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XL CENTER MARKET DEMAND & FINANCIAL FEASIBILITY STUDY UC ees Le) CSL INTERNATIONAL O WIRE atc es planning & advisory firm Sein ae Tae te 0g © Founded in the late 1980s by partners of Coopers & Perc © Offices in Dallas & Minneapolis © Involved in aver 2,000 engagements © Consultants bring over 200 collective years of Pacis © Provide in-depth information grounded in market ities © Experience with 50+ municipal arenas and stadium 100+ collegiate arenas and stadiums, and two-thirds of all NBA/NHL arenas spain FACILITY CONTEXT (arasr ‘tea. RUPE 357M 510000000 SFguwen ae gBcomn Borer, suai si20m anM ‘100,000,000 some wee xt ARENA ssmop00,no * i ‘$16 <= ‘$100 ion Sr me ne Ys 7 17 YA 78H 8K FD 9 NE E510 S788 HP 150 RL 1729 5 OE LE IT 18 EO 20 PE AE Rk Fens HE 2x EL 201 2H? ZO 2425 26207 ‘YEAR OPENED ‘000000 STUDY SCOPE & METHODOLOGY STUDY OBJECTIVI nan am recommendations tl EDT te nels ol se ens SURVEY OVERVIEW KEY TOPICS © Current attendance © Ticket purchase history © Attitude towerds renovation © Interest in attending future events © Interest in new premium seat concepts © Sensitivity to various price points © Preferred amenities and design elements © Impact of new premium on current purchases © Demographic and socioeconomic data RESPONDENTS POTENTIAL RENOVATION ATTITUDE SELECT NEGATIVE COMMENTARY Concerned about cost to taxpayers It the arena does not bring in more events, it won't be worthwhile Cost will likely outstrip the economic benetits The State has much bigger priorities than the XL Center ‘Anew facility would make more sense cis O74 WwW 88% OF RESPONDENTS HAVE APOSITIVE ATTITUDE REGARDING A POTENTIAL XL CENTER RENOVATION SELECT POSITIVE COMMENTARY © A viront erena provides vibrancy, excitement and additional business ‘opportunities to Hertford © Thesurrent XL Genter is old, dark and nt a fun place to attend an event. A roncvation is desperately needed © Its important to have a first-class ‘evert venue inthe capital city © TheXL Center is an important face of Hartford, soit needs to represent it well BARRIERS TO ADDITIONAL EVENT ATTENDANCE 1 OroraltCost of (“attendance | Time Constraints | Poor Customer Service \ tackerFamiy-Fendy / | options nthe Arca, 7 a ' aC ae W% ro DiteutyParkig The GreniGunlly Lhe Farhi GneTEke may Other Er Wark arena Condken Eve Ting Fay Commarests PMT EVENT LEVEL CLUB @Aruat membership wih frst right to purchase al rena even tikkete @Access to club lounge located near ‘seating area beneath seating bow p CONCOURSE CLUB {© Aroual membership wi fest right to purchase altar event kets © Access to club lounge located on the concourse in preity to seat Uohind tho backet/ geal) Looe cLuB SEATS © Seats locoted in large, communal box with connected private lounge Tickets oll arene everts includes © Atinctusve food & beverage service with cash bar EL PRIVATE BOXES @ Seating for & to 6 people in large, comlertable leather chairs and access {oaprivateorsemi-priate lounge space © Tickets to all arene vers included © lo-tox wait service CONCEPTS TESTED BUNKER SUITES (© Bout seating for 8-12 people with iret access oundergrcundprivate lounge space (© Tickets to all arena evensnched \CKET SUITES © Approximately hall the size of a ‘wional suite (© Seats open tothe bow, th pile Booth space in communal lounge located directly behind seating area © Tickets tall arena events incase EXECUTIVE SUITES. {© Seating for 12:16 people in the bowl nd at a drink a (© incase private insu lounge area with retrigerator and flat screen televisions © Tickets wo allarena evens included CONCEPT INTEREST & PRICE SENSITIVITY SAMPLE RESULTS: nates ‘%% 19 OF RESPONDENTS SHOWING INITIALINTEREST IN THE LOGE SLUB CONCEPT MAINTAINED INTEREST UPON REVIEW OF FURTHER PRODUCT DETAILS. Interac 52% LOGE CLUB SEAT PRICE SENSITIVITY Participants noting an interest in the Loge Club Seat concept were asked to indicate their relative willingness to purchase a seat at three different annual price points A 3 = aire ESTIMATED DEMAND & REVENUE POTENTIAL SAMPLE RESULTS: LOGE CLUB SEATS a = re $486,000 $526,500 81 $7,860 TOTAL ANNUAE WEIGHTED DEMAND AVERAGE PRICE KEY QUALITATIVE oe A “vital community asset will support a renovated arena o fe Fan Broad segmentation of the premium program would be well-suited to Hartford's diverse corporate base FEEDBACK | Bringing premium seating to the concourse and event levels will be critical to ensuring corporate buy-in Price ranges tested for various premium concepts are appropriate for the market DEMAND & ANNUAL REVENUE POTENTIAL MARKET RESEARCH EQUATIOI Feo) Moa Event Lavel Cub Seate urea oe eae ee meh : : si sana ESTIMATED UTILIZATION KEY PROMOTER FEEDBACK © Competitive pressures with Mohegan Sun i Arena limit significant utilization upside © Significantly enhanced _back-of-house space could provide differentiation from other area venues © A renovation is needed to maintain the existing base of utilization ANTICIPATED UTILIZATION IMPACTS eee Re Coen Naren (Brae) teres Less Less Some Some Less Loss ‘Sight Higher Same Same Same Sihty Higher | Slight Higher Less Same Same Slightly Higher Same Stghty Higher Same Slightly Higher Less Same Same Same PROJECTED FINANCIAL OPERATIONS ES aCe Revenues vont Services ret siyniute | sven2se sze0000 | seman | $2,187,000 Aneilary Services, net sanssaaa | sr7027e1 sezio00 | 52304000 | $2404000 KEY REVENUE DRIVERS Advertising sinszaae | sior7sia sissqooo | $i3sio00 | $14sz000 Premium Seating sions | sreuco0 szrrep00 | $2262.00 | $254,000 Bung Nang Rights saéooo0 } s4eeon0 surso00 | 510000. | $825.000 NEW PREMIUM etal Rent™ $0 $0 susoo0 | simow | $1700 f Total Revenves 6205.00 | seamen sate4o0o | $oces,a00 | $9,604,000 Ee uaiNe opeatIo EXPENSES Solves 252sase | $2715 048 ssarzaco | $saxso00 | $2.876.000 ates suraraoe | $196,086 2.12900] $2,207000 | 2.273.000 INCREMENTAL Poyrl Toes & Benefts groan | srmier swueaoo | 214000 | $1003.00 Ses Marking re s1uso00 | $orz.000. | s9i¢000 a Equipment Kentate, Kopare &Maincenance | saursie | $aez25 seese00 | serro0 | sas1000 Monagernent Foes suas | sa75921 si4og00 | $uez000 | $475,000 Common Area Maintenance! sarso00 | sazo995 szanao0 | szsro00 | s24uo00 insurance szans02 | 205.988 $2000 | 002000 | $312,000 Professional Fees soot | sza702 sano | 2x00. | $30000 other grossa | $08Kt66 ssvzan0 | $euio00 | $867000 Teta Operating Expenses sraensao | $6,043,809 seazsa00 | $ag%so00 | si0.2t1o00 issues, won retaining avers, CRDA wil ex ou 19755ofreiVenlertatment space lng Tub ret ot 12 per gure on! (elassune, upon eatng omer of aia, CRDA tachi carom face resin ta Cane ree Maran eres extn FINANCIAL OPERATIONS COMPARISON $916,000 $680,000 $515,000 $266,000 Le a racy raoiurve rreurys raciurvs ~$482,000 Aossn ~$550,000 $1,006,000

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