Redding City Council
June 18, 2024

CITY OF REDDING, CALIFORNIA

REQUEST FOR PROPOSALS

GENERAL CONDITIONS

1. PUBLIC INFORMATION
All submitted proposals and information included therein or attached thereto shall become public record upon their delivery to the City. Proposals may be reviewed by outside interested parties after all proposals received for a particular project have been reviewed and the intended awardee has been selected.

By submission of a proposal, Consultant understands and agrees that the City of Redding is subject to the California Public Records Act (Cal. Gov. Code section 62500 et seq.), and that all or part of the proposal submitted by Consultant may be subject to disclosure therein regardless of whether the proposal or part thereof is marked as proprietary. The City reserves sole discretion to determine whether disclosure is necessary under State law, and Consultant hereby releases City from all liability relating to such disclosure. City shall have no obligation to litigate the issue of disclosure under the Act on behalf of Consultant.

2. RFP ADDENDA
The City of Redding reserves the right to amend, alter, or revoke this RFP in any manner at any time. At the City’s sole discretion, modifications, clarifications, or additions will be distributed as an addendum to all known proposers. It is the responsibility of all interested parties to verify the existence of addenda (check Purchasing’s website at https://www.cityofredding.gov/government/departments/purchasing/bid_opportunities.php or call/ email the stated City contact).

3. PROPOSAL PREPARATION COSTS
All costs incurred in the preparation and presentation of this proposal shall be wholly absorbed by the vendor.

4. PROPOSALS
All proposals will be firm for a period of ninety (90) calendar days following the required date of submission unless an alternate time frame is stated in the Request for Proposal.

5. DEVIATIONS
If there are any deviations from the specifications set forth herein, the bidder shall note the deviations in his proposal. Failure to note a deviation from the specifications may be grounds for rejection by the City of that particular proposal. Where deviations are noted, the City reserves the right to accept a proposal containing such deviations provided that, in the sole opinion of the City, the deviation or deviations so noted do not affect the overall capability of the alternative item or process proposed to perform the function for which it is to be acquired and such deviations result in lesser total cost to the City for the subject item or service.

Packet Pg. 908 Attachment: RFP No. 5471 - Lease of General Use Multifunction Digital Photocopy Machines and Management System (4.12(b)--Award of RFP

6. WITHDRAWAL OF PROPOSAL
Any proposer may withdraw their proposal, either personally or by written request at any time prior to the scheduled closing time for the receipt of proposals. Such requests are to be directed to the City Clerk.

7. SELECTION PROCEDURES
Proposals submitted will be subject to the City’s selection procedures for technical and/or professional consultants. Accordingly, final selection will be based upon overall capability to perform services and not exclusively upon cost of services.

The City may make any investigation it deems necessary to determine the ability of a Proposer to carry out the obligations indicated in the Request for Proposal and the submitted Proposal. At the City’s sole discretion, the Proposer shall furnish to the City all information and data for this purpose if materials submitted by, or investigation of, any Proposer fails to satisfy the City that the Proposer is properly qualified to carry out the stated obligations.

The City of Redding reserves the right to accept the proposal that is in the best interest of the City. The City’s decision shall be final.

8. RIGHT TO REJECT PROPOSALS
The City reserves the right to reject any and all proposals, to waive any non-material irregularities or information in any proposal, and to accept or reject any combination of items.

9. AWARD OF CONTRACT
The award of the contract, if it is awarded, shall be made on the basis of availability of budgeted funds and to a responsible Contractor who presents the best value to the City per Redding Municipal Code 4.20.040(C).

4.20.040(C) Procure for the city the needed quality in supplies, services and equipment that prove to be the best value to the city. Determination of best value may take into consideration additional elements beyond cost such as warranty, life cycle related costs, lead time, desired aesthetics, work experience as verified through references or work examples, vendor location, prior work with the city or other factors deemed relevant by the purchasing officer in the procurement of the needed supplies, equipment or work to be performed.

10. CITY OF REDDING BUSINESS LICENSE
The awarded Vendor/Consultant may be required to obtain a City of Redding Business License per Municipal Code 6.02 – Business Licenses.

6.02.020 It is unlawful for any person to be engaged in business in the city without having a valid license from the city to do so, in compliance with any and all regulations contained Packet Pg. 909 Attachment: RFP No. 5471 - Lease of General Use Multifunction Digital Photocopy Machines and Management System (4.12(b)--Award of RFP

in this chapter pertaining to the business, unless the person is exempt under the provisions of this chapter. No person who is an employee, or the direct representative of a licensee, shall be required to pay a license fee for doing any part of the work of the licensee.

The selected firm shall execute an agreement with the City within ten (10) working days after notification of selection, unless the time for execution has been extended for good cause at the sole discretion of the City. Failure of the selected firm to meet contract submission requirements (e.g. insurance) or failure to timely execute an agreement with the City may result, in the sole discretion of the City, a decision to select from the remaining proposers or to call for new proposals.

11. INSURANCE REQUIREMENTS (IF APPLICABLE)
Consultant shall designate the City of Redding, 777 Cypress Avenue, Redding, CA 96001 as a Certificate Holder of the insurance. Consultant shall furnish City with certificates of insurance and original endorsements effecting the coverages required by this clause.

Certificates and endorsements shall be submitted electronically via the PINS Advantage system. A link will be provided for the Consultant, or their insurance agent, to enter and upload documents directly to PINS Advantage. The certificates and endorsements for each insurance policy are to be signed by a person authorized by the insurer to bind coverage on its behalf. All endorsements are to be received and approved in PINS Advantage by the City’s Risk Manager prior to the commencement of contracted services. City may withhold payments to Consultant if adequate certificates of insurance and endorsements required have not been submitted as described above or provided in a timely manner.

Rev. 10/11/2023
Packet Pg. 910 Attachment: RFP No. 5471 - Lease of General Use Multifunction Digital Photocopy Machines and Management System (4.12(b)--Award of RFP 05/21/20

INSURANCE REQUIREMENTS
A. Unless modified in writing by City’s Risk Manager, Contractor/Vendor shall maintain the following noted insurance during the duration of the Contract:

Coverage Required Not
Required
Commercial General Liability X
Comprehensive Vehicle Liability X
Workers’ Compensation and Employers’ Liability $1,000,000 X Workers’ Compensation Declaration Form X
Garagekeepers $500,000 X
Professional Liability (Errors and Omissions) $1,000,000 X Excess Liability Coverage $1,000,000 X
Contractor’s Pollution Liability $1,000,000/$2,000,000
Aggregate
X
Course of Construction (Value equal to contract amount) X On Hook $1,000,000 X
Commercial Aircraft Liability $5,000,000 per occurrence / $500,000 per passenger
X
Auto Liability with MCS-90 endorsement for waste
spills/cleanups
X
(Place an “x” in the appropriate box)
B. Coverage shall be at least as broad as:

1. Insurance Services Office form number CG-0001, Commercial General Liability Insurance, in an amount not less than $1,000,000 per occurrence and $2,000,000 general aggregate for bodily injury, personal injury and property damage; Higher limits may be required on project over $1,000,000 Check with Risk Management

2. Insurance Services Office form number CA-0001 (Ed. 1/87), Comprehensive Automobile Liability Insurance, which provides for total limits of not less than $1,000,000 combined single limits per accident applicable to all owned, non-owned and hired vehicles;

3. Statutory Workers’ Compensation required by the Labor Code of the State of California and Employers' Liability Insurance in an amount not less than $1,000,000 per occurrence. Both the Workers’ Compensation and Packet Pg. 911 Attachment: RFP No. 5471 - Lease of General Use Multifunction Digital Photocopy Machines and Management System (4.12(b)--Award of RFP 05/21/20
Employers' Liability policies shall contain the insurer's waiver of subrogation in favor of City, its elected officials, officers, employees, agents and volunteers;

4. Garagekeepers Liability, $500,000 for vehicles in the care, custody, and control of the Contractor/Vendor.

5. Professional Liability (Errors and Omissions) Insurance, appropriate to Contractor/Vendor’s profession, against loss due to error or omission or malpractice in an amount not less than $1,000,000. To be used for Professional Services Contracts

6. Course of Construction Insurance providing coverage for all "risks" of loss in the amount of the completed project value. To be used when items are stored unprotected and could be damaged and/or trenches and performing construction related work (digging up of asphalt).

7. Contractor Pollution Liability, in the amount of $1,000,000, to include but not limited to coverage for bodily injury, property damage and cleanup arising from pollution conditions created by the contractor or encountered during work at job site. Coverage must apply to cleanup, damage or injury that occurs on, or that originates from, the site. To be used when work is being done in and around waterways (including storm drains) or potential of hazardous waste spills. Also, whenever hauling hazardous materials.

Required on all construction projects over $1,000,000 regardless of location to waterways.

8. Aircraft Liability: $5,000,000 per occurrence for bodily injury, personal injury and property damage. Policy is to have a minimum sublimit of $500,000 per passenger. If Commercial Aircraft Liability insurance or other form with a general aggregate limits is used, the general aggregate limit shall be equal to the required occurrence limit.

9. On-Hook Coverage insuring vehicles in tow for limits sufficient to cover any auto physical damage or a combined single limit of one million ($1,000,000).

10. Automobile Liability, owned, non-owned and hired, including MCS-90 endorsement for waste spills and cleanup.

C. Any deductibles or self-insured retentions must be declared to and approved by City.

At the option of the City, either: the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its elected officials, officers, employees, agents and volunteers; or the Contractor/Vendor shall procure a bond guaranteeing payment of losses and related investigations, claims administration and defense expenses.

D. The General Liability shall contain or be endorsed to contain the following provisions:

Packet Pg. 912 Attachment: RFP No. 5471 - Lease of General Use Multifunction Digital Photocopy Machines and Management System (4.12(b)--Award of RFP 05/21/20

1. City, its elected officials, officers, employees, and agents are to be covered as additional insured as respects liability arising out of work or operations performed by or on behalf of Contractor/Vendor; premises owned, leased or used by Contractor/Vendor; or automobiles owned, leased, hired or borrowed by Contractor/Vendor. The coverage shall contain no special limitations on the scope of protection afforded to City, its elected officials, officers, employees, agents and volunteers.

2. The insurance coverage of Contractor/Vendor shall be primary insurance as respects City, its elected officials, officers, employees, agents and volunteers.

Any insurance or self-insurance maintained by City, its elected officials, officers, employees, agents and volunteers, shall be in excess of Contractor/Vendor’s insurance and shall not contribute with it.

3. Coverage shall state that the insurance of Contractor/Vendor shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability.

4. Each insurance policy required by this Contract shall be endorsed to state that coverage shall not be canceled except after thirty (30) calendar days' prior written notice has been given to City. In addition, Contractor/Vendor agrees that it shall not reduce its coverage or limits on any such policy except after thirty (30) calendar days’ prior written notice has been given to City.

E. Insurance is to be placed with insurers with a current A.M.Best’s rating of no less than A-VII.

F. Contractor/Vendor shall designate the City of Redding as a Certificate Holder of the insurance. Contractor/Vendor shall furnish City with certificates of insurance and original endorsements effecting the coverages required by this clause. Certificates and endorsements shall be furnished to: Risk Management Department, City of Redding, 777 Cypress Avenue, Redding, CA 96001. The certificates and endorsements for each insurance policy are to be signed by a person authorized by the insurer to bind coverage on its behalf. All endorsements are to be received and approved by the City’s Risk Manager prior to the commencement of contracted services. City may withhold payments to Contractor/Vendor if adequate certificates of insurance and endorsements required have not been provided, or not been provided in a timely manner.

G. The requirements as to the types and limits of insurance coverage to be maintained by Contractor/Vendor as required this Contract, and any approval of said insurance by City, are not intended to and will not in any manner limit or qualify the liabilities and obligations otherwise assumed by Contractor/Vendor pursuant to this Contract, including, without limitation, provisions concerning indemnification.

Packet Pg. 913 Attachment: RFP No. 5471 - Lease of General Use Multifunction Digital Photocopy Machines and Management System (4.12(b)--Award of RFP 05/21/20
H. If any policy of insurance required by this Section is a “claims made” policy, pursuant to Code of Civil Procedure § 342 and Government Code § 945.6, Contractor/Vendor shall keep said insurance in effect for a period of eighteen (18) months after the termination of this Contract.

I. If any damage, including death, personal injury or property damage, occurs in connection with the performance of this Contract, Contractor/Vendor shall immediately notify City’s Risk Manager by telephone at (530) 225-4068. No later than three (3) calendar days after the event, Contractor/Vendor shall submit a written report to City’s Risk Manager containing the following information, as applicable: 1) name and address of injured or deceased person(s); 2) name and address of witnesses; 3) name and address of Contractor/Vendor’s insurance company; and 4) a detailed description of the damage and whether any City property was involved.

NOTE: The City of Redding uses the online insurance program PINS Advantage. Once you have been awarded a contract with the City of Redding you will receive an email from the City of Redding=s online insurance program requesting you to forward the email to your insurance provider(s). Please see attached flyer regarding PINS Advantage.

Contractor=s insurance agent shall furnish the City with certificates of insurance and original endorsements effecting coverage required by this clause through the City=s online insurance program PINS Advantage. All endorsements are to be received via the online PINS Advantage program and approved by the Risk Management Department before the project commences.

Packet Pg. 914 Attachment: RFP No. 5471 - Lease of General Use Multifunction Digital Photocopy Machines and Management System (4.12(b)--Award of RFP The City of Redding uses PINSAdvantage.com to track Insurance Certificates and all related documents!
HOW IT WORKS?
PINS begins with the City of Redding. The City of Redding logs into PINS and emails a request for insurance to the Vendor/Contractor. The Vendor/Contractor forwards the email onto their Insurance Agent(s). The Insurance Agent(s) logs into www.PINSAdvantage.com and completes the insurance certificate online.

WHAT TO LOOK FOR?
Vendor/Contractor will receive an email from: [email protected] Thank you for your cooperation!
For PINS support or questions on how to use PINS,
please contact [email protected]
Packet Pg. 915 Attachment: RFP No. 5471 - Lease of General Use Multifunction Digital Photocopy Machines and Management System (4.12(b)--Award of RFP

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Conduct a Public Meeting and receive public comment in consideration of the renewal of the Redding Tourism Marketing Business Improvement District.

Fiscal Impact
There is no impact to the General Fund with the recommended action. If the District is renewed, an administrative fee of one percent - estimated to be $14,000 - would be collected from the Tourism Marketing Business Improvement District (TMBID) funds for administrative costs.

Alternative Action
The City Council (Council) could choose to decline to conduct the Public Meeting, halting the process of renewing the TMBID, and/or provide further direction to staff.

Background/Analysis
On May 21, 2024, the Council adopted a Resolution of Intention to renew the TMBID, funded by an assessment on lodging industry receipts. That action allowed implementation of the next steps necessary to renew the TMBID by setting both the Public Meeting (this date) and the Public Hearing (July 16, 2024) as required by California law.

The TMBID was first formed in 2008 for a one-year period. In 2009, the Council approved renewal of the TMBID for an 18-month period running from July 1, 2009, through December 31, 2010. In December 2010, the Council approved a five-year renewal for the TMBID. That renewal called for assessments to increase from one percent to two percent on January 1, 2013.

The TMID was renewed thereafter from January 1, 2016, to December 31, 2025.

MEETING DATE: June 18, 2024
ITEM NO. 9.1(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.1(a)--Public Meeting to consider the renewal of the Redding Tourism Marketing Business Improvement District.

Jason Gibilisco, Management
Assistant to the City Manager
Packet Pg. 916
Report to Redding City Council June 12, 2024
Re: 9.1(a)--Renewal of the Tourism Marketing Business Improvement District Page 2 The Redding Tourism Marketing Group (RTMG), who administers the district, is requesting that the City Council renew the TMBID for a 10-year period, running from January 1, 2026, through December 31, 2035. The assessment would remain at two percent of gross room revenue (under30-day stay) and the RTMG has the option to increase the assessment rate annually by a maximum of one quarter of one percent of gross short-term sleeping room rental. The total assessment rate shall not exceed three percent.

Representatives of lodging properties that generate more than 70 percent of the total lodging revenues have signed petitions supporting renewal of the district, which is citywide. In fulfillment of its prior decision to hold the Public Meeting in consideration of the renewal of the TMBID, the Council should hear any public comments related to the district’s renewal. No official action is required, but any comments from this Public Meeting should be considered along with any additional testimony that may be given at the Public Hearing scheduled for July 16, 2024. Additionally, at the July 16 meeting, the Council may take formal action to renew the District if there is no majority protest.

Environmental Review
This is not a project defined under the California Environmental Quality Act and no further action is required.

Council Priority/City Manager Goals
• Economic Development – “Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community.”
Packet Pg. 917

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following:
(1) Authorize the Mayor to execute a contract in an amount not to exceed $1.2 million with the Self Help Home Improvement Project, Inc. for a three-year term with two, one-year extension options to implement and administer the City of Redding Electric Utility’s Residential Electrification Assistance Program; and
(2) Authorize the City Manager to approve contract amendments or extensions in accordance with the Agreement.

Fiscal Impact
Funding for this program will be sourced from the Public Benefits Program and Low Carbon Fuel Standards funds for building electrification and transportation electrification measure installations, respectively. Both funds are sufficiently resourced to fund $400,000 annually, or $1.2 million for the three-year program.

Alternative Action
The City Council (Council) may choose not to approve the contract and provide alternate direction to staff.

Background/Analysis
On September 21, 2021, Council approved Redding Electric Utility’s (REU) Demand-Side Management Integrated Resource Plan (DSM-IRP), transitioning the current Customer Program Portfolio from energy efficiency to electrification programs effective July 1, 2022. Current electrification programs offered include:

MEETING DATE: June 18, 2024
ITEM NO. 9.5(b)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.5(b)--Consider Professional Services Agreement with Self Help Home Improvement Project, Inc. (SHHIP) for Administration of Redding Electric Utility's Residential Electrification Assistance Program.

Nick Zettel, Director of
Redding Electric Utility
Packet Pg. 918
Report to Redding City Council June 12, 2024
Re: 9.5(b)--Residential Electrification Assistance Program Page 2 • Residential Programs:
o Building Electrification Rebates: Heat Pump Water Heaters and Heat Pump Clothes Dryers;
o Single-Family New Construction Rebate: Heat Pump Equipment (Space and Water Heating); and
o Transportation Electrification Retail Vouchers (point-of-sale incentives): IncomeQualified Electric Vehicles and Income-Qualified E-Bikes. • Commercial Programs:
o Building Electrification Rebates: Heat Pump Water Heaters; and o Transportation Electrification Rebates: DC Fast Charging Stations and Demand Fee Credit.

Staff regularly reviews the Customer Programs Portfolio to ensure the programs continue to provide value to the community while meeting the objectives of the DSM-IRP. During the last review period, staff identified a need to deliver programs that help remove barriers for customers with affordability concerns. Many customers typically cannot afford to take advantage of new technologies, leaving them with aging gas infrastructure and less efficient appliances. As a result, when natural gas prices continue to climb, these customers will be faced with a higher energy burden. As California moves toward grid decarbonization, it is incumbent upon utilities to equitably promote utility bill savings and overall emission reductions to ensure that those vulnerable communities are not disproportionately impacted by the energy transition.

The California Air Resources Board’s Priority Populations Map identifies Redding as a lowincome community. Additionally, the federal Climate and Economic Justice Screening Tool designates 12 census tracts in Redding as disadvantaged communities, qualifying the City for federal program support. This underscores the importance of creating equity programs for the most underserved community members as the state continues its push to decarbonize the grid.

In response, REU staff developed the Residential Electrification Assistance Program, an incomeeligible, direct install program. This program removes gas appliances and replaces them with efficient electric measures (fuel-switching or electrification) at no cost to the customer, reducing barriers for our most vulnerable community members.

Furthermore, this program fits within the spending requirements of the Public Benefits funds. Per Public Utilities Code § 385(a)(4), one of the four categories that funding can be spent includes “Services provided for low-income electricity customers, including, but not limited to, energy efficiency services, education, weatherization, and rate discounts.” Due to its unique qualifications, REU pursued a contract with Self Help Home Improvement, Inc. (SHHIP), a 501(c)(3) non-profit organization, that specializes in administering low-income weatherization programs for federal, state, and locally funded programs. SHHIP holds all contractor licenses and certifications to perform the specified scope of work. Furthermore, SHHIP previously implemented REU’s Low Income Energy Efficiency Program (LIEEP) from 2017-2022. LIEEP provided weatherization and energy efficiency upgrades to income-qualified customers at no cost. By partnering with SHHIP, REU was able to help over 2,200 customers through the LIEEP Program from 2017-2022, saving an estimated lifetime energy savings of 21,000,000 kWh and reducing carbon emissions by 4,600 metric tons of carbon dioxideequivalent.

Packet Pg. 919
Report to Redding City Council June 12, 2024
Re: 9.5(b)--Residential Electrification Assistance Program Page 3 Staff submitted a Request for Proposal Bypass to the City’s Purchasing Officer, who has reviewed REU’s justification and affirmed that SHHIP is uniquely trained and qualified to administer public funds for low-income electrification programs.

Staff has worked with SHHIP to develop a contract for the Residential Electrification Assistance Program targeting a three-year term not to exceed $450,000 per year, with the option to extend the Contract in successive one-year increments until all funds are expended. The Program is expected to last four years with an average expenditure of $400,000 per year.

Key components of the Residential Electrification Assistance Program are as follows:
• Leverages other funding sources from other qualifying state and federal programs; • Removes fossil-fuel appliances and replaces them with efficient electric equipment, including heat pump water heaters, heat pump space heating and cooling systems, induction cooktops, and heat pump clothes dryers;
• Includes eligible efficiency upgrades (for example, upgrading electric resistance equipment with heat pumps or induction technologies) to reduce energy consumption of existing electric equipment;
• Supports electric vehicle ownership by providing cost-effective charging solutions (for example, installing circuit splitters, etc.);
• Includes all income-qualified REU customers, including owners and renters residing in single-family and multi-family dwellings; and
• Income requirements align with other programs currently being offered by REU.

SHHIP is prepared to launch the Residential Electrification Assistance Program on July 1, 2024.

Environmental Review
This is not a project defined under the California Environmental Quality Act, and no further action is required.

Council Priority/City Manager Goals
• Government for the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
Attachments
Professional Services Agreement - SHHIP
Packet Pg. 920
Packet Pg. 921
Attachment: Professional Services Agreement - SHHIP (9.5(b)--Residential Electrification Assistance Program) Packet Pg. 922
Attachment: Professional Services Agreement - SHHIP (9.5(b)--Residential Electrification Assistance Program) Packet Pg. 923
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Attachment: Professional Services Agreement - SHHIP (9.5(b)--Residential Electrification Assistance Program) Packet Pg. 943
Attachment: Professional Services Agreement - SHHIP (9.5(b)--Residential Electrification Assistance Program)

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Accept the report regarding a Multi-Court Facilities Complex; and provide direction to staff regarding next steps.

Fiscal Impact
The cost for the full report, including market opportunities analysis, pro forma, economic impact analysis, and feasibility report, plus an estimated $5,000 for travel expenses, is $63,500. The funding came from the City of Redding’s (City) Park Development Fund collected from Park Impact Fees.

Alternative Action
The City Council (Council) could decline to accept the report, or provide staff with alternate direction.

Background/Analysis
At the March 21, 2023, Council meeting, at Mayor Pro Tempore Munns’ suggestion, a consensus of the Council directed the Community Services Director to create a strategy/feasibility study for an eight-court basketball facility similar to the Hardwood Palace in Rocklin for consideration at a future Council meeting. The Council encouraged utilizing community members to assist in the development of the study.

On May 9, 2023, a meeting was convened with several community members active in court sports and construction, which included Rob Barr of Gifford Construction, Allen Knott of K2 Development, Todd Franklin, Michael Gray, Brody Angley, and Louis Volpe. Mayor Pro Tempore Jack Munns, Community Services Advisory Commission (Commission) Chair James MEETING DATE: June 18, 2024
ITEM NO. 9.6(c)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.6(c)--Oral Presentation by The Sports Facilities Companies to consider the market opportunity analysis with a business pro forma, economic impact analysis, and an overall feasibility report for a Multi-Court Facilities Complex in the City of Redding.

Travis Menne, Director of
Community Services
Packet Pg. 944
Report to Redding City Council June 12, 2024
Re: 9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court ComplexPage 2 Finck, former Community Services Director Kim Niemer, former Recreation Superintendent Teresa Urricelqui, and Recreation Supervisor Tori Hughes were also present. There was a strong consensus among the group that the community currently needs more indoor courts. Some of the participants have explored constructing private facilities. Others voiced support for the City to build a facility to support youth sports more broadly.

At the Commission’s September 20, 2023, meeting, they advised staff to contract with The Sports Facilities Companies to conduct a market opportunity analysis with a business pro forma, economic impact analysis, and an overall feasibility report. After several meetings with community stakeholders, staff, local facility operators, school staff, and others, the draft reports are prepared and ready for final acceptance. The resulting documents include two pro forma scopes, based on two different models of operation and size. The first, an eight-court third-party operated model is a large facility that capitalizes on the sports tourism market in the north state.

The second model is a four-court City-run facility that serves local needs with minimal sports tourism.

The included pro forma scopes detail financial projections based on:
• The ideal business model;
• Right-sized program spaces and space requirements;
• Construction and start-up costs based on recent, comparable projects; • Recommended parking;
• Revenue by product/program;
• Direct/variable costs (cost of goods sold);
• Facility and operating expenses;
• Management and staffing model; and
• Utilization projections.

The feasibility report includes market details and the economic impact analysis, which projects the overall citywide impact of the facility on an annual basis. The economic impact is defined as new off-site spending that will occur in the market as a result of tournaments and events held at the facility. This information is used to project economic activity from out-of-town visitors who would not be in the events held at the facility. In the four-court model, the analysis shows a $2.3 million economic impact in the fifth year, while the eight-court shows a $13.5 million economic impact in that same year. The difference between the two models is capacity and the ability to support a locally-based market with minimal sports tourism, and a regional market with moderate to heavy sports tourism.

The reports outline each facility model and their overall pros and cons. Each model meets differing needs of the community and region, and the report examines the markets served with each hypothetical facility. However, the main obstacle presented in each scenario is the overall cost to construct the facility, which ranges from $40 million to $80 million. Overcoming this financial hurdle will be problematic. Unlike the four-court model, the eight-court pro forma asserts that the facility could be operationally sustainable by year five of operation. However, neither model is ever projected to recuperate its initial investment, nor its capital replacement expenditures. Operational and construction subsidies are very common in these projects, where cities use overall economic impact and community livability as the reason to invest in these Packet Pg. 945
Report to Redding City Council June 12, 2024
Re: 9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court ComplexPage 3 facilities. For example, the Lithia Fields in Medford, Oregon are subsidized by $1 million annually, but is said to have generated an economic impact of over $160 million since 2008.

Despite these upfront costs, it is clear that there is a present need in the community for this type of facility. The City standard for gymnasium facilities service level is one gym per each 10,000 residents. Redding is well below this identified standard. These facilities include the privatelyrun Big League Dreams, to which staff has no access but the City does own, and joint use agreements for school facilities, which are only given a 50 percent credit due to their limited access. These two categories combined equates to 2.5 total gyms (three joint-use facilities at 50% plus one full gym), when the City’s standard is at a current population of approximately 94,000 would require about 9.5 publicly available gymnasiums. Therefore, the City’s current level of service equates to one gym per 37,600 residents, meeting about 27 percent of the identified need.

Either proposed model would go a long way to correcting this deficiency. For example, when including the planned recreation facility at Panorama Park, which will provide two full-size basketball courts, the four-court model would bring the total available facilities to 8.5, meeting nearly 90 percent of the City’s service goal.

At their May 8, 2024 meeting, the Commission unanimously voted to recommend acceptance of the report to the Council. The Commission recommended evaluating existing unoccupied privately-owned structures in the City to see if there are any available that can be easily retrofitted. Sports facilities are built to standards that allow for free-span roof trusses and adequate ceiling height for the sports to be played. Most commercial buildings have truss columns that will interfere with the open layout required for sports courts. Staff searched through available commercial properties in Redding and found no buildings with the required square footage for sale, leaving new construction as the only likely viable option.

Environmental Review
While the development of a court facility is a project under the guidelines of the California Environmental Quality Act (CEQA), the feasibility study is not a project under CEQA.

Therefore, no further action is required at this time.

Council Priority/City Manager Goals
• Economic Development – “Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community.”
• Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
• Communication and Transparency – “Improve the quality and quantity of communication with the public and City employees to enhance knowledge and increase transparency to improve public trust.”
Attachments
Previous Staff Report - October 2, 2023
4-Court Five-Year Operating Pro Forma - City Management 8-Court Five-Year Operating Pro Forma - Third Party Management Feasibility Report
Packet Pg. 946

CITY OF REDDING

REPORT TO THE CITY COUNCIL
Recommendation
Authorize and approve the following:
(1) Authorize staff to hire a consultant to prepare a Multi-Court Facility Market Opportunity Analysis Feasibility Report including a pro-forma and economic impact analysis. This would be Option 2 described in the background of this report; and (2) Adopt Resolution adopting and approving the 15th Amendment to Budget Resolution No. 2023-060 appropriating $63,500 for the Market Analysis and Project Cost Report for the Multi-Court Facility from the City of Redding Parks Development Fund.

Fiscal Impact
The cost for the full report, including market opportunities analysis, pro forma, economic impact analysis, and feasibility report, plus an estimated $5,000 for travel expenses, is $63,500. The funding will come from the Park Development Fund collected from park impact fees.

Alternative Action
The City Council (Council) could decline to adopt the resolution which will pause any additional work on this project. Or, the Council could provide staff with alternate direction.

Background
At the March 21, 2023, City Council (Council) meeting, Council Member Munns suggested and a consensus of the Council directed the Community Services Director to create a strategy/feasibility study for an eight-court basketball facility similar to the Hardwood Palace in Rocklin at/or adjacent to Big League Dreams for consideration at a future Council meeting. The Council encouraged utilizing community members to assist in the development of the study.

MEETING DATE: October 2, 2023
ITEM NO. 9.6(a)
FROM:
***APPROVED BY***
[email protected] [email protected]
SUBJECT: 9.6(a)--Consider hiring Consultant and adopting Resolution appropriating funds for a Market Analysis and Project Cost Report for a Multi-Court Facility in the City of Redding.

Kim Niemer, Community
Services Director
Packet Pg. 947 Attachment: Previous Staff Report - October 2, 2023 (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) Report to Redding City Council September 27, 2023
Re: 9.6(a)--Adopt Budget Resolution for Court Project Study Page 2 On May 9, 2023, a meeting was convened with several community members active in court sports and construction, which included Rob Barr of Gifford Construction, Allen Knott of K2 Development, Brody Angley, Todd Franklin, Michael Gray, and Louis Volpe. Council Member Munns, CSAC Chair James Finck, Community Services Director Kim Niemer, Recreation Superintendent Teresa Urricelqui, and Recreation Supervisor Tori Hughes were also present.

There was a strong consensus among the group that the community currently needs more indoor courts. Some of the participants have explored constructing private facilities. Others voiced support for the City to build a facility to support youth sports more broadly.

On July 6, 2023, a subset of the committee toured two indoor court facilities: The Roebbelen Center @ the Grounds (Roebbelen Center) in Roseville and the Hardwood Palace in Rocklin.

The Roebbelen Center was opened in February 2020 in the Placer County Fairgrounds and is operated by Placer Valley Tourism. Hardwood Palace opened in 2008 and is under private ownership, housed in a commercial warehouse complex.

The Roebbelen Center has 49-foot ceilings and 250 feet of column-free spans that provide for a wide variety of activities, including athletic tournaments, trade shows, festivals, and graduations.

The 160,000-square-foot (sf) event center can seat up to 6,000 people, accommodating 12 basketball courts or 24 volleyball courts. The Roebbelen Center also includes a 10,000-sf lobby, flexible meeting rooms, offices, a training room, and a loading dock serving 12,000-sf of storage.

The project cost approximately $34 million. Additional information can be found on their website at: https://www.atthegrounds.com/facilities/roebbelen-center/.

Placer Valley Tourism (PVT) is a Business Improvement District (BID) including the cities of Roseville, Rocklin, and Lincoln. PVT exists to market the three-city region as a tourism destination to generate incremental room nights in hotels in the cities. Each hotel property within the footprint pays a $6.50 assessment into the BID for each paid room night in the respective hotel. This assessment, plus operating revenues, funds the operation of @ The Grounds, a 60- acre campus with nearly a dozen completely unique venue rentals, that includes the Roebbelen Center and other tourism marketing efforts.

The Hardwood Palace is a 70,000-sf basketball and sports facility with eight hardwood courts.

The courts can be converted for volleyball, futsal, pickleball, or other court sports. The facility also includes meeting rooms, a snack bar, and a second-floor viewing area. The facility is privately owned and operated, making financial data unavailable. Additional information can be found on their website at: https://www.hardwoodpalace.com.

After touring both facilities, the group recommended the City engage a consultant to assist with a market opportunity analysis. Staff obtained two proposals from Sports Facilities Companies to complete the next step in evaluating the feasibility of a project. Option 1 is limited to a Market Opportunity Analysis, while Option 2 would expand into construction costs, operational costs, revenue projections, economic impact, etc. Option 3 is to complete Option 1 and then decide to complete the remaining components.

The cost for the Market Opportunities Analysis is $18,000 plus $2,000 in travel expenses, a total of $20,000. The cost of the Full Report contracted at once is $58,500 plus an estimated $5,000 for travel expenses, a total of $63,500. The cost for the Market Opportunities Analysis with a gono-go option to complete the second phase is $75,000. There is a penalty of almost $12,000 for selecting Option 3 over Option 2 due to some redundancy and inefficiency. The resulting reports are the same.

Packet Pg. 948 Attachment: Previous Staff Report - October 2, 2023 (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) Report to Redding City Council September 27, 2023
Re: 9.6(a)--Adopt Budget Resolution for Court Project Study Page 3 Option 1:

Market Opportunity Analysis to expand on the vision, define the parameters of the project, and refine the plan that provides the City with the most likely path forward, including:
• A business model that best meets the City's definitions of success; • Identifying the market the facility will serve, including characteristics of potential customer participation rates for featured activities and the competition the facility will face;
• The programs (spaces and sizes) that best meet the vision capitalize on opportunities and mitigate challenges;
• The cost of constructing the recommended facility; and • The performance of comparable facilities based on national industry benchmarks.

COST: $18,000 plus $2,000 in travel expenses, a total of $20,000.

Option 2:

Option 1 Market Opportunity Analysis plus Pro Forma, Economic Impact Analysis and Feasibility Report.

The Pro Forma will provide the City with detailed financial projections based on:
• The ideal business model;
• Realistic and/or recommended debt-to-equity mix and debt service; • Right-sized program spaces and space requirements;
• Construction and start-up costs based on recent, comparable projects; • Recommended Parking;
• Revenue by product/program;
• Direct/variable costs (Cost of Goods Sold);
• Facility and operating expenses;
• Management and staffing model; and
• Utilization projections.

The Economic Impact Analysis will project the economic impact of the facility on an annual basis. The economic impact is defined as new off-site spending that will occur in the market as a result of tournaments and events held at the facility. This information is used to project economic activity from out-of-town visitors who would not be in the events held at the facility.

The Feasibility Report will include the following sections:
• Executive Summary;
• Market Overview;
• Facility Overview;
• Programs, Products, and Services;
• Financial Performance Overview; and
• Conclusion and Next Steps.

COST: $63,500, including travel expenses.

Packet Pg. 949 Attachment: Previous Staff Report - October 2, 2023 (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) Report to Redding City Council September 27, 2023
Re: 9.6(a)--Adopt Budget Resolution for Court Project Study Page 4 Option 3:

Proceed with Option 1 and then decide to continue with the remainder of the work in Option 2.

COST: $75,000, including travel expenses.

Environmental Review
While the development of a court facility is a project under the guidelines of the California Environmental Quality Act (CEQA), the feasibility study is not a project under CEQA.

Therefore, no further action is required at this time.

Council Priority/City Manager Goals
• Communication and Transparency – “Improve the quality of communication with the public and City employees to enhance knowledge and increase transparency to improve public trust.”
• Government of the 21st Century – “Be relevant and proactive to the opportunities and challenges of today’s residents and workforce. Anticipate the future to make better decisions today.”
• Economic Development – “Facilitate and become a catalyst for economic development in Redding to create jobs, retain current businesses and attract new ones, and encourage investment in the community.”
Attachments
^Resolution
Packet Pg. 950 Attachment: Previous Staff Report - October 2, 2023 (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex)

FIVE-YEAR OPERATING PRO FORMA
CITY MANAGEMENT – 4 COURT
PREPARED FOR: CITY OF REDDING
R EPO R T DELI VER Y D ATE: MAY 2024

IMPROVING COMMUNITIES THROUGH SPORT

THIS PROJECT IS REPRESENTED BY

FOR MORE INFORMATION VISIT
WWW.SPORTSFACILITIES.COMPacket Pg. 951 Attachment: 4-Court Five-Year Operating Pro Forma - City Management (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi- Facility Program Details
2 Facility Program3
Facility Development Costs and Financing4
Capital Costs & Start-Up Expenses - Indoor Athletics Facility5 Capital Costs & Start-Up Expenses - Capital Replacement6 Capital Costs & Start-Up Expenses - Soft Costs of Operations7 Use of Proceeds8
Financial Performance Summary9
Total Revenue and Expenses - 5-Year Detail 10
Total Revenue and Expenses - 20-Year Outlook 11
Economic Impact - 5-Year Detail 13
Economic Impact - 20-Year Outlook 14
Business Unit Analysis 15
Overhead Expenses 32
Facility Expenses 33
Operating Expenses 34
Management Payroll 35
Payroll Taxes and Benefits 36
Table of Contents
1 Packet Pg. 952 Attachment: 4-Court Five-Year Operating Pro Forma - City Management (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi- Facility Program Details
2 DRAFT
Packet Pg. 953 Attachment: 4-Court Five-Year Operating Pro Forma - City Management (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi- Indoor Athletic Facility

L (') W (')
Basketball Courts (actual courts 84' x 50') 4 104 80 8,320 33,280 36.7% Pickleball Courts 12 44 20 0.0%
Volleyball Courts 8 60 30 0.0%
Total Courts Sq. Ft. 33,280 36.7%
1 - - 5,000 5,000 5.5%
1 - - 2,600 2,600 2.9%
1 - - 400 400 0.4%
2 - - 400 800 0.9%
Laser Tag
Arcade
Redemption Store
Virtual Reality/Simulators (Tether VR)
Play Climb/Adventure/Ropes Course 1 - - 2,000 2,000 2.2% Total FEC/Adventure Sq. Ft. 10,800 11.9%
Sports Performance Turf Area 1 120 60 7,200 7,200 7.9%
Sports Performance Training Area 1 40 60 2,400 2,400 2.6% Batting Cages/Pitching Tunnels 4 75 15 0.0%
Total Sports Performance Sq. Ft. 9,600 10.6%
Lobby/Welcome Area 1 - - 1,200 1,200 1.3%
Manager's Offices 4 10 10 100 400 0.4%
Office Area 1 - - 1,500 1,500 1.7%
Kitchen 1 30 30 900 900 1.0%
Café Seating Area 1 40 30 1,200 1,200 1.3%
Flex/Team Rooms 3 60 25 1,500 4,500 5.0%
Ref Rooms 1 15 10 150 150 0.2%
Restrooms 2 35 25 875 1,750 1.9%
Leased Space - Medical 1 - - 5,000 5,000 5.5%
Mezzanine 1 208 16 3,328 3,328 3.7%
Total Flex Space Sq. Ft. 19,928 22.0%
73,608 81.1%
6,861 7.6%
10,291 11.3%
90,760 100%
78,689

1.81 Site Development

L (') W (')
Parking Spaces Total (10'x18')
(20' x 20' Inc. aisles) 273 20 20 400 109,200 69.9%
Setbacks, Green Space, Trails, etc. 46,972 30.1%
156,172 100%

3.59 5.39
FEC/Adventure
Mechanical, Electrical, Storage, etc.

Total Estimated Indoor Athletic Facility SF
10% of P&S SF (Excl. Leased Space)
Common Area, Stairs, Circulation, etc. 15% of P&S SF (Excl. Leased Space) Total Building Acreage
Space Indoor Programming Product/Service Count Dimensions Estimated Building Footprint
Total SF % of Footprint
Over Basketball Courts
Approx.

SF each
Sports
Performance
Required SF for Products and Services
Over Basketball Courts
Over Turf
Total Complex Acreage
Quantity Dimensions Approx.

SF each Total SF
Total Estimated Site Development SF
Total Site Development Acreage
Parking
Spaces
Total
25% Indoor SF, 50% Outdoor
% of Total
Facility Program Courts Flex Space
3 DRAFT
Packet Pg. 954 Attachment: 4-Court Five-Year Operating Pro Forma - City Management (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi- Facility Development Costs
and Financing
4 DRAFT
Packet Pg. 955 Attachment: 4-Court Five-Year Operating Pro Forma - City Management (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi- Capital Costs and Start-up Expenses - Indoor Athletics Facility Details Quantity Unit Cost/Unit Prevailing Wage
Factor
Budgeted
Cost
% of
Total
Building & Land Cost
Real Estate Acquisition TBD 5.39 $0.00 $0 0.0%
Land Cost Total $0 0.0%
Hard Costs
Hard Structure Cost Warm Shell 87,432 SF $221 1.15 $22,220,843 50.0% Hard Structure Cost - Mezzanine/Walking Track Warm Shell 3,328 SF $241 1.15 $920,442 2.1% Finish Out Enhanced Cost of Kitchen Space 900 SF $20 1.15 $20,700 0.0% Site Development Paving, Grading, Utilities, Landscaping, Improvement Allocation for Indoor Facility 5.39 Acre $455,000 1.15 $2,821,190 6.3% Contingency 10.00% $2,598,317 5.8%
Escalation 9.00% $2,572,334 5.8%
Contractor Fee Includes Hard Cost Contingency/Escalation 3.50% $1,090,384 2.5% Hard Cost Total $32,244,210 72.5%
Field and Sport Equipment Cost
Court Area
Hardwood Flooring 33,280 SF $14 1.15 $535,808 1.2%
Basketball Net & Stanchion System Mechanical Roll-Down System 8 Ea. $10,000 1.15 $92,000 0.2% Volleyball Net System Electronic System (Nets, Poles, Padding, Etc.) 8 Ea. $20,000 1.15 $184,000 0.4% Pickleball Net System USAPA Portable Net Systems 12 Ea. $150 1.15 $2,070 0.0% Wall Padding/Netting Average Cost per Court 4 Ea. $6,500 1.15 $29,900 0.1% Scoreboards With Controllers 4 Ea. $8,000 1.15 $36,800 0.1% Court Seats (Participants) 184 Ea. $125 1.15 $26,450 0.1% Bleachers (Spectators) Approx. 50 Capacity per Tip and Roll Set 16 Ea. $3,250 1.15 $59,800 0.1% Curtains (Court) Mechanical Roll-Down System 3 Ea. $20,000 1.15 $69,000 0.2% Vinyl Floor Covering 33,280 SF $1.70 1.15 $65,062 0.1%
Athletic Equipment Sports Equipment (Cones, Balls, Etc.) 1 LS $15,000 $15,000 0.0% FEC
Area Build Out & Equipment 5,000 SF $85 1.15 $488,750 1.1% Area Build Out & Equipment 2,600 SF $169 1.15 $506,506 1.1% Area Build Out & Equipment 400 SF $80 1.15 $36,800 0.1% Area Build Out & Equipment 800 SF $200 1.15 $184,000 0.4% Area Build Out & Equipment 2,000 SF $115 1.15 $264,500 0.6% Laser Tag
Arcade
Redemption Store
Virtual Reality/Simulators (Tether VR)
Play Climb/Adventure/Ropes Course
POS Playcard Area Build Out & Equipment 1 LS $50,000 1.15 $57,500 0.1% Sports Performance Training Area
Sports Performance Synthetic Turf Flooring 7,200 SF $5 1.15 $41,400 0.1% Sports Performance Training Flooring 2,400 SF $12 1.15 $33,120 0.1% Sports Performance Equipment 2,400 SF $50 1.15 $138,000 0.3% Batting Cages/Pitching Tunnels 75' x 15' Tunnel 4 Ea. $15,000 1.15 $69,000 0.2% Pitching Machines 4 Ea. $3,000 1.15 $13,800 0.0%
Athletic Equipment Sports Equipment (Cones, Balls, Etc.) 1 LS $10,000 $10,000 0.0% Shipping 5.00% $147,963 0.3%
Contingency 10.00% $310,723 0.7%
Escalation 9.00% $307,616 0.7%
Field and Sport Equipment Cost Total $3,725,568 8.4%
Furniture, Fixtures and Equipment Cost

FOOD & BEVERAGE
Concessions Equipment 1 LS $150,000 1.15 $172,500 0.4%
Smallwares 1 LS $11,000 1.15 $12,650 0.0%

FURNISHINGS
Furnishings Flex Space 14,928 SF $2 1.15 $34,334 0.1%
Hardware - Security/Access Control Structure Cabling included in Hard Structure Costs 90,760 SF $0.75 1.15 $78,281 0.2% Hardware - POS 1 LS $6,000 1.15 $6,900 0.0%
Hardware - Telecommunications 90,760 SF $1.50 1.15 $156,561 0.4% Software 1 LS $5,000 1.15 $5,750 0.0%

MISCELLANEOUS
Marquee Signage Exterior 1 LS $100,000 1.15 $115,000 0.3% Graphics Package 90,760 SF $2.00 1.15 $208,748 0.5%
Audio/Video 1 LS $150,000 1.15 $172,500 0.4%
Maintenance Equipment 90,760 SF $0.50 $45,380 0.1%
Shipping 5.00% $50,430 0.1%
Contingency 10.00% $105,903 0.2%
Escalation 9.00% $104,844 0.2%
Furniture, Fixtures and Equipment Cost Total $1,269,782 2.9% Soft Costs Construction
Design Fee Civil, Architectural 10.0% $3,115,383 7.0%
Permits/Inspections 0.50% $155,769 0.4%
Additional Services 10.00% $327,115 0.7%
Construction Management/Inspection 10.00% $3,614,918 8.1% Soft Cost Total $7,213,184 16.2%
$44,452,744 100.0%
$490
Total Construction Costs - Indoor Facility
Cost Per Square Foot
5 DRAFT
Packet Pg. 956 Attachment: 4-Court Five-Year Operating Pro Forma - City Management (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi- Annual Cap. Ex Allocation Analysis - Indoor Facility
Budgeted
Cost Useful Life (Years) Annual Cap Ex. Allocation
Building & Land Cost
Real Estate Acquisition $0 N/A
Land Cost Total
Hard Costs
Hard Structure Cost $22,220,843 40 $555,521
Hard Structure Cost - Mezzanine/Walking Track $920,442 40 $23,011 Finish Out $20,700 20 $1,035
Site Development $2,821,190 N/A
Hard Cost Total $579,567
Field and Sport Equipment Cost
Court Area
Hardwood Flooring $535,808 25 $21,432
Basketball Net & Stanchion System $92,000 25 $3,680
Volleyball Net System $184,000 25 $7,360
Pickleball Net System $2,070 5 $414
Wall Padding/Netting $29,900 10 $2,990
Scoreboards $36,800 30 $1,227
Court Seats (Participants) $26,450 10 $2,645
Bleachers (Spectators) $59,800 10 $5,980
Curtains (Court) $69,000 25 $2,760
Vinyl Floor Covering $65,062 10 $6,506
Athletic Equipment $15,000 5 $3,000
FEC
$488,750 10 $48,875
$506,506 10 $50,651
$36,800 25 $1,472
$184,000 10 $18,400
$264,500 10 $26,450
Laser Tag
Arcade
Redemption Store
Virtual Reality/Simulators (Tether VR)
Play Climb/Adventure/Ropes Course
POS Playcard $57,500 10 $5,750
Sports Performance Training Area
Sports Performance Synthetic Turf Flooring $41,400 25 $1,656 Sports Performance Training Flooring $33,120 25 $1,325
Sports Performance Equipment $138,000 5 $27,600
Batting Cages/Pitching Tunnels $69,000 10 $6,900
Pitching Machines $13,800 10 $1,380
Athletic Equipment $10,000 5 $2,000
Field and Sport Equipment Cost Total $250,453
Furniture, Fixtures and Equipment Cost

FOOD & BEVERAGE
Concessions Equipment $172,500 20 $8,625
Smallwares $12,650 20 $633

FURNISHINGS
Furnishings $34,334 10 $3,433
Hardware - Security/Access Control $78,281 10 $7,828
Hardware - POS $6,900 10 $690
Hardware - Telecommunications $156,561 10 $15,656
Software $5,750 10 $575

MISCELLANEOUS
Marquee Signage $115,000 25 $4,600
Graphics Package $208,748 20 $10,437
Audio/Video $172,500 20 $8,625
Maintenance Equipment $45,380 20 $2,269
Furniture, Fixtures and Equipment Cost Total $63,371
TOTAL ANNUAL CAP EX. ALLOCATION $893,391
6 DRAFT
Packet Pg. 957 Attachment: 4-Court Five-Year Operating Pro Forma - City Management (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi- Details Cost/Unit Budgeted Cost % of Total
Soft Costs Operations
Pre-Launch Professional Services Legal, Accounting, Bank, Consulting $0 0.0% Permits and Extensions $0 0.0%
Presentation Materials Renderings, Etc. $0 0.0%
Grand Opening $15,000 3.5%
Marketing Allowance Pre-Opening Marketing Budget $20,000 4.6% Operational Support Services Professional Management Support for Pre-Opening Operations Development $0 0.0%
Pre-Funded Operational Account $141,640 32.6%
Pre-Opening Staff Budget Staffing Cost Pre-Grand Opening $218,497 50.3% Pre-Opening Staff Recruitment $0 0.0%
Cost of Issuance/Financing TBD 0.0%
Interest Reserve TBD 0.0%
Closing Costs TBD 0.0%
Working Capital Reserve TBD 0.0%
Contingency 10.00% $39,514 9.1%
Soft Cost Total $434,651 100.0%
$434,651 100.0%
TBD 100.0%
Total Construction Costs - Soft Cost Operations
Working Capital Reserve
Capital Costs and Start-up Expenses - Soft Costs Operations (City Model) 7 DRAFT
Packet Pg. 958 Attachment: 4-Court Five-Year Operating Pro Forma - City Management (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-

LOW MID HIGH
Land Cost TBD TBD TBD
Hard Cost $26,704,688 $29,671,875 $32,639,063
Field and Sport Equipment Cost $3,076,157 $3,417,953 $3,759,748 Furniture, Fixtures, and Equipment $1,048,444 $1,164,938 $1,281,431 Soft Costs Construction $6,491,866 $7,213,184 $7,934,503 Soft Costs Operations $434,651 $434,651 $434,651
Escalation $2,686,315 $2,984,794 $3,283,274
Working Capital Reserve TBD TBD TBD
Total Funding Requirements $40,442,121 $44,887,395 $49,332,670

USES OF FUNDS
Capital Costs and Start-up Expenses
8 DRAFT
Packet Pg. 959 Attachment: 4-Court Five-Year Operating Pro Forma - City Management (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi- Financial Performance Summary
9 DRAFT
Packet Pg. 960 Attachment: 4-Court Five-Year Operating Pro Forma - City Management (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi- Revenue Year 1 Year 2 Year 3 Year 4 Year 5
Rental Basketball Tournaments $19,200 $24,000 $31,680 $36,960 $38,808 Rental Volleyball Tournaments $15,120 $15,120 $19,958 $26,611 $27,942 Court Rental Events $9,600 $14,400 $15,840 $15,840 $16,632 Basketball $10,575 $12,540 $15,667 $17,121 $18,746
*Volleyball $0 $0 $0 $0 $0
Court Rentals $69,384 $71,466 $77,290 $79,609 $86,097
FEC/Adventure $161,160 $181,088 $200,104 $215,660 $228,115 Fitness and Training $54,069 $64,882 $74,939 $78,686 $82,620 Birthday Parties $14,400 $17,280 $19,958 $20,956 $23,104 Youth Programming $77,600 $85,360 $98,591 $103,520 $114,131 Facility Fees $23,040 $28,160 $32,000 $39,680 $39,680
Food & Beverage $83,392 $98,530 $107,548 $122,349 $122,944 Hotel Rebates $0 $0 $0 $0 $0
Retail $6,017 $6,837 $7,584 $8,649 $8,727
Tenant Revenue $125,000 $125,000 $125,000 $125,000 $125,000 Sponsorship/Advertisement Revenue $82,500 $82,500 $99,000 $99,000 $110,000 Total Revenue $751,056 $827,163 $925,160 $989,641 $1,042,547 Cost of Goods Sold Year 1 Year 2 Year 3 Year 4 Year 5
**Rental Basketball Tournaments $0 $0 $0 $0 $0
**Rental Volleyball Tournaments $0 $0 $0 $0 $0
**Court Rental Events $0 $0 $0 $0 $0
**Basketball $5,040 $5,977 $6,888 $7,527 $7,912
**Volleyball $0 $0 $0 $0 $0
**Court Rentals $0 $0 $0 $0 $0
**FEC/Adventure $32,232 $36,218 $40,021 $43,132 $45,623 **Fitness and Training $6,488 $7,786 $8,993 $9,442 $9,914 **Birthday Parties $2,736 $3,283 $3,792 $3,982 $4,390
**Youth Programming $5,748 $6,323 $7,132 $7,488 $8,162
Facility Fees $0 $0 $0 $0 $0
**Food & Beverage $25,018 $29,559 $32,264 $36,705 $36,883 Hotel Rebates $0 $0 $0 $0 $0
**Retail $3,309 $3,760 $4,171 $4,757 $4,800
Tenant Expense $0 $0 $0 $0 $0
Sponsorship/Advertisment Expense $20,625 $20,625 $24,750 $24,750 $27,500 Total Cost of Goods Sold $101,196 $113,531 $128,011 $137,783 $145,184 Gross Margin $649,860 $713,633 $797,149 $851,858 $897,363 % of Revenue 87% 86% 86% 86% 86%
Facility Expenses $297,646 $300,244 $305,339 $310,821 $315,411 Operating Expense $77,653 $76,018 $80,047 $83,406 $85,874 Management Payroll $474,542 $493,524 $513,265 $533,795 $555,147 Payroll Taxes/Benefits/Bonus $0 $0 $0 $0 $0
Total Operating Expenses $849,840 $869,786 $898,651 $928,022 $956,432 EBITDA ($199,980) ($156,154) ($101,502) ($76,165) ($59,069) % of Revenue -27% -19% -11% -8% -6%
Capital Replacement ($893,391) ($893,391) ($893,391) ($893,391) ($893,391) Total Annual Cost to City ($1,093,371) ($1,049,545) ($994,893) ($969,556) ($952,461) *Existing volleyball programs are reflected in court rental time as non-revenue utilization at the new sports facility.

Therefore, there is currently no revenue associated with the volleyball business unit.

Total Revenue & Expenses - 5-Year Detail
**Cost of Goods staffing for these revenue streams is reflected in the management payroll section as Recreation Leaders/Recreation Instructors budgeting
10 DRAFT
Packet Pg. 961 Attachment: 4-Court Five-Year Operating Pro Forma - City Management (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi- Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 10-Year Total Total Revenue $751,056 $827,163 $925,160 $989,641 $1,042,547 $1,073,823 $1,106,038 $1,139,219 $1,173,395 $1,208,597 $10,236,640 Total Cost of Goods Sold $101,196 $113,531 $128,011 $137,783 $145,184 $149,540 $154,026 $158,647 $163,406 $168,308 $1,419,632 Gross Margin $649,860 $713,633 $797,149 $851,858 $897,363 $924,283 $952,012 $980,572 $1,009,989 $1,040,289 $8,817,008 % of Revenue 87% 86% 86% 86% 86% 86% 86% 86% 86% 86% 86% Total Operating Expenses $849,840 $869,786 $898,651 $928,022 $956,432 $970,778 $985,340 $1,000,120 $1,015,122 $1,030,349 $9,504,442 EBITDA ($199,980) ($156,154) ($101,502) ($76,165) ($59,069) ($46,495) ($33,328) ($19,548) ($5,133) $9,940 ($687,434) % of Revenue -27% -19% -11% -8% -6% -4% -3% -2% 0% 1% -7% Capital Replacement ($893,391) ($893,391) ($893,391) ($893,391) ($893,391) ($893,391) ($893,391) ($893,391) ($893,391) ($893,391) ($8,933,912) Total Annual Cost to City ($1,093,371) ($1,049,545) ($994,893) ($969,556) ($952,461) ($939,886) ($926,719) ($912,939) ($898,524) ($883,451) ($9,621,346) Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 20-Year Total Total Revenue $1,232,769 $1,257,425 $1,282,573 $1,308,225 $1,334,389 $1,347,733 $1,361,210 $1,374,822 $1,388,571 $1,402,456 $23,526,813 Total Cost of Goods Sold $171,674 $175,108 $178,610 $182,182 $185,826 $187,684 $189,561 $191,457 $193,371 $195,305 $3,270,410 Gross Margin $1,061,095 $1,082,317 $1,103,963 $1,126,042 $1,148,563 $1,160,049 $1,171,649 $1,183,366 $1,195,200 $1,207,152 $20,256,403 % of Revenue 86% 86% 86% 86% 86% 86% 86% 86% 86% 86% 86% Total Operating Expenses $1,045,804 $1,061,491 $1,077,414 $1,093,575 $1,109,978 $1,126,628 $1,143,527 $1,160,680 $1,178,091 $1,195,762 $20,697,392 EBITDA $15,291 $20,826 $26,550 $32,468 $38,585 $33,421 $28,122 $22,686 $17,109 $11,390 ($440,988) % of Revenue 1% 2% 2% 2% 3% 2% 2% 2% 1% 1% -2%
Capital Replacement ($893,391) ($893,391) ($893,391) ($893,391) ($893,391) ($893,391) ($893,391) ($893,391) ($893,391) ($893,391) ($17,867,825) Total Annual Cost to City ($878,100) ($872,566) ($866,842) ($860,924) ($854,806) ($859,970) ($865,269) ($870,706) ($876,282) ($882,002) ($18,308,813) Total Revenue and Expenses - Year 1-10
Total Revenue and Expenses - Year 11-20
Total Revenue & Expenses - 20-Year Outlook
11 DRAFT
Packet Pg. 962 Attachment: 4-Court Five-Year Operating Pro Forma - City Management (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi- Economic Impact
12 DRAFT
Packet Pg. 963 Attachment: 4-Court Five-Year Operating Pro Forma - City Management (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi- Year 1 Year 2 Year 3 Year 4 Year 5
Basketball Tournaments 4 5 6 7 7
Volleyball Tournaments 4 4 5 6 6
Other Tournaments/Events 3 4 4 4 4
Total Events Per Year 11 13 15 17 17
Year 1 Year 2 Year 3 Year 4 Year 5
Lodging/Accommodations $35.67 $36.20 $36.74 $37.30 $37.86 Dining/Groceries $44.25 $44.91 $45.59 $46.27 $46.97
Transportation $7.52 $7.64 $7.75 $7.87 $7.98
Entertainment/Attractions $3.54 $3.59 $3.65 $3.70 $3.76 Retail $20.80 $21.11 $21.43 $21.75 $22.07
Miscellaneous $11.95 $12.13 $12.31 $12.49 $12.68
Total $123.72 $125.58 $127.46 $129.38 $131.32
Year 1 Year 2 Year 3 Year 4 Year 5
Non-Local Days in Market - Overnight 9,840 12,648 14,028 17,700 17,700 Room Nights 2,080 2,704 2,984 3,800 3,800
Year 1 Year 2 Year 3 Year 4 Year 5
Total Direct Spending - Overnight $1,217,446 $1,588,336 $1,788,061 $2,289,950 $2,324,299 Total Indirect Spending $0 $0 $0 $0 $0
Total Economic Impact $1,217,446 $1,588,336 $1,788,061 $2,289,950 $2,324,299 Year 1 Year 2 Year 3 Year 4 Year 5
Hotel/Motel Tax (10% on Lodging/Accommodations) $22,256 $29,367 $32,894 $42,517 $43,155 Special District Tax (2% on Lodging/Accommodations) $4,451 $5,873 $6,579 $8,503 $8,631 Total Tax Revenue Generation $26,707 $35,240 $39,473 $51,021 $51,786 Tax Revenue Generation
Economic Impact
Economic Impact
Number of Events Per Year
Per Person Spending By Category
Economic Impact Drivers
13 DRAFT
Packet Pg. 964 Attachment: 4-Court Five-Year Operating Pro Forma - City Management (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi- Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Non-Local Days in Market 9,840 12,648 14,028 17,700 17,700 17,877 18,056 18,236 18,419 18,603 Room Nights 2,080 2,704 2,984 3,800 3,800 3,838 3,876 3,915 3,954 3,994 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Overnight $123.72 $125.58 $127.46 $129.38 $131.32 $133.29 $135.29 $137.31 $139.37 $141.46 Total Economic Impact $1,217,446 $1,588,336 $1,788,061 $2,289,950 $2,324,299 $2,382,755 $2,442,681 $2,504,115 $2,567,093 $2,631,656 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Non-Local Days in Market 18,789 18,977 19,167 19,358 19,552 19,747 19,945 20,144 20,346 20,549 Room Nights 4,034 4,074 4,115 4,156 4,198 4,240 4,282 4,325 4,368 4,412 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Overnight $143.59 $145.74 $147.93 $150.15 $152.40 $154.68 $157.00 $159.36 $161.75 $164.18 Total Economic Impact $2,697,842 $2,765,692 $2,835,250 $2,906,556 $2,979,656 $3,054,594 $3,131,417 $3,210,173 $3,290,908 $3,373,675 Economic Impact: Years 11-20
Economic Impact Drivers: Years 1-10
Economic Impact: Years 1-10
Economic Impact Drivers: Years 11-20
Economic Impact - 20-Year Outlook
14 DRAFT
Packet Pg. 965 Attachment: 4-Court Five-Year Operating Pro Forma - City Management (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi- Business Unit Analysis
15 DRAFT
Packet Pg. 966 Attachment: 4-Court Five-Year Operating Pro Forma - City Management (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi- Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Small Tournament - 4 Courts, 2 Days
Team Information 10 Players per Team 4 5 6 7 7 32
Spectators 2 Spectators per Player 640
Rental Fees Daily Rental Rate $600 $600 $660 $660 $693 4 5 6 7 7 8 $19,200 $24,000 $31,680 $36,960 $38,808 Non-Capacity Growth Rate 1.00 1.10 1.00 1.05 4 5 6 7 7
Capacity growth rate 1.10 1.10 1.10 1.10 4 5 6 7 7
$19,200 $24,000 $31,680 $36,960 $38,808
Cost of Goods Sold Year 1 Year 2 Year 3 Year 4 Year 5
*Tournament Attendant Staff 10% Gross Revenue (replaced by Management Team Recreation Leaders) $0 $0 $0 $0 $0 Trainer Fees Pass Through $0 $0 $0 $0 $0
$0 $0 $0 $0 $0
Net Revenue $19,200 $24,000 $31,680 $36,960 $38,808
Year 4
Rental Basketball Tournament Revenue & Expenses
Year 5
Total Revenue
Total Cost of Goods Sold
Revenue Management Assumption
Rental Fees Number of Events per Year Event
Details Year 1 Year 2 Year 3
Management Assumption
16 DRAFT
Packet Pg. 967 Attachment: 4-Court Five-Year Operating Pro Forma - City Management (9.6(c)--Oral Presentation by The Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Small Tournament - 8 Courts, 1 Days
Team Information 10 Players per Team 3 3 4 4 4 32
Spectators 2 Spectators per Player 640
Rental Fees Daily Rental Rate $378 $378 $416 $416 $437 3 3 4 4 4 8 $9,072 $9,072 $13,306 $13,306 $13,971 Medium Tournament - 8 Courts, 2 Days
Team Information 10 Players per Team 1 1 1 2 2 64
Spectators 2 Spectators per Player 1280
Rental Fees Daily Rental Rate $378 $378 $416 $416 $437 1 1 1 2 2 16 $6,048 $6,048 $6,653 $13,306 $13,971 Non-Capacity Growth Rate 1.00 1.10 1.00 1.05 4 4 5 6 6
Capacity growth rate 1.10 1.10 1.10 1.10 4 4 5 6 6
$15,120 $15,120 $19,958 $26,611 $27,942
Cost of Goods Sold Year 1 Year 2 Year 3 Year 4 Year 5
*Tournament Attendant Staff 10% Gross Revenue (replaced by Management Team Recreation Leaders) $0 $0 $0 $0 $0 Tournament Trainers Pass Through $0 $0 $0 $0 $0
$0 $0 $0 $0 $0
$15,120 $15,120 $19,958 $26,611 $27,942
Total Cost of Goods Sold
Net Revenue
Management Assumption
Total Revenue
Rental Volleyball Tournaments Revenue & Expenses
Revenue Management Assumption Rental Fees Number of Events per Year Event Details Year 1 Year 2 Year 3 Year 4 Year 5
17 DRAFT
Packet Pg. 968 Attachment: 4-Court Five-Year Operating Pro Forma - City Management (9.6(c)--Oral Presentation by The Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Other Court Sport Rental - 1 Day Event
Rental Fee Per Day $2,400 $2,400 $2,640 $2,640 $2,772 2 2 2 2 2 1 $4,800 $4,800 $5,280 $5,280 $5,544 Other Court Sport Rental - 2 Day Event
Rental Fee Per Day $2,400 $2,400 $2,640 $2,640 $2,772 1 2 2 2 2 2 $4,800 $9,600 $10,560 $10,560 $11,088 Non-Capacity Growth Rate 1.00 1.10 1.00 1.05
Capacity growth rate 1.10 1.10 1.10 1.10
$9,600 $14,400 $15,840 $15,840 $16,632
Cost of Goods Sold Year 1 Year 2 Year 3 Year 4 Year 5
*Event Attendant Expense 10% Gross Revenue (replaced by Management Team Recreation Leaders) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$9,600 $14,400 $15,840 $15,840 $16,632
Total Revenue
Total Cost of Goods Sold
Net Revenue
Management Assumption
Indoor Court Rental Events Revenue & Expenses
Revenue Management Assumption
Rental Fees Number of Events per Year Event
Details Year 1 Year 2 Year 3 Year 4 Year 5
18 DRAFT
Packet Pg. 969 Attachment: 4-Court Five-Year Operating Pro Forma - City Management (9.6(c)--Oral Presentation by The Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Instructional Clinics $/Session $100 $100 $110 $110 $116 - - - - - 5 $0 $0 $0 $0 $0 Instructional Camps (Full Days) $/Week $200 $200 $220 $220 $231 - - - - - 5 $0 $0 $0 $0 $0 Individual Instruction $/Hour $70 $70 $77 $77 $81 - - - - - 12 $0 $0 $0 $0 $0 Drop-in/Other Income $/Session $5 $5 $6 $6 $6 15 18 20 22 23 12 $900 $1,067 $1,333 $1,457 $1,595 Adult League
Sept. - Oct. League $/Team $450 $450 $495 $495 $520 - - - - - 1 $0 $0 $0 $0 $0 Nov. - Dec. League $/Team $450 $450 $495 $495 $520 - - - - - 1 $0 $0 $0 $0 $0 Jan. - Feb. League $/Team $450 $450 $495 $495 $520 6 7 7 8 8 1 $2,475 $2,935 $3,667 $4,007 $4,387 Mar. - Apr. League $/Team $450 $450 $495 $495 $520 8 9 10 11 12 1 $3,375 $4,002 $5,000 $5,464 $5,983 May - June League $/Team $450 $450 $495 $495 $520 4 5 6 6 7 1 $1,913 $2,268 $2,833 $3,096 $3,390 July - Aug. League $/Team $450 $450 $495 $495 $520 4 5 6 6 7 1 $1,913 $2,268 $2,833 $3,096 $3,390

1.00 1.10 1.00 1.05 1.19 1.14 1.09 1.04

1.10 1.10 1.10 1.10 1.00 1.00 1.00 1.00
$10,575 $12,540 $15,667 $17,121 $18,746
Cost of Goods Sold Year 1 Year 2 Year 3 Year 4 Year 5
Basketball Director Responsibility of Management Team $0 $0 $0 $0 $0 *Basketball Staff 5% Gross Revenue (replaced by Management Team Recreation Leaders) $0 $0 $0 $0 $0 Referee Fees Avg. $50/Game $4,300 $5,099 $5,791 $6,329 $6,600 *Instructor Fees 25% Instructor Revenue $0 $0 $0 $0 $0
Equipment and Supplies 5% Gross Revenue $529 $627 $783 $856 $937 Awards 2% Gross Revenue $212 $251 $313 $342 $375
$5,040 $5,977 $6,888 $7,527 $7,912
$5,535 $6,563 $8,779 $9,594 $10,834
Pricing Notes Clinics Camps Individual Instruction
Turtle Bay School Reign BB Clinic Reign Basketball Camp Reign Basketball Individual Skill Development Redding, CA Redding, CA Redding, CA
$75 / 3 days $125 / 5 days $35 / 45 minutes
Stockton Kings JR Kings Dribble, Shoot, and Score Clinic NBC Basketball Camp at Simpson University Precision Basketball Academy 1-1 Session Sacramento, CA Redding, CA Redding, CA
$85 / 1 - 2 hour session $695 / 4-12 hour days $100 / 1 hour Hardwood Palace Sunday Skills Clinic Enterprise HS/Shasta HS Todd Franklin Basketball Camp Sacramento Skills Academy Private Training Rocklin, CA Redding, CA Sacramento, CA
$100 / 3 - 2 hour sessions $140 / 4 days $350 / 5 - 1 hour sessions Precision Basketball Academy Shasta College - Enjoy the Journey Baasketball Camp Redding, CA Redding, CA
$85 / 2 - 2 hour sessions $135 / 4 half days
Leagues Club Team
Anderson Rec Basketball League Warlords Club Basketball Lompoc, CA Redding, CA
$45 / 8 weeks, price per player $175 / 1 year
Redding Youth Basketball SolCal Delta Team
Redding, CA Redding, CA
$100 / 8 weeks $670 / 2 seasons
CrossPoint Church Basketball League SolCal Elite Travel Team Redding, CA Redding, CA
$100 / 10 weeks $900 / 4 months
Reign Basketball League
Redding, CA
$400 / 1 season, price per team
Oroville YMCA Coed Youth Basketball
Oroville, CA
$108 / 9 weeks
Basketball Revenue & Expenses
Program Fees Number of Registrations Sellable
Sessions Revenue Management Assumption Year 1 Year 2 Year 3 Year 4 Year 5 Non-Capacity Growth Rate
Capacity growth rate
Total Revenue
Total Cost of Goods Sold
Net Revenue
Management Assumption
SFA researched and analyzed the prices for comparable facilities and programs within the Redding, CA market. The prices reflected above are based on the analysis and either in line or slightly above current year market rates. SFA also took into consideration the goals of the City of Redding as well as demographic and socioeconomic factors of the community. 19 DRAFT
Packet Pg. 970 Attachment: 4-Court Five-Year Operating Pro Forma - City Management (9.6(c)--Oral Presentation by The Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Instructional Clinics $/Session $175 $175 $193 $193 $202 - - - - - 5 $0 $0 $0 $0 $0 Instructional Camps (Full Days) $/Week $200 $200 $220 $220 $231 - - - - - 5 $0 $0 $0 $0 $0 Individual Instruction $/Hour $75 $75 $83 $83 $87 - - - - - 12 $0 $0 $0 $0 $0 Drop-in/Other Income $/Session $5 $5 $6 $6 $6 - - - - - 12 $0 $0 $0 $0 $0 League
Sept. - Oct. League $/Team $350 $350 $385 $385 $404 - - - - - 1 $0 $0 $0 $0 $0 Nov. - Dec. League $/Team $350 $350 $385 $385 $404 - - - - - 1 $0 $0 $0 $0 $0 Jan. - Feb. League $/Team $350 $350 $385 $385 $404 - - - - - 1 $0 $0 $0 $0 $0 Mar. - Apr. League $/Team $350 $350 $385 $385 $404 - - - - - 1 $0 $0 $0 $0 $0 May - June League $/Team $350 $350 $385 $385 $404 - - - - - 1 $0 $0 $0 $0 $0 July - Aug. League $/Team $350 $350 $385 $385 $404 - - - - - 1 $0 $0 $0 $0 $0

1.00 1.10 1.00 1.05 1.18 1.13 1.09 1.04

1.10 1.10 1.10 1.10 1.00 1.00 1.00 1.00
$0 $0 $0 $0 $0
Cost of Goods Sold Year 1 Year 2 Year 3 Year 4 Year 5
Volleyball Director Responsibility of Management Team $0 $0 $0 $0 $0 *Volleyball Staff 5% Gross Revenue (replaced by Management Team Recreation Leaders) $0 $0 $0 $0 $0 Referee Fees Avg. $20/Game $0 $0 $0 $0 $0
*Instructor Fees 25% Instructor Revenue $0 $0 $0 $0 $0
Equipment and Supplies 5% Gross Revenue $0 $0 $0 $0 $0
Awards 2% Gross Revenue $0 $0 $0 $0 $0
$0 $0 $0 $0 $0
$0 $0 $0 $0 $0
Pricing Notes Clinics Camps Individual Instruction Leagues NorCal VB Club Shasta College North State VB NorCal VB Club Private Lessons City of Redding Youth VB League Napa, CA Redding, CA Livermore, CA Redding, CA
$40 / 1 1.5 hour session $99 / 3 days $75 / 1 hour $95 / 10 weeks Liberty Christian School Indoor Clinic Enterprise Hornets VB Camp House of Hustle Private Lesson City of Redding Adult VB League Fairfield, CA Redding, CA Hayward, CA Redding, CA
$300 / 4 - 2 hour sessions $60 / 3 half days $285 / 1 session (including gym rental) $160 / 12 weeks Napa Valley Indoor VB Club NorCal VB All Skills Camp Bay Area VB Club NorCal VB Fall Ball Napa, CA Livermore, CA Concord, CA Livermore, CA
$35 / 1 session $295 / 4 half days $65 / 1 hour $590 / 10 weeks Solano College Summer VB Clinic NorCal VB Jrs Summer Camp 2024 Quijote Sports AAU League Fairfield, CA Livermore, CA Redding, CA
$100 / 3 - 2.5 hour sessions $215 / 4 - 2 hour days $1400 / 5 tournaments Legacy Gym VB Summer Camp Redding Adult VB - 6 person league Valencia, CA Redding, CA
$245 / 4 - 2 hour days $200 / 8 weeks
Club Teams
North State Volleyball Academy Club
Redding, CA
$2,000 / 7 months
OVA VB 2024 Premier Teams
Sacramento, CA
$1,995 8 tounaments
Shasta VB Club Team - Local Team
Redding, CA
$475 / 5 tournaments
Non-Capacity Growth Rate
Capacity growth rate
Volleyball Revenue & Expenses
Program Fees Number of Registrations Sellable
Sessions Revenue Management Assumption Year 1 Year 2 Year 3 Year 4 Year 5 Net Revenue
Total Cost of Goods Sold
Total Revenue
Management Assumption
Existing volleyball programs are reflected in court rental time as non-revenue utilization at the new sports facility.Therefore, there is currently no revenue associated with the volleyball business unit.

SFA researched and analyzed the prices for comparable facilities and programs within the Redding, CA market. The prices reflected above are based on the analysis and either in line or slightly above current year market rates.

SFA also took into consideration the goals of the City of Redding as well as demographic and socioeconomic factors of the community. 20 DRAFT
Packet Pg. 971 Attachment: 4-Court Five-Year Operating Pro Forma - City Management (9.6(c)--Oral Presentation by The Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Small Court Rentals
Sept. - Oct. $/Hour $42 $42 $44 $44 $46 84 87 89 92 95 1 $3,528 $3,634 $3,930 $4,048 $4,378 Nov. - Dec. $/Hour $42 $42 $44 $44 $46 84 87 89 92 95 1 $3,528 $3,634 $3,930 $4,048 $4,378 Jan. - Feb. $/Hour $42 $42 $44 $44 $46 132 136 140 144 149 1 $5,544 $5,710 $6,176 $6,361 $6,879 Mar. - Apr. $/Hour $42 $42 $44 $44 $46 132 136 140 144 149 1 $5,544 $5,710 $6,176 $6,361 $6,879 May - June $/Hour $42 $42 $44 $44 $46 - - - - - 1 $0 $0 $0 $0 $0 July - Aug $/Hour $42 $42 $44 $44 $46 - - - - - 1 $0 $0 $0 $0 $0 Parks & Recreation - Volleyball
Sept. - Oct. $/Hour $0 $0 $0 $0 $0 480 494 509 525 540 1 $0 $0 $0 $0 $0 Nov. - Dec. $/Hour $0 $0 $0 $0 $0 120 124 127 131 135 1 $0 $0 $0 $0 $0 Jan. - Feb. $/Hour $0 $0 $0 $0 $0 160 165 170 175 180 1 $0 $0 $0 $0 $0 Mar. - Apr. $/Hour $0 $0 $0 $0 $0 500 515 530 546 563 1 $0 $0 $0 $0 $0 May - June $/Hour $0 $0 $0 $0 $0 - - - - - 1 $0 $0 $0 $0 $0 July - Aug $/Hour $0 $0 $0 $0 $0 - - - - - 1 $0 $0 $0 $0 $0 Large Court Rentals
Sept. - Oct. $/Hour $70 $70 $74 $74 $77 42 43 45 46 47 1 $2,940 $3,028 $3,275 $3,373 $3,648 Nov. - Dec. $/Hour $70 $70 $74 $74 $77 42 43 45 46 47 1 $2,940 $3,028 $3,275 $3,373 $3,648 Jan. - Feb. $/Hour $70 $70 $74 $74 $77 198 204 210 216 223 1 $13,860 $14,276 $15,439 $15,902 $17,199 Mar. - Apr. $/Hour $70 $70 $74 $74 $77 246 253 261 269 277 1 $17,220 $17,737 $19,182 $19,758 $21,368 May - June $/Hour $70 $70 $74 $74 $77 102 105 108 111 115 1 $7,140 $7,354 $7,954 $8,192 $8,860 July - Aug $/Hour $70 $70 $74 $74 $77 102 105 108 111 115 1 $7,140 $7,354 $7,954 $8,192 $8,860 Parks & Recreation - Youth Basketball
Sept. - Oct. $/Hour $0 $0 $0 $0 $0 - - - - - 1 $0 $0 $0 $0 $0 Nov. - Dec. $/Hour $0 $0 $0 $0 $0 675 695 716 738 760 1 $0 $0 $0 $0 $0 Jan. - Feb. $/Hour $0 $0 $0 $0 $0 1,200 1,236 1,273 1,311 1,351 1 $0 $0 $0 $0 $0 Mar. - Apr. $/Hour $0 $0 $0 $0 $0 - - - - - 1 $0 $0 $0 $0 $0 May - June $/Hour $0 $0 $0 $0 $0 - - - - - 1 $0 $0 $0 $0 $0 July - Aug $/Hour $0 $0 $0 $0 $0 - - - - - 1 $0 $0 $0 $0 $0

1.00 1.05 1.00 1.05 1.03 1.03 1.03 1.03
Capacity growth rate 1.10 1.10 1.10 1.10 1.00 1.00 1.00 1.00 $69,384 $71,466 $77,290 $79,609 $86,097
Cost of Goods Sold Year 1 Year 2 Year 3 Year 4 Year 5
*Supervision/Maintenance Staff 5% Gross Revenue (replaced by Management Team Recreation Leaders) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
$69,384 $71,466 $77,290 $79,609 $86,097
Pricing Notes Court Rental Fees
Shasta Athletic Club Hardwood Palace - Single Court
Redding, CA Rocklin, CA
$140 / 1 day $65/hour/court
Sequoia School Hardwood Palace - Mutli Court
Redding, CA Rocklin, CA
$150 / 2 hours $55/hour/court
Foothill High School - VB Court Rental Anderson Recreation Center - Private Half Day Rental Redding, CA Lompoc, CA
$25 / hour $700 / 6 hours
Red Bluff VB Court Rental Anderson Recreation Center - Private Full Day Rental Red Bluff, CA Lompoc, CA
$30 / hour $1400 / 12 hours
Red Bluff VB Court Rental - Tournament CrossPoint Church Red Bluff, CA Redding, CA
$1,000 / day $75-$100/hour
Revenue Year 3 Year 4 Year 5 Management
Assumption
Rental Fees Number of Rentals Sellable
Sessions Year 1 Year 2
SFA researched and analyzed the prices for comparable facilities and programs within the Redding, CA market. The prices reflected above are based on the analysis and either in line or slightly above current year market rates. SFA also took into consideration the goals of the City of Redding as well as demographic and socioeconomic factors of the community.

Non-Capacity Growth Rate
Management Assumption
Court Rentals Revenue & Expenses
Total Revenue
Total Cost of Goods Sold
Net Revenue
21 DRAFT
Packet Pg. 972 Attachment: 4-Court Five-Year Operating Pro Forma - City Management (9.6(c)--Oral Presentation by The Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Virtual Reality
Per Cap Spend $2.05 $2.05 $2.15 $2.15 $2.26 8,929 10,033 10,558 11,379 11,463 1 $18,304 $20,567 $22,727 $24,493 $25,908 Laser Tag
Per Cap Spend $4.00 $4.00 $4.20 $4.20 $4.41 8,929 10,033 10,558 11,379 11,463 1 $35,714 $40,130 $44,344 $47,792 $50,552 Arcade
Per Cap Spend $10.00 $10.00 $10.50 $10.50 $11.03 8,929 10,033 10,558 11,379 11,463 1 $89,285 $100,326 $110,861 $119,479 $126,379 Play Climb/Adventure/Ropes Course
Per Cap Spend $2.00 $2.00 $2.10 $2.10 $2.21 8,929 10,033 10,558 11,379 11,463 1 $17,857 $20,065 $22,172 $23,896 $25,276 Non-Capacity Growth Rate 1.00 1.05 1.00 1.05 1.10 1.03 1.03 1.01 Capacity growth rate 1.10 1.10 1.10 1.10 1.00 1.00 1.00 1.00 $161,160 $181,088 $200,104 $215,660 $228,115
Cost of Goods Sold Year 1 Year 2 Year 3 Year 4 Year 5
FEC/Adventure Area Management Responsibility of Management Team $0 $0 $0 $0 $0 *FEC/Adventure Area Staff 15% Gross Revenue (replaced by Management Team Recreation Leaders) $0 $0 $0 $0 $0 Maintenance & Repairs 10% Gross Revenue $16,116 $18,109 $20,010 $21,566 $22,811 Equipment & Supplies 10% Gross Revenue $16,116 $18,109 $20,010 $21,566 $22,811 $32,232 $36,218 $40,021 $43,132 $45,623
$128,928 $144,871 $160,084 $172,528 $182,492
Total Revenue
Total Cost of Goods Sold
Net Revenue
Management Assumption
FEC/Adventure Area Revenue & Expenses
Revenue Per Cap Spend Number of Visitors Sellable
Sessions Management Assumption Year 1 Year 2 Year 3 Year 4 Year 5 22 DRAFT
Packet Pg. 973 Attachment: 4-Court Five-Year Operating Pro Forma - City Management (9.6(c)--Oral Presentation by The Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Sessions
Sports Performance Training - Ind. $/Session $65 $65 $72 $72 $75 46 55 58 61 61 12 $36,005 $43,206 $49,903 $52,398 $55,018 Sports Performance Training - Team $/Session $150 $150 $165 $165 $173 7 8 9 9 9 12 $12,463 $14,956 $17,274 $18,138 $19,045 Sports Performance Clinic $/Session $175 $175 $193 $193 $202 8 10 10 11 11 4 $5,600 $6,720 $7,762 $8,150 $8,557 Non-Capacity Growth Rate 1.00 1.10 1.00 1.05 1.20 1.05 1.05 1.00 Capacity growth rate 1.10 1.10 1.10 1.10 1.00 1.00 1.00 1.00 $54,069 $64,882 $74,939 $78,686 $82,620
Cost of Goods Sold Year 1 Year 2 Year 3 Year 4 Year 5
Fitness & Training Management 10% Gross Revenue $5,407 $6,488 $7,494 $7,869 $8,262 *Fitness & Training Instructors 50% Personal Training, 25% Group Training (replaced by Management Team Recreation Instructors) $0 $0 $0 $0 $0 Equipment and Supplies 2% Gross Revenue $1,081 $1,298 $1,499 $1,574 $1,652 $6,488 $7,786 $8,993 $9,442 $9,914
$47,580 $57,096 $65,946 $69,244 $72,706
Pricing Notes Sports Performance PT Sports Performance Individual Training Sports Performance Team Training Shasta Orthopedic PT Pro Athletic SP - Speed & Agility Training Shasta Orthopedic Redding, CA Redding, CA Redding, CA
$35 / 1 hour $125 / 4 hours $25 / person / hour
Shasta Orthopedic - 16 session package Pro Athletic SP - Performance Strength & Conditioning Fleet Feet Redding Speed Training Camp Redding, CA Redding, CA Redding, CA
$30 / 1 hour $325 / 12 hours $450 / 8 hours - 10 people, 2 sessions for 4 weeks Vance Training
Redding, CA
$89 / 1 hour
Fitness & Training Revenue & Expenses
Revenue Management Assumption
Program Fees Number of Registrations Sellable
Sessions Year 1 Year 2 Year 3 Year 4 Year 5
SFA researched and analyzed the prices for comparable facilities and programs within the Redding, CA market. The prices reflected above are based on the analysis and either in line or slightly above current year market rates. SFA also took into consideration the goals of the City of Redding as well as demographic and socioeconomic factors of the community.

Total Revenue
Total Cost of Goods Sold
Net Revenue
Management Assumpion
23 DRAFT
Packet Pg. 974 Attachment: 4-Court Five-Year Operating Pro Forma - City Management (9.6(c)--Oral Presentation by The Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Sports Parties $/Party (Avg 15 Kids) $300 $300 $330 $330 $347 4 5 5 5 6 12 $14,400 $17,280 $19,958 $20,956 $23,104 Non-Capacity Growth Rate 1.00 1.10 1.00 1.05 1.20 1.05 1.05 1.05 Capacity growth rate 1.10 1.10 1.10 1.10 1.00 1.00 1.00 1.00 $14,400 $17,280 $19,958 $20,956 $23,104
Cost of Goods Sold Year 1 Year 2 Year 3 Year 4 Year 5
Birthday and Group Party Management Responsibility of Management Team $0 $0 $0 $0 $0 *Birthday and Group Party Staff 2 Hr./Party plus set up & clean, 1 Employee/Party, $15/Hr. per Employee (replaced by Management Team Recreation Leaders) $0 $0 $0 $0 $0 Birthday and Group Party Supplies 4% Gross Revenue $576 $691 $798 $838 $924 Birthday and Group Party Food 15% Gross Revenue $2,160 $2,592 $2,994 $3,143 $3,466 $2,736 $3,283 $3,792 $3,982 $4,390
$11,664 $13,997 $16,166 $16,975 $18,715
Pricing Notes Sport Birthday Parties FEC Birthday Parties Ninja Coalition Rare Air Park Arcade Adventure Park
Redding, CA Redding, CA
$325 / 2 hours / 8 participants $210 / 2 hours / 10 kids NorCal Elite Gymnastics Shasta Rock Club
Redding, CA Redding, CA
$300 / 2 hours / 15 participants $175 / 1.5 hours
Country Bowl
Redding, CA
$15 / kid / 2 hours
SFA researched and analyzed the prices for comparable facilities and programs within the Redding, CA market. The prices reflected above are based on the analysis and either in line or slightly above current year market rates. SFA also took into consideration the goals of the City of Redding as well as demographic and socioeconomic factors of the community.

Total Revenue
Total Cost of Goods Sold
Net Revenue
Birthday Parties Revenue & Expenses
Revenue Party Fees Number of Parties Sellable
Sessions Management Assumption Year 1 Year 2 Year 3 Year 4 Year 5 Management Assumption
24 DRAFT
Packet Pg. 975 Attachment: 4-Court Five-Year Operating Pro Forma - City Management (9.6(c)--Oral Presentation by The Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Half-Day Camp $/Week $105 $105 $116 $116 $121 12 13 14 15 15 10 $12,600 $13,860 $16,008 $16,809 $18,532 Full Day Camp $/Week $175 $175 $193 $193 $202 25 28 29 30 32 10 $43,750 $48,125 $55,584 $58,364 $64,346 Single Day Camps $/Day $35 $35 $39 $39 $40 25 28 29 30 32 12 $10,500 $11,550 $13,340 $14,007 $15,443 Camp Day-Care $/Day $10 $10 $11 $11 $12 108 118 124 130 137 10 $10,750 $11,825 $13,658 $14,341 $15,811 Non-Capacity Growth Rate 1.00 1.10 1.00 1.05 1.10 1.05 1.05 1.05 Capacity growth rate 1.10 1.10 1.10 1.10 1.00 1.00 1.00 1.00 $77,600 $85,360 $98,591 $103,520 $114,131
Cost of Goods Sold Year 1 Year 2 Year 3 Year 4 Year 5
Youth Programming Management Responsibility of Management Team $0 $0 $0 $0 $0 *Camp Instructors 35% Gross Revenue (replaced by Management Team Recreation Instructors) $0 $0 $0 $0 $0 Equipment & Consumables 3% Gross Revenue $2,328 $2,561 $2,958 $3,106 $3,424 Camp Lunch 2.5% Gross Revenue $1,940 $2,134 $2,465 $2,588 $2,853 T-Shirts $4/Shirt $1,480 $1,628 $1,709 $1,795 $1,885
$5,748 $6,323 $7,132 $7,488 $8,162
$71,852 $79,037 $91,459 $96,032 $105,969
Pricing Notes Youth Programming Camps
City of Redding Adventure Camp Redding Nuts and Bolts Camp Redding, CA Redding, CA
$165 / 1 week $76 / 1 week
Caldwell Recreation Center - Camp Caldwell Boulder Creek YMCA Winter Camp Redding, CA Boulder Creek, CA
$160 / 1 week $170 / 4 days
Camp Eureka Turtle Bay Exploration Park
Redding, CA Redding, CA
$165 / 1 week $135 / 3 days
Shaska Lake Camp Redding Performing Arts Center
Redding, CA Redding, CA
$75 / 1 week $120 / 5 half days
Youth Programming Revenue & Expenses
Revenue Program Fees Number of Registrations Sellable
Sessions Year 1 Year 2 Year 3 Year 4 Management Assumption SFA researched and analyzed the prices for comparable facilities and programs within the Redding, CA market. The prices reflected above are based on the analysis and either in line or slightly above current year market rates. SFA also took into consideration the goals of the City of Redding as well as demographic and socioeconomic factors of the community.

Year 5
Total Revenue
Total Cost of Goods Sold
Net Revenue
Management Assumption
25 DRAFT
Packet Pg. 976 Attachment: 4-Court Five-Year Operating Pro Forma - City Management (9.6(c)--Oral Presentation by The Year 1 Year 2 Year 3 Year 4 Year 5
Rental Basketball - Small2 $2.00 4 5 6 7 7 640 $10,240 $12,800 $15,360 $17,920 $17,920 Rental Basketball - Medium2 $2.00 - - - - - 960 $0 $0 $0 $0 $0 Rental Basketball - Large2 $2.00 - - - - - 1280 $0 $0 $0 $0 $0 Rental Basketball - Extra Large 2.5 $2.00 - - - - - 1920 $0 $0 $0 $0 $0 Rental Volleyball - Small1 $2.00 3 3 4 4 4 640 $3,840 $3,840 $5,120 $5,120 $5,120 Rental Volleyball - Medium2 $2.00 1 1 1 2 2 1280 $5,120 $5,120 $5,120 $10,240 $10,240 Rental Volleyball - Large3 $2.00 - - - - - 1920 $0 $0 $0 $0 $0 Rental Volleyball - Extra Large3 $2.00 - - - - - 2560 $0 $0 $0 $0 $0 Other Court Sport Rental - 1 Day Event1 $2.00 2 2 2 2 2 320 $1,280 $1,280 $1,280 $1,280 $1,280 Other Court Sport Rental - 2 Day Event2 $2.00 1 2 2 2 2 640 $2,560 $5,120 $5,120 $5,120 $5,120 11 13 15 17 17
$23,040 $28,160 $32,000 $39,680 $39,680
Cost of Goods Sold Year 1 Year 2 Year 3 Year 4 Year 5
$0 $0 $0 $0 $0
Net Revenue $23,040 $28,160 $32,000 $39,680 $39,680
Facility Fees Revenue & Expenses
Event Type Event Days Facility Fee Year 5 Number of Events per Year Daily Attendees (Non-Athletes) Year 1 Year 2 Year 3 Year 4
Total Revenue
Total Cost of Goods Sold
Management Assumption
26 DRAFT
Packet Pg. 977 Attachment: 4-Court Five-Year Operating Pro Forma - City Management (9.6(c)--Oral Presentation by The Revenue Management Assumption Year 1 Year 2 Year 3 Year 4 Year 5 Concessions Sales - Local $5,870 $6,248 $6,516 $6,776 $6,992 Concessions Sales - Tournament $45,120 $56,640 $64,320 $77,760 $77,760 Concessions Sales - FEC $32,402 $35,643 $36,712 $37,813 $38,191 $83,392 $98,530 $107,548 $122,349 $122,944
Cost of Goods Sold Management Assumption Year 1 Year 2 Year 3 Year 4 Year 5 Concessions Food 30% Concession Sales $25,018 $29,559 $32,264 $36,705 $36,883 Concessions Wages 25% Concession Sales (replaced by Management Team Recreation Leaders) $0 $0 $0 $0 $0 $25,018 $29,559 $32,264 $36,705 $36,883
$58,374 $68,971 $75,283 $85,644 $86,061
Total Revenue
Total Cost of Goods Sold
Net Revenue
Food & Beverage Revenue & Expenses
27 DRAFT
Packet Pg. 978 Attachment: 4-Court Five-Year Operating Pro Forma - City Management (9.6(c)--Oral Presentation by The Year 1 Year 2 Year 3 Year 4 Year 5
Rental Basketball - Small 50% non-local attendance 1.5 $0.00 4 5 6 7 7 160 320 160 50% $0 $0 $0 $0 $0 Rental Basketball - Medium 60% non-local attendance 1.5 $0.00 - - - - - 288 576 288 50% $0 $0 $0 $0 $0 Rental Basketball - Large 70% non-local attendance 1.5 $0.00 - - - - - 448 896 448 50% $0 $0 $0 $0 $0 Rental Basketball - Extra Large 80% non-local attendance 2 $0.00 - - - - - 768 1536 768 50% $0 $0 $0 $0 $0 Rental Volleyball - Small 25% non-local attendance 0.5 $0.00 3 3 4 4 4 80 160 80 50% $0 $0 $0 $0 $0 Rental Volleyball - Medium 60% non-local attendance 1.5 $0.00 1 1 1 2 2 384 768 384 50% $0 $0 $0 $0 $0 Rental Volleyball - Large 70% non-local attendance 2.5 $0.00 - - - - - 672 1344 672 50% $0 $0 $0 $0 $0 Rental Volleyball - Extra Large 80% non-local attendance 2.5 $0.00 - - - - - 1024 2048 1024 50% $0 $0 $0 $0 $0 Other Court Sport Rental - 1 Day Event 25% non-local attendance 0.5 $0.00 2 2 2 2 2 40 80 40 50% $0 $0 $0 $0 $0 Other Court Sport Rental - 2 Day Event 80% non-local attendance 1.5 $0.00 1 2 2 2 2 256 512 256 50% $0 $0 $0 $0 $0 Hotel Commissions 2.1% of Total Hotel Room Revenue $0 $0 $0 $0 $0 11 13 15 17 17
$0 $0 $0 $0 $0
Cost of Goods Sold Year 1 Year 2 Year 3 Year 4 Year 5
$0 $0 $0 $0 $0
$0 $0 $0 $0 $0
$0 $0 $0 $0 $0
Total Revenue
Total Cost of Goods Sold
Net Revenue
Year 2 Year 3 Rebate
Capture Year 4 Year 5
Hotel Rebates
Revenue Management Assumption Nights Per Event Venue
Rebate Rate
Number of Events per Year # Non-Local
Participants
# Non-Local
Fans
Hotel
Rooms/Night Year 1
28 DRAFT
Packet Pg. 979 Attachment: 4-Court Five-Year Operating Pro Forma - City Management (9.6(c)--Oral Presentation by The Revenue Management Assumption Year 1 Year 2 Year 3 Year 4 Year 5 Retail Sales $6,017 $6,837 $7,584 $8,649 $8,727
$6,017 $6,837 $7,584 $8,649 $8,727
Cost of Goods Sold Management Assumption Year 1 Year 2 Year 3 Year 4 Year 5 Retail Product Cost 55% Retail Sales $3,309 $3,760 $4,171 $4,757 $4,800 Retail Wages 15% Retail Sales (replaced by Management Team Recreation Leaders) $0 $0 $0 $0 $0 $3,309 $3,760 $4,171 $4,757 $4,800
$2,707 $3,076 $3,413 $3,892 $3,927
Total Revenue
Total Cost of Goods Sold
Net Revenue
Retail Revenue & Expenses
29 DRAFT
Packet Pg. 980 Attachment: 4-Court Five-Year Operating Pro Forma - City Management (9.6(c)--Oral Presentation by The Area (Sq./ft.) $ per Sq./ft. Year 1 Year 2 Year 3 Year 4 Year 5 Tenant Lease Agreements
Leased Space - Medical 5,000 $25.00 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000 $125,000
- - - - -
$125,000 $125,000 $125,000 $125,000 $125,000
Tenant Revenue
Total Revenue
Total Cost of Goods Sold
Net Revenue
Leased Space Revenue
30 DRAFT
Packet Pg. 981 Attachment: 4-Court Five-Year Operating Pro Forma - City Management (9.6(c)--Oral Presentation by The Revenue Management Assumption Year 1 Year 2 Year 3 Year 4 Year 5 Sponsorship/Advertisement Income $82,500 $82,500 $99,000 $99,000 $110,000 $82,500 $82,500 $99,000 $99,000 $110,000
Cost of Goods Sold Management Assumption Year 1 Year 2 Year 3 Year 4 Year 5 Sponsorship COGS 25% Sponsorship Revenue $20,625 $20,625 $24,750 $24,750 $27,500 $20,625 $20,625 $24,750 $24,750 $27,500
$61,875 $61,875 $74,250 $74,250 $82,500
Sponsorship & Advertisement Revenue
Net Revenue
Total Cost of Goods Sold
Total Revenue
31 DRAFT
Packet Pg. 982 Attachment: 4-Court Five-Year Operating Pro Forma - City Management (9.6(c)--Oral Presentation by The Overhead Expenses
32 DRAFT
Packet Pg. 983 Attachment: 4-Court Five-Year Operating Pro Forma - City Management (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi- Indoor Facility/Buildings
Indoor Facility Expense Management Assumption Year 1 Year 2 Year 3 Year 4 Year 5 Alarm System Maintenance $5,000 $5,075 $5,151 $5,228 $5,307 Janitorial Expenses Cleaning and Supplies $58,654 $59,820 $61,309 $63,130 $64,005 Safety Supplies Includes Year 1 Purchase $3,500 $1,400 $1,421 $1,442 $1,464 Grounds Maintenance, Labor, & Lighting Based on Site Development $30,000 $30,450 $30,907 $31,370 $31,841 Maintenance & Repairs Excludes Capital Replacement $30,016 $30,466 $30,923 $31,387 $31,858 Utility Expense Electricity, Gas, Water, Trash, etc. $170,476 $173,033 $175,628 $178,263 $180,937 Total Facility Expense $297,646 $300,244 $305,339 $310,821 $315,411 Facility Expenses
33 DRAFT
Packet Pg. 984 Attachment: 4-Court Five-Year Operating Pro Forma - City Management (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi- Expense Management Assumption Year 1 Year 2 Year 3 Year 4 Year 5 Accounting Fees $5,000 $5,075 $5,151 $5,228 $5,307
Bank Service Charges Banking Fees, Credit Card Processing $10,871 $12,393 $14,023 $15,313 $16,151 Communications IT, Phone, Cable, Internet $13,614 $13,818 $14,025 $14,236 $14,449 Dues/Subscriptions $500 $508 $515 $523 $531
Employee Uniforms $1,500 $1,523 $1,545 $1,569 $1,592
Marketing and Advertising $16,307 $12,393 $14,023 $15,313 $16,151 Insurance General, Property, Liability (covered by City) $0 $0 $0 $0 $0 Legal Fees $5,000 $5,075 $5,151 $5,228 $5,307
Licenses, Permits Food, Music, etc. $5,000 $5,075 $5,151 $5,228 $5,307 National Management & Marketing Service TBD $0 $0 $0 $0 $0 National Management Travel TBD $0 $0 $0 $0 $0
Office Supplies $7,261 $7,370 $7,480 $7,592 $7,706
Real Estate Tax Public Ownership $0 $0 $0 $0 $0
Software Operating, Scheduling, POS, Registration $9,600 $9,744 $9,890 $10,039 $10,189 Travel and Education $3,000 $3,045 $3,091 $3,137 $3,184 Total Operating Expenses $77,653 $76,018 $80,047 $83,406 $85,874 Operating Expenses
34 DRAFT
Packet Pg. 985 Attachment: 4-Court Five-Year Operating Pro Forma - City Management (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi- Management Position Management Assumption Year 1 Year 2 Year 3 Year 4 Year 5 Recreation Superintendent All-In Cost $51,474 $53,533 $55,674 $57,901 $60,217 Recreation Supervisor I All-In Cost $126,136 $131,181 $136,429 $141,886 $147,561 Recreation Coordinator I All-In Cost $44,098 $45,862 $47,696 $49,604 $51,588 Recreation Coordinator I All-In Cost $37,325 $38,818 $40,371 $41,986 $43,665 Recreation Coordinator I All-In Cost $37,325 $38,818 $40,371 $41,986 $43,665 Recreation Leaders (10) All-In Cost $100,000 $104,000 $108,160 $112,486 $116,986 Recreation Instructors (4) All-In Cost $60,000 $62,400 $64,896 $67,492 $70,192 Finance Manager Covered by City $0 $0 $0 $0 $0
Admin Support Clerk I $18,184 $18,911 $19,668 $20,455 $21,273 $474,542 $493,524 $513,265 $533,795 $555,147
Management Payroll Summary
Total Management Payroll
35 DRAFT
Packet Pg. 986 Attachment: 4-Court Five-Year Operating Pro Forma - City Management (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi- Total Payroll Summary Management
Assumption Pre-Open Year 1 Year 2 Year 3 Year 4 Year 5
Mgmt Recreation Superintendent 12 months prior $51,474 $51,474 $53,533 $55,674 $57,901 $60,217 Mgmt Recreation Supervisor I 12 months prior $126,136 $126,136 $131,181 $136,429 $141,886 $147,561 Mgmt Recreation Coordinator I 3 months prior $11,025 $44,098 $45,862 $47,696 $49,604 $51,588 Mgmt Recreation Coordinator I 3 months prior $9,331 $37,325 $38,818 $40,371 $41,986 $43,665 Mgmt Recreation Coordinator I 3 months prior $9,331 $37,325 $38,818 $40,371 $41,986 $43,665 Mgmt Finance Manager 6 months prior $0 $0 $0 $0 $0 $0
Support Admin Support 1 month prior $1,515 $18,184 $18,911 $19,668 $20,455 $21,273 Subtotal Management Payroll $208,812 $314,542 $327,124 $340,209 $353,817 $367,970 Director Fitness & Training Management Allotment 3 months prior $1,352 $5,407 $6,488 $7,494 $7,869 $8,262 Subtotal Program Management $1,352 $5,407 $6,488 $7,494 $7,869 $8,262 Staff Recreation Leaders (10) 1 month prior $8,333 $100,000 $104,000 $108,160 $112,486 $116,986 Subtotal Sport Admin Staff $8,333 $100,000 $104,000 $108,160 $112,486 $116,986 Instructors Recreation Instructors (4) Per Diem $60,000 $62,400 $64,896 $67,492 $70,192 Subtotal Instructors (COGS) $60,000 $62,400 $64,896 $67,492 $70,192 Referees Basketball Officials Per Diem $4,300 $5,099 $5,791 $6,329 $6,600 Referees Volleyball Officials Per Diem $0 $0 $0 $0 $0
Subtotal Referee/Trainers (COGS) $4,300 $5,099 $5,791 $6,329 $6,600 Total Payroll Cost $484,249 $505,111 $526,550 $547,993 $570,009 Payroll Summary
36 DRAFT
Packet Pg. 987 Attachment: 4-Court Five-Year Operating Pro Forma - City Management (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-

FIVE-YEAR OPERATING PRO FORMA
THIRD PARTY MANAGEMENT – 8 COURT
PREPARED FOR: CITY OF REDDING
R EPO R T DELI VER Y D ATE: MAY 2024

IMPROVING COMMUNITIES THROUGH SPORT

THIS PROJECT IS REPRESENTED BY

FOR MORE INFORMATION VISIT
WWW.SPORTSFACILITIES.COMPacket Pg. 988 Attachment: 8-Court Five-Year Operating Pro Forma - Third Party Management (9.6(c)--Oral Presentation by The Sports Facilities Companies on Facility Program Details
2 Facility Program3
Facility Development Costs and Financing4
Capital Costs & Start-Up Expenses - Indoor Athletics Facility5 Capital Costs & Start-Up Expenses - Capital Replacement6 Capital Costs & Start-Up Expenses - Soft Costs of Operations7 Use of Proceeds8
Financial Performance Summary9
Total Revenue and Expenses - 5-Year Detail 10
Total Revenue and Expenses - 20-Year Outlook 11
Economic Impact - 5-Year Detail 13
Economic Impact - 20-Year Outlook 14
Business Unit Analysis 15
Overhead Expenses 32
Facility Expenses 33
Operating Expenses 34
Management Payroll 35
Payroll Taxes and Benefits 36
Table of Contents
1 Packet Pg. 989 Attachment: 8-Court Five-Year Operating Pro Forma - Third Party Management (9.6(c)--Oral Presentation by The Sports Facilities Companies on Facility Program Details
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Packet Pg. 990 Attachment: 8-Court Five-Year Operating Pro Forma - Third Party Management (9.6(c)--Oral Presentation by The Sports Facilities Companies on Indoor Athletic Facility

L (') W (')
Basketball Courts (actual courts 84' x 50') 8 104 80 8,320 66,560 45.3% Pickleball Courts 24 44 20 0.0%
Volleyball Courts 16 60 30 0.0%
Total Courts Sq. Ft. 66,560 45.3%
1 - - 5,000 5,000 3.4%
1 - - 2,600 2,600 1.8%
1 - - 400 400 0.3%
2 - - 400 800 0.5%
Laser Tag
Arcade
Redemption Store
Virtual Reality/Simulators (Tether VR)
Play Climb/Adventure/Ropes Course 1 - - 2,000 2,000 1.4% Total FEC/Adventure Sq. Ft. 10,800 7.4%
Sports Performance Turf Area 1 120 60 7,200 7,200 4.9%
Sports Performance Training Area 1 40 60 2,400 2,400 1.6% Batting Cages/Pitching Tunnels 4 75 15 0.0%
Total Sports Performance Sq. Ft. 9,600 6.5%
Lobby/Welcome Area 1 - - 1,500 1,500 1.0%
Control Room 1 15 10 150 150 0.1%
Ticket Office 1 10 10 100 100 0.1%
Manager's Offices 5 10 10 100 500 0.3%
Office Area 1 - - 1,500 1,500 1.0%
Kitchen 1 40 30 1,200 1,200 0.8%
Café Seating Area 1 50 50 2,500 2,500 1.7%
Flex/Team Rooms 4 60 25 1,500 6,000 4.1%
Ref Rooms 2 15 10 150 300 0.2%
Training Room 1 20 15 300 300 0.2%
Restrooms 2 35 25 875 1,750 1.2%
Leased Space - Medical 1 - - 10,000 10,000 6.8%
Mezzanine 1 416 16 6,656 6,656 4.5%
Total Flex Space Sq. Ft. 32,456 22.1%
119,416 81.4%
10,942 7.5%
16,412 11.2%
146,770 100%
126,103

2.89 Site Development

L (') W (')
Parking Spaces Total (10'x18')
(20' x 20' Inc. aisles) 441 20 20 400 176,400 70.0%
Setbacks, Green Space, Trails, etc. 75,626 30.0%
252,026 100%

5.79 8.68
Facility Program Courts Flex Space
% of Total
Parking
Spaces
Total
25% Indoor SF, 50% Outdoor
Total Complex Acreage
Quantity Dimensions Approx.

SF each Total SF
Total Estimated Site Development SF
Total Site Development Acreage
Sports
Performance
Required SF for Products and Services
Over Basketball Courts
Over Turf
Space Indoor Programming Product/Service Count Dimensions Estimated Building Footprint
Total SF % of Footprint
Over Basketball Courts
Approx.

SF each
Total Estimated Indoor Athletic Facility SF
10% of P&S SF (Excl. Leased Space)
Common Area, Stairs, Circulation, etc. 15% of P&S SF (Excl. Leased Space) Total Building Acreage
FEC/Adventure
Mechanical, Electrical, Storage, etc.
3 DRAFT
Packet Pg. 991 Attachment: 8-Court Five-Year Operating Pro Forma - Third Party Management (9.6(c)--Oral Presentation by The Sports Facilities Companies on Facility Development Costs
and Financing
4 DRAFT
Packet Pg. 992 Attachment: 8-Court Five-Year Operating Pro Forma - Third Party Management (9.6(c)--Oral Presentation by The Sports Facilities Companies on Capital Costs and Start-up Expenses - Indoor Athletics Facility Details Quantity Unit Cost/Unit Prevailing Wage
Factor
Budgeted
Cost
% of
Total
Building & Land Cost
Real Estate Acquisition TBD 8.68 $0.00 $0 0.0%
Land Cost Total $0 0.0%
Hard Costs
Hard Structure Cost Warm Shell 140,114 SF $221 1.15 $35,609,973 48.8% Hard Structure Cost - Mezzanine/Walking Track Warm Shell 6,656 SF $241 1.15 $1,840,883 2.5% Finish Out Enhanced Cost of Kitchen Space 1,200 SF $20 1.15 $27,600 0.0% Site Development Paving, Grading, Utilities, Landscaping, Improvement Allocation for Indoor Facility 8.68 Acre $455,000 1.15 $4,542,140 6.2% Contingency 10.00% $4,202,060 5.8%
Escalation 9.00% $4,160,039 5.7%
Contractor Fee Includes Hard Cost Contingency/Escalation 3.50% $1,763,394 2.4% Hard Cost Total $52,146,089 71.5%
Field and Sport Equipment Cost
Court Area
Hardwood Flooring 66,560 SF $14 1.15 $1,071,616 1.5%
Basketball Net & Stanchion System Mechanical Roll-Down System 16 Ea. $10,000 1.15 $184,000 0.3% Volleyball Net System Electronic System (Nets, Poles, Padding, Etc.) 16 Ea. $20,000 1.15 $368,000 0.5% Pickleball Net System USAPA Portable Net Systems 24 Ea. $150 1.15 $4,140 0.0% Wall Padding/Netting Average Cost per Court 8 Ea. $6,500 1.15 $59,800 0.1% Scoreboards With Controllers 8 Ea. $8,000 1.15 $73,600 0.1% Court Seats (Participants) 368 Ea. $125 1.15 $52,900 0.1% Bleachers (Spectators) Approx. 50 Capacity per Tip and Roll Set 32 Ea. $3,250 1.15 $119,600 0.2% Curtains (Court) Mechanical Roll-Down System 7 Ea. $20,000 1.15 $161,000 0.2% Vinyl Floor Covering 66,560 SF $1.70 1.15 $130,125 0.2% Athletic Equipment Sports Equipment (Cones, Balls, Etc.) 1 LS $25,000 $25,000 0.0% FEC
Area Build Out & Equipment 5,000 SF $85 1.15 $488,750 0.7% Area Build Out & Equipment 2,600 SF $169 1.15 $506,506 0.7% Area Build Out & Equipment 400 SF $80 1.15 $36,800 0.1% Area Build Out & Equipment 800 SF $200 1.15 $184,000 0.3% Area Build Out & Equipment 2,000 SF $115 1.15 $264,500 0.4% Laser Tag
Arcade
Redemption Store
Virtual Reality/Simulators (Tether VR)
Play Climb/Adventure/Ropes Course
POS Playcard Area Build Out & Equipment 1 LS $50,000 1.15 $57,500 0.1% Sports Performance Training Area
Sports Performance Synthetic Turf Flooring 7,200 SF $5 1.15 $41,400 0.1% Sports Performance Training Flooring 2,400 SF $12 1.15 $33,120 0.0% Sports Performance Equipment 2,400 SF $50 1.15 $138,000 0.2% Batting Cages/Pitching Tunnels 75' x 15' Tunnel 4 Ea. $15,000 1.15 $69,000 0.1% Pitching Machines 4 Ea. $3,000 1.15 $13,800 0.0%
Athletic Equipment Sports Equipment (Cones, Balls, Etc.) 1 LS $10,000 $10,000 0.0% Shipping 5.00% $204,658 0.3%
Contingency 10.00% $429,781 0.6%
Escalation 9.00% $425,484 0.6%
Field and Sport Equipment Cost Total $5,153,080 7.1%
Furniture, Fixtures and Equipment Cost

FOOD & BEVERAGE
Concessions Equipment 1 LS $325,000 1.15 $373,750 0.5%
Smallwares 1 LS $18,000 1.15 $20,700 0.0%

FURNISHINGS
Furnishings Flex Space 22,456 SF $2 1.15 $51,649 0.1%
Hardware - Security/Access Control Structure Cabling included in Hard Structure Costs 146,770 SF $0.75 1.15 $126,589 0.2% Hardware - POS 1 LS $8,000 1.15 $9,200 0.0%
Hardware - Telecommunications 146,770 SF $1.50 1.15 $253,178 0.3% Software 1 LS $5,000 1.15 $5,750 0.0%

MISCELLANEOUS
Marquee Signage Exterior 1 LS $200,000 1.15 $230,000 0.3% Graphics Package 146,770 SF $2.00 1.15 $337,571 0.5%
Audio/Video 1 LS $200,000 1.15 $230,000 0.3%
Maintenance Equipment 146,770 SF $0.50 $73,385 0.1%
Shipping 5.00% $85,589 0.1%
Contingency 10.00% $179,736 0.2%
Escalation 9.00% $177,939 0.2%
Furniture, Fixtures and Equipment Cost Total $2,155,036 3.0% Soft Costs Construction
Design Fee Civil, Architectural 10.0% $5,038,269 6.9%
SFC Owner's Rep Services (Optional) Planning Support, FF&E Procurement 3.0% $1,730,724 2.4% Permits/Inspections 0.50% $251,913 0.3%
Additional Services 10.00% $702,091 1.0%
Construction Management/Inspection 10.00% $5,769,081 7.9% Soft Cost Total $13,492,079 18.5%
$72,946,283 100.0%
$497
Total Construction Costs - Indoor Facility
Cost Per Square Foot
5 DRAFT
Packet Pg. 993 Attachment: 8-Court Five-Year Operating Pro Forma - Third Party Management (9.6(c)--Oral Presentation by The Sports Facilities Companies on Annual Cap. Ex Allocation Analysis - Indoor Facility
Budgeted
Cost Useful Life (Years) Annual Cap Ex. Allocation
Building & Land Cost
Real Estate Acquisition $0 N/A
Land Cost Total
Hard Costs
Hard Structure Cost $35,609,973 40 $890,249
Hard Structure Cost - Mezzanine/Walking Track $1,840,883 40 $46,022 Finish Out $27,600 20 $1,380
Hard Cost Total $937,651
Field and Sport Equipment Cost
Court Area
Hardwood Flooring $1,071,616 25 $42,865
Basketball Net & Stanchion System $184,000 25 $7,360
Volleyball Net System $368,000 25 $14,720
Pickleball Net System $4,140 5 $828
Wall Padding/Netting $59,800 10 $5,980
Scoreboards $73,600 30 $2,453
Court Seats (Participants) $52,900 10 $5,290
Bleachers (Spectators) $119,600 10 $11,960
Curtains (Court) $161,000 25 $6,440
Vinyl Floor Covering $130,125 10 $13,012
Athletic Equipment $25,000 5 $5,000
FEC
$488,750 10 $48,875
$506,506 10 $50,651
$36,800 25 $1,472
$184,000 10 $18,400
$264,500 10 $26,450
Laser Tag
Arcade
Redemption Store
Virtual Reality/Simulators (Tether VR)
Play Climb/Adventure/Ropes Course
POS Playcard $57,500 10 $5,750
Sports Performance Training Area
Sports Performance Synthetic Turf Flooring $41,400 25 $1,656 Sports Performance Training Flooring $33,120 25 $1,325
Sports Performance Equipment $138,000 5 $27,600
Batting Cages/Pitching Tunnels $69,000 10 $6,900
Pitching Machines $13,800 10 $1,380
Athletic Equipment $10,000 5 $2,000
Field and Sport Equipment Cost Total $308,367
Furniture, Fixtures and Equipment Cost

FOOD & BEVERAGE
Concessions Equipment $373,750 20 $18,688
Smallwares $20,700 20 $1,035

FURNISHINGS
Furnishings $51,649 10 $5,165
Hardware - Security/Access Control $126,589 10 $12,659
Hardware - POS $9,200 10 $920
Hardware - Telecommunications $253,178 10 $25,318
Software $5,750 10 $575

MISCELLANEOUS
Marquee Signage $230,000 25 $9,200
Graphics Package $337,571 20 $16,879
Audio/Video $230,000 20 $11,500
Maintenance Equipment $73,385 20 $3,669
Furniture, Fixtures and Equipment Cost Total $105,607
TOTAL ANNUAL CAP EX. ALLOCATION $1,351,625
6 DRAFT
Packet Pg. 994 Attachment: 8-Court Five-Year Operating Pro Forma - Third Party Management (9.6(c)--Oral Presentation by The Sports Facilities Companies on Details Cost/Unit Budgeted Cost % of Total
Soft Costs Operations
Pre-Launch Professional Services Legal, Accounting, Bank, Consulting $150,000 10.0% Permits and Extensions $75,000 5.0%
Presentation Materials Renderings, Etc. $50,000 3.3%
Grand Opening $15,000 1.0%
Marketing Allowance Pre-Opening Marketing Budget $30,000 2.0% Operational Office Space Professional Management Support for Pre-Opening Operations Development $33,000 2.2%
Operational Support Services Professional Management Support for Pre-Opening Operations Development $350,000 23.3%
Pre-Funded Operational Account $255,339 17.0%
Pre-Opening Staff Budget Staffing Cost Pre-Grand Opening $383,834 25.5% Pre-Opening Staff Recruitment $25,000 1.7%
Cost of Issuance/Financing TBD 0.0%
Interest Reserve TBD 0.0%
Closing Costs TBD 0.0%
Working Capital Reserve TBD 0.0%
Contingency 10.00% $136,717 9.1%
Soft Cost Total $1,503,891 100.0%
$1,503,891 100.0%
TBD 100.0%
Total Construction Costs - Soft Cost Operations
Working Capital Reserve
Capital Costs and Start-up Expenses - Soft Costs Operations 7 DRAFT
Packet Pg. 995 Attachment: 8-Court Five-Year Operating Pro Forma - Third Party Management (9.6(c)--Oral Presentation by The Sports Facilities Companies on

LOW MID HIGH
Land Cost TBD TBD TBD
Hard Cost $43,187,445 $47,986,050 $52,784,655
Field and Sport Equipment Cost $4,254,836 $4,727,596 $5,200,356 Furniture, Fixtures, and Equipment $1,779,387 $1,977,097 $2,174,807 Soft Costs Construction $12,142,871 $13,492,079 $14,841,287 Soft Costs Operations $1,503,891 $1,503,891 $1,503,891
Escalation $4,287,115 $4,763,461 $5,239,808
Working Capital Reserve TBD TBD TBD
Total Funding Requirements $67,155,546 $74,450,174 $81,744,802

USES OF FUNDS
Capital Costs and Start-up Expenses
8 DRAFT
Packet Pg. 996 Attachment: 8-Court Five-Year Operating Pro Forma - Third Party Management (9.6(c)--Oral Presentation by The Sports Facilities Companies on Financial Performance Summary
9 DRAFT
Packet Pg. 997 Attachment: 8-Court Five-Year Operating Pro Forma - Third Party Management (9.6(c)--Oral Presentation by The Sports Facilities Companies on Revenue Year 1 Year 2 Year 3 Year 4 Year 5
Rental Basketball Tournaments $67,200 $86,400 $110,880 $116,160 $121,968 Rental Volleyball Tournaments $33,264 $71,064 $83,160 $109,771 $130,977 Court Rental Events $19,200 $28,800 $31,680 $42,240 $44,352 Basketball $18,240 $21,629 $27,023 $29,531 $32,334
*Volleyball $0 $0 $0 $0 $0
Court Rentals $122,976 $126,665 $136,989 $141,098 $152,598 FEC/Adventure $360,267 $479,078 $531,345 $599,467 $658,144 Fitness and Training $90,489 $108,586 $125,417 $131,688 $138,273 Birthday Parties $21,600 $25,920 $29,938 $31,434 $34,657 Youth Programming $77,600 $85,360 $98,591 $103,520 $114,131 Facility Fees $65,920 $113,280 $122,880 $151,040 $162,560 Food & Beverage $247,192 $371,513 $401,174 $472,636 $499,564 Hotel Rebates $18,506 $35,979 $38,972 $49,758 $54,072
Retail $13,003 $18,096 $19,713 $22,766 $23,854
Tenant Revenue $250,000 $250,000 $250,000 $250,000 $250,000 Sponsorship/Advertisement Revenue $135,000 $135,000 $162,000 $162,000 $180,000 Total Revenue $1,540,456 $1,957,371 $2,169,762 $2,413,110 $2,597,483 Cost of Goods Sold Year 1 Year 2 Year 3 Year 4 Year 5
Rental Basketball Tournaments $6,720 $8,640 $11,088 $11,616 $12,197 Rental Volleyball Tournaments $3,326 $7,106 $8,316 $10,977 $13,098 Court Rental Events $1,920 $2,880 $3,168 $4,224 $4,435
Basketball $9,789 $11,608 $13,479 $14,729 $15,545
*Volleyball $0 $0 $0 $0 $0
Court Rentals $6,149 $6,333 $6,849 $7,055 $7,630
FEC/Adventure $126,093 $167,677 $185,971 $209,814 $230,350 Fitness and Training $49,246 $59,095 $68,255 $71,668 $75,251 Birthday Parties $6,264 $7,517 $8,410 $8,830 $9,585
Youth Programming $32,908 $36,199 $41,639 $43,721 $48,108 Facility Fees $0 $0 $0 $0 $0
Food & Beverage $135,955 $204,332 $220,646 $259,950 $274,760 Hotel Rebates $0 $0 $0 $0 $0
Retail $9,102 $12,667 $13,799 $15,936 $16,698
Tenant Expense $0 $0 $0 $0 $0
Sponsorship/Advertisment Expense $33,750 $33,750 $40,500 $40,500 $45,000 Total Cost of Goods Sold $421,223 $557,805 $622,119 $699,020 $752,656 Gross Margin $1,119,234 $1,399,566 $1,547,643 $1,714,090 $1,844,826 % of Revenue 73% 72% 71% 71% 71%
Facility Expenses $435,679 $443,196 $451,108 $459,927 $467,555 Operating Expense $416,430 $417,062 $426,010 $437,299 $445,533 Management Payroll $523,500 $599,440 $623,418 $648,354 $674,288 Payroll Taxes/Benefits/Bonus $156,425 $188,915 $200,703 $215,488 $227,004 Total Operating Expenses $1,532,034 $1,648,613 $1,701,239 $1,761,069 $1,814,381 EBITDA ($412,800) ($249,046) ($153,596) ($46,979) $30,445 % of Revenue -27% -13% -7% -2% 1%
Capital Replacement ($1,351,625) ($1,351,625) ($1,351,625) ($1,351,625) ($1,351,625) Total Annual Cost to City ($1,764,425) ($1,600,672) ($1,505,221) ($1,398,604) ($1,321,180) Total Revenue & Expenses - 5-Year Detail
*Existing volleyball programs are reflected in court rental time as non-revenue utilization at the new sports facility.

Therefore, there is currently no revenue associated with the volleyball business unit. 10 DRAFT
Packet Pg. 998 Attachment: 8-Court Five-Year Operating Pro Forma - Third Party Management (9.6(c)--Oral Presentation by The Sports Facilities Companies on Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Total Revenue $1,540,456 $1,957,371 $2,169,762 $2,413,110 $2,597,483 $2,675,407 $2,755,670 $2,838,340 $2,923,490 $3,011,195 Total Cost of Goods Sold $421,223 $557,805 $622,119 $699,020 $752,656 $775,236 $798,493 $822,448 $847,121 $872,535 Gross Margin $1,119,234 $1,399,566 $1,547,643 $1,714,090 $1,844,826 $1,900,171 $1,957,176 $2,015,892 $2,076,368 $2,138,659 % of Revenue 73% 72% 71% 71% 71% 71% 71% 71% 71% 71%
Total Operating Expenses $1,532,034 $1,648,613 $1,701,239 $1,761,069 $1,814,381 $1,841,597 $1,869,221 $1,897,259 $1,925,718 $1,954,604 EBITDA ($412,800) ($249,046) ($153,596) ($46,979) $30,445 $58,574 $87,956 $118,633 $150,650 $184,056 % of Revenue -27% -13% -7% -2% 1% 2% 3% 4% 5% 6%
Capital Replacement ($1,351,625) ($1,351,625) ($1,351,625) ($1,351,625) ($1,351,625) ($1,351,625) ($1,351,625) ($1,351,625) ($1,351,625) ($1,351,625) Total Annual Cost to City ($1,764,425) ($1,600,672) ($1,505,221) ($1,398,604) ($1,321,180) ($1,293,051) ($1,263,670) ($1,232,993) ($1,200,975) ($1,167,569) Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Total Revenue $3,071,418 $3,132,847 $3,195,504 $3,259,414 $3,324,602 $3,357,848 $3,391,427 $3,425,341 $3,459,594 $3,494,190 Total Cost of Goods Sold $889,986 $907,786 $925,941 $944,460 $963,349 $972,983 $982,713 $992,540 $1,002,465 $1,012,490 Gross Margin $2,181,433 $2,225,061 $2,269,563 $2,314,954 $2,361,253 $2,384,865 $2,408,714 $2,432,801 $2,457,129 $2,481,700 % of Revenue 71% 71% 71% 71% 71% 71% 71% 71% 71% 71%
Total Operating Expenses $1,983,923 $2,013,682 $2,043,887 $2,074,545 $2,105,663 $2,137,248 $2,169,307 $2,201,847 $2,234,874 $2,268,397 EBITDA $197,510 $211,380 $225,676 $240,409 $255,590 $247,617 $239,407 $230,955 $222,255 $213,303 % of Revenue 6% 7% 7% 7% 8% 7% 7% 7% 6% 6%
Capital Replacement ($1,351,625) ($1,351,625) ($1,351,625) ($1,351,625) ($1,351,625) ($1,351,625) ($1,351,625) ($1,351,625) ($1,351,625) ($1,351,625) Total Annual Cost to City ($1,154,115) ($1,140,245) ($1,125,949) ($1,111,217) ($1,096,036) ($1,104,008) ($1,112,218) ($1,120,671) ($1,129,370) ($1,138,322) Total Revenue and Expenses - Year 1-10
Total Revenue and Expenses - Year 11-20
Total Revenue & Expenses - 20-Year Outlook
11 DRAFT
Packet Pg. 999 Attachment: 8-Court Five-Year Operating Pro Forma - Third Party Management (9.6(c)--Oral Presentation by The Sports Facilities Companies on Economic Impact
12 DRAFT
Packet Pg. 1000 Attachment: 8-Court Five-Year Operating Pro Forma - Third Party Management (9.6(c)--Oral Presentation by The Sports Facilities Companies on Year 1 Year 2 Year 3 Year 4 Year 5
Basketball Tournaments 11 13 14 14 14
Volleyball Tournaments 5 8 9 11 12
Other Tournaments/Events 3 4 4 5 5
Total Events Per Year 19 25 27 30 31
Year 1 Year 2 Year 3 Year 4 Year 5
Lodging/Accommodations $35.67 $36.20 $36.74 $37.30 $37.86 Dining/Groceries $44.25 $44.91 $45.59 $46.27 $46.97
Transportation $7.52 $7.64 $7.75 $7.87 $7.98
Entertainment/Attractions $3.54 $3.59 $3.65 $3.70 $3.76 Retail $20.80 $21.11 $21.43 $21.75 $22.07
Miscellaneous $11.95 $12.13 $12.31 $12.49 $12.68
Total $123.72 $125.58 $127.46 $129.38 $131.32
Year 1 Year 2 Year 3 Year 4 Year 5
Non-Local Days in Market - Overnight 37,002 69,114 75,360 95,232 102,720 Room Nights 8,236 16,012 17,344 22,144 24,064
Year 1 Year 2 Year 3 Year 4 Year 5
Total Direct Spending - Overnight $4,578,042 $8,679,338 $9,605,667 $12,320,705 $13,488,812 Total Indirect Spending $0 $0 $0 $0 $0
Total Economic Impact $4,578,042 $8,679,338 $9,605,667 $12,320,705 $13,488,812 Year 1 Year 2 Year 3 Year 4 Year 5
Hotel/Motel Tax (10% on Lodging/Accommodations) $88,125 $173,898 $191,190 $247,764 $273,285 Special District Tax (2% on Lodging/Accommodations) $17,625 $34,780 $38,238 $49,553 $54,657 Total Tax Revenue Generation $105,750 $208,678 $229,428 $297,317 $327,942 Tax Revenue Generation
Economic Impact
Economic Impact
Number of Events Per Year
Per Person Spending By Category
Economic Impact Drivers
13 DRAFT
Packet Pg. 1001 Attachment: 8-Court Five-Year Operating Pro Forma - Third Party Management (9.6(c)--Oral Presentation by The Sports Facilities Companies on Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Non-Local Days in Market 37,002 69,114 75,360 95,232 102,720 103,747 104,785 105,833 106,891 107,960 Room Nights 8,236 16,012 17,344 22,144 24,064 24,305 24,548 24,793 25,041 25,292 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Overnight $123.72 $125.58 $127.46 $129.38 $131.32 $133.29 $135.29 $137.31 $139.37 $141.46 Total Economic Impact $4,578,042 $8,679,338 $9,605,667 $12,320,705 $13,488,812 $13,828,056 $14,175,832 $14,532,354 $14,897,843 $15,272,523 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Non-Local Days in Market 109,039 110,130 111,231 112,343 113,467 114,601 115,747 116,905 118,074 119,255 Room Nights 25,544 25,800 26,058 26,318 26,582 26,847 27,116 27,387 27,661 27,938 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 Overnight $143.59 $145.74 $147.93 $150.15 $152.40 $154.68 $157.00 $159.36 $161.75 $164.18 Total Economic Impact $15,656,627 $16,050,391 $16,454,059 $16,867,878 $17,292,106 $17,727,002 $18,172,836 $18,629,883 $19,098,424 $19,578,750 Economic Impact: Years 11-20
Economic Impact Drivers: Years 1-10
Economic Impact: Years 1-10
Economic Impact Drivers: Years 11-20
Economic Impact - 20-Year Outlook
14 DRAFT
Packet Pg. 1002 Attachment: 8-Court Five-Year Operating Pro Forma - Third Party Management (9.6(c)--Oral Presentation by The Sports Facilities Companies on Business Unit Analysis
15 DRAFT
Packet Pg. 1003 Attachment: 8-Court Five-Year Operating Pro Forma - Third Party Management (9.6(c)--Oral Presentation by The Sports Facilities Companies on Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Small Tournament - 4 Courts, 2 Days
Team Information 10 Players per Team 6 6 5 4 4 32
Spectators 2 Spectators per Player 640
Rental Fees Daily Rental Rate $600 $600 $660 $660 $693 6 6 5 4 4 8 $28,800 $28,800 $26,400 $21,120 $22,176 Medium Tournament - 6 Courts, 2 Days
Team Information 10 Players per Team 4 4 4 4 4 48
Spectators 2 Spectators per Player 960
Rental Fees Daily Rental Rate $600 $600 $660 $660 $693 4 4 4 4 4 12 $28,800 $28,800 $31,680 $31,680 $33,264 Large Tournament - 8 Courts, 2 Days
Team Information 10 Players per Team 1 3 5 6 6 64
Spectators 2 Spectators per Player 1280
Rental Fees Daily Rental Rate $600 $600 $660 $660 $693 1 3 5 6 6 16 $9,600 $28,800 $52,800 $63,360 $66,528 Non-Capacity Growth Rate 1.00 1.10 1.00 1.05 11 13 14 14 14 Capacity growth rate 1.10 1.10 1.10 1.10 11 13 14 14 14 $67,200 $86,400 $110,880 $116,160 $121,968
Cost of Goods Sold Year 1 Year 2 Year 3 Year 4 Year 5
Tournament Attendant Staff 10% Gross Revenue $6,720 $8,640 $11,088 $11,616 $12,197 Trainer Fees Pass Through $0 $0 $0 $0 $0
$6,720 $8,640 $11,088 $11,616 $12,197
$60,480 $77,760 $99,792 $104,544 $109,771
Year 4
Rental Basketball Tournament Revenue & Expenses
Year 5
Total Revenue
Total Cost of Goods Sold
Revenue Management Assumption
Rental Fees Number of Events per Year Event
Details Year 1 Year 2 Year 3
Management Assumption
Net Revenue
16 DRAFT
Packet Pg. 1004 Attachment: 8-Court Five-Year Operating Pro Forma - Third Party Management (9.6(c)--Oral Presentation Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Small Tournament - 12 Courts, 1 Days
Team Information 10 Players per Team 3 3 4 4 4 48
Spectators 2 Spectators per Player 960
Rental Fees Daily Rental Rate $378 $378 $416 $416 $437 3 3 4 4 4 12 $13,608 $13,608 $19,958 $19,958 $20,956 Medium Tournament - 8 Courts, 2 Days
Team Information 10 Players per Team 1 2 2 3 3 64
Spectators 2 Spectators per Player 1280
Rental Fees Daily Rental Rate $378 $378 $416 $416 $437 1 2 2 3 3 16 $6,048 $12,096 $13,306 $19,958 $20,956 Large Tournament - 12 Courts, 3 Days
Team Information 10 Players per Team 1 2 2 2 3 96
Spectators 2 Spectators per Player 1920
Rental Fees Daily Rental Rate $378 $378 $416 $416 $437 1 2 2 2 3 36 $13,608 $27,216 $29,938 $29,938 $47,152 Extra Large Tournament - 16 Courts, 3 Days
Team Information 10 Players per Team - 1 1 2 2 128
Spectators 2 Spectators per Player 2560
Rental Fees Daily Rental Rate $378 $378 $416 $416 $437 - 1 1 2 2 48 $0 $18,144 $19,958 $39,917 $41,913 Non-Capacity Growth Rate 1.00 1.10 1.00 1.05 5 8 9 11 12 Capacity growth rate 1.10 1.10 1.10 1.10 5 8 9 11 12
$33,264 $71,064 $83,160 $109,771 $130,977
Cost of Goods Sold Year 1 Year 2 Year 3 Year 4 Year 5
Tournament Attendant Staff 10% Gross Revenue $3,326 $7,106 $8,316 $10,977 $13,098 Tournament Trainers Pass Through $0 $0 $0 $0 $0
$3,326 $7,106 $8,316 $10,977 $13,098
$29,938 $63,958 $74,844 $98,794 $117,879
Management Assumption
Total Revenue
Rental Volleyball Tournaments Revenue & Expenses
Revenue Management Assumption Rental Fees Number of Events per Year Event Details Year 1 Year 2 Year 3 Year 4 Year 5
Total Cost of Goods Sold
Net Revenue
17 DRAFT
Packet Pg. 1005 Attachment: 8-Court Five-Year Operating Pro Forma - Third Party Management (9.6(c)--Oral Presentation Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Other Court Sport Rental - 1 Day Event
Rental Fee Per Day $4,800 $4,800 $5,280 $5,280 $5,544 2 2 2 2 2 1 $9,600 $9,600 $10,560 $10,560 $11,088 Other Court Sport Rental - 2 Day Event
Rental Fee Per Day $4,800 $4,800 $5,280 $5,280 $5,544 1 2 2 3 3 2 $9,600 $19,200 $21,120 $31,680 $33,264 Non-Capacity Growth Rate 1.00 1.10 1.00 1.05
Capacity growth rate 1.10 1.10 1.10 1.10
$19,200 $28,800 $31,680 $42,240 $44,352
Cost of Goods Sold Year 1 Year 2 Year 3 Year 4 Year 5
Event Attendant Expense 10% Gross Revenue $1,920 $2,880 $3,168 $4,224 $4,435 $1,920 $2,880 $3,168 $4,224 $4,435
$17,280 $25,920 $28,512 $38,016 $39,917
Indoor Court Rental Events Revenue & Expenses
Revenue Management Assumption
Rental Fees Number of Events per Year Event
Details Year 1 Year 2 Year 3 Year 4 Year 5
Total Revenue
Total Cost of Goods Sold
Net Revenue
Management Assumption
18 DRAFT
Packet Pg. 1006 Attachment: 8-Court Five-Year Operating Pro Forma - Third Party Management (9.6(c)--Oral Presentation Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Instructional Clinics $/Session $100 $100 $110 $110 $116 - - - - - 5 $0 $0 $0 $0 $0 Instructional Camps (Full Days) $/Week $200 $200 $220 $220 $231 - - - - - 5 $0 $0 $0 $0 $0 Individual Instruction $/Hour $70 $70 $77 $77 $81 - - - - - 12 $0 $0 $0 $0 $0 Drop-in/Other Income $/Session $5 $5 $6 $6 $6 19 23 26 28 29 12 $1,140 $1,352 $1,689 $1,846 $2,021 Adult League
Sept. - Oct. League $/Team $450 $450 $495 $495 $520 4 4 5 6 6 1 $1,688 $2,001 $2,500 $2,732 $2,991 Nov. - Dec. League $/Team $450 $450 $495 $495 $520 6 7 8 8 9 1 $2,588 $3,068 $3,833 $4,189 $4,587 Jan. - Feb. League $/Team $450 $450 $495 $495 $520 8 9 10 11 12 1 $3,375 $4,002 $5,000 $5,464 $5,983 Mar. - Apr. League $/Team $450 $450 $495 $495 $520 10 11 13 14 15 1 $4,275 $5,069 $6,333 $6,921 $7,578 May - June League $/Team $450 $450 $495 $495 $520 6 7 8 8 9 1 $2,588 $3,068 $3,833 $4,189 $4,587 July - Aug. League $/Team $450 $450 $495 $495 $520 6 7 8 8 9 1 $2,588 $3,068 $3,833 $4,189 $4,587

1.00 1.10 1.00 1.05 1.19 1.14 1.09 1.04

1.10 1.10 1.10 1.10 1.00 1.00 1.00 1.00
$18,240 $21,629 $27,023 $29,531 $32,334
Cost of Goods Sold Year 1 Year 2 Year 3 Year 4 Year 5
Basketball Director Responsibility of Management Team $0 $0 $0 $0 $0 Basketball Staff 5% Gross Revenue $912 $1,081 $1,351 $1,477 $1,617 Referee Fees Avg. $50/Game $7,600 $9,012 $10,236 $11,186 $11,665 Instructor Fees 25% Instructor Revenue $0 $0 $0 $0 $0
Equipment and Supplies 5% Gross Revenue $912 $1,081 $1,351 $1,477 $1,617 Awards 2% Gross Revenue $365 $433 $540 $591 $647
$9,789 $11,608 $13,479 $14,729 $15,545
$8,451 $10,021 $13,544 $14,801 $16,790
Pricing Notes Clinics Camps Individual Instruction
Turtle Bay School Reign BB Clinic Reign Basketball Camp Reign Basketball Individual Skill Development Redding, CA Redding, CA Redding, CA
$75 / 3 days $125 / 5 days $35 / 45 minutes
Stockton Kings JR Kings Dribble, Shoot, and Score Clinic NBC Basketball Camp at Simpson University Precision Basketball Academy 1-1 Session Sacramento, CA Redding, CA Redding, CA
$85 / 1 - 2 hour session $695 / 4-12 hour days $100 / 1 hour Hardwood Palace Sunday Skills Clinic Enterprise HS/Shasta HS Todd Franklin Basketball Camp Sacramento Skills Academy Private Training Rocklin, CA Redding, CA Sacramento, CA
$100 / 3 - 2 hour sessions $140 / 4 days $350 / 5 - 1 hour sessions Precision Basketball Academy Shasta College - Enjoy the Journey Baasketball Camp Redding, CA Redding, CA
$85 / 2 - 2 hour sessions $135 / 4 half days
Leagues Club Team
Anderson Rec Basketball League Warlords Club Basketball Lompoc, CA Redding, CA
$45 / 8 weeks, price per player $175 / 1 year
Redding Youth Basketball SolCal Delta Team
Redding, CA Redding, CA
$100 / 8 weeks $670 / 2 seasons
CrossPoint Church Basketball League SolCal Elite Travel Team Redding, CA Redding, CA
$100 / 10 weeks $900 / 4 months
Reign Basketball League
Redding, CA
$400 / 1 season, price per team
Oroville YMCA Coed Youth Basketball
Oroville, CA
$108 / 9 weeks
Non-Capacity Growth Rate
Capacity growth rate
Total Revenue
Total Cost of Goods Sold
Net Revenue
Management Assumption
SFA researched and analyzed the prices for comparable facilities and programs within the Redding, CA market. The prices reflected above are based on the analysis and either in line or slightly above current year market rates. SFA also took into consideration the goals of the City of Redding as well as demographic and socioeconomic factors of the community.

Basketball Revenue & Expenses
Program Fees Number of Registrations Sellable
Sessions Revenue Management Assumption Year 1 Year 2 Year 3 Year 4 Year 5 19 DRAFT
Packet Pg. 1007 Attachment: 8-Court Five-Year Operating Pro Forma - Third Party Management (9.6(c)--Oral Presentation Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Instructional Clinics $/Session $175 $175 $193 $193 $202 - - - - - 5 $0 $0 $0 $0 $0 Instructional Camps (Full Days) $/Week $200 $200 $220 $220 $231 - - - - - 5 $0 $0 $0 $0 $0 Individual Instruction $/Hour $75 $75 $83 $83 $87 - - - - - 12 $0 $0 $0 $0 $0 Drop-in/Other Income $/Session $5 $5 $6 $6 $6 - - - - - 12 $0 $0 $0 $0 $0 League
Sept. - Oct. League $/Team $350 $350 $385 $385 $404 - - - - - 1 $0 $0 $0 $0 $0 Nov. - Dec. League $/Team $350 $350 $385 $385 $404 - - - - - 1 $0 $0 $0 $0 $0 Jan. - Feb. League $/Team $350 $350 $385 $385 $404 - - - - - 1 $0 $0 $0 $0 $0 Mar. - Apr. League $/Team $350 $350 $385 $385 $404 - - - - - 1 $0 $0 $0 $0 $0 May - June League $/Team $350 $350 $385 $385 $404 - - - - - 1 $0 $0 $0 $0 $0 July - Aug. League $/Team $350 $350 $385 $385 $404 - - - - - 1 $0 $0 $0 $0 $0

1.00 1.10 1.00 1.05 1.18 1.13 1.09 1.04

1.10 1.10 1.10 1.10 1.00 1.00 1.00 1.00
$0 $0 $0 $0 $0
Cost of Goods Sold Year 1 Year 2 Year 3 Year 4 Year 5
Volleyball Director Responsibility of Management Team $0 $0 $0 $0 $0 Volleyball Staff 5% Gross Revenue $0 $0 $0 $0 $0
Referee Fees Avg. $20/Game $0 $0 $0 $0 $0
Instructor Fees 25% Instructor Revenue $0 $0 $0 $0 $0
Equipment and Supplies 5% Gross Revenue $0 $0 $0 $0 $0
Awards 2% Gross Revenue $0 $0 $0 $0 $0
$0 $0 $0 $0 $0
$0 $0 $0 $0 $0
Pricing Notes Clinics Camps Individual Instruction Leagues NorCal VB Club Shasta College North State VB NorCal VB Club Private Lessons City of Redding Youth VB League Napa, CA Redding, CA Livermore, CA Redding, CA
$40 / 1 1.5 hour session $99 / 3 days $75 / 1 hour $95 / 10 weeks Liberty Christian School Indoor Clinic Enterprise Hornets VB Camp House of Hustle Private Lesson City of Redding Adult VB League Fairfield, CA Redding, CA Hayward, CA Redding, CA
$300 / 4 - 2 hour sessions $60 / 3 half days $285 / 1 session (including gym rental) $160 / 12 weeks Napa Valley Indoor VB Club NorCal VB All Skills Camp Bay Area VB Club NorCal VB Fall Ball Napa, CA Livermore, CA Concord, CA Livermore, CA
$35 / 1 session $295 / 4 half days $65 / 1 hour $590 / 10 weeks Solano College Summer VB Clinic NorCal VB Jrs Summer Camp 2024 Quijote Sports AAU League Fairfield, CA Livermore, CA Redding, CA
$100 / 3 - 2.5 hour sessions $215 / 4 - 2 hour days $1400 / 5 tournaments Legacy Gym VB Summer Camp Redding Adult VB - 6 person league Valencia, CA Redding, CA
$245 / 4 - 2 hour days $200 / 8 weeks
Club Teams
North State Volleyball Academy Club
Redding, CA
$2,000 / 7 months
OVA VB 2024 Premier Teams
Sacramento, CA
$1,995 8 tounaments
Shasta VB Club Team - Local Team
Redding, CA
$475 / 5 tournaments
Net Revenue
Total Cost of Goods Sold
Total Revenue
Management Assumption
Existing volleyball programs are reflected in court rental time as non-revenue utilization at the new sports facility.Therefore, there is currently no revenue associated with the volleyball business unit.

SFA researched and analyzed the prices for comparable facilities and programs within the Redding, CA market. The prices reflected above are based on the analysis and either in line or slightly above current year market rates.

SFA also took into consideration the goals of the City of Redding as well as demographic and socioeconomic factors of the community.

Non-Capacity Growth Rate
Capacity growth rate
Volleyball Revenue & Expenses
Program Fees Number of Registrations Sellable
Sessions Revenue Management Assumption Year 1 Year 2 Year 3 Year 4 Year 5 20 DRAFT
Packet Pg. 1008 Attachment: 8-Court Five-Year Operating Pro Forma - Third Party Management (9.6(c)--Oral Presentation Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Small Court Rentals
Sept. - Oct. $/Hour $42 $42 $44 $44 $46 156 161 166 170 176 1 $6,552 $6,749 $7,299 $7,518 $8,130 Nov. - Dec. $/Hour $42 $42 $44 $44 $46 156 161 166 170 176 1 $6,552 $6,749 $7,299 $7,518 $8,130 Jan. - Feb. $/Hour $42 $42 $44 $44 $46 228 235 242 249 257 1 $9,576 $9,863 $10,667 $10,987 $11,883 Mar. - Apr. $/Hour $42 $42 $44 $44 $46 228 235 242 249 257 1 $9,576 $9,863 $10,667 $10,987 $11,883 May - June $/Hour $42 $42 $44 $44 $46 - - - - - 1 $0 $0 $0 $0 $0 July - Aug $/Hour $42 $42 $44 $44 $46 - - - - - 1 $0 $0 $0 $0 $0 Parks & Recreation - Volleyball
Sept. - Oct. $/Hour $0 $0 $0 $0 $0 480 494 509 525 540 1 $0 $0 $0 $0 $0 Nov. - Dec. $/Hour $0 $0 $0 $0 $0 120 124 127 131 135 1 $0 $0 $0 $0 $0 Jan. - Feb. $/Hour $0 $0 $0 $0 $0 160 165 170 175 180 1 $0 $0 $0 $0 $0 Mar. - Apr. $/Hour $0 $0 $0 $0 $0 500 515 530 546 563 1 $0 $0 $0 $0 $0 May - June $/Hour $0 $0 $0 $0 $0 - - - - - 1 $0 $0 $0 $0 $0 July - Aug $/Hour $0 $0 $0 $0 $0 - - - - - 1 $0 $0 $0 $0 $0 Large Court Rentals
Sept. - Oct. $/Hour $70 $70 $74 $74 $77 168 173 178 184 189 1 $11,760 $12,113 $13,100 $13,493 $14,593 Nov. - Dec. $/Hour $70 $70 $74 $74 $77 216 222 229 236 243 1 $15,120 $15,574 $16,843 $17,348 $18,762 Jan. - Feb. $/Hour $70 $70 $74 $74 $77 294 303 312 321 331 1 $20,580 $21,197 $22,925 $23,613 $25,537 Mar. - Apr. $/Hour $70 $70 $74 $74 $77 342 352 363 374 385 1 $23,940 $24,658 $26,668 $27,468 $29,707 May - June $/Hour $70 $70 $74 $74 $77 138 142 146 151 155 1 $9,660 $9,950 $10,761 $11,084 $11,987 July - Aug $/Hour $70 $70 $74 $74 $77 138 142 146 151 155 1 $9,660 $9,950 $10,761 $11,084 $11,987 Parks & Recreation - Youth Basketball
Sept. - Oct. $/Hour $0 $0 $0 $0 $0 - - - - - 1 $0 $0 $0 $0 $0 Nov. - Dec. $/Hour $0 $0 $0 $0 $0 675 695 716 738 760 1 $0 $0 $0 $0 $0 Jan. - Feb. $/Hour $0 $0 $0 $0 $0 1,200 1,236 1,273 1,311 1,351 1 $0 $0 $0 $0 $0 Mar. - Apr. $/Hour $0 $0 $0 $0 $0 - - - - - 1 $0 $0 $0 $0 $0 May - June $/Hour $0 $0 $0 $0 $0 - - - - - 1 $0 $0 $0 $0 $0 July - Aug $/Hour $0 $0 $0 $0 $0 - - - - - 1 $0 $0 $0 $0 $0

1.00 1.05 1.00 1.05 1.03 1.03 1.03 1.03
Capacity growth rate 1.10 1.10 1.10 1.10 1.00 1.00 1.00 1.00 $122,976 $126,665 $136,989 $141,098 $152,598
Cost of Goods Sold Year 1 Year 2 Year 3 Year 4 Year 5
Supervision/Maintenance Staff 5% Gross Revenue $6,149 $6,333 $6,849 $7,055 $7,630 $6,149 $6,333 $6,849 $7,055 $7,630
$116,827 $120,332 $130,139 $134,043 $144,968
Pricing Notes Court Rental Fees
Shasta Athletic Club Hardwood Palace - Single Court
Redding, CA Rocklin, CA
$140 / 1 day $65/hour/court
Sequoia School Hardwood Palace - Mutli Court
Redding, CA Rocklin, CA
$150 / 2 hours $55/hour/court
Foothill High School - VB Court Rental Anderson Recreation Center - Private Half Day Rental Redding, CA Lompoc, CA
$25 / hour $700 / 6 hours
Red Bluff VB Court Rental Anderson Recreation Center - Private Full Day Rental Red Bluff, CA Lompoc, CA
$30 / hour $1400 / 12 hours
Red Bluff VB Court Rental - Tournament CrossPoint Church Red Bluff, CA Redding, CA
$1,000 / day $75-$100/hour
SFA researched and analyzed the prices for comparable facilities and programs within the Redding, CA market. The prices reflected above are based on the analysis and either in line or slightly above current year market rates. SFA also took into consideration the goals of the City of Redding as well as demographic and socioeconomic factors of the community.

Non-Capacity Growth Rate
Management Assumption
Court Rentals Revenue & Expenses
Total Revenue
Total Cost of Goods Sold
Net Revenue
Revenue Year 3 Year 4 Year 5 Management
Assumption
Rental Fees Number of Rentals Sellable
Sessions Year 1 Year 2
21 DRAFT
Packet Pg. 1009 Attachment: 8-Court Five-Year Operating Pro Forma - Third Party Management (9.6(c)--Oral Presentation Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Virtual Reality
Per Cap Spend $2.05 $2.05 $2.15 $2.15 $2.26 19,959 26,542 28,036 31,630 33,072 1 $40,917 $54,410 $60,347 $68,084 $74,748 Laser Tag
Per Cap Spend $4.00 $4.00 $4.20 $4.20 $4.41 19,959 26,542 28,036 31,630 33,072 1 $79,837 $106,167 $117,750 $132,846 $145,849 Arcade
Per Cap Spend $10.00 $10.00 $10.50 $10.50 $11.03 19,959 26,542 28,036 31,630 33,072 1 $199,594 $265,417 $294,374 $332,115 $364,623 Play Climb/Adventure/Ropes Course
Per Cap Spend $2.00 $2.00 $2.10 $2.10 $2.21 19,959 26,542 28,036 31,630 33,072 1 $39,919 $53,083 $58,875 $66,423 $72,925 Non-Capacity Growth Rate 1.00 1.05 1.00 1.05 1.10 1.03 1.03 1.01 Capacity growth rate 1.10 1.10 1.10 1.10 1.00 1.00 1.00 1.00 $360,267 $479,078 $531,345 $599,467 $658,144
Cost of Goods Sold Year 1 Year 2 Year 3 Year 4 Year 5
FEC/Adventure Area Management Responsibility of Management Team $0 $0 $0 $0 $0 FEC/Adventure Area Staff 15% Gross Revenue $54,040 $71,862 $79,702 $89,920 $98,722 Maintenance & Repairs 10% Gross Revenue $36,027 $47,908 $53,135 $59,947 $65,814 Equipment & Supplies 10% Gross Revenue $36,027 $47,908 $53,135 $59,947 $65,814 $126,093 $167,677 $185,971 $209,814 $230,350
$234,173 $311,401 $345,375 $389,654 $427,794
Total Revenue
Total Cost of Goods Sold
Net Revenue
Management Assumption
FEC/Adventure Area Revenue & Expenses
Revenue Per Cap Spend Number of Visitors Sellable
Sessions Management Assumption Year 1 Year 2 Year 3 Year 4 Year 5 22 DRAFT
Packet Pg. 1010 Attachment: 8-Court Five-Year Operating Pro Forma - Third Party Management (9.6(c)--Oral Presentation Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Sessions
Sports Performance Training - Ind. $/Session $65 $65 $72 $72 $75 81 97 102 107 107 12 $63,060 $75,672 $87,401 $91,771 $96,360 Sports Performance Training - Team $/Session $150 $150 $165 $165 $173 12 15 15 16 16 12 $21,829 $26,194 $30,254 $31,767 $33,355 Sports Performance Clinic $/Session $175 $175 $193 $193 $202 8 10 10 11 11 4 $5,600 $6,720 $7,762 $8,150 $8,557 Non-Capacity Growth Rate 1.00 1.10 1.00 1.05 1.20 1.05 1.05 1.00 Capacity growth rate 1.10 1.10 1.10 1.10 1.00 1.00 1.00 1.00 $90,489 $108,586 $125,417 $131,688 $138,273
Cost of Goods Sold Year 1 Year 2 Year 3 Year 4 Year 5
Fitness & Training Management 10% Gross Revenue $9,049 $10,859 $12,542 $13,169 $13,827 Fitness & Training Instructors 50% Personal Training, 25% Group Training $38,387 $46,065 $53,205 $55,865 $58,658 Equipment and Supplies 2% Gross Revenue $1,810 $2,172 $2,508 $2,634 $2,765 $49,246 $59,095 $68,255 $71,668 $75,251
$41,243 $49,491 $57,163 $60,021 $63,022
Pricing Notes Sports Performance PT Sports Performance Individual Training Sports Performance Team Training Shasta Orthopedic PT Pro Athletic SP - Speed & Agility Training Shasta Orthopedic Redding, CA Redding, CA Redding, CA
$35 / 1 hour $125 / 4 hours $25 / person / hour
Shasta Orthopedic - 16 session package Pro Athletic SP - Performance Strength & Conditioning Fleet Feet Redding Speed Training Camp Redding, CA Redding, CA Redding, CA
$30 / 1 hour $325 / 12 hours $450 / 8 hours - 10 people, 2 sessions for 4 weeks Vance Training
Redding, CA
$89 / 1 hour
SFA researched and analyzed the prices for comparable facilities and programs within the Redding, CA market. The prices reflected above are based on the analysis and either in line or slightly above current year market rates. SFA also took into consideration the goals of the City of Redding as well as demographic and socioeconomic factors of the community.

Total Revenue
Total Cost of Goods Sold
Net Revenue
Management Assumpion
Fitness & Training Revenue & Expenses
Revenue Management Assumption
Program Fees Number of Registrations Sellable
Sessions Year 1 Year 2 Year 3 Year 4 Year 5
23 DRAFT
Packet Pg. 1011 Attachment: 8-Court Five-Year Operating Pro Forma - Third Party Management (9.6(c)--Oral Presentation Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Sports/FEC Parties $/Party (Avg 15 Kids) $300 $300 $330 $330 $347 6 7 8 8 8 12 $21,600 $25,920 $29,938 $31,434 $34,657 Non-Capacity Growth Rate 1.00 1.10 1.00 1.05 1.20 1.05 1.05 1.05 Capacity growth rate 1.10 1.10 1.10 1.10 1.00 1.00 1.00 1.00 $21,600 $25,920 $29,938 $31,434 $34,657
Cost of Goods Sold Year 1 Year 2 Year 3 Year 4 Year 5
Birthday and Group Party Management Responsibility of Management Team $0 $0 $0 $0 $0 Birthday and Group Party Staff 2 Hr./Party plus set up & clean, 1 Employee/Party, $15/Hr. per Employee $2,160 $2,592 $2,722 $2,858 $3,001 Birthday and Group Party Supplies 4% Gross Revenue $864 $1,037 $1,198 $1,257 $1,386 Birthday and Group Party Food 15% Gross Revenue $3,240 $3,888 $4,491 $4,715 $5,198 $6,264 $7,517 $8,410 $8,830 $9,585
$15,336 $18,403 $21,528 $22,604 $25,071
Pricing Notes Sport Birthday Parties FEC Birthday Parties Ninja Coalition Rare Air Park Arcade Adventure Park
Redding, CA Redding, CA
$325 / 2 hours / 8 participants $210 / 2 hours / 10 kids NorCal Elite Gymnastics Shasta Rock Club
Redding, CA Redding, CA
$300 / 2 hours / 15 participants $175 / 1.5 hours
Country Bowl
Redding, CA
$15 / kid / 2 hours
SFA researched and analyzed the prices for comparable facilities and programs within the Redding, CA market. The prices reflected above are based on the analysis and either in line or slightly above current year market rates. SFA also took into consideration the goals of the City of Redding as well as demographic and socioeconomic factors of the community.

Total Revenue
Total Cost of Goods Sold
Net Revenue
Birthday Parties Revenue & Expenses
Revenue Party Fees Number of Parties Sellable
Sessions Management Assumption Year 1 Year 2 Year 3 Year 4 Year 5 Management Assumption
24 DRAFT
Packet Pg. 1012 Attachment: 8-Court Five-Year Operating Pro Forma - Third Party Management (9.6(c)--Oral Presentation Year 1 Year 2 Year 3 Year 4 Year 5 Year 1 Year 2 Year 3 Year 4 Year 5 Half-Day Camp $/Week $105 $105 $116 $116 $121 12 13 14 15 15 10 $12,600 $13,860 $16,008 $16,809 $18,532 Full Day Camp $/Week $175 $175 $193 $193 $202 25 28 29 30 32 10 $43,750 $48,125 $55,584 $58,364 $64,346 Single Day Camps $/Day $35 $35 $39 $39 $40 25 28 29 30 32 12 $10,500 $11,550 $13,340 $14,007 $15,443 Camp Day-Care $/Day $10 $10 $11 $11 $12 108 118 124 130 137 10 $10,750 $11,825 $13,658 $14,341 $15,811 Non-Capacity Growth Rate 1.00 1.10 1.00 1.05 1.10 1.05 1.05 1.05 Capacity growth rate 1.10 1.10 1.10 1.10 1.00 1.00 1.00 1.00 $77,600 $85,360 $98,591 $103,520 $114,131
Cost of Goods Sold Year 1 Year 2 Year 3 Year 4 Year 5
Youth Programming Management Responsibility of Management Team $0 $0 $0 $0 $0 Camp Instructors 35% Gross Revenue $27,160 $29,876 $34,507 $36,232 $39,946 Equipment & Consumables 3% Gross Revenue $2,328 $2,561 $2,958 $3,106 $3,424 Camp Lunch 2.5% Gross Revenue $1,940 $2,134 $2,465 $2,588 $2,853 T-Shirts $4/Shirt $1,480 $1,628 $1,709 $1,795 $1,885
$32,908 $36,199 $41,639 $43,721 $48,108
$44,692 $49,161 $56,952 $59,800 $66,023
Pricing Notes Youth Programming Camps
City of Redding Adventure Camp Redding Nuts and Bolts Camp Redding, CA Redding, CA
$165 / 1 week $76 / 1 week
Caldwell Recreation Center - Camp Caldwell Boulder Creek YMCA Winter Camp Redding, CA Boulder Creek, CA
$160 / 1 week $170 / 4 days
Camp Eureka Turtle Bay Exploration Park
Redding, CA Redding, CA
$165 / 1 week $135 / 3 days
Shaska Lake Camp Redding Performing Arts Center
Redding, CA Redding, CA
$75 / 1 week $120 / 5 half days
SFA researched and analyzed the prices for comparable facilities and programs within the Redding, CA market. The prices reflected above are based on the analysis and either in line or slightly above current year market rates. SFA also took into consideration the goals of the City of Redding as well as demographic and socioeconomic factors of the community.

Year 5
Total Revenue
Total Cost of Goods Sold
Net Revenue
Management Assumption
Youth Programming Revenue & Expenses
Revenue Program Fees Number of Registrations Sellable
Sessions Year 1 Year 2 Year 3 Year 4 Management Assumption 25 DRAFT
Packet Pg. 1013 Attachment: 8-Court Five-Year Operating Pro Forma - Third Party Management (9.6(c)--Oral Presentation Year 1 Year 2 Year 3 Year 4 Year 5
Rental Basketball - Small2 $2.00 6 6 5 4 4 640 $15,360 $15,360 $12,800 $10,240 $10,240 Rental Basketball - Medium2 $2.00 4 4 4 4 4 960 $15,360 $15,360 $15,360 $15,360 $15,360 Rental Basketball - Large2 $2.00 1 3 5 6 6 1280 $5,120 $15,360 $25,600 $30,720 $30,720 Rental Basketball - Extra Large 2.5 $2.00 - - - - - 1920 $0 $0 $0 $0 $0 Rental Volleyball - Small1 $2.00 3 3 4 4 4 960 $5,760 $5,760 $7,680 $7,680 $7,680 Rental Volleyball - Medium2 $2.00 1 2 2 3 3 1280 $5,120 $10,240 $10,240 $15,360 $15,360 Rental Volleyball - Large3 $2.00 1 2 2 2 3 1920 $11,520 $23,040 $23,040 $23,040 $34,560 Rental Volleyball - Extra Large3 $2.00 - 1 1 2 2 2560 $0 $15,360 $15,360 $30,720 $30,720 Other Court Sport Rental - 1 Day Event1 $2.00 2 2 2 2 2 640 $2,560 $2,560 $2,560 $2,560 $2,560 Other Court Sport Rental - 2 Day Event2 $2.00 1 2 2 3 3 1280 $5,120 $10,240 $10,240 $15,360 $15,360 19 25 27 30 31
$65,920 $113,280 $122,880 $151,040 $162,560
Cost of Goods Sold Year 1 Year 2 Year 3 Year 4 Year 5
$0 $0 $0 $0 $0
Net Revenue $65,920 $113,280 $122,880 $151,040 $162,560 Facility Fees Revenue & Expenses
Event Type Event Days Facility Fee Year 5 Number of Events per Year Daily Attendees (Non-Athletes) Year 1 Year 2 Year 3 Year 4
Total Revenue
Total Cost of Goods Sold
Management Assumption
26 DRAFT
Packet Pg. 1014 Attachment: 8-Court Five-Year Operating Pro Forma - Third Party Management (9.6(c)--Oral Presentation Revenue Management Assumption Year 1 Year 2 Year 3 Year 4 Year 5 Concessions Sales - Local $9,787 $10,384 $10,822 $11,245 $11,594 Concessions Sales - Tournament $180,960 $299,040 $326,400 $395,520 $421,440 Concessions Sales - FEC $56,445 $62,090 $63,952 $65,871 $66,530 $247,192 $371,513 $401,174 $472,636 $499,564
Cost of Goods Sold Management Assumption Year 1 Year 2 Year 3 Year 4 Year 5 Concessions Food 30% Concession Sales $74,158 $111,454 $120,352 $141,791 $149,869 Concessions Wages 25% Concession Sales $61,798 $92,878 $100,294 $118,159 $124,891 $135,955 $204,332 $220,646 $259,950 $274,760
$111,236 $167,181 $180,528 $212,686 $224,804
Total Revenue
Total Cost of Goods Sold
Net Revenue
Food & Beverage Revenue & Expenses
27 DRAFT
Packet Pg. 1015 Attachment: 8-Court Five-Year Operating Pro Forma - Third Party Management (9.6(c)--Oral Presentation Year 1 Year 2 Year 3 Year 4 Year 5
Rental Basketball - Small 60% non-local attendance 1.5 $2.25 6 6 5 4 4 192 384 192 50% $1,941 $1,941 $1,618 $1,294 $1,294 Rental Basketball - Medium 70% non-local attendance 1.5 $2.25 4 4 4 4 4 336 672 336 50% $2,265 $2,265 $2,265 $2,265 $2,265 Rental Basketball - Large 80% non-local attendance 1.5 $2.25 1 3 5 6 6 512 1024 512 50% $863 $2,589 $4,314 $5,177 $5,177 Rental Basketball - Extra Large 90% non-local attendance 2 $2.25 - - - - - 864 1728 864 50% $0 $0 $0 $0 $0 Rental Volleyball - Small 35% non-local attendance 0.5 $2.25 3 3 4 4 4 168 336 168 50% $283 $283 $377 $377 $377 Rental Volleyball - Medium 70% non-local attendance 1.5 $2.25 1 2 2 3 3 448 896 448 50% $755 $1,510 $1,510 $2,265 $2,265 Rental Volleyball - Large 80% non-local attendance 2.5 $2.25 1 2 2 2 3 768 1536 768 50% $2,157 $4,314 $4,314 $4,314 $6,471 Rental Volleyball - Extra Large 90% non-local attendance 2.5 $2.25 - 1 1 2 2 1152 2304 1152 50% $0 $3,236 $3,236 $6,471 $6,471 Other Court Sport Rental - 1 Day Event 35% non-local attendance 0.5 $2.25 2 2 2 2 2 112 224 112 50% $126 $126 $126 $126 $126 Other Court Sport Rental - 2 Day Event 80% non-local attendance 1.5 $2.25 1 2 2 3 3 512 1024 512 50% $863 $1,726 $1,726 $2,589 $2,589 Hotel Commissions 2.1% Total Hotel Room Revenue $9,253 $17,989 $19,486 $24,879 $27,036 19 25 27 30 31
$18,506 $35,979 $38,972 $49,758 $54,072
Cost of Goods Sold Year 1 Year 2 Year 3 Year 4 Year 5
$0 $0 $0 $0 $0
$0 $0 $0 $0 $0
$18,506 $35,979 $38,972 $49,758 $54,072
Year 4 Year 5
Hotel Rebates
Revenue Management Assumption Nights Per Event Venue
Rebate Rate
Number of Events per Year # Non-Local
Participants
# Non-Local
Fans
Hotel
Rooms/Night Year 1
Total Revenue
Total Cost of Goods Sold
Net Revenue
Year 2 Year 3 Rebate
Capture
28 DRAFT
Packet Pg. 1016 Attachment: 8-Court Five-Year Operating Pro Forma - Third Party Management (9.6(c)--Oral Presentation Revenue Management Assumption Year 1 Year 2 Year 3 Year 4 Year 5 Retail Sales $13,003 $18,096 $19,713 $22,766 $23,854
$13,003 $18,096 $19,713 $22,766 $23,854
Cost of Goods Sold Management Assumption Year 1 Year 2 Year 3 Year 4 Year 5 Retail Product Cost 55% Retail Sales $7,152 $9,953 $10,842 $12,521 $13,120 Retail Wages 15% Retail Sales $1,950 $2,714 $2,957 $3,415 $3,578 $9,102 $12,667 $13,799 $15,936 $16,698
$3,901 $5,429 $5,914 $6,830 $7,156
Total Revenue
Total Cost of Goods Sold
Net Revenue
Retail Revenue & Expenses
29 DRAFT
Packet Pg. 1017 Attachment: 8-Court Five-Year Operating Pro Forma - Third Party Management (9.6(c)--Oral Presentation Area (Sq./ft.) $ per Sq./ft. Year 1 Year 2 Year 3 Year 4 Year 5 Tenant Lease Agreements
Leased Space - Medical 10,000 $25.00 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000 $250,000
- - - - -
$250,000 $250,000 $250,000 $250,000 $250,000
Tenant Revenue
Total Revenue
Total Cost of Goods Sold
Net Revenue
Leased Space Revenue
30 DRAFT
Packet Pg. 1018 Attachment: 8-Court Five-Year Operating Pro Forma - Third Party Management (9.6(c)--Oral Presentation Revenue Management Assumption Year 1 Year 2 Year 3 Year 4 Year 5 Sponsorship/Advertisement Income $135,000 $135,000 $162,000 $162,000 $180,000 $135,000 $135,000 $162,000 $162,000 $180,000
Cost of Goods Sold Management Assumption Year 1 Year 2 Year 3 Year 4 Year 5 Sponsorship COGS 25% Sponsorship Revenue $33,750 $33,750 $40,500 $40,500 $45,000 $33,750 $33,750 $40,500 $40,500 $45,000
$101,250 $101,250 $121,500 $121,500 $135,000
Sponsorship & Advertisement Revenue
Net Revenue
Total Cost of Goods Sold
Total Revenue
31 DRAFT
Packet Pg. 1019 Attachment: 8-Court Five-Year Operating Pro Forma - Third Party Management (9.6(c)--Oral Presentation Overhead Expenses
32 DRAFT
Packet Pg. 1020 Attachment: 8-Court Five-Year Operating Pro Forma - Third Party Management (9.6(c)--Oral Presentation by The Sports Facilities Companies on Indoor Facility/Buildings
Indoor Facility Expense Management Assumption Year 1 Year 2 Year 3 Year 4 Year 5 Alarm System Maintenance $5,000 $5,075 $5,151 $5,228 $5,307 Janitorial Expenses Cleaning and Supplies $75,935 $81,131 $83,612 $86,919 $88,951 Safety Supplies Includes Year 1 Purchase $5,000 $2,000 $2,030 $2,060 $2,091 Grounds Maintenance, Labor, & Lighting Based on Site Development $30,000 $30,450 $30,907 $31,370 $31,841 Maintenance & Repairs Excludes Capital Replacement $47,870 $48,588 $49,316 $50,056 $50,807 Utility Expense Electricity, Gas, Water, Trash, etc. $271,875 $275,953 $280,092 $284,293 $288,558 Total Facility Expense $435,679 $443,196 $451,108 $459,927 $467,555 Facility Expenses
33 DRAFT
Packet Pg. 1021 Attachment: 8-Court Five-Year Operating Pro Forma - Third Party Management (9.6(c)--Oral Presentation by The Sports Facilities Companies on Expense Management Assumption Year 1 Year 2 Year 3 Year 4 Year 5 Accounting Fees $10,000 $10,150 $10,302 $10,457 $10,614 Bank Service Charges Banking Fees, Credit Card Processing $23,109 $31,447 $35,155 $40,022 $43,350 Communications IT, Phone, Cable, Internet $22,016 $22,346 $22,681 $23,021 $23,366 Dues/Subscriptions $500 $508 $515 $523 $531
Employee Uniforms $2,000 $2,030 $2,060 $2,091 $2,123
Marketing and Advertising $34,664 $31,447 $35,155 $40,022 $43,350 Insurance General, Property, Liability (covered by City) $0 $0 $0 $0 $0 Legal Fees $15,000 $15,225 $15,453 $15,685 $15,920
Licenses, Permits Food, Music, etc. $15,000 $15,225 $15,453 $15,685 $15,920 National Management & Marketing Service $240,000 $240,000 $240,000 $240,000 $240,000 National Management Travel $18,000 $12,000 $12,000 $12,000 $12,000 Office Supplies $11,742 $11,918 $12,096 $12,278 $12,462 Real Estate Tax Public Ownership $0 $0 $0 $0 $0
Software Operating, Scheduling, POS, Registration $14,400 $14,616 $14,835 $15,058 $15,284 Travel and Education $10,000 $10,150 $10,302 $10,457 $10,614 Total Operating Expenses $416,430 $417,062 $426,010 $437,299 $445,533 Operating Expenses
34 DRAFT
Packet Pg. 1022 Attachment: 8-Court Five-Year Operating Pro Forma - Third Party Management (9.6(c)--Oral Presentation by The Sports Facilities Companies on Management Position Management Assumption Year 1 Year 2 Year 3 Year 4 Year 5 General Manager $110,000 $114,400 $118,976 $123,735 $128,684 Director of Operations $70,000 $72,800 $75,712 $78,740 $81,890 Marketing & Business Development Director $65,000 $67,600 $70,304 $73,116 $76,041 FEC Manager $50,000 $52,000 $54,080 $56,243 $58,493
Program Director $50,000 $52,000 $54,080 $56,243 $58,493 Indoor Facility Manager $53,500 $55,640 $57,866 $60,180 $62,587 Food & Beverage Manager $0 $55,000 $57,200 $59,488 $61,868 Finance Manager $65,000 $67,600 $70,304 $73,116 $76,041 Admin Support Part Time - Front Desk $60,000 $62,400 $64,896 $67,492 $70,192 $523,500 $599,440 $623,418 $648,354 $674,288
Management Payroll Summary
Total Management Payroll
35 DRAFT
Packet Pg. 1023 Attachment: 8-Court Five-Year Operating Pro Forma - Third Party Management (9.6(c)--Oral Presentation by The Sports Facilities Companies on Total Payroll Summary Management
Assumption Pre-Open Year 1 Year 2 Year 3 Year 4 Year 5
Mgmt General Manager 12 months prior $110,000 $110,000 $114,400 $118,976 $123,735 $128,684 Mgmt Director of Operations 9 months prior $52,500 $70,000 $72,800 $75,712 $78,740 $81,890 Mgmt Marketing & Business Development Director 12 months prior $65,000 $65,000 $67,600 $70,304 $73,116 $76,041 Mgmt FEC Manager 3 months prior $12,500 $50,000 $52,000 $54,080 $56,243 $58,493 Mgmt Program Director 3 months prior $12,500 $50,000 $52,000 $54,080 $56,243 $58,493 Mgmt Indoor Facility Manager 3 months prior $13,375 $53,500 $55,640 $57,866 $60,180 $62,587 Mgmt Food & Beverage Manager 3 months prior $0 $0 $55,000 $57,200 $59,488 $61,868 Mgmt Finance Manager 6 months prior $32,500 $65,000 $67,600 $70,304 $73,116 $76,041 Support Admin Support 1 month prior $5,000 $60,000 $62,400 $64,896 $67,492 $70,192 Subtotal Management Payroll $303,375 $523,500 $599,440 $623,418 $648,354 $674,288 Director Fitness & Training Management Allotment 3 months prior $2,262 $9,049 $10,859 $12,542 $13,169 $13,827 Subtotal Program Management $2,262 $9,049 $10,859 $12,542 $13,169 $13,827 Staff Basketball Rental Tournament Staff 1 month prior $560 $6,720 $8,640 $11,088 $11,616 $12,197 Staff Volleyball Rental Tournament Staff 1 month prior $277 $3,326 $7,106 $8,316 $10,977 $13,098 Staff Court Rental Event Staff 1 month prior $160 $1,920 $2,880 $3,168 $4,224 $4,435 Staff Basketball Staff 1 month prior $76 $912 $1,081 $1,351 $1,477 $1,617 Staff Volleyball Staff 1 month prior $0 $0 $0 $0 $0 $0
Staff Court Rental Staff 1 month prior $512 $6,149 $6,333 $6,849 $7,055 $7,630 Staff FEC/Adventure Staff 1 month prior $4,503 $54,040 $71,862 $79,702 $89,920 $98,722 Staff Birthday Party Staff 1 month prior $180 $2,160 $2,592 $2,722 $2,858 $3,001 Staff Food & Beverage Staff 1 month prior $5,150 $61,798 $92,878 $100,294 $118,159 $124,891 Staff Retail Staff 1 month prior $163 $1,950 $2,714 $2,957 $3,415 $3,578 Subtotal Sport Admin Staff $11,581 $138,976 $196,088 $216,447 $249,700 $269,168 Instructors Basketball Instructors Per Diem $0 $0 $0 $0 $0 Instructors Volleyball Instructors Per Diem $0 $0 $0 $0 $0 Instructors Fitness & Training Instructors Per Diem $38,387 $46,065 $53,205 $55,865 $58,658 Instructors Youth Programming Instructors Per Diem $27,160 $29,876 $34,507 $36,232 $39,946 Subtotal Instructors (COGS) $65,547 $75,941 $87,711 $92,097 $98,604 Referees Basketball Officials Per Diem $7,600 $9,012 $10,236 $11,186 $11,665 Referees Volleyball Officials Per Diem $0 $0 $0 $0 $0
Subtotal Referee/Trainers (COGS) $7,600 $9,012 $10,236 $11,186 $11,665 $317,219 $744,672 $891,339 $950,353 $1,014,506 $1,067,552 Bonus Pool 1% of Total Revenue $15,405 $19,574 $21,698 $24,131 $25,975 Payroll Services 3% of Payroll $9,517 $20,146 $24,192 $25,572 $27,337 $28,718 Payroll Taxes/Benefits 18% of Payroll $57,099 $120,874 $145,150 $153,433 $164,020 $172,311 $66,616 $156,425 $188,915 $200,703 $215,488 $227,004
$901,096 $1,080,254 $1,151,056 $1,229,994 $1,294,556
Payroll Subtotal
Payroll Taxes/Benefits/Bonus Totals
Total Payroll Cost
Payroll Summary
36 DRAFT
Packet Pg. 1024 Attachment: 8-Court Five-Year Operating Pro Forma - Third Party Management (9.6(c)--Oral Presentation by The Sports Facilities Companies on

FEASIBILITY REPORT
PREPARED FOR: CITY OF REDDING, CALIFORNIA
DRAFT REPORT DELIVERY DATE: JUN E 2024

IMPROVING COMMUNITIES THROUGH SPORT

THIS PROJECT IS REPRESENTED BY

FOR MORE INFORMATION VISIT
WWW.SPORTSFACILITIES.COM
DRAFT
Packet Pg. 1025 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 2 TABLE OF CONTENTS
2 EXECUTIVE SUMMARY
3 INTRODUCTION 12
PROCESS AND WORK COMPLETED 14
COMMUNITY ENGAGEMENT 15
KEY DATA: DEMOGRAPHIC & SOCIOECONOMIC

ANALYSIS
16 KEY DATA: SPORTS IN THE REGION 18
KEY DATA: EXISTING SERVICE PROVIDERS 21
SPORTS TOURISM INDUSTRY INSIGHTS 26
FACILITY PROGRAM & OPINION OF COST 30
BUSINESS MODEL OVERVIEW 35
FINANCIAL PERFORMANCE OVERVIEW 39
ECONOMIC IMPACT ANALYSIS 41

POTENTIAL FUNDING SOURCES AND FUNDING

CASE STUDIES
43 CONCLUSION & NEXT STEPS 48
THE SPORTS FACILITIES COMPANIES MISSION 51
ABOUT THE SPORTS FACILITIES COMPANIES 52
THE SF NETWORK 53
APPENDIX 55
DRAFT
Packet Pg. 1026 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 3 DEFINITIONS OF SUCCESS
In November of 2023, the City of Redding engaged Sports Facilities Advisory, LLC (SFA) to complete a full, fiveyear financial forecast, economic impact analysis, and production of this feasibility report to explore the potential development of a new indoor court facility in Redding, CA.

In order to understand the City of Redding’s desired outcomes, SFA facilitated an exercise to define success for the project. Based on that exercise, SFA created those desired outcomes as the “definitions of success.” As such, SFA considers meeting the following criteria critical to determining the success of the project:
§ Improve access to local recreation spaces in order to meet demand while enhancing the local quality of life
§ Achieve operational sustainability and maximize facility financial performance for operational success § Create a significant driver of economic impact to the community of Redding § Develop a premier sports tourism facility that attracts, hosts, and retains sports tournaments and events

EXECUTIVE SUMMARY
3 *Hoover, AL – Finley Center – Managed by Sports Facilities Management DRAFT
Packet Pg. 1027 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 4 RECOMMENDED FACILITY PROGRAM
4 COURT – CITY MANAGEMENT MODEL
§ Indoor Courts
§ Four (4) Basketball Courts
§ Eight (8) Volleyball Courts (Over Basketball
Courts)
§ 12 Pickleball Courts (Over Basketball Courts)
§ Family Entertainment Center/Adventure
§ Sports Performance
§ Flex Space, Support Spaces, Restrooms, Kitchen/Café
Seating Area, etc.
§ Medical Leased Space
Site Development – 3.59 Acres
§ 273 Parking Spaces
§ Setbacks, Green Space, Trails, etc.

Total Complex Acreage – 5.39 Acres
4 Based on the market analysis conducted during this scope of work, SFA’s industry experience, and Redding’s definitions of success for the project, SFA developed two recommended facility program models: a local recreation focused model and a sports tourism focused model for an indoor court-based facility. SFA developed a five-year financial forecast (pro forma) for each model. The local recreation focused model is reflected as the “4 Court – City Management” model, and the sports tourism model is reflected as the “8 Court – Third Party Management” model. A detailed breakdown of the sports and recreation assets for both models is listed below, alongside the total project development cost and approximate acreage required for the facility according to a range between low and high development costs.

EXECUTIVE SUMMARY
SFA PROJECTS THE 4 COURT – CITY

MANAGEMENT MODEL TO COST BETWEEN
APPROXIMATELY $40.4 MILLION AND
$49.3 MILLION, NOT INCLUDING LAND

ACQUISITION COSTS, AND REQUIRE
APPROXIMATELY 5.4 TOTAL ACRES OF
LAND.

SFA PROVIDES A DETAILED OPINION OF COST

WITH A DEVELOPMENT COST RANGE IN THE
“FACILITY PROGRAM & OPINION OF COST”
SECTION OF THIS REPORT.

DRAFT
Packet Pg. 1028 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 5 RECOMMENDED FACILITY PROGRAM
8 COURT – THIRD PARTY MANAGEMENT MODEL
§ Indoor Courts
§ Eight (8) Basketball Courts
§ 16 Volleyball Courts (Over Basketball Courts)
§ 24 Pickleball Courts (Over Basketball Courts)
§ Family Entertainment Center/Adventure
§ Sports Performance
§ Flex Space, Support Spaces, Restrooms, Kitchen/Café
Seating Area, etc.
§ Medical Leased Space
Site Development – 5.79 Acres
§ 441 Parking Spaces
§ Setbacks, Green Space, Trails, etc.

Total Complex Acreage – 8.68 Acres
5 EXECUTIVE SUMMARY
SFA PROJECTS THE 8 COURT – THIRD PARTY

MANAGEMENT MODEL TO COST BETWEEN
APPROXIMATELY $67.2 MILLION AND $81.7

MILLION, NOT INCLUDING LAND ACQUISITION
COSTS, AND REQUIRE APPROXIMATELY 8.68
TOTAL ACRES OF LAND.

SFA PROVIDES A DETAILED OPINION OF COST WITH A
DEVELOPMENT COST RANGE IN THE “FACILITY
PROGRAM & OPINION OF COST” SECTION OF THIS
REPORT.

DRAFT
Packet Pg. 1029 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 66 EXECUTIVE SUMMARY

SUMMARY OF FINANCIAL PERFORMANCE
SFA’s determination of feasibility for the indoor sports facility in Redding depends on the financial forecast of the business and the ability for it to achieve results that support the City of Redding’s long-term financial goals. SFA constructed two detailed pro forma/financial analysis models for the facility that projects the financial viability for the first five years of operations. SFA developed two models based on the City of Redding’s vision to explore various opportunities, management structures, sports tourism capabilities, and and operational performances.

SFA has summarized the financial performance of the 4 Court – City Management and 8 Court – Third Party Management models throughout this report, in addition to providing the full financial performance details for each model in the associated documents.

In creating the financial forecast, SFA intentionally projects numbers that are dependent on timely marketing, attention to detail, ongoing financial analysis, a focus on customer service, and intelligent management practices.

The following tables combine and summarize the forecasted revenues, cost of goods sold, operating expenses, and capital replacement costs through the first five years of operations at the indoor facility for the 4 Court – City Management Model and 8 Court – Third Party Management Model. The financial performance details have been provided in the full financial forecast documents. SFA has projected the items within the financial forecast according to standard processes backed by more than a decade of industry experience including the production of hundreds of institutional-grade pro forma documents, the development of numerous youth and amateur sports facilities, and the real-world management experience gained from the day-to-day operations of more than 45 youth and amateur sports facilities around the United States.

FINANCIAL PERFORMANCE: 4 COURT – CITY MANAGEMENT MODEL
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Total Revenue $751,056 $827,163 $925,160 $989,641 $1,042,547 Total Cost of
Goods Sold $101,196 $113,531 $128,011 $137,783 $145,184 Gross Margin $649,860 $713,633 $797,149 $851,858 $897,363 Total Operating
Expenses $849,840 $869,786 $898,651 $928,022 $956,432
EBITDA ($199,980) ($156,154) ($101,502) ($76,165) ($59,069) % of Revenue -27% -19% -11% -8% -6%
Capital
Replacement ($893,391) ($893,391) ($893,391) ($893,391) ($893,391) Total Annual Cost
to City ($1,093,371) ($1,049,545) ($994,893) ($969,556) ($952,461) DRAFT
Packet Pg. 1030 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 77 EXECUTIVE SUMMARY

SUMMARY OF FINANCIAL PERFORMANCE (CONTINUED)
As demonstrated in the previous table, the operations at the 4 Court – City Management Model are expected to require a subsidy due to a negative Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) of approximately $200,000 in year one before gradually improving to require a lesser subsidy of approximately $59,000 annually at maturity in year five. SFA has also factored in a total annual capital expenditure allocation of approximately $893,000 in order to prepare for future alterations, rebuilding, renovations, and/or replacement to Furniture, Fixtures, and Equipment (FF&E). The Total Annual Cost to City, including capital replacement, is approximately $952,000 at maturity in year five for the 4 Court – City Management Model. Further detail regarding the capital replacement allocation can be found in the Five Year Operating Pro Forma delivered as an associated document and in the appendix section of this report.

As demonstrated in the previous table, the operations at the 8 Court – Third Party Management Model are expected to require a subsidy due to a negative Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) of approximately $413,000 in year one before gradually improving to achieve a positive EBITDA of approximately $30,000 annually at maturity in year five. Based on SFA’s industry data from real-world operating experience, SFA has factored in a total annual capital expenditure allocation of approximately $1.35 million in order to prepare for future alterations, rebuilding, renovations, and/or replacement to Furniture, Fixtures, and Equipment (FF&E). The Total Annual Cost to City, including capital replacement, is approximately $1.3 Million at maturity in year five for the 8 Court – Third Party Management Model. Further detail regarding the capital replacement allocation can be found in the Five Year Operating Pro Forma delivered as an associated document and in the appendix section of this report.

FINANCIAL PERFORMANCE: 8 COURT – THIRD PARTY MANAGEMENT MODEL YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Total Revenue $1,540,456 $1,957,371 $2,169,762 $2,413,110 $2,597,483 Total Cost of
Goods Sold $421,223 $557,805 $622,119 $699,020 $752,656 Gross Margin $1,119,234 $1,399,566 $1,547,643 $1,714,090 $1,844,826 Total Operating
Expenses $1,532,034 $1,648,613 $1,701,239 $1,761,069 $1,814,381 EBITDA ($412,800) ($249,046) ($153,596) ($46,979) $30,445 % of Revenue -27% -13% -7% -2% 1%
Capital
Replacement ($1,351,625) ($1,351,625) ($1,351,625) ($1,351,625) ($1,351,625) Total Annual Cost
to City ($1,764,425) ($1,600,672) ($1,505,221) ($1,398,604) ($1,321,180) DRAFT
Packet Pg. 1031 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 88 EXECUTIVE SUMMARY

SUMMARY OF ECONOMIC IMPACT EXPECTATIONS
SFA developed its forecasts based on the prioritization of events that meet the City of Redding’s objectives related to balancing local community use for recreational programming in addition to tournament programming and best practices for managing successful sports tourism facilities around the country and in the Northwest.

SFA projected per-person spending in the categories in which visitors to the Redding area are expected to spend for regional youth and amateur tournaments and events.

The table that follows summarizes the total direct economic impact generated based on out-of-market visitation, showing the total room nights generated and the dollar value of economic impact generated directly by the construction and operation of the new complex for each model outlined above.

The table above demonstrates that SFA expects the facility to generate approximately 17,700 new non-local days in market, approximately 3,800 new room nights, and a total of approximately $2.3 million in direct economic impact at maturity in year five of operations.

SFA also provided the tax revenue generation from the direct economic impact of the indoor facility for Hotel/Motel Tax and Special District Tax. The table below shows the projections for this tax revenue generation during the first five years of operations at the 4 Court – City Management Model.

ECONOMIC IMPACT: 4 COURT – CITY MANAGEMENT MODEL
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Non-Local Days
in Market 9,840 12,648 14,028 17,700 17,700
Room Nights 2,080 2,704 2,984 3,800 3,800
Total
Economic
Impact
$1,217,446 $1,588,336 $1,788,061 $2,289,950 $2,324,299
Year 1 Year 2 Year 3 Year 4 Year 5
Hotel/Motel Tax (10% on Lodging/Accommodations) $22,256 $29,367 $32,894 $42,517 $43,155 Special District Tax (2% on Lodging/Accommodations) $4,451 $5,873 $6,579 $8,503 $8,631 Total Tax Revenue Generation $26,707 $35,240 $39,473 $51,021 $51,786 Tax Revenue Generation
DRAFT
Packet Pg. 1032 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 99 EXECUTIVE SUMMARY
The table below demonstrates that SFA expects the 8 Court – Third Party Management Model to generate approximately 102,700 new non-local days in market, approximately 24,000 new room nights, and a total of approximately $13.5 million in direct economic impact at maturity in year five of operations.

The table below shows the projections for this tax revenue generation during the first five years of operations at the 8 Court – Third Party Management Model.

The City of Redding’s ability to drive sports tourism and economic impact, as outlined above and on the previous page, is dependent upon Redding’s ability to grow as a sports tourism destination. The models above reflect the “ramp-up” time needed from years one through five to grow their Sports Tourism identity. SFA has outlined the factors needed to successfully establish a sports tourism destination in the Sports Tourism Industry Insights section of this report. Those factors include but are not limited to: high quality and quantity of sport assets, a variety of lodging, dining, and entertainment options, desirable competition, affordability, and destination reputation. SFA recommends analyzing the hotel and restaurant inventory and occupancy rates within Redding in conjunction with the information provided in this report.

The 8 Court – Third Party Management Model has the necessary indoor court-based assets to compete at a regional level. Contributing stakeholders and User Groups identified the need to travel within the region for tournaments, events, and competitions, therefore establishing themselves as desirable competition. Redding’s local market demographic and socioeconomic factors allow Redding to establish itself as an affordable tournament destination. Establishing and maintaining a positive destination reputation will come with the growth in the industry, as well as proper management and operational oversight of the facility and events.

ECONOMIC IMPACT: 8 COURT – THIRD PARTY MANAGEMENT MODEL YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Non-Local
Days in Market 37,002 69,114 75,360 95,232 102,720
Room Nights 8,236 16,012 17,344 22,144 24,064
Total
Economic
Impact
$4,578,042 $8,679,338 $9,605,667 $12,320,705 $13,488,812 Year 1 Year 2 Year 3 Year 4 Year 5
Hotel/Motel Tax (10% on Lodging/Accommodations) $88,125 $173,898 $191,190 $247,764 $273,285 Special District Tax (2% on Lodging/Accommodations) $17,625 $34,780 $38,238 $49,553 $54,657 Total Tax Revenue Generation $105,750 $208,678 $229,428 $297,317 $327,942 Tax Revenue Generation

SUMMARY OF ECONOMIC IMPACT EXPECTATIONS (CONTINUED)
DRAFT
Packet Pg. 1033 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 1010

RECOMMENDATIONS FOR NEXT STEPS
Based on the work completed to date, SFA believes that an opportunity exists to develop a premium indoor sport and recreation complex in the Redding region of California with the capability of meeting most of Redding’s objectives. SFA has detailed the recommendation for two facility models that have the highest likelihood to achieve the City of Redding’s goals. Assets have been right sized to meet the local demand and sports tourism opportunity for the indoor model.

The scale and quality of the 8 Court – Third Party Management model, paired with the local and sub-regional market, creates the opportunity to continue to develop league, camp, clinic, instruction, and player development programs simultaneously with tournament and event programming. These amenities will provide access to sport and recreation spaces while also making the facility available to Redding residents and non-residents for a variety of programming options. Sport and recreation assets are often cited as critical factors in attracting new residents and retaining existing residents in communities across the country. As forecasted in the pro forma and described in the Business Model Overview section of this report, there is a full slate of revenue streams and offerings for participants in all activities including basketball, sports performance, medical sector lease revenue, tournaments and events, sponsorship, and more. The 8 Court – Third Party Management model leverages sports operations revenue generating opportunities and spaces, as well as supporting programs and services centered around the volume of visitors, to create an operationally profitable model contributing to long-term sustainability.

The 8 Court – Third Party Management model maximizes the opportunity for indoor court-based sports tourism in the regional market through establishing Redding as a sports tourism destination. The Redding regional market has the ability to draw from Central and Northern California as well as Southern Oregon and Western Nevada.

The business model and operational structure maximizes non-local visitation through tournaments and events generating nearly $13.5 Million in economic impact annually at maturity. The 8 Court – Third Party Management model will generate over 24,000 room nights that would not exist except for events hosted at the modeled facility.

The non-local visitation increases spending in Redding for lodging, dining, transportation, and other sectors.

It is important to note that the 4 Court – City Management model has the ability to meet some of the City of Redding’s definitions of success but does not meet all of the goals set forth by the City. Notably, the 4 Court – City Management model does not achieve operational sustainability in year five of operations, still requiring a subsidy at maturity. Additionally, the 4 Court – City Management model is projected to generate $11.1 Million less in economic impact annually in year five and beyond compared to the 8 Court – Third Party Management model.

EXECUTIVE SUMMARY
Based on SFA’s models, data, real-world operating experience of over 45 youth and amateur sports facilities across the country, SFA expects the 8 Court – Third Party Management Model to have the greatest likelihood of achieving the City of Redding’s definitions of success. Accordingly, SFA recommends the 8 Court – Third Party DRAFT
Management Model.

Packet Pg. 1034 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 1111

RECOMMENDATIONS FOR NEXT STEPS (CONTINUED)
Taking the definitions of success and key insights listed previously into account, SFA has detailed the initial findings for an indoor local recreation and sports tourism model. The included facility programs are what SFA believes have the potential to meet most of the City of Redding’s definitions of success through the individual asset types and ensuring that those assets are right sized to meet the local market opportunities, as well as the regional sports tourism opportunity. SFA has provided two models for the City of Redding to consider based on the overall goals for the development, the City’s definitions of success, funding opportunities, as well as desired management and operational structure.

NEXT STEPS
§ Explore and define the potential for funding mechanisms, development incentives, and/or strategic partnerships that could create a viable investment into the construction and operation of the recommended facilities being considered.
§ Determine the potential location(s)/site option(s) have the highest likelihood of supporting the best path forward for development.

EXECUTIVE SUMMARY
DRAFT
Packet Pg. 1035 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 12 In November of 2023, the City of Redding, California engaged Sports Facilities Advisory, LLC (SFA) to complete a full, five-year financial forecast, economic impact analysis, and development of this feasibility report to explore the potential development of a new indoor court facility in Redding.

In order to understand the City of Redding’s desired outcomes, SFA facilitated an exercise to define success for the project. Based on that exercise, SFA created those desired outcomes as the “definitions of success.” As such, SFA considers meeting the following criteria critical to determining the success of the project:
§ Improve access to local recreation spaces in order to meet demand while enhancing the local quality of life
§ Achieve operational sustainability and maximize facility financial performance for operational success § Create a significant driver of economic impact to the community of Redding § Develop a premier sports tourism facility that attracts, hosts, and retains sports tournaments and events

INTRODUCTION
IMAGE
12 DRAFT
*Hoover, AL – Finley Center – Managed by Sports Facilities Management Packet Pg. 1036 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 13 THE FULL SCOPE OUTLINED IN THE AGREEMENT CONSISTS OF THE FOLLOWING STEPS:
§ Step 1: Project Kick-Off Call
§ In this step, SFA facilitated an initial Zoom call to cover six topics such as project history, existing data, potential partners, etc. In this step, SFA reviewed work completed during a prior scope of work and recognized changes to the Project Team, goals, and potential partners. § Step 2: Existing Data Review and Market Analysis
§ SFA discussed the current facilities used for local programming and sports tourism with the City of Redding. SFA then conducted market research on various local sports and recreation assets, as well as sports tourism assets in the region. § Step 3:Onsite Development Planning Session (DPS)
§ SFA facilitated a “deep dive” planning and strategy session with the City of Redding that focused on defining success and refining the City’s vision, value propositions, financial resources, core competencies, products and services, strategic alliances, and financial success metrics.
§ Step 4: Detailed Financial Forecast (Pro Forma)
§ SFA developed a full, five-year financial forecast that models the business units for every asset within the sports complex, finalized the model for the indoor assets, provided a final opinion of cost for those assets.
§ Step 5: Economic Impact Analysis
§ SFA projected the five-year direct economic impact generated by the indoor assets defined by new spending that will occur in the market as a result of tournaments and events held at the facility.
§ Step 6: Feasibility Report
§ To finalize the City of Redding’s engagement with SFA, SFA prepared this Feasibility Report that outlines the City’s opportunity based on SFA’s expertise and experience in the industry.

The report features various substantive sections, including:

1. Executive Summary

2. Key Data: Demographic and Socioeconomic Analysis

3. Key Data: Sports in the Region

4. Key Data: Existing Local and Regional Service Providers

5. Facility Overview – Facility Program(s) and Opinion of Cost

6. Business Model Overview – Programs, Products, and Services

7. Financial Performance Overview

8. Economic Impact Analysis

9. Potential Funding Sources and Funding Case Studies

10. Conclusion and Next Steps

INTRODUCTION

SCOPE OF WORK
13 DRAFT
Packet Pg. 1037 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 14 OUTLINE OF PROCESS USED TO FORM

RECOMMENDATIONS
In order to create the recommendations detailed in this report, SFA utilized a proven process to develop an indepth understanding of goals, opportunities, and viable strategies for improving the market’s access to quality sport and recreation facilities and enhance the local youth and amateur sports tourism position. While the process included dozens of steps and was not linear, SFA summarizes the
work completed as a six-phase process that begins with
developing a contextual understanding of desired outcomes and ends with recommendations to achieve those
outcomes. The “SFA Funnel Model” depicted here
demonstrates SFA’s process to develop and refine
recommendations for the City of Redding.

PROCESS & WORK COMPLETED

OUTLINE OF WORK PERFORMED

IN ORDER TO COMPLETE ITS WORK, SFA
PERFORMED THE FOLLOWING STEPS:
§ Reviewed existing data, including:
§ Recreation Organizational Chart
§ Historical Activity Prices
§ Recreation Fee Policy Assessment
§ Redding Recreation Activities Report
§ And more
§ Conducted a market analysis, including:
§ Demographics and socioeconomics
§ Sports participation
§ Sports tourism industry, participation, and
competition trends
§ Researched existing local assets including:
§ Facility amenities
§ Facility quality
§ Event Seasonality
§ Researched existing local and regional sports
and events and tournaments, including:
§ Location
§ Length
§ Number of teams
§ Pricing
§ And more
§ Created a facility program plan and opinion of
cost for the development of new facilities,
including a range of development costs to
demonstrate the low and high projected cost to
develop the recommended facilities
§ Developed two full, five-year financial forecasts
for indoor recreation and sports tourism models
§ Identified preliminary funding sources and
developed funding case studies for the City of
Redding to consider in determining the
opportunities to invest in indoor court-based
assets
14 Participation Rates
Competition

FACILITY PROGRAM &

FINANCIAL PERFORMANCE EXPECTATIONS
Definitions of Success
Demographics & Socioeconomics
Participation Rates
DRAFT
Competition
Packet Pg. 1038 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 15 COMMUNITY ENGAGEMENT
In partnership with the City of Redding, SFA conducted four (4) stakeholder and user group sessions to meet with representatives from the Project Team on November 28th, 2023, in Redding, CA. Community groups, business leaders, City Staff, and general public attended these meetings contributed to SFA’s understanding of the opportunities and challenges of a new athletic complex in Redding. SFA met with representatives from the following groups:
§ City of Redding Parks and Recreation
§ City of Anderson
§ Redding Camber of Commerce
§ California Chosen Elite
§ Elevate
§ Upward Bound
§ Shasta Referee Association
§ Enterprise High School
§ Pickleball Community Members
§ Pickleball 4 All
§ Redding Pickleball
§ Shasta Jr. Wolves
§ Votex Cheer
§ Shasta Magic
§ Enjoy the Journey
§ Reign Basketball
§ NorthState Volleyball
§ Foothill High School
§ Harlan Carter Basketball
§ Shasta High School
§ University Preparatory School
§ Roller Hockey Community Members
SFA met with members from the organizations outlined above to discuss the opportunities and challenges relating to the potential development of a sports complex in Redding, historical and existing programs and registrations, needs for additional local and regional sports assets and programming, and more. Following the inperson group meetings, SFA followed up with various organizations to gain additional insight and understanding.

Representatives provided insights on few programming opportunities due to limited access to indoor court assets and overwhelming need for additional space. Furthermore, SFA ascertained that existing user groups maintain limited to no access to indoor court facilities with multiple courts in one location. Concentrating multiple court assets in one facility can support the growth of youth sport organizations and their programming for leagues, camps, clinics, and tournaments. Organizations with multiple courts in one location benefit from simultaneously operating programs of varying skill and age levels under one roof, limiting transportation costs and times for participating families. In addition, a tournament-capable facility almost always requires sufficient asset (court, field, etc.) inventory within one site to allow for easy transitions between games, also limiting additional transportation costs and avoiding logistical concerns for families who often travel from outside of the market. 15 DRAFT
Packet Pg. 1039 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 16 SFA conducted an in-depth demographic and socioeconomic analysis of the local, sub-regional, and regional market. The goal of this portion of the analysis is to determine the key characteristics of the most regular users of new facilities during non-tournament and event times. SFA also determined the characteristics of those users who would participate in tournaments and events in Redding. SFA has included comprehensive local demographic reports in the Appendix of this document.

As previously mentioned, SFA has not recommended a specific site for the new facilities modeled in this report, but rather made recommendations that best meet the definitions of success set forth by the City of Redding, that also match the market opportunity, research, and analysis, based on a central location in the Redding area.

The chart that follows displays some of the key demographic factors used in analyzing the utilization of facilities by the local population; these customers will be the most frequent users of a sports and training facility during non-tournament and event times. SFA also analyzed the regional population based on drive time from the Redding market. While these statistics do not serve as strict predictors of a facility’s opportunity to meet its objectives, SFA has developed a proprietary analytical process which considers these factors and several others as an integral part of the financial forecast, sports participation projections, and other analyses required in SFA’s study. SFA utilizes drivetime data from Esri’s ArcGIS platform, which maps and pairs demographic and socioeconomic data from the United States Census to customized geographical ranges. In this case, that geographic range is based on drivetime data from a central location in Redding, California.

KEY DATA: DEMOGRAPHIC & SOCIOECONOMIC ANALYSIS
16 KEY LOCAL, SUB-REGIONAL, AND REGIONAL DEMOGRAPHIC FACTORS Redding, California
Category 10 Minutes 15 Minutes 30 Minutes 60 Minutes 90 Minutes 240 Minutes Total
Population 91,782 130,421 164,225 251,597 415,665 13,664,110 Growth
Projections –
Next 5 Years
-0.25% 0.00% -0.05% -0.05% -0.45% +1.05%
Median Age
(U.S. Median:

38.5)

40.4 41.9 42.8 42.7 40.4 39.0
Median HH
Income
(U.S. Median:
$70,784)
$64,209 $64,805 $64,448 $59,174 $61,339 $99,322
Median HH
Income %
Above/Below
Adjusted Cost
of Living
(Index: 107.1)
-15.30% -14.52% -14.99%
Spending Rec.

Lessons (U.S
Avg.: $143)
$112.75 $113.50 $114.36 $103.98 $109.38 $214.53
DRAFT
Packet Pg. 1040 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 17 POPULATION SIZE:

SFA uses drive times from a central location to
analyze the population of the possible participants
that a sports complex would seek to capture. The
immediate area of Redding, within the 30-minute
drive-time window, is made up of approximately
164,000 people, while the overall region (240
minutes) is made up of approximately 13.7 million
people.

SFA views the local market as a positive factor for
local programming, since the assets are right-sized
to meet local utilization needs. The regional
population offers a sizable base to attract teams
and participants from large metropolitan markets
like Sacramento, San Francisco, San Jose, and
more.

POPULATION TREND:

Based on SFA’s analysis of U.S. Census data
provided through SFA’s industry best standard data
source, Esri ArcGIS, shown in the chart and
referenced on the previous page, the population is
expected to decrease slightly in the immediate area,
with estimates suggesting an approximate 0.25
percent decrease over five years in the 10-minute
drive time interval.

SFA views the decreasing population trend as a
slightly challenging factor for facility development.

AGE:

The median age within all local drive time intervals is greater than the national median of approximately 38.5.

Based on SFA’s experience, a below average median
age typically suggests that there are a high percent of children and young adults in the market, which are key
age segments for sports and recreation. The Age
Breakdown of the population provided by Esri’s ArcGIS
Data can be found in the appendix section of this report.

The median age market characteristic will not impact
the success of the sports tourism assets but could pose a challenge to the success of local-programmed assets.

MEDIAN HOUSEHOLD INCOME:

The median household income levels in all drive time
intervals appear to sit slightly below the national median, which is approximately $70,784. SFA adjusted the median household income based on the cost of living in the
Redding, CA area. Based on these adjustments, SFA
calculated that the adjusted median household income
falls between 15.30 percent and 14.52 percent below the median in Redding.

As a result, SFA views median household income as a
challenging factor in determining the local market
opportunity, although this could minimally impact the
sports tourism assets.

FEES FOR RECREATIONAL LESSONS:

The surrounding communities have below average
spending on recreational lessons when compared to the
national average, which is approximately $143. Based on SFA’s experience, communities with above-average level
of household expenditures on fees for recreational lessons displays the willingness to purchase recreation-based
programs and services in the immediate area.

Because fees (spending) for recreational lessons are
below average, SFA views spending on recreation as a
challenging factor for the local market opportunity,
although this will likely have a neutral effect on the sports tourism assets.
17 KEY DATA: DEMOGRAPHIC & SOCIOECONOMIC ANALYSIS
-0.30%
-0.25%
-0.20%
-0.15%
-0.10%
-0.05%

0.00%
10 MINUTE

DRIVE TIME
15 MINUTE

DRIVE TIME
30 MINUTE

DRIVE TIME
Five-Year Population Trend
Growth Rate
DRAFT
Packet Pg. 1041 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 18 Within the local Redding market, the population ranges up to approximately 164,000 people, which is a strong positive characteristic for new facility development. The five-year population trend shows stagnant figures that demonstrate a slight decrease in new residents to the local market, based on the most recent expected population growth/decline trends provided by SFA’s best-in-class industry data source Esri ArcGIS, which relies on U.S. Census and U.S. Bureau of Labor Statistics data for demographic and socioeconomic statistical categories. Population trends can be impacted by a variety of factors such as employment opportunities, educational opportunities, programs and services for families and youth, cost of living, the housing market, and more. Sport and recreation facilities provide a positive aspect to attract and retain families and young adults to communities, potentially having a positive impact on the population growth/decline trends. The median age sits above the national median, which demonstrates a likely low presence of younger families and youth residents in the market. This is a challenging characteristic for the local market. The median household income and spending on recreational lessons characteristics create challenging characteristics for the local market, while a sports tourism complex would rely more heavily on the regional market and the regional population. As mentioned previously, the regional market offers a strong population base to attract from for sports tourism tournaments and events in the Redding area.

KEY DATA: DEMOGRAPHIC & SOCIOECONOMIC INSIGHTS
As part of the process of analyzing the opportunity for the development in the Redding, CA area, SFA determined the total number of sports participants in the local, sub-regional, and regional markets. SFA has outlined the most common sports participated over indoor court assets, while also exploring the potential for core participants over other potential sports and recreation asset types. SFA made the determination to focus on the analysis of indoor court sports based on the market demand for indoor courts, the City of Redding’s vision and definitions of success for the project to serve the local community, generate sports tourism, and achieve operational sustainability, in addition to the analysis of existing service providers, outlined in the subsequent Existing Service Providers section of this report.

SFA calculates sports participation using a blend of national and regional sports participation rates as reported by the National Sporting Goods Association (NSGA) and the Sports and Fitness Industry Association (SFIA). The projections consider only active sports participants who play their respective sport in an organized format a specific number of times per year. The qualifying participation threshold varies by sport and is intended to separate casual participants from core participants; core participants are more likely to pay to visit the facility because they play consistently enough to consider paying for and participating in an organized program on a regular basis.

The following table lists the “primary” sports and activities that could be accommodated within the facility types that most regularly drive a high volume and frequency of sport participants and events, as well as the number of potential participants that could be attracted from the local, sub-regional, and regional marketplaces. “Primary” sports are those identified as having regular competitive seasons or a large base of participants to draw from the market. SFA reviewed the potential for indoor and outdoor sports, as well as sports that could be programmed over various types of sports and recreation assets. Through this process, SFA gained an understanding of the high-level potential of core participants in the local, sub-regional, and regional market. However, following Stakeholder and User Group feedback, SFA began to narrow the analytical focus on indoor sports and events.

KEY DATA: SPORTS IN THE REGION
18 DRAFT
Packet Pg. 1042 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 19 KEY DATA: SPORTS IN THE REGION

POTENTIAL CORE SPORTS PARTICIPANTS (SAMPLE)
Sport/Activity Core Participation
Rate
Local
(30 min.)
Participants
Sub-Regional
(60 min.)
Participants
Regional
(240 min.)
Participants
Basketball 6.56% 10,779 16,513 896,810
Soccer 3.74% 6,138 9,404 510,715
Baseball 3.17% 5,211 7,983 433,557
Volleyball 2.69% 4,420 6,772 367,761
Softball 2.30% 3,773 5,780 313,898
Pickleball 1.82% 2,985 4,573 248,338
Boxing
(Competition) 1.27% 2,092 3,205 174,085
Gymnastics 1.26% 2,064 3,162 171,754
Flag Football 1.06% 1,743 2,670 145,022
Martial Arts 1.06% 1,743 2,670 144,989
Futsal 0.77% 1,264 1,937 105,174
Cheerleading 0.73% 1,191 1,825 99,098
Wrestling 0.69% 1,137 1,742 94,634
SFA calculates the potential participants by multiplying each primary sport’s core participation rate with each drive time population. SFA notes that this calculation does not factor in existing service providers, and it is likely that existing facilities in the local, sub-regional, and regional marketplaces will impact the likelihood that a new facility could capture more or less core participants from those areas. SFA initially explored the potential for various recreation assets, including outdoor amenities. Following the preliminary analysis, SFA proceeded with a full analysis of indoor court sports and events only based on the demand for indoor recreation assets in Redding and the City of Redding’s definitions of success for the project.

IMAGE
19 DRAFT
Packet Pg. 1043 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 20 KEY DATA: SPORTS IN THE REGION
Indoor Court
Sport/Activity
Core Participation
Rate
Local
(30 min.)
Participants
Sub-Regional
(60 min.)
Participants
Regional
(240 min.)
Participants
Basketball 6.56% 10,779 16,513 896,810
Volleyball 2.69% 4,420 6,772 367,761
Pickleball 1.82% 2,985 4,573 248,338
Gymnastics 1.26% 2,064 3,162 171,754
Martial Arts 1.06% 1,743 2,670 144,989
Futsal 0.77% 1,264 1,937 105,174
Cheerleading 0.73% 1,191 1,825 99,098
Wrestling 0.69% 1,137 1,742 94,634
Total 15.58% 25,583 39,194 2,128,558
As a preliminary step in determining the market opportunity for certain sports and recreation services, SFA groups core participation rates and potential participants in the region by asset type. As shown in the charts below, there is a sizable base of potential participants that new indoor court assets could capture.

Grouping court sports together, new court-based assets in Redding, CA could serve approximately 15.58 percent of the regional population totaling over 2.1 million players of various sports including basketball, volleyball, and gymnastics. In addition to indoor court-based assets, SFA also analyzed the sport participation rates and opportunity for outdoor multi-purpose field-based sports. However, SFA determined to outline the sports participation rates for indoor court-based sports in this report based on the recommended facility program that meets the City of Redding’s definitions of success, while also considering Stakeholder and User Group feedback to prioritize the recommendation of indoor court assets in Redding. 20 DRAFT
Packet Pg. 1044 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) KEY DATA: EXISTING SERVICE PROVIDERS – LOCAL
As a preliminary step in determining the market
opportunity for certain sports and recreation
services, SFA conducted a comprehensive review of
the local and regional market for existing service
providers. SFA analyzes specific asset types based
on the City’s vision and direction for the facility. In addition, SFA conducts a standard review of the
market to identify additional areas of focus for a new
facility in the market. In this case, although initial
interpretations based on Stakeholder and User
Group feedback, as well as the Client’s definitions of
success suggested prioritizing indoor assets, SFA
also analyzed outdoor field types. SFA researched
the following asset types in the Redding area:

Court Facilities Sports Performance
Facilities
Fitness-YMCA
Facilities
Family Entertainment
Center Facilities
Multi-Purpose Field
Facilities
Diamond Field
Facilities
0 5
10 15
20 25
30 EXISTING SERVICE PROVIDERS
78 FACILITIES
§ INDOOR COURT FACILITIES
§ SPORTS PERFORMANCE FACILITIES
§ FITNESS-YMCA FACILITIES
§ FAMILY ENTERTAINMENT CENTER FACILITIES
§ MULTI-PURPOSE FIELD FACILITIES
§ DIAMOND FIELD FACILITIES
§ INDOOR TURF FACILITIES
2121
DRAFT
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Packet Pg. 1045 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 22 KEY DATA: EXISTING SERVICE PROVIDERS – LOCAL
The tables that follow show a sampling of the indoor court, sports performance, fitness-YMCA, family entertainment center, multi-purpose field, and diamond field facilities analyzed by SFA. SFA presented these facilities in order of proximity to a preliminary location rather than their similarity to the Redding, CA project. SFA included facilities from the aforementioned asset types within the body of the report due to their relevance to the recommended facility program. SFA has included an expanded list of facilities analyzed in the local market in the Appendix. SFA researched but did not identify any designated indoor turf facilities within the local Redding market.

As shown in the charts below, SFA analyzed the market opportunity for various indoor and outdoor sport and entertainment assets in the local market. SFA’s analysis identified a stronger need for indoor court-based assets based on a variety of factors including: the City of Redding's inventory of available assets driving market demand, Redding’s definitions of success for the project, and input provided from Stakeholders and User Groups. The analysis of existing service providers takes into consideration the quantity, quality, accessibility of the assets to the local market. SFA’s analysis of indoor court-based assets determined there are no indoor court assets operated by the City of Redding.

Indoor Court Facilities
Drive
Time
(Minutes)
Shasta Family YMCA 2
Shasta Athletic Club 5
P.R.O. Athletics Gym 5
Big League Dreams Redding 9
Sun Oaks 10 Family Entertainment Center Facilities
Drive
Time
(Minutes)
Area 151 1
Gold Mine Arcade 5
Chuck E Cheese 6
Country Bowl 6
Oasis Fun Center 10
22 Sports Performance Facilities
Drive
Time
(Minutes)
PRO Athletics 3
Competitive Edge Athletics 33
Fitness-YMCA Facilities
Drive
Time
(Minutes)
The Shasta Family YMCA 3
Shasta Athletic Club 3
Everyday Fitness & Training 4
Curves 5
Diamond Field Facilities
Drive
Time
(Minutes)
K2 Field 4
K1 Field 4
K3 Field 4
South City Park 4
University Prep School 6
Big League Dreams Redding 9
Buckeye Park 10
Alta Mesa Park/Elementary School 11
Multi-Purpose Field Facilities
Drive
Time
(Minutes)
Caldwell Park Soccer Field 3
Shasta HS Athletic Field 5
California Soccer Park 10
Enterprise Park Soccer Field 12
Anderson River Park Soccer Fields 16
DRAFT
Packet Pg. 1046 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 23 KEY DATA: EXISTING SERVICE PROVIDERS – REGIONAL
In exploring the sports tourism opportunity for the Redding market, SFA researched indoor court, outdoor multipurpose field, and outdoor diamond field facilities in the region. The tables that follow show a sampling of the tournament and event-capable facilities analyzed by SFA. SFA presented these facilities in order of proximity to a central location rather than similarity to the Redding project. As with the local market, SFA’s recommendation for indoor court sports tourism assets takes into consideration the existing regional outdoor diamond and multipurpose field assets. The Redding regional market currently consists of strong existing service providers that would compete with Redding for field-based sports tourism. The existing facilities limit the opportunity to break into the regional sports tourism market for outdoor fields without significant upfront and ongoing operational investment. SFA has included an expanded list of facilities analyzed in the regional market in the Appendix.

Indoor Court Facilities Drive Time
(Minutes) Assets/Amenities
Big League Dreams Redding 9 20,000 square-foot indoor pavilion equipped for indoor basketball, soccer, and floor hockey
Hardwood Palace 157
8 BB courts, café, skyview mezzanine, and
meeting rooms - 70,000 total square feet -
adjacent to old Courtside Basketball Center
All World Ball Academy 164 3 BB courts
NorCal Courts 176 3 BB courts and 2 "school-length" courts The Ultimate Fieldhouse 185 4 full courts plus half/training court - 300,000 annual visitors, approximately
Recreational Sports Facility 194 3 BB courts, 3 weight rooms, Olympic-sized pool, 7 racquetball courts, and 6 squash courts
23 Multi-Purpose Field Facilities Drive Time
(Minutes) Capacity
California Soccer Park 10 4 turf multi-purpose fields
Lithia and Driveway Fields 147 5 turf MP fields and 10 turf diamond fields of varying sizes
Davis Soccer Fields 148 11 grass MP fields
Cherry Island Soccer Complex 155 10 grass soccer fields - full-sized Stockton Soccer Complex 187 9 grass soccer fields - full-sized Mary Grogan Community Park 227 42-acre park with 7 lighted soccer fields (3 turf) and jogging track - additional fields nearby
Diamond Field Facilities Drive Time
(Minutes) Assets/Amenities
Big League Dreams Redding 9 5 300' fields, 20,000 SF indoor space, and F&B Klamath Falls Little League 146 8 little league fields
Lithia and Driveway Fields 147 5 turf MP fields and 10 turf diamond fields of varying sizes
Irving H. Lambrecht Sports Complex 163 4 300' field fields and 4 little league fields Hal Bartholomew Sports Park 166 8 diamond fields, 8 MP fields of varying sizes, and 12 tennis courts
JOBL Complex 177 16 little league fields
DRAFT
Packet Pg. 1047 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) KEY DATA: EXISTING SERVICE PROVIDERS
SFA conducted additional analyses during the pro forma development to determine each competing facility’s effect on the ability of new youth and amateur sport assets to achieve operational success. The facilities researched represent potential competitors in the market that are currently hosting programs, tournaments, or other events that may impact the operations at a new facility. The factors SFA used to perform this analysis include, but are not limited to:

EXISTING SPORTS AND RECREATION INVENTORY:

SFA analyzed existing facility inventory in terms of the quantity of existing sports assets, the quality of those assets, and their proximity to critical supporting structures and businesses.

PROXIMITY TO THE FACILITY:

SFA determined the proximity of existing sports and recreation assets to the new facility, recognizing that closer assets will have a larger impact from a competitive standpoint than assets that are farther away.

PRICING:

SFA examined the market prices of user fees, rental rates, registration fees, etc. Unless otherwise directed, SFA sets prices in its financial forecast that are either in line with or slightly above current-year market rates.

SEASONALITY:

SFA utilized its experience in managing similar facilities to determine the optimized seasonality for hosting programs and events. In addition, SFA recommended asset types based on their ability to flexibly support year-round programming, especially in climate-challenged markets.

MARKETING REACH AND CAPTURE RATE:

SFA based the ability of a new facility to effectively market and capture sports and recreation participants, tournaments, and events on market factors such as demographics and
socioeconomics, competitive factors such as the quality of existing facilities in the region, and destination factors such as site accessibility and the reputation of the destination.

PROGRAM MIX AND SERVICE OFFERINGS:

SFA created a financial forecast that reflects a robust, detailed set of revenue streams for the facility based on the type, size, quantity, and quality of assets.
2424
*Hoover, AL – Finley Center – Managed by Sports Facilities Management DRAFT
Packet Pg. 1048 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 25 KEY DATA: EXISTING SERVICE PROVIDERS
KEY INSIGHTS:
§ SFA observed a moderate volume of indoor court facilities in the local market, with most facilities featuring just a single court operating between 15 and 45 minutes from the preliminary site location. § SFA analyzed sports performance facilities in the local market and observed a low volume of existing assets with most facilities offering a small turf space in addition to the sports performance and other fitness assets. § SFA identified a high volume of fitness and YMCA facilities within 15 minutes of the preliminary site. § SFA identified a moderate volume of Family Entertainment Center facilities in the local market, with most facilities located around 15 minutes from the preliminary site. § SFA identified a high volume of outdoor multi-purpose and diamond fields within the local Redding market, which suggests the Client should consider outdoor field-based assets as a low priority for development in the local market.
§ SFA researched but did not identify any designated indoor turf facilities within the local Redding market. § SFA reviewed the existing service providers in the region and observed that among the five largest tournament-capable facilities located within four hours of the Redding area, facilities offer a maximum of eight hardwood courts in standalone sports facilities, which would enable a facility to maximize the sports tourism development opportunity. SFA observed a high volume of outdoor field competitors in the region, including multiple venues already operating within Redding or offering a significant volume of assets that would compete with any new assets considered for development in Redding. 25 *Hoover, AL – Finley Center –
Managed by Sports Facilities Management
DRAFT
Packet Pg. 1049 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 26 Based on the desire of the City of Redding to develop assets that drive non-local visitation to the community through sports tourism that generates economic impact, in addition to providing high-quality local recreation spaces, SFA has provided insights related to the sports tourism industry. As a focus of potential sports tourism assets in Redding, sports tourism could help drive economic impact and non-local spending in the market, benefitting the entire community, including those who may never utilize the facility itself.

GENERAL OVERVIEW
According to survey data collected by the Sports Events & Tourism Association (Sports ETA) published in its most recent “State of the Industry Report” in May of 2022, the sports tourism industry continues to grow and be an impactful part of life in the United States:
§ In 2021 nearly 175 million people traveled to a sports tournament or event. § In 2021 there was approximately $39.7 billion spent on travel for sports related tournaments and events. § $9.7 billion was spent on transportation.
§ $8.4 billion was spent on lodging and accommodations. § $7.5 billion was spent on food, beverage, and dining. § $5.3 billion was spent on entertainment.
§ $5.0 billion was spent on retail.
§ $3.7 billion was spent on tournament operations.
§ For the past five years spending related to travel for sports tournaments and events has increased by 0.80- percent with total spending yet to reach pre-pandemic levels. However, year-over-year total spending has increased by 89.20-percent to reach 88-percent of pre-pandemic spending levels. § In 2021, spending related to travel sports tournaments and events resulted in approximately 635,000 jobs generated in total with an additional $12.9 billion in tax revenue generation.

INDUSTRY GROWTH
The sustained growth in the youth and amateur sports tourism industry over the last 10+ years is one of the most compelling reasons to consider sports tourism as a reliable, attractive industry. In fact, sports tourism is the only segment of the tourism industry that did not decline in any quarter of the Great Recession, allowing it to be considered “recession resistant” and therefore of increased interest to communities across the country. 2626

SPORTS TOURISM INDUSTRY INSIGHTS
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Packet Pg. 1050 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 27 EVENTS AND SPENDING BY REGION
In addition to overall growth, Sports ETA research breaks down youth and amateur sports tourism spending by region to demonstrate where activity has taken place.

The chart that follows shows the distribution of events across five regions of the United States. 2727
The chart that follows demonstrates the percent of events and direct spending occurring in each region of the United States, with approximately three percent of events, and less than a percent of direct spending taking place in the Northwest.

AVERAGE EXPENDITURES
Based on data from hundreds of events, SFA analyzed how individuals and families typically spend when traveling for youth and amateur sports events by type of destination. The graphs that follow demonstrate the average individual spending per day and family spending per weekend for travelers attending events in standard and tourism destination markets. A standard market is categorized as a location that does not have a significant, established tourism industry while a tourism destination is defined as a location that generates significant activity through tourism outside of youth and amateur sports.

EVENTS BY REGION
Southeast Midwest Northeast Northwest Southwest

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%
Southeast Northwest Midwest Northeast Southwest
% of Events vs. % of Direct Spending
% of Events % of Direct Spending

SPORTS TOURISM INDUSTRY INSIGHTS
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Packet Pg. 1051 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 28 As demonstrated in a standard market, families currently spend approximately $883 per weekend of travel for youth and amateur sports tournaments and events.

SPORTS TOURISM DESTINATION AND OPERATIONAL SUCCESS FACTORS To capitalize on the opportunities created by youth and amateur sports tourism activities as described above, SFA highlights several destination and operational success factors that are important in the industry today.

DESTINATION FACTORS
§ High Quality, Large Facilities and Assets
The success of youth and amateur sports tourism starts with facilities. With the proliferation of competitive destination facilities, amenity quality is increasingly important as well as the number of spaces available to host teams, participants, and spectators. Additionally, supporting amenities like food and beverage services, entertainment options, etc. create a competitive advantage for facilities that feature them. § Variety of Lodging, Dining, and Entertainment Options Outside of the facility, decisions related to events to attend are often made in part on the lodging, dining, and entertainments options in the market. For players and teams traveling regularly, having known brands and affordable options to choose from is often important. For players and teams traveling infrequently or for families opting to create a vacation around a tournament, having unique and exciting lodging, dining, and entertainment is critical.
§ Desirable Competition
One of the primary reasons to travel for tournaments and events is to compete against unfamiliar teams.

Tournaments that feature a mix of teams from a large geographic range and have a well-defined competitive level structure are best able to draw teams and to bring them back year after year. § Affordability
Affordability continues to be a top concern of coaches, parents, and participants as they decide which events to attend and how many times to travel. The increase in number of competitive events and the expansion of traditional seasons has created a need to be cost conscious when selecting events. § Reputation of the Destination
Establishing and maintaining a reputation as a great place to visit is a critical factor for attracting and retaining events and participants.
2828
Standard Market
$110.37/Person/Day
$883/Family/Weekend
Tourism – Off-Peak
$150.58/Person/Day
$1,205/Family/Weekend
Tourism - Peak
$185.82/Person/Day
$1,487/Family/Weekend

SPORTS TOURISM INDUSTRY INSIGHTS
DRAFT
Packet Pg. 1052 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 29 OPERATIONAL SUCCESS FACTORS
§ Program-Driven Design
In today’s climate where new special-purpose sports tourism facilities are being opened regularly across the country, facilities must be built for and operated to create a best-in-class experience for visitors. To successfully attract, host, and retain events and participants, the facility must have been designed with event operations and participant satisfaction in mind.
§ Dedicated Marketing and Business Development Personnel and Budget With so many communities and facilities seeking to capture a portion of the sports tourism industry, it is imperative to dedicate people and money to marketing and selling opportunities. While the recommended organization structure and budget varies significantly from location to location, all successful destinations have some level of dedicated personnel and money available to secure business. § Dedicated Management
Similar to dedicated resources to marketing the facility, successful venues have a dedicated and specialized management team to ensure the investment into the facility is protected and the reputation within the industry is built and maintained.
§ Collaboration
The youth and amateur sports tourism industry consists of a variety of existing destinations and events across activities, levels of competition, governing bodies, rules of play, etc. The increasingly mature industry now features an environment in which it is often difficult to build new events and attract visitors to events that are not already established. This necessitates collaboration with tournament and events rights holders to attract existing events, working with existing facilities to grow events that demand greater capacity, and maximizing visitation and economic impact during early years of operations. § Owner, Member, and Community Buy-In
Sustainable facilities often feature a balance of tournaments/events and local leagues, camps, clinics, etc.

To set expectations for how an optimal balance is achieved and to execute on a well-rounded, sustainable business plan, the facility must educate all stakeholders and communicate the purpose as well as the schedule for tournaments and events on a regular and ongoing basis. 2929

SPORTS TOURISM INDUSTRY INSIGHTS
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Packet Pg. 1053 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex)

FACILITY OVERVIEW
Based on the data and insights detailed in this report, SFA has provided two facility program models for the development of an indoor sports facility in Redding. One model focuses on local recreation programming while the other focuses on sports tourism programming. SFA has provided the full facility program for both models as well as the financial performance details for each model in the associated documents. The facility program model below outlines the recommended indoor amenities and space requirements for the 4 Court – City Management local programming model.

FACILITY PROGRAM AND OPINION OF COST
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RECOMMENDED FACILITY PROGRAM (4 COURT – CITY MANAGEMENT MODEL) Indoor Athletic Facility

L (') W (')
Basketball Courts (actual courts 84' x 50') 4 104 80 8,320 33,280 36.7% Pickleball Courts 12 44 20 0.0%
Volleyball Courts 8 60 30 0.0%
Total Courts Sq. Ft. 33,280 36.7%
Laser Tag 1 - - 5,000 5,000 5.5%
Arcade 1 - - 2,600 2,600 2.9%
Redemption Store 1 - - 400 400 0.4%
Virtual Reality/Simulators (Tether VR) 2 - - 400 800 0.9% Play Climb/Adventure/Ropes Course 1 - - 2,000 2,000 2.2% Total FEC/Adventure Sq. Ft. 10,800 11.9%
Sports Performance Turf Area 1 120 60 7,200 7,200 7.9%
Sports Performance Training Area 1 40 60 2,400 2,400 2.6% Batting Cages/Pitching Tunnels 4 75 15 0.0%
Total Sports Performance Sq. Ft. 9,600 10.6%
Lobby/Welcome Area 1 - - 1,200 1,200 1.3%
Manager's Offices 4 10 10 100 400 0.4%
Office Area 1 - - 1,500 1,500 1.7%
Kitchen 1 30 30 900 900 1.0%
Café Seating Area 1 40 30 1,200 1,200 1.3%
Flex/Team Rooms 3 60 25 1,500 4,500 5.0%
Ref Rooms 1 15 10 150 150 0.2%
Restrooms 2 35 25 875 1,750 1.9%
Leased Space - Medical 1 - - 5,000 5,000 5.5%
Mezzanine 1 208 16 3,328 3,328 3.7%
Total Flex Space Sq. Ft. 19,928 22.0%
73,608 81.1%
6,861 7.6%
10,291 11.3%
90,760 100%
78,689

1.81 FEC/Adventure
Mechanical, Electrical, Storage, etc.

Total Estimated Indoor Athletic Facility SF
10% of P&S SF (Excl. Leased Space)
Common Area, Stairs, Circulation, etc. 15% of P&S SF (Excl. Leased Space) Total Building Acreage
Space Indoor Programming Product/Service Count Dimensions Estimated Building Footprint
Total SF % of Footprint
Over Basketball Courts
Approx. SF
each
Sports
Performance
Required SF for Products and Services
Over Basketball Courts
Over Turf
Courts Flex Space

INDOOR ATHLETIC FACILITY
By developing four (4) basketball courts with the capability to overlay eight (8) volleyball courts, the facility will have the potential to host a wide range of court events (basketball, volleyball, pickleball, wrestling, cheer, dance, and more). The four (4) court model prioritizes the local programming need for the community while maintaining the ability to host small tournaments and events. The combined quantity and quality of assets can serve the Redding area and provide a unique market opportunity for the City of Redding to develop a significant client base within the local and sub-regional market.

DRAFT
Packet Pg. 1054 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex)

INDOOR ATHLETIC FACILITY (CONTINUED)
The Family Entertainment Center (FEC) serves as a driver to achieve higher revenue per square foot and creates a family-friendly attraction for non-sport participants during event times. The inclusion of an FEC adds a destination factor to the facility and helps to attract out-of-market visitation, providing an added amenity to sport participants outside of event times, and non-participant family members and friends. The Sports Performance training area creates a training and development space for sport specific youth training and adult fitness. The inclusion of Sports Performance Turf allows the facility to offer programming and services that do not currently exist in the local market.

It is also important to note that within the indoor facility there are spaces to host and offer coaches clinics, training opportunities, team film reviews, and other team/coach/player development opportunities. These spaces could also host outside events/rentals, trainings, meetings, parties, etc. Maximum utilization of these spaces will further help the City achieve revenue and occupancy goals. Further contributing to the City of Redding’s revenue and occupancy goals, the recommended indoor facility program also includes 5,000 Square Feet of Leased Space for a medical tenant. The additional space adds a revenue driver and serves as a magnet to attract visitors to and retain them within the indoor facility. Medical tenants typically include Orthopedic, Sports Medicine, and Physical Therapy specialists, among others.

FACILITY PROGRAM AND OPINION OF COST
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SFA recommends 273 total parking spaces to meet the expected demand at the indoor sports facility. In addition to parking, SFA expects additional space requirements for setbacks, green space, trails, etc. to set the total complex acreage size at approximately 5.39 acres of land.

SITE DEVELOPMENT
Site Development

L (') W (')
Parking Spaces Total (10'x18')
(20' x 20' Inc. aisles) 273 20 20 400 109,200 69.9%
Setbacks, Green Space, Trails, etc. 46,972 30.1%
156,172 100%

3.59 5.39
% of Total
Parking
Spaces
Total
25% Indoor SF, 50% Outdoor
Total Complex Acreage
Quantity Dimensions Approx. SF
each Total SF
Total Estimated Site Development SF
Total Site Development Acreage
DRAFT
Packet Pg. 1055 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex)

FACILITY OVERVIEW
In addition to the 4 Court – City Management Model outlined previously, SFA has also outlined the recommendation for an 8 Court – Third Party Management Model below which focuses on sports tourism programming.

FACILITY PROGRAM AND OPINION OF COST
3232
RECOMMENDED FACILITY PROGRAM (8 COURT – THIRD PARTY MANAGEMENT MODEL) Indoor Athletic Facility

L (') W (')
Basketball Courts (actual courts 84' x 50') 8 104 80 8,320 66,560 45.3% Pickleball Courts 24 44 20 0.0%
Volleyball Courts 16 60 30 0.0%
Total Courts Sq. Ft. 66,560 45.3%
Laser Tag 1 - - 5,000 5,000 3.4%
Arcade 1 - - 2,600 2,600 1.8%
Redemption Store 1 - - 400 400 0.3%
Virtual Reality/Simulators (Tether VR) 2 - - 400 800 0.5% Play Climb/Adventure/Ropes Course 1 - - 2,000 2,000 1.4% Total FEC/Adventure Sq. Ft. 10,800 7.4%
Sports Performance Turf Area 1 120 60 7,200 7,200 4.9%
Sports Performance Training Area 1 40 60 2,400 2,400 1.6% Batting Cages/Pitching Tunnels 4 75 15 0.0%
Total Sports Performance Sq. Ft. 9,600 6.5%
Lobby/Welcome Area 1 - - 1,500 1,500 1.0%
Control Room 1 15 10 150 150 0.1%
Ticket Office 1 10 10 100 100 0.1%
Manager's Offices 5 10 10 100 500 0.3%
Office Area 1 - - 1,500 1,500 1.0%
Kitchen 1 40 30 1,200 1,200 0.8%
Café Seating Area 1 50 50 2,500 2,500 1.7%
Flex/Team Rooms 4 60 25 1,500 6,000 4.1%
Ref Rooms 2 15 10 150 300 0.2%
Training Room 1 20 15 300 300 0.2%
Restrooms 2 35 25 875 1,750 1.2%
Leased Space - Medical 1 - - 10,000 10,000 6.8%
Mezzanine 1 416 16 6,656 6,656 4.5%
Total Flex Space Sq. Ft. 32,456 22.1%
119,416 81.4%
10,942 7.5%
16,412 11.2%
146,770 100%
126,103

2.89 FEC/Adventure
Mechanical, Electrical, Storage, etc.

Total Estimated Indoor Athletic Facility SF
10% of P&S SF (Excl. Leased Space)
Common Area, Stairs, Circulation, etc. 15% of P&S SF (Excl. Leased Space) Total Building Acreage
Space Indoor Programming Product/Service Count Dimensions Estimated Building Footprint
Total SF % of Footprint
Over Basketball Courts
Approx. SF
each
Sports
Performance
Required SF for Products and Services
Over Basketball Courts
Over Turf
Courts Flex Space

INDOOR ATHLETIC FACILITY
By developing eight (8) basketball courts with the capability to overlay sixteen (16) volleyball courts, the facility will have the potential to host a wide range of court events (basketball, volleyball, pickleball, wrestling, cheer, dance, and more) that maximize the sports tourism opportunity for the region. The eight (8) court model has the ability to attract, host, and retain larger and more frequent tournaments and events. The combined quantity and quality of assets can serve the Redding area and provide a unique market opportunity for the City to develop a significant client base within the local and regional market. SFA’s recommendations for the FEC and Sports Performance spaces complement the sports tourism assets while also serving the local community. It is important to note the eight (8) court model also maintains the ability to serve the local community through recreational programming and partnerships.

DRAFT
Packet Pg. 1056 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex)

INDOOR ATHLETIC FACILITY (CONTINUED)
Additionally, SFA recommends increasing the Medical Leased Space in the 8 Court – Third Party Management model to 10,000 Square Feet to maximize the partnership opportunity, serve the community through local programs, and enhance the tournament experience for both the facility guests. The Medical Leased Space provides a critical partnership adjacency by offering an amenity and valued service for youth sport participants and other facility guests, a stable revenue source to the venue, while mutually benefitting the medical sector partner with an on-site tenancy and proximity to potential and current clients during all operating hours.

FACILITY PROGRAM AND OPINION OF COST
3333
SFA recommends 441 total parking spaces to meet the expected demand at the indoor sports facility. In addition to parking, SFA expects additional space requirements for setbacks, green space, trails, etc. to set the total complex acreage size at approximately 8.68 acres of land.

SITE DEVELOPMENT
Site Development

L (') W (')
Parking Spaces Total (10'x18')
(20' x 20' Inc. aisles) 441 20 20 400 176,400 70.0%
Setbacks, Green Space, Trails, etc. 75,626 30.0%
252,026 100%

5.79 Total Complex Acreage 8.68
Quantity Dimensions Approx.

SF each Total SF
Total Estimated Site Development SF
Total Site Development Acreage
Parking
Spaces
Total
25% Indoor SF, 50% Outdoor
DRAFT
% of Total
Packet Pg. 1057 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex)

SUMMARY OF DEVELOPMENT COSTS
Based on SFA’s experience in developing sports and recreation facilities, the tables below summarize the opinion of cost for the new indoor 4 Court – City Management Model and 8 Court – Third Party Management Model. In order to provide a more accurate opinion of cost and based on the current volatile construction climate affecting the development of youth and amateur sports facilities, SFA projected a range of development costs including a low and high-end projection.
3434

FACILITY PROGRAM AND OPINION OF COST
USES OF FUNDS: 4 COURT – CITY

MANAGEMENT MODEL LOW MID HIGH

LAND COST TBD TBD TBD
HARD COST $26,704,688 $29,671,875 $32,639,063
COURT AND SPORTS EQUIPMENT COST $3,076,157 $3,417,953 $3,759,748 FURNITURE, FIXTURES, AND EQUIPMENT $1,048,444 $1,164,938 $1,281,431 SOFT COSTS CONSTRUCTION $6,491,866 $7,213,184 $7,934,503 SOFT COSTS OPERATIONS $434,651 $434,651 $434,651
ESCALATION $2,686,315 $2,984,794 $3,283,274

WORKING CAPITAL RESERVE TBD TBD TBD
TOTAL USES OF FUNDS $40,442,121 $44,887,395 $49,332,670 The total use of funds for the 4 Court – City Management model range from a low-end opinion of cost of approximately $40.4 million to the high-end opinion of cost which equals approximately $49.3 million.

USES OF FUNDS: 8 COURT – THIRD

PARTY MANAGEMENT MODEL LOW MID HIGH

LAND COST TBD TBD TBD
HARD COST $43,187,445 $47,986,050 $52,784,655
COURT AND SPORTS EQUIPMENT COST $4,254,836 $4,727,596 $5,200,356 FURNITURE, FIXTURES, AND EQUIPMENT $1,779,387 $1,977,097 $2,174,807 SOFT COSTS CONSTRUCTION $12,142,871 $13,492,079 $14,841,287 SOFT COSTS OPERATIONS $1,503,891 $1,503,891 $1,503,891
ESCALATION $4,287,115 $4,763,461 $5,239,808

WORKING CAPITAL RESERVE TBD TBD TBD
TOTAL USES OF FUNDS $67,155,546 $74,450,174 $81,744,802 The total use of funds for the 8 Court – Third Party Management Model ranges from a low-end opinion of cost of approximately $67.2 million to the high-end opinion of cost equals approximately $81.7 million.

Full details on the construction and start-up cost estimates for both models can be found in the facility program and opinion of cost, which SFA has delivered as an associated document within each pro forma.

DRAFT
Packet Pg. 1058 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 35 As mentioned throughout this report, one key area of focus for an indoor facility will be to provide quality facilities for local recreation programming in addition to the youth and amateur sports tourism opportunity serving the Redding and greater Northern California market.

The information below is based on the City’s vision, as well as SFA’s recommendation to establish a balance between serving the local community through local programs and the regional market through hosting sports tourism tournaments and events. SFA has first detailed the local programming operating model, followed by the sports tourism operating model. SFA has arranged the information in this order based on the City of Redding’s goals serve the local community.

LOCAL PROGRAMMING MODEL
The local programming model is designed to make any facility development a year-round sports and recreation hub by serving as a community asset providing sports, physical health, recreation, and youth development programming, regardless of skill levels or abilities. By creating a fun, active space with high-quality programming and amenities, the spaces detailed in the facility program will be able to host a multitude of activities and serve a wide range of community pursuits.

Based on conversations with the City of Redding, SFA’s recommendations for the spaces and amenities detailed in the facility program, a sports tourism complex has the potential to offer programming for any or all of the following activities from in-house and/or partner organizations: practices, camps, clinics, leagues, showcases, tournaments, private individual and group training, and more.

SPORTS TOURISM MODEL
To more clearly define the goal of generating economic impact through sports tourism events, SFA has described the sports tourism operating model below.

The goal of a sports tourism model is to attract out-of-town teams, players, coaches, and spectators to the market to generate revenue for the facility and to create economic impact through non-local visitors staying in hotels, eating at restaurants, shopping at stores, purchasing gas, etc. Within the sports tourism model, there are two primary ways of developing tournaments: creating in-house tournaments and outsourcing tournaments to existing organizers/rights holders.

In-house tournaments require a significant amount of time, energy, and human resources to develop and execute.

This type of event requires the facility to market the event, register teams, secure hotels, train staff, hire officials, manage play, etc. As such, significant revenue can be generated, but the cost of doing business is high.

Additionally, tournaments typically take multiple years to grow, and as a result first year (and often second year) events are small, marginally profitable, and create a minimal economic impact. A 4 Court Model would require fewer overall resources for marketing, registering teams, and securing hotels, but would also host fewer economic impact-generating events that could effectively compete with other existing service providers in the region. The 8 Court Model offers sufficient court inventory to attract more teams from a broader area to travel to and compete at youth and amateur tournaments and events.

BUSINESS MODEL OVERVIEW
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Packet Pg. 1059 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 36 SPORTS TOURISM MODEL (CONTINUED)
Outsourced tournaments require much less work on the part of the facility because inventory is rented to a tournament provider who oversees securing teams and running the event. Additionally, they often provide greater economic impact in the early years of operation because they are not first-year events, and therefore there are more teams in attendance. However, the amount of revenue the facility can generate on an outsourced tournament is limited because team registration fees go to the rights-holder, as do other revenue streams (e.g., hotel rebates, gate fees, etc.). The 8 Court – Third Party Management model and 4 Court – City Management model reflect an outsourced tournament model based on the City of Redding’s ability to attract, host, and retain additional tournaments in the market that balance the goal of generating economic impact and operational sustainability.

SFA has found that it is typical for facilities with a sports tourism business model to accomplish their goals by generating large amounts of economic impact rather than relying solely on the operational performance of the facility to determine success. Because large sports tourism-focused facilities generally depend on hosting events that generate economic impact, these provide the facility with one-off revenue streams that occur a limited number of times each year but require large facilities that are generally overbuilt for the local market opportunity. For facilities that pursue sports tourism as an economic driver, room night generation, direct spending, and new tax revenues earned from events are viewed as an attractive return on the investment relative to potential subsidization of operations. As such, these types of facilities serve as a driver of traffic and spending to other businesses in the adjacent area such as hotels, restaurants, retail stores, etc. These facilities often function as an anchor to mixed-use projects that benefit the community alongside additional development.

PROGRAM MIX
The programs listed above offer a robust programming model to be featured at the Redding complex including in-house and partner organization offerings in both the 4 Court – City Management model and the 8 Court – Third Party Management Model. While an operating model more heavily focused on partner and rental programming typically takes less time to grow revenues and guarantees revenue for the model, it limits the long-term revenue growth opportunities.

BUSINESS MODEL OVERVIEW
3636
DRAFT
Packet Pg. 1060 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 37 PROGRAM MIX (CONTINUED)
SFA recommends a facility program mix that includes internal or in-house programs in addition to rental or outside service provider programs, however, believes that an in-house local programming model will delivery the best results to achieve the City of Redding’s goals. In-house programming presents the complex with the following growth and business development opportunities:

BUSINESS MODEL OVERVIEW
GREATER OWNERSHIP OF THE BUSINESS:

Running in-house programs will allow the management team to dictate all aspects of the products and services being offered in the facility. This ownership provides the ability to make decisions regarding marketing, sales, and operations of all programs. Furthermore, the facility will rely less on the skills, experience, and relationships of outside people or organizations and therefore strengthen the complex’s ability to offer best-in-class services to its customers.

CONTROL OF THE CUSTOMER EXPERIENCE:

All programs are a reflection of the facility and affect customer perception of the brand. With a rental model, a facility has a minimal level of control over program quality and customer experience. If a program run by an outside organization does not meet customer expectations, the facility will be directly associated with that bad experience. On the other hand, internal programs allow the facility to control the quality of customers’ experiences.

HIGHER FINANCIAL RETURNS:

Rental programs are limited in the level of revenue they are able to generate. This relatively flat revenue restricts the ability to capitalize on growth opportunities. An internal program business model creates the opportunity for the facility to grow programs and increase the amount of revenue that can be generated per hour. With the proper investment in and development of in-house programs, the facility will be able to generate significantly higher levels of revenue.

FACILITY DATABASE AND CROSS MARKETING:

Internal programming presents the facility with the opportunity to build an extensive internal database of its customers. Owning and running in-house programs will allow the facility to capture and retain important customer contact information. This internal database will create a platform for the management team to cross-market appropriate programs to people who are already customers and invested in taking part in the products and services that the facility has to offer. The ability to cross-market to an internal database is substantially more effective than many traditional marketing initiatives.

ABILITY TO MAXIMIZE SCHEDULING:

A rental-only model restricts the management team’s ability to maximize program scheduling. This is a result of the desire of outside programmers and rentals to purchase only the best and prime time hours in the facility. With an in-house program model, the management team will be able to dictate the day and time that programs are run and therefore allow the facility to maximize the use of available scheduling time. 3737
DRAFT
Packet Pg. 1061 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 38 A gradual transition towards a higher level of internal programming after opening will allow the facility to maintain relationships and utilize outside programming during the maturation process. As the facility matures, shifting to an increased percentage of internal programs will allow the facility to capitalize on opportunities to grow programs and contribute to a higher level of financial sustainability.

Based on the vision of the City, SFA believes that there will be a hybrid business model between the local programming model and the sports tourism operating model in order to maximize sustainability. As such, the level of financial and economic impact performance will depend on the type of assets, mix of assets, and business model within any facility that is developed.

BUSINESS MODEL OVERVIEW (CONTINUED)
38 IMAGE
38 *Hoover, AL – Finley Center – Managed by Sports Facilities Management DRAFT
Packet Pg. 1062 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 39 SUMMARY OF FINANCIAL PERFORMANCE
SFA’s determination of feasibility for the indoor sports facility in Redding depends on the financial forecast of the business and the ability for it to achieve results that support the long-term financial goals of the City. SFA developed two detailed pro forma/financial analysis models and projected the financial viability for the first five years of operations in each model.

In creating the financial forecast, SFA intentionally projects numbers that are dependent on timely marketing, attention to detail, ongoing financial analysis, a focus on customer service, and intelligent management practices.

The following table summarizes the forecasted revenues, cost of goods sold, and operating expenses through the first five years of operations at the 4 Court – City Management model. The financial performance details have been provided in the full financial forecast documents. SFA has projected the items within the financial forecast according to standard processes backed by more than a decade of industry experience including the production of hundreds of institutional-grade pro forma documents, the development of numerous youth and amateur sports facilities, and the real-world management experience gained from the day-to-day operations of more than 45 youth and amateur sports facilities around the United States.

As demonstrated in the previous table, the operations at the 4 Court – City Management model is expected to require a subsidy due to a negative Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) of approximately $200,000 in year one before gradually improving to require a lesser subsidy of approximately $59,000 annually at maturity in year five. Based on SFA’s industry data from real-world operating experience, SFA has also factored in a total annual capital expenditure allocation of approximately $894,000 in order to prepare for future alterations, rebuilding, renovations, and/or replacement to Furniture, Fixtures, and Equipment (FF&E). The Total Annual Cost to City, including capital replacement, is approximately $952,000 at maturity in year five for the 4 Court – City Management Model. Further detail regarding the capital replacement allocation can be found in the Five Year Operating Pro Forma delivered as an associated document.

FINANCIAL PERFORMANCE OVERVIEW
3939
FINANCIAL PERFORMANCE: 4 COURT – CITY MANAGEMENT MODEL
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Total Revenue $751,056 $827,163 $925,160 $989,641 $1,042,547 Total Cost of
Goods Sold $101,196 $113,531 $128,011 $137,783 $145,184 Gross Margin $649,860 $713,633 $797,149 $851,858 $897,363 Total Operating
Expenses $849,840 $869,786 $898,651 $928,022 $956,432
EBITDA ($199,980) ($156,154) ($101,502) ($76,165) ($59,069) % of Revenue -27% -19% -11% -8% -6%
Capital
Replacement ($893,391) ($893,391) ($893,391) ($893,391) ($893,391) Total Annual Cost
to City ($1,093,371) ($1,049,545) ($994,893) ($969,556) ($952,461) DRAFT
Packet Pg. 1063 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 40 SUMMARY OF FINANCIAL PERFORMANCE
As demonstrated in the previous table, the operations at the 8 Court – Third Party Management model is expected to require a subsidy due to a negative Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) of approximately $413,000 in year one before gradually improving to generate a positive EBITDA of approximately $30,000 annually at maturity in year five. Based on SFA’s industry data from real-world operating experience, SFA has factored in a total annual capital expenditure allocation of approximately $1.35 million in order to prepare for future alterations, rebuilding, renovations, and/or replacement to Furniture, Fixtures, and Equipment (FF&E). The Total Annual Cost to City, including capital replacement, is approximately $1.3 Million at maturity in year five for the 8 Court – Third Party Management Model. Further detail regarding the capital replacement allocation can be found in the Five Year Operating Pro Forma delivered as an associated document, as well as the appendix section of this report.

SFA’s Annual Capital Expense Allocation analysis is determined by the budgeted cost and useful life of the hard structure and field and sport equipment located within the facility. This is utilized to calculate an annual allocation required for capital replacement. SFA’s Total Annual Cost to City at maturity in Year 5 is determined by the annual capital replacement allocation and EBITDA. As stated above, the Total Annual Cost to City for the 4 Court – City Management model is approximately $952,000 at maturity in year five. The Total Facility Annual Cost for the 8 Court – Third Party Management model is approximately $1.3 Million at maturity in year five.

SFA typically expects indoor sports tourism facilities to require an operational subsidy during the first few years of operation before becoming operationally sustainable at maturity. This is based on the fact that sports tourism facilities are intentionally overbuilt for the local market in order to maximize the potential for economic impact generation. These facilities require time to develop internal programs that maximize revenue contained within the facility.

FINANCIAL PERFORMANCE OVERVIEW
4040
FINANCIAL PERFORMANCE: 8 COURT – THIRD PARTY MANAGEMENT MODEL YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Total Revenue $1,540,456 $1,957,371 $2,169,762 $2,413,110 $2,597,483 Total Cost of
Goods Sold $421,223 $557,805 $622,119 $699,020 $752,656 Gross Margin $1,119,234 $1,399,566 $1,547,643 $1,714,090 $1,844,826 Total Operating
Expenses $1,532,034 $1,648,613 $1,701,239 $1,761,069 $1,814,381 EBITDA ($412,800) ($249,046) ($153,596) ($46,979) $30,445 % of Revenue -27% -13% -7% -2% 1%
Capital
Replacement ($1,351,625) ($1,351,625) ($1,351,625) ($1,351,625) ($1,351,625) Total Annual Cost
to City ($1,764,425) ($1,600,672) ($1,505,221) ($1,398,604) ($1,321,180) DRAFT
Packet Pg. 1064 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 41 4141

ECONOMIC IMPACT ANALYSIS

ECONOMIC IMPACT EXPECTATIONS
As stated previously, SFA developed its forecasts based on the prioritization of events that meet the City of Redding’s objectives related to both local and tournament programming and best practices for managing successful sports tourism facilities. As part of that exercise, SFA conducted an in-depth analysis of the two components that determine economic impact:

1. The average daily expenditure for non-local visitors to the market, including but not limited to:
§ Average daily rate for hotels
§ Average daily meal costs
§ Percent of spending in market by category

2. The details for each event, including but not limited to:
§ Number of participants
§ Number spectators
§ Markets from which participants travel
§ Day and overnight travel habits in the region and across the industry § Length of event
For the purposes of this study, SFA analyzed overnight visitors to the market. Overnight visitors are defined as those coming to the Redding area from more than 90 minutes away who stay overnight. SFA’s economic impact projections do not include any assumptions for visitors extending their stay beyond the event and do not include any indirect or induced spending projections.

AVERAGE DAILY EXPENDITURE
SFA projected per-person spending in the categories in which visitors to Redding, CA are expected to spend for regional youth and amateur tournaments and events. The chart below shows that overnight visitors are expected to spend an average of $123.72 per person per day in year one before growing to $131.32 in year five. The estimates for per person spending are based on conservative estimates for how non-local visitors will spend while in market. SFA believes that these are reliable estimates, and that it is unlikely that per person spending will fall below the projected amounts. SFA bases these individual spending categories on an initial classification of Redding as a “Standard Destination”, as opposed to an “Established Tourism Destination” or “Established Resort Destination.” SFA utilizes a proprietary blend of multipliers for each category based on the local cost of living, the industry experience of SFA’s parent company, SFC, that operates youth and amateur sports venues across the country, and the Average Daily Rate for Lodging and Average Daily Meal Cost provided by the U.S. General Services Administration Per Diem.

Year 1 Year 2 Year 3 Year 4 Year 5
Lodging/Accommodations $35.67 $36.20 $36.74 $37.30 $37.86 Dining/Groceries $44.25 $44.91 $45.59 $46.27 $46.97
Transportation $7.52 $7.64 $7.75 $7.87 $7.98
Entertainment/Attractions $3.54 $3.59 $3.65 $3.70 $3.76 Retail $20.80 $21.11 $21.43 $21.75 $22.07
Miscellaneous $11.95 $12.13 $12.31 $12.49 $12.68
Total $123.72 $125.58 $127.46 $129.38 $131.32
Per Person Spending By Category
DRAFT
Packet Pg. 1065 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 42 4242

ECONOMIC IMPACT ANALYSIS

ECONOMIC IMPACT DRIVERS
The table above demonstrates that SFA expects the 4 Court – City Management model to generate approximately 17,700 new non-local days in market, 3,800 new room nights, and a total of approximately $2.3 million in direct economic impact at maturity in year five of operations.

The table above demonstrates that SFA expects the 8 Court – Third Party Management model to generate approximately 102,700 new non-local days in market, over 24,000 new room nights, and a total of approximately $13.5 million in direct economic impact at maturity in year five of operations.

ECONOMIC IMPACT DRIVERS
Before converting the per-person average daily expenditure into a total direct spending projection, SFA analyzed the two most important drivers of economic impact: non-local days in market and room nights generated for each event projected. Non-local days in market are the number of days that non-local visitors will spend in the Redding market because of the tournament or event they are attending. Hotel room nights are the number of nights that visitors will stay in the local area to take part in tournaments and events.

The table that follows summarizes the total number of projected events per year in each category, followed by the projected economic impact drivers and direct spending in years one through five of the 4 Court – City Management model and 8 Court – Third Party Management model.

ECONOMIC IMPACT: 4 COURT – CITY MANAGEMENT MODEL
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Non-Local Days
in Market 9,840 12,648 14,028 17,700 17,700
Room Nights 2,080 2,704 2,984 3,800 3,800
Total
Economic
Impact
$1,217,446 $1,588,336 $1,788,061 $2,289,950 $2,324,299
ECONOMIC IMPACT: 8 COURT – THIRD PARTY MANAGEMENT MODEL YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Non-Local Days
in Market 37,002 69,114 75,360 95,232 102,720
Room Nights 8,236 16,012 17,344 22,144 24,064
Total
Economic
Impact
$4,578,042 $8,679,338 $9,605,667 $12,320,705 $13,488,812 DRAFT
Packet Pg. 1066 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 43 Based on SFA’s experience in planning and funding facilities similar to the facilities included in the included facility program, communities and private clients have deployed the following funding mechanisms successfully in recent projects across the country. It should be noted that in today’s development climate, most projects have a diverse set of funding sources and often rely on public-private partnerships. In addition, SFA has provided various case studies of existing or in-development facilities similar to those modeled in this report.

POTENTIAL FUNDING SOURCES

BORROWING
§ Private Loan
§ A loan is taken out by a business to fund the development and early-stage operation of the facility. A private entity could take out a personal loan in the event they align with the City of Redding as a private partner to support the project at hand.

SPECIAL DISTRICTS
§ The City of Redding could, in accordance with California law and local regulations, establish any form of the following districts in order to creatively fund the project at hand:
§ Tax Increment Financing (TIF)
§ A district is developed specifically for the purpose of incentivizing development. Upon establishment, the tax base of the district is frozen and any increase to the tax base as a result of new developments are used to pay the TIF bonds.
§ Opportunity Zones
§ An economically distressed community where new investments, under certain conditions, become eligible for preferential tax treatment. Localities qualify as Opportunity Zones if they have been nominated for that designation by the state and that nomination has been certified by the Secretary of the U.S. Treasury via their delegation of authority to the Internal Revenue Service.
4343

PARTNERSHIPS
§ Public-Private Partnerships
§ Development and/or operational commitments are made by both public and private organizations in order to provide capital, credit, or long-term income to secure or back a loan.

Private sector partners are most commonly developers, medical sector organizations, for-profit sports or wellness organizations, and non-profit sports or wellness organizations. The PublicPrivate Partner relationship can encompass a few or all of the following facility development phases: design, build, finance, operate, and/or manage. § Public-Public Partnerships
§ Development and/or operational commitments are made by two public sector organizations in order to provide capital, credit, or long-term income to secure or back a loan. Public sector partners could include the Redding School District, Shasta County, and others.

DRAFT
Packet Pg. 1067 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 44 Based on SFA’s experience in planning and funding facilities similar to the facilities included in the modeled facility program, SFA has provided case studies that detail real-world funding scenarios. These scenarios provide an overview of the funding structure utilized to fund the best-in-class sports tourism venues, the Cedar Point Sports Center in Sandusky, OH, AdventHealth Sports Park at Bluhawk in Overland Park, KS, Emerald Acres Sports Connection in Mattoon, IL, and Morristown Landing in Morristown, TN.

The Cedar Point Sports Center opened in 2020 with a total development cost of approximately $42 million. The venue offers 185,000 Square Feet of indoor sports, event, and entertainment space and serves thousands of visitors on a regular tournament weekend. The facility also includes the Lee C. Jewett Sports Medicine Center in a partnership with Firelands Regional Medical Center.

Since sports tourism serves as the primary driver of the facility, various interested public and private parties collaborated in a true Public-Private Partnership to promote and fund the development of the venue, therefore encouraging new visitation to the market. This visitation has proven especially beneficial to the community during non-peak tourism seasons. The funding structure for Cedar Point Sports Center included the following approximate contributions:
§ County Hotel Tax - $23 million
§ Firelands Regional Medical Center - $11 million
§ City Tax Financing - $2 million
§ Private Equity - $6 million
§ Cedar Fair Entertainment
§ Lake Erie Shores & Islands Convention and Visitors Bureau FUNDING SOURCES CASE STUDY – CEDAR POINT SPORTS CENTER
4444
DRAFT
Packet Pg. 1068 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 45 The current development climate for youth and amateur sports facilities generally requires a robust combination of funding sources and mechanisms to turn a concept into reality. AdventHealth Sports Park at Bluhawk is a relevant example of a sports tourism and mixed-use development project that relied on creative funding solutions to become developable.

AdventHealth Sports Park is set to open in 2024 with a total development cost of approximately $125 million for Phase I of the development (sports facility only). The venue offers 250,000 Square Feet of indoor sports, event, and entertainment space, with adjacent residential, medical, lodging/hospitality, and other traditional mixed-use spaces as a privately owned and operated development. The medical component serves a key function within most public-private partnerships, often occupying a dedicated leased space within the development and/or purchasing naming rights that can account for as much as 26 percent of the total development cost, according to SFA’s industry experience.

Sports tourism serves as the primary driver of the facility, although the venue will accommodate regular local programming. Various interested public and private parties collaborated to promote and fund the development of the venue, therefore encouraging new visitation and promoting new spending to occur the market that would not occur but for the development of the complex. The funding structure for Bluhawk Sports Park included the following funding mechanisms:
§ Sales Tax and Revenue (STAR) Bonds - $46.5 Million
§ A portion of state sales tax generated within the mixed-use development district returns to the developer over time to pay for the sport facility
§ Private Equity
§ Traditional Lending
FUNDING SOURCES CASE STUDY – ADVENTHEALTH SPORTS PARK
4545
DRAFT
Packet Pg. 1069 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 46 FUNDING SOURCES CASE STUDY – EMERALD ACRES
4646
Youth and amateur sports facilities generally require creative and multi-lateral funding solutions prior to development. Emerald Acres Sports Connection is a non-profit-operated sports tourism development project that required a unique operating arrangement and funding structure to promote development.

Emerald Acres Sports Connection in Mattoon, IL is set to open in 2024 with a total development cost of approximately $65 million (sports facilities only). The complex offers a combined 150-acre property, with 150,000 Square Feet of indoor sports, event, and entertainment space and 12 outdoor fields that prioritize sports tourism.

Sports tourism serves as the primary driver of the facility, although the venue will accommodate regular local programming. Various interested public and private parties collaborated to promote and fund the development of the venue, therefore encouraging new visitation and promoting new spending to occur the market that would not occur but for the development of the complex. The funding structure for Emerald Acres Sports Connection included the following funding mechanisms:
§ Expansion of Existing Business Improvement District (BID) § The district consists of new and existing mixed-use and commercial development § Future Property Tax Incentive (Incremental)
§ Private Equity (Capital and Land Contributions)
DRAFT
Packet Pg. 1070 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 47 The Morristown Landing multi-purpose recreation and events center is a relevant example of a hybrid local programmed and sports tourism development that utilized a pure local public partnership for development.

Morristown Landing opened in June 2023 with a total development cost of approximately $35 million. The facility offers 115,000 Square Feet of indoor sports, event, and entertainment space. The indoor facility features four basketball courts or six volleyball courts, a fitness center, competition pool, and indoor climbing space, among other family-friendly amenities. Through the development of this facility, the community is expected to experience an increase in direct spending from outside visitors, a rise in tax revenue from new spending, while the community itself gained a new recreation and entertainment asset.

The City of Morristown contributed directly to the project through bond financing toward the total development cost. The funding structure for Morristown Landing included the following funding mechanisms:
§ Public Partnership
§ City of Morristown
§ Bond Financing
§ $0.25 Property Tax Increase (Requiring Public Vote)
FUNDING SOURCES CASE STUDY – MORRISTOWN LANDING
4747
DRAFT
Packet Pg. 1071 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 48 Based on the work completed to date, SFA believes that an opportunity exists to develop an indoor sports facility in the Redding market with the capability of meeting most of the City’s objectives. The definitions of success for the City of Redding are listed below in conjunction with key findings based on the analysis for recommendation of the 8 Court – Third Party Management Model:
§ Improve access to local recreation spaces in order to meet demand while enhancing the local quality of life
§ The scale and quality of the 8 Court – Third Party Management model paired with the local and subregional market creates the opportunity to continue to develop league, camp, clinic, instruction, and player development programs simultaneously with tournament and event programming. § These amenities will provide access to sport and recreation spaces while also making the facility available to Redding residents and non-residents for a variety of programming options. § Sport and recreation assets are often cited as critical factors in attracting new residents and retaining existing residents in communities across the country.
§ Achieve operational sustainability and maximize facility financial performance for operational success § As forecasted in the pro forma and described in the business model overview section of this report, there is a full slate of revenue streams and offerings for participants in all activities including basketball, sports performance, medical sector lease revenue, tournaments and events, sponsorship, and more.
§ The 8 Court – Third Party Management model leverages sports operations revenue generating opportunities and spaces, as well as supporting programs and services centered around the volume of visitors, to create an operationally profitable model contributing to long-term sustainability. § Create a significant driver of economic impact to the community of Redding § The 8 Court – Third Party Management model maximizes the opportunity for indoor court-based sports tourism in the regional market through establishing Redding as a sports tourism destination.

The Redding regional market has the ability to draw from Central and Northern California as well as Southern Oregon and Western Nevada.
§ The business model and operational structure maximizes non-local visitation through tournaments and events generating nearly $13.5 Million in economic impact annually at maturity. § The 8 Court – Third Party Management model will generate over 24,000 room nights that would not exist except for events hosted at the modeled facility. The non-local visitation increases spending in Redding for lodging, dining, transportation, and other sectors. 48 IMAGE
48 CONCLUSION AND NEXT STEPS
*Rocky Mount, NC – Rocky Mount Event Center – Managed by Sports Facilities Management DRAFT
Packet Pg. 1072 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 49 § Develop a premier sports tourism facility that attracts, hosts, and retains sports tournaments and events
§ The facility presents an opportunity for the City of Redding to capitalize on the growth in youth and amateur sports tourism that is expected to continue by increasing tourism infrastructure. § The 8 Court – Third Party Management model outlines the combination of assets (courts, sports performance, medical leased space, food and beverage, and support spaces) necessary to create a premiere facility with the capability of maintaining a sports tourism infrastructure in the Redding regional market.

It is important to note the 4 Court – City Management model also has the ability to meet some of the City of Redding’s definitions of success but does not meet all of the goals set forth by the City. Notably, the 4 Court – City Management model does not achieve operational sustainability in year five of operations, still requiring a subsidy at maturity. Additionally, the 4 Court – City Management model is projected to generate $11.1 Million less in annual economic impact in year five and beyond compared to the 8 Court – Third Party Management model.

Taking the definitions of success and key insights listed previously into account, SFA has detailed the initial findings for an indoor local recreation and sports tourism model. The included facility programs are what SFA believes have the potential to meet most of the City of Redding’s definitions of success through the individual asset types and ensuring that those assets are right sized to meet the local market opportunities, as well as the regional sports tourism opportunity. SFA has provided two models for the City of Redding to consider based on the overall goals for the development, the City’s definitions of success, funding opportunities, as well as desired management and operational structure.

In arriving at this conclusion, SFA has factored all positive and potentially challenging market factors, including moderate local and regional population figures, a low adjusted median household income, a stagnant and slightly declining local population base, as well as all existing facilities operating in the local market and the region. As mentioned in this report, SFA assumes that for every model produced, if developed, the City of Redding and any involved partners will collaborate to ensure affordable program access for local residents and visitor access to a variety of lodging, dining, and entertainment options. The City of Redding must also contribute to maintaining a positive destination experience with support from marketing and business development personnel and/or a dedicated operating partner. In becoming a successful sports tourism destination, the City of Redding and any potential partners must work in concert to meet the needs of both the facility and the many visitors who could attend tournaments and events there throughout the facility’s operation. As described throughout this report, Redding must establish itself as a sports tourism destination by offering a sufficient quality and quantity of assets, a variety of support amenities (lodging, restaurants, and entertainment), desirable competition, affordability, and a positive destination reputation. SFA believes Redding currently offers or has the potential to develop all of these factors to establish a sports tourism destination. Redding’s continual investment in supporting amenities will further improve their reputation in the region and advance the development of sports tourism in Redding. 4949
BASED ON SFA’S MODELS, DATA, REAL-WORLD OPERATING EXPERIENCE OF OVER 45 YOUTH AND AMATEUR SPORTS FACILITIES ACROSS THE COUNTRY, SFA EXPECTS THE 8 COURT MODEL TO HAVE THE GREATEST LIKELIHOOD OF ACHIEVING THE CITY OF REDDING’S DEFINITIONS OF SUCCESS.

ACCORDINGLY, SFA RECOMMENDS THE 8 COURT MODEL.

DRAFT
Packet Pg. 1073 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 50 5050
Within the next phase of work, SFA recommends that the City of Redding:
§ Determine potential location(s)/site option(s) that has/have the highest likelihood of supporting the best path forward for development.
§ Explore and define the potential for funding mechanisms, development incentives, and/or strategic partnerships that could create a viable investment into the construction and operation of enhancing existing and/or building new facilities.
§ The exploration of funding mechanisms, development incentives, and strategic partnerships will assist in answering questions such as: which model best meets the City of Redding’s definitions of success and the needs of the community, how the facility will be utilized, does it make more sense to enhance existing facilities or develop new facilities, and how the development will be funded.

In conclusion, SFA believes that an opportunity exists to develop a new indoor sports facility that can achieve the City of Redding’s goals. SFA recommends exploring the potential funding mechanisms, development incentives, and strategic partnership opportunities for a sports facility.

SFA is available to assist in any or all of the above steps and welcomes the opportunity to discuss these findings with the City in order to support the formulation of a decision related to the development of a new indoor sports facility in Redding, California.

CONCLUSION AND NEXT STEPS

IT IS CRITICAL THAT, PRIOR TO MOVING FORWARD WITH THE DEVELOPMENT, THE CITY OF REDDING CONSIDER THE FINDINGS AND RECOMMENDATIONS IN THIS DOCUMENT. EACH OF THE RECOMMENDATIONS SHOULD BE ADDRESSED THROUGHOUT THE NEXT PHASES OF WORK.

DRAFT
Packet Pg. 1074 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex)

ADVISORY DEVELOPMENT MANAGEMENT

ABOUT THE SPORTS FACILITIES COMPANIES
DRAFT
Packet Pg. 1075 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 52 52
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IN PLANNED & FUNDED FACILITIES

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ABOUT THE SPORTS FACILITIES COMPANIES
DRAFT
Packet Pg. 1076 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) 53 53

ABOUT THE SPORTS FACILITIES COMPANIES
DRAFT
Packet Pg. 1077 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) DRAFT
Packet Pg. 1078 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) APPENDIX – LOCAL DEMOGRAPHIC AND SOCIOECONOMIC DATA
2023 Total Family Households (Esri) 23,127 33,800 43,334 2023 Average Household Size (Esri) 2.41 2.44 2.46
2017-2022 Per Capita Income: Annual Growth Rate (Esri) 2.98 3.05 3.16 2023 Total Households (Esri) 37,158 52,308 65,523
2017-2022 Population: Annual Growth Rate (Esri) -0.05 0.00 -0.01 2017-2022 Median Household Income: Annual Growth Rate (Esri) 3.05 3.10 3.21 2023 Household Population (Esri) 89,459 127,800 161,426 2010-2017 Population: Annual Growth Rate (Esri)
2023 Average Household Income (Esri) $90,597 $90,880 $91,520 2023 Per Capita Income (Esri) $36,780 $36,564 $36,591
2023 Median Age (Esri) 40.4 41.9 42.8
2023 Median Household Income (Esri) $64,209 $64,805 $64,448 Total Population 91,782 130,421 164,225
Demographic Highlights 10 minutes 15 minutes 30 minutes 2023 Household Income $200,000 or greater (Esri) (%) 6.40% 6.30% 6.60% 2023 Household Income $100,000-$149,999 (Esri) (%) 15.70% 16.10% 15.60% 2023 Household Income $150,000-$199,999 (Esri) (%) 6.50% 7.00% 7.10% 2023 Household Income $50,000-$74,999 (Esri) (%) 17.90% 17.70% 17.60% 2023 Household Income $75,000-$99,999 (Esri) (%) 15.10% 14.90% 14.80% 2023 Household Income $25,000-$34,999 (Esri) (%) 7.30% 7.70% 7.80% 2023 Household Income $35,000-$49,999 (Esri) (%) 12.50% 11.90% 11.80% 2023 Household Income less than $15,000 (Esri) (%) 8.50% 8.50% 8.70% 2023 Household Income $15,000-$24,999 (Esri) (%) 9.90% 9.90% 10.00% Household Income Breakdown 10 minutes 15 minutes 30 minutes 2023 Total Population Age 85+ (Esri) (%) 2.84% 2.70% 2.52% 2023 Total Population Age 18+ (Esri) (%) 79.83% 79.87% 80.15% 2023 Total Population Age 75-79 (Esri) (%) 3.86% 4.11% 4.16% 2023 Total Population Age 80-84 (Esri) (%) 2.52% 2.61% 2.56% 2023 Total Population Age 65-69 (Esri) (%) 6.30% 6.64% 7.00% 2023 Total Population Age 70-74 (Esri) (%) 5.56% 5.82% 6.01% 2023 Total Population Age 55-59 (Esri) (%) 6.18% 6.47% 6.75% 2023 Total Population Age 60-64 (Esri) (%) 6.72% 7.12% 7.41% 2023 Total Population Age 45-49 (Esri) (%) 4.94% 5.05% 5.13% 2023 Total Population Age 50-54 (Esri) (%) 5.61% 5.79% 5.92% 2023 Total Population Age 35-39 (Esri) (%) 6.39% 6.15% 6.04% 2023 Total Population Age 40-44 (Esri) (%) 5.91% 5.88% 5.76% 2023 Total Population Age 25-29 (Esri) (%) 7.06% 6.57% 6.42% 2023 Total Population Age 30-34 (Esri) (%) 7.22% 6.72% 6.48% 2023 Total Population Age 15-19 (Esri) (%) 5.89% 5.83% 5.77% 2023 Total Population Age 20-24 (Esri) (%) 6.27% 5.89% 5.69% 2023 Total Population Age 5-9 (Esri) (%) 5.60% 5.56% 5.48% 2023 Total Population Age 10-14 (Esri) (%) 5.58% 5.71% 5.69% Age Breakdown 10 minutes 15 minutes 30 minutes
2023 Total Population Age 0-4 (Esri) (%) 5.54% 5.37% 5.22% 30 minutes
231.91
103.15
114.36
2023 Camp Fees (Avg) 26.19 26.73 26.97
2023 Fees for Participant Sports excluding Trips (Avg) 101.32 102.58 2023 Fees for Recreational Lessons (Avg) 112.75 113.50
Spending: Recreation 10 minutes 15 minutes
2023 Membership Fees for Social/Recreation/Civic Clubs (Avg) 230.99 232.29 DRAFT
Packet Pg. 1079 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) APPENDIX – LOCAL DEMOGRAPHIC AND SOCIOECONOMIC MAPS
DRAFT
Packet Pg. 1080 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) APPENDIX – REGIONAL DRIVETIME MAP
DRAFT
Packet Pg. 1081 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) APPENDIX – LOCAL FACILITIES
Indoor Court Facilities
Drive
Time
(Minutes)
Shasta Family YMCA 2
Shasta Athletic Club 5
P.R.O. Athletics Gym 5
Big League Dreams 9
Sun Oaks 10
CCC Gym 19
Happy Family Gymnasium 21
Tehama Family Fitness Center 35
Maywood Middle School 51
Mountain Fitness CA - South 60
Family Entertainment Center Facilities
Drive
Time
(Minutes)
Area 151 1
Gold Mine Arcade 5
Chuck E Cheese 6
Country Bowl 6
Rare Air Trampoline Park 8
Shasta Lanes Bowling Alley 8
Oasis Fun Center 10
Nano VR Escape 12
Knick's Funzone 31
Lariat Bowl 32
Java Lanes 46
Sports Performance Facilities
Drive
Time
(Minutes)
PRO Athletics 3
Competitive Edge Athletics 33
Fitness-YMCA Facilities
Drive
Time
(Minutes)
The Shasta Family YMCA 3
Shasta Athletic Club 3
Everyday Fitness & Training 4
Curves 5
Rebel Fit Co 5
Planet Fitness 5
Planet Fitness 5
AnyTime Fitness 6
FemIt Redding 7
Gyms House 7
Sun Oaks 8
The Boneyard Strength and Conditioning 12
Anderson Family Fitness Center 13
Flexed Fitness 13
AnyTime Fitness 14
Multi-Purpose Field Facilities
Drive
Time
(Minutes)
Caldwell Park Soccer Field 3
Shasta HS Athletic Field 5
California Soccer Park 10
Enterprise Park Soccer Field 12
Anderson River Park Soccer Fields 16
Anderson Union HS - Bob Reid Stadium 17
Cottonwood Little League Fields 18
West Valley Eagles Field 26
Red Bluff Soccer Fields 34
Berrendos Middle School 34
Vista Preparatory Academy 36
Red Bluff High School 36
Corning Union High School 49
Los Molinos High School 49
North Valley High School 61
Mount Shasta Youth Sports Park 65
DRAFT
Packet Pg. 1082 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) APPENDIX – LOCAL FACILITIES
Diamond Field Facilities Drive Time
(Minutes)
K2 Field 4
K1 Field 4
K3 Field 4
South City Park 4
University Prep School 6
Big League Dreams Redding 9
East Redding LL 9
Enterprise High School Baseball Field 9
Redding Collegiate Academy 9
Buckeye Park 10
Shasta High School Baseball field 11
Dietrich Baseball Park 12
Wynn price Park and Baseball Field 12
Central Valley HS 13
Volonte Park 15
Gabe Miranda Ball Field @ Millville Elementary School 15 Shasta Dam Area Little League 15
Cottonwood Little League 16
River Splash 16
West Valley Eagles Field 24
Diamond Park 32
Red Bluff High School 34
Trainor Park 36
Lewiston Community Park 42
Mill Creek Park 48
Yost Park 50
Corning Union High School 50
Estil C Clark Park 51
DRAFT
Packet Pg. 1083 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) APPENDIX – REGIONAL FACILITIES
Indoor Court Facilities Drive Time
(Minutes) Assets/Amenities
Big League Dreams Redding 9
20,000 square-foot indoor pavilion equipped for
indoor soccer and hockey
Hardwood Palace 157
8 BB courts, café, skyview mezzanine, and
meeting rooms - 70,000 total square feet -
adjacent to old Courtside Basketball Center
All World Ball Academy 164 3 BB courts
NorCal Courts 176 3 BB courts and 2 "school-length" courts The Ultimate Fieldhouse 185 4 full courts plus half/training court - 300,000 annual visitors, approximately
Recreational Sports Facility 194 3 BB courts, 3 weight rooms, Olympic-sized pool, 7 racquetball courts, and 6 squash courts
Triple Threat Oakland 195 3 basketball courts
Moscone Convention Center 197 Convention layout
Courtside Sports - Manteca 204 3 full courts/6 VB courts Reno/Sparks Convention Center 206 48 Court tournament capacity at convention center
Silver State Athletic Center- North Facility 206 4 VB courts and 2 Indoor Beach VB courts Sonoma County Event Center 212 Arena/event convention layout SAP Center at San Jose 224 Arena/event convention layout Spartan Recreation and Aquatic Center 225 3 full courts, fitness center, and more at San Jose St. University
Silver State Athletic Center- South Facility 230 3 VB Courts, retail, and 4 pickleball courts Arrillaga Center for Sports and Recreation 233 3 BB courts, fitness, fencing center, and 7 squash court
Dignity Health Sports Complex 395
5 BB courts, weight room, 3 classrooms,
industrial kitchen, pro shop, and Pixellot
automated cameras
DRAFT
Packet Pg. 1084 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) APPENDIX – REGIONAL TOURNAMENTS AND EVENTS (SAMPLE) Facility Tournament Type Tournament Name City, State Games Dates Price Aim Sportsplex Basketball End of the Summer Invitational Seal Beach, CA 3 min 8/10-11/19 $275-$300 each team Aim Sportsplex Basketball End of the Summer Invitational Seal Beach, CA 3 min 8/11-12/18 $300 each team American Sports Centers Basketball Winter Challenge Tournament Ladera Ranch, CA 1/12-13/19 $250-$275 each team Anteater Recreation Center Basketball The Swoosh Summer Madness Orange County, CA 3 min 8/10-11/19 $100-$325 each team Carter High School Basketball Attack the Rack Showcase Rialto, CA 3 min 8/3-4/19 $200-$225 each team Courtside Basketball Center Basketball Mother's Day Jam Rocklin, CA 2 May 7, 2022: $150 Courtside Basketball Center Basketball Christmas Showcase (Ranking Event 3-4 Games Guaranteed) Rocklin, CA 2 December 17-18, 2022: $150 Courtside Basketball Center Basketball CourtSide New Years Kickoff Rocklin, CA 3 January 7-8, 2023 $245 Courtside Basketball Center Basketball CourtSide Winter Classic Rocklin, CA 3 January 21-22, 2023: $225 Courtside Basketball Center Basketball February Hoop Fest Series 1 Rocklin, CA 3 February 4-5, 2023: $225 Courtside Basketball Center Basketball Hearts & Hoops Rocklin, CA 3 February 11-12, 2023: $225 Courtside Basketball Center Basketball President’s Day Classic Rocklin, CA 3 February 18-19, 2023: $225 Courtside Basketball Center Basketball February Hoop Fest Series 2 Rocklin, CA 3 February 25-26, 2023: $225 Courtside Basketball Center Basketball March Mania Rocklin, CA 3 March 4-5, 2023: $225 Courtside Basketball Center Basketball Bracket Busters Rocklin, CA 3 March 11-12, 2023: $225 Courtside Basketball Center Basketball St Patty’s Showdown Rocklin, CA 3 March 18-19, 2023: $245 Courtside Basketball Center Basketball March Madness Rocklin, CA 3 March 25-26, 2023: $225 Courtside Basketball Center Basketball April Fool’s Tournament Rocklin, CA 3 April 1-2, 2023: $225 Courtside Basketball Center Basketball Easter Extravaganza (Saturday Only) Rocklin, CA 2 April 8, 2023: $165 Courtside Basketball Center Basketball King & Queen Of The Ring Rocklin, CA 3 April 15-16, 2023: $225 Courtside Basketball Center Basketball Exposure Camp/Tournament Rocklin, CA 3 April 22-23, 2023: $225 Courtside Basketball Center Basketball NorCal Spring Shootout Rocklin, CA 3 April 29-30, 2023: $225 Courtside Basketball Center Basketball May Mayhem Rocklin, CA 3 May 6-7, 2023: $225 Courtside Basketball Center Basketball Mother’s Day Jam (Saturday Only) Rocklin, CA 2 May 13, 2023: $245 Courtside Basketball Center Basketball Memorial Day Tune Up Rocklin, CA 3 May 20-21, 2023: $245 Courtside Basketball Center Basketball National Tournament (D5 Global) Rocklin, CA 3 June 3-4, 2023 $225 Courtside Basketball Center Basketball Exposure Camp (Team Arsenal) Rocklin, CA 3 June 10-11, 2023: $225 Courtside Basketball Center Basketball Father’s Day Jam (Saturday Only) Rocklin, CA 2 June 17, 2023: $165 Courtside Basketball Center Basketball Summer Tip Off Rocklin, CA 3 June 24-25, 2023: $225 Courtside Basketball Center Basketball *4th Of July Bash Rocklin, CA 3 July 1-2, 2023: $245 Courtside Basketball Center Basketball Battle Of The Valley Rocklin, CA 3 July 9-10, 2023: $225 DRAFT
Packet Pg. 1085 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex) APPENDIX – REGIONAL FACILITIES
Regional Multi-Purpose Field Facilities Drive Time
(Minutes) Capacity
Lithia and Driveway Fields 147 5 turf MP fields and 10 turf diamond fields of varying sizes
Davis Soccer Fields 148 11 grass MP fields
Cherry Island Soccer Complex 155 10 grass soccer fields - full-sized Stockton Soccer Complex 187 9 grass soccer fields - full-sized Mary Grogan Community Park 227 42-acre park with 7 lighted soccer fields (3 turf) and jogging track - additional fields nearby
Turlock Regional Sports Complex 229 9 full grass MP fields Morgan Hill Outdoor Sports Center 239 2 full turf MP fields and 9 grass MP fields with 1 additional grass practice field
Regional Diamond Field Facilities Drive Time
(Minutes) Capacity
Big League Dreams Redding 9 5 300' fields, 20,000 SF indoor space, F&B Klamath Falls Little League 146 8 little league fields
Lithia and Driveway Fields 147 5 turf MP fields and 10 turf diamond fields of varying sizes
Irving H. Lambrecht Sports Complex 163 4 x 300' field fields and 4 x little league fields Hal Bartholomew Sports Park 166 8 diamond fields, 8 MP fields, and 12 tennis courts
JOBL Complex 177 16 little league fields
Pleasanton Sports Complex and Ken Mercer
Sports Park
200
23 little league fields and 13 grass soccer fields
cross-lined and separately adjacent to diamond
fields
Big League Dreams Manteca 203 6 x 300' diamond fields, batting cages and support building Legacy Fields Sports Complex 208 8 grass MP fields and 10 softball/LL fields Shadow Mountain Sports Complex 208 10 total diamond fields including 2 flex fields Mistlin Sports Park 209 6 diamond fields and 6 MP fields Golden Eagle Regional Park 217 12 turf softball/LL fields and 3 turf MP fields Twin Creeks Sports Complex 223 10 300' flex turf diamond fields with youth MP fields in infield
Governors Field Complex 230 6 diamond fields
DRAFT
Packet Pg. 1086 Attachment: Feasibility Report (9.6(c)--Oral Presentation by The Sports Facilities Companies on Multi-Court Complex)