49,400
51,093
51,093
1,351,622
Visitor Spending ($000s of 2013$) NNOSV Trip Spending Sales Tax from NNOSV Eligible Tax Increment: NNOSV Spending in RTZ ($000s, Inflated)
$72.67/day 2.9%
$0.0 $0.0
$0.0 $0.0
$0.0 $0.0
$2,485.3 $72.1
$3,037.6 $88.1
$3,589.9 $104.1
$3,712.9 $107.7
$3,712.9 $107.7
$98,222.4 $2,848.4
2.0%
$0.0
$0.0
$0.0
$78.0
$97.3
$117.2
$123.7
$195.0
$4,055.2
RTZ Sales Tax Increment with Stadium ($000s) Eligible Tax Increment ($000s) % of RTZ Revenue
H:\ 133023-Color ado Regional Tour ism\ Models\ [ 133023-Progr am 11-18- 2013.xlsx] 5-St adium NNST
$0.0 $0.0 0.00%
$1,502.7 $0.0 0.00%
$3,028.0 $0.0 0.00%
$4,838.1 $78.0 1.61%
$6,474.1 $97.3 1.50%
$8,136.2 $117.2 1.44%
$9,776.7 $123.7 1.27%
$54,751.7 $195.0 0.36%
$768,862.3 $4,055.2 0.53%
41
Colorado Sports Events Center

The Applicants consultants met with representatives from the National Governing Bodies (NGBs) in Colorado Springs and other sports management groups to estimate the number of annual events, athletes and other visitors (coaches, family/friends, spectators) that the proposed Colorado Sports Events Center (CSEC) could attract. Included in the Supplemental Material, an analysis by Summit Economics estimates 53 annual events as follows. The NGBs estimate that 9 new NGB-sponsored events could be brought to Colorado Springs, and 23 events could be brought back to Colorado that are currently held elsewhere. The Applicant would target an additional 15 multisport organizations (a wide range of sporting activities) and other large national events averaging 6.2 per year considering that some may not come to Colorado Springs every year, and some are more competitive to attract. EPS has aggregated several of the Applicants calculations and tables into a summary shown in Table 19. Within the New Non-Olympic Events category, the Applicant is assuming that major events such as the X Games and the Mountain Dew Tour will be recruited each year. These are highly competitive and sought after events. The facility would also target sports conferences and gatherings estimated at an average of 3.6 events per year. Among all athletes, 80 percent are estimated to be from outside Colorado based on information from the NGBs, and 73 percent of accompanying coaches, trainers, family/friends/spectators, are from outside Colorado. The average stay for these events is modeled at an average of 4.5 to 4.6 days.
42
Table 19 Applicants Sports Events Center Visitation Estimates
Athletes # of Events per Year Per Event % Out of State Out of State
Coaches, Family, Spectators Per Event % Out of State Out of State
Event Type
Out of State Visitor Days Coaches, Family, Avg. Stay Spect. (Days) Athletes
In-State Visitor Days Coaches, Family, Spect. Athletes
New NGB1 Events Existing NGB Events Retained in CO New Multi Sport Organizations New Non-Olympic Events Total Athletic Events
9 23 15 6.2 53
234 500 153 1,105 1,991

Delegates
91% 50% 90% 90% 80%
213 250 137 994 1,594
1,977 1,500 1,177 1,150 5,804
33% 75% 59% 90% 61%
662 1,125 690 1,035 3,512
4.5 4.5 4.5 4.6
8,618 25,875 9,270 28,584 72,347
26,820 116,438 46,598 29,745 219,601
852 25,875 1,030 3,176 30,933
53,268 38,813 32,823 3,305 128,209
Fam ily/Friends
New Symposiums and Group Meetings

1
3.6
919
90%
828
379
90%
342
3.4
10,190
4,208
1,112
448
National Governing Bodies of Sport
Source: Summit Economics

H:\ 133023-Colorado Regional Tourism\ Models\ [ 133023-Pr ogr am 11- 18-2013.xlsx] 1- App SPEC Visit ors
43
In total, the Applicant estimates that the Sports Events Center would attract 451,000 visitors to sports events and nearly 16,000 annual visitors to group meetings and symposiums for a total of 467,048 annual visitor days (Table 20).
Table 20 Year 4 Total Visitors to Sports Events Center (Applicant)
Event Type
Out of State Visitor Days Coaches, Family, Athletes Spect.
In-State Visitor Days Coaches, Family, Athletes Spect.
Total Visitor Days Coaches, Family, Athletes Spect.
Total
New NGB Events Existing NGB Events Retained in CO New Multi Sport Organizations New Non-Olympic Events Total Athletic Events
8,618 25,875 9,270 28,584 72,347
26,820 116,438 46,598 29,745 219,601
852 25,875 1,030 3,176 30,933
53,268 38,813 32,823 3,305 128,209
9,470 51,750 10,300 31,760 103,280
80,088 155,251 79,421 33,050 347,810
89,558 207,001 89,721 64,810 451,090

Total
Delegates Fam ily/Friends

10,190
4,208
1,112
448
15,958
H:\ 133023-Colorado Regional Tourism\ Models\ [ 133023-Program 11-18-2013.xlsx] 2-App SPEC Tot als
The analysis prepared by Summit Economics is reasonable with some limitations. It is not a market study in the sense that the national or regional market for these events is not quantified, so EPS has not been able to evaluate the amount of market share that is being assumed for capturing these events. While there will presumably be synergies with the USOC, if the facility is well executed and well marketed, many of these events targeted are still competitive with other venues throughout the U.S.
Adjusted Visitation
The only adjustment to the visitation figures made by EPS is to the Non-Olympic Events, and the percentages of NNOSV assumed for each event category. The Applicant is estimating that they will be able to attract two large events, the National Senior Games, and the National State Games once every 10 years. These two events draw over 10,000 athletes each. The Summer X Games and Mountain Dew tour will require a major recruitment effort to attract, as they are desired by many venues and cities. The first Summer X Games was held at Mount Snow Vermont in 1995, which had a long track record of hosting UCI World Cup mountain bike races. It has since visited several major cities including San Diego, Los Angeles, and Barcelona, Spain. The Mountain Dew Tour has visited Breckenridge, CO, Las Vegas, Salt Lake City, and other major cities as well. EPS has adjusted down the assumption of hosting the X Games or Mountain Dew (or similar events) to assume one major event every 10 years, consistent with the National Senior and State Games assumption (Table 19). Total non-Olympic events are now assumed to be 4.4 per year with an average of 723 athletes per event. The remaining events, out of state visitor factors, and length of stay estimates are reasonable.
44
Table 21 Non-Olympic Event Adjustment
Event Type
# of Events per Year EPS Applicant Adjustment
Athletes per Event
Year 3 - Nat'l Senior Games Year 4 - State Games Year 3 - X Games Year 4 - Mtn Dew or Similar Year 2 - TBD 1/mo per summer Total
0.1 0.1 1.0 1.0 4.0 6.2
0.1 0.1 0.1 0.1 4.0 4.4
11,000 10,800 1,000 1,000 200 723
H:\ 133023- Color ado Regional Tour ism\ Models\ [ 133023-Progr am 11- 18- 2013.xlsx] 3- EPS Non Oly Event s
After adjusting for a lower probability of attracting the non-Olympic events, the revised visitor total is approximately 423,000 annual visitor days, including nearly 88,000 from athletes, 334,000 from coaches and other visitor types, and nearly 16,000 group meeting visitor days (Tables 22 and 23).
Table 22 Revised Year 4 Attendance and Visitation
Athletes # of Events per Year Per Event % Out of State Out of State Coaches, Family, Spectators Per Event % Out of State Out of State Out of State Visitor Days Coaches, Family, Athletes Spect. In-State Visitor Days Coaches, Family, Athletes Spect.
Event Type
Avg. Stay (Days)
New NGB1 Events Existing NGB Events Retained in CO New Multi Sport Organizations New Non-Olympic Events Total Athletic Events
9.0 23.0 15.0 4.4 51.4
234 500 153 723 1,609
91% 50% 90% 90% 78%

Delegates
213 250 137 650 1,251
1,977 1,500 1,177 864 5,518
33% 75% 59% 90% 59%

Fam ily/Friends
662 1,125 690 777 3,255
4.5 4.5 4.5 4.6
8,618 25,875 9,270 13,271 57,034
26,820 116,438 46,598 15,859 205,715
852 25,875 1,030 3,176 30,933
53,268 38,813 32,823 3,305 128,209
Delegates
Fam ily/Friends

1
3.6
919
90%
828
379
90%
342
3.4
10,190
4,208
1,112
448
National Governing Bodies of Sport

H:\ 133023- Color ado Regional Tourism\ Models\ [ 133023-Program 11-18-2013.xlsx] 4-EPS SPEC Event s
45
Net New Adjustment
The Applicant estimates that 90 to 95 percent of event attendees will be new to Colorado, which EPS judges to be on the high side. There are several other large sporting venues in the State that can and do accommodate existing amateur sporting events. The athletic complexes at the major colleges and universities compete for some of these events. Other venues including the mountain resorts also seek adult and youth sports groups and tournaments. This facility will be affiliated with the USOC, which may give it a competitive advantage for bringing some new events from other states, but there will still be some competition with existing facilities in Colorado. EPS has estimated that 75 percent of the National Governing Body events will be net new (Table 23). The multisport and Non-Olympic events are judged to be more competitive with existing venues and are estimated to be 50 percent net new to Colorado. The weighted average net new factor for out of state visitors is 65.1 percent for Athletes and 67.4 percent for coaches. Group meetings are also competitive with other conference venues throughout the State and in Colorado Springs and are estimated to be 50 percent net new. The resulting Year 4 NNOSV projection is 175,800 from sporting events and 7,200 from group meeting business.
46
Table 23 Revised Year 4 Attendance and Visitation

Out of State Visitor Days Coaches, Family, Athletes Spect. In-State Visitor Days Coaches, Family, Athletes Spect. Total Visitor Days Coaches, Family, Athletes Spect.
Event Type
Total
Event Visitation - Visitor Days New NGB Events Existing NGB Events Retained in CO New Multi Sport Organizations New Non-Olympic Events Total Athletic Events Pct. Out of State Visitor Days [1]
8,618 25,875 9,270 13,271 57,034 64.8%
26,820 116,438 46,598 15,859 205,715 61.6%
852 25,875 1,030 3,176 30,933
53,268 38,813 32,823 3,305 128,209
9,470 51,750 10,300 16,447 87,968
80,088 155,251 79,421 19,164 333,923
89,558 207,001 89,721 35,611 421,891
Total
10,190
4,208
1,112
448
15,958
Net New Factor New NGB Events Existing NGB Events Retained in CO New Multi Sport Organizations New Non-Olympic Events All Athletic Events (Weighted Average)
75% 75% 50% 50% 65.1%
75% 75% 50% 50% 67.4%
50.0%
50.0%
Net New Out of State Visitor Days New NGB Events Existing NGB Events Retained in CO New Multi Sport Organizations New Non-Olympic Events Total Athletic Events
NNOSV 6,464 19,406 4,635 6,636 37,140
20,115 87,329 23,299 7,929 138,672
Total 26,579 106,735 27,934 14,565 175,812
5,095
2,104
7,199
[1] The percentage of out of state visitor days is different from the percentage on a per event basis due to varying average stays and athletes per event. Source: Summit Economics
H:\ 133023-Color ado Regional Tourism\ Models\ [ 133023- Pr ogram 11- 18- 2013.xlsx] 5-EPS SPEC TOTALS
Using the factors for out of state visitors and net new events, the number of visitor days by type are projected through 2043 in Table 24. In a stabilized operating year, there are nearly 88,000 visitor days from athletes, 334,000 from coaches and other attendees, and nearly 16,000 from group meeting attendees, for a total of 438,000. Out of state visitor days total 277,000 in a stabilized year, and NNOSV total 183,000. During sports events, overnight stays by NNOSV in the RTZ are estimated at 78 percent of visitors, using the Applicants estimate. Day visitors are 22 percent of visitors, comprised of day visitors from outside the RTZ (11 percent) and RTZ residents (11 percent).
RTZ Tax Increment with Sports Events Center

Total visitor days are used to calculate the tax increment in the RTZ with the Sports Events Center in Table 25, while only the NNOSV are used in the eligible tax increment calculation. EPS has reproduced the Applicants calculation of the total increment in the RTZ, but with EPS adjusted event and visitation estimates. From 2014 through 2043, the facility is projected to bring 2.26 million visitor days from athletes, 8.7 million from coaches and other visitors, and 395,000 from group meetings. The percentage of overnight stays in the RTZ for all athletes is
47
64.8 percent, with day visitors from outside the RTZ comprising 18 percent of visitors. Similarly, 61.6 percent of all coaches and other attendees are assumed to stay overnight in the RTZ, and 19 percent would make a day trip. Group meetings are modeled with 90 percent of overnight stays in the RTZ. Applying daily spending of $72.67 per day for overnight visitors and $29.11 per day for day visitors results in $834.2 million in captured spending and $24.2 million in state sales tax over 30 years.
Eligible Tax Increment for Sports Events Center

The NNOSV from net new events are estimated to generate 142,700 visitor days from those who stay overnight, and 40,000 visitor days from day visitors, totaling 183,000 annual visitor days in a stabilized operating year, and 4.75 million of the 30 year time period. Overnight NNOSV are estimated to make 90 percent of their trip spending in the RTZ, and out of state destination day visitors are assumed to make 100 percent of their daily spending in the RTZ. The resulting spending in the RTZ totals $272.9 million over 30 years, with $7.9 million in state sales tax (before inflation). After applying 2.0 percent spending inflation, total sales tax is $11.3 million over 30 years, or 1.45 percent of the RTZ increment ($377,000 per year), as shown in Table 26.
Combined Tax Increment for Stadium and Sports Events Center

The total eligible tax increment for the combined Stadium and Sports Events Center Project is estimated at $15.4 million over 30 years, or 1.94 percent of the RTZ tax increment (Table 27). This is equivalent to $513,000 per year. It is calculated as the sum of the net new sales tax generated by the Stadium and Sports Events Center, divided by the natural growth of the tax base plus the total project tax increments from both project components.
48
Table 24 Sports Events Center Total and Net New Visitor Days, 2014-2043
Description
Factor
2014
Base Year
2015
2016
2017
2018
2019
2020
2043
2014-2043 Total
Total Visitor Days Athletes Coaches, Trainers, Spectators Symposia/Group Mtgs. Total Out of State Visitor Days Athletes Coaches, Trainers, Spectators Symposia/Group Mtgs. Total Net New Out of State Visitor Days Athletes Coaches, Trainers, Spectators Symposia/Group Mtgs. Total Overnight NNOSV Athletes Coaches, Trainers, Spectators Symposia/Group Mtgs. Total Day NNOSV Athletes Coaches, Trainers, Spectators Symposia/Group Mtgs. Total
H:\ 133023-Colorado Regional Tourism\ Models\ [ 133023-Program 11-18-2013.xlsx] 7-CSEC NNOSV
0 0 0 0
0 0 0 0
0 0 0 0
24,715 125,795 1,064 151,573
53,069 276,318 4,876 334,264
72,334 298,658 6,383 377,375
87,968 333,923 15,958 437,849
87,968 333,923 15,958 437,849
2,261,343 8,714,932 395,310 11,371,586
64.8% 61.6% 90.2%
0 0 0 0
0 0 0 0
0 0 0 0
16,024 77,496 960 94,480
34,408 170,227 4,399 209,034
46,898 183,989 5,759 236,647
57,034 205,715 14,398 277,147
57,034 205,715 14,398 277,147
1,466,155 5,368,870 356,658 7,191,683
65.1% 67.4% 50.0%
0 0 0 0
0 0 0 0
0 0 0 0
10,435 52,240 480 63,155
22,406 114,750 2,200 139,355
30,540 124,027 2,880 157,446
37,140 138,672 7,199 183,011
37,140 138,672 7,199 183,011
954,751 3,619,143 178,329 4,752,223
78.0% 78.0% 78.0%
0 0 0 0
0 0 0 0
0 0 0 0
8,139 40,747 374 49,261
17,477 89,505 1,716 108,697
23,821 96,741 2,246 122,808
28,970 108,164 5,615 142,749
28,970 108,164 5,615 142,749
744,706 2,822,932 139,097 3,706,734
22% 22% 22%
0 0 0 0
0 0 0 0
0 0 0 0
2,296 11,493 106 13,894
4,929 25,245 484 30,658
6,719 27,286 633 34,638
8,171 30,508 1,584 40,262
8,171 30,508 1,584 40,262
210,045 796,211 39,232 1,045,489
49
Table 25 RTZ Increment with Sports Events Center
Description
Factor
2014
Base Year
2015
2016
2017
2018
2019
2020
2043
2014-2043 Total
Athlete Visitor Days Total Athlete Visitor Days Overnight Visitors, Staying in RTZ Day Visitor Days to RTZ Visitors from RTZ (Residents, not included) Coaches, Train., Spect. Visitor Days Total Visitor Days Overnight Visitors, Staying in RTZ Day Visitor Days to RTZ Visitors from RTZ (Residents, not included) Symposia/Group Mtgs. Total Visitor Days Overnight Visitors, Staying in RTZ Day Visitor Days to RTZ Visitors from RTZ (Residents, not included) Spending Potential ($000s) [1] Overnight Visitors, Staying in RTZ Day Visitor Days to RTZ Total State Sales Tax Increment
64.8% 18% 18%
0 0 0 0
0 0 0 0
0 0 0 0
24,715 16,024 4,345 4,345
53,069 34,408 9,331 9,331
72,334 46,898 12,718 12,718
87,968 57,034 15,467 15,467
87,968 57,034 15,467 15,467
2,261,343 1,466,155 397,594 397,594
61.6% 19.2% 19.2%
0 0 0 0
0 0 0 0
0 0 0 0
125,795 77,496 24,149 24,149
276,318 170,227 53,046 53,046
298,658 183,989 57,334 57,334
333,923 205,715 64,104 64,104
333,923 205,715 64,104 64,104
8,714,932 5,368,870 1,673,031 1,673,031
90% 5% 5%
0 0 0 0
0 0 0 0
0 0 0 0
1,064 957 53 53
4,876 4,388 244 244
6,383 5,745 319 319
15,958 14,362 798 798
15,958 14,362 798 798
395,310 355,779 19,766 19,766
$72.67 $29.11 2.9%
$0 $0 $0 $0
$0 $0 $0 $0
$0 $0 $0 $0
$7,432 $900 $8,331 $242
$16,771 $2,013 $18,783 $545
$19,366 $2,307 $21,673 $629
$23,132 $2,687 $25,819 $749
$36,477 $4,238 $40,715 $1,181
$747,282 $86,978 $834,260 $24,194
Project Sales Tax Increment Natural Sales Tax Increment RTZ Increment with Events Facility Project ($000s)
[1] Includes 2.0% annual inflation Source: Economic & Planning Systems
H:\ 133023-Colorado Regional Tourism\ Models\ [ 133023-Pr ogram 11- 18-2013.xlsx] 6-CSEC Incr ement
$0 $0 $0
$0 $1,503 $1,503
$0 $3,028 $3,028
$242 $4,576 $4,818
$545 $6,148 $6,692
$629 $7,743 $8,371
$749 $9,361 $10,110
$1,181 $54,097 $55,278
$24,194 $755,247 $779,441
50
Table 26 Sports Events Center Eligible Tax Increment
Description
Factor
2014
Base Year
2015
2016
2017
2018
2019
2020
2043
2014-2043 Total
NNOSV Overnight Day Total Spending Potential ($000s, 2013$) Overnight Day Total Spending Captured in RTZ ($000s of 2013$) Overnight Day Total State Sales Tax from NNOSV Eligible Tax Increment ($000s, Inflated)
0 0 0
0 0 0
0 0 0
49,261 13,894 63,155
108,697 30,658 139,355
122,808 34,638 157,446
142,749 40,262 183,011
142,749 40,262 183,011
3,706,734 1,045,489 4,752,223
$72.67 $29.11
$0 $0 $0
$0 $0 $0
$0 $0 $0
$3,580 $404 $3,984
$7,899 $892 $8,792
$8,924 $1,008 $9,933
$10,374 $1,172 $11,546
$10,374 $1,172 $11,546
$269,368 $30,435 $299,804
90% 100% 2.9% 2.0%
$0 $0 $0 $0.0 $0.0
$0 $0 $0 $0.0 $0.0
$0 $0 $0 $0.0 $0.0
$3,222 $404 $3,626 $105.2 $113.8
$7,109 $892 $8,002 $232.0 $256.2
$8,032 $1,008 $9,040 $262.2 $295.2
$9,336 $1,172 $10,508 $304.7 $350.1
$9,336 $1,172 $10,508 $304.7 $552.0
$242,432 $30,435 $272,867 $7,913.1 $11,314.5
RTZ Sales Tax Increment ($000s) Eligible Tax Increment ($000s) % of RTZ Revenue
H:\ 133023- Colorado Regional Tourism\ Models\ [ 133023- Pr ogram 11-18- 2013.xlsx] 8- CSEC NNST
$0.0 $1,502.7 $3,028.0 $4,817.8 $6,692.3 $8,371.0 $10,110.2 $55,277.6 $0.0 $0.0 $0.0 $113.8 $256.2 $295.2 $350.1 $552.0 0.00% 0.00% 0.00% 2.36% 3.83% 3.53% 3.46% 1.00%
$779,440.8 $11,314.5 1.45%
51
Table 27 Downtown Stadium and Colorado Sports Events Center Eligible Tax Increment (Combined)
Description
2014
Base Year
2015
2016
2017
2018
2019
2020
(Stabilization)
2043
2014-2043 Total
Net New Sales Tax Stadium Net New Sales Tax Sports Events Center Net New Sales Tax Total Net New Sales Tax
$0.0 $0.0 $0.0
$0.0 $0.0 $0.0
$0.0 $0.0 $0.0
$78.0 $113.8 $191.8
$97.3 $256.2 $353.5
$117.2 $295.2 $412.5
$123.7 $350.1 $473.7
$195.0 $552.0 $747.0
$4,055.2 $11,314.5 $15,369.7
RTZ Sales Tax Increment with Stadium and CSEC ($000s) Eligible Tax Increment ($000s) % of RTZ Revenue
H:\ 133023-Color ado Regional Tour ism\ Models\ [ 133023-Progr am 11-18- 2013.xlsx] 6-St adium CSEC NNST
$0.0 $0.0 0.00%
$1,502.7 $0.0 0.00%
$3,028.0 $0.0 0.00%
$5,079.7 $191.8 3.78%
$7,018.8 $353.5 5.04%
$8,764.7 $412.5 4.71%
$10,525.4 $473.7 4.50%
$55,932.4 $747.0 1.34%
$793,055.9 $15,369.7 1.94%
52
UCCS Sports Medicine Center

The Applicant estimates that the 72,000 square foot Sports Medicine Center will serve 40,000 patients annually within 5 years of opening. The basis for this estimate comes from the list of patients provided by the RFI respondents; one respondent clinic is reported to have at least 20,000 existing unique patients; and a list of comparable facilities. The Sports Medicine Center at Jefferson University Hospital in Philadelphia was cited as the most comparable facility, and serves 35,000 patients each year. The University of Pittsburgh Medical Center (UPMC) Center for Sports Medicine Concussion Center serves 25,000 annual patients out of a much smaller facility. The Applicant has only provided limited information on the medical tourism market in Colorado, or on the potential market share for this facility. The operations, capacities, and sizes of the comparables, and the proposed Sports Medicine Center are also only described in a summary manner, making it difficult to understand the economics of these centers, and how comparable they are. The 40,000 estimated patients at stabilization are higher than the most comparable, the Sports Medicine Center at Jefferson University located in a much larger metro area on the Eastern Seaboard. It is also located as part of a hospital and conducts orthopedic surgeries as a significant component of its services. The comparable utilization figures presented are also confusing as in some cases patient visits are used interchangeably with discrete patients. The facility is estimated to have the capacity to serve 40,000 annual patient visits, as estimated by EPS from the number of exam rooms in Table 28. With 40,000 annual patients, the exam rooms would be operating at approximately 90 percent capacity which is high and potentially above functional capacity. The facility will presumably be able to serve patients in other settings, such as training rooms or physical therapy space which are not included in the figures below, suggesting that actual utilization of exam rooms would be lower.
Table 28 UCCS Sports Medicine Clinic Space Utilization
Description
2016
2017
2018
2019
2020
Annual Patients Weekly Patients Daily Patients Exam Rooms Sessions per week Sessions per year
50 w eeks 5
12,500 250 50 21 840 42,000 30%
25,000 500 100 21 840 42,000 60%
30,000 600 120 21 840 42,000 71%
35,000 700 140 21 840 42,000 83%
40,000 800 160 21 840 42,000 95%
40 50
Estimated Clinic Capacity

1
Assumes 8 45-minute sessions per day.

H:\ 133023- Colorado Regional Tour ism\ Models\ [ 133023-Program 11-18-2013.xlsx] UCCS Ut ilizat ion
Lacking a more detailed market and feasibility study, and more information from potential project partners in the proposed facility, EPS used the estimate of 40,000 patients at stabilization as an optimistic but potentially achievable goal. There could be synergies between the USOC and
53
University Hospital that will attract patients. If nationally recognized practitioners are also attracted to the facility, it will also help increase the number of patients served. As described, the proposed facility will have the potential to be a National Center of Excellence for sports medicine, and for serving disabled or wounded active duty military personnel, veterans and athletes. However, it is unreasonable to assume that the associated patients and visitors would be completely new to the State. There are already several highly ranked orthopedic, spinal, and other rehabilitation clinics in the State including the Steadman Clinic in Vail, and Craig Hospital in Denver. There are also numerous sports medicine practitioners and physical therapists throughout the State. We have applied a conservative deduction of 25 percent to account for some amount of cannibalization, recognizing that the facility as described has the potential to attract a large share of destination visitors to the State. Additional rationale is provided in Table 29.
Table 29 Sports Medicine Center Net New Adjustment
Criteria
UCCS Sports Medicine and Performance Center Comments
Adjustment
Initial Total Uniqueness and Competition - CO has several nationally recognized orthopaedic, and spinal/brain injury clinics - Patients transferring to facility are assumed to be largely from Colorado and do not affect out of state visitor estimates. - Will be primary destination for out of state patients. Assumed to be a nationally recognized practice. - CO has several nationally recognized orthopaedic, and spinal/brain injury clinics - No adjustment
100% -25%
0%
0%
0%
75.0% 30.0% 22.5%
Applicant's Net New Factor Percent Out of State Applicant's Total Adjustment
H:\ 133023- Color ado Regional Tour ism\ Models\ [ 133023- Progr am 11- 18- 2013.xlsx] UCCS Net New
100% 30% 30.0%
54
RTZ Tax Increment with Sports Medicine Center

The Applicants calculation of the RTZ tax increment with the Sports Medicine Center is shown in Table 30. The facility is estimate to reach a stabilized patient load in 2020 at 40,000 annual patients. Thirty percent of patients are estimated to be from outside Colorado. The out of state patients bring an additional 1.2 family members or friends, and stay an average of 6.5 days. Medical visit stays to these types of facilities are typically longer than pleasure trips. Craig Hospital reports that many patients stay for several days and even weeks for extensive rehabilitation and therapy, sometimes more than once in a year. The 12,000 out of state patients and their guests support 171,600 annual visitor days at stabilization. In state patients comprise 61,600 visitor days, with half assumed conservatively to be day visitors and half assumed to be residents of Colorado Springs. Applying $72.67 per day to overnight stays and $29.11 to day visitors yields $504.8 million in spending potential. Not all spending will occur in the RTZ, as some out of state patients are likely to arrive via Denver International Airport, although the spending capture for medical visitors is conceivably higher than for general tourists. Medical visitors are more likely to remain near the treatment facility. An 90 percent spending capture rate was applied by EPS (100 percent by the Applicant), resulting in $665.9 million in captured spending from overnight visitors, and $19.3 million in State sales tax. A 2.0 percent inflation assumption is included in these calculations. The total sales tax increment in the RTZ resulting from the Sports Medicine Center is $774.6 million.
Sports Medicine Center Eligible Tax Increment

With 30 percent of visitors from outside Colorado, there are an estimated 171,600 out of state visitor days in 2020, totaling 4.56 million over 30 years (Table 31). Applying the 75 percent net new adjustment results in 128,700 annual NNOSV. With daily spending of $72.67 per day and 90 percent of spending captured in the RTZ, $223.6 million in net new spending are captured in the RTZ. After applying a 2.0 percent spending inflation factor, the project is estimated to generate $9.2 million in net new sales tax over 30 years, or 1.19 percent of the RTZ increment ($307,000 per year).
55
Table 30 RTZ Tax Increment with UCCS Sports Medicine Center

2014-2043 Total
Description
Factor
2014
Base Year
2015
2016
2017
2018
2019
2020
2021
2043
Annual SMPC Patients

Out of State Patients Accompanying Family/Friends Out of State Patients Total Visitor Days (OSV) In State Patients Accompanying Family/Friends Total In State Visitors Day Visitor Days to RTZ Visitors (Residents) from RTZ Visitor Spending Potential ($000s) [1] OSV, Stay in RTZ (per trip) Day Visitors to RTZ Spending Potential Visitor Spending in RTZ OSV, Stay in RTZ (per trip) Day Visitors to RTZ Spending Captured in RTZ State Sales Tax Increment
30% 1.20 6.50 70% 1.20 50.0% 50.0%
0
0 0 0 0 0 0 0 0 0
0
0 0 0 0 0 0 0 0 0
12,500
3,750 4,500 8,250 53,625 8,750 10,500 19,250 9,625 9,625
25,000
7,500 9,000 16,500 107,250 17,500 21,000 38,500 19,250 19,250
30,000
9,000 10,800 19,800 128,700 21,000 25,200 46,200 23,100 23,100
35,000
10,500 12,600 23,100 150,150 24,500 29,400 53,900 26,950 26,950
40,000
12,000 14,400 26,400 171,600 28,000 33,600 61,600 30,800 30,800
40,000
12,000 14,400 26,400 171,600 28,000 33,600 61,600 30,800 30,800
40,000
12,000 14,400 26,400 171,600 28,000 33,600 61,600 30,800 30,800
1,062,500
318,750 382,500 701,250 4,558,125 743,750 892,500 1,636,250 818,125 818,125
$72.67/day $29.11/day
$0 $0 $0
$0 $0 $0
$4,135 $297 $4,433
$8,436 $607 $9,043
$10,326 $742 $11,068
$12,288 $883 $13,171
$14,324 $1,030 $15,354
$14,611 $1,050 $15,661
$22,588 $1,624 $24,212
$470,958 $33,861 $504,819
90% 100% 2.9%
$0 $0 $0 $0.0
$0 $0 $0 $0.0
$3,950 $316 $4,265 $123.7
$8,219 $657 $8,875 $257.4
$10,261 $820 $11,080 $321.3
$12,454 $995 $13,449 $390.0
$14,809 $1,183 $15,992 $463.8
$15,407 $1,231 $16,638 $482.5
$36,824 $2,942 $39,765 $1,153.2
$616,628 $49,261 $665,889 $19,310.8
Project Sales Tax Increment Natural Sales Tax Increment RTZ Increment with Sports Med. Project ($000s)
[1] All spending figures include 2.0% annual inflation Source: Economic & Planning Systems
C:\ Users\ EET\ Deskt op\ Brian\ [ 133023-Pr ogr am 11-18-2013.xlsx] 9-UCCS Increment
$0.0 $0.0 $0.0
$0.0 $1,502.7 $1,502.7
$123.7 $3,028.0 $3,151.7
$257.4 $4,576.2 $4,833.6
$321.3 $6,147.6 $6,468.9
$390.0 $7,742.5 $8,132.6
$463.8 $9,361.4 $9,825.2
$482.5 $11,004.6 $11,487.1
$1,153.2 $54,096.8 $55,250.0
$19,310.8 $755,247.2 $774,558.0
56
Table 31 Eligible Tax Increment for UCCS Sports Medicine Center
Description
Factor
2014
Base Year
2015
2016
2017
(Stabilization)
2018
2019
2020
2043
2014-2043 Total
Out of State Visitors NNOSV
75%
0 0
0 0
53,625 40,219
107,250 80,438
128,700 96,525
150,150 112,613
171,600 128,700
171,600 128,700
4,558,125 3,418,594
Visitor Spending ($000s of 2013$) NNOSV Trip Spending Spending Captured in RTZ Sales Tax from NNOSV Eligible Tax Increment: NNOSV Spending in RTZ ($000s, Inflated)
$72.67/day 90% 2.9%
$0.0 $0.0 $0.0
$0.0 $0.0 $0.0
$2,922.7 $2,630.4 $76.3
$5,845.4 $5,260.9 $152.6
$7,014.5 $6,313.0 $183.1
$8,183.6 $7,365.2 $213.6
$9,352.6 $8,417.4 $244.1
$9,352.6 $8,417.4 $244.1
$248,429.2 $223,586.3 $6,484.0
2.0%
$0.0
$0.0
$81.0
$165.1
$202.1
$240.5
$280.4
$442.2
$9,219.0
Source: City of Colorado Springs
C:\ Users\ EET\ Deskt op\ Brian\ [ 133023-Program 11-18-2013.xlsx] 10-UCCS NNST
$0.0 $0.0 0.00%
$1,502.7 $0.0 0.00%
$3,151.7 $81.0 2.57%
$4,833.6 $165.1 3.42%
$6,468.9 $202.1 3.12%
$8,132.6 $240.5 2.96%
$9,825.2 $280.4 2.85%
$55,250.0 $442.2 0.80%
$774,558.0 $9,219.0 1.19%
57
USAFA Visitor Center

According to the Application, the USAFA campus attracted 700,000 annual visitors before September 11, 2001. Due to the increase in security (armed guards, gates, signs, etc.), average annual attendance is reported to have dropped to 200,000 immediately after 9/11. It is reported that visitation levels have recovered to 794,000 per year, with 441,000 visitors to the existing Visitor Center. In the Application, the Applicant estimates that the new Visitor Center would draw 800,000 annual visitors to the Visitor Center, estimated to be in addition to visitors to the Academy. This increase in visitation is assumed to occur as a result of relocating the Visitor Center outside the security gate to a site adjacent to Falcon Stadium with better visibility and access from I-25. EPS requested additional information on the makeup of these 700,000 visitors, and the projected 800,000 visitors, and for additional rationale on why moving a Visitor Center would result in nearly doubling annual visitation. It was unclear how many visitors were unique to the Visitor Center and how many were passing through it as part of a trip to the Academy Campus. The Academy has numerous Division 1 sports teams and events, youth sports camps, and other Academy events such as parents weekend and graduation ceremonies. It would seem logical that some of the attendees to these events would see the existing Visitor Center as part of that visit and that there would be significant overlap or redundancy between Visitor Center visitor counts and overall Academy Visitor counts. The Applicant worked with the Academy to summarize visitor and attendance figures and provided these in the Supplemental Information. The Applicants figures suggest that there are 794,000 total visitors to the Academy (Table 32), including 441,000 to the existing Visitor Center, 300,000 to Athletic Events, and 53,000 to other events. The new Visitor Center is estimated by the Applicant to draw 800,000 visitors, and there is also growth assumed in the other events resulting in 1.2 million annual visitors. The Applicant has estimated that only 10 percent of the visitors to the Visitor Center overlap with other events held at the Academy.
Table 32 Applicants USAF Academy Visitor Estimates
Annual Visitors
Existing Total OSV

25.0%
New Visitors Center Total OSV

31.6%
Change Total OSV
Visitors Center Athletic Event Spectators Youth Camps Other (Graduation, Parents Weekend, Etc.) Total
Source: US Air Force Academy, City of Colorado Springs
441,000 300,000 3,100 50,000 794,100
110,250 75,000 775 N/A 186,025
800,000 330,000 6,200 50,000 1,186,200
252,800 104,280 1,959 N/A 359,039
359,000 30,000 3,100 0 392,100
142,550 29,280 1,184 0 173,014
\ \ epsdc02\ Proj\ 133023- Colorado Regional Tourism\ Dat a\ [ USAFA Revised.xlsx] Sheet 1
58
Through additional verbal and email communications with the Applicants project team, it is apparent to EPS that the Academy and the Applicant have not been able to determine a reasonable estimate of visitor overlap between the Visitor Center and the other events. EPS believes that the vast majority of Visitors Center visitors are people who are at the Academy already for the array of other events offered throughout the year. EPS maintains the position that a Visitor Center, even one with unique architecture and programming, is not a unique economic attraction but an ancillary facility to a larger set of attractions or experiences. In addition, the Applicant has not provided a compelling argument or analysis to justify the estimate of 800,000 visitors to the Visitors Center assumed to occur by building a new, albeit more attractive, facility with a better location.
Adjusted Visitation and Spending

EPS estimates that relocating the Visitor Center could result in a 25 percent increase in visitors to the Academy and Visitor Center. In EPS judgment there is a large amount of overlap between Academy Visitors and Visitor Center visitors. We have further assumed that only 75 percent of the increase in visitation to the Academy resulting from the new Visitor Center is net new to Colorado (Table 33). The estimated 25 percent increase in total Academy Visitors results in 573,750 total visitors by 2019 (Table 34). The percentage of out of state visitors grows to 31.6 percent by 2018, as shown. Mathematically, if the percentage of out of state visitors were to increase to 31.6 percent in 2017, it would require a decrease in in-state visitors when the total number of visitors is held constant which is not a logical scenario. From 2019 on, there are estimated to be 66,555 new out of state visitors to the Academy, and 16,639 annual NNOSV.
59
Table 33 USAFA Visitor Center Net New Out of State Visitors
Criteria
USAF Academy Visitors Center Comments
Adjustment
Initial Total Uniqueness and Competition - Only Military visitors center in Colorado - May offer attractions and events unique to Colorado N/A
100% 0%
0%
- A Visitor Center is an amenitiy to a broader set of attractions or experiences. - Numerous athletic events and youth sports camps throughout the year are the primary visitation drivers. - Applicant has not provided any information on how sporting and other events relates to Visitors Center visitors. - Adjustment made due to absence of reliable economic and market data in Application justifying visitor estiamtes.
-75%
No adjustment.
0%

H:\ 133023- Color ado Regional Tour ism\ Models\ [ 133023-Progr am 11- 18- 2013.xlsx] USAF Net New
25.0% 36.0% 9.0%
60
RTZ Tax Increment with USAFA Visitor Center

EPS does not agree with the Applicants analysis which states that new visitors will make an additional overnight stay in Colorado to see the new Visitor Center. Our analysis is based on new day visitors spending $29.11 per day, and spending half of that within the Colorado Springs RTZ. This attraction is not located in the core commercial areas of Colorado Springs, and will rely on drive by traffic to support some of its visitation. Many visitors are likely in our judgment to be en-route to another destination, and will therefore make only a portion of their daily expenditures within the RTZ. In calculating the total tax increment in the RTZ, EPS assumes that all of the new visitors to the Academy are day visitors, largely attract to the Visitor Center. There is not a strong nexus between developing a new Visitor Center and increasing attendance to other events and functions on the Academy Campus in EPS judgment and in consideration of the Application and Supplemental Material. These spending assumptions result in $124.7 million in spending potential from Day Visitors to the Academy (Table 34). With half of daily expenditures captured in the Zone, $62.3 million in new taxable sales are generated, which supports $1.8 million in State sales tax, including 2.0 percent spending growth. The total sales tax increment in the RTZ is $757.05 million.
USAFA Visitor Center Eligible Tax Increment

The project is estimated to attract 432,000 NNOSV over the 2014 through 2043 time period. With $29 per day spent by day visitors, and 50 percent of spending captured in the RTZ, $6.3 million in net new spending is captured in the RTZ. This supports a total of $260,900 in State Sales tax over the 30 year financing period, or 0.03 percent of the RTZ increment.
61
Table 34 RTZ Tax Increment with USAFA Project
Description
Factor
2014
Base Year
2015
2016
2017
2018
2019
2020
2043
2014-2043 Total
Existing USAFA Visitors Out of State - Existing In-State - Existing
25% 75%
441,000 110,250 330,750
450,000 112,500 337,500
459,000 114,750 344,250
0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
1,350,000 337,500 1,012,500
Visitors to USAFA with New Visitor Center New Visitors (in and out of State) % Out of State Visitors Out of State Visitors New Out of State Visitors % In-State Visitors In-State Visitors New In-State Visitors NNOSV
25% increase
0 0
0 0
0 0
500,000 41,000 27.0% 135,000 20,250 73% 365,000 20,750 5,063
550,000 91,000 29.0% 159,500 44,750 71% 390,500 46,250 11,188
573,750 114,750 31.6% 181,305 66,555 68% 392,445 48,195 16,639
573,750 114,750 31.6% 181,305 66,555 68% 392,445 48,195 16,639
573,750 114,750 31.6% 181,305 66,555 68% 392,445 48,195 16,639
15,393,750 3,000,750
31.6%
0 0
0 0
0 0
4,827,125 1,728,875
68% 68% 25%
0 0 0
0 0 0
0 0 0
10,566,625 1,271,875 432,219
C:\ Users\ EET\ Deskt op\ Brian\ [ 133023-Program 11-18-2013.xlsx] 6-USAFA Visit ors
62
Table 35 USAFA Net New Out of State Visitors
Description
Factor
2014
Base Year
2015
2016
2017
2018
2019
2020
2043
2014-2043 Total
USAFA Visitors New Visitors (in and out of State) Overnight Visitors Day Visitors USAFA Visitors Spending Potential ($000s) [1] Day Visitors to RTZ Spending Captured in RTZ ($000s) Day Visitors to RTZ State Sales Tax Increment
0% 100%
0 0 0
0 0 0
0 0 0
41,000 0 41,000
91,000 0 91,000
114,750 0 114,750
114,750 0 114,750
114,750 0 114,750
3,000,750 0 3,000,750
$29.11/day
$0.0
$0.0
$0.0
$1,291.9
$2,924.8
$3,761.9
$3,837.2
$6,050.9
$124,713.0
50% 2.9%
$0.0 $0.0
$0.0 $0.0
$0.0 $0.0
$646.0 $18.7
$1,462.4 $42.4
$1,881.0 $54.5
$1,918.6 $55.6
$3,025.4 $87.7
$62,356.5 $1,808.3
Project Sales Tax Increment Natural Sales Tax Increment RTZ Increment with USAFA ($000s)
[1] Includes 2.0% annual inflation Source: Economic & Planning Systems
C:\ User s\ EET\ Deskt op\ Brian\ [ 133023-Progr am 11- 18-2013.xlsx] 7- USAFA Increment
$0.0 $0.0 $0.0
$0.0 $1,502.7 $1,502.7
$0.0 $3,028.0 $3,028.0
$18.7 $4,576.2 $4,594.9
$42.4 $6,147.6 $6,190.0
$54.5 $7,742.5 $7,797.1
$55.6 $9,361.4 $9,417.1
$87.7 $54,096.8 $54,184.6
$1,808.3 $755,247.2 $757,055.5
63
Table 36 USAFA Eligible Tax Increment
Description
Factor
2014
Base Year
2015
2016
2017
(Stabilization)
2018
2019
2020
2043
2014-2043 Total
NNOSV
5,063
11,188
16,639
16,639
16,639
432,219
Visitor Spending ($000s of 2013$) NNOSV Trip Spending Spending Captured in RTZ Sales Tax from NNOSV Eligible Tax Increment: NNOSV Spending in RTZ ($000s, Inflated)
$29.11/day 50% 2.9%
$0.0 $0.0 $0.0
$0.0 $0.0 $0.0
$0.0 $0.0 $0.0
$147.4 $73.7 $2.1
$325.7 $162.8 $4.7
$484.4 $242.2 $7.0
$484.4 $242.2 $7.0
$484.4 $242.2 $7.0
$12,582.4 $6,291.2 $182.4
2.0%
$0.0
$0.0
$0.0
$2.3
$5.2
$7.9
$8.1
$12.7
$260.9
C:\ Users\ EET\ Deskt op\ Br ian\ [ 133023-Pr ogram 11- 18-2013.xlsx] 8-USAFA NNST
$0.0 $0.0 0.00%
$1,502.7 $0.0 0.00%
$3,028.0 $0.0 0.00%
$4,594.9 $2.3 0.05%
$6,190.0 $5.2 0.08%
$7,797.1 $7.9 0.10%
$9,417.1 $8.1 0.09%
$54,184.6 $12.7 0.02%
$757,055.5 $260.9 0.03%
64
Total Tax Increment, All Projects

The analysis presented above calculates the percentage of the tax increment each project component could receive if severed from the Application containing four projects. In Tables 37 and 38, EPS combines the visitor, spending, and net new sales tax estimates from each project component to estimate the percentage of sales tax revenues that the total City for Champions Project would be eligible to receive with all four project components. The four projects would draw 1.8 million annual visitors to the Colorado Springs area, from inside and outside Colorado. The number of NNOSV in a stabilized year totals 355,700, or 19.7 percent of the total incorporating all of the estimates and assumptions presented previously. Over 30 years, there would be 9.3 million NNOSV to the Colorado Springs Area (Table 37). The total tax increment in the RTZ with all projects is calculated to be $866.8 million, which is the sum of each projects tax increment in the RTZ from out of state spending and spending from in-state but outside the RTZ, plus the natural growth of the sales tax base. Carrying forward the daily spending and spending capture assumptions results in a total of $53.1 million in net new State sales tax, or 6.13 percent of the State sales tax increment (Table 38).
65
Table 37 Total Estimated Visitors, All C4C Projects
Description
2014
Base Year
2015
2016
2017
(Stabilization)
2018
2019
2020
2043
2014-2043 Total
Total Visitors U.S. Olympic Museum Stadium and Sports Events Center Downtown Stadium Colorado Sports Events Center Subtotal UCCS Sports Medicine Center USAFA Visitors Center (New) Total NNOSV U.S. Olympic Museum Stadium and Sports Events Center Downtown Stadium Colorado Sports Events Center Subtotal UCCS Sports Medicine Center USAFA Visitors Center Total NNOSV Percentage U.S. Olympic Museum Stadium and Sports Events Center Colorado Sports Events Center UCCS Sports Medicine Center USAFA Visitors Center Total
0 0 0 0 0 0 0
0 0 0 0 0 0 0
71,500 0 0 0 72,875 0 144,375
200,000 450,000 151,573 601,573 145,750 41,000 988,323
300,000 550,000 334,264 884,264 174,900 91,000 1,450,164
350,000 650,000 377,375 1,027,375 204,050 114,750 1,696,175
350,000 672,271 437,849 1,110,120 233,200 114,750 1,808,070
350,000 672,271 437,849 1,110,120 233,200 114,750 1,808,070
9,321,500 17,784,504 11,371,586 29,156,090 6,194,375 3,000,750 47,672,715
0 0 0 0 0 0 0
0 0 0 0 0 0 0
21,450 0 0 0 0 0 21,450
60,000 34,200 63,155 97,355 0 5,063 162,417
90,000 41,800 139,355 181,155 0 11,188 282,343
105,000 49,400 157,446 206,846 0 16,639 328,485
105,000 51,093 183,011 234,104 0 16,639 355,742
105,000 51,093 183,011 234,104 0 16,639 355,742
2,796,450 1,351,622 4,752,223 6,103,846 0 432,219 9,332,514
0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
30.0% 0.0% 0.0% 0.0% 0.0% 14.9%
30.0% 7.6% 16.2% 0.0% 12.3% 16.4%
30.0% 7.6% 20.5% 0.0% 12.3% 19.5%
30.0% 7.6% 20.1% 0.0% 14.5% 19.4%
30.0% 7.6% 21.1% 0.0% 14.5% 19.7%
30.0% 7.6% 21.1% 0.0% 14.5% 19.7%
30.0% 7.6% 20.9% 0.0% 14.4% 19.6%
H:\ 133023- Color ado Regional Tourism\ Models\ [ 133023- Progr am 11- 18-2013.xlsx] 11- Tot al Visit ors
66
Table 38 Eligible Tax Increment, All C4C Projects
Description
2014
Base Year
2015
2016
2017
(Stabilization)
2018
2019
2020
2043
2014-2043 Total
RTZ Tax Increment with All Projects ($000s) Natural Sales Tax Increment U.S. Olympic Museum Colorado Sports Events Center Downtown Stadium Colorado Sports Events Center Subtotal UCCS Sports Medicine Center USAFA Visitors Center Total Sales Tax Increment Eligible (Net New) Tax Increment ($000s) U.S. Olympic Museum Stadium and Sports Events Center Downtown Stadium Colorado Sports Events Center Subtotal UCCS Sports Medicine Center USAFA Visitors Center Total Sales Tax Increment ($000s) Percentage Eligible For Combined Projects
H:\ 133023-Colorado Regional Tourism\ Models\ [ 133023-Program 11-18-2013.xlsx] 12-Tot al Increment
$0.0 0.0
$1,502.7 0.0
$3,028.0 301.9
$4,576.2 861.2
$6,147.6 1,317.7
$7,742.5 1,568.0
$9,361.4 1,599.4
$54,096.8 2,522.1
$755,247.2 52,705.9
$0.0 0.0 0.0 0.0 0.0 $0.0
$0.0 0.0 0.0 0.0 0.0 $1,502.7
$0.0 0.0 0.0 123.7 0.0 $3,453.6
$261.9 241.6 503.5 257.4 18.7 $6,217.1
$326.5 544.7 871.3 321.3 42.4 $8,700.3
$393.6 628.5 1,022.1 390.0 54.5 $10,777.3
$415.3 748.8 1,164.0 463.8 55.6 $12,644.3
$654.8 1,180.7 1,835.5 1,153.2 87.7 $59,695.4
$13,615.1 24,193.5 37,808.7 19,310.8 1,808.3 $866,880.9
$0.0
$0.0
$161.9
$461.9
$706.7
$841.0
$857.8
$1,352.7
$28,268.1
0.0 0.0 0.0 $0.0 $0.0 $0.0 0.00%
0.0 0.0 0.0 $0.0 $0.0 $0.0 0.00%
0.0 0.0 0.0 $81.0 $0.0 $242.8 7.03%
78.0 113.8 191.8 $165.1 $2.3 $821.2 13.21%
97.3 256.2 353.5 $202.1 $5.2 $1,267.5 14.57%
117.2 295.2 412.5 $240.5 $7.9 $1,501.9 13.94%
123.7 350.1 473.7 $280.4 $8.1 $1,620.0 12.81%
195.0 552.0 747.0 $442.2 $12.7 $2,554.6 4.28%
4,055.2 11,314.5 15,369.7 $9,219.0 $260.9 $53,117.6 6.13%
67
APPENDIX 3: REGIONAL TOURISM ZONE AREA
VENUE LOCATIONS
CITY FOR CHAMPIONS
83
g
25
24 24
C O LO R A D O SPRINGS
1 2
1 2 3 4
UNITED STATES OLYMPIC MUSEUM DOWNTOWN STADIUM AND EVENT CENTER SPORTS MEDICINE AND PERFORMANCE CENTER GATEWAY AT FALCON STADIUM VISITORS CENTER
g
25

Colorado Springs RTA Summary

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Colorado Springs RTA Summary

Uploaded by

Copyright:

Available Formats

ECONOMIC DEVELOPMENT COMMISSION (Commission) PROJECT SUMMARY REGIONAL TOURISM ACT (RTA) December 16, 2013 APPLICANT: City

APPENDIX 2: TPA TAX INCREMENT ANALYSIS

Colorado Springs RTA November 25, 2013

Table 3 Tax Increment Calculations

Third Party Analyst

$4,055,189 $26,412,751 $30,467,941 $13,657,773 $12,971,937 $125,145,248 14.2%

$4,055,203 $11,314,463 $15,369,667 $9,219,002 $260,870 $53,117,637 6.13%

N/A N/A N/A

$807,953,066 $28,268,098 3.50%

N/A N/A N/A N/A N/A N/A N/A N/A N/A

$768,862,346 $4,055,203 0.53% $779,440,751 $11,314,463 1.45% $793,055,887 $15,369,667 1.94%

N/A N/A N/A

$774,557,979 $9,219,002 1.19%

N/A N/A N/A

$757,055,549 $260,870 0.03%

Economic & Planning Systems, Inc.

Revised Final Report

TAX INCREMENT ANALYSIS

RTZ Base Sales Tax

Sales Tax Base ($000s) Natural Growth of Base ($000s)

Economic & Planning Systems, Inc.

Colorado Springs RTA November 25, 2013

U.S Olympic Museum

MSA Population (2010)

5,636,232 2,077,240 1,189,866 645,613 1,951,269 2,077,240

700,000 450,000 375,000 350,000 250,000 200,000

90% 69% 80% 82% 77% 70-80%

Source: Barrie Projects, Economic & Planning Systems, US Census

Economic & Planning Systems, Inc.

Revised Final Report

Colorado Springs RTA November 25, 2013

Economic & Planning Systems, Inc.

Revised Final Report

Colorado Springs RTA November 25, 2013

Denver Museum of Nature and Science

Denver Art Museum

Central City Opera House

American Colorado Mountaineering Center Chataqua

Economic & Planning Systems, Inc.

Revised Final Report

Colorado Springs RTA November 25, 2013

Net New Visitor Adjustment

Economic & Planning Systems, Inc.

Revised Final Report

Colorado Springs RTA November 25, 2013

Table 14 Olympic Museum Net New Adjustment

U.S. Olympic Museum Comments

Relocation of Existing Use within Colorado

Primary Destination / Reason for Trip

Ability to Capture Spending/Tourism Leakage from Colorado Residents

Net New Factor Percent out of State Total Adjustment

50.0% 60.0% 30.0%

USOC Museum Tax Increment in RTZ

Economic & Planning Systems, Inc.

Revised Final Report

Colorado Springs RTA November 25, 2013

Museum Net New Sales Tax Increment

Economic & Planning Systems, Inc.

Revised Final Report

Colorado Springs RTA November 25, 2013

Table 15 RTZ Tax Increment with Museum Project

100% 50% 50%

71,500 35,750 35,750

200,000 100,000 100,000