MARKET STUDY: VETERANS MEMORIAL COLISEUM OPTIONS SP A 5 J. Isaac Consulting olu?ons group LONGITUDES group I I I 5. King?. . . - - ?3?33 g" . r951         July  27,  2015       Ms.  Susan  Hartnett   Spectator  Facilities  and  Development  Manager   City  of  Portland   1120  S.W.  Fifth  Avenue,  12th  Floor   Portland,  OR  97294       Dear  Ms.  Hartnett:       Conventions,   Sports   &   Leisure   International   (“CSL”),   in   conjunction   with   J.   Isaac   Consulting,   Venue  Solutions  Group  and  Longitudes  Group,  is  pleased  to  present  a  market  study  for  various   renovation/remodel/transform   options   for   the   Veterans   Memorial   Coliseum   (“VMC”).     The   following   report   summarizes   the   study’s   research   and   analyses   and   is   intended   to   assist   community  leaders  in  making  informed  decisions  regarding  the  VMC’s  future.       The   information   contained   in   this   report   is   based   on   estimates,   assumptions,   and   other   information  developed  from  research  of  the  market,  knowledge  of  the  public  assembly  facility   industry  and  other  factors,  including  certain  information  provided  by  the  City  of  Portland,  Rip   City   Management   and   others.     All   information   provided   to   us   by   others   was   not   audited   or   verified  and  was  assumed  to  be  correct.    Because  the  procedures  were  limited,  we  express  no   opinion  or  assurances  of  any  kind  on  the  achievability  of  any  projected  information  contained   herein  and  this  report  should  not  be  relied  upon  for  that  purpose.    Furthermore,  there  will  be   differences   between   projected   and   actual   results.     This   is   because   events   and   circumstances   frequently   do   not   occur   as   expected   and   those   differences   may   be   material.     We   have   no   responsibility  to  update  this  report  for  events  and  circumstances  occurring  after  the  date  of  this   report.       We  sincerely  appreciate  the  opportunity  to  assist  you  with  this  project,  and  would  be  pleased   to  be  of  further  assistance  in  the  interpretation  and  application  of  the  study’s  findings.           Very  truly  yours,           CSL  International       Conventions,  Sports  &  Leisure  International   7501  Lone  Star  Drive,  Suite  200  •  Plano,  TX  75024  •  Telephone  972.491.6901  •  Facsimile  972.491.6903   TABLE OF CONTENTS           1. INTRODUCTION ................................................................................................................. 1     2. HISTORICAL OPERATIONS ................................................................................................. 6     3. STAKEHOLDER INPUT ...................................................................................................... 15     4. MARKET CONDITIONS ..................................................................................................... 25     5. COMPARABLE VENUE BENCHMARKING .......................................................................... 53     6. DEMAND ESTIMATES ...................................................................................................... 85     7. FINANCIAL PRO FORMAS ................................................................................................ 91     8. ECONOMIC AND FISCAL IMPACTS.................................................................................. 108     9. RISK ASSESSMENT ........................................................................................................ 115           J. Isaac Consulting   1 Introduction A 5NENUE uhons group LONGITUDES . 1. INTRODUCTION 1   The   Veterans   Memorial   Coliseum   (“VMC”   or   “Memorial   Coliseum”)   has   served   the   Portland   community  as  a  spectator,  meeting  and  exhibition  facility  for  various  sports,  entertainment  and   community  events  for  the  past  55  years.         Opened  in  1960,  the  VMC  offers  a  seating   VETERANS  MEMORIAL  COLISEUM Exterior capacity   that   ranges   from   9,135   permanent   seats   in   the   seating   bowl   to   12,000   seats   with   the   use   of   temporary   seating   on   the   arena   floor.     In   addition,   the   VMC   contains   approximately   40,000   square   feet   of   exhibit   space   and   17,913   square   feet   of   meeting   space   in   seven   meeting  rooms.     The   VMC   served   as   Portland’s   primary   sports   and   entertainment   venue   until   1995,   when   the   19,441-­‐seat   Moda   Center   (previously   called   the   Rose   Garden   Arena)   opened   adjacent   to   the   VMC   on   the   Rose   Quarter   campus.     Many   events   that   were   hosted   at   the   VMC,   including   the   National   Basketball   Association   (“NBA”)   Portland   Trail   Blazers,   moved   to   the   Moda  Center,  which  offered  many  enhancements  over  the  VMC.    The  VMC  also  served  as  the   primary  convention  and  exhibition  facility  in  the  Portland  market  until  the  Oregon  Convention   Center   opened   in   1990   a   few   blocks   away   from   the   VMC.     The   Portland   Winterhawks   (a   Western  Hockey  League  “WHL”  junior  ice  hockey  team)  remained  as  the  primary  tenant  in  the   VMC.       While   the   utilization   and   financial   VETERANS  MEMORIAL  COLISEUM performance   of   the   VMC   has   been   Interior negatively   impacted   by   the   Moda   Center   and   Oregon   Convention   Center,   the   VMC   has   continued   to   serve   as   an   important   secondary   spectator,   meeting   and   exhibition   facility   for   the   Portland   community.     The   venue   hosts   over   100   events   annually   including   about   one-­‐half   of   Portland   Winterhawks   games,   the   Rose   Festival’s   Grand   Floral   Parade,   Oregon   School   Activities   Association   (OSAA)   championships   for   wrestling,   cheerleading,   and   dance/drill   competitions,   Fright   Town,   concerts,   family   shows,   area   high   school  graduations,  consumer  shows,  religious  events  and  community  events.         J. Isaac Consulting   1. INTRODUCTION 2   The   VMC   is   operated   under   common   management   with   the   Moda   Center   by   Rip   City   Management,  a  company  affiliated  with  the  Portland  Trail  Blazers.    The  common  management   of   the   VMC   and   Moda   Center   allows   for   coordination   of   event   booking   and   operational   efficiencies   that   result   in   reduced   overhead   operating   costs   for   the   VMC.     Despite   certain   operating  efficiencies  created  by  common  management,  the  VMC’s  operations  generally  must   be  subsidized  each  year  because  the  current  age  and  condition  of  the  VMC  limits  the  ability  to   book   events,   limits   revenue   generating   capabilities,   results   in   higher   event   setup   costs,   and   increases  repair  and  maintenance  costs.       In  most  cases,  other  communities  that  have  developed  a  modern,  large-­‐scale  arena  in  the  past   15  to  20  years  have  demolished  the  older  arena  or  re-­‐purposed  it  for  alternative  uses.    Over  the   past   15   plus   years,   the   City   of   Portland   has   explored   various   options   for   the   VMC   including   varying   levels   of   renovations,   remodeling   and   demolition   without   any   resolution.     The   most   recent   planning   was   completed   in   2012   and   focused   on   a   relatively   modest   renovation   of   approximately  $30  million,  but  was  not  implemented.      As  a  result,  the  VMC  continues  to  age   and  the  City  has  deferred  certain  capital  investments  in  the  VMC  until  its  future  is  determined.       Under  new  leadership,  the  City  has  expressed  its  desire  to  consider  how  the  VMC  may  continue   to  be  used  as  a  spectator  facility  and  meeting/exhibit  hall  in  order  to  maintain  its  current  uses   including  community  and  special  events.  To  assess,  and  present  a  range  of  options  for  the  VMC   for  City  Council  consideration,  information  about  three  options  is  being  developed  including:  1)   Renovate/Remodel/Transform   Option,   2)   Continue   Current   Operations/Temporary   Closure   Option,   and   3)   Permanent   Closure/Deconstruct   for   Future   Redevelopment.     In   relation   to   the   Renovate/Remodel/Transform  Option,  the  City  identified  five  (5)  renovate/remodel/transform   scenarios  that  are  designed  to  extend  the  useable  life  of  the  VMC.    These  scenarios  include:       Scenario  1:   Essential  Repair  &  Replacement         This   VMC   improvement   scenario   focuses   on   improvements   related   to   life   safety/ADA   upgrades/corrections   and   repairs/replacements   to   building   systems   necessary   to   meet   current   codes.     Scenario   1   Essential   Repairs   &   Replacement   upgrades   are   envisioned   to   result   in   some   cost   reductions   and   operational   savings  due  to  improvements  to  the  building’s  shell,  structure  and  systems,  but   are   not   envisioned   to   materially   drive   incremental   event   activity   or   facility   revenues.     These   improvements   are   anticipated   to   increase   the   useable   life   of   the  VMC  by  10  to  20  years.     Scenario  2:   Tenant  and  User  Experience  Enhancements     This   scenario   includes   all   Scenario   1   Essential   Repairs   and   Replacement   improvements   plus   modest   amenity   upgrades   and   functional   renovations   that   could   increase   the   ability   of   the   VMC   to   host   additional   events   and   generate       J. Isaac Consulting   1. INTRODUCTION 3   increased   attendance,   or   are   necessary   to   retain   the   Portland   Winterhawks   (“Winterhawks”)  as  the  primary  tenant.           Scenario   2   Tenant/User   Experience   Enhancements   are   anticipated   to   result   in   some   cost   reductions   and   operations   savings,   as   well   as   limited   revenue   enhancements  due  to  the  expansion  of  facility  use  and  amenity  enhancements.   Improvements  under  Scenario  2  that  could  lead  to  increased  event  marketability   and  revenue  generation  include  seat  replacement  (increasing  the  width  from  19”   to  22”),  modest  exhibit  hall  upgrades,  upgraded  event  level  kitchen,  a  new  bar,   improved   and   expanded   concessions   points-­‐of-­‐sale,   a   new   event   terrace,   audio/visual   and   technology   enhancements   including   HD   monitors   throughout   the  concourse,  acoustical  enhancements,  installation  of  a  VIP  club  space,  a  half-­‐ house  curtaining  system,  Winterhawks  retail  store  and  increased  rigging  capacity   at   the   north   end,   among   other   improvements.     Scenario   2   improvements   are   anticipated  to  increase  the  useable  life  of  the  VMC  by  20  to  30  years.     Scenario  3:   Strategic  Market  Enhancements     Scenario   3   includes   all   Scenario   1   Essential   Repairs   and   Replacement   and   Scenario   2   Tenant   and   User   Experience   Enhancements   plus   strategic   market   enhancements   designed   to   increase   event   and   attendance   activity   at   the   VMC   through  enhancements  including  new  patron  amenities/seating  concepts  such  as   a  north  end  party  deck,  completely  renovated  concession  areas,  additional  LED   monitor  signage,  new  graphics  package  for  branding/advertising,  a  new  loading   dock   with   multiple   bays,   expanded   west   concourse,   added   shore   power,   upgraded   public   spaces,   new   box   office   and   other   strategic   improvements.       Scenario  3  improvements  are  anticipated  to  increase  the  useable  life  of  the  VMC   by  30  to  40  years,  inclusive  of  a  replacement  reserve.     Scenario  4:   Dynamic  Floor  /  Indoor  Track     Scenario  4  Dynamic  Floor  /  Indoor  Track  is  based  on  a  concept  developed  in  2013   as  part  of  a  study  of  the  potential  to  host  a  major  indoor  track  &  field  event  at   the  VMC.  This  scenario  includes  all  Scenario  1  Essential  Repairs  and  Replacement   improvements,  will  add  a  robust  suite  of  enhancements  and  amenities  and  will   make  significant  modifications  to  the  building  to  accommodate  a  dynamic  floor   system,   engineered   and   sized   to   meet   the   international   standards   set   by   the   International   Association   of   Athletics   Federations   for   an   indoor   track   and   field   facility,  as  well  as  maintain  the  multi-­‐purpose  nature  of  the  VMC  and  its  ability  to   host   concerts,   aquatic,   cycling   and   other   spectator   and   community   events.   Scenario  4  improvements  are  anticipated  to  increase  the  useable  life  of  the  VMC   by  30  to  40  years,  inclusive  of  a  replacement  reserve.         J. Isaac Consulting   1. INTRODUCTION 4   Scenario  5:   Open-­‐Air  Arena     This   scenario   involves   significant   modifications   to   the   building   to   convert   the   VMC   to   a   covered,   open-­‐air   venue   that   would   primarily   serve   as   a   mid-­‐sized   concert  venue  while  continuing  to  host  some  of  the  current  users  of  the  VMC  in   an  outdoor,  covered  environment.    The  unique  aspect  of  this  scenario  would  be   removal   of   the   glass   from   the   VMC’s   outer   walls,   which   would   eliminate   the   need  for  certain  essential  repairs/replacements  (such  as  the  HVAC  system).    Part   of  the  seating  bowl  would  be  removed  to  allow  for  a  demountable  stage  and  a   view   of   downtown   Portland   from   within   the   arena   bowl.     Scenario   5   improvements  are  anticipated  to  increase  the  useable  life  of  the  VMC  by  30  to   40  years,  inclusive  of  a  replacement  reserve.     In   order   to   assess   the   market   potential   and   business   case   for   the   VMC   under   each   of   the   identified   renovate   and   remodel   scenarios,   the   City   engaged   a   consulting   team   led   by   Conventions,   Sports   &   Leisure   International   and   supported   by   various   specialty   sub   consultants   including   J.   Isaac   Consulting,   Venue   Solutions   Group,   and   Longitudes   Group.       The   consulting   team:       • reviewed   previous   STUDY'METHODOLOGY Market'&'Business'Case'Analysis consultant   reports   VMC'Renovation'and'Remodel'Options and   background   information   on   the   Key Project Market VMC;     Stakeholder Condtions Interviews   • reviewed   historical   Comparable Venue Historical VMC events,   attendance   Benchmarking Operations and   financial   trends   of   the   VMC   to   Market Review Previous Demand Competitive provide   a   Planning Venues framework   for   future   operating   potential;       Financial Pro Formas, Economic • interviewed   key   and Fiscal Impacts & Risk Assessment project  stakeholders   including   representatives   of   the   Office   of   Management   &   Finance,   Portland   Development   Commission,   Rip   City   Management   and   Portland   Winterhawks   as   well   as   numerous   other  organizations  representing  current,  past  or  prospective  users  of  the  VMC;           J. Isaac Consulting   1. INTRODUCTION 5   • compiled   and   analyzed   market   data   regarding   demographic,   socioeconomic,   spending   and   other   trends   in   the   Portland   Metropolitan   Statistical   Area   (“MSA”)   and   the   Pacific   Northwest  Region;       • identified  and  analyzed  comparable  cities/venues  to  provide  a  benchmark  from  which  to   assess  the  market  potential  for  various  enhancements  of  the  VMC;       • identified   and   analyzed   current   and   prospective   competitive   venues   to   assess   the   impact  that  competition  may  have  on  an  improved  VMC;       • estimated   event   demand   and   potential   annual   attendance   for   the   VMC   under   various   renovation  scenarios;  and,     • developed   a   business   plan   for   the   various   renovate   and   remodel   options   to   include   financial  pro  formas,  economic  impacts  and  risk  assessment.     The  study’s  findings  are  presented  in  the  following  sections:     1. Introduction   2. Historical  Operations   3. Stakeholder  Input   4. Market  Conditions   5. Comparable  Venue  Benchmarking   6. Demand  Estimates   7. Financial  Projections   8. Economic  and  Fiscal  Impacts   9. Risk  Assessment     This  report  outlines  the  key  findings  of  a  market  study  for  various  renovate/remodel/transform   options   for   the   VMC.     The   findings   contained   in   this   report   are   based   on   certain   parameters   including:    (a)  the  VMC’s  status  as  a  National  Register  of  Historical  Places  in  recognition  of  its   architectural   significance;   (b)   the   VMC’s   status   as   a   veterans   war   memorial;   (c)   the   City’s   desire   to  maintain  current  uses/event  mix  including  community  and  special  events;  and  (d)  the  City’s   desire  for  VMC’s  continued  use  as  a  spectator  facility  and  meeting/exhibit  hall.     The  report  should  be  read  in  its  entirety  to  obtain  the  background,  methods  and  assumptions   underlying  the  findings.       J. Isaac Consulting   2 Historical Operations LONGITUDES . 2. HISTORICAL OPERATIONS 6   An  analysis  of  the  historical  operations  of  the  VMC  serves  as  a  basis  for  quantifying  the  existing   market   and   estimating   any   incremental   benefits   that   may   likely   occur   with   various   VMC   renovate   or   remodel   options.     Specific   items   analyzed   include   trends   related   to   events,   attendance,   seasonality,   event   profitability   and   revenues   and   expenses.       Accordingly,   the   assessment  of  the  VMC’s  historical  operations  is  presented  in  the  following  sections:       • Utilization;   • Seasonality;   • Attendance;   • Event  Profitability;   • Revenues  and  Expenses;  and,   • Spectator  Facilities  Fund.         Utilization     The   VMC   is   currently   home   to   several   tenants,   or   regularly   occurring   events,   such   as   the   Winterhawks,   Grand   Floral   Parade,   FrightTown,   high   school   graduations,   and   certain   high   school  playoffs/championships  as  well  as  a  variety  of  other  sporting  events,  concerts,  religious   events,  family  shows,  conventions,  trade  shows  and  other  events.    The  chart  on  the  following   page  depicts  the  VMC’s  event  activity  over  the  past  20  years.     As   mentioned   previously,   prior   to   the   Moda   Center   opening   in   1995,   the   VMC   served   as   the   primary  sports  and  entertainment  arena  in  Portland.    In  fiscal  year  1993-­‐94,  the  VMC  hosted  a   total  of  246  events  including  46  Trail  Blazers  games,  41  Winterhawks  games  (full  schedule),  38   other   sporting   events,   27   convention   days,   20   trade   shows   days,   19   family   show   performances,   17  concerts  and  17  ice  shows,  among  other  events.     Over   time,   the   VMC   has   lost   significant   event   activity   to   the   Moda   Center,   the   Oregon   Convention   Center,   Portland   Expo   Center,   Sleep   Country   Amphitheater,   Edgefield,   and   Chiles   Center,   among   other   venues.     In   fiscal   year   2013-­‐14,   the   VMC   recorded   its   second   lowest   number   of   total   events   over   the   past   20   years   with   111   total   events,   representing   a   55   percent   decrease  in  event  activity  since  1994.         Notable   decreases   in   event   activity   over   the   past   20   years   include   the   loss   of   Trail   Blazers’   games,  approximately  one-­‐half  of  the  Winterhawks’  games,  other  ice  events  and  a  significant   reduction   in   the   number   of   concerts,   family   shows,   conventions   and   trade   shows   hosted   at   the   VMC.     As   event   activity   has   decreased   in   these   areas,   the   VMC   has   increased   the   number   of   religious   events,   graduations,   reunions   and   added   FrightTown   to   mitigate   some   of   the   lost   event  activity.           J. Isaac Consulting   2. HISTORICAL OPERATIONS   7 HISTORICAL#EVENT#ACTIVITY Veterans#Memorial#Coliseum 1994&2014 Last#Three#Years FY#93&94 FY#03&04 FY#11&12 FY#12&13 Trail)Blazers Winterhawks FrightTown Other)Sports Graduations Religious)Events Family)Shows Conventions Reunions Trade)Shows Concerts Grand)Floral)Parade Action)Sports)Tour Ice)Shows 46 41 0 38 6 0 19 27 0 20 17 0 0 17 0 13 0 13 13 9 14 8 8 10 4 1 0 0 0 25 20 19 12 12 8 6 4 5 4 1 0 0 Other 15 36 129 TOTAL#EVENTS 246 (1) (2) FY#13&14 Average 0 21 21 13 12 16 6 1 0 5 2 1 0 0 0 19 21 13 12 9 6 5 5 4 3 1 0 0 & 22 21 15 12 12 7 4 5 5 3 1 & & 17 10 13 13 133 108 111 117 20&Year#Total#Events#Trend Total) Events) 250) 200) 150) NA) 100) FY)13014) FY)12013) FY)11012) FY)10011) FY)09010) FY)08009) FY)07008) FY)06007) FY)05006) FY)04005) FY)03004) FY)02003) FY)01002) FY)00001) FY)99000) FY)998099) FY)97098) FY)96097) FY)95096) FY)94095) 0) FY)93094) 50) (1))Excludes)meetings)and)ice)rentals.) (2))It)should)be)noted)that)a)temporary)closure)during))FY2012013)impacted)event)activity)that)year.) NA)=)not)available. Note:)Event)detail)not)available)for)2005)due)to)management)changes.)   Most   event   promoters   prefer   the   Moda   Center   over   the   VMC   because   it   can   provide   higher   potential   profits   due   to   the   larger   capacity,   better   and   more   varied   concession   options,   premium   seating,   and   other   modern   facility   characteristics   (i.e.   more   fan   comfort,   better   acoustics,  more  rigging  capacity,  loading  bays,  etc.)  that  can  drive  higher  attendance,  high  per   capita  revenues  and/or  can  accommodate  the  increased  production  demands  of  various  shows.         J. Isaac Consulting       J. Isaac Consulting Jun May Apr Mar Feb Jan Dec Nov Oct Sep Aug Jul 2. HISTORICAL OPERATIONS 8   Most   cost-­‐conscious   or   low   demand   events   tend   to   prefer   the   VMC   to   the   Moda   Center   due   to   lower  rental  costs  and  smaller  seating  capacity.       Seasonality     The   seasonality   of   event   activity   at   the   VMC   can   impact   the   overall   utilization   of   the   facility,   particularly   if   event   activity   is   clustered   during   certain   time   periods   throughout   the   year,   which   could   limit   ability   of   VMC   management   to   book   other   events   due   to   schedule   conflict.     In   addition,   certain   VMC   remodel   options   such   as   Scenario   4   Dynamic   Floor   /   Indoor   Track   may   result   in   displacement   of   certain   events   from   the   VMC   when   the   indoor   track   is   in   place   (anticipated  to  be  late  December  through  early-­‐March).     The   chart   below   illustrates   the   number   of   events   hosted   each   month   at   the   VMC   over   the   past   three   fiscal   years.       The   analysis   excludes   dark   days   in   the   VMC   that   are   attributed   to   event   move-­‐in  or  move-­‐out  as  well  as  practice  days  for  the  Winterhawks.     As  depicted  in  the  exhibit,  the  event   EVENT  SEASONALITY seasonality   of   the   VMC   is   generally   Veterans  Memorial  Coliseum consistent   from   year-­‐to-­‐year   given   Past  Three  Years  (FY  11-­‐12  to    FY  13-­‐14) the   relatively   consistent   recurring   events   that   occur   at   the   venue   Events Per (Winterhawks,   FrightTown,   OSAA   Month championships,  graduations,  etc.).   30   25 The  busiest  months  at  the  VMC  have   historically   been   October   (22   20 percent  of  total  event  activity),  June   15 (17   percent   of   total   event   activity),   10 and  January,  February  and  March  (9   5 to  11  percent  of  total  event  activity).     0 October   event   activity   is   heavily   influenced   by   FrightTown,   which   FY  13-­‐14 FY  12-­‐13 FY  11-­‐12 occurs   for   approximately   three   3-­‐Year  Average weeks   in   the   VMC’s   exhibit   hall.     Heavy  utilization  in  June  is  impacted   Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun by   high   school   graduations   and   the   Events 7 1 2 26 7 5 10 11 13 6 11 20 6% 1% 1% 22% 6% 4% 9% 10% 11% 5% 9% 17% months   of   January,   February   and   % March   are   influenced   by   Winterhawks  games.       2. HISTORICAL OPERATIONS 9   The   months   with   the   least   event   activity   at   the   VMC   are   traditionally   August   and   September   of   each  year,  where  on  average  the  VMC  only  host  1  to  2  events  each  of  those  months.    This  low   period   of   event   activity   during   portions   of   the   summer   months   is   generally   reflective   of   the   arena  industry  as  whole  as  most  event  activity  at  indoor  arenas  is  clustered  in  the  Fall,  Winter   and  Spring  months.     Attendance     The  chart  below  summarizes  the  VMC’s  turnstile  and  paid  attendance  over  the  past  20  years.         HISTORICAL#AVERAGE#ATTENDANCE Veterans#Memorial#Coliseum FY#93&94#to#FY#13&14 Average#Turnstile#Attendance#Per#Event Last#Three#Years FY#93&94 Trail)Blazers Conventions Religious)Events Grand)Floral)Parade Concerts Winterhawks Reunions Graduations Other)Sports FrightTown Trade)Shows Other Family)Shows Ice)Shows (1) FY#03&04 FY#11&12 FY#12&13 FY#13&14 Average 3 983 5,103 6,509 4,694 3,283 5,744 2,559 3,550 3 2,021 5,744 4,802 3 3 6,471 6,296 5,940 3,682 3,892 6,011 3,152 2,769 1,508 1,504 924 970 3 3 9,444 5,828 4,881 7,595 4,752 3 2,970 3,270 1,603 1,491 1,320 830 3 3 7,375 7,181 4,978 4,963 5,602 2,924 2,929 3,103 1,732 1,493 1,526 823 3 & 7,095 6,309 5,266 4,978 4,669 4,296 3,017 3,010 1,616 1,496 1,219 884 & 11,568 2,684 3 3 6,671 6,387 3 3,800 2,440 3 1,264 3,911 4,192 5,368 AVERAGE#(TURNSTILE) (2) AVERAGE#(PAID)(3) & & 3,067 3,333 3,469 3,276 5,564 3,150 1,331 1,667 1,721 1,573 & & 43% 50% 50% 48% PERCENT#PAID#/#TURNSTILE (4) 20&Year#Total#Paid#Attendance#Trend Total) Paid) AYendance) 1,400,000) 1,200,000) 1,000,000) 800,000) 600,000) 400,000) 200,000) FY)13314) FY)12313) FY)11312) FY)10311) FY)09310) FY)08309) FY)07308) FY)06307) FY)05306) FY)04305) FY)03304) FY)02303) FY)01302) FY)00301) FY)99300) FY)998399) FY)97398) FY)96397) FY)95396) FY)94395) NA) FY)93394) 0) (1))Average)annual)paid)attendance)shown)by)event)type. (2))Turnstile)attendance)is)the)number)of)people)that)attended)the)event. (3))Paid)attendance)is)the)number)of)tickets)sold)to)the)event.) (4))Three3year)weighted)average. NA)=)not)available. Note:)Attendance)detail)not)available)for)2005)due)to)management)changes)in)that)year.)     J. Isaac Consulting   2. HISTORICAL OPERATIONS 10   In  fiscal  year  1993-­‐94  (before  the  Moda  Center  opened),  the  VMC  drew  total  paid  attendance   of  1.4  million  over  246  events.    The  presence  of  the  Trail  Blazers  and  the  sheer  volume  of  other   event   activity   at   the   VMC   heavily   influenced   this   level   of   attendance   when   it   served   as   the   primary  arena  in  Portland.     Total   paid   attendance   decreased   dramatically   with   the   opening   of   the   Moda   Center   and   the   loss  of  quality,  higher  demand  ticketed  events  that  have  been  replaced  with  many  events  that   are   non-­‐ticketed   events.     In   fiscal   year   2013-­‐14,   total   paid   attendance   for   VMC   events   was   195,862  (the  highest  level  since  fiscal  year  2007-­‐08  which  preceded  the  Great  Recession)  over   111  events,  representing  an  86  percent  decrease  in  paid  attendance  from  fiscal  year  1993-­‐94.     Over   the   past   three   years,   the   most   highly   attended   events   at   the   VMC   have   been   conventions   such   as   Free   Enterprise   Days,   the   Dalai   Lama   Summit   and   the   Comic   Book   Show   (7,095   average   turnstile   per   event),   religious   events   (6,309   average   turnstile   per   event),   the   Grand   Floral   Parade   (5,266   average   turnstile   per   event),   concerts   (4,978   average   turnstile   per   event)   and   Winterhawks  games  (4,669  average  turnstile  per  event).       Event  Profitability     The   VMC   hosts   a   diverse   mix   of   events   with   varying   degrees   of   revenue   and   expense   levels.     Event  profitability  is  important  in  understanding  and  prioritizing  potential  VMC  improvements   that  may  provide  the  City  and  other  project  stakeholders  with  a  financial  return  on  investment   by  enhancing  the  ability  of  the  VMC  to  retain  and  attract  certain  events.   EVENT)PROFITABILITY Veterans)Memorial)Coliseum FY#2013(14 Average)Net)Profit)Per)Event)Day Concerts Winterhawks Grand