City to tout arena's predicted impact
Lincoln Journal Star
October 6, 2009
A Wisconsin sports consulting company says a new Lincoln arena and associated developments could generate $260 million in annual economic activity and create 1,200 jobs.
That assumes the University of Nebraska-Lincoln men's and women's basketball teams -- and occasionally the volleyball team -- would play in the arena.
The Pershing Center currently draws about 300,000 people annually, and the new arena is expected to draw about 750,000 to 850,000 people annually, of which about 300,000 would be attendees at UNL basketball games, which are currently held at the Bob Devaney Sports Center.
Mayor Chris Beutler intends to ask the Lincoln City Council to put a $350 million arena project before voters on May 11. The results of a study by Leib Advisors of Mequon, Wis., will be discussed by Michael O'Sullivan of Leib on Tuesday at the Lincoln Chamber of Commerce.
The consulting company advises professional sports teams, universities and municipal clients on such facility and team issues as stadium and arena feasibility, economic impact and financing.
Among its findings in a copy of the Leib study requested last week by the Journal Star are the following.
- $804 million in economic activity and nearly 8,000 jobs would be created during construction of a new arena.
- The development would generate nearly $3 million in local taxes annually and $5 million in state taxes by the fourth year of operation.
- Four years after the arena opens, it could have a $44 million economic impact on Lincoln through admissions revenue and lodging, food and beverages bought outside of the arena, and associated development.
- The arena would offer about 60 full-time equivalent jobs and have an annual payroll of about $2 million.
Interestingly, much of the money spent by arena attendees would go to a new hotel, restaurants and shops planned by a private development team working with the city.
Arena promoters have long touted the impact a new arena would have on Lincoln bars, restaurants, hotels and other businesses -- hence, the reason for its location near so many of them in the Haymarket. But the study estimates most of that business, 60 percent, would be captured by private developments planned next to the arena.
Leib estimates the arena would generate 57 jobs and $1.35 million in annual earnings outside of the new developments and 117 jobs and $3.5 million in earnings within the new development west of the Haymarket.
The report also includes an updated estimate of the cost of the whole development, including private portions, of $445 million.
That includes 100,000 square feet of offices, 100,000 square feet of retail, 100 units of residential, a 200-room hotel and the mostly donor-funded Breslow Ice Center.
The office, shops and hotel account for about 600 jobs. The study authors say those jobs would create another 400 jobs indirectly.
The Leib report also includes updated construction costs:
- $18 million to buy land
- $39 million in relocation and infrastructure costs
- $169 million for the arena
- $20 million for the private hotel
- $18 million apiece for the office and retail space
- $23 million in residential space
- $49 million in parking space
- $42 million in roads, utilities and pedestrian paths
- $33 million in environmental, site preparation and other costs.
Arena supporters are preparing to launch a public education program in the coming months, before the City Council is asked to vote on several pieces of the puzzle in December.
Reach Deena Winter at 473-2642 or dwinter@journalstar.com.
http://journalstar.com/news/local/article_e30323c8-b1ff-11de-8a21-001cc4c03286.html
