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Item 6B MXD Economic Cluster AnalysisP�ATMW 77 Ilk At Economic Cluster Analy sis Study Introduction TABLE OF CONTENTS INTRODUCTION & EXECUTIVE SUMMARY 2 1.0 REGIONAL MARKET OVERVIEW 7 2.0 LOCAL MARKET OVERVIEW 19 3.0 SOUTHLAKE TOURISM PROFILE 27 4.0 MEDICAL CLUSTER ANALYSIS 38 5.0 CULINARY CLUSTER ANALYSIS 65 6.0 PERFORMING ARTS CLUSTER ANALYSIS 98 7.0 FINAL RECOMMENDATIONS 143 A APPENDIX A - ICE SHEET ANALYSIS 150 Item 613 - MXD Economic Cluster Analysis M EM -441, DEVELOPMENT STRATEGISTS Introduction SCOPE OF STUDY & PROJECT BACKGROUND MXD Development Strategists Ltd. of Vancouver, Canada ("MXD") was commissioned by the City of Southlake in March 2014 to conduct a Retail Analysis and Saturation Study for the City of Southlake. Upon the completion of the Retail Saturation Study, it was realized that a continuation of the work was needed that would focus on specific findings of the original study. Thus, an addendum was created for Phase II, encompassing an "Economic Cluster Analysis". REPORT STRUCTURE MXD conducted research between August 2014 and November 2014, to gain an understanding of three identified economic clusters; medical, culinary, and performance arts . The purpose of this research was to analyze the three clusters in greater depth, understand how these clusters are currently performing in the DFW Metroplex, and determine the gaps or emerging niches that the City of Southlake could capitalize on. Additionally, the study looks at how these economic clusters can act as tourism drivers in the Southlake market. Item 613 - MXD Economic Cluster Analysis M� OT STRATEGISTS To respond to the work program process, this report is presented in the following sections: • Section 1 — Regional Market Overview: A brief synopsis of overall market conditions, demographics, and current economic conditions in the DFW Metroplex. • Section 2 — Local Market Overview: A brief overview of the City of Southlake's demographics, employers, and economic development strategy. • Section 3 — Southlake Tourism Overview: A profile and analysis of Southlake's tourism market. • Section 4 — Medical Cluster Analysis: An analysis of the medical cluster in the DFW Metroplex and recommendations for Southlake. • Section 5 — Culinary Cluster Analysis: An analysis of the culinary cluster and culinary tourism market in the DFW Metroplex, along with recommendations for Southlake. • Section 6 — Performing Arts Cluster Analysis: An analysis of the DFW Metroplex' cultural and performance arts scene with recommendations for Southlake. • Section 7 —Final Recommendations • Appendix A — Ice Rink Feasibility Introduction EXECUTIVE SUMMARY The objective of the study is to investigate three economic clusters; medical, culinary, and performance arts within the DFW Metroplex. Through these clusters, MXD investigated the emerging trends locally and regionally, and analyzed the niche gaps available for the City of Southlake to capitalize on through an economic development and tourism perspective. MXD first conducted a regional market and local market overview to understand the shifting demographics in the region and in Southlake. MXD also studied the economy of the DFW Metroplex, the emerging economic clusters, and what core industries/sectors provide the highest room for growth moving forward. Coming out of this analysis, it was determined that the top three sectors that have the highest viability in Southlake are Health Sciences & Medical, Professional Services, and Information & Communications Technology (ICT). MXD then performed a Tourism Overview for the City of Southlake, examining tourist attractions in Southlake, as well as those in neighboring communities such as Grapevine which has a very established tourism base. Employing survey data that was provided by the City of Southlake, a visitor profile was created for the average Southlake visitor. Ultimately, the average Southlake visitor is between the ages of 31-50 years of age and most likely has children under the age of 12. Item 6B - MXD Economic Cluster Analysis �iVI�V DEVELOPMENT STRATEGISTS Visitors are typically from a surrounding community within a 10-20 minute drive from Southlake, visiting for the day and arrives by private vehicle. The primary reasons to visit are for an event such as Oktoberfest or Stars & Stripes, or to shop at Southlake Town Square. Creating this visitor profile allowed MXD to comprehend on the tourist market that the City of Southlake is likely to capture. Medical Cluster Analysis The medical cluster in the DFW Metroplex continues to expand. This includes hospitals, corporate offices, manufacturing, services, and research and development. The Metroplex has a number of upcoming medical construction and expansion projects, primarily clustered around Dallas and Fort Worth, although suburban communities are making large strides. Forest Park Medical Center in Southlake has just gone through a major expansion, doubling its size, as well as adding a four -storey office building. With continued population growth and development in communities west of Southlake, there are opportunities available to capture the health and medical needs of new residents, although this should not be the only reliance. While capacity of hospital beds are still important, specialty medical fields are on the rise such as pediatrics, geriatrics, plastic surgery, pharmacy, cardiology, and neurosciences, especially when connections are created with university and college satellite research facilities. N Introduction There has also been a rise in domestic medical tourism, since international medical tourism has not taken hold as was predicted. Large corporations are sending employees in need of expensive and complicated procedures to high-quality specialized facilities throughout the United States which reduces costs for the employers over the long-term, as much as 40%. Many cities and regions are beginning to capitalize on this growing domestic tourism market. Coming out of this analysis, opportunities for the City of Southlake are to establish a medical cluster along Highway 114 for hospitals and specialized health care sectors, develop a pro-business environment with access to financial resources to fund medical research & development, and work with the private medical industry to market domestic medical tourism across the United States. Culinary Cluster Analysis Examining the culinary cluster in the DFW Metroplex was a three pronged approach, looking at culinary tourism, new developments in the Metroplex, and culinary schools. It was found that culinary tourism is a rapidly growing market in the United States, and that those who travel for culinary tourism have higher than average incomes and are well educated. This matches well with the City of Southlake's current visitor profile, and the type of tourists the City would like to see in the future. With Texas already being the 4th most popular destination in the United States for food -related travel, and most communities in the Metroplex not yet capitalizing on this emerging trend, there are definite opportunities to create a hub for culinary tourists in Southlake. Item 6B - MXD Economic Cluster Analysis 'PAP iVI�V DEVELOPMENT STRATEGISTS It was discovered that an opportunity lies for the City of Southlake to create a restaurant cluster similar to that of Trinity Groves in Dallas, although it would be envisioned to have slightly grander architectural standards. There currently are no major restaurant clusters in the Mid -Cities, and promotion of culinary endeavours by cities in the Metroplex is currently lacking on most fronts compared to many progressive culinary cities in North America. This restaurant cluster is also supported by the retail demand analysis conducted by MXD in Phase 1 of this assignment, with the City of Southlake able to absorb over 53,000 square feet of full-service restaurant space by 2025. The final piece is a culinary school, which will rely on either private equity or philanthropic grants if the school is to be a non-profit. Currently, culinary schools are primarily located in Dallas and Fort Worth, although many of their locations are in older leased buildings. The City of Southlake may be able to attract a for-profit culinary school if a more modern facility is available or constructed build -to -suit. 151 Introduction Performing Arts Cluster Analysis The Performing Arts sector in the Dallas Fort -Worth Metroplex is thriving and coming out of a period of major investment in new facilities. New state of the art Performing Arts venues in downtown Dallas Arts District, including the Winspear Opera House and Charles Wyly Theater, have completed this ambitious civic project, while the downtown Fort Worth Arts District is reaping the benefits of earlier investments in the Bass Performing Arts Hall and the Fort Worth Arts Center. New venues have been built, and existing venues renovated, in smaller communities throughout the DFW Metroplex and cumulatively the region's inventory of Performing Arts venues has grown by nearly 20%. During this period of growth, the proportion of mid-sized venues in the 200-550 seat range has not changed. These mid-sized venues are essential to the health of the Performing Arts sector and are comparatively more financially feasible to build and operate than large marquee venues that cater to established organizations or small venues that lack audience base to utilize larger spaces. The Visual Arts sector in the DFW Metroplex is also flourishing, particularly at the popular and highly accessible community festival level. Southlake's Art in the Square and Fort Worth's Main Street Arts Festival are two of the region's great public arts festivals and there is an opportunity to build upon these by introducing new but proven arts and cultural formats. Item 613 - MXD Economic Cluster Analysis 'PAP iVI�V DEVELOPMENT STRATEGISTS Multi -Use Events Centers are a valued public assets with 5,500 to 9,000 person capacities that host professional sports teams, concerts, and community events. The best local example is the Allen Events Center, however they can be found throughout the country in suburban and downtown locations. These a major civic investments and they attract significant visitation to a community on events days. When located adjacent to, or part of, a major commercial development with retail, restaurants, and hotel accommodation an Events Center can act as a catalyst for induced spending and it may be possible to share parking to reduce land requirements and construction costs. I �V Introduction DEVELOPMENT STRATEGISTS Final Recommendations Three recommendations were provided for each cluster, totalling nine recommendations in all. These are: 1. Develop a medical cluster along Highway 114 for hospitals and niche health care sectors. 2. Create a pro-business environment with access to financial resources to fund medical research & development. 3. Work with the private medical industry in Southlake to market domestic Medical Tourism around the U.S. 4. Create a destination independent restaurant cluster. 5. Establish a for-profit or non-profit culinary school. 6. Develop a culinary tourism marketing strategy towards local events and culinary endeavours in Southlake. 7. Develop a mid-sized, multi -use, performing arts venue. 8. Develop a multi -use events center. 9. Establish the "First Thursdays" Art Walk Understanding that there are synergies at work between these nine recommendations, two final recommendations emerged, the "Southlake Health and Research District", and the "Culture and Culinary Hub Southlake". Both have multiple components that will create destinations for tourism spending from within the DFW Metroplex, and around North Texas and beyond. These economic development plays will require the public and private sector to work together to ensure goals are met in a timely fashion, and that the required funding is available and sustainable over the long term. 6 Item 6B - MXD Economic Cluster Analysis mm,.-O� DEVELOPMENT STRATEGISTS Item 6B - MXD Economic Cluster Analysis Regional Market Overview REGIONAL MARKET OVERVIEW ■ DFW Metroplex had a population of 6.7 million residents in 2012, the fourth largest metro area in the United States. ■ The region is a forward -thinking innovation hub that presents a strong business climate and economy, high quality of life, skilled and highly educated labor force, and a relatively low cost of living. ■ It is characterized as a major international gateway with the worlds 4t" busiest airport, DFW International Airport. ■ The region serves as a major corporate headquarters destination, and there are 18 Fortune 500 companies in the Metroplex as of 2013. ■ One of the first metro areas to recover from the Economic Recession. Item 6B - MXD Economic Cluster Analysis PiVl� 'DEdEL®PMENT STRATEGISTS Regional Market Overview -)FVEL©PMENT STRATFCI�TS ■ DFW Metroplex had 3rd largest population increase in U.S. between July 2012 and July 2013, adding 108,000 people. ■ Population could hit 10 million by 2025 according to Texas State Data Center Projections. ■ Tarrant County has 8t" fastest growing population among U.S. counties. ■ Continued growth will require providing the necessary infrastructure such as transportation and utilities, along with new jobs, housing, and lifestyle amenities. Dallas -Fort Worth -Arlington MSA Population Projections 20,000,000 18,000,000 16,000,000 3 14,000,000 0 12,000,000 a 10,000,000 8,000,000 Q 6,000,000 — 4,000,000 2,000,000 0 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2035 2037 2039 —Low Growth Rate —Medium Growth Rate High Growth Rate Source: Texas State Data Center Projections, 2012 Item 6B - MXD Economic Cluster Analysis Regional Market Overview 'PAP iVI�V DEVELOPMENT STRATEGISTS ■ The economy of the DFW Metroplex is expected to expand by 3.3% in 2014, compared with 3.4% in 2013 and 4.3% in 2012. ■ The region saw a "Return to Peak Employment" by 2012 according to industry tracked data from IHS. ■ Unemployment rate was 5.6% in November 2013, expected to decline to 5.2% by end of 2014. ■ 97,000 new jobs were created in the DFW Metroplex between 2012 and 2013. Unemployment Rate - DFW Metroplex vs. US 8.0% 6.0% 4.0% 2.0% 0.0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 --*—DFW Metroplex -*—United States Item 6BSGV Wr,:Vo�ro @rS tgAfyWpor; Bureau of Labor Statistics Regional Market Overview fiv�I' �DEdEL®PMENT STRATEGISTS ■ Texas and the DFW region continually are at the top of many national rankings: ■ Texas ranked #1 Top State for Doing Business (CNBC, 2012) ■ Texas ranked #2 State for Technology (CNBC, 2012) ■ Dallas named the Top City in the Country to find Tech Professionals (Kforce, 2013) ■ DFW region ranked #2 in the Nation for Small Business (Thumbtack.com, 2012) ■ Dallas area leads Nation in Population Growth in 2012 (Dallas Regional Chamber, 2012) Item 613 - MXD Economic Cluster Analysis PP M ". 0 �0 Regional Market Overview �DEVEEOPMENT STRATMISTS ■ Top industries in the DFW region that have been on the rise and seen strong job growth over the past three years include: ■ Oil & Gas Extraction (+23%) ■ Support Activities for Mining (+82%) ■ Machinery, Equipment, and Supplies Merchant Wholesalers (+17%) ■ Activities related to Credit Intermediation (+33%) ■ Agencies, Brokerages, and other Insurance related activities (+14%) ■ Computer System Design and Related Services (+31%) ■ Management, Scientific, and Technical Consulting Services (+15%) ■ Office Administrative Services (+20%) ■ Business Support Services (+18%) (Source: EMSI) ■ The DFW Regional Workforce Leadership Council is placing focus on five major industry sectors that are already well established in the region and are targeted for growth moving forwards: Employers 5,239 10,715 Employees 213,940 271,540 Source: DFW Regional Workforce Leadership Council 2013 Report Item 613 - MXD Economic Cluster Analysis 916 209, 380 2,000 1,803 2691460 166,590 mm'. -00 ' Regional Market Overview DEVELOPMENT STRATEGISTS ■ Dallas -Fort Worth -Arlington economy ranks Metroplex economy is expanding, with the 6t" in the US, at $440.1 billion at the end of trade/transportation and leisure/hospitality 2013. sectors driving growth during Q1 2014. ■ Healthcare is one of the largest employing sectors in the DFW Metroplex ECONOMIC GROWTH IN DALLAS -FORT WORTH FORECAST $600.00 $500.00 $400.00 $300.00 $200.00 $100.00 $0.00 - 2014 Item 613 - MXD Economic Cluster Analysis ■ Strengths include: central location and low cost of doing business combined with housing affordability attracts businesses. Economy Output ($ in Billions) $464.70 2015 $491.40 2016 Source: Southloke Economic Development & Tourism Strategy, Star -Telegram, Tronswestern _ Regional Market Overview CORE INDUSTRIES DFW METROPLEX 2013 Gross Regional Product estimates for core industries in the Dallas Fort Worth Metroplex, 2013. Financial, Professional, Tech $70 16% State & Federal Government $44 10% Manufacturing $35 8% Construction $22 5% Transportation/Warehousing $17 4% Hospitality/Conventions $13 3% Education/Health Services $13 3% Total Core Industries: $214 49% Other $223 51% Total GRP $436 100% f 'Papa M, DEVELOPMENT STRATEGISTS Financial, Professional, Tech 16% Hospitality/ Education/ J Conventions Health Services 3% 3% State & Federal Government 10% Manufacturing 8°% Construction 5% Transportation/ Warehousing 4% Source: Tronswestern Item 6B - MXD Economic Cluster Analysis Regional Market Overview DFW METROPLEX JOB BASE BY INDUSTRY, 2010 Retail trade Healthcare & social assistance Professional & technical services Local government (incl. public ed.) Finance & insurance Administrative services Manufacturing Accommodation & food services Construction Personal & other services Wholesale trade Property sales & leasing Transportation & warehousing Information & media Arts, entertainment & recreation Educational services (excl. public ed.) State government Corporate & regional headquarters Oil, gas & mining Federal government (civilian) Ag, foresty & fishing Federal government (military) Utilities PM,0� DEVELOPMENT STRATEGISTS 378 0 50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 Source: Southlake Economic Development & Tourism Strategy 15 Item 613 - MXD Economic Cluster Analysis Regional Market Overview DFW METROPLEX LEISURE/HOSPITALITY ■ Leisure/Hospitality sector in DFW increased 6.3% in the past year, with 19,000 new jobs. ■ Pic Entertainment, an upscale movie theatre, is opening a 46,000 SF location in Las Colinas in 2015, with nine auditoriums, in -theatre dining and personal -service call buttons. DFW METROPLEX EDUCATION/HEALTH SERVICES ■ $52 Billion in total value added to regional economy by the DFW health care industry ■ 601,000 jobs supported by the health care industry in DFW, including manufacturing, research and goods distributions Item 613 - MXD Economic Cluster Analysis �PM'. 0 �0 L)LVLL®PMENT STRATEGISTS LEISURE/HOSPITALITY 2014 DFW METROPLEX GROWTH EDUCATION/HEALTH SERVICES 2014 DFW METROPLEX GROWTH Source: Tronswestern, Dallas Economic Development Guide 2014 _ Regional Market Overview ' DFW METROPLEX HEALTH CARE COMPANY HEADQUARTERS lb !b _L Ba lorScott &White oUTREACH HEALTH HEALTH SERVICES 'PapaM"�0 DEVELOPMENT STRATEGISTS Texas Health Resources =M �C H RI STIIUS Tu UIlit d urig1 1hAn r T neT Health® I N T E Li N A I 1 0 N A L gra-; n( Aden Heaghhcaw A SSin t Ohms ivi ng centers "J' DFW METROPLEX ACCOMMODATIONS AND FOOD SERVICES COMPANY HEADQUARTERS aN Sky Chefs �%Q FQCIVSCR'YI-GE Vf61R96UTCA FiS� INTERNATIONAL LAQUI NTA INNS a SUITES �uPjrAt- CLUBCORP � FRIDAYS tx CHRUI ® Hotels.cOm qlclzc,e,s DISTRIBUTORS , M.A.— of Fine Wi.., Spih,c, & Nbh, Six Flag N)o Taco Buena OMNI r OTELS Source: Dallas Economic Development Guide, 2014 17 Item 613 - MXD Economic Cluster Analysis EM'--lIlIl� Regional Market Overview DEVELOPMENT STRATEGISTS ECONOMIC CLUSTER FUTURE GROWTH SECTORS ■ Primary sectors that have largest opportunity for growth according to multiple data sources and reports. The top three sectors are those that have highest viability in Southlake. LIFE SCIENCES AND HEALTH SERVICES ENERGY Item 6B - MXD Economic Cluster Analysis PROFESSIONAL SERVICES INFORMATION & COMMUNICATIONS TECHNOLOGY (ICT) LOGISTICS AND TRANSPORTATION AEROSPACE mm,.-O� DEVELOPMENT STRATEGISTS 19 Item 6B - MXD Economic Cluster Analysis Local Market Overview LOCAL MARKET OVERVIEW 'Ed M, - , 0� DEVELOPMENT STRATEGISTS ■ The City of Southlake had a population of 27,245 residents as of March 2014. There were 8,202 households as of 2012. Projected build -out population is 34,118 residents. ■ The City has a higher percentage of 10-19 year olds and a lower percentage of 65+ compared to the U.S. Average. ■ 3.22 average people per household compared to 2.58 U.S. Average. ■ 2013 median household income of $174,179. The City has the highest per capita income in the country for cities with a population over 20,000 residents. 2013 average home sales price of $643,334 ■ 68% of residents 25 years and older have a bachelor's degree or higher. CITY OF SOUTHLAKE POPULATION BY AGE ahk= City of Southlake US Census Average Under 10 years old 14.37% 14.10% 10-19 years old 21.48% 14.50% 20-64 years old 57.51% 59.00% 65 years and older 6.64% 12.40% Source: 2010 US Census, City of Southlake Fast Facts Item 613 - MXD Economic Cluster Analysis P�m' Local Market Overview °EUEL°PMLNT STRATEGISTS ■ The large majority of retail commercial in Southlake is located along Southlake Boulevard (1709), with the core at Southlake Boulevard and Carroll Avenue. ■ Southlake has hit a retail saturation point with 103 square feet of retail per capita, U.S. urban areas typically having 40 to 60 square feet of retail per resident. ■ As communities around Southlake develop and mature with their retail offerings, there is a risk of in -flow spending from these cities decreasing into Southlake. ■ Future retail development opportunities lie in niche retail categories, as well as full-service and limited -service restaurants. ■ There is also future demand for office space, however with slow historic absorption, Southlake should continue to construct "quality over quantity", with focus towards multi - tenant garden office and large scale built -to -suit campus offices. Item 613 - MXD Economic Cluster Analysis pK low ■ ONE Local Market Overview DRIVETIME DEMOGRAPHICS SOUTHLAKE AREA DEMOGRAPHICS using drive times 7 mins 7-15 mins 15-20 mins TOTAL 2010 population 27,804 238,938 430,346 697,088 2015 population 30,477 261,873 473,202 765,552 2010 number of households 8,691 92,376 170,718 272,055 2015 number of households 9,811 100,959 186,557 297,327 2010 HH incomes of $100,000+ 5,215 35,926 49,687 90,819 2015 HH incomes of $100,000+ 6,475 45,531 66,042 118,048 2010 HH incomes of $200,000+ 2,260 8,868 10,072 21,200 2015 HH incomes of $200,000+1 2,7571 10,8021 12,6861 25,245 Southlake Economic Development & Tourism Strategy Item 6B - MXD Economic Cluster Analysis 'Ed M,�0 DEVELOPMENT STRATEGISTS Ftu 407— Highland Village r E 3 LL Fm d07 xm 4D7 Fm 40 w X017 tyF FM #i7T FM 1171 ewisville9 10k Fm 544 y hfP Flower Mo d ; E Itenror Pkr Re rn+s�deP Fm 30 F(an x E Safely Lake Rd rolltan 1� 5rr; d cappoll Addis authlal '' Fyke Ra `•;Br' wood Pky Keler Orap z _ \ p ra Bran' c - r Bursar Rd C'olleyvllle Rb l Ln Stam" Rd t=lad✓ RrlDallas ��" ti Walnut Hill otauga cnu,rfy rr nt rn Cheek Spargnr Ffd � 'r � '^` I „qu fy Hnr lehland Hills r Euless jr _ Bedfmrd Irvin ` ' .— -....yr - C _ 2 -'- -fl9urst s Y- — V - j -x, r i Haltom city 1fY li!+d ,P 27 n _ ia_i - #d- Rd �� ✓:Wray :� � b m Singleton llW FIsi G l I ork Worth a FAeado rv+oii 6r � i kynd ��r R� brand Prairie °:1 22 Local Market Overview SOUTHLAKE 2030 ECONOMIC DEVELOPMENT & TOURISM STRATEGY ECONOMIC DEVELOPMENT GOALS: ■ Retain and expand existing businesses. ■ Activity recruit corporate headquarters and regional offices. ■ Enhance the entrepreneurial climate and expand the opportunities for professional networking. ■ Establish a clear incentives policy and be more aggressive in using incentives to attract and retain high-quality business to Southlake. CONCLUSION: ■ Southlake is an economic development leader in the North Texas region. ■ To remain competitive, Southlake must remain assertive in its efforts to attract business and draw tourists to the City. Item 6B - MXD Economic Cluster Analysis 'iVl�� DEVELOPMENT STRATEGISTS POTENTIAL TARGET INDUSTRIES: Corpor Ener Servic Medical & Healthcare rnialIW= oc Technology Insurance & Media Jessional ,ervices Source: Southlake Economic Development & Tourism Strategy Local Market Overview SOUTHLAKE 2030 ECONOMIC DEVELOPMENT SWOT ANALYSIS tENTHS I OPPORTUNITIE �DLVLL®PMLNT STRATEGISTS • Location (DFW area and adjacent to • Enhance retention/expansion effort airport) • Recruit corporate and regional • Reputation for high quality development headquarters • Town Square Entrepreneurship • Available Class A office space • International • Home to executives • New mixed use development • Amenities • Development of health care specialities • High end housing • School District KTITJ 1-11 IN Ll all, • Limited shovel -ready sites • Future overdependence on sales tax • Perception of rigorous development • Competition for new projects from regional process may influence brokers communities • Limited incentives available • Potential poaching of existing companies from regional and national recruitment efforts • National recession Source: Southlake Economic Development & Tourism Strategy 24 Item 6B - MXD Economic Cluster Analysis Local Market Overview CITY OF SOUTHLAKE EMPLOYMENT LABOR POOL ■ 58,665 live with 5 miles ■ 239,533 live within 10 miles ■ 1,345,630 live within 20 miles CITY OF SOUTHLAKE EMPLOYMENT BY OCCUPATION: Production/ Transportation 12% ction/ aintenance 15% Sales & Office 29% Managerial/ Professional 32% Service Occupations 12% � laiVl� DEVELOPMENT STRATEGISTS CITY OF SOUTHLAKE NUMBER OF BUSINESSES AND NON-PROFIT ORGANIZATIONS CITY OF SOUTHLAKE COMMERCIAL SF Source: City of Southlake 25 Item 613 - MXD Economic Cluster Analysis Local Market Overview CITY OF SOUTHLAKE TOP EMPLOYERS 1/@l170f1 wireless Item 6B - MXD Economic Cluster Analysis Sabre m • IN 0,g M'. 0 �0 STRATLGISTS CARROLL INDUENDENT SCHOOL DISTRICT SOUTHLAKE TEXAS Source: City of Southlake 26 mm,.-O� DEVELOPMENT STRATEGISTS 27 Item 6B - MXD Economic Cluster Analysis Southlake Tourism Overview SOUTHLAKE 2030 TOURISM STRATEGY A Southlake tourist is a visitor who comes from outside of Southlake and spends money at retail, dining and lodging establishments with the City limits. TOURISM GOALS: ■ Improve visitors amenities through Information Kiosks (completed in Town Square), a Visitor Information Center and other amenities such as public restrooms, free wifi (completed in Town Square), public art and music. ■ Provide city -sponsored events and small-scale events for residents and visitors. ■ Develop a focused message to promote a destination image for the City of Southlake. Southlake is currently conducting a branding strategy. ■ Bring groups, conferences and niche markets to Southlake. ■ Develop advantageous partnerships and give packages/discounts for visitors. ■ Marketing (online, social media, ads, visitor guide, radio campaign) to develop public relations. ■ Keep an eye on retail, restaurant, event and marketing competition. Item 6B - MXD Economic Cluster Analysis DAY -TRIP NICHE MARKETS: r v Ar YOUNG SINGLE PROFESSIONALS OVERNIGHT NICHE MARKETS: DEVELOPMENT STRATEGISTS k FAMILIES BUSINESS TRAVELERS CULINARY GIRLFRIEND GETAWAYS EDUTAINMENT SHOPPING TRAVELERS WEEKEND GETAWAYS Source: Southlake Economic Development & Tourism Strategy W. Southlake Tourism Overview SOUTHLAKE 2030 TOURISM SWOT ANALYSIS • City leaders understand importance of tourism as economic development tool • Proximity to DFW and access to SH 114 and FM 1709 • Well-qualified EDT staff • Large events well attended, variety of small events • Community organizations and volunteer network • Southlake Town Square • Location/quality of Southlake Hilton • Healthy relationships between the Hilton, Town Square and EDT • Active Chamber of Commerce • Variety of green space and safe, walkable community • Gateway Church • Quality customer service • No clear, comprehensive tourism identity for the City • Little tourism product beyond Town Square • No visitor information facility/kiosks • Tourism staff not large enough • No public restrooms at Town Square • Hot, humid weather • Quantitative analysis of events has not been performed • Inconsistency of hours at Town Square • Small number of independent restaurants/variety of cuisine • No airport/area shuttle • Lack of alternative space for teenagers to hang out Item 613 - MXD Economic Cluster Analysis �DEVEL®PMENT STRATEGISTS • Improving visitor information access • Social media tools • Build upon relationships with other communities • Potential for additional small events • Providing diversionary shopping and dining for those attending corporate training and workshops • Partnerships with regional events and activities • New hotels to broaden market offerings • Existing website can be enhanced • Leverage existing video footage and photo library • Utilize existing venues for entertainment • Leverage existing assets (Bob Jones Nature Center, regional historical groups) • Competing shopping destinations with similar formats and product mix continue to emerge in the area • Overdevelopment of chain retail and restaurants • Regional competition such as Entrada in Westlake could pull potential tourists away from Southlake. • Not diversifying tourism product beyond shopping and dining • Waiting too long and losing the opportunity to be proactive and set the standard for others Source: Southlake Economic Development & Tourism Strategy 29 Southlake Tourism Overview Major Tourism Attractions Near Southlake - '114t Trophy Club Bob Pjas 0 Southlake Town Square .................... ....................... ©es#lake� . Grapevine Mills gpgp © Bass Pro Shops tVV Dove Rd o — OHistoric Downtown Grapevine Q tx © Grapevine Lake • OGaylord Texas Resort & Convention Center OGrapevine Vintage Railroad Great Wolf Lodge OBob Jones Nature Center The Village at Colleyville Texas Motor Speedway ®Cowboys Stadium & Globe Life Park in Arlington ® Allen Event Center Item 613 - MXD Economic Cluster Analysis T E X A S T IA R R A N T 1 Old Union f I Bransford. `}3U29 3126 all Johnson Iland Hills �''Colleyull�,,,�r Hurst �,y Rd Source: Dallas Fort Worth & Beyond �iVl� ' DEVELOPMENT STRATEGISTS © Murrell Pa Grapet-Me L ake ................. . Qa I O �DFW Airport S r 97 X60 Dallas -Fort Worth I ernational f Minters { �-a Chapel 30 Southlake Tourism Overview Hospitality Employer Density in the DFW Region 1�5PII1l11IlVITAIITY BUSINESSES Source: Dallas Regional Chamber Item 6B - MXD Economic Cluster Analysis �l��' �DEdEL®PMENT STRATEGISTS Meeting and Exhibition Facilities ODallas Convention Center © Fort Worth Convention Center © Music Hall at Fair Park QGaylord Texan Resort and Convention Center © Hilton Anatole Hotel OSheraton Dallas Hotel ODallas Market Hall Hyatt Regency Dallas at Reunion OWill Rogers Memorial Center 0 InterContinental Dallas Other Civic and Convention Sites mArlington Convention Center ® Irving Convention Center at Las Colinas ® Plano Convention Center 0 Addison Convention Center ® Denton Expo Center 0 Frisco Conference Center mRichardson Civic Center Hurst Conference Center 31 Southlake Tourism Overview MAJOR SOUTHLAKE EVENTS ■ Art in the Square is a three-day art festival held in Town Square. ■ 2013 attendance was approximately 75,000 people. ■ Ranked as #8 Fine Arts Festival in U.S. ■ 77% of attendees come from outside Southlake. ■ Oktoberfest is a three-day festival at the beginning of October. ■ 2013 attendance was approximately 50,000 people. ■ 79% of attendees come from outside Southlake. Item 6B - MXD Economic Cluster Analysis Vl�[�_Mqw% P STRATEGISTS Jy y Source: City of Southloke Southlake Tourism Overview MAJOR SOUTHLAKE EVENTS ■ Stars and Stripes is a one -day event held in Town Square. ■ 2013 attendance was approximately 30,000 people. ■ 74% of attendees come from outside Southlake. ■ Southlake Tree Lighting is a one -day event held in Town Square. ■ 2013 attendance was approximately 8,000 people. ■ 56% of attendees come from outside Southlake. Item 6B - MXD Economic Cluster Analysis PiVl� 'DEdEL®PMENT STRATEGISTS Source: City of Southloke Southlake Tourism Overview SOUTHLAKE VISITOR PROFILE 'Ed M, DEVELOPMENT STRATEGISTS ■ The Southlake Visitor Profile is completed employing intercept data from Southlake's four major events, plus a license plate survey. ■ 40% of event attendees are from Southlake or adjoining cities. ■ Although 73% of visitors to events are from outside of Southlake, the visitors per capita is highest from surrounding communities such as Keller, Roanoke and Trophy Club. VISITORS PER CAPITA (PER 100,000 POPULATION) DURING STARS AND STRIPES, 2014 500 0 450 0 0 400 0 L 350 a a 300 250 Q m 200 U y 150 a v, 100 50 0 ooe�ota Pi Q' Loi ot'` Hca C�ta� A`\�a ,ciao `t'o hoJ Acoir �r �o Item 6B - MXD Economic lQMgeAnqil�*i gf Southlake and The RetailCoach 34 Arl��' Southlake Tourism Overview DEVELOPMENT STRATEGISTS ■ 45% of visitors at events plan to shop, while 48% plan to dine in restaurants. ■ 91% of event attendees are day visitors and do not spend a night in a hotel. ■ Primary age group visiting Southlake is 31 to 50. This is followed by either 50+ or Under 12 years old depending on the event. ■ 13 to 30 year olds are the smallest age group and more opportunities should be made to capitalize in this market. ■ Majority of event goers attend due to: ■ Driving by ■ Family & Friends ■ Newspaper ■ Opportunity to increase attendees through social media. ■ Although not a large amount of visitors, Southlake is pulling from other Texas Metro areas such as Austin, San Antonio, and Houston. Item 6B - MXD Economic Cluster Analysis �iVl�[�-Mqw% Southlake Tourism Overview �°EVEL°PMLNT STRATEGISTS ■ Aside from events, the primary reason to visit Southlake is Southlake Town Square. ■ Town Square pulls from around the DFW Metroplex with visitors as far north as Oklahoma. ■ Girlfriend getaways are noted as popular, staying at the Southlake Hilton and shopping at Town Square. ■ Visitors have noted that there should be more unique and intriguing dining options available, along with other entertainment options aside from shopping. 36 Item 6B - MXD Economic Cluster Analysis Southlake Tourism Overview ■ The average Southlake visitor: PiVl� 'DEdEL®PMENT STRATEGISTS ■ Is between the ages of 31-50 and most likely has children under the age of 12. ■ Is visiting from a surrounding community within a 10-20 minute drive from Southlake. ■ Is visiting only for the day and will not stay the night. ■ Is visiting for an event or to shop at Southlake Town Square and adjacent retail properties. ■ Arrives by private vehicle. Item 6B - MXD Economic Cluster Analysis N � Rr N �iVI�V DEVELOPMENT STRATEGISTS 38 Item 6B - MXD Economic Cluster Analysis Vl�[�—Mqw% P STRATEGISTS MEDICAL Health care industry in DFW is more than just health care services; it also includes manufacturing, research and goods distribution - Dallas Economic Development Guide, 2014 Item 6B - MXD Economic Cluster Analysis •lf f � f 39 Medical Cluster Analysis DFW METROPLEX HEALTH CARE OVERVIEW DEVELOPMENT STRATEGISTS ■ $52 Billion in total value added to regional economy by the DFW health care industry. ■ 601,000 jobs supported by the health care industry in DFW. ■ Health care industry in DFW is more than just health care services; it also includes manufacturing, research and goods distribution. ■ Health care industry is one of the largest economic sectors in the DFW region, playing an essential role in the DFW economy. Number of Establishments 685 Q�2 Item 613 - MXD Economic Cluster Analysis ■ Health Care Services ■ Government Administration Medical Manufacturing ■ Wholesale Trade Medical Insurance 2° Total Employment 13.571 ■ Health Care Services ■ Government Administration Medical Manufacturing ■ Wholesale Trade Medical Insurance Source: Tronswestern, Dallas Economic Development Guide 2014 40 Medical Cluster Analysis DFW METROPLEX HEALTH CARE EMPLOYMENT NUMBERS HEALTH CARE SERVICES 377,998 GOVERNMENT ADMINISTRATION 2,998 MEDICAL MANUFACTURING 10,350 WHOLESALE TRADE 13,571 MEDICAL INSURANCE 9,302 ............................ fTTfTffff��T�fff�ff�ll�fffR�f�ft 'Papa M, DEVELOPMENT STRATEGISTS Source: Dallas Economic Development Guide 2014 Item 613 - MXD Economic Cluster Analysis Medical Cluster Analysis DEVELOPMENT STRATEGISTS 5, elder) living centersu { LEWSMU N %/ �- t4. OUTREACH r 'T Concentra- KEY � HEALTH SERVICES 0 DART Rail & Stations a'" CURD �=-- _ Tollways HCA United Surgical MIMS ..<D.. Trinity Railway Express (TRE) sLUTHLA E andStation— toIrving,mrar— I N T E R N A T I p N A L DEW Airport and Fort Worth Hospital Corporation of America" I i A _ .av DISTANCE ?i ^CHRISIUSmom ^� rr Dallas to Fort Worth: 32 miles sRt>:MOuF Health,. _AVE f- MLLETWILLE (�Y � a w. rwscua KLAND 1 BaylorScott&Wbite snRGT r Huiar rnr {L 1a Texas Health = TeneT Resources 5M aQ , CookChildretfsw �e KfEEF HIL EMUCOK GRFNnfiiAlRE fry mR CANWLH CPGARHLL .561E n= CFTA_L �-� an DFW METROPLEX HEALTHCARE MAJOR CORPORATE HEADQUARTERS Source: Visit Dallas, Dallas Economic Development Guide, 2014 42 Item 6B - MXD Economic Cluster Analysis Medical Cluster Analysis 'Papa M, DEVELOPMENT STRATEGISTS T Mole I T LEWMVLUE ® -.5. . s4 LlE 1 � PIAMa % KEY C4HHL�LLTU 1 T� 0 DART Rail & Stations Tollways AUOLiIXA GRAPEVINE Fa T FOCHA YON g h ..o-., Trinity Railway Express (TRE) .L % and Station -to IrvSng, ©, DEW Airport and. Fort Worth mLEH. E,owrrHLAHE yaNT DISTANCE '7( � ,.�.,. �� _-�--_--- --� Dallas to Fort Worth: 32 miles KOHTH itli AIpQI P 111 11�� hVE +- �.. COLLEYWRLE WATAUG0. BEDFOW Ld.I I r: VLLAIGE Epi. •e..ccruMO%ENGfRSL7N _ WPm amr �r MING urr ..ac oL� - �T �4Y <Iv'sac ` NYruul _. n...s� qui •. � . HALT{NA OrY -_ ,.,-„,,.•.• .. j.• •• asucr Yx 5 DE =t- �Ia DALLAS mE'dGFu L' L r - - Ian Dung -7 FAF MEMMrE IPI JINN Sael�. PJ.udFh. Rv�h�” 4 PAH!' Fyy-. Ev1' STATIYY 54�r. _ i YiPYn L=gP�1.4' / � _. 65HOPAM OtEIRCT ' HES-rr.TAZ - Aet � • I • WORTH-` 'RINVP11lID P� �31YiiRe.MG ILLrv..>t '• <e GHINO VIAE .Pyg KfESTH L —. ,may DFW MAJOR HOSPITALS (OVER i7iF f, 200 BEDS) EMOITAM F OESOTO LIRTtSH11 CEDAR HLL LANC§3'ER F Source: Visit Dallas, Dallas Economic Development Guide, 2014 Item 613 - MXD Economic Cluster Analysis Medical Cluster Analysis DFW MAJOR HOSPITALS (OVER 200 BEDS) 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 �%� Ar [�—Mqw% M,0 DEVELOPMENT STRATEGISTS Source: Dallas Economic Development Guide, 2014 Item 613 - MXD Economic Cluster Analysis Major Hospitals Baylor University Medical Center at Dallas Parkland Memorial Hospital Texas Health Presbyterian Hospital Dallas Number of Beds 1,025 968 866 Texas Health Harris Methodist Fort Worth 731 Medical City Dallas 645 Baylor All Saints Medical Center at Fort Worth 596 Children's Medical Center Dallas 546 Veterans Affairs Medical Center John Peter Smith Hospital Methodist Medical Center UT Southwestern University Hospital 544 537 515 434 The Medical Center of Plano 427 Texas Health Arlingtion Memorial Hospital 417 Texas Health Presbyterian Hospital Plano 370 Medical Center of Arlington 326 Plaza Medical Center of Fort Worth 325 Cook Children's Medical Center 318 Methodist Charlton Medical Center 309 Texas Health Harris Methodist Hospital H -E -B 296 Baylor Medical Center at Irving 296 Baylor Medical Center at Garland 281 Medical Center of McKinney 259 Texas Health Presbyterian Hospital of Denton 255 Medical Center of Lewisville 238 Baylor Medical Center at Carrollton 237 Baylor Regional Medical Center at Grapevine 233 Doctors Hospital at White Rock Lake 232 Texas Health Harris Methodist Southwest 229 Huguley Memorial Hospital 213 Methodist Richardson Medical Center 209 Denton Regional Medical Center 208 �%� Ar [�—Mqw% M,0 DEVELOPMENT STRATEGISTS Source: Dallas Economic Development Guide, 2014 Item 613 - MXD Economic Cluster Analysis i�7_1110%lk mm'..'%� 1.dr 0�0 Medical Cluster Analysis DEVELOPMENT STRATEGISTS LEWZSVLUE KEY DART Rail& Stafon5 Tollways D... Trinity Railway Express (ME) and Station —to Irving, DEW Airport and Fort Worth DISTANCE 'ELLER SERE Dallas to Fort Worth: 32 miles KUM z CCLLEYWRIE WATAUGA BEDFORD MING ar RAIIQN CITY ........ 0- DALLAS 13EFGA man �iHrl� AMJMGTDN P.a .�L: rrry ,a 1 666. DIS7RCT WORTH Item 6B - IMIXID Economic Cluster Analysis AREADE� DFW HEALTH CARE CONSTRUCTION PROJECTS Source: Visit Dallas, Dallas Regional Chamber GRANDFRAIRE 0— "'RE, 'ILL DMCANVP LF CEDAF. HLL 'ER LANCAS_ 0 Item 6B - IMIXID Economic Cluster Analysis AREADE� DFW HEALTH CARE CONSTRUCTION PROJECTS Source: Visit Dallas, Dallas Regional Chamber Medical Cluster Analysis Item 613 - MXD Economic Cluster Analysis �iVl�� DEVELOPMENT STRATEGISTS DFW METROPLEX HEALTH CARE CONSTRUCTION PROJECTS ONew Parkland Hospital Facility: New Public Hospital Size: 2 Million SF; 862 Beds Estimated Completion: Fall 2014 Replacement of the existing 55 -year-old facility. © Medical City Dallas and Children's Expansion Facility: Hospital expansion and renovation Size: Renovating 66,548 SF; Building 169,795 new SF Estimated Completion: Q4 2015 © Forest Park Medical Southlake (Phase 2) Facility: Hospital expansion Size: 1,142,000 SF; 54 private inpatient rooms including 10 VIP suites Estimated Completion: 2013 The center is also expanding through the construction of a 88,000 SF four-story office building containing medical office spaces with supporting uses to be completed late summer/early fall 2014. 0 Methodist Dallas Medical Center Facility: Hospital expansion Size: 248,000 SF Estimated Completion: Summer 2014 Expansion includes emergency, critical care and surgery departments. © HCA Medical Center Plano Facility: Hospital expansion Size: 56,000 SF; 68 Beds Estimated Completion: Late 2014 Source: Dallas Regional Chamber Medical Cluster Analysis Item 613 - MXD Analysi' �iVl�� DEVELOPMENT STRATEGISTS DFW METROPLEX HEALTH CARE CONSTRUCTION PROJECTS OMethodist Richardson Medical Center Bush/Renner Facility: Acute Care Hospital Size: 266,250 SF; 125 Beds Estimated Completion: Fall 2014 OTexas Health Harris Southwest Hospital Facility: Acute Care Hospital expansion Size: 90,000 SF Estimated Completion: Q1 2014 QBaylor Medical Center at Waxahachie Facility: Hospital expansion Size: 299,000 SF; 124 Beds Estimated Completion: Fall 2014 O HCA North Fort Worth Facility: Acute Care Hospital Size: 142,000 SF, 30 Beds Estimated Completion: December 2014 Expansion includes emergency, critical care and surgery departments. Grapevine Patient Tower at Baylor Regional Medical Center at Grapevine Facility: Hospital expansion and renovation Size: Capacity for 108 Beds Estimated Completion: Spring 2013 Texas Health Harris Methodist Hospital Fort Worth Facility: Hospital expansion Size: 116,000 SF Estimated Completion: End of 2013 Source: Dallas Regional Chamber Medical Cluster Analysis 1'dRI:: 4.:�i Item 613 - MXD Economic Cluster Analysis IOP M ". 0 �0 DEVELOPMENT STRATEGISTS DFW METROPLEX HEALTH CARE CONSTRUCTION PROJECTS ® William P. Clements Jr. University Hospital Facility: Research and Education Hospital Size: 460 Bed tertiary -care hospital Estimated Completion: Late 2014 ® UT Southwestern Clinical Centers Phase 2 Facility: Research and Education Hospital expansion Size: 26,500 SF Estimated Completion: Fall 2013 Advance Particle Therapy Center at UT Southwestern Medical Center Facility: Proton Therapy Center operated by UTSW physicians/staff Size: 108,000 SF Estimated Completion: 2017 ® Texas Center for Proton Therapy, by Texas Oncology Facility: Proton Therapy Center Size: 50,000 SF Estimated Completion: 2015 Methodist Mansfield Medical Center Facility: Hospital expansion, new patient care tower Size: 110,000 SF, 118 Beds Estimated Completion: Fall 2015 Baylor Surgical Hospital Facility: New Acute Care Facility Size: 82,000 SF Estimated Completion: August 2014 Source: Dallas Regional Chamber Medical Cluster Analysis DFW HEALTHCARE ESTABLISHEMENTS - SERVICES AND GOVERNMENT Awl Item 613 - MXD Economic Cluster Analysis A M�� �DEVEL©PMENT STRATEGISTS RESEANCH & DEVEL IN BIOTECHNOLOGY 0 t4p- 49 ANALYTICAL LABORATORY INSTRUMENT MANUFACTURING IRRADIATION APPARATUS MANUFACTURING lkif 4 PHARMACEUTICAL AND MEDICINE MANUFACTURING MEDICAL EQUIPMENT AND SUPPLIES MANUFACTURING iO-a HEALTH AND WELFARE FUNDS DIRECT HEALTH AND MEDICAL INSURANCE CARRIERS WHOLESALE DISTRIBUTION OF MEDICAL, DENTAL, HOSPITAL EQUIPMENT AND SUPPLES w- W -i WHOLESALE DISTRIBUTION OF DRUGS, DRUG PROPRIETARIES AND DRUGGIST'S SUNDRIES OPHTHALMIC GOODS MERCHANT WHOLESALERS M'.[�_Mqw% Medical Cluster Analysis �DEVEE®PMENT STRATEGISTS CLUSTER OF MAJOR HEALTH CARE OPERATIONS IN DFW METROPLEX, EACH FACILITY REPRESENTED BY DOT i � r • 4 ` • • 121�� r • — • gap !ai •�75 ■ • • i • • ■ The above noted map displays various health care operations throughout the DFW Metroplex. These include hospitals, long-term care centres, research and development and corporate offices, among others. Clusters focus towards Dallas and Fort Worth. Source: Dallas Economic Development Guide, 2014 Item 613 - MXD Economic Cluster Analysis TOTAL NUMBER OF BEDS IN & NEAR SOUTHLAKE 346 TOTAL NUMBER OF MEDICAL STAFF 1,876 rd Medical Cluster Analysis DFW METROPLEX HEALTH SERVICES SUMMARY 'Papa M, DEVELOPMENT STRATEGISTS ■ DFW Major hospitals are clustered near downtown Dallas, Fort Worth and Plano, with opportunities for expansion in the Mid -Cities area. ■ Baylor Regional Medical Center at Grapevine, with 233 beds, is the largest hospital near Southlake, located only a five minute drive away. ■ Education/Health Services sector in DFW increased 2.2% in the past year, with 8,400 new jobs. Source: Tronswestern Item 613 - MXD Economic Cluster Analysis Medical Cluster Analysis SUMMARY 'Papa M, DEVELOPMENT STRATEGISTS ■ DFW has a number of upcoming medical construction and expansion projects, clustered near downtown Dallas and Fort Worth ■ Forest Park Medical Center Southlake and Grapevine Patient Tower at Baylor Regional Medical Center at Grapevine have undergone expansion, adding 162 beds to the area. ■ Forest Park Medical Center Southlake is expanding which will duplicate what it currently has, as well as opening an 88,000 SF four -storey office building containing medical office spaces with supporting uses. ■ With large amount of population growth in cities west of Southlake, opportunities lie to capture health and medical needs for new residents in these communities. ■ Rather than focus simply on the number of hospital beds, niche specialty fields such as Pediatrics, Geriatrics, Plastic Surgery, Pharmacy, Cardiology, Neuroscience, etc. continue to grow and have opportunities to be connected with University and College satellite research facilities. Item 613 - MXD Economic Cluster Analysis Medical Cluster Analysis MEDICAL TOURISM ANALYSIS 'Papa M, DEVELOPMENT STRATEGISTS ■ Domestic medical tourism is a rapidly growing industry in the U.S. International medical tourism has many barriers such as passport issues, malpractice fears, and long-distance travel which makes domestic medical tourism an attractive option. ■ Large American companies are beginning to offer employees in need of expensive and complicated procedures travel expenses to health facilities with proven quality and highly - trained staff. ■ Sending employees to high-end facilities assures fewer complications, better outcomes, and less of a chance of hospital readmission, saving the company money in the future. ■ Many companies identify certain surgeons, facilities, or hospitals that they deal with on a consistent basis, especially for complex surgeries. Large-scale employers are able to save money by negotiation a single rate. ■ Facilities with high-quality care and low prices can reduce costs for employers between 20% to 40%, easily covering the cost of travel and potential accommodation. ■ Many cities and regions are beginning the capitalize on the growing domestic tourism market, especially those with established and well-known medical facilities. Source: Kaiser Health News, MedicalTourismMog.com Item 6B - MXD Economic Cluster Analysis Medical Cluster Analysis DOMESTIC MEDICAL TOURISM CASE STUDY Miami, Florida • Advantages include top quality medical care and technology, an international airport, comfortable accommodations and year-round sunshine. • Miami's hospitals assists with travel, passport arrangements and accommodations. • Medical spas that provide, and are not limited to, skin rejuvenation, medical weight loss, laser hair removal, non-invasive anti -aging procedures, facials, massages and laser technologies. • Speciality pediatric care hospital ranked among the best in the nation. Item 6B - MXD Economic Cluster Analysis 'Papa M, DEVELOPMENT STRATEGISTS Ado KEY LESSONS FOR SOUTHLAKE • High quality procedures that blend state-of-the-art technology and beauty to attract high net -worth patients and domestic medical tourism. • Provides world-class care in an organized, efficient medical environment. • Encourage medical tourism through promotion. 56 Medical Cluster Analysis DOMESTIC MEDICAL TOURISM CASE STUDY Colorado • Colorado is known as an active and healthy state, and is focusing towards weight -loss and health & wellness programs within medical tourism. • The recently completed Health and Wellness Center on the Anschutz Campus has created high-tech space for research, programs and additional jobs - an R&D Center for wellness. 'iVl�� DEVELOPMENT STRATEGISTS KEY LESSONS FOR SOUTHLAKE • Tourism industry can include niche markets such as traditional and alternative medicines, natural food products, health information technology, research, fitness and outdoor recreation. • Creating a focused brand is important for attracting medical tourism within a certain niche market. 57 Item 6B - MXD Economic Cluster Analysis Medical Cluster Analysis MEDICAL CLUSTER SWOT ANALYSIS rp� h -�STRENGTHSAK_ The health care industry is one of the largest economic sectors in the DFW region and drives employment growth. Affordable and high-quality health care in an important factor in recruiting businesses and talent and ensuring the DFW region's competitiveness. Health care industry jobs are difficult to outsource and remain even under periods of economic uncertainty. The health care industry is growing in the DFW Metroplex, with over 15 significant construction projects currently underway or just recently completed. Continued demand for health care establishments to go along with the critical mass of key industry clusters in DFW in Health IT, Research & Care, Medical Devices & Supplies and Health services. As population expands and baby boomers age, there is a rapidly growing demand for health care goods and services. Opportunity to develop medical clusters within the Mid -Cities area. Opportunity for health educational institutions in the area to develop a skilled work -force. Expand on the existing pediatric medical facility in Southlake. Opportunity for emerging niche medical clusters. Opportunity for medical tourism once the cluster matures in Southlake. Item 6B - MXD Economic Cluster Analysis DEVELOPMENT STRATEGISTS WEAKNESSES Medical facilities in Southlake are dispersed along Highway 114 with limited connectivity. Currently, there are no large-scale research & development centers or educational medical facilities located in Southlake. Majority of medical clusters are located in Dallas, Fort Worth and Plano, with a gap in the Mid - Cities area. Southlake currently has a lack of inpatient space, with only 70 beds in the City (and 346 near Southlake, located in Grapevine or Trophy Club) Grapevine has an established medical cluster in close proximity to Southlake. Large amount of health care construction in the DFW Metroplex in the next few years could reduce demand for new facilities. Surrounding communities capitalizing on medical tourism prior to Southlake. Develop a medical cluster along Highway 114 for hospitals and niche health care sectors. nM Create a pro-business environment with access to financial resources to fund medical research & development Work with the private medical industry in Southlake to market domestic Medical Tourism around the U.S. Medical Cluster Analysis RECOMMENDATIONS & IMPLEMENTATION STRATEGY DIRECTION • Utilizing Forest Park Medical and Children's Health as a foundation, provide opportunities to private health corporations to establish themselves in Southlake. • Ensure that new medical facilities that come into Southlake locate along 114 to create a medical cluster. • Focus towards high-end/niche medical specialties, along with health & wellness that capitalize on medical tourism. Item 6B - MXD Economic Cluster Analysis 'Papa M, DEVELOPMENT STRATEGISTS APPROACH • Create a delineated "Medical District" area along Highway 114 to enable and trigger future medical development. • Create a zoning or land use designation within the delineated area that provides direction for future development. 60 Medical Cluster Analysis RECOMMENDATIONS & IMPLEMENTATION STRATEGY TYPICAL BUILDING FORMAT • One to six -storey buildings that incorporate medical facilities, offices, and research & development space. • Strong and iconic architectural features create a "premium" building format. COMPLIMENTARY USES • Offices • Food/Beverage • Reta i I • Residential PHASING TIMELINE Item 613 - MXD Economic Cluster Analysis �iVl� ' �L)LVLL®PMENT STRATEGISTS . �L kE-7 MIWM Medical Cluster Analysis RECOMMENDATIONS & IMPLEMENTATION STRATEGY rCENTER RESEARCH &DEVELOPMENT DIRECTION • There is an opportunity to focus on pediatric research and development to build on the existing pediatric medical center in Southlake. • Stand-alone Research & Development Center can facilitate private, public or not-for-profit research in biomedical development. • Focus on R&D in niche expanding sectors such as Bioinformatics. rip V Item 6B - MXD Economic Cluster Analysis 'Papa M, DEVELOPMENT STRATEGISTS APPROACH • Encourage expansion of local university to develop a Research & Development Center in partnership with the City of Southlake. • Investigate avenues to access financial resources to fund medical research & development (philanthropic, grants, various levels of government funding, etc). • Offer land donation for relocation or provide free servicing for establishment of a research center. Medical Cluster Analysis RECOMMENDATIONS & IMPLEMENTATION STRATEGY TYPICAL BUILDING FORMAT • Usually part or adjacent to a university campus or satellite campus. • Requires specific building layout for research. • Includes research laboratories, office space and equipment space. COMPLIMENTARY USES • Hospital/Clinics • University/College • Offices • Food/Beverage • Reta i I • Residential PHASING TIMELINE Item 61 'Papa M, DLVLL©PMLNT STRATLGISTS q t. ' � a r A 63 Medical Cluster Analysis RECOMMENDATIONS & IMPLEMENTATION STRATEGY DIRECTION • Opportunity to market Southlake as a destination for Medical Tourism once the medical district along Hwy 114 matures. • Focus on growing niche areas such as surgical procedures (ex. bariatric surgery, cosmetic, transplants and implanted medical devices). • Market towards high-end clientele and large national companies. • Use the proximity to DFW Airport as a major strength when developing the strategy. • Southlake Town Square provides strong shopping amenity for medical tourism. 'Papai ,.00 ' DEVELOPMENT STRATEGISTS APPROACH • Continue to build upon the medical cluster emerging along Hwy 114. • Create a medical tourism marketing strategy once the area matures and the cluster builds - PHASING TIMELINE out. • Form partnerships with medical corporations and organizations in Southlake to ensure that all parties are working towards the same goal. 64 Item 6B - MXD Economic Cluster Analysis Vl�[�—Mqw% p STRATEGISTS 65 Item 6B - MXD Economic Cluster Analysis Culinary Cluster Analysis CULINARY TOURISM �iVI�V DEVELOPMENT STRATEGISTS "any tourism experience in which one learns about, appreciates, and/or consumes food and drink that reflects the local, regional, or national cuisine, heritage, culture, tradition or culinary techniques" - Ontario Culinary Tourism Alliance 66 Item 6B - MXD Economic Cluster Analysis _ Culinary Cluster Analysis CULINARY TOURISM la Ap i ,.00 ' DEVELOPMENT STRATEGISTS ■ 17% of American leisure travellers (27 million) engaged in culinary or wine -related activities between 2010 and 2013. ■ 60% of American leisure travellers are interested in culinary travel in the near future. ■ Culinary travellers are younger, more affluent and better educated than non - culinary travellers. Item 6B - MXD Economic Cluster Source: Travel Industry Association 2014 _ Culinary Cluster Analysis CULINARY TOURISM 'Papa M, DEVELOPMENT STRATEGISTS ■ A Travel Activity and Motivation Study found that 35% of participants in any culinary activity had a household income of over $100,000. This matches the demographics of Southlake and many of the surrounding communities. ■ < $20,000 ■ $20,000 - $39,900 ■ $40,000 - $59,900 $60,000 - $79,900 ■ $80,000 - $99,900 ■ > $100,000 ■ Not Stated Source: Travel Activity and Motivation Study, 2006 68 Item 6B - MXD Economic Cluster Analysis _ Culinary Cluster Analysis CULINARY TOURISM �iVl� ' �L)LVLL®PMENT STRATEGISTS ■ More serious culinary travellers base their destination mainly on the local food, wine, and shopping environment. ■ Other important factors are the hotel experience and leisure activities available in the local area. 7 3 PI,V' ,W 69 Item 6B - MXD Economic Cluster Analysis Vl�[�_Mqw% Culinary Cluster Analysis P STRATEGISTS CULINARY TOURISM ■ Culinary travellers spend on average $1,194 per trip / per person. ■ 36% or $425 of the travel budget goes towards food -related activities. ■ This number can jump to 50% or almost $600 depending how serious the traveller is about food and drink. Item 6B - MXD Economic Cluster Source: Travel Industry Association 2014 70 GOURMET FOOD SHOPPING i VISITING FARMERS MARKETS 11 Y COOKING CLASSES UNIQUE DINING EXPERIENCES I ATTENDING FOOD FESTIVALS ■ t - BREWERY TOURS & TASTINGS .,' 'SII 1 CULINARY FOOD TOURS I. fill Culinary Cluster Analysis TOP U.S. DESTINATIONS FOR FOOD -RELATED TRAVEL 16% 'Papa M, DEVELOPMENT STRATEGISTS 14% 12% 4t" most popular destination in America 10% 8% 6% 4% 2% 0% `akq �� �� e� `aA0 -Qelc Cie �o�` �411�� �e �hJ` ar`� �. Q� J.IR Source: Travel Industry Association 2014 72 Item 6B - MXD Economic Cluster Analysis _ Culinary Cluster Analysis DFW CULINARY TOURISM 'Ed M, - , 0� DEVELOPMENT STRATEGISTS ■ Although the Metroplex is well known for its excellent and diverse food and drink offerings, information is limited within the realm of culinary tourism or "foodie" culture. ■ Most City tourism websites simply have restaurant listings. ■ Dallas Fort Worth & Beyond (run by the Dallas/Fort Worth Area Tourism Council) devotes a small piece of their website to the top "foodie" destinations in the Metroplex. Item 613 - MXD Economic Cluster Analysis _ Culinary Cluster Analysis TOP FOODIE DESTINATIONS IN THE DFW METROPLEX — DFW & BEYOND 'Papa M, DEVELOPMENT STRATLGISTS Source: DFWANDBEVOND.COM 74 Item 613 - MXD Economic Cluster Analysis LiW23VLU 15 kqurtm % KEY :.. E4RFS.�LLTU 1 fwbm. 0 DART Rail & Stations ,- ` Tollways .. o- . . Trinity Railway Express (TRE) GRAFE10t) .0 AMMON T RIOiAIMSM and Station —to Irv'ng, seArrHu DFW Airport and Fort Worth ALAR. T) _ DISTANCE( a '-' 4.av Dallas to Fort Worth: 32 miles p.r�r oA.Ira�Ei IiX7N'}I yyi,� r� GRU:NL1LLe Vis• IiCMi0.hfY. HIES TILT p, '.. r, n AVE ��{{nN os.nT. J�. mwm �1 TY� t' lyi..•�yy\µ� r V CCLLEYVR.LE M1�dILa .�-.� WATAUG0. .. n �'• I Euosaatna --- - BEDFORD ,�,, ET➢LES _ I "d ur ex.n ,� F1tA1t VELA1GE ppG�NLAI!d} c ui rte' n,�.R Lvn farr,�n t T Tctamr H-IdENDIPWN MING py� 1Ada1C -_ r.e.iwun .......�• ...... _ HA':TCAN CRY.-..,....�..?...!. .....''1'" _ �Lxusr T' J n¢ yy��ryq��, AAfiOMN E.y . �..�,. °� DALLASR YflIT F1 rt sv'�'r.ehw'• RiRl: Fr � ME547fIRE 1Nweyy.'. '__ '• xw.r.l ii,cdwn T LSgY-7 E6dW L°" i 65HQF �n QlSTRICT 4�•,r FORTWORTH Llc.vy O Mozzarella Company - r;RuaQFRA,lne r Dallas Farmers Market [iJn ZCfkEY-- HU i_NEPAde. LY - = --. _ _-••�� - a Grapevine Wine Trail 9AlIYtANVRLH DESETIo Rahr & Sons Brewing Company Nl6NS 16➢ CEDAR HRL LANC§3,ER Mrs Baird's Bread Source: DFWANDBEVOND.COM 74 Item 613 - MXD Economic Cluster Analysis _ Culinary Cluster Analysis TRINITY GROVES - DALLAS PiVl� 'L)LVLL®PMENT STRATEGISTS ■ 15 -acre restaurant incubator within an 80 -acre development project just 5 minutes from downtown Dallas. ■ Funded by Phil Romano, founder of Macaroni Grill restaurant chain. ■ Designed to attract young diverse chefs who have excellent culinary skills but little or no capital to setup their own business. ■ The incubator allows for entrepreneurship as well as diversifying the Dallas dining scene. Item 6B - MXD Economic Cluster Analysis Culinary Cluster Analysis TRINITY GROVES -DALLAS 'PAP 0 DEVELOPMENT STRATEGISTS c'acry fr U s g L ■ Diversity of restaurants along a range of ethnicities and cultures. 1 Fish Market Grille C H I N A T O W N COMIDA•DIM•SUM•COCKTAILS r \ El��1__ 1 11GASTRO 13F 7 Item 613 - MXD Economic Cluster Analysis BSO CASA RUBIA RK POTT T FLATS MOROCCAN BISTRO & BAZA,kR SUSHI BAYASHI _ Culinary Cluster Analysis RESTAURANT CLUSTERS PiVl� 'L)LVLL®PMENT STRATEGISTS ■ Restaurant clusters such as Trinity Groves are a new and exciting way to create a culinary destination that pulls in spending dollars from around a metro region. ■ Portland has created micro -restaurant clusters, pods of small restaurants (500 to 1,500 square feet each) that are a step up from food carts. ■ Lower rents give entrepreneurs and budding chefs the ability to start a business on a small budget. Common dining spaces outside cut costs. Initial capital costs for the construction is also quite low. ■ Concept is also attractive to established restaurant owners who are looking to experiment with new concepts. ■ Could finance these projects through local private equity pools rather than loans. Item 6B - MXD Economic Cluster Analysis Source: kgw.conn, Urban Land Institute (2014) _ Culinary Cluster Analysis CULINARY EVENTS 'Papai ,-00 ' DEVELOPMENT STRATEGISTS ■ Bi -Annual or Annual events based around a specific type of food or drink draws visitors from further away as they plan a trip based around the event itself. ■ Building a "brand" allows the event to grow over the years with repeat visitors. ■ Influx of visitors for the event has an economic multiplier effect for hotels, shopping, and services. 1 WEST END FOOD FESTIVAL October 47, 2013 *00 MF West End GORDON Ndghb'rvrk..d Fa d HCWO.k: WNtt FM r..tl FxtlrY° 78 Item 613 - MXD Economic Cluster Analysis _ Culinary Cluster Analysis TEXAS VEGG I E FAIR 'Papa M, DEVELOPMENT STRATEGISTS ■ Annual event in Reverchon Park, Dallas celebrating plant -based lifestyle. ■ Includes foods, farmers market, beer gardens, live entertainment. ■ Approximately 5,000 attendees a year. 79 Item 6B - MXD Economic Cluster Analysis _ Culinary Cluster Analysis GRAPEFEST —GRAPEVINE WINE FESTIVAL PiVl� 'L)LVLL®PMENT STRATEGISTS ■ 4 day festival in neighboring Grapevine that is billed as the largest wine festival in the southwest, has been operating for 28 years. ■ Sample of not only wines from Texas, but other regions such as Washington and Italy. ■ Marketed as a family friendly event with attractions for all ages. ■ 6t" most popular event in the Metroplex with over 250,000+ visitors annually. Item 6B - MXD Economic Cluster Analysis so _ Culinary Cluster Analysis CRAFT BREWERIES PiVl� 'DEdEL®PMENT STRATEGISTS ■ Craft brewing has exploded in popularity in recent years, much like wine did during the 80's and 90's. ■ 15% annual growth in American craft brewing between 2010 to 2013. ■ An American craft brewer is small, independent and traditional. ■ To be classified as a craft brewery, annual production must be 6 million barrels of beer or less and less than 25% of the brewery must be owned or controlled by an alcoholic beverage industry member. 81 Item 613 - MXD Economic Cluster Analysis _ Culinary Cluster Analysis TEXAS CRAFT BREWERIES ■ Texas has many craft breweries and produces a considerable amount of beer relative to other States, however the amount of breweries per capita is one of the lowest in the U.S. displaying opportunities for the future. Item 613 - MXD Economic Cluster Analysis Breweries Per Capita per 100,000 21+ adults- 2013 (Ranks 42nd in US) 'Ed M, - , 0� DEVELOPMENT STRATEGISTS Economic Impact - 2012 (Ranks 2nd in US) Barrels of Craft Beer Produced Per Year — 2013 (Ranks Th in US) Source: Brewers Association _ Culinary Cluster Analysis CRAFT BREWERIES 'Papai ,-0O ' DEVELOPMENT STRATEGISTS ■ Largest cluster of craft breweries are in Dallas with an emerging cluster in Fort Worth. Garland also has an expanding craft brewing scene. ■ A large portion of craft breweries have opened in the last several years as they have increased in popularity. ■ The majority of breweries planned to open in 2014 and 2015 are still centered in Dallas. ■ Grapevine Craft Brewery which is currently located in Farmers Branch is building a new location in downtown Grapevine which would be the closest brewery to Southlake, along with Shannon Brewery in Keller. ■ While Texas ranks among the leaders when assessing economic impact, there remains significant room for growth in the Texas industry, especially with 2013 legislative tax and licensing reforms. Item 613 - MXD Economic Cluster Analysis _ Culinary Cluster Analysis CULINARY SCHOOLS PiVl� 'L)LVLL®PMENT STRATEGISTS ■ Culinary education is also a vital piece to a regions culinary scene, training the chef's of tomorrow a foundational knowledge. ■ Culinary schools continue to see rising enrollments, 20% average annual rise in 2011 and 2012 within the U.S. ■ Le Cordon Bleu saw a 46% rise in enrollment between 2008 to 2011. 84 Item 6B - MXD Economic Cluster Analysis _ Culinary Cluster Analysis ri MAJOR CULINARY SCHOOLS IN THE DFW METROPLEX LE55Ta4@LE I �� I*y- . s4 LlE 1 _-- PlAl10- - KEY :.. E4RRS.�LLTU 1 „R 0 DART Rail & Stations fwbm ` A0DBCX4 Tollways ` GRPFENHc t) =T= FOORAIMSM � g .. o- . . Trinity Railway Express (TRE) [ andStation- toIrv'ng, JOUTHLAM µ �' DEW Airport and Fort Worth rrLLER DISTANCE '�( �';°ti � 4.av T �- IXNhRTftA«` _ --•. ��i Dallas to FortWorth:32 miles IQORi}I 1Ni A1PQ1 r GREEN41LLe AVE N�5 ... f n oo<ua+�.. Rlul.B y RSwR]. .rE. rLL. ! •HUUAa M1�64a C041.ET'IIdE .�-.� WATAUGA. "� .ems.. II�� �:xa•,.. r>useana � VLLAIGE X-IdENGfRS©N Wim MING .`do,L+. 1rtwlFYT wTnw ree.iwun amr I �r Its• w,uTr wr�.� HA310N mrV -••,••---- .-. '-. ,••�j••••. � main u pp LLu DALLAS o1sTE - OESIGN 'RT Fti P. �_MEMPErE �" yy� wym iHrr� PARI: Friatl.l ,w,iGran -- . .aS,�— ..� E6E. W 65HOe ARF .ui 7.0 f.k OtEIRCTT SRE6b Uts.: .. FORT'Id' ORT I � - - O Le Cordon Bleu r;RuaoFRA,lne - 111d;1.1- Art Institute Dallas neo =ORES HILL _ -iy4i- — — - - -- /•�•" ,_ = --. _ _-••��-- EI Centro College r I� r :-•; "1 - OGYtAHVRLF arw�T DESETIa Culinary School of Fort Worth Nl6NS 16➢ CEDAR HLL L:5) LANCASTER Young Chefs Academy F 'Papa M, DEVELOPMENT STRATLGISTS Item 6B - MXD Economic Cluster Analysis _ Culinary Cluster Analysis CULINARY SCHOOLS 'Ed M, - , 0� DEVELOPMENT STRATEGISTS ■ Culinary schools are primarily located in Dallas and Fort Worth, with a void in the Mid -Cities. ■ Highly -regarded Culinary Institute of America (CIA) has a San Antonio location, but has not yet entered the North Texas market. ■ 30,000 sq. ft. facility in San Antonio opened in 2010. ■ CIA came to San Antonio due to monetary gift to the college from philanthropist Kit Goldsbury which enabled the campus. ■ Non-profit culinary schools such as the CIA require large donations to ensure their viability. 86 Item 6B - MXD Economic Cluster Analysis Culinary Cluster Analysis 2013 CITIZEN SURVEY �iVI�V DEVELOPMENT STRATEGISTS ■ The City of Southlake 2013 Citizen Survey found that many respondents had a desire for more independent, unique and high quality restaurants that served local food. sport/fitness high-end restaurants unique/upscale business concert area non -chain restaurants use existing space at Town Square first Nordstrom Macy's Whole Foods retail rea non -chain stores upscaleaffordable retail/dining tax -generating businesses Dillard's small businesses happywi h what have commercial/corporate/office complexes boutiques sporting goods/ attire store department stores unique restaurants malls/outlets Trader Joe's more local arts center/theater affordable foci,, quality restaurants r�ura� Item 6B - MXD Economic Cluster Analysis Large conference, riieeting 87 _ Culinary Cluster Analysis SUPPORTABLE DEMAND FOR CULINARY ENDEVOURS 0'apfi M'. 0 �0 STRATEGISTS ■ MXD conducted a Retail Demand Analysis in June 2014 that projected the amount of supportable square footage within Full Service and Limited Service Restaurants for the Primary Trade Area which includes communities such as Trophy Club, Westlake, Roanoke, etc. This demand is displayed on the following page, displaying that Southlake could be able to obtain 40% of future demand between 2015 and 2025, totalling approximately 85,000 square feet. Northwest Regional Airport Double Oaky q Lewis% 1171 ❑ E N T O Ili � Iowa dal ir�gl�,d Marshal With to Trail nun Creek ~ } 114 121 ! .3040 _ Roanoke rapeuine m Trophy F Cadre 249 ........ 170 :p n r PTA ❑° � � 121, EXCLUDING "'PO Rd 26' e :37.$OUTHLAK SOUTHLAKE � Grapevine _ 17og Keller �I on :;.. Branch 114 A R R ., —.—t' 114 Spar � g nt , f Hall Johnson Rd `ta. 'S'! I BrafYsford. Mlrlters IIVI r 13 Ileyulll9 C6 Chapel it Watauga 1938 [302gpF►N Airport J { Basswood Blvd ❑$ p Smithfield 360 h� m m d_ Cities , } z Dallas -Fort W North rid D I Nor#h wood Rd Worth International � 121 Hirpart I 88 Item 613 - MXD Economic Cluster Analysis Culinary Cluster Analysis SUPPORTABLE DEMAND FOR CULINARY ENDEVOURS Item 613 - MXD Economic Cluster Analysis pportak are Foo to 2025 slake Po ?t Share (40%) )15to2 )emand do )nomic de through culinary tourism 'Papa M, DEVELOPMENT STRATEGISTS 89 _ Culinary Cluster Analysis CULINARY CLUSTER SWOT ANALYSIS . STRENGTHm The DFW Metroplex and North Texas have a strong culinary identity with BBQ and Tex-Mex. ■ Texas is a top destination for food related travel. ■ Diverse food offerings beyond regional staples. ■ Large-scale food and drink related events have begun to emerge over the past several years. Economic impact of craft breweries on Texas is second in the U.S. and the craft brewing market in DFW is growing at a fast pace. "Foodie" lifestyle continues to grow and become more prominent. OPPORTUNITIES Continued demand for new restaurants due to rapidly growing population in Metroplex, especially to the west of Southlake. Room for further growth for craft breweries due to low breweries per capita. ■ Culinary school that has its own market niche to differentiate itself from the current offering. An annual event based around a certain food or drink that distinguishes itself from current events in the Metroplex. Item 6B - MXD Economic Cluster Analysis 0,g M'. 0 �0 STRATEGISTS WEAKNESSES Little promotion conducted on a regional and national scale compared to other "foodie" cities. Cluster is tied to disposable income and susceptible to economic downturn. Competition with other culinary tourist region who are more established. Many items within the realm of culinary tourism are niches and would need to be marketed properly. L01HREATS Market saturation due to breweries opening in adjoining cities in 2014 and 2015. Market shifts and a reduction in enrollment for culinary education. Surrounding community such as Westlake or Colleyville opening an independent restaurant cluster prior to Southlake. Destination Independent Restaurant Cluster "fir:. ih" .�1•� `` ��� Ik _ M For-profit or non-profit culinary school Culinary tourism marketing and strategy towards local events Toff . `�Y�b1 ` _ Culinary Cluster Analysis 0 RECOMMENDATIONS & IMPLEMENTATION STRATEGY DIRECTION • Create a restaurant cluster that has a mixture of casual, mid-range and upscale independent restaurants. • Minimum of 6-8 restaurants to create a critical mass. • Can have phased expansion overtime once popularity grows. • Focus on local and regional food (farm -to -table) with a variety of cuisines to differentiate from typical restaurants. • Provide young innovative entrepreneurs and up -coming Texas chefs opportunities to hone their craft. • Could also allow prominent Texas chefs the ability to attempt new concepts. • Secondary component could be an upscale craft brewery and brewpub that could act as a Item 6B - MA(E5X�GAX(9ptpi @, jtAjpwn. O'g M'. 0 �0 STRATEGISTS APPROACH • Form a P3 partnership with a developer to construct the restaurant cluster, or work with a private landowner to connect with private equity investors. • Lease and allow restaurant owners to fit -out interiors. • Ensure a criteria is in place for the type of restaurants (no chains, types of food, etc.) _ Culinary Cluster Analysis RECOMMENDATIONS & IMPLEMENTATION STRATEGY DESTINATION INDEPENDENT RF&TAURANT CLUSTER TYPICAL BUILDING FORMAT • Single -story cluster of restaurants with central public piazza. Restaurant patios can spill onto piazza during proper weather. • 20,000 to 40,000 square foot cluster plus patios. COMPLIMENTARY USES • Craft brewery • Retail/Shopping • Offices • Performance Arts • Cultural Venues • Sports Venues • Residential PHASING TIMELINE Item 613 - MXD Economic Cluster Analysis �PM'. 0 �0 DLVLL®PMLNT STRATEGISTS _. A _ Culinary Cluster Analysis 0 RECOMMENDATIONS & IMPLEMENTATION STRATEGY DIRECTION • Culinary school that offers degree programs in culinary arts and pastry arts. • Programs for industry professionals / continuing education could also be on offer. • Other programs can include wine or beer sommeliers. • Should incorporate conference/event space that would host seminars, events and conferences for the culinary industry. 01 Item 6B - MXD Econ 16_ it, 'Papa M, DEVELOPMENT STRATEGISTS APPROACH • Provide incentives such as tax breaks for established for-profit culinary schools who are looking to re -locate or create a new school. • For non-profit, form a P3 partnership with the school, or obtain a philanthropic grant that would be put towards establishing the school. _ Culinary Cluster Analysis RECOMMENDATIONS & IMPLEMENTATION STRATEGY TFOR-PROFIT OR NON-PROFIT CULT Y SCHOOL TYPICAL BUILDING FORMAT • Single story or multi -story build -to -suit building. • Renovate an existing office building or light industrial building to reduce costs. COMPLIMENTARY USES • Restaurants • Craft brewery • Retail/Shopping • Offices • Performance Arts • Cultural Venues PHASING TIMELINE id -Term & Long -Term Action 'Papa iVl�� DEVELOPMENT STRATEGISTS 95 Item 613 - MXD Economic Cluster Analysis Culinary Cluster Analysis RECOMMENDATIONS & IMPLEMENTATION STRATEGY ill phu y i *1emegrovVii. REAL LOCAL FLAVOR C Y //aTI(rilstOVA SCOTIA Ia:EV-3101rcimItLTA I4ILIi4 0 Item 613 - MXD Economic Cluster Analysis 'Ed M, DEVELOPMENT STRATEGISTS PHASE 1 Consensus Building • Develop Vision • Buy -in from local businesses, local government, media, and residents. PHASE 2 Asset Inventory Analysis • Understand the city's culinary inventory and the relationships between them to fully utilize their potential. • Determine whether the market is ready. • Assess which food and drink sectors need to be improved. PHASF — nPstin,3tion S,tratppe • Create a strategy using information from Phase 1 and 2. • Develop a marketable brand that would be employed locally, regionally and nationally. • Choose media sources to utilize. • Prioritize funding sources and organizational structure. _ Culinary Cluster Analysis RECOMMENDATIONS & IMPLEMENTATION STRATEGY local caledon --I,.; ,r,. �iVl� ' �L)LVLLOPMENT STRATEGISTS PHASE 4 — Action Plan • Develop a final multi-year Action Plan (5 or 10 year) with implementable action items and scenarios. • Ensure plan is flexible and adaptable! • Establish measurable indicators. PHASE S Irnalernentatior • Identify which action items require immediate, medium, or long term implementation. • Implement the Action Plan items through a phased approach. PHASE 6 — Monitoring • Using the established indicators, monitor the success of the culinary tourism action plan and strategy. • Work with local culinary businesses to ensure monitoring is consistent across the board. • Revise actions as needed. Item 6B - MXD Economic Cluster Analysis Source: World Food Travel Association and Ontario Ministry of Tourism, Culture and Sport mm,.-O� DEVELOPMENT STRATEGISTS 98 Item 6B - MXD Economic Cluster Analysis Performing Arts Cluster Analysis �iVI�V �DEVEL©PMENT STRATEGISTS PERFORMING ARTS ENTERTAINMENT "The DFW art scene is very much alive and thriving" CBS Dallas/Fort Worth "A thriving theater scene is not new to the city. After all, Dallas was one of the pioneers of the regional theater movement" Artsa ndCu ltu reTX.com "The Dallas theater scene is at an all-time peak" DallasNews.com 99 Item 613 - MXD Economic Cluster Analysis Performing Arts Cluster Analysis �iVI�V DEVELOPMENT STRATEGISTS PERFORMING ARTS ENTERTAINMENT An average of $1 BILLION in annual economic impact to the North Texas economy from Direct & Indirect spending in the Arts & Cultural Sector. 2010 Economic Impact Study of Arts and Cultural Organizations in North Texas Prepared by Deloitte for the Business Council for the Arts 100 Item 6B - MXD Economic Cluster Analysis Performing Arts Cluster Analysis �iVI�V DEVELOPMENT STRATEGISTS PERFORMING ARTS ENTERTAINMENT "The total aggregated Economic Impact of the arts in North Texas over the twenty year period from 1990 to 2009 is approximately $15 billion [as adjusted for inflation]. " 2010 Economic Impact Study of Arts and Cultural Organizations in North Texas Prepared by Deloitte for the Business Council for the Arts 101 Item 6B - MXD Economic Cluster Analysis _ Performing Arts Cluster Analysis PERFORMING ARTS ENTERTAINMENT �iVl� ' DEVELOPMENT STRATEGISTS ■ Economic Impact of Performing Arts Entertainment comes from three distinct types of spending: ■ Construction Spending (Creation and renovation of facilities) ■ Direct/Indirect Spending (Ticket sales, organizational budget) ■ Indirect Audience Spending (Food and beverage spending, retail spending, transportation) Source: 2010 Economic Impact Study of Arts and Cultural Organizations in North Texas Prepared by Deloitte for the Business Council for the Arts Item 613 - MXD Economic Cluster Analysis _ Performing Arts Cluster Analysis PERFORMING ARTS ENTERTAINMENT 'Ed M, DEVELOPMENT STRATEGISTS Distribution of the Economic Impact of Arts and Cultural Spending Direct/Indirect Spending s 40% Construc 20% Item 6B - MXD Economic Cluster Analysis Audience Induced Spending 40% Source: 2010 Economic Impact Study of Arts and Cultural Organizations in North Texas Prepared by Deloitte for the Business Council for the Arts 103 Performing Arts Cluster Analysis PERFORMING ARTS ENTERTAINMENT ■ Construction Spending Multiplier: 'Papa iVl�� DEVELOPMENT STRATEGISTS $1 Million = 11.4 Full -Time Equivalent (FTE) jobs in the local North Texas economy ■ Direct/Indirect Spending Multiplier: $1 Million = 48.3 Full -Time Equivalent (FTE) jobs in the local North Texas economy ■ Induced Audience Spending Multiplier: $1 Million = L4.� Full -Time Equivalent (FTE) jobs in the local North Texas economy Source: The IMPLAN Group 104 Item 6B - MXD Economic Cluster Analysis _ Performing Arts Cluster Analysis PERFORMING ARTS ENTERTAINMENT PiVl� 'DEdELOPMENT STRATEGISTS ■ 5,000+ full-time & contract jobs in Arts & Cultural Sector of North Texas; Theater represents the plurality with 1,750+ jobs. ■ 2,200 Board members & Trustees steer Arts & Culture Organisations. ■ 310,000+ annual volunteer hours donated by members of the community. Sources: 2010 Economic Impact Study of Arts and Cultural Organizations in North Texas Prepared by Deloitte for the Business Council for the Arts The IMPLAN Group Item 613 - MXD Economic Cluster Analysis LIVE CONCERTS d THEATER ' FAMILY & YOUTH THEATER E %J � a BALLET & DANCE 1 SYMPHONY & CLASSICAL MUSIC COMMUNITY EVENTS , Performing Arts Cluster Analysis 'Papp M'. 0 �0 DEVFLOPMENT STRATEGISTS RATIONALE FOR A MID-SIZED, MULTI -USE PERFORMING ARTS VENUE ■ Performing Arts Organizations can be grouped into three broad categories that correspond to their age, mandate, and resources: ■ Large (500+ seats) ■ Flagship organizations that define their form of performing art in the DFW Metroplex. ■ Long-lasting, storied history with generations of talent, management, and audiences. ■ Permanent venue residency in marquee, architecturally significant buildings in downtown arts districts. ■ Large season subscriber base with aspirational/conspicuous consumption value attached to regular performance attendance. ■ Significant and diverse revenue streams from high ticket prices, venue concession sales, major corporate sponsorship, private philanthropy, annual fundraising campaigns, and legacy giving through wills and private foundations. Item 6B - MXD Economic Cluster Analysis M�� Performing Arts Cluster Analysis IOP STRATEGISTS RATIONALE FOR A MID-SIZED, MULTI -USE PERFORMING ARTS VENUE ■ Performing Arts Organizations can be grouped into three broad categories that correspond to their age, mandate, and resources: ■ Medium (200 to 500 seats) ■ Established organizations with a track record of success and resiliency. ■ Draws upon a regional audience and has built season subscriber base. ■ Greater financial stability with access to grants and some private and corporate philanthropy. ■ Likely to "out -grow" smaller venues and need stable long-term residency in a mid-sized venue. ■ Mid -priced tickets that are accessible in price to wide spectrum of the population. MEDIUM-SIZED PERFORMING ARTS ORGAiVILAI TUNS NEED MID-SIZED VENUES. THEY HAVE OUTGROWN SMALL VENUES AND DON'T NEED & CANNOT AFFORD LARGE VENUES. 108 Item 6B - MXD Economic Cluster Analysis , Performing Arts Cluster Analysis 'Papp M'. 0 �0 DEVFLOPMENT STRATEGISTS RATIONALE FOR A MID-SIZED, MULTI -USE PERFORMING ARTS VENUE ■ Performing Arts Organizations can be grouped into three broad categories that correspond to their age, mandate, and resources: ■ Small (less than 200 seats) ■ Start-up / emerging stage of life. ■ Draws upon a primarily local audience. ■ Focused artistic direction, frequently experimental & avant garde. ■ Tenuous financial state and unlikely to have permanent venue. ■ Low-priced tickets. 109 Item 6B - MXD Economic Cluster Analysis Performing Arts Cluster Analysis LARGE PERFORMING ARTS VENUES IN THE DFW METROPLEX OCasa Mariana Theatre rc°LV © Bass Performance HallY cu;Mm 'Ed iVl�� DEVELOPMENT STRATEGISTS H-%.i.DI C��.�. -.-. --.. ,.j....• eta was - :a DALLAS ASMOMN n MiT Ls flan PvIL15trIn STA ° - i � O rn 1.'u wrm E6l_Lb SGH DM,:T • FORT WORTH - 1 !; r;auaDFRAine ,_NERaok. _ - , XN 9AlIYtANVRLF NAMSFLBD CEDAR HEL LANC4SEW Item 613 - MXD Economic Cluster Analysis fiRU 41LLE -- feldCsA:m u°° .... .L-1 - ENI]IIt5L7FJ its a Annette Strauss Square & Amphitheater Morton H Myerson Symphony Center Majestic Theater Music Hall At Fair Park Samuell-Grand Amphitheater Allen Event Center 110 kq� © Addison Circle Park Amphitheater E4NS.iLLTU Cc" -L, t ADMON O Charles W Eisemann Center (2 theaters) Gr a © Kalita Humphreys Theater .L. s �HIAKE -, SOUTHLAKE j a7 • Margot &Bill Winspear Opera House IIJa° F� MI Abp:l Ca-r.7'AL:_E. O Dee &Charles Wyly Theater tl aW f e eE3:nr1s< 1fPAM �XL9 YL Dallas City Performance Hall�� oai RANG pyo �,�dw-C�. H-%.i.DI C��.�. -.-. --.. ,.j....• eta was - :a DALLAS ASMOMN n MiT Ls flan PvIL15trIn STA ° - i � O rn 1.'u wrm E6l_Lb SGH DM,:T • FORT WORTH - 1 !; r;auaDFRAine ,_NERaok. _ - , XN 9AlIYtANVRLF NAMSFLBD CEDAR HEL LANC4SEW Item 613 - MXD Economic Cluster Analysis fiRU 41LLE -- feldCsA:m u°° .... .L-1 - ENI]IIt5L7FJ its a Annette Strauss Square & Amphitheater Morton H Myerson Symphony Center Majestic Theater Music Hall At Fair Park Samuell-Grand Amphitheater Allen Event Center 110 _ Performing Arts Cluster Analysis 'Ed M, . , 0� DEVELOPMENT STRATEGISTS MEDIUM & SMALL PERFORMING ARTS VENUES IN THE DFW METROPLEX 0 Circle Theater LiW23ALi -.5 © Jubilee Theater #.Y cu; _ -- - k4� �E 1 PIAMO CaH LTm Four Day Weekend Theater • `f OStage West 6 KE 1HlAUYKE ,�• '4 � mace © Amphibian Stage Productions SOUTH L KEYµpOCENn Idyl �-'• 'ra,c �M __— 4�+itItlNM .1?II�# GaYhJA4 O Fort Worth Arts Center (2 theatres) AVE ^ O {{.11-1'AL.F. ': i Ease. wi kxw Palace Arts Center (2 theaters) --,� I �'"" © KLAW rr • Theater Arlington .�. ............ _ i4ffT �y� Addison Conference and Theater Center 0 °–°– _ud f1#+T/• Y� Itrllfv9a.� DALLAS T- e..a 0- QE'1GR Q6TFYR 5RTH ie =_JIB KQIff5K Hl1 RIANaa1H1T 65HQPAM QISTPICy �a QaulQFR.n,ine Kitchen Dog Theater -The MAC (2 theaters) Theater 3 Dallas Contemporary Theater of Dallas Pocket Sandwich Theater Bath House Cultural Center Under Main Theater 111 Item 613 - MXD Economic Cluster Analysis a.® GwEes 9AlIYGLYAIERLF ._ MOTO CEQAR HKL ANCASEW Kitchen Dog Theater -The MAC (2 theaters) Theater 3 Dallas Contemporary Theater of Dallas Pocket Sandwich Theater Bath House Cultural Center Under Main Theater 111 Item 613 - MXD Economic Cluster Analysis Performing Arts Cluster Analysis KEY LARGE PERFORMING ARTS VENUES Margot & Bill Winspear Opera House • Dallas Arts District. • 2,200 seats. 'Papa M, DEVELOPMENT STRATEGISTS Dee & Charles Wyly Theater • Dallas Arts District. • 600+ seats (highly reconfigurable layout). Built 2009. _ • Built 2009. 47- - • Home to: Dallas Theater • Home to: Dallas Opera &.. Texas Ballet. ,���'� �y Center. Item 613 - MXD Economic Cluster Analysis Morton H Myerson Symphony Center • Dallas Arts District. • 2,062 seats. • Built 1989. • Home to: Dallas Symphony Orchestra, Dallas Symphony Chorus. Dallas City Performance Hall • Dallas Arts District. • 750 seats. • Built 2012. • Purpose-built to nurture emerging performing arts organisations. Performing Arts Cluster Analysis KEY LARGE PERFORMING ARTS VENUES Item 613 - MXD Economic Cluster Analysis Bass Performance Hall • Fort Worth Arts District. • 2,056 seats. • Built 1998. • Home to: Fort Worth Symphony, Texas Ballet Theater. Charles W Eisemann Center • City of Richardson owned. • 1,563 seats & 400 seats • Built 2002. • Located in suburban business park area on Dallas Dart LRT line. 'Papa M, DEVELOPMENT STRATEGISTS Annette Strauss Amphitheater • Dallas Arts District • 2,500+ seats. • Attached to the Margot & Bill Winspear Opera House in the AT&T Performing Arts Center. Addison Circle Park Amphitheater • City of Addison owned. • 1,000 seats for outdoor theater performances. • Hosts: Dallas Shakespeare in the Park. Performing Arts Cluster Analysis KEY HISTORIC LARGE PERFORMING ARTS VENUES �n Majestic Theater • Dallas Office of Cultural Affairs owned. 1,704 seats. Built 1921. Kalita Humphreys Theater 7mi�` Dallas Theater Cent IMP owned. A- --- - • III 497 seats. Item 613 - MXD Economic Cluster Analysis • Built 1959. er • 1 of 3 surviving Frank Lloyd Wright theatres. �� �iVl DEVELOPMENT STRATEGISTS Sun Music Hall at Fair Pa rk • Operated by Dallas Summer Musicals S • 3,420 seats. r . • Built 1925. m • Home to: Dallas Su 7. Musicals. Casa Manana Theater z X. Fort Worth Arts District. 2,805 seats. Built 1936. • Theater -in -the -round. • Hosts touring Broadway shows. 114 Performing Arts Cluster Analysis KEY MEDIUM & SMALL PERFORMING ARTS VENUES Item 613 - MXD Economic Cluster Analysis The Palace & Lancaster Theaters • Grapevine Main Street. • 432 seats & <200 seats. • Owned and jointly operated by Grapevine Heritage Foundation. • Fully renovated venues Theater Arlington n� City of Arlington. • 199 seats. *'1 • In operation since 1973. • Operates theater classes to youth and adults; full- Olt-, - , �• time education director. • Arts outreach program & internships for schools. 'EdM,�0 DEVELOPMENT STRATEGISTS Addison Conference & Theater Center • City of Addison owned. • 200 seat theater & 600 person conference ctr. • Across the street from Addison Circle Park Amphitheater. Bath House Cultural Center • Dallas Office of Cultural Affairs owned facility. • 118 seats (Black box). • 1St of 6 neighborhood community arts centers. • Includes a museum. Performing Arts Cluster Analysis KEY MEDIUM & SMALL PERFORMING ARTS VENUES Item 613 - MXD Economic Cluster Analysis Fort Worth Arts Center • Fort Worth Arts District. • 500 seats & 120 seats (Black box). • Arts Fort Worth Council. • Gallery, community rooms, arts offices. Circle Theater • Fort Worth Arts District. • 125 seats. • Presents rarely -staged contemporary plays. • Close collaboration with school and colleges. • Mandate to nurture actors and playwrights. 'Ed M, DEVELOPMENT STRATEGISTS Contemporary Theater of Dallas • 127 seats. • Professional theater company focused on sharing stories of the human experience. Theater 3 Dallas • 116 seats. • Founded in 1961. • Mandate to nurture stage work that brings young actors and old together in works that express the human condition. 116 Performing Arts Cluster Analysis KEY MEDIUM & SMALL PERFORMING ARTS VENUES Item 613 - MXD Economic Cluster Analysis Stage West Theater • Fort Worth Arts District. • 170 seats. • Professional theater company established in 19791 formerly in a 65 seat store -front venue. • Cafe and Gallery on site. Four Day Weekend Theater Company • Fort Worth Arts District. • 212 seats. • 2013 Small Business of the Year, Fort Worth. • "Fort Worth's Greatest Ambassador" Key to the City" Winner, 2011. 'Ed M, DEVELOPMENT STRATEGISTS Jubilee Theater • Fort Worth Arts District. • 200 seats. • Renovated Main Street commercial Building. Mandate to perform theater exploring African-American culture and history. Performing Arts Cluster Analysis UNCONVENTIONAL SMALL PERFORMING ARTS VENUES Under Main Theater • 90 seats, basement -level theater. • Founded in 1984 as an experimental theater. • The Dallas Morning News: "...our most daring and accomplished theatrical troupe..." Pocket Sandwich �- Theater Item 613 - MXD Economic Cluster Analysis • 130 seats, basement - level theater in a retail - commercial building. • Founded 19801 3rd oldest theater in Dallas. • "The most fun you can have in a Dallas theater." 'iVl�� DEVELOPMENT STRATEGISTS Amphibian Stage Productions • Fort Worth Arts District. • 120 seats. (Black box) • Renovated Main Street commercial building. • "Arts incubator" space to support playwriting. Kitchen Dog Theater — The MAC • 80 seats & 120 seats. (Black Box) • Converted industrial building in a walkable area of Dallas. • Facility hosts galleries, workshop, and cafe. 118 Performing Arts Cluster Analysis WHAT WE DISCOVERED: >- 4000 F- U 3500 3420 Q a Q 3000 U Z2500 Q 2000 w kA 1500 w :) 1000 Z w > 500 0 �iVI�V �DEVEL©PMENT STRATEGISTS DFW METROPLEX PERFORMING ARTS VENUES BY 2500 jq 2200 2062 2056 44 1517041563 44 4 iq 41 41 1000 41 41 41 44 44 91 if if 06 c v v v v QO = ro (moo C (moo O v v v t aa) s U v t a L E C F- F- } �E N va co co C U- cc:: O Q C 'co: aJ L CC cc Y a m CC G N aJ co _ � m U N Qj U C C Q O O to U M U O cO c N G Q SEATING CAPACITY LIMITED NUMBER OF MID-SIZED VENUES FOR MID-SIZED PERFORMING ARTS ORGANIZATIONS PoLn 74 600 500 497 432 400 ,114 44 iq 4114 ..1 212 200 200 200 200 199 170 130 127 125 120 120 118 116 90 _ L }I L �[ L L L L �-.� L N L U N L M L 4O O +O� a) C +O+ O � 40 O a) � O Q a) 4N L aO� _ (o v (0 �' (o (o (o+to f6 t10 Ca t'� 'O C 4J (o N a) In a) M m a) (u U a) C a) C a) Q) U t LU t a) L U L —_ a) i _U W a) Ln C a- 0) =3(o C U M aJ U U a) M v a L U O " M N U v I- U 'O U a� 4- 1 i O U Q � N — p �Q v0 p Q 2 Ln co= U W _ L a) U d Q C t Q) 4-1 YaN+ D Q U + +-1 C E M O L Q) 0 y LL E O a) v CO r� 0 Q O Q 0 M -C Q U O LL co U U_ a 80 -■ 119 Item 613 - MXD Economic Cluster Analysis _ Performing Arts Cluster Analysis WHAT WE DISCOVERED ABOUT PERFORMING ARTS: ■ Dallas -Fort Worth Metroplex has a thriving Performing Arts sector. ■ Healthy number of established Performing Arts organizations in a variety of disciplines: ■ Theater. ■ Dance. ■ Opera. ■ Symphony. ■ Great variety of Performing Arts venues: ■ New & Old. ■ Large & Small. ■ Downtown & Suburban. ■ World-class venue architecture. Item 613 - MXD Economic Cluster Analysis �PM'. 0 �0 L)LVLL®PMENT STRATEGISTS 120 _ Performing Arts Cluster Analysis WHAT WE DISCOVERED ABOUT PERFORMING ARTS: ■ Large venues have 500+ seats or more, with most above 1,500 seats. ■ Medium & Small venues have 500 seats or less, with most below 200 seats, and many are flexible `black box' venues without a permanent stage. ■ Large venues are primarily located in the downtown arts districts of Dallas and Fort Worth. ■ Medium & Small downtown and municipalities. venues are both in suburban ■ Variety of buildings repurposed to Item 613-f LhEPeT, rmi Arts venues. PiVl� 'L)LVLL®PMENT STRATEGISTS Performing Arts Cluster Analysis WHAT WE DISCOVERED ABOUT VISUAL ARTS: ■ Dallas -Fort Worth Metroplex has a flourishing Visual Arts sector. ■ Festivals and special community events like Southlake Art in the Square encourage people experience the arts and culture of their own community. ■ Established downtown Arts Districts blend the Performing Art with the Visual Arts, including Art Galleries and Museums, in a safe and exciting setting. ■ Clustering Performing Arts and Visual Arts with Dining and Retail creates a cultural destination that appeals to a broad spectrum of interests. Item 613 - MXD Economic Cluster Analysis 'Papa M, DEVELOPMENT STRATEGISTS _ Performing Arts Cluster Analysis PERFORMING ARTS CLUSTER SWOT ANALYSIS STRENGTH The DFW Metroplex and North Texas have a thriving performing arts entertainment sector. Significant variety of venues. Numerous established performing arts organizations. Sustained support from Private and Corporate Philanthropy. Extensive school outreach programming. Experimental and talent incubator theater companies help renew and energize creativity and artistic expression. Significant economic impact associated with the sector. Performing arts attendance triggers indirect spending. PPORTU NITI Mid-sized venues are limited in number and dispersed across the DFW Metroplex. The performing arts sector requires a variety of venue sizes and capabilities and simultaneous availability. Emerging performing arts organizations need long-term residency at a venue to build up an audience, but they cannot afford exclusive use of a venue; it must be shared. Performing arts entertainment is a form of conspicuous consumption associated with high household incomes. Item 6B - MXD Economic Cluster Analysis �iVl� ' �DEVEL®PMENT STRATEGISTS �E= WEAKNESSES Performing arts entertainment relies up on household disposable income and vulnerable to economic change. Significant competition for discretionary household spending and time. Elitist reputation of the sector can turn people off. Ticket price and programming schedule lead to low frequencies of attendance. LjHREATS Electronic entertainment (streaming TV & movies, video games, internet & social media) will capture a growing proportion of the attention, time, and discretionary spending of potential performing arts audiences. Aging audience base of performing arts organizations leads to a narrowing of programming, alienating younger audiences. Young people — the future audience base of performing arts organizations — may not be attracted or retained in sufficient numbers to replace and grow the live performing arts. Performing Arts Cluster Analysis M�� �DEVEL©PMENT STRATEGISTS LOCAL DFW SMALL/MID-SIZED, MULTI -USE PERFORMING ARTS VENUE CASE STUDY s KEY LESSONS FOR SOUTHLAKE • 200 seat venue is appropriate for the audience base of a smaller regional theater company. • Highly reconfigurable venue interior and handsome architecture by Theatre Project Consultants differentiate it from other small performing arts venues in the DFW Metroplex. • Conference Center generates revenue for the City and broadens the potential types of venue rental. Item 6B - MXD Economic Cluster Analysis Addison Conference & Theater Center Addison, Texas • 200 seat performing arts venue and 600 -person conference center. • Built in 1992 and operated by the City of Addison Conference & Theater Department. • Water Tower Theater is the resident performing arts organization. • Adjacent to Addison Circle Park. Performing Arts Cluster Analysis M�� �DEVEL©PMENT STRATEGISTS LOCAL DFW SMALL/MID-SIZED, MULTI -USE PERFORMING ARTS VENUE CASE STUDY KEY LESSONS FOR SOUTHLAKE • Versatility of the two venues allow prospective tenants to "right -size" the venue rental to meet their needs. • Historic Downtown location with Main Street businesses and ambiance enhances venue appeal. • Preservation and well -executed restoration give the two venues a distinct and memorable sense of place and differentiate them from competitors. Item 6B - MXD Economic Cluster Analysis Palace Arts Center Grapevine, Texas • 432 seat Palace Theater and the 200 seat Lancaster Theater. • Run by the Grapevine Heritage Foundation. • Historic downtown Main Street location. • Energetic venue rental program hosts performing arts, film, conferences and weddings in 15k ft 2. Performing Arts Cluster Analysis M�� �DEVEL©PMENT STRATEGISTS INTERNATIONAL MID-SIZED, MULTI -USE PERFORMING ARTS VENUE CASE STUDY KEY LESSONS FOR SOUTHLAKE • 450 seats is in the 'sweet spot' of operating revenue vs costs, allowing full -year programming. • Restaurant/Bar generates crucial non -theatrical revenue to defray theater costs and reduce risk. • Tremendous synergy with other Granville Island merchants and restaurants: audiences frequently plan a full "day out" that includes shopping and dining prior to attending a performing arts show. Item 6B - MXD Economic Cluster Analysis Granville Island Stage Arts Club Theater Company Vancouver, Canada • 450 seat live theater venue. • Includes a Restaurant/Bar with nightly live music & events. • Office space & rehearsal hall for the Arts Club Theater Company. • Adjacent to major culinary cluster with restaurants, farmers' market, artisans, and a large public square. 126 Performing Arts Cluster Analysis MULTI -USE EVENTS CENTER CASE STUDIES, TEXAS 'Ed M, DEVELOPMENT STRATEGISTS Allen Event Center & Community Ice Rink Allen, Texas • 6,275 fixed -seat (8,600 capacity) multi -use indoor stadium. • Dedicated Community Ice Rink. R • Opened in 2009. Key Project Facts: • 100% public investment of $52.6 Million (2008). • City owned and operated venue. • 7.3 acre suburban site located within the 125 acre "The Villages at Allen" mixed-use retail development and beside a major hwy interchange. • A Courtyard Dallas/Allen hotel is next door. • Garage & lot parking shared with The Villages. Item 6B - MXD Economic Cluster Analysis • Home to professional sports teams: • Allen Americans (ice hockey) • Texas Revolution (indoor football) • Dallas Sidekicks (indoor soccer) Performing Arts Cluster Analysis MULTI -USE EVENTS CENTER CASE STUDIES, TEXAS Key Project Facts: • 100% public investment of $55 Million (2008). • City owned, private sector operated venue. • 42 acre suburban site with surface parking located near a hwy interchange. • Public Private Partnership (P3) in place to develop an adjacent 180,000 sq.ft retail -office project. • 130+ event days per year. Item 6B - MXD Economic Cluster Analysis 'Ed M, DEVELOPMENT STRATEGISTS Cedar Park Center Cedar Park, Texas • 6,863 fixed -seat (8,700 capacity) multi -use indoor stadium. • Opened in 2009. • Home to professional sports teams: • Texas Stars (ice hockey) • Austin Spurs (basketball) • Austin Aces (tennis) Performing Arts Cluster Analysis MULTI -USE EVENTS CENTER CASE STUDIES, TEXAS 11 L) Key Project Facts: • 100% public investment of $22 Million (2002). • City owned and operated venue. • Originally opened as the as the Dodge Arena; 2010 State Farm buys naming rights and changes name. • 33 acre rural site located in rural agricultural area near a highway intersection. No complimentary nearby land uses (retail, dining, or hotel) Item 613 - MXD Economic Cluster Analysis 'Ed M, DEVELOPMENT STRATEGISTS State Farm Arena Hidalgo, Texas • 5,500 fixed -seat (6,800 capacity) multi -use indoor stadium. • Opened in 2003. • Home to professional sports teams: • Valley Killer Bees (ice hockey) • Valley Vipers (basketball) • La Fiera FC (indoor soccer) Performing Arts Cluster Analysis MULTI -USE EVENTS CENTER CASE STUDIES, USA Key Project Facts: • 100% public investment of $105 Million (2007). • County owned, private sector operated venue. • Originally opened as the as the Lucas County Arena; 2010 $2.1M, six-year naming rights agreement led to name change. • 4 acre downtown site located in events precinct by SeaGate Convention Centre and Fifth Third Field. Item 6B - MXD Economic Cluster Analysis 'Ed iVl�� DEVELOPMENT STRATEGISTS Huntington Center Toledo, Ohio • 7,389 fixed -seat (9,300 capacity) multi -use indoor stadium. • Opened in 2009. • Home to professional sports teams: • Toledo Walleye (ice hockey) • Toledo Crush (indoor football) Performing Arts Cluster Analysis MULTI -USE EVENTS CENTER CASE STUDIES, USA Key Project Facts: • 100% public investment of $60 Million (2007). • City owned, private sector operated venue. • 30 acre site suburban location adjacent to the 50 acre Independence Center shopping center and a medium -density office & residential development. • Event Center surface parking and adjacent to major hwy interchange. Item 6B - MXD Economic Cluster Analysis 'Ed M, DEVELOPMENT STRATEGISTS Independence Events Center Independence, Missouri • 5,800 fixed -seat (7,000 capacity) multi -use indoor stadium. • Opened in 2009. • Home to professional sports teams: • Missouri Mavericks (ice hockey) • Missouri Comets (indoor soccer) 13 Performing Arts Cluster Analysis MULTI -USE EVENTS CENTER CASE STUDIES, CANADA Key Project Facts: • 100% public investment of USD$60 Million (2007). • City owned, private sector operated venue. • 9 acre site suburban location adjacent to 40 acre university, industry, and residential. • The venue is near a major hwy interchange and pay parking is available at the university and premium lot; free surface parking lots are nearby. 'Ed iVl�� DEVELOPMENT STRATEGISTS Abbotsford Entertainment & Sports Centre Abbotsford (Metro Vancouver) British Columbia • 7,000 fixed -seat (8,500 capacity) multi -use indoor stadium. • Opened in 2009. • Former home to professional sports team: • Abbotsford Heat (ice hockey) 132 Item 613 - MXD Economic Cluster Analysis Performing Arts Cluster Analysis MULTI -USE EVENTS CENTER CASE STUDIES, CANADA Key Project Facts: • 100% public investment of USD$25.1 Million (103). • City owned, private sector operated venue. • 6 acre site downtown location adjacent to offices, dining, retail, institutional, and housing. • The venue is located on major arterial streets. Limited on-site pay parking and nearby surface and structured parking in the downtown. Item 613 - MXD Economic Cluster Analysis 'Ed M, DEVELOPMENT STRATEGISTS Save -On -Foods Memorial Centre Victoria, British Columbia • 7,000 fixed -seat (9,000 capacity) multi -use indoor stadium. • Opened in 2003. • Home to professional sports teams: • Victoria Royals (ice hockey) • Victoria Salmon Kings (ice hockey) Performing Arts Cluster Analysis MULTI -USE EVENTS CENTER CASE STUDY SUMMARY Allen Events City of Allen, 6,275— Suburban, 7 Professional Sports, Center DFW region, 8,600 acres, shared & Concerts, and Texas garage parking Community Events. Cedar Park Cedar Park, 6,863— Suburban, 42 Professional Sports, Center Austin region, 8,700 acres, on-site Concerts, and Texas surface parking Community Events. State Farm City of Hidalgo, 5,500— Rural, 33 acres, Professional Sports, Arena Hidalgo 6,800 on-site surface Concerts, and County, Texas parking Community Events. Huntington Center Independence Events Center Abbotsford Entertainment & Sports Centre Save -On -Foods Memorial Centre City of Toledo, Lucas County, Ohio City of Independence, Jackson County, Missouri City of Abbotsford, British Columbia City of Victoria, British Columbia Item 613 - MXD Economic Cluster Analysis 7,389- 9,300 5,800- 7,000 ,800-7,000 7,000- 8,500 ,000- 8,500 7,000- 9,000 ,000-9,000 Downtown, 4 acres, shared garage parking Suburban, 30 acres, on-site surface parking Suburban, 9 acres, on-site and shared surface parking Downtown, 6 acres, shared garage parking Professional Sports, Concerts, and Community Events. Professional Sports, Concerts, Trade Shows, and Community Events. Professional Sports, Concerts, and Community Events. Professional Sports, Concerts, and Community Events. City of Allen (Municipally operated) City of Cedar Park (privately operated) City of Hidalgo - Texas Municipal Facilities Corporation Lucas County (privately operated) City of Independence (privately operated) City of Abbotsford (privately operated) City of Victoria (privately operated) j M�l�' DEVELOPMENT STRATEGISTS $52.6M (2008) / Public $58.2M (2014) $55M (2008) / Public $60.8M (2014) $23M (2002) / Public* $30.4M (2014) (Naming rights) $105M (2007) / $120.5M (2014) $60M (2008) / $66.3M (2014) $69.7M (USD, 2007) / $77M (USD, 2014) $25.1M (USD, 2003) / $32.5M (USD, 2014) Public* (Naming rights) Public Public Public* (Naming rights) 134 Mid -Sized, Multi -Use Performing Arts Venue . 1 by �� -- _•.�� Multi -Use Events Center "First Thursdays" Art Walk 1 •1. _ Performing Arts Cluster Analysis RECOMMENDATIONS & IMPLEMENTATION STRATEGY TYPICAL BUILDING FORMAT • Free-standing building with highly recognizable/iconic architecture. • Surface parking lot and/or parking facility shared with surrounding primarily -daytime businesses. • Costs likely to range $25 million to $40 million. COMPLIMENTARY USES • Restaurants • Retail/Shopping • Other Cultural Venues • Galleries & Museums • Upscale Hotel & Housing PHASING TIMELINE Item 613 - MXD Economic Cluster Analysis 0,g M'. 0 �0 STRATEGISTS 136 Performing Arts Cluster Analysis Item RECOMMENDATIONS & IMPLEMENTATION STRATEGY DIRECTION • Introduce venue concept to the public. • Gather ideas, build support and enthusiasm. • Envision uses for the venue & begin process of identifying candidate long-term venue tenant. • To keep capital costs down, consider existing venues in Southlake, including the Gateway Church. • Identify potential community uses of the venue, to include schools, festivals, and public meetings. • Reach a consensus about the project concept, creation process, governance, and responsibilities. 'Papa M, DLVLL©PMLNT STRATLGISTS APPROACH • Retain Cultural Consultancy to manage project. • Form Municipal Steering Committee. • Form Volunteer Public Advisory Group. • Host facilitated public open houses. • Host curated idea workshops for the performing arts community. • Receive political approval to proceed to Implementation stage. _ Performing Arts Cluster Analysis RECOMMENDATIONS & IMPLEMENTATION STRATEGY DIRECTION • Build a Mid -Sized, Multi -Use Performing Arts Venue with the following attributes: • 350 to 500 seats, high-quality architecture. • Proscenium stage, fly tower, and retractable tiered seating riser (enables flexible use and reconfiguration of the audience chamber) • Technical capacity to host theater, dance, concerts, conferences, lectures, & weddings. • Restaurant -Bar physically connected to the theater with full sound -isolation. • Arts organization office space, rehearsal hall, and costume/prop storage space. Item 613 - MXD Economic Cluster Analysis 0'apfiiVl�DEVEL®PMENT STRATEGISTS APPROACH • Finalize requirements, governance, and budget. • Issue a Request for Proposal (RFP) for a multi-year venue residency & operation by a team comprised of an established DFW performing arts organization(s) and a Restaurant/Bar operator. • Issue a RFP for fixed-price design -build services with exceptional, landmark architecture required. • Solicit philanthropic donations and naming rights.138 _ Performing Arts Cluster Analysis RECOMMENDATIONS & IMPLEMENTATION STRATEGY DIRECTION • City of Southlake contracts operation of the venue and Restaurant/Bar to the RFP -selected Performing Arts Organization Team. • Operation contract would guarantee frequent opportunities for low-cost access to the facility by emerging performing arts organisations and community groups, as well as low/no-cost community use (public meetings, schools, etc.). • City would retire construction costs through Operator lease payments, revenue sharing from venue rentals and the Restaurant/Bar, and from philanthropic revenue (naming & donations). Item 613 - MXD Economic Cluster Analysis O'giVl�L)LVLL®PMENT STRATEGISTS APPROACH • Ensure a productive and close working relationship between the standing Municipal Steering Committee & the contracted Venue Operator through open communication, and a well-written, enforceable contract. • Leverage venue to nurture the next generation of performers, direction, technicians, and audiences through school outreach programs & internships. 139 Performing Arts Cluster Analysis RECOMMENDATIONS & IMPLEMENTATION STRATEGY DIRECTION • Identify one or more mid-level or regional professional sports teams that would use the event center and commit to a long-term lease. • Identify entertainment market demand. • Identify land for events center and evaluate potential for a Public -Private -Partnership, including building naming rights. • Introduce Multi -Use Events Center concept to the public and gauge support for public investment. Item 6B - MXD Economic Cluster Analysis 'Papa M, DEVELOPMENT STRATEGISTS APPROACH • Form Municipal Steering Committee to advise City Council. • Form Volunteer Public Advisory Group to advise City Council. • Retain a Sports and Entertainment Consultancy to manage the evaluative process, advise City Council, and undertake tenant prospecting. • Host public meetings and open houses. • Receive political approval to proceed to Implementation stage. 140 Performing Arts Cluster Analysis RECOMMENDATIONS & IMPLEMENTATION STRATEGY TYPICAL BUILDING ATTRIBUTES • 5,500 — 9,000 person capacity. • $60M to $100M construction cost. • Publicly owned, frequently privately operated. • Free-standing building with attractive but cost- conscious architecture. • One or more mid-level professional sports teams. • State of the art concert venue. • Luxury/corporate box suites & meeting space. • 30+ acre site with surface parking or 5-10 acre site if parking is shared or in multi-storey garages. • Located by a highway interchange or downtown. • Commonly located beside a large shopping center. COMPLIMENTARY USES • Restaurants & Retail • Hotel 'Papa M, DLVLL©PMLNT STRATLGISTS Item 615 - NOa-trs4cCuItumalAVenue$ 141 _ Performing Arts Cluster Analysis RECOMMENDATIONS & IMPLEMENTATION STRATEGY IIW 1�1W Creating a "First Thursdays" Art Walk DIRECTION • Introduce the globally -popular "First Thursdays" art walk concept to Southlake: on the first Thursday night of each month Town Square galleries, shops, restaurants, and temporary 'pop- up' Art in the Square vendors would stay open late. People walk from location to location, listen to live music and having snacks and drinks as they go, and enjoy a low-key festive atmosphere. • Expand Art in the Square into a bi-annual event and tie in with monthly First Thursday concept. • Encourage Town Square businesses to hang local art and include galleries in the tenant mix. Item 6B - MXD Economic Cluster Analysis 'Papa M, DEVELOPMENT STRATEGISTS APPROACH • Form Municipal Arts & Culture District Steering Committee to advise City Council. • Forma Volunteer Merchants & Artists Steering Committee to advise City Council. • Retain a Cultural Consultancy to manage the First Thursday pilot project and advise City Council. • Host public meetings and open houses. • Receive political approval to proceed to the pilot project Implementation stage. pi .,ODEVEL©PMENT STRATEGISTS 143 Item 6B - MXD Economic Cluster Analysis Final Recommendations FINAL RECOMMENDATIONS 'Ed M, - , 0� DEVELOPMENT STRATEGISTS There are recommendations in this report for each of the three clusters under analysis (Sections 4, S & 6) however our research has led to a focus on two primary recommendations that create exciting synergies when integrated into concepts that are greater than the sum of their parts. These development suggestions have emerged from the analysis of both Phase 1 and Phase 2 of MXD's engagement with the City of Southlake. 144 Item 6B - MXD Economic Cluster Analysis Final Recommendations Components ■ Forest Park Medical Center Southlake (already constructed and expanding) ■ Children's Health Specialty Center Southlake (already constructed) ■ Specialized pediatric and senior clinic & outpatient facilities �iVl� ' �DEdEL®PMENT STRATEGISTS ■ Specialized medical facilities for surgical procedures (cosmetic, implanted medical devices, bariatric, etc.) to build medical tourism. ■ Research & Development Facilities Item 6B - MXD Economic Cluster Analysis Final Recommendations SOUTHLAKE HEALTH AND RESEARCH DISTRICT 'Edi ,.0O ' DEVELOPMENT STRATEGISTS ■ Focus on infill projects on the north and south side of Hwy 114, to create a cluster around Forest Park Medical Center and Children's Health. ■ Delineate a special "Medical District" area along Hwy 114 to enable and trigger development. ■ Build upon the success of Children's Health with further facilities that cater towards the field of pediatric care. At the other end of the spectrum, specialty senior outpatient facilities serves the regions aging population. ■ Research & Development facilities will require funding from Universities or private philanthropic donors. ■ Health -based Conferences can take place at the nearby Multi -Use Performing Arts/Event facility (when constructed). ■ Market Southlake as a city for Upscale Domestic Medical Tourism once the health district has established critical mass and specialized medical procedures are available. PHASING TIMELINE Mid -Term Long -Term Item 613 - MXD Economic Cluster Analysis 0 146 Final Recommendations Culture& Culinary Hub SOUTHLAI<E 'Papa iVl� DEVELOPMENT STRATEGISTS Components ■ 350 to 500 seat Mid -Size, Multi -Use Performing Arts Venue and/or larger -scale 5,500 to 9,000 seat Multi -Use Event Center. ■ Local Artist Spaces and Galleries surrounding multi -use venue. ■ 6-10 unit Destination Restaurant Cluster. ■ Culinary incubator with facilities (kitchens, food manufacturing) for entrepreneurs to begin their culinary businesses. ■ Outdoor partially -covered Gathering Space for Cultural Events and Farmers Markets. ■ Community and Demonstration Food Gardens. ■ Culinary School or For -Profit Cooking Classes for Local Residents. Item 6B - MXD Econom c Cluster Analysis Final Recommendations CULTURE AND CULINARY HUB SOUTHLAKE 'Edi ,.0O ' DEVELOPMENT STRATEGISTS ■ Develop in a phased approach, with various components building upon one another. ■ Begin with destination restaurant cluster as demand currently exists for full-service restaurants within Southlake. Establishing a successful destination will bring forth more interest in funding other components to the hub. ■ Aside from the restaurant cluster, other components will require multiple partnerships to ensure that they are economically viable, with a mixture of private investment, philanthropy, State funding, sponsorship from local companies, and City funds. ■ Integral to create a destination with multiple components that keeps the hub active day and night. ■ Connect the hub with various annual culinary events in Southlake, and market it as destination tourism. PHASING TIMELINE Item 613 - MXD Economic Cluster Analysis 148 mm,.-O� DEVELOPMENT STRATEGISTS 150 Item 6B - MXD Economic Cluster Analysis Appendix A - Ice Sheet Feasibility ICE RINKS — SHEETS IN SURROUNDING COMMUNITIES ■ Three ice rinks in 20 minute drive from Southlake. ■ All rinks are privately owned. 'Papai ,.00 ' DEVELOPMENT STRATEGISTS ■ Dr. Pepper StarCenter rinks are affiliated with the Dallas Stars Hockey Club of the National Hockey League. ■ NYTEX Sports Center is a 2,400 seat multi-purpose arena, home to several junior hockey league teams, as well as a skating academy and public open skates. ■ Polar Ice House at Grapevine Mills closed September 2014 due to reduction of revenues when youth hockey teams left to operate from Dr. Pepper StarCenter's. ■ Limited amount of ice time available in the Mid -Cities. 151 Item 6B - MXD Economic Cluster Analysis Appendix A - Ice Sheet Feasibility 'Papa M,-,O� DEVELOPMENT STRATEGISTS ICE SHEETS IN THE DFW METROPLEX IN CLOSE PROXIMITY TO SOUTHLAKE LxWSVLLE I .5 N . s4 LrtE 1 _-- PlAl10- - 1 KEY :.. E4HRS.;LLTU 0 DART Rail & Stations Tollways cau ` AUOEiOn �® �'tr� GHPFENFF h•yWev.;TMn FC�iCJ1�6d1 ��-s\\ ..KD.. Trinity Railway Express (TRE) -0�F and Station to Irv'ng, SO UTH LAU • _ • ll DEW Airport and Fort Worth $LAR DR PEPPER 6 DISTANCE Dallas to FortWorth:32miles •: STARCE-•:L;ITER %KEITH �I....�..-.• GIiFEN41LlcnvE _ lx�• �` *n rtFow J I -: 1 iWATAUG0...�., .m..�r. PORTS o �..� FS➢LESS �,. M LL< c m�=e..ccTy�.E -O%-ME fF.55©N MING CENTER Fm . _ .... ... an'n NH]f H.,.,•,• .; DR-PEPPER...,� ...' E®. DALLAS � A ors F, u..fr D!`i L.A �n uu _II ATARCENTR� �� RAR .— MEgAffrE ,, C t m Y�r{ Jnr M Ku r.l ;-. Eb 6QC 0 f Lin -k.T, LLa FC7RTWORTH CURRENTLY GR.4SQ :LIWE +ORES SHILL 3_HERCOK DMCANVII LIT 0E513TO NFMSFFBD CEDAR EARL ANC§S ER Item 6B - MXD Economic Cluster Analysis UNDER OPERATION Appendix A - Ice Sheet Feasibility ICE RINKS -CONSTRUCTION ISSUES PiVl� 'DEdEL®PMENT STRATEGISTS ■ Ice rinks are a very special type of building and require the development and input of specialists. ■ Potential for major problems due to temperature and humidity factors of North Texas climate. Too high humidity inside can cause serious corrosion problems. ■ Modern ice rink requires special tools to control indoor climate, and high energy costs make it necessary to attempt for higher energy efficiencies. 11 Item 6B - MXD Economic Cluster Analysis 153 Appendix A - Ice Sheet Feasibility ICE RINKS — CONSTRUCTION COSTS '%� Ar i�7­1001%6 'Ed M, - , 0� DEVELOPMENT STRATEGISTS ■ For a modern "small" sized ice rink with 1 sheet of ice that is employed as a multi-purpose arena, the International Ice Hockey Federation (IIHF) estimates approximately $3.5 to $4 million US dollars for total project costs not including site costs. ■ Minnesota Ice Arena Managers Association estimates basic tilt -up one sheet arena at $3.8 million, two -sheets at $7.2 million. 154 Item 6B - MXD Economic Cluster Analysis Appendix A - Ice Sheet Feasibility ICE RINKS — CONSTRUCTION COSTS CASE STUDY ■ Ice Sheet at Ogden in Ogden Utah: ■ $5.9 million in 1990 'Ed M, - , 0� DEVELOPMENT STRATEGISTS ■ Averages 20 hours per day of activity ■ Offers public skating, lessons, hockey, curling, figure skating, speed skating, ice shows, pro shop, conference rooms & locker rooms. ■ Used during the 2002 Winter Olympics. 155 Item 6B - MXD Economic Cluster Analysis MM,0�0 Appendix A - Ice Sheet Feasibility L)EVEEOPMENT STRATEGISTS ICE RINKS — CONSTRUCTION COSTS CASE STUDY ■ Breslow Ice Center in Lincoln, Nebraska: ■ Construction to begin in Fall 2014 ■ Single sheet arena with high architectural standards. ■ $11 million total costs. ■ $7 million donation from businessman John Breslow ■ City is selling the land for $1 ■ City is donating $1 million in site preparation. ■ West Haymarket Joint Public Agency donating $2 million ■ City's financial involvement allows them to regulate use for public. ■ University of Nebraska will "own and operate" the facility. Item 613 - MXD Economic Cluster Analysis 156 Appendix A - Ice Sheet Feasibility ICE RINKS — EXPENSE COSTS 0,apfiiVl�DEdEL®PMENT STRATEGISTS ■ IIHF lists maintenance costs for a small rink between $600,000 and $7001000 US dollars annually. Water Item 6B - MXD Economic Cluster Analysis Sewage Electricity (Energy) OW Staff ■ Maintenance Other Costs Source: IIHF Appendix A - Ice Sheet Feasibility ICE RINKS — DEVELOPMENT COST 'Ed M, DEVELOPMENT STRATEGISTS ■ Running a basic development program for a recreation centre with one ice sheet, one indoor soccer field, and required ancillary space, would require a building (GBA) of 74,382 square feet in size. 158 Item 613 - MXD Economic Cluster Analysis Ice Surfaces Ice Surface, Seating, etc GBA per Unit Ice Surface Total GBA Indoor Soccer Field Indoor Soccer Field, Seating etc. GBA per Unit Indoor Soccer Field Total GBA Total Ice & Field GBA 1 22,000 22,000 1 22,000 22,000 44,000 158 Item 613 - MXD Economic Cluster Analysis Change Room SF @ 0.183 SF per 1 SF GBA Lobby/Ci rc/Elev SF @ 0.048 per 1 SF GBA General BOH SF @ 0.119 per 1 SF GBA Ice Surface BOH SF @0.155 per 1 SF GBA Ice Admin SF @ 0.02 per 1 SF GBA Pro Shop SF @ 0.012 per 1 SF GBA Office/Storage (Leasable) SF @ 0.028 per 1 SF GBA Food & Beverage SF @ 0.053 per 1 SF GBA Community Hall SF @ 0.061 per 1 SF GBA 0.183 8,050 2,116 5,236 3,400 900 1,340 1,860 3,480 4,000 0.048 0.119 0.155 0.020 0.030 0.028 0.053 0.061 Tota I Anci I I a ry Spa ce 30,382 158 Item 613 - MXD Economic Cluster Analysis Appendix A - Ice Sheet Feasibility ICE RINKS - DEVELOPMENT COST 'Edi ,-00 ' DEVELOPMENT STRATEGISTS ■ Total development cost for recreation center with one ice sheet, one indoor soccer field and ancillary services at a high architectural standard is $17 million with donation of land at $1. 159 Item 613 - MXD Economic Cluster Analysis Parking per 1,000 SF GBA Parking Stalls Required Surface Parking Area Required (Acres) 2.00 149 1.36 159 Item 613 - MXD Economic Cluster Analysis Total Development Program Design/Build Cost per SF GBA Soft Costs per SF GBA Furniture, Fixtures & Equipment per SF GBA Land Costs Per Acre Design/Build Cost Total Soft Costs Total Furniture, Fixtures & Equipment Total Pa rki ng Cost Tota 1 Land Costs Tota 1 74,382 $210 $10.88 $3.72 $1.00 $15,621,100 $808,974 $277,046 $357,600 $1 Total Development Cost $17,064,721 159 Item 613 - MXD Economic Cluster Analysis Appendix A - Ice Sheet Feasibility ICE RINKS - REVENUES VS. EXPENSES PiVl� 'DEVEL®PMENT STRATEGISTS ■ Employing industry standards, if the recreation center is programmed throughout the year, a net operating surplus could be achieved of approximately $167,831 in Year 1. Item 613 - MXD Economic Cluster Analysis 160 Ice Rentals -Community User Groups Ice Rentals - Non subsidized at market rates Indoor Field Use Summer dry arena rentals Community Hall rentals Food & Beverage Contract Revenues Interactive, public skating Pro Shop $6.57 22,000 22,000 22,000 22,000 4,000 3,480 44,000 22,000 1,340 $144,638 $247,000 $420,000 $15,000 $25,000 $30,000 $57,333 $9,760 1 $20,100 $11.23 $19.09 $0.68 $6.25 $8.62 $1.30 $0.44 $15.00 Total Year 1 Revenues $968,831 Item 613 - MXD Economic Cluster Analysis 160 General &Administration Marketing, Sales & Events Operations & Maintenance - Ice Operations & Maintenance - Indoor Field Management Capital Reserve $3.95 44,000 44,000 22,000 22,000 44,000 44,000 $173,833 $19,167 $374,727 $83,273 $100,000 $50,000 $0.44 $17.03 $3.79 $2.27 $1.14 Tota I Year 1 Expenses $801,000 Item 613 - MXD Economic Cluster Analysis 160 Appendix A - Ice Sheet Feasibility ICE RINKS —SUMMARY 'Edi ,.0O ' DEVELOPMENT STRATEGISTS ■ There is demand in the Mid -Cities for ice time for both youth hockey teams as well as public skating, especially with the closing of the Grapevine Mills Polar Ice facility. ■ Indoor soccer fields typically generate higher revenues and can offset the costs of ice rink maintenance. Including an indoor field in the development of an ice rink would be beneficial. ■ If properly programmed throughout the year, a net operating surplus can be achieved, although it will not offset the high development costs, even if the land is sold for $1. ■ Partners such as State Government, Equity Investors, Philanthropic Donations, and Company Sponsorships are required for economic feasibility when constructing the development. ■ With the Dallas Stars Travel Hockey League requiring affiliated ice rinks for their youth teams, affiliation would be key in ensuring that youth leagues would continually use the ice sheet to generate revenue. 161 Item 6B - MXD Economic Cluster Analysis