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MARKET <br />ANALYSIS <br />Introduction <br />This market analysis represents the <br />second component of a four-part feasibility study <br />of a proposed multi -purpose arena facility in <br />Everett, Washington. The purpose of the <br />analysis is to evaluate the strength of the City of <br />Everett and environs as a market for the events, <br />which would provide the tenants for such a <br />facility and, within that context, to project the <br />likely revenues of the arena. These revenue <br />projections will be utilized in the fourth part of <br />this study, an analysis of the financial feasibility <br />of the at ena project. <br />Executive Summary <br />• <br />• <br />Statistical analysis of Everett indicates that <br />the City and its environs represent a good <br />mai ket for an 8,000 - 10,000-seat arena and <br />minor league hockey. <br />There is currently no multi -purpose arena <br />facility in the Everett market of an <br />appropriate size to house minor league <br />sports and related -sized events, such as <br />smaller concert and family shows. <br />Telephone interviews of local business <br />!cadets revealed that approximately 75% of <br />the respondents have some level of interest <br />in premium seating, either club seats and/or <br />luxury suites/skybox options Furthermore, <br />15% of the respondents said they are <br />definitely interested in skyboxes. This level <br />of support for specialized seating is <br />considered strong for markets of this size. <br />Nearly 85% of the local business interview <br />respondents expressed interest in purchasing <br />various types of advertising (i.e., PA <br />announcements and signage). This <br />represents a similar percentage than is <br />generally realized within similarly sized <br />markets Additionally, some respondents <br />inquired about naming rights as well as the <br />possibility of equity partnerships for the <br />proposed facility. <br />A wide variety of event types, including <br />various "second" & "third" tier minor league <br />professional sports, high school sports, <br />concerts, and family shows exist which <br />could provide an extensive and varied event <br />calendar for an arena in Everett. Under <br />certain assumptions, the facility should be <br />able to attract at least 108 events and as <br />many as 185. <br />B&D recommends that this arena concept be <br />programmed to hold 10,000 seats in concert <br />configuration and approximately 8,000 for <br />hockey. Further, the facility design should <br />provide for future expansion potential foi <br />additional concert capacity and luxury suite <br />build -out <br />Analytical Approach <br />This analysis seeks to provide a thorough <br />understanding of the market economics, which <br />will drive the feasibility of the proposed arena. <br />To that end, the researchers undertook a variety <br />of both qualitative and quantitative analyses, <br />considering the following key issues: <br />How strong is the Everett market <br />(Snohomish, Island, and Skagit counties) <br />relative to communities, which are <br />successfully supporting 8,000 to 10,000 seat <br />arenas? <br />What sports leagues and entertainment <br />providers are likely to serve as viable <br />tenants to the proposed arena? <br />What events and revenues are attracted by <br />arena facilities of comparable market size <br />and characteristics? <br />To resolve these issues, the researchers <br />undertook the following analyses: <br />• Personal interviews with public sector <br />officials to discuss the role of entertainment <br />Brailsford & Dunlavey/Ellerbe Becket <br />Page 9 <br />