Highest and Best Use Study Presentation for the November 19, 2008.

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Highest and Best Use Study Presentation for the November 19, 2008

Transcript of Highest and Best Use Study Presentation for the November 19, 2008.

Highest and Best Use Study Presentation for the

November 19, 2008

Study was conducted in response to request for long-term lease of the racetrack

Study was originally focused on future use of the Fairgrounds, as a Fairgrounds – not moving

Board members posed two questions that refocused the study

What is the future potential for the annual Tennessee State Fair?

How does the future of the Fair impact site and facility needs?

I. Assessment of Long-Term Viability of the Fair and Identification of Potential Future Uses of the Fairgrounds

II. Recommendations of Future Fair and Fairground Use

To be a major venue for agricultural, exhibition, entertainment, cultural, and educational uses to enhance the economic and social benefits to the residents and visitors to the middle Tennessee region. Of primary importance is the staging of the annual Tennessee State Fair that showcases agriculture, commerce, technology, and industry of the region and provides quality educational and entertainment opportunities for its patrons.

Tennessee State Fair – a county/regional fair

Declines in paid and total attendance

Perceived “static” programming

Perceived safety issues

Decline in 4-H participation

Tennessee State Fair’s future is very viable – potential to become a true State Fair

Requires changes to operating model, programming, facilities and, perhaps, site location

Potential for strengthened and new partnerships with key organizations

Public meetings in January, May, August

Neighborhood district visioning session

Comments submitted at websites

Interviews of current users, stakeholders, interested parties and public officials

Access/Road System, Public Transportation

Site Size and Layout

Surrounding Land Uses

Zoning and Deed Restrictions

Topography and Special Conditions

Approximately 117 acres

35 acres in floodplain and embankments

About 23 acres for main facilities

About 14 acres related to grandstand, racetrack and pit areas

Population trends of the Nashville/Davidson County area

Socio-Demographics of area within 15 miles of the Fairgrounds

In 2007, attendance represented 12.6% of County resident population

True state fair should be able to garner 25% to 35% market penetration

Range of potential attendance – 350,000 to 500,000

Three Principal Business Units

Annual Tennessee State Fair

Monthly Flea Market

Non-Fair Rentals and Leases

Exhibition Space Competition

Nashville Convention Center

Gaylord Opryland Convention Center

Local area hotels

Spectator Event Facility Competition

Municipal Auditorium

Sommet Center

Curb Event Center

Allen Arena

Current lease provides base rent of $50,000 per year for all facilities plus percentage of concessions revenues

Base rent – less than $140 per day for the facilities included in the agreement

Ten years ago the lease payment exceeded $250,000 per year

Though car counts are up in recent years, attendance has been unremarkable

NASCAR’s televising of major races has negatively impacted weekly racing series attendance nationwide

Continued competition from Nashville Superspeedway and Music City Raceway

Review of State and Regional Fairgrounds 100% have livestock and exhibit facilities

92% have horse show facilities

72% have an arena

69% have RV facilities (average of 250 to 300)

53% have a grandstand

14% have amphitheater

Multi-purpose event facilities

Addition of sports and recreation venues

Partnerships with carnival operators for permanent rides and entertainment areas

Lease of out lots for retail, commercial and hotel developments

In June, issued RFI to public organizations and private companies

More than 100 – real estate developers, sports and entertainment, racing, economic development

Purpose of the RFI:

Solicit interest and ideas for the possible redevelopment of the Fairgrounds

Nine Responses

Two Did Not Meet Development Criteria

Five Were Similar in Redevelopment Concepts and Impacts

Two Were Unique in Concept and Impact

Presentation to Fair Board on August 5

Public Presentation on Aug 20 by

Southern Land Company

TEAM 821

Tennessee Motor Sports Conservancy

Wedgewood Partners

Mixed-Use, Town Center Concept For Sale/Rental Housing (1,000 – 1,100

Units)

Entertainment District (Amphitheater)

Retail/Commercial (350K – 500K sq. ft.)

Park Area (43 acres)

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Mixed Use Entertainment /Venue District

Single-Family Cottage District

Residential Overlook District

Green District

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Film and Entertainment DevelopmentFilm and Television Production Studio

Higher Education Film School

Mixed-Use Office and Housing

Arts and Entertainment Venue

Sports and Entertainment District NASCAR Speed Park Water Park Hotel Baseball Stadium Hall of Fame Entertainment District (800K sq. ft.) RV Park Educare Amphitheater Music City Motorplex

Mixed Use DevelopmentOffice – 60%/65%

Retail – 15%/20%

Housing – 15%/20%

All would purchase the site at market value

TN Motor Sports Conservancy proposed the Fair remaining at the site, make substantial improvements to existing buildings

Wedgewood Partners proposed a site specific swap, building program and endowment

Mixed use development (housing/retail/commercial) investment potential - $275 million to $1.2 billion over 10 years

Benefits to County in form of real estate and sales taxes - $12 million to $42 million per year

Best meets the needs/desires of the surrounding neighborhoods

Browns Creek Development investment potential of $500 million over 10 years

Benefits to County in form of real estate and sales taxes - $18 million to $20 million per year

Compatible with surrounding neighborhoods

Financially, more risk than mixed-use development

TN Motor Sports Conservancy investment potential of $150 million to $160 million

Benefits to County in form of real estate taxes – $2.5 million to $3.0 million per year

Least compatible with surrounding neighborhood

Question as to market potential for continued racetrack operation

Highest and best future use(s) of the Fairground site depends on one of two choices:

Continue as county/regional fair

Re-invent as true State Fair

Required changes to operations and facilities: Consider taking over racetrack operations

Contract with private management company

Plan and implement landscaping, beautification and building upgrades - $5.5M to 7.5M

Create a foundation for capital projects and educational programs

Initial Options for Site:

Move to another site and construct a new Fairgrounds

Make significant changes to existing site layout, buildings and structures

Initial Options for Site:

Move to another site and construct a new Fairgrounds

Site size ranges between 225 acres and 380 acres

Wholesale change in governance model

Fair Authority

Division of State Department/Agency

Fair must be more “state” focused in educational programming, competitive exhibits, sponsorships and attendance appeal

Highest and best use for current site is a mixed-use/commercial developmentBest addresses issues of: Neighborhood compatibility

Fiscal benefits to local and state government

Catalyst for growth/development of South Nashville area

Motor Sports and Entertainment Development

Historical operations and current market factors do not support projected attendance

Development concept lacks compatibility with surrounding neighborhoods

Sale of fairground site at highest market value

Dedication of portion of future property taxes or fees

Partnership with State of Tennessee

Major donations/capital drive and naming rights sponsorships

Decide what the Tennessee State Fair will be in the future

Determine needed facilities for the future Tennessee State Fair

Highest and Best Use Study Presentation for the

November 19, 2008