ShoWare Center

Economic Impact Analysis
City of Kent
November 2012

Presented to:

Prepared by:

with

Community Attributes tells data rich stories about communities that are important to decision-makers.

Principal: Chris Mefford Analysts: Mark Goodman Aaron Blumenthal Alexandra Hudson

Community Attributes Inc. 1402 Third Avenue, Suite 930 Seattle, Washington 98101 www.communityattributes.com

EXECUTIVE SUMMARY
Kent’s ShoWare Center opened for business in January 2009, with kick-off events including a grand opening party, immediately followed by the inaugural ShoWare Center Seattle Thunderbirds hockey season. Within its first few months, ShoWare Center bustled, having hosted a variety of concerts, sporting events and civic events. ShoWare Center’s opening came at a difficult time in the midst of mounting national and global economic problems. The City of Kent had committed to building ShoWare Center in July of 2007. Just five months after construction began, the world’s economy stumbled and the U.S. fell into the worst economic era since the Great Depression of the 1930s.

An Entertainment Magnet
Since that time, the economy has stabilized, and ShoWare Center has become a major local institution with a diverse offering of entertainment events and steady tenant draw in the Thunderbirds. ShoWare Center is now a regional magnet, attracting more than one million visitors to Kent for sports events, entertainment, conferences, civic events and more. Patrons come from across the region to attend events at Kent’s ShoWare Center and patron draw is characterized as follows:  More than half of ShoWare Center visitors (excluding Thunderbirds patrons) come from south King County and North Pierce County, with the highest concentration in and around the Kent (20%) and the Federal Way/Bonney Lake area (21%). Significant patron draw ranges from Seattle (south of the Montlake Cut; 11%), Tacoma (11%), and the Bellevue/Redmond area (8%). Patrons from beyond Kent’s borders are increasingly drawn to Kent for ShoWare Center events. From 2009 to 2011 the proportion of ShoWare Center patrons with residences in Kent fell from 19% to 12%. Meanwhile, in that same time period the proportion of Tacoma and Pierce County patrons grew from 16% to 25%. Thunderbirds season ticket-holders residences are concentrated in and around Kent, with the highest concentration located between Interstate 5 and Patron Draw. ShoWare's patrons come from all over the central Puget Sound region, Highway 167. whose residences are shown by the yellow dots The most highly attended events from 2009 to 2011 (2011 patrons). were Thunderbirds hockey and other sporting events.

Kent ShoWare Center Economic Impacts

November 2012

Page i

In 2011 Thunderbirds and other sporting events drew 164,000 patrons. The second largest draw was family entertainment with 62,000 patrons in 2011. Thunderbirds ticket holders attended events more frequently than non-Thunderbirds patrons. Among non-Thunderbirds patrons 72% stated they attended events 1 to 2 times a year. Since opening in 2009 more than 1,000,000 patrons have attended events at ShoWare Center.

Patron Spending Impacts
ShoWare Center patrons that attend events also spend recreation dollars in Kent. They go out for dinner, shop at local businesses and sometimes spend the night at local hotels. All told, ShoWare Center patrons spent an estimated $12.1 million in 2011 at local businesses. Dining was the most common form of spending for all patron types, with shopping and lodging less common. The following sections highlight spending patterns of ShoWare Center patrons surveyed during the summer of 2012. Dining  Intercept surveys suggest that roughly 60% of patrons (not including Thunderbirds patrons) dine out before or after events. Those that do spend roughly $40 on dining, not including spending at ShoWare Center. Thunderbirds patrons are even more likely to dine out before or after the event. Roughly 85% dine out before Thunderbirds events.
$ Millions $10.0 $8.0 $6.0 $4.0 $2.0 $0.0 Dining Shopping Lodging Entertainment $0.9 $0.6 $0.9 $9.7

$12.1 Million in Patron Spending Outside of ShoWare, 2011

Shopping and Lodging 

Shopping was found to be less common than dining, with an estimated 8% of nonShoWare patrons spent more than $12.1 million in 2011. Thunderbirds patrons shopping before or after events (the Thunderbirds patron survey did not include questions on shopping). Among those that spent money on shopping, they spent $35 per ShoWare Center related trip, on average, not including spending at ShoWare Center. Kent Station was the most commonly mentioned destination for shopping among survey respondents. Historic Downtown Kent and East Hill, although far less common among respondents, were also mentioned as shopping destinations. Spending on lodging and entertainment was rare among all types of survey respondents.

Kent ShoWare Center Economic Impacts

November 2012

Page ii

Full Economic Impact
The $12.1 million in patron spending provides revenues for Kent businesses. These revenues allow Kent businesses to buy supplies and services from other Kent and regional businesses, and pay wages and salaries for Kent workers. These wages allow employees to spend their hard earned money on local products and services. Incorporating these induced business and employee spending benefits raises the overall impact of ShoWare Center activity to $25.1 million in 2011 . The following findings provide details regarding spending by patrons both at and outside of events.  In 2011, visitors spent an estimated $12.1 million at dining and shopping businesses in Kent while attending ShoWare Center events (not including concessions sold at ShoWare Center), based on ShoWare Center patron surveys conducted in 2012. ShoWare Center and Thunderbirds ticket and concession sales added an additional $4.5 million in 2011, for a total direct local benefit of $16.6 million. Indirect and induced benefits, which reflect business to business spending and employee spending of personal income, are estimated to bring the total spending impact to $25.1 million in 2011.1

 

Municipal Revenues
The $25.1 million in spending generates critical tax revenues for the City of Kent, King County, Washington State and various municipal service jurisdictions. In terms of tax revenues reaped by the City of Kent, ShoWare Center related spending contributes more than $609,000 in tax revenues in the form of sales tax, admissions tax and lodging taxes. These revenue figures do not include property taxes supported by local businesses and the improvements and investments they have made to Kent buildings and establishments. The following sections detail findings regarding estimated fiscal impacts to the City of Kent:     ShoWare Center contributes a total of $609,700 in tax revenues to the City of Kent annually. Of this, $403,000 comes from patron spending at Thunderbirds games and ShoWare Center events, including dining and shopping during trips to ShoWare Center. The additional $206,700 includes tax revenues that come from indirect and induced impacts estimated and derived from economic models. These models capture business to business spending and the impacts from employee spending (same assumption of 75% of indirect and induced impacts captured locally).

The indirect and induced impacts assume 75% of all indirect and induced benefits are captured within Kent city limits. The actual number could be higher or lower than 75%, likely less than 100%, but likely fairly high within a range of 0 to 100% as well. Kent’s concentration of wholesale suppliers and distributors suggest a relatively higher number.
1

Kent ShoWare Center Economic Impacts

November 2012

Page iii

Blank.

Kent ShoWare Center Economic Impacts

November 2012

Page iv

CONTENTS
Executive Summary ............................................................................................................................... i Introduction .......................................................................................................................................... 1 Background and Purpose ................................................................................................................. 1 Methods............................................................................................................................................. 1 Organization of this Report ............................................................................................................. 2 Current Conditions ............................................................................................................................... 3 Revenues and Operations ................................................................................................................ 5 Event Segmentation and Attendance .............................................................................................. 8 Patron Origin and Draw ................................................................................................................ 12 Email and Intercept Survey Results .................................................................................................. 16 Intercept Results ............................................................................................................................. 17 Email Survey Results ...................................................................................................................... 22 Impact Analysis ................................................................................................................................... 27 Visitor Spending ............................................................................................................................. 28 Kent Fiscal Impacts ........................................................................................................................ 30 Direct, Indirect and Induced Benefits .......................................................................................... 33 Stakeholder Interviews ....................................................................................................................... 35 Impacts to Local Businesses .......................................................................................................... 35 Challenges and Opportunities ....................................................................................................... 36 Relationship to Kent and Place Making........................................................................................ 36 Appendix A. Patron Feedback for ShoWare Center Experience .................................................... 38 Appendix B. Stakeholder Interviews ................................................................................................. 46 Interview Responses ........................................................................................................................... 47

Kent ShoWare Center Economic Impacts

November 2012

Page v

Blank.

Kent ShoWare Center Economic Impacts

November 2012

Page vi

INTRODUCTION
Background and Purpose
Kent City leadership and stakeholders alike recognize that ShoWare Center contributes economic and fiscal benefits to the City. However, ancillary spending of ShoWare Center visitors is not currently captured by survey data and many in the business community feel that its economic impact is positive. As a publically managed and financed facility, the City is interested in long-term sustainability of the facility and supporting its independence as an enterprise fund, providing events and recreation to the public for a fee that makes the entity self-supporting. This report quantifies economic benefits associated with its activities. The study provides analytic foundation for City strategies related to ShoWare Center. The following report provides a detailed evaluation of ShoWare Center’s current conditions, spending impacts and direct fiscal impacts to the City of Kent. Both quantitative and qualitative findings are based on a series of surveys of ShoWare Center patrons in addition to interviews with local businesses impacted by ShoWare Center events.

Methods
The approach to this work leverages existing data from ShoWare Center, combined with primary data collection in the form of ShoWare Center attendee surveys and business interviews, along with impact modeling to tell a complete story of the economic impact of ShoWare Center. Survey research provides ancillary consumer spending data to describe visitor and business activity related to ShoWare Center. The surveys enhance perspectives on activity before, during and after ShoWare Center events and impacts on a variety of business types and locations. The business survey includes representatives from retail, restaurateurs and other businesses types and associations. The analysis draws from data compiled specifically for this analysis, including:  ShoWare Center event data and financial analysis obtained directly from ShoWare Center operator SMG.  Intercept Survey Data from two events held during the summer of 2012.  Email Survey Data obtained through an online survey distributed to 2012 ShoWare Center patrons and 2012 Thunderbirds season ticket holders.  Stakeholder interviews with key businesses throughout Kent’s Downtown, East Hill and industrial neighborhoods.  City of Kent adopted budgets for 2011 and 2012.

Kent ShoWare Center Economic Impacts

November 2012

Page 1

Organization of this Report
    Current Conditions. An overview of ShoWare Center's current operations, attendance and event segmentation. Survey Quantitative Results. A review of spending averages obtained through both survey types. Impact Analysis. A detailed analysis of ShoWare Center's economic impact in terms of direct spending and fiscal impact to the City of Kent. Patron and Stakeholder Feedback. A summary of qualitative survey results and key findings from interviews conducted with Kent area businesses impacted by ShoWare Center.

Kent ShoWare Center Economic Impacts

November 2012

Page 2

CURRENT CONDITIONS
Ground breaking for ShoWare Center took place in 2007 and the facility opened in January of 2009. ShoWare Center is owned by the City of Kent. In addition, the Special Events Center Public Facilities District oversees state sales tax revenues dedicated to servicing the debt on the construction of ShoWare Center. Public Facilities Districts (PFDs) are municipal corporations with independent taxing authority and are taxing districts under the State constitution. The event space and arena management, marketing and development firm SMG contracts with the City of Kent to operate ShoWare Center. SMG operates all aspects of the facility including booking, tickets sales, food and beverage, maintenance, finance and marketing. Food and Beverage is operated by Savor Catering, the food services division of SMG. SMG manages facilities across the nation and world, including several NFL, NBA and MLB facilities. ShoWare, the facility’s namesake and official sponsor, is a ticket sales and distribution company. Naming rights to the facility were secured for ten years by ShoWare for $3,000,000. Vision One, a ticketing/ecommerce company, is the parent company of ShoWare and a direct competitor of TicketMaster. Similar events to those held at ShoWare Center can be found at several facilities in the region including Tacoma Dome in Tacoma and Comcast Arena in Everett. Concerts held at ShoWare Center are typically the only regional stop on a tour. Exhibit 1 illustrates major venues with comparable facilities and competitive draw.

Kent ShoWare Center Economic Impacts

November 2012

Page 3

Exhibit 1. Major Competitive Venues, Puget Sound Region, 2012
Venue Year-Round ShoWare Center Comcast Arena Christian Faith Center Emerald Queen Casino Showbox at the Market Showbox SODO Paramount Theater Moore Theater KeyArena McCaw Hall WaMu Theater Benaroya Hall Snoqualmie Casino - Ballroom Tacoma Dome Tacoma Dome Theater Broadway Center, Tacoma Pantages Theater, Tacoma Summer Season White River Amphitheatre Puyallup Fair Gorge Amphitheatre Marymoor Park Woodland Park Zoo Snoqualmie Casino - Mountain View Plaza Tulalip Amphitheater Chateau St. Michelle Winery Location Kent, WA Everett, WA Federal Way, WA Fife, WA Seattle, WA Seattle, WA Seattle, WA Seattle, WA Seattle, WA Seattle, WA Seattle, WA Seattle, WA Snoqualmie, WA Tacoma, WA Tacoma, WA Tacoma, WA Tacoma, WA Auburn, WA Puyallup, WA Quincy, WA Redmond, WA Seattle, WA Snoqualmie, WA Tulalip, WA Woodinville, WA Max Capacity 6,300 10,000 5,000 2,000 1,200 1,500 2,800 1,400 15,500 3,000 7,000 2,500 1,500 22,500 7,000 1,200 1,200 20,000 10,800 22,000 5,000 3,700 2,000 2,400 4,300 Distance From ShoWare Center NA 46 miles 5 miles 10 miles 15 miles 15 miles 20 miles 18 miles 15 miles 15 miles 15 miles 17 miles 30 miles 17 miles 17 miles 19 miles 19 miles 15 miles 17 miles 150 miles 25 miles 25 miles 30 miles 54 miles 20 miles

Source: Community Attributes Inc., 2012.

Kent ShoWare Center Economic Impacts

November 2012

Page 4

Revenues and Operations
The following provides a brief synopsis of ShoWare Center revenues and income statements. Included are exhibits on overall operating income, profits/losses, operating costs and labor. In addition, the following section segments operating income and concession sales by event type. ShoWare Center has been operating at a deficit since its opening in 2009. Exhibit 2 provides a financial history of ShoWare Center, distinguishing between hockey related income and non-hockey related income. Total income in 2011 was $2,075,496 and total costs were $2,532,976, resulting in a net loss of $457,480. Exhibit 2. Financial History, ShoWare Center, 2009-2012
Hockey event income Advertising Club revenue Suite revenue Total hockey income Other income Total income Indirect/operating expenses Net proifit/(loss) 2009 Actual $ 418,336 583,568 171,574 203,787 1,377,265 774,492 2,151,757 2,602,213 $ (450,456) 2010 Actual $ 319,888 568,285 97,391 150,735 1,136,299 895,846 2,032,145 2,430,157 $ (398,012) 2011 Actual $ 368,932 565,720 93,221 120,642 1,148,515 926,981 2,075,496 2,532,976 $ (457,480)

Source: ShoWare Center, 2012.

Kent ShoWare Center Economic Impacts

November 2012

Page 5

Exhibit 3 provides a detailed summary of operating expenses for ShoWare Center from for 2009 through 2011. Salaries and wages make up the largest share of operating expenses. In 2012 salaries and wages totaled $1,154,432, representing 46% of all operating costs. Line items such as operations, repair and maintenance, and supplies made up a smaller portion of operating expenses all three years of operation. Exhibit 3. Operating Expenses Detail, ShoWare Center, 2009-2011
Operating Expenses Employee Salaries and Wages Benefits Less: Event Labor Allocations Net Employee Wages and Benefits Contracted Services General and Administrative Operations Repair & Maintenance Supplies Insurance Utilities Other SMG Management Fees Less: Expenses Allocated Total Operating Expenses FY 2009 Actual 1,473,104 221,155 (474,691) 1,219,568 227,366 257,766 69,898 42,019 53,926 75,653 411,615 244,404 2,602,215 FY 2010 Actual 1,336,101 241,588 (407,571) 1,170,118 145,405 215,632 53,894 60,951 37,131 70,725 428,278 248,023 2,430,157 FY 2011 Actual 1,371,056 279,898 (496,521) 1,154,432 150,925 248,992 58,873 70,654 48,870 71,513 478,617 250,099 2,532,975

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $

Source: ShoWare Center, 2012. Note: Event labor allocation refers to staffing costs attributable to specific events at ShoWare Center.

Kent ShoWare Center Economic Impacts

November 2012

Page 6

Employment associated with ShoWare Center includes two distinct groups, SMG employees and Thunderbirds employees. SMG employees that work directly at ShoWare Center are responsible for the overall operation of the facility. Thunderbirds employees are only associated with the hockey team and its operations in Kent. Exhibit 4 illustrates the total employment for each group. In 2011 SMG had 16 full-time employees and was responsible for 85,000 hours of part-time employment directly associated with events. During the same year the Thunderbirds had 16 full-time employees and employed 20 part-time employees each game night (Thunderbirds athletes are not included). Exhibit 4. Employment, Thunderbirds and ShoWare Center, 2011
Employee Type SMG Employees at ShoWare Center SMG Part Time Equivalent Thunderbirds Employees Thunderbird Part Time Equivalent Employees 16 85,000 Hours 16 20 Type FTE Part Time FTE Each game night

Source: ShoWare Center, 2012. Exhibit 5 provides a detail of employee labor costs directly associated with SMG and its operation of ShoWare Center. Event labor allocations represent staffing costs attributable to events and totaled $496,521 in 2011. Full time salaries and wages in 2011 totaled $1,154,432. Exhibit 5. Employment Expenditures, ShoWare Center, 2011
Expenditure Employee Salaries and Wages Benefits Less: Event Labor Allocations Net Employee Wages and Benefits Fiscal Year 2011 Actual $ 1,371,056 $ 279,898 $ (496,521) $ 1,154,432

Source: ShoWare Center, 2012.

Kent ShoWare Center Economic Impacts

November 2012

Page 7

Event Segmentation and Attendance
Exhibits 6 and 7 summarize overall patron attendance at ShoWare Center during 2011. Events are categorized by type along with overall attendance, total number of events and percentage of total events (some event days included multiple performances). Events taking place on a single day may consist of multiple performances. The Thunderbirds and Other Sporting Events category represented the largest share of patron visits during 2011 (50% of all patrons). Family Entertainment represented the next largest category (21%) with Graduation and Civic (15%), Concerts (10%) and Business/Trade Events (6%) responsible for the remainder of attendance. Business/Trade events represent banquets, trade shows, meetings and consumer/public shows. Total attendance in 2011 was 331,355 spread over 138 distinct events. Exhibit 6. Event Attendance, ShoWare Center, 2011
Event Category T-Birds and Other Sporting Events Family Entertainment Graduation and Civic Concerts Business/Trade Total Patrons 164,087 62,438 49,331 34,080 21,419 331,355 Events 60 5 12 12 49 138 Patrons per Event 2,735 12,488 4,111 2,840 437 2,401 Percentage of All Patrons 50% 19% 15% 10% 6% 100%

Source: ShoWare Center, 2012. Exhibit 7. Event Attendance, ShoWare Center, 2011

Source: ShoWare Center, 2012. Kent ShoWare Center Economic Impacts November 2012 Page 8

Exhibits 8 and 9 illustrate attendance trends from ShoWare Center’s opening in 2009 through 2011. The majority of attendance during this time period is attributable to Thunderbirds games and Other Sporting Events. Family Entertainment is the second largest attendance category. Both event categories experienced similar attendance patterns attendance declining from 2009 to 2010 and increasing from 2009 to 2012. The highest level attendance at ShoWare Center is typically during January of each year, the height of the Thunderbirds season. Exhibit 8. Total Event Attendance, ShoWare Center, 2009-2011

Source: ShoWare Center, 2012. Exhibit 9. Event Attendance by Month, ShoWare Center, 2009-2011

Source: ShoWare Center, 2012. Kent ShoWare Center Economic Impacts November 2012 Page 9

Exhibits 10 and 11 illustrate total event income by event type for 2011. The majority of income generated by ShoWare Center comes directly from Thunderbirds and Other Sporting Events, totaling $532,373 in 2011. Concerts were the second largest income generator at $339,634 in 2011. Exhibit 10. Event Income Table, ShoWare Center, 2011
Event Category 2011 Income T-Birds and Other Sporting Events $532,373 Family Entertainment $216,059 Graduation and Civic $72,772 Concerts $339,634 Business/Trade $135,082 Total $1,295,920 Events 60 5 12 13 49 139 2011 Percentage Perfomances Income 71 41% 24 17% 24 6% 12 26% 51 10% 182 100%

Source: ShoWare Center, 2012. Exhibit 11. Event Income Graph, ShoWare Center, 2011

Source: ShoWare Center, 2012.

Kent ShoWare Center Economic Impacts

November 2012

Page 10

Exhibit 12 illustrates overall concessions sold segmented into event categories. The largest share of concessions income is derived from Thunderbirds and Other Sporting Events, reflecting the frequency of these events at ShoWare Center. Concerts were the second largest producer of concession income in 2011. Exhibit 12. Concessions Income by Event Type, ShoWare Center, 2011
Food and Beverage Concessions 360,024 59,873 29,147 93,245 13,896 556,186 Food and Beverage Catering Income $ 47,065 $ (3,819) $ 6,201 $ 26,960 $ 95,286 $ 171,693 Novelty Sales Income $ 5,769 $ 8,060 $ 100 $ 10,537 $ $ 24,466 Total Ancillary Income $ 412,859 $ 64,114 $ 35,448 $ 130,743 $ 109,182 $ 752,345

Event Category T-Birds and Sporting Events Family Entertainment Graduation and Civic Concerts Business/Trade Total

$ $ $ $ $ $

Source: ShoWare Center, 2012. Exhibit 13 uses the same segmentation to present operating income at ShoWare. In 2011 Thunderbirds and Other Sporting Events were responsible for the largest share of net operating income. Rental Revenues and Facility Fees were the largest proportion of revenues for Thunderbirds and Sporting Events ($428,239) with Total Ancillary Income ($412,859) making up a substantial share as well. Gross ticket sales totaled $2.5 million in 2011, most of which goes to event producers; ShoWare’s share of ticket sales is included in Ticket Rebates. Box Sales and Ticket Rebates totaled $211,895 in 2011. Exhibit 13. Direct Event Income Detail by Event Type, ShoWare Center 2011
Event Category T-Birds and Sporting Events Family Entertainment Graduation and Civic Concerts Business/Trade Total Box Sales and Ticket Rebates $ 24,512 $ 59,904 $ (605) $ 127,984 $ 101 $ 211,895 Rental Revenues and Facility Fees $ 428,239 $ 280,565 $ 98,355 $ 213,318 $ 72,588 $ 1,093,065 Billable Services $ 82,685 $ 9,679 $ 2,841 $ 5,676 $ 4,443 $ 105,324 Total Ancillary Income $ 412,859 $ 64,114 $ 35,448 $ 130,743 $ 109,182 $ 752,345 Service Expenses $ (415,928) $ (198,202) $ (63,266) $ (138,088) $ (51,233) $ (866,717) Net Operating $ 532,366 $ 216,060 $ 72,773 $ 339,633 $ 135,081 $ 1,295,912

Source: ShoWare Center, 2012.

Kent ShoWare Center Economic Impacts

November 2012

Page 11

Patron Origin and Draw
The following section provides a geographic analysis of where ShoWare Center patrons draw. Patron origins are based on data collected by ShoWare Center with supplemental analysis by Community Attributes. Exhibit 14 illustrates the origins of 2011 patrons attending concerts, family events and several miscellaneous sporting events (not including Thunderbirds games). A large portion of patrons live in the Kent/Renton/Covington area (20%) while another large portion (21%) live in south King County and North Pierce County including Federal Way, Bonney Lake, Auburn and Sumner. Concentrations also exist in Tacoma (11%), Seattle south of the Montlake Cut (11%), the Bellevue/Redmond Area (8%) and North Seattle to Mukilteo (5%). There is also a noticeable concentration of patrons with residences in the Olympia/Lacey area. Exhibit 15 on the following page illustrates the origins of 2011 Thunderbirds season ticketholders. The map depicts season ticket holder by zip code, with the largest share of season ticket holder located within Kent. Other areas with relative concentrations of season ticket holder include South King County as a whole as well as Redmond and Lacey.

Kent ShoWare Center Economic Impacts

November 2012

Page 12

Exhibit 14. Non Thunderbirds Patron Residences, ShoWare Center, 2011

Kent ShoWare Center Economic Impacts

November 2012

Page 13

Exhibit 15. Thunderbirds Season Ticket Holder Residence by Zip Code, ShoWare Center, 2011

Kent ShoWare Center Economic Impacts

November 2012

Page 14

Exhibit 16 illustrates home residences for all ShoWare Center patrons from 2009 to 2011. During the three years analyzed the most common areas of residence were South King County and Tacoma/Pierce County. The proportion of patrons from Kent has steadily declined from a high of 19% in 2009 to a 12% in 2011. The proportion of patrons from Seattle in 2011 was 13%, similar to that of Kent. The share of Tacoma/Pierce County patrons has increased steadily from 2009 to 2011, from 16% to 25%. Exhibit 16. Distribution of Patron Residences, ShoWare Center, 2009-2011

Source: ShoWare Center, 2012.

Kent ShoWare Center Economic Impacts

November 2012

Page 15

EMAIL AND INTERCEPT SURVEY RESULTS
Alison Peters Consulting, in conjunction with Community Attributes, conducted two intercept surveys during the summer of 2012. In addition, two email surveys were distributed to ShoWare Center patrons: one to 2012 Thunderbirds Hockey season ticket holders and one sent to all other 2012 ShoWare Center patrons. In all, four surveys contributed to this analysis, described as follows:     Email All survey distributed to all non-Thunderbirds 2012 ShoWare Center patrons Email Thunderbirds survey distributed to 2012 Thunderbirds season ticketholders Graduation Intercept survey conducted at 2012 Kentridge High School graduation New Edition Intercept survey conducted at 2012 New Edition concert

Quantitative questions focused on spending patterns within the City of Kent and outside of ShoWare Center. Four separate surveys were conducted in order to ascertain data on the broad spectrum of ShoWare Center patrons. The following sections show the quantitative results related to spending for each individual survey.

Kent ShoWare Center Economic Impacts

November 2012

Page 16

Intercept Results
In order to capture a representative demographic of ShoWare Center attendees the intercept surveys were conducted at two different types of events: the Kentridge High School Graduation and the New Edition Concert. The following presents the quantitative results of the intercept surveys. Exhibit 17 shows the two intercept survey methods and number of survey participants. Exhibit 17. Intercept Surveys, ShoWare Center, 2012
Survey Graduation Intercept Survey Concert Intercept Survey Method In person survey at Kentridge High school graduation In person survey at New Edition Concert Total Responses 167 171

Source: Community Attributes Inc., 2012, Alison Peters Consulting, 2012. Kentridge Graduation One intercept survey was conducted at the Kentridge High School Graduation in June 2012. Overall attendance at Graduation events totaled 36,905 patrons in 2011 spread over eight Graduation events (Exhibit 18). The Kentridge Graduation was attended by approximately 4,100 people and started at 7pm. Exhibit 18. Graduation Event Attendance, 2011
Event Graduation Attendance 36,904 Events 8 Avg Attendance 4,613

Source: ShoWare Center, 2012. Exhibit 19 summarizes spending results from the Graduation Intercept Survey. Dining before or after the event was found to be fairly common among patrons with more patrons (36%) spending money on dining after the event than before (20%). Shopping, lodging and miscellaneous spending were found to be less common. 10% of patrons stated they shopped before or after the event while the percentages of those spending money on lodging (4%) and miscellaneous items (5%) was even lower.

Kent ShoWare Center Economic Impacts

November 2012

Page 17

Exhibit 19. Graduation Intercept Survey Spending Results, ShoWare Center, 2012

Source: Community Attributes Inc., 2012, Alison Peters Consulting, 2012. Exhibit 20 summarizes the percentage of patrons that spent money on dining, shopping, lodging or miscellaneous items as well as the average amount spent. On average, those that did spend money on dining spent a total of $35.38 before and/or $43.24 after (referred to in the table as “Avg., Those Spending”. Shopping was less common with those that did spend money spent $28.18 on average. The Average All Patrons column illustrates per patron spending by graduation attendees and includes those that spent nothing. Average spending figures from this column were utilized in estimating spending impacts described later in the report.

Kent ShoWare Center Economic Impacts

November 2012

Page 18

Exhibit 20. Spending Averages, Graduation Intercept Survey, 2012
Spending Category Dining Before After Combined Shopping Lodging Miscellaneous Percentage Spending 20% 36% 28% 10% 4% 5% Avg, Those Spending $35.38 $43.24 $78.62 $28.18 $59.88 $36.30 Avg All Patrons $6.99 $15.46 $22.45 $2.85 $2.22 $1.82

Source: Community Attributes Inc., 2012, Alison Peters Consulting, 2012.

Kent ShoWare Center Economic Impacts

November 2012

Page 19

New Edition Concert An intercept survey was conducted at the New Edition concert held at ShoWare Center on June 22, 2012. Concert events in 2011 attracted a total of 34,080 patrons spread over 12 concert events (Exhibit 21). The New Edition Concert drew 2,996 patrons to ShoWare Center and started at 9pm. Exhibit 21. Concert Event Attendance, 2011
Event Concert Attendance 34,080 Events 12 Avg Attendance 2,840

Source: ShoWare Center, 2012. Exhibit 22 summarizes spending results from the New Edition Intercept Survey. The proportion of those surveyed dining before or after the concert was similar to the proportion of graduation diners. Among the concert survey participants 34% responded that they dined before the event and 33% responded that they dined after. Similarly to the graduation survey respondents, shopping, lodging and miscellaneous spending were found to be less common. Six percent of patrons stated they shopped before or after the event while 1% stated they spent money on lodging. A slightly higher percentage spent money on miscellaneous items (13%). Exhibit 22. Concert Intercept Survey Spending Results, ShoWare Center, 2012

Source: Community Attributes Inc., 2012, Alison Peters Consulting, 2012. Kent ShoWare Center Economic Impacts November 2012 Page 20

Exhibit 23 illustrates the percentage of New Edition concert patrons that spent money outside of ShoWare Center within Kent along with the average amount that they spent. On average, those that did spend money on dining spent a total of $35.10 before and/or $42.88 after. Spending associated with shopping was less common but those that did spent $38.62 on average. The Average All Patrons column also illustrates per patron spending by Concert attendees and includes those that spent nothing. Average spending figures from this column were utilized in estimating spending impacts described later in the report. Exhibit 23. Concert Survey, Spending Summary Table, 2012
Spending Dining Before After Combined Shopping Lodging Miscellaneous Percentage Spending 34% 33% 33% 6% 1% 13% Avg, Those Spending $35.10 $42.88 $77.98 $38.62 $59.88 $36.71 Avg All Patrons $11.77 $14.12 $25.89 $2.23 $0.71 $4.91

Source: Community Attributes Inc., 2012. Alison Peters Consulting, 2012.

Kent ShoWare Center Economic Impacts

November 2012

Page 21

Email Survey Results
In coordination with ShoWare Center staff, Community Attributes distributed an email survey to all ShoWare Center patrons that attended events in 2012. A separate email survey was distributed to Seattle Thunderbirds season ticketholders during the same time period. The following subsections summarize the quantitative results from the email surveys. Exhibit 24 summarizes the two email survey types and number of survey participants. Exhibit 24. Email Surveys, ShoWare Center, 2012
Survey Email All Email Thunderbird Method Survey emailed to 2012 nonThunderbird ShoWare patrons Survey emailed to 2012 Thunderbird season ticket holders Total Responses 318 782

Source: Community Attributes Inc., 2012.

Kent ShoWare Center Economic Impacts

November 2012

Page 22

Email Survey to 2012 Event Patrons (not including Thunderbirds patrons) Exhibit 25 summarizes spending results from the email survey distributed to all 2012 patrons not including Thunderbirds season ticket holders. The survey results in the dining category differed from the intercept survey results as dining out was more common among respondents. 78% of respondents stated they spent money on dining before events while 47% of respondents stated they spent money on dining after events. Spending on lodging and entertainment outside of ShoWare Center was found to be less frequent. Shopping outside of ShoWare Center was not calculated for this survey, but shopping for souvenirs at the event was found to be fairly common. Exhibit 25. Email All Survey Spending Results, ShoWare Center, 2012

Source: Community Attributes Inc., 2012.

Kent ShoWare Center Economic Impacts

November 2012

Page 23

Exhibit 26 illustrates the percentage of those Email All survey participants that spent money outside of ShoWare Center and within Kent. Also provided is the average amount spent of those that did spend money outside of ShoWare Center. Of those that did spend money on dining, the average spent before an event was $26.45 and the average spent after was $24.45. The exhibit illustrates per patron spending by Email All survey respondents including those that spent nothing. Average spending figures from this column were utilized in estimating spending impacts described later in the report. Exhibit 26. Email All Survey, Spending Summary Table, 2012
Spending Category Dining Before After Combined Shopping Lodging Entertainment Before After Percentage Spending 78% 47% 63% NA 4% 6% 9% Avg, Those Spending $26.45 $24.45 $50.90 NA $93.11 $26.46 $35.12 Avg All Patrons $20.72 $11.57 $32.29 NA $3.34 $1.64 $3.06

Source: Community Attributes Inc., 2012.

Kent ShoWare Center Economic Impacts

November 2012

Page 24

Email Survey to 2012 Thunderbirds Season Ticketholders Exhibit 27 summarizes spending results from the email survey distributed to all 2012 Thunderbirds season ticketholders. Dining out was common among respondents with 85% stating they spent money on dining before and 38% spending after. The noticeable difference between the Email All Survey and the Thunderbirds Email survey is the larger percentage of patrons dining before the game. Spending on lodging and entertainment outside of ShoWare Center was found to be low. Almost half (46%) of survey respondents stated that they spend money on souvenirs at the event. Exhibit 27. Thunderbirds Email Survey Spending Results, ShoWare Center, 2012

Source: Community Attributes Inc., 2012.

Kent ShoWare Center Economic Impacts

November 2012

Page 25

Exhibit 28 illustrates the percentage of Thunderbirds email survey patrons that spent money outside of ShoWare Center within Kent along with spending averages. Average spending among those that did spend money on dining was $26.26 before the event and $22.03 after. The Average All Patrons column illustrates per patron spending by Thunderbirds email survey respondents including those that spent nothing. Average spending amounts from the exhibit were utilized in calculating total spending by event type. Exhibit 28. Thunderbirds Email Survey, Spending Summary Table, 2012
Spending Category Dining Before After Combined Shopping Lodging Entertainment Before After Percentage Spending 85% 38% 62% NA 2% 5% 5% Avg, Those Spending $26.26 $22.03 $48.28 NA $54.77 $19.30 $19.95 Avg All Patrons $22.42 $8.36 $30.78 NA $1.34 $0.87 $0.93

Source: Community Attributes Inc., 2012.

Kent ShoWare Center Economic Impacts

November 2012

Page 26

IMPACT ANALYSIS
The following section provides a detailed analysis of the economic impacts ShoWare Center has on both City of Kent’s economy and the direct fiscal impacts it has on the City of Kent’s revenues. Exhibit 29 maps ShoWare Center’s impact and depicts revenue sources and impacts. Exhibit 29. ShoWare Center Impacts

Source: Community Attributes Inc., 2012.

Kent ShoWare Center Economic Impacts

November 2012

Page 27

Visitor Spending
Visitor spending estimates and overall impacts are based on survey data collected during the summer of 2012 (see Email and Intercept Survey Quantitative Results section). Impacts are also based on attendance and revenue data provided by ShoWare Center. Both sources provided the foundation for estimating direct and indirect financial impact generated by ShoWare Center. Financial impacts include direct and induced fiscal impacts for the City of Kent. Exhibit 30 illustrates the average per patron spending used to calculate spending outside ShoWare Center (spending directly related to ShoWare Center events). Events are segmented into five categories based on the attendance data shown earlier in the report. Exhibit 31 illustrates the number of responses given by survey respondents organized by each survey type completed. Exhibit 30. Patron Average Spending by Event Type Outside ShoWare Center, 2011
Event Category T-Birds and Other Sporting Events/1 Family Entertainment/2 Graduation and Civic Concerts Business/Trade/3 Weighted Average Dining $30.78 $32.29 $22.45 $24.20 $32.29 $29.25 Shopping $2.54 $2.85 $2.85 $2.23 $2.54 $2.60 Lodging $1.34 $3.34 $2.22 $0.71 $3.34 $1.60 Entertainment $1.80 $4.71 $1.82 $4.91 $4.71 $3.08 Total $36.46 $43.19 $29.34 $32.06 $42.88 $36.63

Notes: 1 Assumes spending at T-Birds games is same at other sporting events 2 Utilizes same per patron spending values as Graduation and Civic Events 3 Utilizes All Events Email Survey averages

Source: Community Attributes Inc., 2012., Allison Peters Consulting, 2012. Exhibit 31. Survey Responses by Survey Type and Spending Category, ShoWare Center, 2011
Spending Category Graduation 167 168 162 160 Intercept Concert 173 173 168 172 Survey Type Merged 340 341 330 NA Email All Events T-Birds 291 689 291 725 279 694 275 689

Dining Shopping Lodging Entertainment/Miscellaneous

Source: Community Attributes Inc., 2012., Allison Peters Consulting, 2012.

Kent ShoWare Center Economic Impacts

November 2012

Page 28

ShoWare Center attendance in 2011 was used to calculate spending by patrons outside of ShoWare Center. The averages calculated for each event type and spending type were multiplied by the attendance numbers shown in Exhibit 32. Exhibit 32. Patron Attendance by Event Category, ShoWare Center, 2011
Event Category T-Birds and Other Sporting Events Family Entertainment Graduation and Civic Concerts Business/Trade Total Patrons 164,087 62,438 49,331 34,080 21,419 331,355 Events 60 5 12 12 49 138 Patrons per Event 2,735 12,488 4,111 2,840 437 2,401 Percentage 50% 19% 15% 10% 6% 100%

Source: ShoWare Center, 2012. Exhibit 33 illustrates total patron spending outside ShoWare Center in 2011 segmented into event types and spending types. Total patron spending is based on the averages shown in Exhibit 30 as well as overall attendance calculated for each event type provided in Exhibit 32. Thunderbirds and Other Sporting Events result in the largest amount of spending outside ShoWare Center, totaling an estimated $5,982,684 in 2011. Total spending from all events is estimated at $12,137,440 in 2011. Exhibit 33. Total Patron Spending Outside ShoWare Center, 2011
Event Category T-Birds and Other Sporting Events Family Entertainment Graduation and Civic Concerts Business/Trade Total Dining Shopping $5,050,643 $416,362 $2,016,364 $178,038 $1,107,579 $140,664 $824,896 $76,085 $691,702 $54,350 $9,691,185 $865,499 Lodging Entertainment $220,155 $295,523 $208,381 $293,869 $109,406 $89,542 $24,294 $167,291 $71,484 $100,810 $633,720 $947,035 Total $5,982,684 $2,696,653 $1,447,191 $1,092,567 $918,346 $12,137,440

Source: Community Attributes Inc., 2012., Allison Peters Consulting, 2012.

Kent ShoWare Center Economic Impacts

November 2012

Page 29

Kent Fiscal Impacts
Fiscal impacts associated with ShoWare Center are related to a variety of sources including spending at ShoWare Center, ticket sales and patron spending outside of ShoWare Center and within Kent. Impacts from the following spending types were calculated for ShoWare Center.     Sales tax revenues – patron spending times sales tax rate Hotel/motel tax revenues Restaurant and bar taxes Ticket sales (admissions tax)

Exhibit 34 illustrates the sales tax rate and distribution for the City of Kent. The tax is collected for sales on food, beverages and souvenirs for purchases made within ShoWare Center and sales made at surrounding shops and restaurants in Kent. Exhibit 35 illustrates other applicable tax rates which consist of a hotel/motel tax, a Lodging/Convention Center tax and an admission tax. Exhibit 34. Sales Tax Rate and Distribution, City of Kent, 2011
9.5% Rate Structure State RTA Criminal Justice Metro City of Kent King County Total Sales Tax Distribution of .05% Stadium Tax State Distribution 6.50% 0.90% 0.10% 0.80% 0.85% 0.35% 9.50% Percent 68.4% 9.5% 1.1% 8.4% 8.9% 3.7% 100.0%

100.0%

Source: City of Kent, Washington Office of Financial Management, 2012. Exhibit 35. Other Tax Rates, City of Kent, 2011
Tax Special Hotel/Motel Tax Lodging/Convention Center Tax Rate 1.0% 2.8%

Source: City of Kent, Washington Office of Financial Management, 2012. Kent ShoWare Center Economic Impacts November 2012 Page 30

Estimates of statewide and City of Kent fiscal impacts are based on the aforementioned tax rates in addition to the average spending rates by spending type and event type. Exhibit 36 illustrates the statewide fiscal impact of patron spending outside of ShoWare Center. Exhibit 37 illustrates the City of Kent’s share of those fiscal impacts. Total statewide impacts of patron spending outside ShoWare Center in 2011 are estimated at $1,177,138. Fiscal impacts for the City of Kent are estimated at $127,250 in 2011. Exhibit 36. Estimated Statewide Fiscal Revenues (includes Local, County and State), Patron Spending Outside ShoWare Center, 2011
Event Category T-Birds and Other Sporting Events Family Entertainment Graduation and Civic Concerts Business/Trade Total Dining $479,811 $191,555 $105,220 $78,365 $65,712 $920,663 Shopping $39,554 $16,914 $13,363 $7,228 $5,163 $82,222 Lodging $29,281 $27,715 $14,551 $3,231 $9,507 $84,285 Entertainment $28,075 $27,918 $8,506 $15,893 $9,577 $89,968 Total $576,721 $264,100 $141,641 $104,717 $89,959 $1,177,138

Source: Community Attributes Inc., 2012., Allison Peters Consulting, 2012. Exhibit 37. City of Kent Fiscal Revenues, Patron Spending Outside ShoWare Center, 2011
T-Birds and Other Sporting Events Family Entertainment Graduation and Civic Concerts Business/Trade Total Dining $42,930 $17,139 $9,414 $7,012 $5,879 $82,375 Shopping $3,539 $1,513 $1,196 $647 $462 $7,357 Lodging $10,237 $9,690 $5,087 $1,130 $3,324 $29,468 Entertainment $2,512 $2,498 $761 $1,422 $857 $8,050 Total $59,219 $30,840 $16,459 $10,210 $10,522 $127,250

Source: Community Attributes Inc., 2012., Allison Peters Consulting, 2012.

Kent ShoWare Center Economic Impacts

November 2012

Page 31

In addition to spending outside of ShoWare Center by patrons, SMG, which operates ShoWare Center, collects sales and Admissions taxes on sales inside ShoWare Center. Exhibit 38 shows the sales and admissions taxes collected by SMG from 2009 to 2011. Thunderbirds Hockey also collects admissions taxes which are described in the next section of the impact analysis. Exhibit 38. Sales and Admissions Taxes Paid, ShoWare Center, 2009 - 2011
Tax Sales Admissions 2009 $175,128 $119,558 2010 $165,316 $105,954 2011 $184,535 $133,249

Source: ShoWare Center, 2012. Exhibit 39 summarizes Thunderbirds operations at ShoWare Center in 2011. Gross ticket sales totaled $2,520,000 including $126,000 collected in admissions tax in 2011. The Thunderbirds estimate total expenditures in the Kent to have been $930,000 in 2011 and payroll equaled $1,391,000 during the same year. Exhibit 39. Thunderbirds Revenues/Expenditures, City of Kent, 2011
Revenue/Expenditure Gross Ticket Sales Admission Tax Collected Total Payroll Kent Area Expenditures/1 Amount $2,394,000 $126,000 $2,520,000 $1,391,000 $930,000

Source: Seattle Thunderbirds Hockey, 2012.

Kent ShoWare Center Economic Impacts

November 2012

Page 32

Direct, Indirect and Induced Benefits
Exhibit 40 summarizes total revenues by revenue category, including ticket sales and rental revenues for SMG and the Thunderbirds, ShoWare Center concession sales and event related spending outside of ShoWare. Total fiscal benefits are calculated based on applicable tax rates provided by the state and City of Kent. In 2011 it is estimated that there was a total of $16,606,900 in direct revenues (or spending) associated with ShoWare Center. The total fiscal benefits, those accruing to the state, county and City of Kent, totaled $1,620,900. The City of Kent’s share of the direct fiscal benefits was $403,000. Exhibit 40 includes the indirect and induced multiplier output based on the Implan Input/Output model (Exhibit 41). The multiplier used (1.68) is a weighted average of the segments shown. Total direct, indirect and induced spending in 2011 is estimated at $25,126,200 – assuming 75% of indirect and induced impacts are captured within Kent. The total fiscal impact of this spending is estimated at $2,452,400, including taxes gathered by other Washington State jurisdictions. Exhibit 40. Business Incomes and Fiscal Impact Analysis, ShoWare Center, 2011
SMG Ticket Sales and Revenues/2 Thunderbirds Gross Ticket Sales ShoWare Sales (concessions)/3 Event related Spending Dining Shopping Lodging Entertainment Subtotal Subtotal of ShoWare direct revenues Indirect & Induced revenues/5 Total Direct, Indirect, and Induced Revenues $1,323,200 $2,394,000 $752,300 $9,691,200 $865,500 $633,700 $947,000 $12,137,400 $16,606,900 $8,519,300 $25,126,200 Total Fiscal Benefits/1 $133,200 $126,000 $184,500 $920,700 $82,200 $84,300 $90,000 $1,177,200 $1,620,900 $831,500 $2,452,400 Kent Fiscal Benefits $133,200 $126,000 $16,500 $82,400 $7,400 $29,500 $8,000 $127,300 $403,000 $206,700 $609,700

Notes 1 Benefits to the State, County and City of Kent 2 Adjusted gross income less ancillary income 3 Includes taxable retail sales made at ShoWare Center 4 Based on Implan Input/ouput model, King County, 2010. 5 Assumed that 75% of Indirect and induced revenues are captured in Kent

Source: Community Attributes Inc., 2012., Allison Peters Consulting, 2012.

Kent ShoWare Center Economic Impacts

November 2012

Page 33

Exhibit 41. Indirect and Induced Multipliers by Impact Segment, Implan Model, 2012
Industry Code 327 328 329 402 403 409 410 411 413 Industry Description Retail Stores - Clothing and clothing accessories Retail Stores - Sporting goods, hobby, book and music Retail Stores - General merchandise Performing arts companies Spectator sports companies Amusement parks, arcades, and gambling industries Other amusement and recreation industries Hotels and motels, including casino hotels Food services and drinking places Regional Multiplier Output Assigned Shopping Shopping Shopping ShoWare ShoWare Entertainment Entertainment Lodging Dining Output Multiplier 1.73 1.66 1.58 1.85 1.69 1.60 1.60 1.62 1.62 1.68

Source: MIG Inc., 2010. Exhibit 42 details the fiscal impacts associated with ShoWare Center for the City of Kent and provides a combined total for direct and indirect fiscal benefits for 2011. In 2011, total fiscal benefits generated by ShoWare Center for the City of Kent are estimated at $609,700. The fiscal impact estimates include taxes collected by the City from ShoWare Center and Thunderbirds Hockey (sales tax and admissions tax at ShoWare Center), taxes collected from event related spending outside of ShoWare Center and indirect/induced impacts based on the previously described multiplier calculation (Exhibit 40). Exhibit 42. City of Kent Fiscal Impact Summary, ShoWare Center, 2011
Direct Benefits Admissions tax Sales tax from sales at ShoWare ShoWare Sales Impacts Other Patron Spending Impacts Total Direct Benefits $259,200 $16,500 $275,700 $127,300 $403,000

Indirect and Induced Benefits Total Kent Fiscal Benefits

$206,700 $609,700

Source: Community Attributes Inc., 2012, Allison Peters Consulting, 2012. Kent ShoWare Center Economic Impacts November 2012 Page 34

STAKEHOLDER INTERVIEWS
This section of the report synthesizes the perspective of stakeholders interviewed during the summer of 2012. Perspectives on the impacts of ShoWare Center to surrounding businesses and the City of Kent in general provide qualitative feedback and enrich the understanding of how ShoWare Center functions within the economy of Kent. Appendix B provides a detailed compilation of the stakeholder comments summarized in this section.

Impacts to Local Businesses
Restaurants in particular report increased revenues. Restaurants located near ShoWare Center report that events directly increase their revenues, in terms of both total number of customers and per-person spending. Not all events have the same impact, and it was widely reported that these benefits are more pronounced for sporting events, and are more likely before, rather than after an event. “On concerts and sports events we will see upwards of 50 and 75% increase.” Non-retail businesses use ShoWare Center events for business development and employee appreciation. Many companies, especially Thunderbirds sponsors, report that they frequently give tickets away to existing or potential clients. Business owners report that this benefit helps drive sales and is a regular feature of their sales plans. Businesses also report using tickets to ShoWare events for employee appreciation and fringe benefits, noting that younger employees especially enjoy this perk. “We give away the tickets and our employees use them. That is good for business.” Increased visibility for business located near ShoWare Center. ShoWare Center events result in increased visibility of all businesses in the surrounding area. Stakeholders generally feel that patrons attending events are exposed to their businesses in general, and that ShoWare Center events serve as an important soft marketing tool. “More traffic downtown is good for exposure. This means people seeing my signs I have at my downtown office. The foot and vehicle traffic provides good exposure.” Businesses have positive associations with ShoWare Center. Many business interviewed do not measure sales and revenues in a way that can attribute boosts to ShoWare Center. However, stakeholders report general positive association with ShoWare Center. They attribute increases in profits to ShoWare events and in general assign positive attributes to proximity to the venue.

Kent ShoWare Center Economic Impacts

November 2012

Page 35

“I’m not sure what the revenue impacts have been for our business, but overall it has been a positive experience for our business.”

Challenges and Opportunities
Parking is an issue for surrounding businesses. The impacts of parking on surrounding businesses in not always perceived positively. Some feedback stated that ShoWare Center patrons will come and dine at a restaurant before and event and walk to the facility from the restaurant, leaving their cars behind and making it difficult for customers later in the evening to find parking spots. Police assistance to manage parking was requested. “Events destroy parking, Parking is a limited premium as is, and people attending ShoWare Center come in for a beer or an appetizer and then they leave their car and prevent other customers.” Event related traffic can be problematic. Traffic, especially traffic going east and west, can become clogged on big event days. Stakeholders report this less as a severe negative impact on their business and rather as a minor inconvenience. “Having big events one after another caused heavier traffic in the area. But this didn’t really impact us heavily. It was minimal” There is untapped potential for cross-collaboration with local businesses. Many businesses said they do not partner or sponsor with ShoWare Center in any way, but expressed interest in learning new ways to cross-collaborate. There is a desire to see collaboration and marketing of the entire area as a whole. “Trying to find a way to promote ShoWare Center and Downtown Kent is a top priority. There is just a wonderful product and we just need to figure out how to promote it.”

Relationship to Kent and Place Making
ShoWare Center compliments its neighbors well, especially Kent Station, and serves as an anchor institution. Stakeholders, both representatives of business in Kent Station and outside the general area agree that ShoWare Center serves as an anchor institution to its area and is helping to drive economic development. The events drive people into the area to shop, dine and seek professional services. The retail opportunities in Kent Station provide a full experience for event attendees. One stakeholder who works in real estate development credited ShoWare Center as being a major factor in a recent land deal.

Kent ShoWare Center Economic Impacts

November 2012

Page 36

“As Kent keeps getting nicer, our employees and customers want to do things in Kent. It’s nice. Our ability to move in that area is improved the nicer it is and more reasons we have to go down there.” Stakeholders feel generally aware of events at ShoWare Center. Stakeholders are generally aware of the type and frequency of events at ShoWare Center, reflecting that marketing and event promotion efforts are effective. Some stakeholders, however, feel that a holistic tourism and marketing program is necessary to promoting Kent as a destination. “If we’re ever going to go to the next level we have to actually promote it. Tourism can grow through an actual marketing program, that’s where we are right now.” The Thunderbirds are vital to the success of ShoWare Center and a major benefit to surrounding businesses. The Thunderbirds are perceived to be the anchor tenants of the ShoWare Center. Restaurants and retail respect and understand the positive impacts this relationship has for them, and desire to maintain the Thunderbirds as a continual local draw and opportunity for business development through the use of sponsor tickets. “Thunderbirds games provide the most positive impact.” Stakeholders find the facility clean and well-maintained. Stakeholders compliment the facility for its design, maintenance and describe attending events there as a pleasurable experience. These sentiments echo findings from patron surveys. It is also noted as being particularly well located for access to the Highways, and for transit. “It’s an awesome and great facility. I am a big advocate. It’s nice to have a local facility like this so we don’t have to go to Tacoma or Seattle. It’s clean and nice.”

Kent ShoWare Center Economic Impacts

November 2012

Page 37

APPENDIX A. PATRON FEEDBACK FOR SHOWARE EXPERIENCE
The following section provides a synopsis of qualitative information gathered from the four surveys during the summer of 2012. Intercept Surveys Exhibit 43 shows the origins of Intercept Survey participants. Nearly 70 percent of graduation attendees live within the city limits (43%) or within 10 miles of Kent (26%). The New Edition concert drew from a noticeably different geography in that they arrived from outside the immediate area (60% said they were not from Kent or within 10 miles). (Alison Peters Consulting Intercept Survey Report, 2012). Exhibit 43. Attendee Origin, Intercept Surveys, 2012

Source: Alison Peters Consulting, 2012.

Kent ShoWare Center Economic Impacts

November 2012

Page 38

Exhibit 44 illustrates satisfaction levels of Intercept Survey participants. Satisfaction with ShoWare Center is very high among both graduation attendees (81% very satisfied) and concert goers (76% very satisfied). Satisfaction increases among local Kent residents (85% for residents of Kent). Dissatisfied patrons represented a small percentage of patrons surveyed (4%). Exhibit 44. Attendee Satisfaction, Intercept Surveys, 2012
Level of Satisfaction Very satisfied Somewhat satisfied Somewhat dissatisfied Very dissatisfied Total 78% 17% 2% 2% City of Kent 85% 13% 2% 0% Surrounding Areas 80% 14% 3% 2% Out of Town 73% 22% 2% 3% Graduation 81% 13% 4% 2% Concert 76% 21% 1% 2%

Source: Alison Peters Consulting, 2012. Exhibit 45 illustrates ShoWare Center attributes mentioned by attendees surveyed. There was a strong degree of consensus from attendees at both events around the top two answers provided overall: Location is convenient (mentioned by 36% overall) and Clean/New (mentioned by 34% overall). Exhibit 45. Best ShoWare Center Attributes, Intercept Surveys, 2012
ShoWare Attribute Location is convenient Clean, new Parking is convenient, free General venue is good Good views from all seats Seating, aisles are comfortable Friendly staff Concessions Restrooms Sound system Venue is built green Luxury boxes Other Overall 36% 34% 32% 25% 19% 15% 9% 8% 7% 5% 4% 3% 19% Graduation 39% 30% 25% 13% 14% 13% 1% 0% 1% 0% 0% 0% 28% Concert 33% 38% 38% 36% 23% 16% 16% 14% 12% 10% 7% 5% 12%

Source: Alison Peters Consulting, 2012.

Kent ShoWare Center Economic Impacts

November 2012

Page 39

Exhibit 46 illustrates desired event types by ShoWare Center patrons. The most desirable events mentioned by patrons were music events (62% of intercept survey respondents). Sports events (35%), family events (17%) and theater events (11%) were other event types mentioned. Exhibit 46. Desired Event Type, Intercept Survey, 2012

Source: Alison Peters Consulting, 2012. Exhibit 47 cross tabulates event preferences with several subgroups of intercept survey respondents. Of note is that a majority of every subgroup has a preference for more musical acts/concerts at ShoWare Center. Second, those who dined out prior to and during the concert were more likely to indicate an interest in sports events at ShoWare Center. They were also slightly less likely to indicate an interest in other concerts. The same demographic group (interested in sporting events specifically) is more likely to live in Kent. Finally, Kent residents were twice as likely to mention an interest in family-friendly shows at ShoWare Center (33% vs. 17% overall). Even residents within 10 miles did not see the convenience or value-add in having more family-friendly shows in Kent. (Alison Peters Consulting, 2012) Exhibit 47. Desired Event Type Cross Tabulation, Intercept Survey, 2012
Event Music events Sports events Family events Theater events Total 62% 35% 17% 11% Kent 67% 42% 33% 8% Surrounding Areas 67% 30% 15% 19% Out of Town 59% 38% 14% 9% Dined Out Purchased Before Event Concessions 55% 54% 50% 40% 20% 19% 15% 15% Dined Out After Event 63% 34% 19% 19%

Source: Alison Peters Consulting, 2012.

Kent ShoWare Center Economic Impacts

November 2012

Page 40

Email Surveys The following section illustrates quantitative results from the email surveys sent to general 2012 patrons in addition to 2012 Thunderbirds season tickets holders. Exhibits 48 and 49 illustrate attendance frequency by those surveyed. The percentage of events attended is also provided for survey types. Thunderbirds season ticket holders were, expectedly, more frequent visitors of ShoWare Center than Email All survey respondents. 72% of Email All respondents reported attending events 1 to 2 times per year. Among events attended, Email All respondents frequented concerts and non-musical performances the most. Exhibit 48. ShoWare Center Attendance, Email All Survey, 2012

Source: Community Attributes Inc., 2012. Exhibit 49. ShoWare Center Attendance, Thunderbirds Email Survey, 2012

Source: Community Attributes Inc., 2012. Kent ShoWare Center Economic Impacts November 2012 Page 41

Exhibits 50 and 51 illustrate the frequency that both email survey respondent groups dine and shop when visiting ShoWare Center. Both survey groups indicated that dining was a much more likely activity than shopping. 53% of Email respondents and 57% of Thunderbirds respondents stated they dined Usually. Comparatively, 9% of Email respondents and 10% of Thunderbirds respondents stated they shopped Usually. Exhibit 50. ShoWare Center Dining and Shopping Frequency, Email All Survey, 2012

Source: Community Attributes Inc., 2012. Exhibit 51. ShoWare Center Dining and Shopping Frequency, Thunderbirds Email Survey, 2012

Source: Community Attributes Inc., 2012.

Kent ShoWare Center Economic Impacts

November 2012

Page 42

Exhibits 52 and 53 illustrate the locations where both email survey groups spend money before or after attending an event at ShoWare Center. Kent Station was the predominant location mentioned. Among Email All survey respondents, 54% stated they spend money at Kent Station and among Thunder Email survey respondents 58% stated they spent money at Kent Station. Exhibit 52. Dining and Shopping Location, Email All Survey, 2012

Source: Community Attributes Inc., 2012. Exhibit 53. Dining and Shopping Location, Thunderbirds Email Survey, 2012

Source: Community Attributes Inc., 2012.

Kent ShoWare Center Economic Impacts

November 2012

Page 43

Exhibits 54 and 55 illustrate the responses provided by Email survey participants concerning amenities and experience. Patrons were asked what amenities they wished to see added to the City of Kent. Participants were given three options: public spaces, cultural arts or entertainment, each with a detailed description. Distribution among the categories was even among both surveys with entertainment being the most commonly selected for both. Patrons were also asked what would enhance the overall experience of events at ShoWare Center and in Kent. Enhance the Event was the most common answer for both survey types, with Enhance Nearby Restaurants and Enhance Nearby Amenities also mentioned frequently. Exhibit 54. Amenities and Experience, Email All Survey, 2012

Source: Community Attributes Inc., 2012. Exhibit 55. Amenities and Experience, Email All Survey, 2012

Source: Community Attributes Inc., 2012.

Kent ShoWare Center Economic Impacts

November 2012

Page 44

Exhibits 56 and 57 illustrate patron household income data for both email surveys. A greater percentage of Thunderbirds respondents have a household income $100,000 or more (40%). Email All respondents, representing a mix of event types, had a smaller percentage with household income greater than $100,000 (32%), with a greater proportion of respondents in the $60,000 to $99,000 category or less than $60,000 category. Exhibit 56. Household Income, Email All Survey, 2012

Source: Community Attributes Inc., 2012. Exhibit 57. Household Income, Thunderbirds Email Survey, 2012

Source: Community Attributes Inc., 2012.

Kent ShoWare Center Economic Impacts

November 2012

Page 45

APPENDIX B. STAKEHOLDER INTERVIEWS
Over the summer of 2012 Community Attributes interviewed a total of eighteen Kent based businesses. Community Attributes identified businesses believed to be impacted or directly associated with ShoWare Center events. Questions focused on overall impacts in addition to the following:      Goods and services offered Dependence on ShoWare Center events Revenues and expenses Marketing efforts currently underway Needs from the City of Kent

Exhibit 58 provides a list of businesses interviewed along with their applicable industry and location. Exhibit 58. Businesses and Organizations Interviewed, City of Kent, 2012
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Business Cave Man Kitchen Red's Wine Bar Ram Restaurant & Brewery Kent Bowl Kent Valley Ice Center Thunderbirds Holiday Inn Valley Bank Tarragon Property Management Kent Valley Motel World Wide Distributors Gleason & Co. Cal's Classic American El No que No Airways Brewing Company Smith Brother's Farms Lincoln Moving & Storage Great American Casino Industry Dine in and Take-Out Dining and Bar Dining and Brewery Entertainment Entertainment Entertainment Hotel (Thunderbird Sponsor) Kent Chamber & Downtown Bank Kent Station Property Manager Motel Retail Distributor Real Estate Restaurant Restaurant Restaurant and Brewery Official Milk Supplier (Thunderbird Sponsor) Official Moving Company (Thunderbird Sponsor) Entertainment (Thunderbird Sponsor) Location 807 West Valley Highway Kent Station Kent Station 1234 Central Avenue North 6015 South 240th Kent Station 22318 84th Avenue South 124 4th Avenue South Kent Station 743 Central Avenue North 8211 South 194th 317 W Meeker St Kent Station Historic Downtown South 196th Street 27441 68th Avenue South 8420 S. 190th Street 20500 108th Ave. SE

Source: Community Attributes Inc., 2012.

Kent ShoWare Center Economic Impacts

November 2012

Page 46

INTERVIEW RESPONSES
The following compilation of stakeholder feedback provides a detailed look at interview responses. Responses have been categorized by themes and have been edited for brevity and clarity. In order to provide context, certain responses include the stakeholder’s industry type in parentheses.

General Comments
Supportive, Positive Statements In addition to quantitative impacts, stakeholders described qualitative impacts to their businesses and the area. Stakeholders described impacts on jobs, increased restaurant visits, community building and employee Strongly Supportive       Just the fact that hockey team is there is positive. We give away our tickets and the employees use them. That is good for our business. It creates jobs, obviously. Not the highest paying jobs, but they’re good, regular income. I’ve seen people lined out the doors of restaurants. We love ShoWare Center. A huge positive impact. The graduation events were fun and very busy, especially if it was sunny. (Restaurant) Thunderbirds games are great family events and the people that attend are great people to be in front of. The demographics of the events are good. I’m not sure what the revenue impacts have been on our business, but overall it has been a positive experience for our business. (Sponsor) I feel that it has had a great impact on Kent Station. More traffic downtown is always good for exposure. This means people seeing my signs I have at my downtown office. The more people the merrier. The foot and vehicle traffic provides good exposure. (Real Estate) It’s definitely a positive overall. It’s great to have a community connection. The community connection with ShoWare Center is a positive. (Entertainment)

  

Mixed Reaction      ShoWare Center itself hasn’t affected me personally, but it stands to reason that it hasn’t hurt our business. Right before an event we get busy and then business slows and becomes normal. We get busy after events as well. Because of our location on the other side of Highway 167 we are less affected by the arena. It’s a good thing. Enough events do impact us (positively) making it a positive for our business. I don’t see any overall impact on our business. Most of our clients are regulars, no one has ever told me there are coming or going to a show. (Entertainment) It’s been positive and negative. It draws people from outside the area, or from the surrounding neighborhoods. There is more traffic, more potential first time guests. It’s November 2012 Page 47

Kent ShoWare Center Economic Impacts

hit or miss. Some crowds are more about getting food and drink before, some aren’t. Families don’t make a night of it like sports fans do. Sports fans (hockey and lingerie football) are a better boon for us than families. (Restaurant) I would characterize it as favorable. It brings people into the area. It supports the local population and I believe there’s a trickle down affect, particularly from the Thunderbirds games and their relationship with us. I believe more is always better. There is trickle down from any event at ShoWare Center. No Change on event nights in foot traffic or spending. (Entertainment)

Concerns and Negative Statements Negative feedback was generally limited to parking and traffic. Several stakeholders found parking during events to be impactful on their business. In addition, traffic before and after events were also a concern. One stakeholder stated that family events brought parking issues but little positive impacts to their business. Another stakeholder mentioned way finding a visibility up as an issue.        Ladies nights at ShoWare Center bring in a different type of group, not always a positive thing. The debt service on it is taking away about $3.5 million from the capital budget. A levy and sales tax increase for roads and parks. The City promised police support for parking during events. There is police support on James. 3,500 to 4,000 tickets sold is a tipping point. More than that creates parking impacts and movie theatre suffers. Their customers turn back from parkers. East west traffic is a nightmare during events. Why do they have to clock the left turn lane into the parking lot for events? Events destroy parking. Parking is a limited premium as is, and people attending ShoWare Center come in for a beer or an appetizer and then they leave their car and prevent other customers. If its Disney on ice, we don’t get the positive impact from people coming out we just get the negative impact of parking. Family events have a negative impact. Family events hurt our business. Graduations, having them one after another caused heavier traffic in the area. But this didn’t really impact us heavily. It was minimal. ShoWare Center definitely needs more parking It is not very visible, and kind of hard to find (way finding issues).

  

Restaurant and Entertainment Quantitative Impacts
Financial impacts to those businesses interviewed varied depending on their location and type. Restaurants located nearby in Kent Station felt the greatest impact, and restaurants located within Kent but farther from ShoWare Center also experienced impacts. Non-restaurant businesses were less affected. For example, one restaurant interviewed cited a 20% increase in foot traffic on ShoWare Center event nights, while another cited an increase in spending of $14 per guest to $15.50 per guest. Kent ShoWare Center Economic Impacts November 2012 Page 48

  

Guest check average on a normal day is $14 per guest. On event days it goes up to $15.50. Any event at ShoWare Center affects us, unless it’s a small event like luncheon. On a Monday night, for example, we experienced a bump of $2,000 in sales. On a Hockey night, it can be considerably more. An extra 200 people can bring an extra $4,000 and $5,000. (Restaurant) Kent Station is doing fine. Restaurants did really well. The theatre has also done well... The occupancy level never dipped below 93%. We’re at 96% leased and 94% open for business. The typical customer spends $35.00 per visit. This varies depending on what they want. I estimate that there is a 20% increase, sometimes more or less depending on the event. (Restaurant) On average it’s probably $100. There is no change on nights of events on our business. We don’t have larger crowds or anything. This is due to the proximity of ShoWare Center to our location. We are located on the other side of a hill from the arena. (Entertainment) Depending on the size of the group and the time of day, our typical customer spends $25-$30 per visit. Hockey and sports events draw more customers that spend less are likely “bar-hopping” before the event. Concerts tend to bring in full dinners whether it’s before or after the event. It depends on the event due to the fact that we’re 21 and over only. For concerts, it depends on the type of crowd it draws. Sports events bring good crowds for us. Family events bring less foot traffic. (Restaurant)  Earlier in the week (Mon, Tue, Wed) we are slower so the impact is greater when there are events (events that draw crowds for us)  On a Friday/Saturday night (busy nights) we will see a 20% to 30% increase in people  On Tuesdays and Wednesdays (slower nights) we will see up to a 50% increase in people. Average guest check is about $16. On concerts and sports events we will see upwards of 50 and 75% increase. (Restaurant)

Non Retail Business Impacts
Several non-retail businesses were interviewed. Impacts from these businesses were less pronounced and did not include direct financial gains. Generally, businesses of this type viewed ShoWare Center in a positive light. One stakeholder described how the ShoWare Center drastically improved networking opportunities for their business and how it directly impacted company.  The impact has been that I have met people through it and it has directly impa cted me by providing opportunities for networking.  Deals have resulted directly from ShoWare Center.  Networking at ShoWare Center has been the most impactful to business. Land deal I’m working on next to ShoWare Center couldn’t have been pulled off without ShoWare Center Arena. It had a direct impact on the deal. The property, which is under contract, is a stone’s throw from the arena. (Real Estate) November 2012 Page 49

Kent ShoWare Center Economic Impacts

Our salesmen when they have appointments, usually with people in the South End, not necessarily Seattle Clients, but Federal Way to Renton clients, they will take the tickets to an upcoming game to a customer. It helps them remember us and brings us business. That has been an effective marketing tool. We try to give them to customers we are wooing or as an appreciation. It’s usually our younger clients. I think it is a good chance that they haven’t been to a game before so this is a game chance to bring them to Kent. People like going to the game. You watch up and coming stars. It enhances salesman’s chances to make good and meaningful contact with potential customers. (Sponsor)

Hotel Impacts
Community Attributes interviewed two local hotels. Impacts from events were noticeable at one of the hotels interviewed. Patron stays brought room nights, but the most noticeable impacts cited were from visiting performers and hockey teams that booked rooms during their stay.  The impacts are positive. We get a good amount of business from ShoWare Center. We get consistent business from it year over year. From September to May, when we’re slow, events help us. Concerts have less of an impact because they draw more locally. We get leisure people for concerts, etc… We get business people for business events…and families for other types of events. Financial impacts vary greatly by season. Our average room rate for the year is $90 to $92 a room. Our typical stay on average is 2 nights. Hockey doesn’t result in much of a change in foot traffic. It’s really good year over year for us. The following surmises overall impacts in 2011.  Toy Story cast: 238 room nights  Toy Story production team: 149 room nights  Visiting hockey teams: 143 room nights  Thunder Birds: 242 room nights  2011 total: 850 (including estimate on graduation and other ShoWare Center attributed guests) out of a total of 30,685 room nights.

 

Tourism and Marketing
Questions regarding complimentary facilities and attraction located in near ShoWare Center were asked. Kent Station and downtown were the most commonly mentioned facilities. In addition, stakeholders were asked about current marketing efforts and their effectiveness. Complimentary Facilities and Attractions   Most people want to park once and walk to where they’re going to go. Downtown Kent. Kent Station and the associated Sunday Farmer’s Market.

Kent ShoWare Center Economic Impacts

November 2012

Page 50

      

Nothing on the same scale as ShoWare Center. The Courthouse draws lots of people, who aren’t necessarily in a spending mood. Its good professional business spending. Some people are drawn to the downtown core. I guess I can’t really think of Kent as a place to go for recreation or events. I don’t see anything to come to Kent for. It’s like Auburn. It’s got restaurants and a movie theater, stuff everywhere has. I don’t see anything else. Maybe the ice rink. Kent Station definitely attracts people. It seems to be doing a good job with Kent Station. Kent Station, meaning you can go there before and after events. Downtown has that opportunity but not as much as Kent Station. For example, I’m able to walk to games from my downtown Kent office. Not much else besides this. Kent Station certainly, with its restaurants. Also us, with our mini-golf, batting cages and bar. There are plenty of hotels. Also Wild Waves, which really isn’t that far away. Last September I took my salesmen down to Kent Station as an appreciation event. I do like that area down there. I see it becoming more relevant to me as my sales force becomes larger, because we take our clients to eat in Kent Station. As Kent keeps getting nicer, our employees and customers want to do things in Kent. It’s nice. Our ability to move in that area is improved the nicer it is and more reasons we have to go there.

Marketing and Promotion of ShoWare Center and Kent    I think they do a good job. We have a chamber and the Kent Downtown Partnership. I think they do a good job. The Mayor does a good job as well. The City does a good job. The promotions at Kent Commons are good. The City has a done a good job. I can’t think of anything more.  There is the South Seattle Tourism Network  T.V. ads might be a good idea  The ShoWare Center website and email blasts works well  The addition of the new sign in front of ShoWare Center was important and helps a lot. It lets people know what happening at the venue. To be blunt, we’re not marketing it at all. Outside of the promoter, we’re not getting it out to the people  There are a lot of people within 5 miles that haven’t been there.  Tourism can grow through an actual marketing program, that’s where we are right now.  There’s no good signage and you won’t see ShoWare Center if you aren’t looking for it.  If we’re ever going to go the next level (City of Kent and ShoWare Center) we actually have to promote it. I don’t know if Kent is a destination. The downtown area is really nice. There are businesses there that are useful to my business and I can bring clients there.

Kent ShoWare Center Economic Impacts

November 2012

Page 51

 

Trying to find a way to promote ShoWare Center and Downtown Kent is a top priority. There is just a wonderful product and we just need to figure out how to promote it. The City is doing a good job. Merchants need to get more involved (mentioned downtown/Old Kent merchants). Educating towards this would help. It would help them learn how to attract more business down here. If there was more info in ShoWare Center on what else is in Kent that would be great. Linking events such as the softball tournaments in town, and a concert at night would make sense.

Event Mix
Stakeholders were asked to describe events that impacted them the most (positively).    Would like to see the Mist. We’re busy for the Thunderbirds. Older concerts, we do well, too. We were really busy for Perfect Circle. We are busier for older groups, nostalgic groups. Newer groups don’t drive traffic here that much. Have more! The events that seem to attract good crowds are the family events, Globetrotters, Circus, Disney on Ice, NBC skating show televised nationally, Skate America coming in October. That one in particular should bring in people overnight. 600 hotel rooms for several nights in a row. Should have a little more impact. Male oriented events like wrestling, hockey and sporting events in general. Hockey games and concerts are a good thing and good events to have. I’d like to see family friendly events and other kid type events, whatever those may be. (Sponsor) Business expos are good (mentioned several that have taken place in the last year or two). They are good for meeting and are also good for downtime in the summer when the arena is not very busy. (Real Estate) Concerts are a big draw. Kent Station probably sees the biggest impact. Concerts are better. The clientele is associated with dining out and gaming more. Such events complement dining and gaming well. (Entertainment) Definitely sporting events. (Restaurant) Sporting events have the most positive impact. (Restaurant) Thunderbirds games provide the most positive impact because of the hockey skating nature of games. The Thunderbirds games encourage skating. Even a concert provides exposure (for my business) for people from out of town. (Entertainment) Perfect facility for HS Grads in particular Impactful Events (Hotel)  Disney on Ice, we got the entire cast and crew.  Hockey is the most impactful.  We get 90% of opposing teams to stay with us (estimated)  Concerts and associated crews stay with us, such as the upcoming Ladies Night Tour.  Graduation events (second most impactful) November 2012 Page 52

         

Kent ShoWare Center Economic Impacts

The more important impact is the teams/crews staying with us than the people staying in town to see the shows/events.

Use as a Business Facility or Tool
Stakeholders were asked about their use of ShoWare Center as a business venue and tool. A range of responses were given with some stakeholder never using the facility to others valuing the facility as a networking tool.       No. I do most of my business in the north end. I didn’t know that you could advertise in ShoWare Center. We have used it through our sponsorship, but have not hosted business functions there. Our suite has been used for our sales team during Thunderbirds games. I heard it was fun and they enjoyed it. (Sponsor) I don’t see us using the ShoWare Center for these types of events. We have nothing against the facility, I just don’t see us using. (Sponsor) We are a Thunderbirds sponsor. Our sponsorship is a trade sponsorship. It is working well and we are in our 2nd or 3rd year as a sponsor. Yes, I purchased a sweet in the past and have bought tickets for clients. I had 14 people in the suite. It was intimate and everyone could talk to one another. It was a great way to interact. Since then, people that were in the suite have attended events again, coming from outside Kent. (Real Estate) I will probably do it again more often in the future. It’s a good way to network with clients and potential clients. I did some advertising but I didn’t get enough out of it. (Real Estate) Yes we have used the facility for customer appreciation events. Over the last few years we have had season tickets to the T-Birds and have taken clients to a suite. We have also taken clients to some other events, such as concerts and circus events. Very satisfied with the facility.(Entertainment) I’ve attended several events. My visits were more often for business functions such as Chamber events. If we have events we use our own facility. (Restaurant) We did look at sponsoring the T-Birds but it was too costly for a small business. We haven’t looked at anything through ShoWare Center (only looked at sponsoring the Thunderbirds). Yes, we had an event there and it was satisfactory. (Restaurant) Through the Thunderbirds we help them by supplying rental skates for season ticket holders during the mid-winter season ticket holder’s promotion. We’ve loaned skates for several other events as well. It was very good. We do a little cross advertising with ShoWare Center through the youth hockey association. (Holiday Inn) I’ve been for a trade show/business expo. I’ve been to a couple of State of the City speech’s and networking events as well. We have meeting rooms at our building. We’ve had booths at expos taking place at ShoWare Center, but that’s it. We don’t have a need for such a large facility. We advertise on the Thunderbirds website, in radio ads and in the game programs. We have no signage at the arena. All of our advertising is through the Thunderbirds. We’d like to discuss accommodations

 

   

Kent ShoWare Center Economic Impacts

November 2012

Page 53

for performers and crew, as there is no formal relationship right now. There are things, like this, that we can do to draw more people from ShoWare Center.

Improvements to Kent and ShoWare Center
A number of stakeholder mentioned ways to improve both Kent and ShoWare Center. Comments ranged from better use of parking lots to timing of events.       They could do a better job of using the parking lot for sales that we have not done. There are many days where the arena is empty. Car dealers, RVs, boats, etc., could be something we could use more of. I’m an advocate for us to start to charge for parking. More activities going on at ShoWare Center. More positive advertising. The train goes to Kent Station, but we need more frequent transit and light rail. We need easier parking at Kent Station. Suites are expensive. Tickets for Mariners games suites are $90 but include food credit. Cost of tickets and food/drink for suites at ShoWare Center events adds up. Deals like this may help fill suites at ShoWare Center. We need a higher quality food store, like a Metropolitan Market or a Whole Foods. Maybe they say it can’t be supported, but I think the Kent market is ready for this. People have money and they want to spend it. The lack of alternatives drives people out of their neighborhood and into Tukwila and South Center. I see what happ ens in other places and we would draw lots of people if there was something like that here. The movie theater is our biggest consistent draw. It pulls people in consistently, if the movie theater went out of business I would fear for the entire station. Time of day, day of week is important to us. Having an event on a Friday night hurts us and an event on a Tuesday night in February helps us. We have looked at joint partnership and it seemed really expensive to capture people who will already come here (like the hockey folks) but I want to talk to the Disney people. I want to target my advertising to those people. I think Kent Station shouldn’t fight ShoWare Center over the parking we should collaborate somehow, for example, with a shuttle. That would alleviate the traffic problem. The Green River runs through the heart of Kent. Cities that have taken advantage of natural features such as rivers and lakes have greatly benefited (e.g. San Antonio). A shopping/commercial development along the river might be an enhancement to tourism.

Thunderbirds Interview
Community Attributes spoke with a representative of the Thunderbirds in order to gain an understanding of their operations and impacts on Kent. Team Impacts    30 people typically travel with visiting teams requiring 15 to 19 rooms We give them a list of hotel partners Thunderbirds generally live with Kent families. Some team members are still in high school, some are done. They are integrated into the community. November 2012 Page 54

Kent ShoWare Center Economic Impacts

 

Thunderbirds do school visits $130,000 in donations given back from Thunderbirds Foundation, mostly in Kent

Operations         Training Camp which ends in August brings a lot of people to town. This includes tryouts with 70 kids and their families staying in town for 3 to 7 days Grown attendance each year Season ticket holders are south centric but range from Olympia to Everett We sold a few new suites in the off season Advertising and sponsorship have grown each year Majority of original sponsors and advertisers have renewed Renewed 95% of season ticket holders from Key Arena 16 FTE, 20 part time on games nights

Being in Kent         We’re happy with Kent and the facility Tremendous atmosphere Generally, it’s been really good Not a single thing to change design wise Location has worked out really well. Next to Kent Station with restaurants is tremendous Easy access off of the freeway Great to have a community ice rink nearby

Design, Location and Operations
Good Location The majority of stakeholders responded positively to the location of ShoWare Center. Easy freeway access, proximity to downtown and proximity to transit were commonly cited. The following is a sampling of stakeholder responses:         The particular area that it is in is nice. Clients are taken there. It’s an interesting location. It’s a convenient location for transit with the train nearby. The location is fine for us. It’s close to us which is nice. I’m very satisfied with the location and presence. It’s only 3.5 miles away from our location. The ease of getting in and out of the facility is great. Free parking is great. Has easy access. Location off of Highway 167 is good and provides easy access. It’s excellent. Its 1.5 miles from the hotel. Parking is easy and close. It’s located in the right spot, in a commercial area near a freeway and Kent Station. We event shuttle guests to and from ShoWare Center. (Hotel)

Kent ShoWare Center Economic Impacts

November 2012

Page 55

ShoWare Center Facility and Design Comments concerning the facility design and operations were positive. Stakeholders found the facility clean, well planned and mentioned that the facility serves as a symbol of what the Kent is trying to accomplish.           It’s fine, overall it’s OK. It’s nice to have a local activity/group to sponsor. Overall, we’re happy to have it in Kent. It’s great and shows what we’re trying to do. Starting to recognize it as a place to (people in Kent and outside of Kent). It’s slowly getting better recognition. They have a really good product. I’ve been to many different size events at ShoWare Center and they do a good job with service and getting people involved. It’s an awesome and great facility. I am a big advocate. It’s nice to have a local facility like this so we don’t have to go to Tacoma or Seattle. It’s clean and nice. I don’t have any feelings towards it. It’s perfectly fine. There are no downsides to it. I like the facility. It has a good layout and is a nice enough design for a stadium. No strong feeling one way or another. For the immediate person that lives here it is very convenient. I’m very pleased with facility. We’re right down the street from it. The venue is great. It has great site lines (for patrons inside). Thunderbirds provide great exposure to skating. There isn’t any better event for us. We get a lot of stays from opposing hockey teams. ShoWare Center has added to the City and brought it up a level. Kent Station and ShoWare Center are the top things in the area. Great, I haven’t ever heard of any negatives about it. Good for hotels. It’s laid out well. Its setup is user friendly.

Customer Base
The customer base of businesses interviewed varied between business types. Restaurants and entertainment businesses generally draw a more locally oriented customer base. Several other businesses, though, mentioned drawing from a more broad geography. This included non-retail businesses such as hotels and entertainment facilities.     Most customers are local and come through word of mouth. There are many from out of town (some from far away). (Restaurant) Our customer base in general is the Puget Sound region. We sell as far east as Marysville, as far south as Yelm, as far east as North Bend and as far west as Silverdale. Our customers are mostly families with children. (Sponsor) 50% come from within 3 to 5 miles of downtown Kent. We also have many deals in Bothell and Tacoma. (Real Estate) Most of our customers are local Kent residents and live within 5-10 miles of our location. (Entertainment)

Kent ShoWare Center Economic Impacts

November 2012

Page 56

  

Our customers are from all over because of craft brewery. We’re able draw tourists plus Kent locals. It also depends on the time of year. In the summertime we draw more tourists. (Restaurant) Most are Kent residents, league bowlers, 90% are regulars (Entertainment) Our customers are between 35 and 55, males and females. Lunch draws working professionals and local businesses up and down the Highway 167 corridor. Dinnertime is more family and people that live in and around Kent, Tukwila, and Auburn. (Restaurant) We draw from the Kent area and from all over the region. We draw people from Issaquah to the north, and Puyallup to the south and also people from Bremert on. The hockey league draws teams from Tacoma, Lakewood and even north of Everett. (Entertainment) It depends on the season. September through May, it’s mostly corporate clientele and busier on weekdays. From June through August there is a mix of corporate and leisure guests and/or general travelers. This includes sports teams and families. Most customers are from the U.S. with some from Canada. Some customers are international and come from Japan and London, for example. (Hotel)

Kent ShoWare Center Economic Impacts

November 2012

Page 57

Sign up to vote on this title
UsefulNot useful