! ! ! ! February!6,!2013! TO:!!Fayetteville!A!&!P!Commission! FROM:!!Marilyn!Heifner! At!the!January!meeting,!you!asked!me!to!look!at!options!for!funding!for!the!Walton!Arts!Center.!!In! investigating!potential!funding!for!the!project,!I!also!looking!at!other!long!term!needs!for!the!tourism! industry!in!Fayetteville!!M!the!proposed!regional!park!(aka!South!Pass)!and!the!AMP.!!I!considered!these! because!of!the!economic!impact!they!would!provide!to!the!HMR!tax.! The!following!proposal!is!presented!to!you.!!Please!bear!in!mind!that!this!is!a!conceptual!funding!plan.!! Projected!Dickson!Street!renovation!costs!were!received!from!the!Walton!Arts!Center.!!Regional!park! figures!are!those!that!were!developed!by!the!Parks!Department!in!2012.! ! Bonds!for!the!Fayetteville!Town!Center!will!be!paid!off!in!October,!2015.!!As!of!February!1,!principal! owed!for!the!Town!Center!is!$1,885,000!(interest!owed!143,261.25!-!if!paid!until!maturity)!! Yearly!payment!and!interest!is!approx.!$675,000.! ! Walton'Arts'Center!has!requested!assistance!from!the!Fayetteville!A!&!P!Commission!to!offset! costs!of!$20,600,000!for!design,!preMconstruction!and!construction!of!the!Walton!Arts!Center!Main! Campus!on!Dickson!Street.!! ! Estimated!Expense!Breakdown!as!of!1/28/13! ! Design!Fees!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!2013!!!!!!!!!!!!!!!!!!!2014!!!!!!!!!!!!!!2015! ! ! Schematic!Design/Design!Development! ! 450,000! 500,000!!!!!!!!450,000!! ! ! Specialty!fees!(Engineering,!acoustician,!etc)! 150,000! 350,000!!!!!!!!300,000! ! ! Construction! ! ! Back!of!the!House!(dressing!rooms,!storage)! 250,000!!!!!!!!!!1,500,000!!!!!!2,800,000! ! ! Offices/site!work! ! ! ! 650,000!!!!!!!!!!1,850,000!!!!!!!!!!!!M! ! ! New!Lobby/Front!of!the!House!!!!!!!!!!!!!!!!!!!!!!!!!!! ! !!!!!!!!!!2,680,000!!!!!!2,800,000! ! ! Starr!Theatre/Baum!Walker!Hall!! ! ! !!!!!!!!!!2,120,000!!!!!!3,750,000! ! !Total! ! ! ! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1,500,000!!!!!!!!!!9.000.000!!!!10,100,000!! ! ! ! ! ! ! ! ! ! ! ! Breakdown!of!the!above!total!project!costs!for!Greatest!Funding!Needs!from!A!&!P!are!as!follows:! ! 2013!!!! Design!fees!! ! ! ! $600,000! Construction!-!Backstage/offices! $400,000! ! 2014! ! ! Design!Fees! ! ! ! $400,000! ! ! Construction!-!Backstage! ! $600,000! ! 2015! ! ! Construction!-!Backstage,!Front!of!the!House,!Starr!Theatre! ! ! ! ! ! ! !!!!!!!!!!!!!!$6,500,000.00! ! ! Based!on!the!following!assumptions! ! 25!year!maturity! ! Maintain!existing!annual!debt!service! ! Bonds!issued!in!October!2013! ! Bonds!are!insured!and!a!debt!service!reserve!fund!is!secured!with!a!surety!bond! The!City!could!issue!bonds!secured!with!HMR!tax!for!the!following!amount:!!! Par!amount!of!bonds! ! ! ! ! $11,355,000! ! Project!Funds! ! ! ! ! !!!9,758,000! ! Refund!Series!2003!(Town!Center!bonds)! !!!1,275,000! ! Costs!of!Issuance! ! ! ! !!!!!!227,100! ! Gross!Bond!Insurance!Premium!(50.0!bp)! !!!!!!!!84,109! ! Surety!Bond! ! ! ! ! !!!!!!!!10,122! ! Rounding!Amount! ! ! ! !!!!!!!!!!!!!!668! Debt!service!schedule!from!Stephens!is!attached!(Series!2013,!Tourism!Tax)! ! The!Parks!Department!currently!has!$2.5!million!in!HMR!taxes!and!uses!$1.8!million!in!operating!costs.!! This!leaves!$700,000!in!annual!revenues!which!could!be!used!for!bonds!for!the!Regional!Park.!!! Using!the!same!assumptions!as!above!with!a!$733,000!annual!debt!service,!$12,000,000!could!be! bonded.!!Debt!service!schedule!from!Stephens!is!attached!(Series!2013,!Parks!Tax)! ! The!Parks!Department!currently!has!$4.5!million!in!reserve!for!the!regional!park.! ! ! Regional!Park!costs! ! Phase!1!M!$4,202,589!(this!could!be!built!using!the!parks!reserve!money)! Includes!8!soccer!fields,!lighting,!turf!on!2!fields,!great!lawn!with!entry!sign,!concession/restroom,! infrastructure!including!parking!and!lighting.! ! ! Phase!2!M!$7,302,792!(this!could!be!built!using!Parks!HMR!tax!bond)! Includes!youth!baseball,!pavilion!and!playground!on!great!lawn,!parking!and!lighting.! ! ! Phase!3!M!$4,661,875!(this!could!be!built!using!Parks!HMR!bond)! Includes!Youth!softball,!large!amphitheater,!playground,!trails,!splash!pad,!concession/restroom,!roads,! parking.! ! ! Construction!of!Phases!1M3!will!allow!the!Fayetteville!CVB!to!book!soccer!tournaments!and!ball! tournaments!thus!increasing!the!HMR!tax.!!In!our!hotel!room!tracking,!we!have!seen!the!impact!of!Greg! Baxendale's!tournament!and!the!economic!impact!it!can!generate!for!hotels,!motels,!and!restaurants.!!! ! ! Phase!3!also!includes!a!large!amphitheater!and!a!small!amphitheater.!!!!I!recommend!expanding! the!large!amphitheater!and!eliminating!the!small!one!to!meet!the!needs!of!Walton!Arts!Center!AMP.!!It! is!imperative!to!keep!the!AMP!in!Fayetteville.!!With!the!construction!of!the!regional!park,!and!a!long! term!lease!with!the!Walton!Arts!Center!for!the!AMP,!the!AMP!could!stay!in!Fayetteville.!!!!The!AMP!will! increase!the!HMR!taxes!because!concert!goers!would!stay!and!eat!in!Fayetteville.!!! ! Larger!concerts!could!be!brought!to!Fayetteville!as!stated!in!the!WAC!plan!for!the!AMP!at!the!NWA!Mall.!! Walton!Arts!Center!could!use!the!funds!that!they!currently!have!or!fund!raise!(as!they!would!have!to!do! for!any!new!facility)!for!facilities!unique!to!the!AMP!needs;!!i.e.!backstage!dressing!rooms,!expanded! stage,!concession!stands,!restrooms,!etc.!!! ! ! Phase!4!M!$2,808,000!(this!could!be!built!using!A!&!P!HMR!bond)! Includes!tennis,!basketball,!volleyball,!dog!park,!trails,!concessions,!parking,!and!infrastructure.! ! ! Phase!5!M!$304,750!(this!could!be!built!using!A!&!P!HMR!bond)! Includes!landscaping,!small!amphitheater,!disc!golf,!and!parking.! ! With!the!A!&!P!and!the!Parks!going!together!for!a!bond!issue,!we!can!fund!the!WAC!$6.5!million! construction!and!completely!finish!out!the!regional!park!and!the!AMP!would!have!a!permanent!home!in! Fayetteville.! ! ! ! The!Walton!Arts!Center!also!requested!$2,000,000!for!design,!documentation!and!preMconstruction!and! construction!of!the!!Dickson!Street!expansion,!!I!would!recommend!that!the!Commission!give!to!the! Walton!Arts!Center!$500,000M$600,000!in!2013!to!start!the!design!process.!!Traditionally,!the! Commission!has!not!given!more!than!$500,000!out!of!the!reserve!funds.!!Determination!of!funding!for! future!years!could!be!done!on!a!year!by!year!basis!based!on!available!funds.! ! Currently,!the!commission!has!$2,449,000!in!reserve!funds.!!Policy!of!the!Commission!was!established! that!reserve!funds!should!amount!to!one!year's!reserve!of!collections.!!Total!collections!in!2012!were! $2,522,008.!! ! ! TOWN CENTER BONDS Total Debt service $7,738,275.00 Remaining yearly payment and interest 10/1/04 4/1/05 10/1/05 4/1/06 10/1/06 4/1/07 10/1/07 4/1/08 10/1/08 4/1/09 10/1/09 4/1/10 10/1/10 4/1/11 10/1/11 4/1/12 10/1/12 4/1/13 10/1/13 4/1/14 10/1/14 4/1/15 10/1/15 Total Principal 120,000.00 505,000.00 510,000.00 520,000.00 535,000.00 540,000.00 555,000.00 575,000.00 590,000.00 610,000.00 625,000.00 650,000.00 6,335,000.00 Interest 84,820.00 84,100.00 84,100.00 80,691.25 80,691.25 76,738.75 76,735.75 71,538.75 71,538.75 65,386.25 65,386.25 58,501.25 58,501.25 50,592.50 50,592.50 41,823.75 41,823.75 32,383.75 32,383.75 22,318.75 22,318.75 22,318.75 11,537.50 1,286,823.25 Total 204,820.00 84,100.00 589,100.00 80,691.25 590,691.25 76,738.75 596,735.75 71,538.75 606,538.75 65,386.25 605,386.25 58,501.25 613,501.25 50,592.50 625,592.50 41,823.75 631,823.75 32,383.75 642,383.75 22,318.75 647,318.75 22,318.75 661,537.50 7,621,823.25 Project Cost At this point in the project planning, we are estimating the following cost breakdown for expansion, renovation and equipment upgrades. Amount Item Lobby/Restroom/From of House $ BackstaKe Support Areas Offices/Sitework Starr Theatre/NBS/BWH/Theatrical Equipment Total Cost (mid-2or 4 dollars'1 $ $ 5,670,000 5,750,000 $ 2,410,000 6,770,000 $ 20,600,000 Use of Funds Walton Arts Center respectfUlly requests two fUnding allocations totaling $8,500,000 to be used for design, pre-construction and construction of the Walton Arts Cemer Main Campus Expansion on Dickson Street expansion: (I) $2M over two years from the A&P operating and/ or reserve fUnds for design, preconstruction and initial construction, and (2) $6.5M for construction, paid for through the refinancing of the Town Center bonds or other long-term financing mechanism. Year 2013 2014 2014-2016 Amoum $1,000,000 $1,000,000 $6,500,000 in Bond Revenue Objective Design, documentation and pre-construction Documentation and Construction Construction Issue Dace TBD December 2012 Page 5 of 6 Walton'Arts'Center'Expansion Estimated'Expense'Breakdown'as'of'1/28/13 2013 Design'Fees Schematic/Design/Design/Development Specialty/fees/(Engineering,/acoustician,/etc) Construction' Back/of/house/(dressing/rooms,/storage,/etc) Offices/site/work New/Lobby/Front/of/House Starr/Theater/Baum/Walker/Hall TOTAL/BY/YEAR///PROJECT/TOTAL 2015 $////////////////////////450,000 $////////////////////////150,000 $//////////////////////// 500,000 $//////////////////////// 350,000 $//////////////////////// 450,000 $//////////////////////// 300,000 $////////////////////////250,000 $////////////////////////650,000 $///////////////////// 1,500,000 $///////////////////// 1,850,000 $///////////////////// 2,680,000 $///////////////////// 2,120,000 $///////////////////// 2,800,000 $/////////////////////////////////////I $///////////////////// 2,800,000 $///////////////////// 3,750,000 $/////////////////////1,500,000 $///////////////////// 9,000,000 $//////////////////10,100,000 $////20,600,000 Greatest'Funding'Needs'from'A&P 2013 Design/Fees Construction/I/Backstage/Offices $600,000 $400,000 Design/Fees Construction/I/Backstage $400,000 $600,000 2014 2015 Construction/I/Backstage,/Front/of/House,/Starr 2014 $6,500,000.00 "Marilyn Heifner" To: "'Jessica Edwards Leonard'" FW: WAC expansion February 6, 2013 12:50 PM 1 Attachment, 50 KB ! ! From: Terri Trotter [mailto:TTrotter@waltonartscenter.org] Sent: Monday, January 07, 2013 4:55 PM To: Marilyn Heifner Subject: RE: WAC expansion ! Hi!Marilyn, ! Happy!New!Year.!!Here!are!the!answers!to!your!questions.!!Please!let!me!know!if!you!need!anything!else. ! 1) Total(number(of(UA(events(in(2012 ! There!were!37!UA!events!in!FY12!(July!'11!-!June!'12)!attended!by!13,575!people.!!Most!of!the!events!were!ticketed!(average of!366!people/event).!!Ticket!prices!ranged!from!free!(most!student!tickets)!to!$10. ! ! 2) Total(number(of(matinee(performances(for(schools(and(attendance.((Did(students(pay(for(those(performances? ! Walton!Arts!Center!hosted!41!matinee!performances!for!school!children,!attended!by!32,794!kids!in!FY'12.!!The!students!do pay!a!small,!highly!subsidized!ticket!price!to!attend.!!In!addition!to!the!children!coming!into!WAC,!we!also!send!programs!out to!the!schools. ! 3) Number(attending(Broadway(series(in(2012 ! 47,651 ! 4) Total(number(of(employees(for(WAC ! 58!full!time!employees 20!permanent!part!time!employees 151!local!backstage!crew ! 5) Budget(of(WAC(for(2012(and(2013 ! Walton!Arts!Center's!yearYend!budget!for!FY12!was!$9,764,902.!!Budget!for!FY13!is!$10,346,998. ! 6) Status(of(AMP ! The!AMP!had!a!very!successful!year!at!the!Fairgrounds,!and!we!are!excited!to!return!next!season!(April!2013).!We!are currently!on!hold!in!the!process!of!finding!a!permanent!site!for!the!facility,!as!the!Walton!Arts!Center!Main!Campus!Expansion is!now!our!highest!funding!and!planning!priority.!!We!do!anticipate!evaluating!the!Fairgrounds,!along!with!other!sites!in Northwest!Arkansas,!as!a!permanent!AMP!site!in!the!future. ! Terri ! From: Marilyn Heifner [mailto:mheifner@twncenter.com] Sent: Monday, December 31, 2012 9:34 AM To: Terri Trotter Subject: WAC expansion ! Prior!to!our!meeting!in!January,!can!you!provide!me!with!the!following: 1) Total!number!of!UA!events!in!2012 2) Total!number!of!student!performed!productions!and!attendance.!!Did!students!pay!for!those!performances? 3) Number!attending!Broadway!series!in!2012 4) Total!number!of!employees!for!WAC 5) Budget!of!WAC!for!2012!and!2013. 6) Status!of!AMP ! Marilyn Heifner Fayetteville A & P Commission P. O. Box 4157 Fayetteville, Arkansas 72702-4157 479.521.5776 800.766.4626 www.experiencefayetteville.com Please consider the environment before printing this email. Follow us on facebook @ Fayetteville, AR Follow us on Twitter @ ExpFayetteville ! ! Regional Park Prleliminary Estimated Costs 1/10/2012 Infrastructure Paid by City Phase 1 Soccer Great Lawn Area Concession/Restroom Infrastructure Facility Strip, Stockpile and replace topsoil Fill Engineered Soil 1' depth Underdrain System Irrigation Bermuda Sprigs Artificial Turf Fields Lighting- Installed Strip, Stockpile and replace topsoil Topsoil Entry Sign Seed Package Building w/Footings and Slab Unclassified Excavation Class 7 SB2 Select Fill (hillside)- complete in place Water/Sewer Impact Fees QTY. Estimated Unit Cost Estimated Total Cost 5,872 50,696 20,278 1 1 11 1 5,238 2,095 1 10 1 135 57 151 1 1 1 3,260 6 $ $ $ $ $ $ $ $ $ $ $ $ $ $ 10.00 8.00 35.00 49,683.00 83,970.10 2,000.00 $1,176,047.50 580,000.00 10.00 21.00 8,000.00 1,500.00 396,000.00 10.00 7.00 14.00 20,144.00 35,000.00 295,000.00 60.00 1,500.00 3690 460 1200 1 150 125 1 1 Electricity to Site 3 Phase Sanitary Sewer System 8" Water Line Extension to Park Fire Hydrants Entry Road -28' cross section with onstreet parking Gravel Access Road to Water Tanks Drainage Improvements Parking Trees Sidewalks Parking Lighting Pedestrian Lighting $ $ $ $ $ $ $ $ $ $ $ $ $ $ $58,719.00 $405,566.67 $709,741.67 $49,683.00 $83,970.10 $21,859.50 $0.00 $580,000.00 $52,382.13 $43,995.00 $8,000.00 $15,000.00 $396,000.00 $1,348.15 $396.36 $2,113.90 $0.00 $35,000.00 $0.00 $0.00 $0.00 244.84 47.78 10.00 492,590.51 250.00 35.00 170,037.00 193,793.69 Design and Engineering (25%) $ $0.00 $0.00 $0.00 $492,590.51 $37,500.00 $4,375.00 $170,037.00 $193,793.69 840,517.92 $ Total Phase 1 $ 4,202,589.59 $ Phase 2 Youth Baseball ** Facility QTY. lighted fields Estimated Unit Cost 8 $ Parking Lighting Parking Design and Engineering (25%) $60,243.75 $204,990.48 5,000.00 7,000.00 5,000.00 120,000.00 200,000.00 1,460,558.56 Total Phase 2 $ 7,302,792.79 215,000.00 $ 150,000.00 $ $ $ 215,000.00 150,000.00 91,250.00 241,250.00 Amenities Amenities water sewer electric large pavilion (Great Lawn) large playground (Great Lawn) splash pad (Great Lawn) trails $60,243.75 $204,990.48 5,000.00 7,000.00 5,000.00 120,000.00 200,000.00 5,240,000.00 $ $ $ $ $ $ Infrastructure 1 1 1 1 1 1 1 Estimated Total Cost 655,000.00 $ $ $ $ $ $ 1 1 $ $ 4 1 1 1 1 1 1 1 1 1 1 45 $ $ $ $ $ $ $ $ $ $ $ $ 8 4 4 1 1 1 1 60 $ $ $ $ $ $ $ $ 1 1 1 1 1 $ $ $ $ Design and Engineering (25%) Total Phase 3 Facility unlighted fields consession/restroom large amphitheater small playground splashpad trails small pavilion roads water sewer electric parking QTY. Facility Estimated Unit Cost QTY. Estimated Total Cost 530,000.00 400,000.00 300,000.00 75,000.00 215,000.00 150,000.00 50,000.00 200,000.00 5,000.00 7,000.00 5,000.00 4,500.00 $ $ $ $ $ $ $ $ $ $ $ $ $ $ 75,000.00 75,000.00 10,000.00 25,000.00 150,000.00 400,000.00 600,000.00 4,500.00 $ $ $ $ $ $ $ $ $ $ 40,000.00 150,000.00 50,000.00 25,000.00 $ $ $ $ $ 40,000.00 150,000.00 50,000.00 25,000.00 - Design and Engineering (15%) Total Phase 5 $ $ 39,750.00 304,750.00 Subtotal Phases $ 21,342,735.38 Parks Office Maintenance Facility Design and Engineering (25%) Office Facilities $ $ $ $ 3,750,000.00 1,300,000.00 1,262,500.00 6,312,500.00 Youth Softball Amenities Infrastructure Design and Engineering (25%) Total Phase 3 Phase 4 Tennis Basketball Volleyball Amenities Infrastructure lighted courts lighted courts lighted sand courts dog park trails concession roads parking Estimated Total Cost Estimated Unit Cost Design and Engineering (20%) Total Phase 4 Phase 5 Landscaping Amenities Infrastructure Facility trails small amphitheater disc golf roads, parking Regional Park Estimated Total Cost QTY. 2,120,000.00 400,000.00 300,000.00 75,000.00 215,000.00 150,000.00 50,000.00 200,000.00 5,000.00 7,000.00 5,000.00 202,500.00 932,375.00 4,661,875.00 Estimated Unit Cost 600,000.00 300,000.00 40,000.00 25,000.00 150,000.00 400,000.00 600,000.00 270,000.00 423,000.00 2,808,000.00 Estimated Total Cost $ 27,655,235.38 $20,144.00 $295,000.00 $195,600.00 $9,000.00 $903,459.60 $21,978.80 $12,000.00 1,821,478.00 364,295.60 Annual Economic Impact of the Regional Park Out of Town Teams Economic impact Current Tournaments Pitch for the Cure 160 $1,417,440 FayRo Classic 48 $425,232 Diamond Classic 14 $124,026 State Youth Baseball 30 $265,770 Harvest Moon 64 $354,368 Total $2,586,836 New Tournaments Youth Soccer 1 35 $387,555 Youth Soccer 2 25 $276,825 Youth Softball 20 $177,180 Youth Baseball 1 15 $132,885 Youth Baseball 2 30 $265,770 Youth Baseball 3 30 $265,770 Total $1,505,985 Current New $4,092,821 **Projected $2,000,000 TOTAL $6,092,821 Notes: $246.07 is number provided by Arkansas Parks and Tourism per visitor for overnight stay. Existing tournaments could potentially expand with additional facilities available. New tournament numbers are projected at maximum participation. **Projected: The tennis courts, disc golf course, and amphitheatre could generate additional revenue up to $2,000,000. The total projected economic impact of the Regional Park is $6 million annually into Fayetteville, AR. Kiparks/regional parkl2013 economic impact projections final .ULnfl_ .U:1:Aur IR 2. . I .. mkmsou I.II .-I. I mw_mu_u_..3m_ Ij{flFH_Om . .. .. zozkmmomm mnIm__u_ . Imammafia .r