22/09-24
CITY OF SIMI VALLEY
MEMORANDUM
Oc
tober 21, 2024
T
O: City Council
F
ROM: Office of the City Manager
SUBJECT: REQUEST FOR DIRECTION FROM THE CITY COUNCIL ON THE
PROPOSED AMPHITHEATER AT THE SIMI VALLEY CIVIC CENTER
STAFF RECOMMENDATION
I
t is recommended that the City Council provide further direction on the proposed amphitheater at the Simi Valley Civic Center.
BACKGROUND AND OVERVIEW
A
t the August 30, 2023, City Council retreat, City Council Member Litster presented to the City Council regarding a proposed performing arts facility at the Simi Valley Civic Center. As a result , the City Council authorized the City Manager to issue a Request for P roposals (RFP) for a feasibility study and approved an Ad Hoc Committee comprised of Council Member Litster and Mayor Pro Tem Rhodes to work with staff on the feasibility study. Staff subsequently issued an RFP, reviewed proposals, and on February 12, 2024, the City Council approved a contract with C.H. Johnson Consulting, Inc. (CHJ) to prepare the feasibility study.
C
HJ completed the Feasibility Study for a Simi Valley Amphitheater, which assesses the project's viability from multiple angles, including market demand, facility size, and financial sustainability. Various stakeholder interviews were conducted to understand the local performing arts industry’s trajectory, the needs of com munity stakeholders, and whether the proposed venue would help meet those needs. The study examines the competitive landscape in the region and evaluates similar facilities across the Unit ed States to determine an appropriate size and the anticipated cost to construct the potential amphitheater. The comparisons also provide insights into potential market positioning and operational expectations for Simi Valley's proposed amphitheater. S taff is now seeking direction from the City Council on the next steps for the potential amphitheater project.
FINDINGS AND ALTERNATIVES
C
HJ engaged with over 30 individuals from various organizations, including the Simi Valley Arts Commission, the Simi Valley Cultural Arts Center Foundation, the Actor’s Repertory Theatre of Simi Valley, and the Rancho Simi Recreation and Parks District , through focus groups and interviews. The findings revealed significant local interest in a new amphitheater to support arts and cultural programming and to serve as a venue for community events. There is a clear need for existing and new arts and cultural education AGENDA ITEM NO.
9A
22/09-24
programs to have a dedicated space and a large gathering place for the community. The study highlights that the proposed amphitheater would be a valuable asset, enhancing cultural amenities and providing a much-needed venue for local events.
CHJ recommends a modest 2,500- seat amphitheater with a raised, covered stage equipped with a basic grid system for lighting, sound, and other technological capabilities based on input from the community, stakeholder interviews, and the data collected in the feasibility study. With a capacity of 2,500, the amphitheater could host a diverse range of programming, from commercial and touring events to support for local arts organizations.
The proposed design would include a concrete or hard surface pad near the stage that will accommodate around 1,000 temporary folding chairs, complemented by a gently sloped or tiered grass area designed for lawn seating for 1,500 attendees. The design creates multifunctional space, enhancing the connectivity of the Civic Center and adjacent park, thereby creating a vibrant community hub. The proposed size and layout of the amphitheater also considered the confines of the proposed 3.5-acre site and the existing surrounding land uses.
Five amphitheaters comparable to the proposed Simi Valley venue were assessed as part of the study. The venues included Levitt Pavilion Dayton, Levitt at the Falls, The Ville Amphitheater, Bruns Memorial Amphitheatre, and Moreno Valley Civic Center. Current construction costs for these facilities range from $5.6 million to $7.5 million. The plan and design phase for a Simi Valley Amphitheater would take approximately 18 to 24 months, followed by an estimated 9 to 12 months for construction. In light of the time frame before construction begins and the potential for rising construction costs and other economic factors, an approximately $7 million cost estimate for the design and construction of the venue can be expected. However, a final design concept for the proposed amphitheater would need to be completed in order to provide a more accurate project cost. Staff anticipates that the cost to hire an architect to create a site plan and design the venue will be approximately $350,000.
The proposed amphitheater would host between 21 and 31 commercial and community events yearly. The projected demand includes existing Simi Valley events that may shift to the amphitheater. With this type of venue, there will also be a wide array of community use for registrations, small expos, and other non- commercial events. Over th e next ten years, these events could attract between 20,000 and 36,000 attendees annually. The proposed facility could cater to local needs but faces challenges in attracting major commercial acts due to the saturation of existing venues in the Los Angeles metropolitan area. The regional market is highly competitive, with several larger and more established venues. Nearby facilities are also being proposed, including a 4,000- seat amphitheater at Moorpark College and an amphitheater at the Thousand Oaks Civic Center.
Financially, the proposed amphitheater is projected to operate at a loss. Initial estimates indicate that the venue will face an average annual operating deficit of $153,400 during the first ten years of operation. The Operating Project ions and Impacts section of the Feasibility Study provides a more detailed breakdown of the assumptions used to calculate the anticipated revenues and expenses. These financial commitments will impact the City’s budget, necessitating the allocation of funds specifically for this project, which may restrict resources available for other community initiatives and services. 2 22/09-24
Furthermore, the financial burden on the City could increase if the amphitheater fails to meet its projected revenue targets.
CHJ recommends that the City explore various funding mechanisms such as general obligation bond financing, revenue bond financing, and dedicated sales tax or hotel occupancy tax initiatives to fund construction. If the City issues a $7 million dollar general obligation bond to fund design and construction, the City can expect an estimated $455,000 annual debt service payment . When factoring in the anticipated operating deficit, the City could face a total subsidy of approximately $608,400 yearly. Establishing a robust nonprofit foundation and seeking broad community support will be required to fund the construction and support ongoing operations of the venue. This emphasizes the need for a careful financial strategy, potentially involving aggressive fundraising to mitigate operational costs and offset the inherent financial risks.
Despite these financial challenges, the potential economic impacts are noteworthy. In Year 5, the amphitheater is projected to generate $3.1 million in total spending, creating 17 jobs and generating approximately $149,000 in tax revenues. This influx c ould significantly benefit local businesses and contribute to the city’s economy, highlighting the amphitheater's role as an economic catalyst, even if it operates at a loss. The presence of a new venue could enhance Simi Valley's attractiveness as a tourism destination, helping retain local spending that currently flows to larger regional venues.
CHJ concludes that a practical, no-frills amphitheater venue would benefit the community but will require co mmunity investment and support. In other communities where a commercially viable amphitheater is not achievable, as is the case in Simi Valley, the host community needs to decide if they choose to view an amphitheater as part of the community’s infrastructure, like a library or park. These types of amenities are seen as assets and are often subsidized to maintain operations and serve the community.
The following alternatives are available to the City Council:
1. Receive and file the Feasibility Study for a Simi Valley Amphitheater with no further action taken at this time;
2. Direct the City Manager to City Manager to issue a Request for Proposals to prepare initial design concepts and to complete a more in- depth market and feasibility study; ; and/or
3. Provide alternative direction to Staff
Staff has no recommendation.
SUGGESTED CITY COUNCIL MOTION
There is no suggested motion.
3 22/09-24
SUMMARY
On February 12, 2024, the Simi Valley City Council approved a contract with CH J to prepare a feasibility study for a proposed amphitheater at the Simi Valley Civic Center.
CHJ completed the Feasibility Study for a Simi Valley Amphitheater in September 2024, and a draft was shared with the City’s Amphitheater Ad Hoc Committee for their review.
Staff is now seeking direction from the City Council on further action for the potential amphitheater. If the C ity Council approves moving forward to the Plan phase, Staff will prepare RFPs for the initial design work and for a consultant to complete a more in-depth market and feasibility study based on the final proposed amphitheater design. Staff anticipates that the cost to hire an architect to create a site plan and design the venue will be approximately $350,000.
____________________________________
Samantha C. Argabrite
City Manager
Prepared by: Luis Garibay, Assistant City Manager
INDEX Page
Feasibility Study for a Simi Valley Amphitheater .............................. 5 4 1
Feasibility Study for a Simi Valley
Amphitheater
Simi Valley, CA
DRAFT
September 2024
DRAFT
5 TABLE OF CONTENTS
2 SECTION2
PAGE 12:
Market Analysis
SECTION1
PAGE 3:
Introduction
SECTION3
PAGE 31:
Industry Trends
SECTION5
PAGE 65:
Recommendations & Projected Impacts
SECTION4
PAGE 50:
Case Studies
DRAFT
6 3
1. Introduction
DRAFT
7 4
Transmittal Letter
Re: Feasibility Study for a Simi Valley Amphitheater
Dear Ms. Argabrite:
C.H. Johnson Consulting, Inc. (Johnson Consulting) is pleased to submit this DRAFT report to you regarding the Feasibility Study for an Amphitheater in Simi Valley, CA. Pursuant to our engagement, this report fulfills the scope of work outlined in the project proposal submitted by Johnson Consulting to the City of Simi Valley on December 15th, 2023.
Johnson Consulting has no responsibility to update this report for events, plan modifications, and circumstances occurring after the date of this report. The findings presented herein reflect analyses of primary and secondary sources of information. Johnson Consulting used sources deemed to be reliable but cannot guarantee their accuracy. Moreover, some of the estimates and analyses presented in this study are based on trends and assumptions, which can result in differences between projected results and actual results. Because events and circumstances frequently do not occur as expected, those differences may be material. This report is intended for the Clients’ internal use and cannot be used for project underwriting purposes without Johnson Consulting’s written consent.
We have enjoyed serving you on this engagement and look forward to providing you with continuing service.
Sincerely,
DRAFT
C.H. Johnson Consulting, Inc.
DRAFT
8 5
Study Introduction & Methodology
The Consulting Team was retained by the City of Simi Valley to perform a feasibility study for an amphitheater to be located in the City’s Civic Center. The report aims to inform the City of Simi Valley on strategic decisions and investments as it works towards enhancing the lives of its residents and visitors. The proposal document submitted to the City of Simi Valley by Johnson Consulting outlines a detailed list of services for the study. Broadly, the objective of this study is to answer the following questions:
• What is the overall assessment of the market?
• What size and type of facility can the market support? • Who will utilize the venue and what are their needs, desires and expectations? • How will the venue operate from a demand and financial perspective? In order to answer the questions above, the Consulting Team developed and executed a comprehensive methodology for the study, which is illustrated by the figure on the right. The observations, analysis, and conclusions of the study will be presented throughout the remaining sections of this report.
Strategic
Recommendations
Market
Analysis Case Studies
Stakeholder
Engagement
& Industry
Trends
Operating
Projections & Impact
Estimates
Funding & Marketing
Strategies
DRAFT
9 6
Project Overview
When the Simi Valley Civic Center was originally master planned, the 3.5- acre site being evaluated in this report was slated for an amphitheater. The 2003 site plan for this area is shown at right, and an amphitheater was to be centrally located on site. At the time, an LA Times article opined on the proposed expansion of the Civic Center stating that the “redesign of the outdoor courtyard calls for improving an amphitheater, a grassy area used for outdoor public events, and adding gardens, fountains, benches, and walking paths.” This site has also been contemplated by arts and cultural groups as a potential site for a cultural center. 20 years later, the City has reactivated the conversation regarding the development of an amphitheater on this site. The ambition of this report is to provide City leadership with the necessary information to make an educated decision on the future of this site and that any investment made by the City will have maximum value. Johnson Consulting aims to provide a blueprint for an amphitheater that is viable and sustainable for the community.
DRAFT
10 7
Executive Summary
Johnson Consulting recognizes that cultural amenities are crucial and highly beneficial to a community. The regional market, especially the Los Angeles metropolitan area, is highly concentrated with venues and can be viewed as quite competitive. Through our market analysis, stakeholder engagement, industry trends research, and case studies, Johnson Consulting believes that there is an opportunity for Simi Valley to introduce a new venue to the market with a unique opportunity to serve Simi Valley residents and visitors.
In our judgment, the local use for a new amphitheater/ arts facility in Simi Valley will be substantial. There is a need for existing and new arts and cultural education programming to have a home and for a large gathering place in the community. Established local arts organizations are in need of a venue to perform other than found spaces, as well as the capability to use the facility as a launching point for tenant organizations and other burgeoning fine arts organizations in the market. In our judgement, the tenant base will require support and there will need to be a mechanism to keep operations solvent. Due to the landscape of existing commercial venues in the region, Simi Valley is well positioned to create partnerships and synergies with larger venues and promoters in the region, despite being challenged to attracted headlining acts itself. Other venues proposed for the market, such as on the Moorpark College campus or the Thousand Oaks Civic Center, will have a larger presence and approach to marketing and will consume larger event demand, which influences the role that this proposed venue will play.
The optimal wa y to balance the local need and the attraction of commercial acts is to have a robust funding mechanism in place, such as a nonprofit foundation, that would enable the facility to fundraise. The implementation of such a foundation would increase the prospects of successful ongoing operations at a new facility in Simi Valley. Without a foundation, the venue can still be successful and highly utilized, but it would require substantially more subsidies and participation from the City to support operations. Ultimately, the community will have to prioritize and balance local community benefit or overall financial return on the investment in order to guide the project forward.
DRAFT
11 8
Executive Summary
The recommendations put forth in this report lay the foundation for this study.
Most importantly, the outcome of the study supports the feasibility of an amphitheater in the Simi Valley Civic Center.
There is a need and desire in the community for this type of venue, but the facility needs to be financially viable in order for a strategic investment by the City is made. Simi Valley has strong market and demographic attributes to support the arts and there are potential demand layers that present an opportunity for Simi Valley to capture. Key players and programming for this facility scale down from anchor events and tenants, commercial and touring events corporate, social, community, and nonprofit events, and educational and cultural programming.
It is of the opinion of Johnson Consulting that the optimal size for the amphitheater is a capacity approximately 2, 500. This size allows for site improvement while also being sensitive to the adjacent land uses. This capacity will allow for smaller, commercial touring opportunities, but will not be the primary demand driver. There should also be a degree of multifunctionality to the site to allow for flexible seating and exposition options for a variety of public and private events. The project also allows for this side of the Civic Center to be improved and upgraded and encourage connectivity to the adjacent park.
Program Element # of Seats
Amphitheater
Seated 1,000
Lawn 1,500
Total 2,500
Source: Johnson Consulting
Amphitheater Program Summary
Anchor Tenants/Events
Commercial & Touring Events
Corporate, Social, Community & Nonprofit
Educational & Cultural
Potential Demand Layers
DRAFT
12 9
Executive Summary
In summation, Johnson Consulting believes that an
improvement to the Civic Center that allows for an
amphitheater would be a significant community asset that is desired by local stakeholders and will have a positive
impact on the community.
The tables at right show the projected demand and
attendance for the amphitheater for Year 1, Year 5, and Year 10. The full 10-Year projection tables can be found in Section 5 of this report. As shown, in Year 1, the
amphitheater is estimated to host 9 commercial events and 21 community events, growing to 14 commercial events
and 31 community events by Year 10. The projected annual attendance is projected to increase from 20,688 to 36,067 over the first 10 years of operations. These demand
projections will feed into the overall operating costs for the proposed venue.
Simi Valley Amphitheater
Projected Demand (# Events)
Year 1 Year 5 Year 10
Commercial Events
Concerts 6 8 9
Festivals 3 4 5
Subtotal 9 12 14
Community Events
Ticketed Events 5 7 8
Non-Ticketed Events 7 9 9
Subtotal 12 16 17
TOTA L 21 28 31
Non-Tick eted Events include corporate events, social events, etc.
Source: Johnson Consulting
Tick eted Events include events for local arts and cultural organizations, educational institutions, etc.
Simi Valley Amphitheater
Projected Average Attendance
Year 1
% Capacity Year 1 Year 5 Year 10
Commercial Events
Concerts 60% 1,500 1,671 1,713
Festivals 55% 1,375 1,532 1,571
Community Events
Ticketed Events 30% 750 836 857
Non-Ticketed Events 10% 250 279 286
Annual Growth 1.00% 0.25%
Source: Johnson Consulting
Simi Valley Amphitheater
Projected Total Attendance
Year 1 Year 5 Year 10
Commercial Events
Concerts 9,000 13,370 15,506
Festivals 6,188 9,192 11,309
Subtotal 15,188 22,562 26,815
Community Events
Ticketed Events 3,750 5,849 6,682
Non-Ticketed Events 1,750 2,507 2,570
Subtotal 5,500 8,356 9,252
TOTA L 20,688 30,918 36,067
Source: Johnson Consulting
DRAFT
13 Simi Valley Amphitheater
Projected Operating Revenues and Expenses (Inflated $000) Year 1 Year 5 Year 10
Revenues
1 Rents $67 $103 $135
2 Ticket Fees 38 63 84
3 Net Food & Beverage and Merchandise 12 21 27
4 Reimbursed Event Labor 23 36 47
5 Donations / Memberships / Grants 5 17 19
6 Advertising/ Sponsorships 8 28 31
7 Naming Rights 45 50 56
8 Total $197 $316 $399
Expenses
9 Salaries and Wages $130 $149 $177
10 Benefits 43 50 59
11 Administrative and General 50 55 62
12 Event Labor 12 18 24
13 Event Expenses 50 77 101
14 Maintenance / Repairs / Landscaping 8 12 15
15 Marketing 25 28 31
16 Operation / Occupancy / Utilities 32 48 60
17 Other 11 13 16
18 Reserve for Replacement 6 9 12
19 Total $367 $459 $558
20 Net Operating Income (Deficit) ($170) ($143) ($158)
21 Debt Service Payment ($455) ($455) ($455)
22 NOI(D) After Debt Service ($625) ($599) ($614)
Notes:
Line 16 - Includes insurance, license, equipment leases, energy costs, etc.
Line 20 - Net Operating Income (Deficit) does not include the cost of debt service.
Source: Johnson Consulting
Line 5 - Donations/ Memberships may be higher based upon marketing efforts of the facility management and community support for the facility. 10 Executive Summary
Notwithstanding the identified community benefit of this development, the Consulting Team recognizes that this facility will not be commercially viable at this scale and is projected to operate at a loss and therefore will be challenged to cover debt service. These projections are based on the assumptions detailed in Section 5 of this report, which include a conservative fundraising model with the City of Simi Valley as the venue owner and operator. A more aggressive fundraising model than what is assumed may help to offset the financial risk of the venue operator.
As shown in the projected operating budget table at right, in Year 5, generally the year of stabilization, the proposed amphitheater is projected to operate with an annual Net Operating Deficit of ($ 143,000). Based on the estimated $7 million construction cost for the project, debt service payment is estimated at $455,000, annually, resulting in Net Operating Deficit after Debt Service at $599,000 in Year 5.
Detailed event demand, attendance, and operating projections can be found in Section 5 of this report.
DRAFT
14 11
Executive Summary
As shown in the projected impacts table at right, in Year 5, generally the year of stabilization, the proposed amphitheater is projected to generate $3.1 million in total spending, $1.5 million in increased earnings, 17 jobs, and $149,000 in tax revenues from sales and lodging taxes. Additionally, a Tourism Business Improvement District (TBID) Assessment for Visit Simi, at 2 percent of charge on room nights, is estimated to be $3,000 in Year 5.
Detailed estimates on visitor spending, room night generation, and other economic and fiscal impact indicators can be found in Section 5 of this report.
Simi Valley Amphitheater
Estimated Economic and Fiscal Impact (Inflated $000)
Economic Impact ($000) Year 1 Year 5 Year 10
1 Direct Spending Multiplier Rate $1,109 $1,811 $2,373
2 Indirect Spending 0.35 384 627 822
3 Induced Spending 0.37 410 670 878
4 Total Spending $1,903 $3,108 $4,074
5 Increased Earnings 0.81 $898 $1,466 $1,921
6 Increased Employment 10.35 11 17 20
F iscal Impact ($000) Year 1 Year 5 Year 10
Sales and Use Tax Tax Rate
7 California State Sales Tax* 6.00% $67 $109 $142
8 Ventura County Sales Tax 0.25% 3 5 6
9 Ventura County Local Tax Sl 1.00% 11 18 24
10 Simi Valley City Sales Tax 0.00% 0 0 0
11 City Hotel Room Tax 10.00% 11 17 23
12 Total Sales Tax $91 $149 $195
13 TBID A ssessment for V isit Simi 2.00% $2 $3 $5
*The City of Simi Valley does not receive a portion of this.
Source: Johnson Consulting
DRAFT
15 12
2. Market Analysis
DRAFT
16 13
Introduction
In order to analyze the opportunities for an outdoor event venue in Simi Valley’s Civic Center, Johnson Consulting conducted a detailed analysis of the economic and demographic conditions in Simi Valley as well as 30-, 60-, and 90-minute drive time radii from the Simi Valley Civic Center, relative to county, state and national averages.
While characteristics such as population, employment, education, and income are not the only predictors of performance for arts and entertainment venues, they provide insight into the capacity of a market to provide sustainable support for such facilities and the activities that occur there. In addition, the size and role of a marketplace, its civic leadership, proximity to other metropolitan areas, transportation concentrations, and the location of competing and/or complementary attractions, directly influence the scale and quality of new, expanded, or renovated facilities that can be supported within that particular market.
DRAFT
17 14
Accessibility
Simi Valley is in the southeast region of Ventura County, California, about 40 miles from downtown Los Angeles. The City borders Thousand Oaks, Moorpark, and Chatsworth and is surrounded by the Santa Susana Mountains, west of the San Fernando Valley.
Simi Valley originally grew as a bedroom community for the cities in Los Angeles as a result of the freeway constructed over the Santa Susana Pass.
Simi Valley is accessible by car and public transit. California State Route 118 runs west to east through Simi Valley, providing connections to State Route 23 and U.S. Route 101, a major north- south highway, as well as Interstates 5, 405, and 210. The City of Simi Valley Transit provides a fixed route bus service that connects to the Ventura County Transportation Commission Intercity bus service and one route provides a commuter connection with the Los Angeles County Metropolitan Transit Authority in Chatsworth.
The Simi Valley rail station is a passenger rail utilized by Amtrack and Metrolink.
There are three major nearby airports including the Los Angeles International Airport (42 miles), the Burbank Airport (26 miles), and the Camarillo Airport (25 miles).
DRAFT
18 15
Population
Large and growing population bases are a critical component of ensuring the success of event and entertainment facilities. Larger regional populations equate to more potential “drive-to” visitors and locally based demand. Simi Valley is the third largest city in Ventura County with a resident population of 125,971 in 2023. Within a 30- minute drive-time radius, the population increases to 1.78 million and is over 6 million within a 60-minute drive-time radius of the site. Within a 90-minute drive-time radius, there is access to a population of over 12.5 million people. As shown in the dot density map, the preponderance of regional population is centered around downtown Los Angeles.
2000 2010 2023 2028 CA GR*
2010-2023
CA GR*
2023-2028
United States 281,421,906 308,745,538 337,470,185 342,640,129 0.7% 0.3% California 33,871,648 37,253,956 39,877,642 40,140,276 0.5% 0.1% Ventura County 753,429 823,318 844,853 844,265 0.2% 0.0% Simi Valley 111,607 124,254 125,971 126,763 0.1% 0.1%
Simi Valley (30 Minute Drive-Time) 1,625,475 1,724,866 1,774,466 1,767,829 0.2% -0.1% Simi Valley (60 Minute Drive-Time) 5,705,855 5,933,343 6,072,493 6,091,366 0. 2% 0.1% Simi Valley (90 Minute Drive-Time) 11,842,693 12,298,368 12,544,448 12,522,682 0.2% 0.0% *Compounded Annual Growth Rate
Note: Drive-time from Simi Valley City Hall
Sources: Esri BAO, Johnson Consulting
Historic, Current, and Forecasted Population
Between 2010 and 2023, the population of Simi Valley grew at slightly lower, but comparable, rate to the various drive-time catchments, which are marginally lower than the state and national growth rates within the same time period. In the next 5 years, population rates are expected to follow a similar pattern of slow growth.
DRAFT
19 16
Age
Age is an important demographic indicator to consider when evaluating the market. Some markets seek to combat “brain drain,” a phenomenon where primarily college-educated young professionals are leaked to larger metropolitan markets. Other markets seek to attract wealthier retirees, which bring economic spending, leisure time, and philanthropic dollars with them. Event facilities must offer amenities that match their markets and cater to all ages to achieve a programming balance that works within the social and economic context of the market.
The residents of Simi Valley had a median age of 39.7 in 2023, skewing older than the other comparative geographies. In the next 5 years, the median age in Simi Valley is projected to increase to 40.8, growing at a rate of 0.5 percent per annum. A large portion, or 42 percent of residents within Simi Valley fall between ages 30 and 60, as shown in the age distribution chart. This reveals the target age group when considering programming for a new outdoor event venue in Simi Valley, but also provides an opportunity to attract younger families to the community.
Sources: Esri BAO, Johnson Consulting
2023 Age Distribution
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%Percentage of Population
United States California Simi Valley
42%
2010 2023 2028 CA GR*
2010-2023
CA GR*
2023-2028
United States 37.1 39.1 39.8 0.4% 0.4%
California 35.2 37.0 37.9 0.4% 0.5%
Ventura County 36.2 38.2 39.5 0.4% 0.7%
Simi Valley 37.7 39.7 40.8 0.4% 0.5%
Simi Valley (30 Minute Drive-Time) 35.8 37.9 39.1 0.4% 0.6% Simi Valley (60 Minute Drive-Time) 35.9 37.9 39.0 0.4% 0.6% Simi Valley (90 Minute Drive-Time) 34.8 36.6 38.0 0.4% 0.8% Note: Drive-time from Simi Valley City Hall
Historic, Current, and Forecasted Median Age
*Compounded Annual Growth Rate
Sources: Esri BAO, Johnson Consulting
DRAFT
20 17
Education & Income
Education and income, although not strict predictors of event and entertainment facility performance, are important market attributes for benchmarking the level of activity. Markets with higher educational attainment and income levels are more likely to have a robust economic base and healthy education system, which are key components of ensuring long-term growth and resiliency. Well- educated, higher income markets, such as Simi Valley, have a significant advantage when it comes to attracting new businesses, and are also more likely to have the nightlife, retail, and tourism scenes that appeal to event planners. While there is not a large university presence in Simi Valley, the community is served by the Simi Valley Unified School District with three middle schools and five high schools, one of which, Santa Susan High School, has a robust performing arts program.
Simi Valley has the highest median income reported, but is projected to grow at a slower rate than the comparative geographies. With a higher gross income comes a higher disposable income, resulting in a higher propensity to spend on arts and culture.
2023 2028 CA G R*
United States $72,603 $82,410 2.6%
California $89,455 $103,466 3.0%
Ventura County $101,546 $111,968 2.0%
Simi Valley $109,416 $120,349 1.9%
Simi Valley (30 Minute Drive-Time) $90,152 $104,563 3.0% Simi Valley (60 Minute Drive-Time) $85,627 $101,109 3.4% Simi Valley (90 Minute Drive-Time) $83,775 $97,911 3.2% Note: Drive-time from Simi Valley City Hall
*Compounded Annual Growth Rate
Sources: Esri BAO, Johnson Consulting
Median Household Income
Sources: Esri BAO, Johnson Consulting
2023 Educational Attainment
9.6%
27.0% 27.3%
36.1%
14.1%
21.6%
26.5%
37.8%
7.4%
21.9%
33.5%
37.2%
0%
5%
10%
15%
20%
25%
30%
35%
40%
Less than High
School
High School or
Equivalent
Some College /
Associate's
Bachelor's or Higher
Percent of Adults Age 25+
United States California Simi Valley
DRAFT
21 18
Consumer Behavior
With a higher median income in the area in and around Simi Valley compared to the nation, there is a higher average to spend on entertainment and recreation, as reflected in the table below. Simi Valley residents are spending 44% more on entertainment, recreation, and live performance tickets than the national average.
Further, Simi Valley residents are more likely to fundraise and volunteer compared to the national average. These can be important factors when contemplating investing in a community-use focused asset.
Entertainment/Recreation Fees & Admissions $1,026 144 $878 123 $870 122 $823 116 Tickets to Theatre/Operas/Concerts $78 144 $67 123 $67 123 $63 116 TOTA L $1,105 $945 $937 $886
* Average spend per person, per annum
** National Average = 100
Note: Drive-time from Simi Valley City Hall
Sources: Esri BAO, Johnson Consulting
Index**
Simi Valley (90
Minute Drive-Time)
Average
Spend* Index**
Average Spending on Entertainment and Recreation - 2023 Spending Category
Simi Valley (60
Minute Drive-Time)
Simi Valley (30
Minute Drive-Time)Simi Valley
Average
Spend* Index**Average
Spend* Index**Average
Spend*
Engaged in
Fundraising
Volunteered for
Charitable
Organization
Went to Live
Theater
Attended
Classical Music
or Opera
Performance
Attended
Country Music
Performance
Attended Dance
Performance
Attended Rock
Music
Performance
California 101 95 109 115 90 114 109
Ventura County 104 102 112 111 91 108 114
Simi Valley 109 109 116 104 93 98 115
Simi Valley (30 Minute Drive-Time) 106 94 113 114 8 4 117 115 Simi Valley (60 Minute Drive-Time) 109 92 117 122 84 124 114 Simi Valley (90 Minute Drive-Time) 100 88 111 121 84 122 113 Note 1: Drive-time from Simi Valley City Hall
Note 2: National Average = 100
Sources: Esri BAO, Johnson Consulting
2023 Behavior Trends
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Ethnicity
Between 2023 and 2028, the ethnic diversity of the 30-minute drive-time around Simi Valley is expected to grow. As shown in the chart below, the percentage of Hispanics, Asians, African Americans, Indigenous, and other races is projected to increase. These identities are important in consideration for the types of programming that could be in demand for Simi Valley, as well as marketing strategies for a new outdoor event venue. Simi Valley has an opportunity to create a community space where culture and diversity can be shared and celebrated. *30-minute drive-time
Sources: Esri BAO, Johnson Consulting
Simi Valley*
Ethnicity Breakdown
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Hispanic White Other Race Two or More
Races
Asian Black/African
American
American
Indian/Alaska
Native
Pacific Islander
2023 2028
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Market Tapestry
Market tapestry segments can classify consumers based on socioeconomic factors and can provide better insight into type of consumer that would be engaging with a new venue in Simi Valley. There are several groups that were most prevalent:
Upscale Avenues: Prosperous married couples, homeowners, shoppers who appreciate quality and bargains, active in fitness.
Affluent Estates: Established wealth, well educated, well traveled, homeowners, married with children, active community
participants.
Middle Ground: Millennials with an urban mix of family and housing styles, preference for leisure activities.
Family Landscapes: Successful young families, enthusiastic about home improvement, sports, pets, and enjoy eating out and active leisure activities such as bowling, swimming, or trips to the zoo or amusement park.
Sprouting Explorers: Young homeowners with families,
multilingual and multigenerational households, hardworking, shopping and leisure focus on children, likely to have pets.
Sources: Esri BAO, Johnson Consulting
2023 City of Simi Valley Market Tapestry Groups
32.9%
20.6%
16.5%
14.4%
8.1%
0 2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Upscale Avenues Affluent Estates Middle Ground Family Landscapes Sprouting Explorers # of Households
These market segments highlight the key characteristics of the community such as successful families with a focus on their home and children and an interest in a variety of leisure activities.
The question is how to balance the attributes of existing residents while also trying to attract new visitors and residents to Simi Valley.
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Major Employers
A strong corporate and business presence can be important in the success of any event and entertainment venue because local businesses support facilities by attracting residents to the area, and providing disposable income, as well as through their requirement for event space, and through donations, sponsorships and advertising. Currently, Simi Valley’s top employer is the Simi Valley Unified School District. Quality of life amenities, such as a new arts and cultural asset, may appeal to employers and help with business recruitment and retention.
Simi Valley also benefits from many films taking advantage of its unique landscapes and proximity to Los Angeles, being located with the Los Angeles 30-mile Studio Zone. Welcoming more productions every year will result in Simi Valley becoming a more distinguished community and will bolster the vitality of the local economy.
Unemployment
High unemployment rates are indicative of socioeconomic challenges, while low unemployment rates can reflect issues like qualified workforce shortages. Simi Valley’s unemployment rate (3.9 percent in December of 2023) is lower rate throughout California (5.1 percent).
Between 2007 and 2023, Simi Valley’s unemployment rate generally tracked below both the State and national averages. While unemployment rates don’t always capture the entire picture as they ignore variables like underemployment and labor participation rate, this indicates a strong economy in Simi Valley overall.
Sources: Bureau of Labor Statistics, Johnson Consulting Unemployment Rate (2007-2023)
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
2007 2009 2011 2013 2015 2017 2019 2021 2023
United States California Simi Valley
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Location Quotients by Industry Sector
The top 3 industries with the highest number of employees in Simi Valley are:
• Health Care/ Social Assistance
• Manufacturing
• Professional/Scientific/Tech Services
The table to the right provides a location quotient analysis of the number of employees in Simi Valley by industry sector relative to that of the U.S. as a whole. Location quotients of 1 (colored white) indicate a similar relative concentration of that particular industry in the County, while values higher than 1 (colored blue) indicate higher concentrations of that industry, and values lower than 1 (colored orange) indicate lower concentrations of that industry. The location quotient values are color-coded accordingly.
Simi Valley has a particularly high concentration of employees in Information, Finance/Insurance, and Utilities. This indicates that white- collar industries are dominant in Simi Valley, which correlates to its high median household income and educational attainment rates.
Sector # of Employees % of Workforce # of Employees % of Workforce Health Care/Social Assistance 7,523 12% 22,116,242 14% 0.9 Manufacturing 7,151 11% 16,270,228 10% 1.1
Professional/Scientific/Tech Services 6,319 10% 13,955,935 9% 1.1 Retail Trade 6,213 10% 16,983,986 10% 0.9
Educational Services 5,259 8% 14,946,588 9% 0.9
Finance/Insurance 5,061 8% 8,135,458 5% 1.6
Construction 4,726 7% 11,436,649 7% 1.0
Accommodation/Food Services 3,931 6% 10,883,548 7% 0.9
Other Services (excl Public Administration) 3,094 5% 7,645,915 5% 1.0 Admin/Support/Waste Management Services 2,720 4% 7,195,390 4% 1.0 Information 2,636 4% 3,143,967 2% 2.1
Public Administration 2,564 4% 7,857,372 5% 0.8
Transportation/Warehousing 2,176 3% 9,030,322 6% 0.6
Arts/Entertainment/Recreation 1,510 2% 3,578,196 2% 1.1 Real Estate/Rental/Leasing 1,264 2% 2,901,448 2% 1.1
Wholesale Trade 1,112 2% 3,029,991 2% 0.9
Utilities 729 1% 1,335,596 1% 1.4
Agriculture/Forestry/Fishing/Hunting 212 0% 1,800,364 1% 0.3 Management of Companies/Enterprises 102 0% 216,593 0% 1.2 Mining/Quarrying/Oil & Gas Extraction 76 0% 572,355 0% 0.3 Total Employees 64,378 163,036,143
Number of Employees and Location Quotient by Industry Sector Sources: Esri BAO, Johnson Consulting
Simi Valley United States Location
Quotient
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Hotel Inventory
Data from CoStar – a hotel research firm whose statistics are widely used in the industry – indicates that the Simi Valley hotel market totals 6 properties with 676 guest rooms and 12,771 SF of total meeting space. Planned hotel properties would an additional 216 rooms of either Midscale or Upper Midscale class.
The hotel inventory tables summarize the existing and proposed hotels within Simi Valley. As shown, the largest hotel is the Grand Vista with 195 rooms and 6, 800 SF of meeting space and the highest-class hotel is the Courtyard Ventura Simi Valley with 97 rooms. While there are a total of 673 hotel rooms across the 6 hotel/motel properties available in Simi Valley, the community is absent of a large Upper Upscale hotel to accommodate visitors and top tier performers that may be attracted to an event venue in Simi Valley. There is an overall shortage of infrastructure and amenities in Simi Valley that typically support performance venues outside of the hotel stock, such as dining and shopping options.
Hotel Class Year Built
(Renovated) Rooms
Largest
Meeting
Space (SF)
Total
Meeting
Space (SF)
Grand Vista Hotel Midscale 1989 195 4,200 6,800
Best Western Posada Royale Hotel & Suites Midscale 1986 (2017) 120 1,925 4,021 Extended Stay America Los Angeles - Simi Valley Midscale 2005 104 Courtyard Ventura Simi Valley Upscale 2005 97 1,102 1,450 Holiday Inn Express Simi Valley Upper Midscale 1986 (1997) 96 500 500 Motel 6 Simi Valley Economy 1973 61
Total 673 7,727 12,771
Sources: CoStar, Johnson Consulting
Simi Valley Hotel Inventory
Hotel Class Building Status Opening Number of
Rooms
Everhome Suites Simi Valley Midscale Final Planning 2025 114 TownePlace Suites by Marriott Simi Valley Upper Midscale Proposed 2026 102 Total 216
Sources: CoStar, Johnson Consulting
Simi Valley Hotel Pipeline
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Hotel Market Performance
The pandemic has had a profoundly negative impact on the hotel industry nationally.
Notwithstanding this, Average Daily Rate (ADR) in the Simi Valley market rebounded in 2021 to $125.82. ADR increased to $148.51 by the end of 2023, a record high.
Revenue per Available Room (RevPAR) showed a similar rebound in 2023, surging to $101.54, another historical high. However, the occupancy rates rebound has been less profound. Occupancy rates started to decrease before the pandemic, and current occupancy rates have failed to return to pre-pandemic levels. A new demand generator, such as an outdoor event venue at the Simi Valley Civic Center, would typically result in a boost in room nights and an overall positive impact on the hotel market.
Simi Valley Hotel Market Performance
Sources: CoStar, Johnson Consulting
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
$220
$240
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Occupancy
ADR & RevPAR
Average Daily Rate (ADR) Revenue per Available Room (RevPAR) Occupancy $148.51
$101.54
68.4%
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Local Arts, Education, Cultural Attraction & Event Space Inventory Within Simi Valley, there are a several unique and distinctive attractions such as the Ronald Reagan Presidential Library and Museum and the Skateboarding Hall of Fame. These points of interest can be paired with an event venue to create a tourism package that can enhance as Simi Valley a tourism destination. As shown in the tables below, the event spaces that are within Simi Valley that are not housed within a hotel are limited by their capacity and price point and can restrict the types of events they can host, such as a public community event. There are also a number of local arts organizations with their own programming that could benefit from having a performance space in the community.
Venue Type Largest Space Capacity
The Ronald Reagan Presidential Library and Museum Museum 130 Strathearn Historial Park and Museum Museum 200
Simi Valley Cultural Arts Center Performing Arts Center 175 S
anta Susana Museum and Model Railroad Museum -
Skateboarding Hall of Fame and Museum Museum -
Military History Museum Museum -
Lewis Gallery Art Gallery -
Source: Visit Simi Valley, Venue Websites, Johnson Consulting Simi Valley
Arts, Education & Cultural Attractions
Venue Largest Space Capacity
Hummingbird Nest Ranch 1,000
The Vineyards 300
Moorpark Country Club 260
Wood Ranch Golf Club 250
Rancho Santa Susana Community Center 250
The Ronald Reagan Library 1,600
Strathe
arn Historical Park 220
Quail Ranch 250
Dive Studio 40
Source: Visit Simi Valley, Venue Websites, Johnson Consulting Simi Valley
Meeting & Event Space
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Regional Performing Arts Inventory
With Simi Valley being located 40 miles north of Los Angeles, the nation’s hub for entertainment, there is no shortage of live performance venues in the region. Community feedback suggests that current Simi Valley residents are in the habit of traveling outside of Simi Valley to enjoy these amenities, such as the Santa Barbara Bowl.
Having an event venue within Simi Valley will allow residents to enjoy this amenity closer to home, but will also keep dollars within the community and result in an increase in visitor spending. Further, the Civic Center site will limit the potential capacity, meaning the product developed in Simi Valley will likely not compete with larger venues.
The closest amphitheaters with smaller capacities in the region include the Libbey Bowl in Ojai and The Ford in Los Angeles, both about 30 miles from Simi Valley with an average capacity of 1, 000. New and planned developments should also be of note, such as Moorpark College and Thousand Oaks, both in the planning and design phase of a 4,000-seat amphitheater. There are also competitive venues outside of the inventory radius in the greater region such as the 4, 000-seat Vina Robles Amphitheatre. Venues with a capacity of over 3,000 will likely compete for a different tier of programming as they have a larger scale and a high caliber promotion strategy as compared to a venue with 3,00 seats or less, however, the Vina Robles Amphitheatre may serve as a positioning strategy for Simi Valley.
Venue Location T yp e Total Capacity
(Largest Space)
Distance to
Simi Valley
Civ
ic Center
(miles)
Venue Location T yp e
Total
Capacity
(L
argest
Space)
Distance to
Simi Valley
Civ
ic Center
(miles)
Los Angeles Memorial Coliseum Los Angeles St adium 93,607 41 Peacock Theatre Los Angeles Theatre/Auditorium 7,100 40 Rose Bowl Stadium Pasadena Stadium 90,000 38 Shrine Auditorium and Expo Hall Los Angeles Theatre/Auditorium 6,300 42 Exposition Park Los Angeles Outdoor Venue 85,000 41 Pershing Square Outdoor Concert & Event Center Los Angeles Outdoor Venue 6,000 40 SoFi Stadium Inglewood Stadium 70,000 41 YouTube Theatre Inglewood Theatre/Auditorium 6,000 43 Fair plex Pomona Outdoor Venue 40,000 65 Greek Theatre Los Angeles Amphitheatre 5,801 35 Crypto.com Arena Los Angeles Arena 20,000 39 Bren Events Center Irvine Arena 5,710 80 Honda Center Anaheim Arena 19,400 67 OC Fair & Event Center Costa Mesa Arena 5,700 76 Intuit Dome Inglewood Arena 18,500 42 Starlight Bowl Burbank Amphitheatre 5,000 29 Hollywood Bowl Los Angeles Amphitheatre 17,500 31 Grand Park Los Angeles Outdoor Venue 4,500 38 Kia Forum Inglewood Arena 17,500 41 Hollywood Palladium Hollywood Theatre/Auditorium 3,800 33 Ventura County Fairgrounds Ventura Amphitheatre 15,000 40 Dolby Theatre Hollywood Theatre/Auditorium 3,320 31 Queen Mary Festival Grounds Long Beach Outdoor Venue 15,000 62 Dorothy Chandler Pavilion* Los Angeles Performing Arts Center 3,156 38 Pauley Pavilion Los Angeles Arena 13,800 31 Terrace Theatre Long Beach Theatre/Auditorium 3,051 60 Long Beach Arena Long Beach Arena 13,500 62 Pasadena Civic Auditorium Pasadena Theatre/Auditorium 2,997 40 Toyota Arena Ontario Arena 12,000 78 Pantages Theatre Los Angeles Theatre/Auditorium 2,720 32 Galen Center Los Angeles Arena 10,500 41 The Novo Los Angeles Performing Arts Center 2,356 39 Santa Monica Pier Santa Monica Outdoor Venue 10,000 37 Walt Disney Concert Hall* Los Angeles Performing Arts Center 2,252 38 Palmdale Amphitheatre Palmdale Amphitheatre 10,000 60 Ahmanson Theatre* Los Angeles Performing Arts Center 2,109 38 Pacific Amphitheatre Costa Mesa Amphitheatre 8,200 76 Bank of America Performing Arts Center Thousand Oaks Performing Arts Center 1,800 9 Anaheim Convention Center ArenaAnaheim Convention Cente 7,500 65 Fr ed Kavli Theater Thousand Oaks Theatre/Auditorium 1,800 9 The Canyon Agooura Hills Agoura Hills Club 1,270 9
Note: Outdoor venues include fairgrounds, festival grounds, large parks, community plazas, etc. *Located within the Los Angeles Music Center
Sources: Pollstar, Relevant Facilities, Johnson Consulting Regional Performing Arts Venues
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Stakeholder Engagement
The engagement of potential local and regional users of a new venue in Simi Valley was emphasized as a priority of this study from the outset. As with any project of this importance, it is crucial to engage with a wide variety of individuals and organizations throughout the industry to foster a sense of buy-in and inform the study’s observations, conclusions, and recommendations.
Johnson Consulting’s outreach strategy involved conducting supplemental, targeted focus groups and interviews with key stakeholders in the proposed project, potential project partners, and local, regional, and national industry experts in the realm of event and entertainment promotion.
These focus groups and interviews began with virtual sessions in April 2024 and continued throughout the remainder of the study. Johnson Consulting conducted over 30 interviews and focus groups with individuals representing a variety different organizations, including local arts organizations, regional leaders in hospitality, local leadership, and area venues. Specifically, we met with City of Simi Valley staff and councilmembers, the Cultural Arts Center staff, Ventura County staff, a representative from the Ronald Reagan Presidential Library, the Actor’s Repertory Theatre of Simi Valley, the Rancho Simi Recreation and Parks District, the Simi Valley Chamber of Commerce, the Simi Valley Planning Commission, the Simi Valley Cultural Arts Center Foundation, Arts Commissioners, Thousand Oaks Cultural Affairs, Rotary Club of Simi Valley, Moorpark College, and private venue operators and promoters.
These engagements he lped us to understand the local performing arts industry’s trajectory, the needs of its stakeholders, and whether the proposed venue would help meet those needs. They also provided important context on the local entertainment landscape, competitive facilities, and the market opportunities that exist for the proposed venue. The diagram to the right outlines the scope of the stakeholder engagement effort.
Community Engagement
Key
Stakeholders
Potential
Partners
Industry
Experts
Local
Organizations Promoters Local Venues
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Stakeholder Engagement
The following key takeaways reflect the recurring themes and observations from the stakeholder interviews held throughout the study process and do not necessarily reflect the opinions of Johnson Consulting.
The Simi
Valley
market…
is in need of a permanent community gathering space.
could benefit from more arts and entertainment facilities. is undersupplied in quality hotel rooms and attractions such as dining, retail, and entertainment options. has a number of local arts organizations that would likely utilize the proposed amphitheater. loses resident and visitor dollars to adjacent markets due to a lack of arts and entertainment programming and facilities.
A new
amphitheater
in the Simi
Valley Civic
Center…
has strong support and interest from local arts organizations. needs to be oriented and sized to align with the programming and audiences it aims to attract. will be most successful if local and regional entities coordinate and collaborate. could have a significant role for private sponsors in development and ongoing operations. could serve as a needed community venue for concerts, live performances, lectures, graduations, community festivals, and other events. should be carefully assessed and consider factors such as competition, construction and maintenance costs and potential revenue streams. “
”
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Implications
Simi Valley exhibits economic and demographic trends that are ideal in many regards in terms of evaluating the potential for the community’s ability to support an outdoor event venue such as an amphitheater at the Civic Center. There is a large population base to draw from outside of Simi Valley and the community within Simi Valley is wealthy, well-educated, and diverse. These market attributes lend themselves well to a multitude of programming opportunities. Further, there are a variety of existing local arts initiatives and programming throughout Simi Valley including youth activities, school curriculum, and adult programs, and a new venue would enable local artists to showcase their talent. The resident population is aging, but a quality of life amenity such as the one being evaluated in this study, would not only serve the existing population base but will also attract new residents and visitors to the area, as well as businesses. The regional facility analysis reveals that there is a large market that is competitive with venues and Simi Valley is not currently on the radar for touring acts, so it may be a challenge to operate a midsize venue of 5,000-15,000 seats in Simi V alley, as the community would have to pay a premium for talent compared to established destinations. There may be a greater opportunity for a smaller outdoor event venue in the 1,000-3,000-seat range. The existing venues within this range are predominantly closer to downtown Los Angeles and are indoor venues, providing Simi Valley to develop a unique product in the northern Los Angeles metropolitan market.
Area of Opportunity
0 500
1,000
1,500
2,000
2,500
3,000
3,500
Largest Event Space Capacity
Area of
Opportunity
Area of Opportunity (5,000 - 15,000 Seats)
0 2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Largest Event Space Capacity
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Implications
The general sentiment among the stakeholders interviewed by Johnson Consulting was that the Simi Valley market could benefit from an amphitheater at the Simi Valley Civic Center. The addition of the amphitheater would provide the community with a large public gathering place that is currently absent from the market. This development could provide a venue for local arts organizations to host their own programming as well as introduce new arts and entertainment programming to the community. Further, depending on the size, orientation, and operating model of the amphitheater, there is potential to attract events that residents would otherwise leave the market to attend. The project can serve to enhance the overall arts and culture scene in Simi Valley and may act as an economic catalyst to meet other market needs, such as more high-quality hotel, dining, and retail options.
However, som e describe the project as a “want” and not a “need” for the city and its residents. Simi Valley is a bedroom community, and residents appreciate the quiet, family-friendly atmosphere that Simi Valley provides and do not mind leaving Simi Valley to enjoy arts and entertainment attractions and believe other communities sufficiently serve the needs of Simi Valley residents. Further, the community should consider other developments in process that may influence this project. For example, Moorpark College, located just a few miles northwest of Simi Valley, is in the planning and design phase of their own 4,000-seat amphitheater. Their plan is further along in the development stage and the campus is a more natural location for an amphitheater given the utilization for school curriculum and the location.
Promoters that were interviewed agreed that there may not be enough talent to share among this competitive set of venues. The City of Thousand Oaks is also proposing a 4, 000-seat amphitheater for their Civic Arts Plaza. Area promoters and managers also acknowledged that Simi Valley may be better suited for local programming as it will be challenging to create a regional or national destination that is no t already there. They also noted that Simi Valley will likely have to pay a premium to attract high caliber acts compared to destinations already on the map for touring artists. On the other hand, Simi Valley needs to consider the recruitment and retention of new residents and businesses and quality of life amenities, such as an amphitheater, will help attract new visitors and limit the dollars leaking out of the Simi Valley market. Further, the addition of an amphitheater will add to the cultural assets already attracting tourists to Simi Valley, such as the Ronald Reagan Presidential Library and the Skateboarding Hall of Fame, which will help Simi Valley distinguish itself as a tourism destination. Communities that allow themselves to stagnate tend to find themselves in a state of decline, and while many socioeconomic factors are beyond local control, this is a rare opportunity to make an international investment in future community prosperity.
Overall, the s entiment behind an amphitheater in the Simi Valley Civic Center is agnostic; most citizens and institutions within Simi Valley think that the development would provide a lot of value for the city and would be an added asset to the community. However, there is a perception that the success of the venue will hinge on effective organizational collaboration and financial viability. This will require a strategic plan and investment by the community to effectively accommodate the envisioned programming at the venue while also benefitting from the generated economic and fiscal impacts from the development.
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3. Industry Trends
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Overview
This section provides insight into Simi Valley market trends as they relate to the proposed project, including the role it could play in terms of hosting live entertainment, festivals, community events, and showcasing local talent through arts and entertainment programming. Community events and festivals are a key ingredient in providing things to do and fostering a sense of community and belonging, and in turn developing a sense of place and establishing Simi Valley as a destination. This type of programming also plays a crucial role in activating public park space, such as the Simi Valley Civic Center. Simi Valley has a number of annual signature events as well as sporting events that utilize the parks. Beyond the annually repeating events, there is an opportunity to develop additional events and activities throughout the year.
Entertainment venues have long been at the forefront of live entertainment. While larger shows may take place in stadiums or arenas, there are myriad events that thrive in a range of other smaller and purpose-built venues. Some of these events may include: multi-day music festivals, comedy shows, events like TED Talks, concerts, musical plays, dance productions, art and culinary events, and visual arts productions, among many others. Many people consider some combination of these entertainment offerings to be valuable to their community, and more importantly their overall quality of life. As an industry that supports millions of jobs and generates over $150 billion of economic activity annually, it is easy to see why so many people support participation and funding for the arts.
While many u nderstand the basics of performances such as comedy shows or concerts, theatrical, recitals, and dance productions, they prove to be more nuanced when it comes to the technical side of production and technical requirements. To help frame the different types of requirements, this section provides an overview of technical and operating trends for the performing arts and live entertainment industry.
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Community Events & Festivals
The 2024 Simi Valley Event Calendar reflects most of the main events that take place in Simi Valley throughout the year including sports tournaments, holiday events, art and cultural festivals, movies and concerts in the park, and fundraisers. Some annually recurring events are on hiatus due to space or other limitations. Further, there are community events, such as farmer’s markets, that have been relegated to parking lots due to space constraints. Existing venues in the community, detailed in the Market Analysis, creating a home for these types of community events will not only provide the opportunity to add events to the calendar, but also aid in creating a sense of place and community at the Simi Valley Civic Center.
The City of Simi Valley features several arts and cultural attractions including the Simi Valley Cultural Arts Center. The facility hosts between 300 and 400 events annually with a total average annual attendance of about 30,000. According to Placer.ai, the majority of visitors to the center are coming from Simi Valley. Despite this facility being highly utilized by the community, there is opportunity to create more of a regional draw. The Repertory Theatre also offers a vibrant after school arts programming, summer camps, evening classes, youth productions, and other arts and educational programs that are open to the community. Finally, while the Chamber of Commerce is primarily focused on business recruitment and retention, they do play a part in a number of special events for Simi Valley and there is an interest in curating additional event space for the community, and a quality of life amenity would aid in business development. With that said, there is a robust calendar of arts programming already happening in Simi Valley, but there may be a disconnect between organizations, venues, and marketing to the greater public.
Simi Valley Event Calendar
S M T W T F S S M T W T F S S M T W T F S S M T W T F S 1 2 3 4 5 6 1 2 3 1 2 1 2 3 4 5 6
7 8 9 10 11 12 13 4 5 6 7 8 9 10 3 4 5 6 7 8 9 7 8 9 10 11 12 13 14 15 16 17 18 19 20 11 12 13 14 15 16 17 10 11 12 13 14 15 16 14 15 16 17 18 19 20 21 22 23 24 25 26 27 18 19 20 21 22 23 24 17 18 19 20 21 22 23 21 22 23 24 25 26 27 28 29 30 31 25 26 27 28 29 24 25 26 27 28 29 30 28 29 30 31 S M T W T F S S M T W T F S S M T W T F S S M T W T F S 1 2 3 4 1 1 2 3 4 5 6 1 2 3
5 6 7 8 9 10 11 2 3 4 5 6 7 8 7 8 9 10 11 12 13 4 5 6 7 8 9 10 12 13 14 15 16 17 18 9 10 11 12 13 14 15 14 15 16 17 18 19 20 11 12 13 14 15 16 17 19 20 21 22 23 24 25 16 17 18 19 20 21 22 21 22 23 24 25 26 27 18 19 20 21 22 23 24 26 27 28 29 30 31 23 24 25 26 27 28 29 28 29 30 31 25 26 27 28 29 30 31 30 S M T W T F S S M T W T F S S M T W T F S S M T W T F S 1 2 3 4 5 6 7 1 2 3 4 5 1 2 1 2 3 4 5 6 7
8 9 10 11 12 13 14 6 7 8 9 10 11 12 3 4 5 6 7 8 9 8 9 10 11 12 13 14 15 16 17 18 19 20 21 13 14 15 16 17 18 19 10 11 12 13 14 15 16 15 16 17 18 19 20 21 22 23 24 25 26 27 28 20 21 22 23 24 25 26 17 18 19 20 21 22 23 22 23 24 25 26 27 28 29 30 27 28 29 30 31 24 25 26 27 28 29 30 29 30 31
April
2024
September October November December
May June July August
January February March
Sporting Event Concert in the Park
Festival/Com
munity Event Movie in the Park Two or More Events
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Americans for the Arts
Every five years, Americans for the Arts releases a research study named Arts and Economic Prosperity, which details the economic impact of nonprofit arts and cultural organizations and their audiences. Currently, the research publication is on its sixth edition and highlights data primarily from 2022. The study includes data about spending, jobs, revenue, and household income among others, as well as survey results relating to the overall importance of arts and attendance trends. These findings include a wide array of event types ranging from jazz and outdoor entertainment festivals to non-musical plays and ballet.
In 2022, nonprofit arts and cultural organizations and their audiences accounted for a total of $151.7 billion in economic activity.
This figure can be broken down further into two parts – spending by the organizations ($73.3 billion) and event-related spending by the audiences ($78.4 billion). As a multibillion-dollar industry, one can imagine the financial impact these nonprofit organizations have on government revenue as well. While audience spending generated $10.8 billion in government revenue, the organizations added another $18.3 billion for a total of $29.1 billion. Compared to the initial budgets most municipalities provide for nonprofit arts and cultural groups, it makes for a substantial return on investment. The graphic to the right highlights these statistics.
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Americans for the Arts
In addition to spending and government revenue, the arts are essential in generating the resources that help a community thrive – jobs and income. 2.6 million total full-time equivalent jobs were supported through these nonprofit organizations, with the organizations accounting for roughly 1.6 million of them. Furthermore, $101 billion in resident household income was created, with roughly two thirds of that figure coming from organizations, and the audiences responsible for the rest.
One big aspect of nonprofit arts and cultural events is tourism, and the ability of an event to draw attendees locally and from other counties. The reason it is so important to attract visitors from out of town is their propensity to spend more money – and thus generate more revenue for local economy. While the average attendee spends $38.46 per person per event (not including cost of admission), this number is weighted because on average only 30.1 percent of attendees are nonlocal. While local attendance may outnumber that of nonlocals, the opposite is true when it comes to average spending. Local attendees only spend $ 29.77 per person per event, compared to $60.57 for nonlocal attendees. This means that on average, individuals attending from out of town spend more than twice as much as those attending their local event. This surely creates an enormous increase in revenue and economic activity. Of the nonlocal attendees, 13.8 percent reported utilizing overnight lodging – another big economic generator for a community. The graphic to the right highlights these statistics.
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Live Nation and the Talent Industry
There has been a tremendous consolidation in the entertainment venues field, starting in 2005.
Live Nation Entertainment Inc. (Live Nation), one of the world’s leading live entertainment and e- commerce companies, controls bookings for approximately 70 percent of the talent available and owns or controls over 370 venues around the country. They promoted 40,256 entertainment events, and generated $ 11.5 billion in revenue in 2019, pre-pandemic. In 2023, they promoted over 50,000 events and generated $22.7 billion in revenue in 2023. Between 2022 and 2023, Live Nation reported that concert revenue increased 39 percent, ticketing revenue increased by 22 percent, and sponsorship and advertising revenue increased by 35 percent.
This widespread control by Live Nation along with the demand by the gaming industry has led to higher guarantees to the acts, which impacts the cash flow available for operation of venues. This has made it more difficult for the smaller, more regional promoters to succeed in large venues.
These factors combined with the reality that there are few artists who are able to draw enough concert goers to fill large facilities (over 10,000 seats) make independent booking of large arenas and amphitheaters harder to compete and succeed at.
The downside of t his strong performance is that talent prices are at an all-time high. Gaming venues have also been a big factor in talent price increases – they can afford the show, and they know that as long as they can get the attendance, the money will be made elsewhere. The adage that the acts get a majority of the ticket revenue, and the venues are really in the rent, concession and parking business could not be more accurate – especially for casinos, where gambling produces sizable profits.
Sour ce: Johnson Consul t i ng, Li ve N at i on
(2,000,000)
(1,500,000)
(1,000,000)
(500,000)
-
500,000
1,000,000
1,500,000
2018 2019 2020 2021 2022 2023
Live Nation Metrics
Operating Income (Loss) Estimated Events
Estimated Fans Estimated Tickets Sold
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Live Nation and the Talent Industry
A more recent look at Live Nation’s financial state comes in its 2023 Q4 report. According to that report, Live Nation surpassed 2022 breaking records with reported revenue up 46 percent and reported operating income up 228 percent over pre-pandemic levels in Q3 of 2019 – a testament to the strength of the live entertainment industry. They observed double-digit growth in concert fans, Ticketmaster ticket sales, and sponsorship revenues globally. Overall revenue increased by $6.1 billion, or 36%, to $22.7 billion as compared to last year. This, coupled with current ticket sales for 2024, suggests ongoing strong demand for concerts and live events.
Smaller venues of 500 to 5,000 seats are an important component of the entertainment industry. As Live Nation has gained dominance in the thinner market of large venues, the regional or smaller promoter has changed format. In order to adapt and survive, many of the local promoters are turning to smaller venues (500 to 5,000 seats) as baby boomers, Generation X, active adults and other attendee categories are finding entertainment events and facilities more enjoyable at this scale. Many of these promoters, both for profit and not for profit, are returning to subscription-based pricing strategies such as buy one get one free, or a mega ticket that can include parking costs along with access to a multi-day event, all for one price.
Many facilities are municipally operated and are provided as a service to residents, as well as a way to attract out of town visitors. Universities and the private sector also build facilities. While many shows at the larger venues can do well, the number of acts available for these large venues limits the product. The number of small venues and acts is on the rise and the product diversification and more intimate atmosphere in a smaller venue have helped this sector of the live entertainment business grow.
AEG Presents is also a powerhouse in the industry, and it owns, operates, or is affiliated with over 350 venues worldwide, including 15 of the top 20 arenas. In the last year, AEG entertained over 160 million guests, promoted over 10,000 shows, hosted over 22,000 live events, more than 25 festivals, and accounts for 50% of tickets sold in arenas worldwide.
District Live in Savannah, GA – a Live Nation Venue
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Venue Management Consolidation
Two years ago, OVG, co- owned by the former CEO of AEG, acquired Spectra, a provider of facility management, food service and marketing services. The transaction vaulted OVG into position as the second-biggest firm in that space behind ASM Global. VenuesNow published an article in July 2023 describing rumored discussions of Legends acquiring ASM Global, a deal that potentially would propel Legends across all facets of facility development and operations but will result in fewer options for operating sports and entertainment venues. ASM Global is a private management firm. AEG previously owned 50% of ASM Global after it merged with the old SMG to form a standalone company in 2019.
ASM Global ran about 350 arenas, stadiums and convention centers worldwide, including a dozen NFL and NBA venues. The merger would effectively add facility operations as the final piece of Legends’ 360-degree business model and further shrink the industry through consolidation. In Q4 of 2023, Legends acquired ASM Global in a $2.4 billion deal. Legends is majority-owned by Sixth Street. With the completion of the ASM Global transaction, Legends will become the industry’s biggest third-party facility manager, forging a strong connection to its existing lines of business in feasibility studies and market research; owner’s representation/project management; food service and merchandise; and premium seat and sponsorship sales, including naming rights consultation.
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Venue Management Consolidation
AEG SMG Oakview Group Spectra Venuworks
Certain Hotel
Management
Companies
Venue Management
Live Nation
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43 Venue Types
40 Festival Grounds: Large outdoor spaces that often host multi-day music and arts festivals. Some festival grounds have permanent infrastructure, and some require stages, restrooms, concessions, etc. to be set up and broken down for each event.
Amphitheaters: Round or oval-shaped venues with tiered seating in front of a central stage. Amphitheaters are typically outside and are among the oldest types of performing arts venues.
Bandshells and Bandstands: Large, outdoor stages that are often found in public parks. Bandshells and Bandstands typically feature covered roofs and closed backs and often have permanent, non-elevated seating.
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Proscenium Theater:
The most typical type of
stage in theatrical
productions – features a
rectangular stage opening
made from the proscenium
arch and the stage floor.
The proscenium arch
separates the actors from
the audience and is
commonly called “the fourth
wall.”
Area Stage Theater:
Commonly referred to as a
Theater in the Round, this
is the type of stage one
would find at certain
concerts and theatrical
productions. It can also be
used in conjunction with a
proscenium, as is seen at
the Grammys or the
Oscars. It places the stage
at the center of a square or
circle, surrounded by
spectators on all sides. It is
generally thought of as less
formal than types like the
proscenium theater.
Open Stage Theater /
Thrust Stage:
This theater type combines
features from arena stage
and the proscenium
theater. It often has seating
on three sides or in a
semicircle with the stage
“thrusting” out into the
middle. Usually, the stage
is low platform and has a
proscenium opening at the
back for entry/exit and
scene changes. It can also
be referred to as a Thrust
Stage Theater.
Black Box:
A rectangular room,
painted flat black to prevent
glare from overhead
lighting. It usually has a
complex overhead lighting
grid and moveable seats.
While total number of seats
is usually around 200, their
moveable nature allows for
experimentation with the
shape and size of the
performance space.
Found Space Theater:
Structures that were
originally designed for a
different function, but were
repurposed into theaters.
There are examples of
companies converting
many different types of
buildings into theaters, like
urban store fronts and even
“Big Box” retail spaces, etc.
Stage Types
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Other Important Entertainment Venue Terms
Fly / Fly Loft – The system of lines, pulleys, and counterweights / electrical hoists located above the stage that is responsible for dropping in scenery and lifting it back up. It is generally the most challenging and expensive part of the stage to consider. The fly loft, which is the structural tower that accommodates the fly system, should be at least 2.5 times the height of the proscenium to allow a full-length curtain to be raised completely out of audience view without exceeding the travel distance of standard counterweights.
Green Room – The waiting room for those involved in the show before they go on stage. If there is a high-profile individual, they will usually get their own room. Bigger groups will also get a green room, but it will be separate from that of the high-profile individual. Sometimes very large performance groups will stage out of a large rehearsal room.
House – The area where the audience sits, which is basically the front of the stage and beyond. The term is also used to describe the audience in general.
Orchestra Pit – A sunken area directly in front of the stage created for an orchestra in musicals or operas. It is not meant to be seen by the audience.
Rake – The ang le of the stage floor so that it is not horizontal. A traditional raked stage has an upstage area that is raised higher than the downstage area.
Set – The physical scenery used to describe the setting of a particular point in a play. These items will generally be dropped from and lifted back to the fly loft.
Scene Shop – An area backstage where scenes and sets are built.
Trap – An area below the stage where individuals can be raised on and off the stage from underneath.
Wings – The offstage area to the right and left where people get ready to come on and off the stage. This area will have to be bigger if a fly loft is not installed.
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VIP Entertainment Venue Experiences
In recent years, more and more entertainment venues have been offering VIP (very important person) spaces and experiences in addition to typical seating options. These experiences can take many forms, with some common ones being dedicated VIP seating or standing sections (often with more comfortable seats), amenities such as higher-quality food and beverage options, dedicated restrooms and lounges, and backstage access where VIPs get to spend time before or after the show and even, in some cases, meet the entertainer or artist. VIP experiences provide venues the opportunity to sell premium tickets, often at multiple times the price of normal tickets, and serve customers who are interested in paying more for better experiences. They also provide sponsorship and partnership opportunities between venues and premium brands.
Similarly, artist green rooms and dressing rooms have become much nicer and often have a meet and greet area for VIPs.
VIP area at the Delaware State Fair
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Top Venues
The table on the top right shows the top Arena venues by 2023 ticket sales and the table on the bottom shows the top Stadium venues by 2023 ticket sales. These rankings are based on data from Pollstar, a trusted source for entertainment statistics, and includes ticket sales from January 1, 2023 – December 12, 2023.
Top Arena Venues by Ticket Sales (2023)
Rank Venue Location Tickets Sold Capacity
1 Madison Square Garden New York, NY 1,985,832 20,789
2 Movistar Arena Santiago, Chile 1,451,096 14,000
3 The O2 - London London, United Kingdom 1,264,882 21,000 4 WiZink Center Madrid, Spain 1,191,860 17,453
5 Accor Arena Paris, France 1,134,237 20,300
6 Kia Forum Inglewood, CA 1,100,855 17,500
7 Dickies Arena Fort Worth, TX 1,015,253 17,500
8 The OVO Hydro Glasgow, United Kingdom 1,012,333 14,300 9 Lanxess Arena Cologne, Germany 1,004,777 20,000
10 3Arena Dublin, Ireland 975,640 22,000
Source: Pollstar, Johnson Consulting
Includes ticket sales from January 1st, 2023 - December 11th, 2023 Non-U.S. venues in gray
Top Stadium Venues by Ticket Sales (2023)
Rank Venue Location Tickets Sold Capacity
1 Foro Sol Mexico City, Mexico 2,204,505 65,000
2 SoFi Stadium Inglewood, CA 1,019,697 70,000
3 Autódromo Hermanos Rodríguez Mexico City, Mexico 918,929 110,000 4 Nissan Stadium Nashville, TN 865,234 69,143
5 Allegiant stadium Las Vegas, NV 792,399 65,000
6 Stadio San Siro Milan, Italy 766,523 75,817
7 Metlife Stadium East Rutherford, NJ 641,421 82,500
8 Johan Cruijff Arena Amsterdam, Netherla 573,350 55,865 9 Stadio Olimpico Rome, Italy 537,737 72,698
10 BMO Stadium Los Angeles, CA 490,810 22,000
Source: Pollstar, Johnson Consulting
Includes ticket sales from January 1st, 2023 - December 11th, 2023 Non-U.S. venues in gray
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Top Venues
The table on the top right shows the top Amphitheater venues by 2023 ticket sales, while the table on the bottom right shows the top Auditorium/Theatre venues by 2023 ticket sales. These rankings are based on data from Pollstar, a trusted source for entertainment statistics, and includes ticket sales from January 1, 2023 – December 12, 2023. While both of these rankings include venues from around the world, the United States is well- represented. 8 of the top 10 venues by ticket sales in both venue categories are in the United States.
Top Amphitheater Venues by Ticket Sales (2023)
Rank Venue Location Tickets Sold Capacity
1 Ruoff Music Center Noblesville, IN 618,457 24,000
2 Pine Knob Music Theatre Clarkson, MI 549,308 15,040
3 The Cynthia Woods Mitchell Pavilion The Woodlands, TX 457,324 16,015 4 Merriweather Post Pavilion Columbia, MD 403,544 19,316 5 Budweiser Stage Toronto, Canada 390,974 16,000
6 PNC Music Pavilion Charlotte, NC 360,420 19,500
7 Waldbühne Berlin Berlin, Germany 353,017 22,290
8 The Pavilion at Star Lake Burgettstown, PA 342,681 23,000 9 Red Rocks Amphitheatre Morrison, CO 339,350 9,525
10 Credit Union 1 Amphitheater Tinley Park, IL 302,620 28,000 Source: Pollstar, Johnson Consulting
Includes ticket sales from January 1st, 2023 - December 11th, 2023 Non-U.S. venues in gray
Top Auditorium/Theatre Venues by Ticket Sales (2023)
Rank Venue Location Ti ckets Sold Capacity
1 Auditorio Nacional Mexico City, Mexico 1,275, 623 10,000 2 Radio City Music Hall New York, NY 1,252,096 5,960
3 Auditorio Telmex Zapopan Mexico 684,120 11,500
4 Hard Rock Live at Seminole Hard Rock Hotel & Casino Hollywood, FL 654,103 7,000 5 DPAC Durham, NC 615,107 2,712
6 Fox Theatre Atlanta, GA 589,626 4,665
7 Paramount Theatre Seattle, WA 470,455 2,872
8 Dolby Live at Park MGM Las Vegas Las Vegas, NV 454,251 6,400 9 The Anthem Washington, DC 422,770 6,000
10 Beacon Theatre New York, NY 412,952 2,894
Source: Pollstar, Johnson Consulting
Includes ticket sales from January 1st, 2023 - December 11th, 2023 Non-U.S. venues in gray
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Survey of Public Participation in the Arts
Every 5 years the National Endowment for the Arts (NEA) administers its Survey of Public Participation in the Arts (SPPA). The information gained from this survey is some of the most accurate in identifying common characteristics among avid patrons of the arts and what type of events are most popular. If the report is properly used, a community can correctly determine what percentage of residents are active participants or supporters of entertainment events.
The report noted that while overall attendance slightly decreased, likely due to the COVID-19 pandemic, 52 percent of all adults created and/or performed art in the 2022 survey period. While most categories showed an overall negative rate of change for participation in 2022, attendance rose for performing arts activities not specifically listed in the survey, a
6.2 percent increase from 2017. The most popular art activity listed in the survey for 2022 was movies, with attending an arts destination and outdoor festivals following closely behind. Attendance trends by type of event can be seen in chart on the right.
Source: NEA, Johnson Consulting
Percent of U.S. Adults Who Attended Specific Arts Activities (2017 and 2022) 0% 10% 20% 30% 40% 50% 60% 70%
Opera
Ballet
Other Dance
Latin, Spanish, or Salsa Music
Non-Musical Stage Play
Classical Music Performance
Jazz
Musical Stage Play
Crafts/Visual Arts Fair
Art Museum/Gallery
Outdoor Performing Arts Festival
Other Performing Arts
Art Destination Visit (Park, Monument, etc.)
Movies
2022 2017
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The Future of Meetings and Events
The pandemic hasn’t just impacted the events industry’s bottom line: It has altered the criteria by which a successful event is judged. In its June, 2023 Meeting Room of the Future Barometer report, the International Association of Conference Centers surveyed more than 250 event planners from venues around the world. When asked how the criteria for meetings space has changed since the COVID-19 pandemic, respondents highlighted the five following categories:
More Space
Due to the pandemic, people
are used to having more
space, making larger event
venues more popular.
Outdoors
Outdoor spaces have also
become more in demand
since the pandemic, with
attendees increasingly
wanting a more airy, natural
setting
Flexible
Flexibility not only enables
greater social distancing, it
helps event planners cater to
attendees’ desire to have
less rigid events with more
breakout sessions
Hybrid
Hybrid work, socialization,
and events are a legacy of
the pandemic that appears to
be here to stay. As such, it is
important to consider how a
venue will perform in a hybrid
setting.
Evolved Technology
Beyond just hybrid events,
the pandemic accelerated
adoption of new technology
and, as a result, attendees
now expect more advanced,
high-tech events to be the
norm.
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The Future of Meetings and Events
In August 2023, the JCA Arts Marketing
published a report on Trends in Audience
Behavior. For the purposes of these findings,
pre-pandemic refers to data prior to March
13th, 2020, and post-pandemic is referring to
data after July 2021. The key takeaways of
that report are highlighted at right.
Across all genres, ticket sales and ticket income have increased since the reopening season. Theatres were nearly as full as they were pre-pandemic in December 2022.
Decrease in ticket sales post-pandemic is not due to pricing, but subscriber ticket sales are down with standard tickets making up the bulk of ticket tales.
Growing new audiences will be imperative to increase audience members and replace non-renewing subscribers and create new returning audiences in the future.
The timing of when people buy tickets has not changed since the pandemic, but single ticket sales earlier in the runs of productions should be encouraged due to decreasing subscribers.
A focus on overall experience that is welcoming and encourages return visits.
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Implications
In the case of a new performance and event venue such as the one proposed for Simi Valley, it is important to pick the right facility type for the market and programming strategy. Festival grounds, amphitheaters, and bandshells have lower associated capital cost and can take advantage of a growing desire for outdoor event space but are limited by seasonality and weather considerations. Indoor concert halls, opera houses, and theatres are ideal for certain types of programming but provide less flexibility than an arena or multipurpose-type building. As the business plan for the Simi Valley project crystalizes, the optimal facility orientation will become clear.
If built, the contemplated facility would be emerging into a competitive performing arts and events market. The silver lining for the proposed venue, however, is that it would be well-positioned to meet many of the expectations of the local events and performing arts landscape, which Simi Valley has historically struggled to do. The performing arts and events industries still present a strong case from an economic, fiscal, and community impact perspective, but the size and orientation of the facility will influence these impacts.
Libby Bowl - Ojai, CA
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5. Comparable Facilities Analysis
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Introduction
In order to better inform our study of the feasibility of an amphitheater in the Simi Valley Civic Center and have a clearer understanding of the potential operating characteristics for the project, Johnson Consulting conducted a case study of facilities similar to what is envisioned for this project. This research aided our understanding of the demand potential of such a facility as well as potential programming layers to explore. The facilities studied are highlighted below:
Levitt Pavilion Dayton
Dayton, OH
Capacity: 5,000
FTEs: 4
Foundation Members: 19
Levitt at the Falls
Sioux Falls, SD
Capacity: 5,000
FTEs: 5
Foundation Members: 20
The Ville Amphitheater
Fayetteville, GA
Capacity: 1,500
Downtown Development
Authority: 7
Main Street Tourism
Association Members: 6
Bruns Memorial
Amphitheatre
Contra Costa County, CA
Capacity: 545
FTEs: 7
Foundation Members: 9
Moreno Valley Civic
Center Amphitheatre
Moreno Valley, CA
Capacity: 600
Owned & operated by City
staff
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Market Overview
The case study profiles include market statistics for
the ½- mile, 1- mile, and 50-mile radii to represent
the local and regional markets being served by
each venue. Market characteristics are a key
decision-making factor in choosing case study
venues, as they can play a large role in determining
the venue’s ability to attract talent and generate
economic impacts. This information profiled in the
table below as well as in detailed writeups on the
following pages.
Simi Valley
Civic Center
Levitt Pavilion
Dayton
Levitt at the
Falls
The Ville
Amphitheater
Bruns Memorial
Amphitheater
Moreno Valley
Civic Center
Amphitheater
Market Overview
Location Simi Valley, CA Dayton, OH Sioux Falls, SD Fayetteville, GA Orinda, CA Moreno Valley, CA Within 1/2 Mile
Population 3,708 1,362 550 749 0 1 ,445
Median Age 44 44 35 45 0 23
Bachelor's Degree or Higher Education 45% 44% 29% 32% 0% 3% Median Household Income $128,296 $50,470 $76,533 $53,554 $0 $33,339 Arts, Entertainment, & Recreation Spending Index* $148 53 97 68 0 40 Accommodation & Food Service Spending Index* 148 55 99 69 0 42 Retail SF (millions) 0.5 1.2 0.6 0.4 0.0 0.3
Hotel Rooms 0 518 587 140 0 0
Within 1 Mile
Population 16,391 5,213 3,298 1,105 0 5,825
Median Age 44 45 37 46 0 26
Bachelor's Degree or Higher Education 38% 47% 28% 36% 0% 12% Median Household Income $127,663 $49,194 $55,351 $60,328 $0 $52,405 Arts, Entertainment, & Recreation Spending Index* $147 $58 $76 $82 $0 $58 Accommodation & Food Service Spending Index* 146 60 78 84 0 60 Retail SF (millions) 0.8 2.1 1.1 1.1 0.0 0.53
Hotel Rooms 0 616 587 140 0 60
Within 50 miles
Population 10,247,330 2,564,549 356,465 4,915,318 6,877,320 7,455,439 Median Age 39 40 38 37 39 35
Bachelor's Degree or Higher Education 38% 34% 36% 43% 53% 32% Median Household Income $89,260 $68,722 $77,083 $77,595 $122,984 $89,969 Arts, Entertainment, & Recreation Spending Index* 114 91 95 105 172 117 Accommodation & Food Service Spending Index* 114 93 99 105 164 113 Retail SF (millions) 482.0 200.1 18.5 339.1 352.9 433.6 Hotel Rooms 120,147 39,535 6,731 111,930 128,304 120,292 * National Average = 100
Source: Relevant Facilities, CoStar, Esri BAO, Johnson Consulting Simi Valley Case Studies - Market Attributes
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Facility Overview
In addition to profiling each comparable
facility’s location, each venue’s space
capabilities, programming, and financial
performance have been profiled. The table
below lists different attributes that gauge the
type and scale of events that each facility is
capable of hosting and how they are currently
utilizing that capability. Additionally, the
financial information highlights each facility’s
ability to capitalize off their level of
programming and how much they rely on
public subsidies or grants to operate. This
information profiled in the table below as well
as in detailed writeups on the following pages.
Levitt Pavilion
Dayton Levitt at the Falls The Ville
Amphitheater
Bruns Memorial
Amphitheater
Moreno Valley
Civic Center
Amphitheater
Facility Overview
Ownership Fayetteville Downtown
Development Authority
East Bay Municipal
Utility District
Management & Operation Mainstreet Tourism
Association Cal Shakes
Development
Year Built (Renovated) 2018 2019 2002 (2023) 1991 (2009) 2021 Construction Cost $6M $4.6M na na $4.9M
Current-Day Construction Cost (2024) $7.5M $5.6M na na $5.8M Venues (Capacity)
Primary Venue 5,000 5,000 1,500 545 600
DEMA ND
# of Events 44 50 9 4 8
# of Event Days 64 60 9 30 8
Total Attendance 72,459 106,228 8,000 na na
Anchor Tenants Levitt Foundation Levitt Foundation Cal Shakes MoVal Presents
FINANCIALS
Operating Revenue $66,753 $126,716 $1,430,805 $1,385,513 $0 Operating Expenses $908,074 $1,185,164 $1,152,632 $4,755,194 $83,700 Net Operating Income (Deficit) ($841,321) ($1,058,448) $278,173 ($3,369,681) ($83,700) Grants & Contributions $764,788 $1,173,179 $73,075 $2,059,524 $83,700 Net Income ($76,533) $114,731 $351,248 ($1,310,157) $0
Note: The financial data for The Ville reflects the MSTF budget and includes operation of other facilities in addition to The Ville Note 2: na (not available) notes where information was not publicly available Source: Relevant Facilities, GuideStar, Esri, Johnson Consulting Simi Valley Case Studies - Facility Attributes
Friends of Levitt
Pavilion Dayton
Friends of Levitt at the
Falls City of Moreno Valley
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Levitt Pavilion – Dayton, Ohio
LOCATION: The Levitt Pavilion Dayton is located in Dayton’s downtown, across the street for the Dayton Convention Center, close to Interstate 75. The venue opened in 2018 is located on just under 2 acres of land in the urban core as a revitalization effort of Dave Hall Plaza, an underutilized public space sitting at the southern gateway to downtown. Levitt Pavilion Dayton’s goal is to provide access to the performing arts for all and transform a neglected green space into a thriving meeting ground for the region.
OWNERSHIP/ MANAGEMENT: The Pavilion was developed through a partnership between the City and the Levitt Foundation as part of the city’s effort to reimagine downtown Dayton. The Levitt network is presenting over 650 free concerts in 45 cities across the county in 2024. The Levitt Pavilion Dayton is managed by Levitt Dayton and supported by the nonprofit Friends of Levitt Dayton. The Friends of Levitt Pavilion Dayton consists of 19 members and the venue is run by a staff of 4 full-time employees.
DESIGN: The Pavilion was built in 2018, designed by DLR Group. The architects constructed the Pavilion to account for sun position and shading, acoustics, seating, views, and site access. The Pavilion also doubles as a public park when not in use as a performance venue. The amphitheater features terrace, orchestra, and lawn seating, providing a capacity up to 5,000 guests. The outdoor amphitheater is covered and looks out to the open-lawn seating. There are also two VIP areas on either side of the lawn available for rent at a cost of $750 (small plaza) or $1,500 (large plaza).
Levitt Pavilion Dayton
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Levitt Pavilion – Dayton, Ohio
PROGRAMMING: While the Pavilion does not currently have any anchor tenants, it will host approximately 50 free concerts each season, in a stabilized year, reflecting the philanthropic mission of the Levitt Foundation. The venue presents high-caliber talent with a broad array of genres and cultural programming. In 2023, the Pavilion hosted 44 free concerts, 12 community gatherings, and 8 pop-up concerts. The 44 free concerts attracted nearly 73,000 people. Additionally, Signature Levitt Summer Camp is hosted at the venue for 1 week during the summer for 14–19-year-olds with an interest in the performing arts. The camp is free for all selected participants. The facility provided $8.4M in free programming to the community in 2023. Outside of the free concerts, the venue is available for nonprofit and community use.
FINANCIALS: With support from the City of Dayton, a group of Dayton residents applied to the Mortimer & Mimi Levitt Foundation to become a Levitt Pavilion City in 2016. Our Friends of Levitt Pavilion Dayton Board was established and raised the $5M needed to kickstart construction over two years with contributions from the City of Dayton and other private corporations. The project was constructed and opened in 2018. The Levitt Foundation provided $150,000 annually for operational support for the first 5 years of operations, and the Friends of Levitt Pavilion continue to provide ongoing operating support. The venue is sustained by the community at its core, with 80% of operating revenue supported by corporate sponsors, earned revenue, grants, and other donations.
Free concerts
Community gatherings
8 Pop-up concerts
People in attendance
Unique zip codes represented
Economic impact
Programming gifted to the community
Source: Levitt Pavilion Dayton, Johnson Consulting
128
$1.8M
$8.4M
Levitt Pavilion Dayton 2023 Impact
44 12
95,000
FY 2019 FY 2020 FY 2021 FY 2022
Total Revenue $816,733 $629,659 $817,965 $831,541
Contributions & Grants 787,333 621,673 790,707 764,788 Program Service Revenue 29,400 7,986 - - Investment Income - - - 15,020 Other Revenue - - 27,258 51,733 Total Expenses $918,319 $469,563 $776,448 $908,074
Salaries, Wages, Benefits 220,554 240,936 254,583 296,933 Fundraising 21,601 47,967 46,973
Other Expenses 697,765 207,026 473,898 564,168 Net Operating Income (Deficit) ($101,586) $160,096 $41,517 ($76,533) Source: GuideStar, Johnson Consulting
Friends of Levitt Pavilion Dayton
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59 Levitt at the Falls
Falls Park
56 Levitt at the Falls – Sioux Falls, South Dakota
LOCATION: Levitt at the Falls is located at Falls Park West in Downtown Sioux Falls, near the intersection of Interstates 90 and 29. The venue lends itself to both the natural setting and urban environment that it serves to connect.
OWNERSHIP/ MANAGEMENT: The mission of Levitt at the Falls is to build community through music and the project was established through a three-way partnership between the local Friends of the Levitt at the Falls nonprofit, the national Levitt Foundation, and the City of Sioux Falls. This partnership resulted in the 8 th permanent Levitt venue in the nation. The process began in 2011, the capital campaign began in 2017, and the facility was constructed by spring of 2019. The nonprofit Friends of Levitt at the Falls and consists of 20 board members and are responsible for management and fundraising, supported by a full-time staff of 5 employees.
DESIGN: The venue seats up to 5,000 people and features food trucks and restrooms on-site. Levitt at the Falls has open, raked lawn seating on a first come first serve basis. A Denver-based architect, Sink Combs Dethlefs, designed the amphitheater shell and event grounds in a way to reflect the park the venue is set in.
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Levitt at the Falls – Sioux Falls, South Dakota
PROGRAMMING: Similar to other Levitt Pavilion venues, Levitt at the Falls plans to host 50 free concerts each year, primarily during the May-September season, as part of the Levitt AMP concert sites dedicated to strengthening the social fabric of communities through free, live music in public spaces. Levitt at the Falls partnered with Augustana University to host Levitt Jam Camps for several weeks throughout the summer. The Pavilion is also available to rent for public events. Most Levitt Pavilion venues have a rental rate average of about $3,000.
FINANCIALS: The 2017 capital campaign to construct Levitt at the Falls was successful in raising the funds needed for the $4.6M project. The City of Sioux Falls contributed $2.5M, the National Levitt Foundation contributed $0.5M, the Chamber of Commerce campaign raised $1.06M and the balance of the funds were from private contributions. The nonprofit Friends of Levitt at the Falls is responsible for ongoing operations of the venue and can attribute a significant portion of revenues to contributions and grants, inclusion presenting sponsors, annual donors, and volunteers.
Free concerts
Musicians appeared on stage
10 Community outreach events
People in attendance
Volunteers
Source: Levitt at the Falls, Johnson Consulting
Levitt at the Falls 2022 Impact
50 420
106,228
202
FY 2020 FY 2021 FY 2022
Total Revenue $1,481,186 $621,838 $1,299,895
Contributions & Grants 1,476,441 539,893 1,173,179
Program Service Revenue 757 72,071 117,370 Investment Income 3,939 9,874 9,276
Other Revenue 49 - 70
Total Expenses $378,182 $746,556 $1,185,164
Salaries, Wages, Benefits 237,093 221,407 283,278 Fundraising 21,755
Other Expenses 141,089 503,394 901,886
Net Operating Income (Deficit) $1,103,004 ($124,718) $114,731 Source: GuideStar, Johnson Consulting
Friends of Levitt at the Falls
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61 The Ville Amphitheater
2024 Concert Series
58 The Ville Amphitheater – Fayetteville, Georgia
LOCATION: The Fayetteville Amphitheater, otherwise known as “The Ville,” is nestled in downtown Fayetteville, 15 minutes from the Atlanta Hartsfield International Airport. The venue was previously named Villages Amphitheater and Southern Ground Amphitheater and was changed after the naming rights sponsorship ended.
OWNERSHIP/ MANAGEMENT: The Ville is owned by the Fayetteville Downtown Development Authority and managed by the Mainstreet Tourism Association. The Mainstreet Tourism Fund (MSTF) is a nonprofit 501(c)(6) entity established to operate the amphitheater as well as oversee other tourism events for the city.
DESIGN: The intimate 1, 500-seat amphitheater boasts a state-of-the-art sound system and lighting system with a 50’ stage and tiered seating, as well as ample free parking and easy accessibility. The venue features tiered seating as well as open lawn seating and the range in ticket pricing reflects the premier seating and VIP areas dotted around the venue. The Ville, similar to many of the Levitt Pavilion products, allows guests to bring their own food and drink, as well as offers food trucks and craft beverages for purchase on- site.
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The Ville Amphitheater – Fayetteville, Georgia
PROGRAMMING: The Ville showcases a variety of national acts in the Spring, Summer, and Fall seasons through their summer concert series and other musical events, festivals, and special events.
While programming at this venue is not free, tickets are typically only $25-$85, which is still relatively affordable compared to other ticketed performance venues. According to Pollstar, the average concert ticket price in 2023 was $120. Pollstar also reported that the Ville sells an average of 892 tickets per event with an average gross revenue of $34,61 per event. The Ville has seven concert events planned for the summer of 2024 totaling 9 events for the year. Artists such as Wynona, The Temptations, and Zac Brown Band have headlined at the venue.
FINANCIALS: The City of Fayetteville collects an 8% hotel/motel tax, 3.5% of which is dedicated to the Ville. In 2024, the hotel/motel tax fund totaled $578,000, resulting in $20,203 dedicated to the Fayetteville Amphitheatre. The Downtown Development Authority (DDA) is one of two component units of the City and was organized to develop and promote commerce, industry, and general welfare within the city. 2024 DDA revenues are estimated to be $314,513 and are primarily derived from the rental income from The Ville and the Holiday Dorsey Fife House Museum, but operating expenses are not allocated to the Ville, only to the museum. The Main Street Tourism Association Inc., is the second component unit of the City and was created to market and preserve Fayetteville's downtown district, including The Ville. The MSTF reported revenues of $1,248,871 in 2024. Expenditures are used to operate and maintain the amphitheater, as well as fund other community events such as holiday and other special events that occur within the Main Street district. While the operating budget does not only focus on the Ville, it is the main asset that the Main Street To urism Fund manages.
Public works also contributes by providing site maintenance. According to GuideStar, the MSTF reported $212,519 in event admission fees and $7,600 in rental fees for the Ville in FY 2021. 2019 2020 2021 2022 2023
Concerts at The Ville 5 6 9 8 9
MSTF Rentals 208 210 187 126 15
Mainstreet Events 28 33 37 30 30
Source: City of Fayetteville, Johnson Consulting
Mainstreet Tourism Events
FY 2021 FY 2022 FY 2023 FY 2024*
Total Revenue $524,889 $874,863 $468,622 $314,513
Charges for Services 2,900 - - - Investment Income 1,517 9 11,555 - Contributions & Donations 265 - - - Other Revenue 520,207 874,854 457,067 314,513 Total Expenses $586,503 $637,809 $536,036 $314,513
Salaries, Wages, Benefits 138,673 51,128 49,154 51,811 Contracted Services 24,145 12,401 5,898 26,120 Capital Outlay 118,330 73,515 321,232 73,000 Debt Service 297,876 297,601 3,483 -
Other Expenses 7,479 203,164 156,269 163,582 Net Operating Income (Deficit) ($61,614) $237,054 ($67,414) $0 *Adopted budget
Source: The City of Fayetteville, Johnson Consulting
Downtown Development Authority
FY 2021 FY 2022 FY 2023 FY 2024*
Total Revenue $655,010 $909,680 $1,503,880 $1,248,871
Charges for Services 194,376 199,855 219,590 393,218 Investment Income 7 - - - Contributions & Donations 29,669 72,309 73,075 80,000 Other Revenue 430,958 637,516 1,211,215 775,653
Total Expenses $471,425 $849,410 $1,152,632 $1,248,871
Salaries, Wages, Benefits 151,321 225,405 227,776 239,241 Contracted Services 289,913 555,876 855,471 945,470 Supplies 30,191 68,129 69,385 64,160
Net Operating Income (Deficit) $183,585 $60,270 $351,248 $0 *Adopted budget
Source: The City of Fayetteville, Johnson Consulting
Mainstreet Tourism Fund
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Bruns Memorial Amphitheater – Orinda, California
LOCATION: California Shakespeare Theater (Cal Shakes) is a regional theater in the Bay Area and its primary performance space is the Bruns Memorial Amphitheater, located in Orinda, California. The grounds are located off of State Route 24 in the Orinda Siesta Valley watershed, approximately 15 miles northeast of San Francisco, and are largely surrounded by green space. There is free parking on site or guests can take a free shuttle from the BART Orinda Station.
OWNERSHIP/ MANAGEMENT: The grounds are leased to Cal Shakes by the East Bay Municipal Utility District (EBMUD). A key term of the agreement is that EBMUD seeks to serve the public with a community facility while preserving the watershed with minimal disruption to the pastoral surroundings. According to GuideStar, Cal Shakes had 20 voting members of the governing body, employed 182 people, and had 150 volunteers in 2022.
DESIGN: In 1991, the Berkeley Shakespeare Festival built the 545-seat Bruns Memorial Amphitheater and changed its name to the California Shakespeare Festival. The venue was designed by architect Eugene Angell and features tiered, paved seating and shade walls, with Orinda Hills as the backdrop.
The gr
ounds cover 4.5 acres of EBMUD park land include several groves with different outdoor gathering spaces, tree groves, picnic tables, lighting and accessible paths. There is also a green room for small indoor event and the Bruns Plaza, which is outside of the amphitheater, and the Sharon Simpson Center with permanent restrooms and a café with a bar.
Bruns Memorial
Amphitheater
The North Star Grove
The Talking Grove
Bruns Plaza
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Bruns Memorial Amphitheater – Orinda, California
PROGRAMMING: Cal Shakes was launched in 2003 with the aim of engaging marginalized communities. In addition to Shakespearian theatre, Cal Shakes also presents dance, music, comedy, and other arts and cultural events. Pre-show performances and talks also occur throughout the grounds. Cal Shakes aims to produce 4 theatrical productions annually, but had to close for 2023 to reimagine programming due to rising costs of production, but the venue was still open for outside rentals. Cal Shakes is the most prominent organization that hosts performances at the Bruns Memorial Amphitheater and is planning to reopen for their 50th anniversary season. The Bruns Memorial Amphitheater and grounds are also available for rentals from May through October. “Off Season” rentals (October through April) must be reserved at least 3 months in advance.
Rentals include live performances, weddings, corporate events, and more. For performance events, the venue can provide stage managers, technicians, and house staff.
FINANCIALS: The amphitheater was inspired by Shakespeare's Globe Theater and is named in memory of Lt. George H. Bruns III. The space was funded by a capital campaign led by Clarence Woodard and supported by foundations and community leaders. In 2009, Cal Shakes announced a second capital campaign to renovate the amphitheater and grounds. Cal Shakes is a 501(c)(3) organization that manages the Bruns Memorial Amphitheater and their most recently reported revenue and expense statement shows that there was an operating deficit of over $1.3M in 2022. Cal Shakes frequently runs fundraising campaigns and receives sponsorships, naming rights funds, donations, investment income, and volunteer hours that contribute to the operating budget.
Bruns Memorial Amphitheater
FY 2019 FY 2020 FY 2021 FY 2022
Total Revenue $4,356,773 $2,510,344 $4,954,755 $3,445,037 Contributions & Grants 2,045,037 2,136,365 4,091,859 2,059,524 Program Service Revenue 2,000,546 270,778 820,434 1,344,054 Investment Income 16,007 (1,952) 5,223 41,459 Other Revenue 295,183 105,153 37,239 -
Total Expenses $6,244,609 $3,176,501 $3,194,050 $4,755,194 Salaries, Wages, Benefits 3,440,962 1,668,616 1,601,343 2,472,826 Fundraising 238,504 189,913 289,404
Other Expenses 2,803,647 1,269,381 1,402,794 1,992,964 Net Operating Income (Deficit) ($1,887,836) ($666,157) $1,760,705 ($1,310,157) Source: GuideStar, Johnson Consulting
California Shakespeare Theater
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Moreno Valley Civic Center Amphitheater – Moreno Valley, California LOCATION: The Moreno Valley Civic Center Theater opened in 2021 and is located in the Moreno Valley Civic Center. Moreno Valley is the second largest city in Riverside County and is about 65 miles east of downtown Los Angeles. Surrounding land uses include residential, civic, commercial, and office.
OWNERSHIP/ MANAGEMENT: The venue is owned and operated by the City of Moreno Valley. The amphitheater is the newest addition to the City’s Civic Center and hosts city-sponsored and other events.
DESIGN: The Moreno Civic Center is a 7- acre landscaped park next to the City Hall and Conference Recreation Center. The park features the 600-seat outdoor amphitheater designed to serve as the City’s premier performance venue. The amphitheater provides ADA accessible tiered seating facing a raised stage with state- of-the-art audio and visual system and 24’ video wall. The architecture of the amphitheater is meant to respond to the adjacent civic buildings and the bandshell directs sound to the audience. There is also ample storage built into the backstage.
Moreno Valley Civic Center
Amphitheater
Moreno Valley Civic Center Park
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Moreno Valley Civic Center Amphitheater – Moreno Valley, California
PROGRAMMING: The Amphitheater is the home for special events in Moreno Valley such as live concerts, multicultural events, festivals, performing arts, and city-sponsored events such as MoVal Rocks, MoVal Movies, Snow Day, holiday events, and others. The facility is also available for rent for performance and social events such as concerts, weddings, parties, and movie premiers. In 2024, the venue will be hosting five free live concerts and five free moving showings from June to August.
FINANCIALS: According to the City of Moreno Adopted Budget FY 2019/20 – 2020/21, the development of the facility was budgeted at $4.9M for the 2018/19 fiscal year. The Amphitheater has its own operating budget reported in the Adopted Budget FY 2021/22-2022/23 and Adopted Budget FY 2023/24-2024/25. Also, according to the venue’s website, there are ongoing fundraising campaigns and donations are accepted through the Moreno Valley Community Foundation. With any civic asset of this scale and public oriented programming, it is common for the venue to be subsidized by the local municipality.
Moreno Valley Civic Center Amphitheater
Summer Programming Snapshot
2019/20 2020/21 2021/22 2022/23 2023/24 2024/25
Total Expenditures $3,549 $41,805 $92,155 $108,805 $83,700 $83,700 Personnel Services 10,530 10,530 10,530 3,000 3,000 Contractual Services 600 600 600 6,500 6,500 Materials & Supplies 3,549 30,675 30,675 30,675 4,000 4,000 Maintenance 50,350 67,000 70,200 70,200
Source: City of Moreno Valley, Johnson Consulting
City of Moreno Valley - Amphitheater Adopted Operating and Maintenance Budget City of Moreno Valley - Amphitheater Hourly Rental Rates Group 1
City Sponsored/
Gov't Agency
Group 2
Resident/
Resident Nonprofit
Group 3
Nonresident/
Nonresident
Nonprofit/
Commercial
Monday-Thursday
2-Hour Min. $211.37 $380.79 $445.04
Friday-Sunday
4-Hour Min. $211.37 $380.79 $445.04
Source: City of Moreno Valley, Johnson Consulting
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Implications
Location: An urban location with close proximity to a large population base and ample retail options can be a huge boost for a performance venue. This can be seen in both the Levitt Pavilion products which are both in dense urban environments that have other attractions such as shopping centers or parks nearby. The Moreno Valley Civic Center Amphitheater and the Ville Amphitheater are both positioned in smaller suburban areas outside larger metropolitan cities, similar to the Simi Valley Civic Center. When developed in a strategic location within a limited footprint that employs appropriate building materials, these facilities can complement the natural beauty of the surrounding environment rather than compromise it and have the potential to foster a sense of place and vibrancy.
Ownership & Management: It is typical for civic amphitheaters to be operated and managed by either the public sector or a non-profit. In particular, it is valuable for these types of facilities to have a motivated operator to champion the project and pursue funding opportunities to cover operating deficits and help structure capital funding.
Design: Ornate and massive venues help create a special experience, but these opulent theaters are extremely expensive to not just build but also maintain. The size and orientation of the amphitheaters are important, especially in warm and sunny climates, and shade and sun should be factored into the design of any outdoor venue in Simi Valley. Most importantly, an amphitheater in Simi Valley must be appropriately sized so it can both maximize community use and provide sufficient space for performers, as programming can also be dependent on the design and size of the venue.
Programming: The v iability of an amphitheater is largely contingent on what type and quality of acts they are able to book. The Levitt Pavilions benefit from the foundational concert series programming the national nonprofit offers. Moreno Valley Civic Center and the Ville are predominantly programmed by the public sector while also allowing for private rentals. The Bruns Memorial Amphitheater, also managed and anchored by Cal Shakes, is known for its Shakespearian theatre and park grounds.
Simi Valley can program the venue to be profitable by booking popular acts while also providing a home to the many performing arts organizations in Simi Valley. The balance of programming should align with the mission and vision for the venue.
Financials: Many performing arts facilities such typically don’t generate an operating profit. Rather, they rely on grants, fundraising, and government subsidies to cover operating losses. This is a feasible operating model as these facilities can have demonstrable positive community, economic, and fiscal impacts. However, it requires a motivated ownership and management team to recognize that value and secure funding to cover any operating losses that may be incurred. Consideration should be given to key existing and potential partnerships when thinking about operating an amphitheater in Simi Valley.
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5. Recommendations &
Projected Impacts
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Introduction
In this section, the Consulting Team details the rationale that supports the project’s feasibility from a market and demand perspective while also ensuring alignment with best practices and the community’s vision for the project. These recommendations are based on the observations, analysis, and conclusions in the preceding sections of this report, which will be summarized in order to provide a coherent rationale for the recommendations. These recommendations will also be used as the basis for the operational recommendations, demand, and financial projections, as well as the economic and fiscal impacts, that will be calculated in the following section of this report.
What would the role
of Civic Center
Amphitheater be?
Is there community
need and desire for
that role?
Will a Civic Center
Amphitheater be
financially viable?
Simi Valley is an attractive community located just above the San Fernando Valley of Los Angeles, on the southern edge of Ventura County. There are two unique characteristics of the Simi Valley market that may influence this project. First, the City is relatively new and was designed as a bedroom community as it is convenient to travel to Los Angeles and other nearby communities. As a result, most residents leave Simi Valley for entertainment and recreation activities, which results in a substantial drain of entertainment spending for the City. This is further demonstrated by the absence of cultural and recreational facilities and there has not been a significant call to action by residents for leadership to develop these types of cultural assets. Second, the nation’s current housing economy is experiencing difficulties, and the upper middle-income nature of the Simi Valley housing stock is attractive to southern Californian families. Those that choose to reside in the single-family homes in Simi Valley typically have paid off mortgages and find that moving is too expensive and monthly expenses are unaffordable. Over time, this will result in increased home turnover, and while residents skew older today, Simi Valley may see an ev olution in residents and the median age may lower. Young professionals and families moving into the area will desire more quality of life amenities, and the community will see an increase for a push in developing these types of amenities and activities.
This sentiment s hould be considered as one envisions the Simi Valley Civic Center project as the proposed amphitheater can act as a contributor to economic and cultural development. The proposed venue, based on the assumptions and projections detailed in this report, will not be commercially viable, and will therefore incur an operating deficit and will be challenged to cover debt service. Notwithstanding this, the Consulting Team believes this project will be a desirable add to the Simi Valley community. To accomplish optimum success, it is envisioned that there is widespread collaboration between arts, cultural, and educational organizations in the City, County, and educational institutions.
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Amphitheater Recommendations
The site of the proposed amphitheater sits on centrally located land owned by the City of Simi Valley, behind the Simi Valley City Hall. In most cases, performing arts facilities are successful when acting as an anchor to a mixed-use development. That being said, the site for the proposed amphitheater currently exists as a small, passive green space that is currently underutilized by the community. Improvements of any kind would upgrade this open space to a recognized community space that will be a natural location to gather. Additionally, with Rancho Tapo Community Park being located just west of the site, this space can act as a gateway to the larger recreational park and become part of the larger park system.
The Consulting Team concludes that a practical, no-frills amphitheater venue would be a benefit to the community, but will require community investment and support. In other communities where a commercially viable amphitheater is not achievable, as is the case in Simi Valley, the host community needs to decide if they choose to view an amphitheater as part of the community’s infrastructure, like a library or park district operation. These types of amenities are seen as assets and are often subsidized in order to maintain operations and serve the community. As with any arts and entertainment venue, success is contingent upon thoughtful design and construction, market-supportable programming, high-caliber management, operational, and marketing practices, and a number of other factors. The City may choose to leverage an existing department to manage the venue or collaborate with a local organization or foundation. Johnson Consulting recognizes that this is not an existing function of the City and would take work to develop. In any case, recruitment of private management will be too costly for this scale of operation.
Public Private Public/Private Public/Nonprofit
Public Amenity
Social Responsibility Revenue Generation Varies Community Interest Social Responsibility
10 1 5 6
Deficit Potential Profit Varies Breakeven
Ownership/Operating Models
Intended Purpose
Level of Public Access (Scale of 1 to 10)
Financial Outcomes
Public
Usage
Revenue
Generating
Public
Usage
Revenue
Generating
Public
Usage
Revenue
Generating
Public
Usage
Revenue
Generating
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Amphitheater Recommendations
The Consulting Team recommends a modest amphitheater that includes a raised, covered stage equipped with a basic grid system for lighting, sound, and other technological capabilities. The audience seating area should have a concrete or other hard surface pad in the area closest to the stage, allowing for approximately 1,000 temporary folding chairs to be brought in if desired, with a slightly sloped or tiered grass lawn for general admission seating further from the stage. In total, the amphitheater should be able to accommodate approximately 2,500 attendees at maximum capacity, while allowing for a cost-effective design. This capacity size may be bold but will allow for commercial opportunities to turn a profit and allow for the proposed festivals to have an anchor stage and smaller stages in the surrounding area.
The venue should also have adequate support spaces such as concessions, vendor space, restrooms, dressing rooms, storage, and other back-of-house support spaces, as the construction budget allows. This type of venue will allow for existing local arts organizations to utilize the space as needed, while also providing Simi Valley the opportunity to attract commercial touring acts. A consideration could be to add a small arts community office to help address coordination among the arts community. The amphitheater should also be designed and constructed in a way that minimizes the consumption of existing green space and mitigates sound and light pollution in adjacent neighborhoods. This project also will encourage improvement of the east side of the Civic Center. That edge of the building can be made into a nice entrance for the amphitheater and the access and interface can also be improved towards the park area capacity. It is further suggested that supporting land uses be considered that align with the development of this project. Since the land is City- owned, this allows the City to retain control of the design and construction of the structure.
Program Element # of Seats
Amphitheater
Seated 1,000
Lawn 1,500
Total 2,500
Source: Johnson Consulting
Amphitheater Program Summary
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Demand Rationale
A new outdoor event venue facility will need to weave together a mix of demand sources in a way that meets the needs of the community while also maintaining a responsible operation in terms of revenue generation. The classic debate regarding these types of facilities is who pays for them and who has priority for using them. As a rule, community organizations and local arts groups feel they have a social mandate to use facilities – they are local taxpayers after all. They will also leverage political organization in order to advocate for a fair balance between their socially beneficial programming and revenue-generating commercial demand.
Meanwhile, City leadership wishes to see a facility with a responsible bottom line that serves as both an amenity to residents and an attraction for visitors. Ultimately, new facilities often enjoy a hybrid model that seeks to serve both demand segments. This can be standardized and regulated by a deal-making process that involves input from all stakeholders and results in the crafting of letters of intent, memoranda of understanding, and booking policies that reflect the current needs of all involved. There is a strong community need in Simi Valley for an art
s and cultural hub, but it is likely that the facility would operate at a loss or break-even and be challenged to recruit top tier touring acts given the various established alternatives in the region. This will result in overpaying for talent to test the opportunity in Simi Valley. There is a competitive venue landscape in both the Los Angeles and Santa Barbara areas south and north of Simi Valley. Other nearby markets have identified this gap and are developing their own plans for a large-scale amphitheater. With other local larger amphitheater venues being proposed, the need for a large-scale operation in Simi Valley is mitigated, but presents partnership opportunities with neighboring communities and venues.
Anchor Tenants/Events
Commercial & Touring Events
Corporate, Social, Community & Nonprofit
Educational & Cultural
Potential Demand Layers
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Demand Rationale
The following programming types will be the target demand layers for an outdoor event venue in Simi Valley. • A nchor Tenants/Events: The Consulting Team’s interviews and outreach provided the basis for the potential organizations that may serve as anchor tenants for the proposed facility. These anchor tenants would provide a foundation of utilization for the facility for community-oriented events. Ideally, an annually repeating set of events, like the Simi Valley Cajun & Blues Festival, become a nnual traditions relished by the regional residents. It is targeted to have a special event/festival once per quarter by Year 3 of operations. A booking policy should be developed to ensure that enough prime dates are available for festivals, commercial, and touring events, which will help to maximize revenue generation. These types of festivals have the capability to draw in the largest amount of visitors to the venue and Simi Valley. The next step for this demand layer is to identify programming and management partners, such as local arts groups and local venues. There is a desire in the market for these arts groups to be served and for the public to be able to attend their performances. In the shorter term, these institutions can not help carry the costs of the venue and face common challenges to local arts organizations across the country in securing fundings for their programming and audience development. The proposed venue would allow for a more formal space for presentations rather than relying on found spaces, schools, and other venues that are not readily available.
Longer term, depending on the evolution of the market, these local arts organizations may grow and develop a collaborative foundation or something similar to aid in coordination and overall support of arts in Simi Valley, such as calendar synchronization. There will also be synergistic programming opportunities with the Moorpark College facility that may be developed, as well as other larger, competitive venues nearby. • C ommercial and Touring Events: In order to attract these events and performances, formulating a sophisticated talent buyer operation is key but may not be practical to have a full-time staff person dedicated to recruiting touring shows and events. In addition to quarterly festivals, Johnson Consulting anticipate the venue to be able to host 7 to 9 larger commercial events on an annual basis. This is projected to result in 1 monthly commercial event type occurring at the proposed amphitheater when combined with a quarterly festival. The performing arts and entertainment industry as a whole is mature and has exhibited steady growth in recent years. These event types include vocal concerts, instrumental concerts, family shows, comedy acts, meet and greets, speaker series, and theatrical acts, among others. There is also a trend in the commercial touring industry for special events that can occur during mid-week windows where a member of an act does a storytelling and limited performance session that is distinct from the act’s main production.
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Demand Rationale
• Corporate, Social, Community, and Non-Profit: The Consulting Team’s interviews and outreach with these local and regional organizations demonstrated an interest in a new venue in Simi Valley to host a variety of events. Many of these events tend to occur during the work week and during the daytime, which complement the arts- related usage which would typically occur during evenings and weekends. The organizations can also infill dark days on the calendar once larger acts are booked to maintain site activation. Johnson Consulting is also seeing a trend where amphitheater stages are used for smaller social and community events such as weddings and holiday parties.
• Educational & Cultural: A new facility in Simi Valley could provide opportunities for use by educational organizations and institutions. As the facility matures, in-house educational programming could be developed, which requires additional staff but represents a major revenue generator for other arts centers in the industry. This type of programming can be especially valuable in the summer months, when there is more competition from outdoor venues. This would also present an opportunity for Simi Valley to showcase the culturally diverse community it represents. It will be important to form partnerships with area schools and their arts departments as well as serve as a host venue to competitive events that often lack a host venue.
Implications
To su
mmarize the strategic recommendations and demand rationale for the proposed amphitheater, there is substantial local demand for this type of venue, however, the Simi Valley market is unlikely able to support a commercially viable venue that is revenue generating. There are a plethora of groups, organizations, and initiatives for arts, cultural, and educational programming that can be hosted at this type of venue in the community. However, these local groups will not be able to fully financially support the operation. It will be crucial to create synergies and partner with other competitive venues in the region to attract touring and commercial acts to Simi Valley.
This type of asset will be valued by the community, but will likely come at a cost to the City.
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75 Operating Projections and Impacts
This subsection provides demand and financial projections as well as an economic and fiscal impact analysis for the proposed amphitheater in Simi Valley, as well as the underlying assumptions that were used in the estimates. It should be noted that this analysis is not intended to represent exact demand or financial outcomes for the proposed venue, but reasonable estimates of how this type of venue could be expected to operate within the Simi Valley market. Key highlights of this subsection will demonstrate that the proposed venue, while it is suggested to be valued as beneficial community infrastructure, will operate in a deficit despite the fiscal, economic, and social impacts that it will add to Simi Valley.
Event Demand
The table on the right shows an estimate of demand, expressed in terms of the number of events by event type, for the proposed amphitheater in Simi Valley. The amphitheater is expected to host commercial events including concerts and festivals, as well as both ticketed and non-ticketed community events. With this resource there will also be a wide array of community use for registrations, small expos and a multitude of other non-commercial events. As shown, in Year 1, the proposed amphitheater is projected to accommodate 6 concerts and 3 festivals, totaling 9 commercial events; as well as 5 ticketed and 7 non-ticketed community events, totaling 12 community events. Upon stabilization in Year 5, these numbers are expected to increase to 12 commercial events and 16 community events, equating to 28 events in total, which will likely increase slightly thereafter. 72 Simi Valley Amphitheater
Projected Demand (# Events)
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Commercial Events
Concerts 6 7 7 8 8 9 9 9 9 9
Festivals 3 3 4 4 4 4 5 5 5 5
Subtotal 9 10 11 12 12 13 13 13 14 14
Community Events
Ticketed Events 5 5 6 6 7 7 8 8 8 8
Non-Ticketed Events 7 8 8 9 9 9 9 9 9 9
Subtotal 12 13 14 15 16 16 17 17 17 17
TOTAL 21 23 25 27 28 29 30 30 30 31 Ticketed Events include events for local arts and cultural organizations, educational institutions, etc.
Non-Ticketed Events include corporate events, social events, etc.
Projected demand is inclusive of existing events that will shift.
Source: Johnson Consulting
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Operating Projections and Impacts
Average Attendance
The table on the upper right shows the projected average number of attendees per event for the proposed
amphitheater in Simi Valley. As shown, in Year 1,
amphitheater events are projected to draw an average
attendance of 1, 500 for commercial concerts, 1, 375 for festivals, 750 for ticketed community events, and 250 for non-ticketed community events. As the amphitheater
develops a reputation as an attractive venue for these
types of events, it will become more successful at
attracting larger events and larger attendance numbers, which is reflected by the slight increases in the average number of visitors per event each year. This trend will also be bolstered by gradual population growth in the
region.
Total Attendance
The table on the lower right shows the projected total
attendance to the amphitheater in Simi Valley:
approximately 20,700 attendees in Year 1, growing to
approximately 30,900 attendees in Year 5 and
approximately 36,100 attendees in Year 10.
Simi Valley Amphitheater
Projected Total Attendance
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Commercial Events
Concerts 9,000 11,025 11,356 13,238 13,370 14,348 14,843 15,088 15,297 15,506 Festivals 6,188 6,497 8,922 9,101 9,192 9,864 10,496 10,783 11,045 11,309 Subtotal 15,188 17,522 20,278 22,338 22,562 24,212 25,340 25,871 26,342 26,815 Community Events
Ticketed Events 3,750 3,938 4,867 4,964 5,849 6,119 6,361 6,479 6,580 6,682 Non-Ticketed Events 1,750 2,100 2,163 2,482 2,507 2,532 2,545 2,557 2,564 2,570 Subtotal 5,500 6,038 7,030 7,446 8,356 8,651 8,906 9,036 9,144 9,252 TOTAL 20,688 23,559 27,308 29,785 30,918 32,862 34,246 34,907 35,486 36,067 Source: Johnson Consulting
Simi Valley Amphitheater
Projected Average Attendance
Year 1
% Capacity Year 1 Year 2 Year 3 Year 4 Ye ar 5 Year 6 Year 7 Year 8 Year 9 Year 10 Commercial Events
Concerts 60% 1,500 1,575 1,622 1,655 1,671 1,688 1,696 1,705 1,709 1,713 Festivals 55% 1,375 1,444 1,487 1,517 1,532 1,547 1,555 1,563 1,567 1,571 Community Events
Ticketed Events 30% 750 788 811 827 836 844 848 852 855 857 Non-Ticketed Events 10% 250 263 270 276 279 281 283 284 285 286 Annual Growth 5.00% 3.00% 2.00% 1.00% 1.00% 0.50% 0.50% 0.25% 0.25% Source: Johnson Consulting
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Operating Projections and Impacts
Financial Projections
The table on the right summarizes the projected
operating statement for the first 10 full years of
operation of the proposed amphitheater in Simi
Valley. Revenues include all revenues that can
be used for operations. All revenues and
expenses are inflated at an annual rate of 3
percent. As shown, in Year 1, the proposed
facility is expected to generate approximately
$197,000 of operating revenues and incur
approximately $ 367,000 in operating expenses,
resulting in a net operating deficit of $ 170,000,
or $625,000 after debt service payment.
In Year 5, net operating deficit is projected at
approximately $143,000, or $599,000 after debt
service payment. In Year 10, net operating deficit
is projected at approximately $ 158,000, or
$614,000 after debt service payment.
Simi Valley Amphitheater
Projected Operating Revenues and Expenses (Inflated $000) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Revenues
1 Rents $67 $77 $89 $99 $103 $112 $119 $124 $130 $135
2 Ticket Fees 38 44 53 59 63 69 74 77 80 84
3 Net Food & Beverage and Merchandise 12 15 17 19 21 22 24 25 26 27 4 Reimbursed Event Labor 23 27 31 35 36 39 42 44 45 47
5 Donations / Memberships / Grants 5 6 9 13 17 17 17 18 18 19 6 Advertising/ Sponsorships 8 10 16 22 28 28 29 30 30 31 7 Naming Rights 45 46 47 48 50 51 52 53 55 56
8 Total $197 $224 $263 $295 $316 $338 $357 $371 $385 $399 Expenses
9 Salaries and Wages $130 $135 $139 $144 $149 $154 $160 $165 $171 $177 10 Benefits 43 45 46 48 50 51 53 55 57 59
11 Administrative and General 50 51 53 54 55 57 58 59 61 62 12 Event Labor 12 13 16 17 18 20 21 22 23 24
13 Event Expenses 50 57 67 74 77 84 90 93 97 101
14 Maintenance / Repairs / Landscaping 8 9 10 11 12 13 13 14 14 15 15 Marketing 25 26 26 27 28 28 29 30 30 31
16 Operation / Occupancy / Utilities 32 36 41 45 48 51 54 56 58 60 17 Other 11 12 12 13 13 14 15 15 16 16
18 Reserve for Replacement 6 7 8 9 9 10 11 11 12 12
19 Total $367 $390 $418 $443 $459 $482 $503 $521 $539 $558 20 Net Operating Income (Deficit) ($170) ($166) ($155) ($148) ($143) ($144) ($146) ($150) ($154) ($158) 21 Debt Service Payment ($455) ($455) ($455) ($455) ($455) ($455) ($455) ($455) ($455) ($455) 22 NOI(D) After Debt Service ($625) ($621) ($610) ($603) ($599) ($599) ($601) ($605) ($609) ($614) Notes:
Line 16 - Includes insurance, license, equipment leases, energy costs, etc.
Line 20 - Net Operating Income (Deficit) does not include the cost of debt service.
Source: Johnson Consulting
Line 5 - Donations/ Memberships may be higher based upon marketing efforts of the facility management and community support for the facility.
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Operating Projections and Impacts
Assumptions for Revenue Projections
The table on the upper right summarizes the assumptions utilized in the revenue projections for rents, ticket fees, food and beverage and merchandise sales, reimbursed event labor, donations/ memberships/ grants, advertising/ sponsorships, and naming rights. The assumptions based upon comparable facilities and experience in the industry.
Assumptions for Expense Projections
The table on the lower right summarizes the assumptions utilized in the expense projections for salaries and wages, benefits, administrative and general, event labor, event expenses, maintenance/ repairs/ landscaping, marketing, operation/ occupancy/ utilities, other expenses, and reserve for replacement. Similarly to the revenue assumptions, the expense assumptions based upon comparable facilities and experience in the industry. Salaries and wages refer to the assumed staffing needs for this development. The Consulting Team has assumed two FTEs for this operation, one being a manager with an approximate compensation of $ 85,000 and one being engineering/technical/maintenance with an approximate compensation of $45,000, totaling $130,000. This could also materialize as one full-time staff member and one part-time staff member.
Simi Valley Amphitheater
Revenue Assumptions
Assumptions
1 Rents
Commercial Events $3,000 / event + 5% of Ticket Revenue Community Events
Ticketed Events $500 / event + 2.5% of Ticket Revenue
Non-Ticketed Events $750 / event + 0% of Ticket Revenue 2 Ticket Fees $2.00 / ticketed attendees
3 Food & Beverage and Merchandise
Commercial Events $10.00 / attendee
Community Events $6.00 / attendee
Net-to-Gross Ratio 45.0% of gross sales
Net to City 15.0% of net sales
4 Reimbursed Event Labor 35.0% of rents
5 Donations / Memberships / Grants $15,000 / year, with ramp-up period 6 Advertising/ Sponsorships $25,000 / year, with ramp-up period 7 Naming Rights $45,000 / year
Source: Johnson Consulting
Simi Valley Amphitheater
Expenses Assumptions
Assumptions
9 Salaries and Wages $130,000 / year
10 Benefits 33.3% of Salaries and Wages
11 Administrative and General $50,000 / year
12 Event Labor 50.0% of Reimbursed Event Labor
13 Event Expenses 75.0% of building rents
14 Maintenance / Repairs / Landscaping $150 / use days
15 Marketing $25,000 / year
16 Operation / Occupancy / Utilities $600 / use days
17 Other 3.0% of Total Expenses
18 Reserve for Replacement 3.0% of Gross Revenue
Source: Johnson Consulting
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Economic and Fiscal Impact Estimates
Economic Impact is defined as incremental new spending in an economy that is the direct result of certain activities, facilities, or events. For the purpose of this analysis, impact totals are discussed in terms of the Simi Valley economy. The levels of impacts are described as follows:
• Direct Spend – spending that occurs as a direct result of the facility’s operation (example: attendee purchases meal at restaurant nearby). • Indirect Spend – re-spending of the initial direct expenditures on goods and services (example: restaurant purchases more food from supplier). • Induced Spend – changes in local consumption due to the personal spending by employees whose incomes are supported by direct and indirect spending (example: waiter at the restaurant has more personal income to spend).
• Increased Earnings – measures increased employee and worker compensation related to the facility’s operation.
• Employment – measures the number of full-time equivalent (FTE) jobs supported in the local economy as a result of the facility’s operation. • Fiscal Impact – reflects tax revenues to local and state governments that result from the facility’s operation.
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Economic and Fiscal Impact Estimates
Multiplier Rates
The table on the upper right summarizes the multiplier rates utilized in the economic impact estimates to calculate indirect spending, induced spending, increased earnings, and employment. These multiplier rates are derived from an IMPLAN input-output model, which is a nationally recognized analytical tool commonly used to estimate economic impacts. An input-output model analyzes the commodities and income that normally flow through various sectors of the economy.
Tax Rates
The table on the bottom right summarizes are the applicable tax rates utilized in the fiscal impact estimates. They focus on the taxes directly affected by visitors’ spending activities:
• Sales and Use Tax – is 7.25 percent total, which includes State sales tax at 6 percent and County sales tax at 1.25 percent. There is no City sales tax.
• Hotel/ Motel Tax – is applied to hotel room sales, in addition to Sales and Use Tax. Transient Occupancy Tax is 10 percent.
• Tourism Business Improvement District (TBID) Assessment for Visit Simi – is applied to charges on room nights, at 2 percent.
Simi Valley Amphitheater
Economic Impact Multipliers
Impact Multiplier Base
Indirect Spending 0.346 per $1 of direct spending
Induced Spending 0.370 per $1 of direct spending
Increased Earnings 0.810 per $1 of direct spending
Increased Employment (FTE) 10.352 per $1 million of direct spending Source: Implan, Johnson Consulting
Simi Valley Amphitheater
Applicable Taxes
Tax Rate
Sales and Use Tax
California State Sales Tax 6.00%
Ventura County Sales Tax 0.25%
Ventura County Local Tax Sl 1.00%
Total Sales Tax 7.25%
Hotel/ Motel Tax
Transient Occupancy Tax 10.00%
Assessment
Tourism Business Improvement District (TBID) Assessment for Visit Simi 2.00%
Source: Johnson Consulting
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Economic and Fiscal Impact
Estimates
Spending Estimates
The table summarizes the estimated
activity and spending volume at the
proposed amphitheater in Simi Valley. As
shown, in its opening year, the proposed
facility is estimated to generate
approximately 21,400 person-days and
595 room nights, resulting in
approximately $1.1 million of spend, on-
site and off-site. In Year 5, event activities
are projected to result in 31,900 person-
days, 872 room nights, and $1.8 million of
spend, on-site and off-site. In Year 10,
event activities are projected to result in
37,200 person-days, 1, 000 room nights,
and $2.4 million of spend, on-site and off-
site.
Simi Valley Amphitheater
Estimated Spending Volume (Inflated $000)
Activity Volume Rate/ Assumption Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 1 Attendance 20,688 23,559 27,308 29,785 30,918 32,862 34,246 34,907 35,486 36,067 Person-Days
2 Attendees 20,688 23,559 27,308 29,785 30,918 32,862 34,246 34,907 35,486 36,067 3 Participants and Other Visitors 720 770 890 940 960 1,005 1,043 1,058 1,073 1,088 4 Total 21,408 24,329 28,198 30,725 31,878 33,867 35,288 35,965 36,558 37,155 5 Room Nights 595 676 784 856 872 931 973 992 1,009 1,026 Sales Volume ($000)
6 Spending on Amphitheater $197 $224 $263 $295 $316 $338 $357 $371 $385 $399 Spending Off Site Avg. Spending
7 On Lodging $181 / RN $107 $125 $149 $166 $174 $190 $204 $213 $222 $232 On Food and Incidentals
8 Attendees $36 / PD $749 $874 $1,039 $1,161 $1,235 $1,346 $1,438 $1,502 $1,565 $1,630 9 Participants and Other Visitors $36 / PD 26 29 34 37 38 41 44 46 47 49 10 On Car Rental $49 / RN 29 34 40 45 47 52 55 58 60 63 11 Subtotal $912 $1,062 $1,262 $1,409 $1,495 $1,629 $1,741 $1,818 $1,895 $1,974 12 Total $1,109 $1,286 $1,525 $1,704 $1,811 $1,967 $2,098 $2,189 $2,280 $2,373 Source: Johnson Consulting
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Estimated Economic and Fiscal Impact (Inflated $000)
Economic Impact ($000) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 1 Direct Spending Multiplier Rate $1,109 $1,286 $1,525 $1,704 $1,811 $1,967 $2,098 $2,189 $2,280 $2,373 2 Indirect Spending 0.35 384 446 528 591 627 682 727 759 790 822 3 Induced Spending 0.37 410 476 564 631 670 728 776 810 843 878 4 Total Spending $1,903 $2,208 $2,617 $2,925 $3,108 $3,377 $3,601 $3,758 $3,913 $4,074 5 Increased Earnings 0.81 $898 $1,041 $1,234 $1,380 $1,466 $1,593 $1,698 $1,772 $1,846 $1,921 6 Increased Employment 10.35 11 13 15 16 17 18 19 19 19 20 F iscal Impact ($000) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Sales and Use Tax Tax Rate
7 California State Sales Tax* 6.00% $67 $77 $91 $102 $109 $118 $126 $131 $137 $142 8 Ventura County Sales Tax 0.25% 3 3 4 4 5 5 5 5 6 6
9 Ventura County Local Tax Sl 1.00% 11 13 15 17 18 20 21 22 23 24 10 Simi Valley City Sales Tax 0.00% 0 0 0 0 0 0 0 0 0 0 11 City Hotel Room Tax 10.00% 11 13 15 17 17 19 20 21 22 23 12 Total Sales Tax $91 $106 $125 $140 $149 $162 $172 $180 $187 $195 13 TBID A ssessment for V isit Simi 2.00% $2 $3 $3 $3 $3 $4 $4 $4 $4 $5 *The City of Simi Valley does not receive a portion of this.
Source: Johnson Consulting
79 Economic and Fiscal Impact
Estimates
Impact Estimates
The table summarizes the estimated
economic and fiscal impact of the
proposed amphitheater in Simi Valley. As
shown, in its opening year, the proposed
facility is estimated to generate
approximately $1.9 million in total
economic impact, $ 898,000 in increased
earnings, eleven jobs, $ 91,000 in tax
revenues from sales and lodging taxes,
and $2,000 in TBID Assessment for Visit
Simi.
In Year 10, it is estimated to generate approximately $4.1 million in total economic impact, $1.9 million in increased earnings, 20 jobs, $195,000 in tax revenues from sales and lodging taxes, and $5,000 in TBID Assessment for Visit Simi.
Implications
As previously mentioned, this venue is projected to incur an operating deficit despite the projected event and attendance demand. However, the development of this venue will not only have significant social impacts to the community, but Simi Valley would also be able to retain a portion of entertainment spending dollars and other economic and fiscal impacts that are currently leaking into neighboring communities. Another key factor of success for this venue will be the marketing and funding strategies.
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Marketing Strategy
The key to effective marketing for the amphitheater is to identify partnerships early on in development. Through the stakeholder engagement process of this project, the Consulting Team learned that there are various local and regional area venue promoters that are interested in programming the venue. A number of arts organizations within Simi Valley are already presenting their own programming and may have room to grow their programming potential with the development of a new performance venue in Simi Valley. Simi Valley is not currently an established entertainment hub, but the established promoters and arts groups can leverage their own following to market new events at the amphitheater. There are also opportunities to leverage synergistic programming opportunities with regional venues. For example, Moorpark College is envisioning an amphitheater for the campus and Thousand Oaks is looking at an amphitheater for their Civic Arts Plaza area. If they attract a headlining act, there can be ancillary programming that happens at the Simi Valley Amphitheater. Simi Valley’s venue will not be large enough nor established enough to afford headlining or similar acts, but can benefit from partnering with larger venues and promoters.
It will also be pertinent to have an event calendar and other amphitheater information that is easily accessible to the general public. Having a master calendar of events that is accessed through various city and arts organizations’ platforms will support that effort. Further, working with the County and other regional groups to support promotion of the venue and events taking place there will encourage more regional visits. It can also be helpful to rehome popular community events and festivals to this amphitheater site to encourage familiarity and build upon existing audience. Other than hosting existing arts and events programming, there is also an opportunity to market the venue and events to groups that may not be served by the current offerings. For example, Simi Valley is primarily made up of families and is ethnically diverse, meaning that there is a market for family-oriented and multicultural programming that could be hosted at the proposed amphitheater.
Another crucial f actor of this development, and the ongoing success and utilization of the amphitheater, will be a skilled general manager. This person should have extensive operating experience in similar venue types in order to operate and market the venue effectively, as they will act as both the marketing and content creation arm. The general manager will be essential in identifying the aforementioned partnership opportunities. There should also be a skilled technical employee on staff to oversee the technical and other operations of the amphitheater. Ensuring efficient operations of the venue will help encourage repeat visits for presenting acts and guests. Since this is assumed to be a City-operated venue, it would be advantageous to leverage existing experts in the community, such as staff at the Simi Valley Cultural Arts Center, to support this effort as hiring new full-time staff will be a cost to the operator.
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Funding Strategy
The proposed amphitheater located in the Simi Valley Civic Center is assumed to be a city-operated venue. The 2,500-seat venue is too small for a private management company, as that would be a high-cost operating model. These venues are also often owned by a nonprofit, foundation, or local chamber and can get grants or other funding from the city. This is the type of infrastructure that most communities have, such as a library or a recreation center. A Civic Center amphitheater provides a community gathering place that is currently missing from Simi Valley. These types of assets contribute to the overall quality of life for the community as well as feeding into economic development efforts.
It is atypical, though not unheard of, for public facilities to cover debt service from their revenue alone. Johnson Consulting has assumed a level of contributions and grants that will feed into the overall operating model, but targeting a more aggressive grant and fundraising effort than what we have assumed will significantly influence the bottom line. However, in pursuing risk avoidance, it will be important for the City, the assumed owner, to consider and solve for the funding gap. As such, the following presents an overview of financing and taxing mechanisms that can be used to bring this project to fruition.
The mix of r evenue sources selected in any given case depends upon the comparative level of existing taxes or fees, as well as what is considered to be both fair and reasonable under the unique political and economic circumstances relating to each specific project or venue. In most communities, a high level of commitment and coordinated community-wide effort, including both state, county, and local governments, is necessary to successfully fund a new or improved project.
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Funding Strategy
There are numerous financing tools used to fund public facilities that could be applied to the proposed amphitheater in Simi Valley. These include:
1. Pay-As-You-Go Financing: Projects that are relatively small or that are financed in municipalities with rapidly growing tax bases are sometimes paid for directly out of appropriated funds each year. However, the majority of facilities are financed with long-term debt so that payment of capital costs corresponds to the period over which the facility is used, and its economic benefits are realized. Some portion of the amphitheater might be paid for out of the City’s general fund, but that portion is likely to make up a small amount of the overall capital stack.
2. General Obligation Bond Financing: Long-term bonding using the general obligation of the City, County, and/ or State either directly as part of a capital outlay program or as guaranteed debt of an authority that would provide strong credit and relatively low borrowing costs. GO bonding is typically reserved for projects perceived to benefit the population as a whole, such as educational, economic development, or transportation, and the amphitheater certainly falls within this category of projects. This is a strong financing option for this project, though it will be important to identify funds which would make sense to service the debt on them.
3. Revenue Bo nd Financing: Revenue bonds are another source of finance that can be used to build, own, and operate public purpose facilities that have no power to tax. They derive their revenues from user fees and other sources and must finance general and capital expenditures out of these receipts and whatever amount they are permitted to borrow, which can be tailored to fit the specific requirements of the involved local and state governments. Given this project’s projected revenue, this is a viable funding source, although not for the entire cost of the venue.
4. Capital Development Funds: Certain public or non-profit organizations have funds devoted specifically to capital development projects. Often these funds are used for smaller, pay-as-you-go type projects, but they can also make up part of the capital stack on a larger project or improvement plan.
5. Naming Rights & Sponsorships: Sponsorships and particularly naming rights can be a substantial, long-term revenue stream for facilities. This funding source could be significant, though still a relatively minor part of the overall capital stack.
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Funding Strategy
6. Fundraising & Arts Grants: This development is a strong candidate for a capital campaign to raise funds from various patrons of the arts locally and nationally. It is also a strong candidate for various grants provided to arts organizations by various foundations and other philanthropic entities. For example, there are arts grants available through the National Endowment for the Arts, California Arts Council, and the recently available Ventura County Arts and Cultural Fund. Implementing educational programming at the amphitheater will also leverage the project for arts education grants and fundings.
7. Parking Revenues: The proposed venue is projected to bring in thousands of attendees annually, most of whom would arrive by car and thereby need to park.
Crediting some part of the revenue generated by publicly-owned parking during events at the amphitheater would help service bonds for the facility.
In addition to the financing tools described above, there are a number of taxing mechanisms that could be used to fund the proposed amphitheater in Simi Valley. These include:
1. Sales Taxes: Sales tax provides a strong credit structure because it is relatively predictable and tends to track with inflation and economic growth. A general sales tax increase, or expansion of the base, can provide a robust incremental revenue stream. However, these taxes are often difficult to implement because they primarily tax local residents and require referendum and/ or State legislative approval. There are examples of municipalities using a general sales tax, over a fixed period, to finance major capital projects. The quick-pay method enables municipalities to generate the necessary revenue over a short period of time, but a general sales tax is a blunt taxing instrument that does not provide a direct correlation between burden and benefit. This is a mechanism worth exploring for this project, but, due to the unpopular nature of sales taxes, is unlikely to be implemented.
2. Hotel Occupancy Tax: Hotel taxes have the major advantage of primarily taxing out-of-town visitors, rather than local residents. Given that this facility would contribute to some hotel rooms, some amount of hotel tax put to its financing would be reasonable, though that quantity is likely to be small.
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Funding Strategy
3. Food and Beverage Tax: Food and beverage taxes have been used throughout the country to support the costs of developing, and renovating, public facilities and to fund related infrastructure. The revenue potential is significant, as the second highest spend occurs on food service, after lodging. Food and beverage taxes are directed towards beneficiaries of the project and to some extent, non-residents. There may be an opportunity to leverage some portion of existing food and beverage tax revenues or dedicating an additional point to support development and operations of the amphitheater.
4. Tax Increment Financing (TIF): TIFs are based on the incremental tax value of ancillary economic development projects that are triggered by a major facility. The tax base of a defined TIF district is frozen and any increases in the future tax base are used to repay TIF bonds. While typically instated prior to construction of a new facility, they can be applied to support capital improvements and ongoing operations. The most powerful TIFs are those based on sales tax but there are many example of property tax based TIFs throughout the country. Though the amphitheater itself would not generate increment due to its publicly owned nature, a TIF district surrounding it could. Given the venue’s capacity to anchor redevelopment in the district, there would be merit for funding it using TIF. This could also encourage investment and development into the commercial infrastructure near the Civic Center.
5. Admissions Ta x: A tax on ticket sales at the new amphitheater, as well as at other entertainment venues within Simi Valley, could generate significant revenue which could be used to service bonds.
Implications
Many of these tools have merit in serving as a backstop in funding should the revenue generated by the venue not be sufficient to cover debt service, then be released back to the City if not needed. Some specific suggestions include partnerships with the county, state, and school districts. Building a broad coalition in support of this project would help reduce the risk incurred by individual entity and make it more of a “community” facility. Partnerships with large local employers or other entities can help with marketing, driving visitation, and presents opportunities for naming rights sponsorships or other partnerships that can help solve for part of the budget.
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Next Steps
A project’s development starts with
feasibility analysis, gets political
approval, obtains funding and then is
built and operated. There are certain
steps that must be followed in order to
finalize a project. This project is
currently in the Strategize phase as
shown in the graphic at right. This is
an iterative process as more data and
details are finalized. At this point, this
study becomes the jumping off point for
the balance of the project. The primary
next step to advance this project is to
identify a champion to further
coordinate project development.
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