Shakopee Site Plan FINAL 1-11-12

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    January 8 th, 2012Brad Tabke Mayo r, Shakopee

    Cory Merr ifield Founde r, SavetheVikes.o rgRep. Mike Bea rd (R-Shakopee)Sen. Claire Robling (R-Shakopee)Ang ie Whitcomb P resident , Shakopee Chambe r &Visitors Bureau

    Shakopee, home of ValleyFair, Canterbury Park,Raceway Park, Mystic Lake and the Vikings!Minnesotas entertainment Capitol!

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    Who is SavetheVikes.org ?A gr assroots, nonpa rtisan gr oup dedicated to secu ring theViking s a new home in MinnesotaOpen to many fo rms of stadium solutions and financingAn advocate fo r keepin g the Viking s in MinnesotaNot owned o r ope rated by any company o r politicalorg anizationFounder Cory Merrifield created S avetheVikes.org to befor the fans , by the fans

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    Goal: Finance a multi purpose stadium in Shakopeeto keep the Vikings in Minnesota

    Tax f reeNo Gene ral Funds, No Tax Increases

    Create jobs - 21,000 jobs fo r MinnesotansFair to all pa rties involved:

    Tax Paye rsState of MNViking sFans

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    Shakopee Site Valley Pa rk Dr & Valley Indust ry Blvd N4

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    Shakopee Site Valley Pa rk Dr & Valley Indust ry Blvd N5

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    About the Site130- ac re lot , formerly ADC world headqua rte rsAdjacent City owned 105- ac re lot zoned fo r pa rk andrecreation contains lake , room for pa rks, trails andovernig ht camping .Nine hotels within a five mile radiusSouth five miles on 169 from Winte r Pa rk, between

    Mankato Training Camp and Vikin g s HQEntertainment Co rr idor in Shakopee with ValleyFai r, Cante rbury Pa rk, Raceway Pa rk, Murphys landin g andminutes from Mystic Lake and 3 of Minnesotas best

    g olf courses

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    Site BenefitsExisting infrast ructure (Electrical, Wate r, Sewe r, Communications)

    No environmental cleanup neededTwo prope rty selle rs compa red to dozens inMinneapolisRoom for fan plaza , tailgating, trailg ating andrailgatingLake Access: Ice skating, pond hockey , snowmobilepa rking in the winter. Fishing, paddle boatin g, paddle boa rding and ba rs with outdoor patiosoverlooking the wate r in the summer.

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    Transpo rtationCapable of 22,000 pa rking spots and retail/hotel space

    Ove rflow pa rking /tail g ating available at Cante rbury Pa rk, ValleyFai r and Raceway Pa rkwith shuttle service available simila r to Soldie r Field in Chicag o.

    Minor transpo r tation inf rast ructure costs compa red to A rden HillsFour existing major points of Entry (169, 101, 13, Cante rbury Road)49 4 and 169 interchang e will be completed by 2015 reducing time in and out13 and 101 three way inte rchang e will be completed in 2012 easing cong estion and time inand outHig hway 101 four lane flood resistant b ridg e will ease con g estion for fans coming fromChaska , Chanhassen , Eden Prai rie and Minnetonka.

    Shakopee will add an exit ramp off 169 and Valley Pa rk DriveBlooming ton Ferry Bridg e Lig ht Rail ready , rail lines available alon g river to stadium

    40 pe rcent of the Viking s season ticket holde rs live in the met ro a rea , the majo rity of that40 pe rcent live in the west met ro making Shakopee close r than Arden Hills and in somecases close r than the Met rodome

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    "People have been out of wo rk toolong . Let's put people back to wo rk, We need a people's stadium

    Surcharg es on tickets and souveni r and food and beve ra ges. not adolla r from gene ral funds."

    "I propose a casino somewhe re whe rethe state would de rive maximumfinancial benefit."

    - Minnesota Gove rnor, Mark Dayton

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    CostIn 2009 Metropolitan Spo rts Facilities Commission(MSFC)retained HKS a rchitects and Mo rtensonConstruction to develop a stadium plan

    Metrodome Next 1 plan was c reatedTotal cost as of 2012 : $87 5 million2

    Utilizing that analysis pai red with the cost of the landin Shakopee , total cost is estimated at $ 920 million

    Second la rg est site, second least expensive behindMetrodome site

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    The Shakopee stadium finance plan is as easy as 1-2- 311

    3 . Racino2 . User Based Fan Fees

    1 . Minnesota Viking s

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    Viking s ContributionViking s contribution to the state th roug h playe r income tax , corpo rate income tax and othe r misc. revenues is p rojectedto be $ 32 million annually with the new stadium3

    Viking s mana ge p rope rty and pay ope rational costs miti gating risk to taxpaye rs4

    Annual public contribution would be $ 29 million throug hRacino tax revenue - not throug h any income o r sales taxincreasesFans will contribute $ 16 million annually from user basedfan fees If you use it , you pay fo r it and if you dont , youwont

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    Vikings Contribution:Down Payment = $4 00 Million from Viking s

    Includes $200 million G4 loan f rom NFL

    Viking s payin g 43 pe rcent on pa r with nationalave ra g e

    Avera ge public subsidy fo r an NFL stadium in last 1 4 yea rsis 60 pe rcent

    Realistic option conside ring Viking s a re last in revenuein NFL and receive lea g ue subsidies to stay p rofitable

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    Percentage paid by public for NFL Stadiums ( 5) Figures in Millions

    Year Team Private $ Public $ Total Cost % of Public Payment2011 Chiefs (Refurb) 125 263 .4 388.4 6 8%2010 J ets/Giants 1,600 0 1,600 0%

    2009 Cowboys 7 50 44 0 1190 3 7%200 8 Colts 100 619 .6 719 .6 87 %2006 Ca rdinals 1 45 .4 310 .3 455 .7 69%2003 B ea rs (Refurb) 200 3 87 587 66%2003 Packe rs (Refurb) 126 .1 169 .1 295 .2 5 8%2002 Patriots 3 40 72 412 1 8%2002 Lions 330 110 44 0 25%2002 Texans 1 85 2 89 474 61%

    2002 Seahawks 161 300 .3 461 .3 66%2001 Steele rs 109 .2 1 71 .6 2 80 .8 62%2001 Br oncos 111 .8 289 400 .8 7 3%2000 B engals 25 42 4.8 44 9 .8 95%1999 Titans 84.8 206 .9 291 .7 7 1%1999 Br owns 71 200 2 71 74 %199 8 Ravens 22 .4 203 .6 226 91%199 8 Buccanee rs 0 19 4 19 4 100 .00%

    199 7 Redskins 1 80 70 .5 250 .5 29%A verage Public Contribution: 6 0%

    Contributions to NFL Stadiums ( Source: CSL NFL Stadium Funding Summary)14

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    $5 20,000,000

    A mount to be financed after Vikings/NFL down paymentof $ 4 00 Million

    $16,000,000 U ser based fan fees

    $29,000,000 Annual Racino contribution

    $45 ,000,000 Annual Payment fo r MultiUse Stadium

    29 Number of yea rs to pay off stadium (Estimated)

    Financial Breakdown15

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    Stadium PlanU ser Based Fees

    Minnesota State Lotte ry Viking s scratch offs (Pacin g $4 -5 millionannual net p rofit)6

    Ticket surcha rg e of $ 5 .00 beyond existin g tax (Gene rates $ 3

    million annually)7

    Stadium Naming Rig hts: Wo rth $1 4 million annually; $8 million tothe State of Minnesota , $6 million to the Viking s8

    Additional Option: Annual Viking s concessions sales a re $7 million.Projected concessions sold at new stadium p rojected at $ 10 million.Appendin g a 5 pe rcent surcha rg e on all concessions sold at stadiumwould gene rate additional $ 500,000 annually above existin g salestax revenues 9

    Personalized license plates would gene rate $ 500,000 to puttowa rds stadium annually (plus additional $ 300,000 for MNDOTpe r WI DOT Packers model)10

    Data Sou rces: MN State Lotte ry, WI DOT, MSFC, CSL( all available upon request)

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    A nnual Figures

    (In Millions ) O ption$3,250,000 Ticket Stadium Surcha rg e

    $4 ,250,000 Viking s Scratch Offs

    $8 ,000,000 Shakopee Stadium Namin g Rig hts

    $500,000 Viking s License plates

    $1 6 ,000,000 Total user based annual cont ribution

    U ser Based Fees

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    Public Financing Racino:No use of State of Minnesota gene ral funds

    No sales , income or prope rty tax inc reases

    One time down payment of $4 5,000,000 to b ring down financeamount

    $29 million in annual contributions

    Racino estimated to gene rate $ 125 million annually11

    Use Racino as collate ral fo r bonding bill

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    Total Stadium Cost 920,000,000

    Vikings Total Contribution 200,000,000

    NFL G4 Loan To Vikings 200,000,000

    Vikings/NFL G4 Contribution Over 3 years 133,333,333 All Figures Actual

    Racino Annual Contribution 20,000,000

    User Fees (UF s) Fan Contribution 25,000,000

    Assumed APR 8%

    Racino One TimeDown Payment

    Vikings/NFL DownPayment

    45,000,000 133,333,333

    Time Principal Applied Interest Racino/UF's Vikings New amountyear 1 741,666,667 801,000,000.36 45,000,000 133,333,333 $622,666,667.36

    year 2 622,666,667 672,480,000.75 45,000,000 133,333,333 $494,146,667.75year 3 494,146,668 533,678,401.17 45,000,000 Operational $488,678,401.17

    year 4 488,678,401 527,772,673.26 45,000,000 Operational 482,772,673.26

    year 5 482,772,673 521,394,487.12 45,000,000 Operational 476,394,487.12

    year 6 476,394,487 514,506,046.09 45,000,000 Operational 469,506,046.09

    year 7 469,506,046 507,066,529.78 45,000,000 Operational 462,066,529.78

    year 8 462,066,530 499,031,852.16 45,000,000 Operational 454,031,852.16

    year 9 454,031,852 490,354,400.34 45,000,000 Operational 445,354,400.34

    year 10 445,354,400 480,982,752.36 45,000,000 Operational 435,982,752.36

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    year 11 435,982,752 1.08 470,861,372.55 45,000,000 0 425,861,372.55

    year 12 425,861,373 1.08 459,930,282.36 45,000,000 0 414,930,282.36

    year 13 414,930,282 1.08 448,124,704.94 45,000,000 0 403,124,704.94

    year 14 403,124,705 1.08 435,374,681.34 45,000,000 0 390,374,681.34

    year 15 390,374,681 1.08 421,604,655.85 45,000,000 0 376,604,655.85

    year 16 376,604,656 1.08 406,733,028.32 45,000,000 0 361,733,028.32year 17 361,733,028 1.08 390,671,670.58 45,000,000 0 345,671,670.58

    year 18 345,671,671 1.08 373,325,404.23 45,000,000 0 328,325,404.23

    year 19 328,325,404 1.08 354,591,436.56 45,000,000 0 309,591,436.56

    year 20 309,591,437 1.08 334,358,751.49 45,000,000 0 289,358,751.49

    year 21 289,358,751 1.08 312,507,451.61 45,000,000 0 267,507,451.61

    year 22 267,507,452 1.08 288,908,047.74 45,000,000 0 243,908,047.74

    year 23 243,908,048 1.08 263,420,691.56 45,000,000 0 218,420,691.56year 24 218,420,692 1.08 235,894,346.88 45,000,000 0 190,894,346.88

    year 25 190,894,347 1.08 206,165,894.63 45,000,000 0 161,165,894.63

    year 26 161,165,895 1.08 174,059,166.20 45,000,000 0 129,059,166.20

    year 27 129,059,166 1.08 139,383,899.50 45,000,000 0 94,383,899.50

    year 28 94,383,899 1.08 101,934,611.46 45,000,000 0 56,934,611.46

    year 29 56,934,611 1.08 61,489,380.38 45,000,000 0 16,489,380.38

    year 30 16,489,380 1.08 17,808,530.81 45,000,000 0 -27,191,469.19

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    $50,000,000

    The dollar amount in which the price for a new stadium inc reases eve ryyea r we delay buildin g a Viking s stadium

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    Why Invest?Major metropolitan community with a balance between spo rts and the a rts

    Encoura g e community and youth athletics Childhood obesity is at an all time hi g h

    Peripheral financial benefit fo r the business community-Leade rs like Doug Bake r, Wheelock Whitney and US Bank CEO a gr ee-Will create a b roade r tax base that will inc rease revenues to the State of Minnesota whichcan be reinvested back into the community

    Precedence has shown du ring difficult economic times the Gove rnment has pa rtnered with businesscommunity to spur economic development and c reate jobs

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    Multi Purpose Stadium for the CommunityMinnesotas Rec-Room

    Metrodome is currently used fo r over 500 non-NFL events spanning over 300 days each yea r

    In 2009, there we re 330,900 people who attended those 500+ events1 million total annual visitors, over 40% of which a re f rom outside the 7county metro a rea

    In 2009, The Metrodomes non -NFL eventsgene rated $ 1,63 8 ,360 inrevenue

    The Peoples Stadium needs a roof fo r community events

    All Data This Slide Courtesy of MSFC

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    O ther Revenue Sources:Analysis of a new Vikin g s Stadium shows it would contribute$1 45 million annually to the Minnesota business community12

    Annual tax revenues du ring three yea r construction phase isprojected at $ 33,190,000 132010 Supe r Bowl in Miami gene rated ove r $300 million for Florida in one week 1 4

    New NFL stadiums have a p recedence of hostin g Supe r BowlHosting NCAA Final Four gene rates close to $ 1 million15

    $30 Million in commerce fo r host business communityHosting community events at the new stadiumThis project has an estimated $ 1 .4 Billion economic output for the state of Minnesota 16

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    JO BS!!

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    Stadium PlanJob Creation:

    New Viking s stadium construction would create 7 ,500 construction jobs andothe r trade Jobs1 7

    Additional 5, 400 jobs would be c reated as indi rect result17

    3,000 more jobs would be needed fo r ope rations and upkeep ofShakopee stadium afte r construction1 8Racino would c reate 500-1,000 new jobs at Cante rbury Pa rk ramping upover three yea rs19

    Racino would c reate estimated 5,000- 8 ,000 new a gr icultural jobs ac ross thestate 20

    Cante rbury Pa rk will create additional hotels and retail to accommodateadditional comme rce and visito rs as a result of the stadium

    Total jobs c reated ac ross Minnesota as a result of new Viking s stadiumpa rtnered with Racino is 20,000-23,000 .

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    Short term Jobs(projected ) Job O rigination

    7 ,500 Construction jobs over 3 yea r pe riodLong term Jobs(projected )

    3, 400 Permanent ope rational jobs fo r suppo rting stadium

    1,000 Cante rbury Pa rk over 3 yea rs from Racino

    7 ,100 Agr icultural and Ho rse fa rm jobs created f rom Racino

    21,000 Total number of created jobs

    Jobs Created as a Result of New Vikings Stadium:

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    Legislative Resources:

    Leg islative history of the Minnesota Vikin g s:

    http://www.le g .state.mn.us/l r l/issues/football.aspMetropolitan Spo rts Facilities Commission

    www.msfc.com

    SavetheVikes.o rg www.SavetheVikes.o rgMinnesota Momentum www.MinnesotaMomentum.comConventions, Spo rts and Leisure www.cslintl.com

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    Contact your Lawmakers asking them tosupport the Shakopee Stadium Bill!

    www.SavetheVikes.org/Huddle

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    A PPE NDIX

    1 . Metrodome Next plan is the stadium desi g n commissioned by the Metropolitan Spo r tsFacilities Commission(MSFC) in coordination with the Minnesota Viking s. It was releasedto the public on Decembe r 1 7 , 2009 . The plan was desi g ned by Bryan Trubey of HKSSpor ts & Enter tainment. HKS desig ned the Dallas Cowboys and Indianapolis Coltsstadiums. A copy of this can be obtained by contactin g the MSFC or Cory Merr ifield.

    2 . Cost of the stadium is $87 0 million dollars as of Sp ring 2010 . The desig ner statedduring the p resentation on Decembe r 1 7 , 2009 that the cost of the stadium willincrease by $ 50 million dollars by waitin g until 2011 to be g in construction. Costestimation was pe rformed by Mo r tenson Construction. Mor tenson Construction has sinceshaved down costs to whe re current fig ures a re between $87 5-900 million depending on club level accomodations.

    3 . Estimated annual tax revenues as a di rect result of the Minnesota Viking s is $32 .2 million as outlined by Conventions, Spor ts and Leisure (CSL) analysis from their EconomicImpact study. Specific b reakdown of the Viking s annual tax cont ribution can be foundon pa ge 6 of this repo r t.

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    A PPE NDIX

    4. Viking s have publicly offe red to mana ge ope rations and cove r ope rationalcosts at Arden Hills site. This same a rrangement could be made at theShakopee site.

    5 . Source: CSL NFL Stadium Funding Summary repo r t commissioned by the MSFC.Soft copy unavailable , ha rd copy available via Co ry Merr ifield upon request.

    6 . Fig ures made available f rom MN State Lotte ry Dept. fo r Viking s scratch game(Lottery # 6 82 ). Viking s scratch game went into ci rculation on July 20, 2010 .Repo r t ran on Janua ry 5, 2011 . Avera ge monthly contribution afte r ope rational expense and winne r pay -out ranges between $ 350,000-$4 50,000 monthly profits. When multiplied by 12 months that creates $4 -5 million in annual contributions. Special exemption may need to be d rafted fo r this scratch off to redi rect funds f rom the Gene ral Fund and the Conse rvationFund to be applied towa rd stadium debt. Soft and ha rd copy of the repo r tavailable upon request.

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    A PPE NDIX

    7. Adding a $ 5 .00 ticket surcha rg e to 65,000 tickets sold fo r 10 g ames annually c reates$3,250,000 to be put towa rd stadium fund. This will increase the cost of admission fo r theave ra g e family of fou r by app roximately 5 pe rcent, which isreasonable. It is also possible toscale the ticket su rcha rg e by seatin g cha rt, meaning the bette r the seat , the hig her thesurcha rg e.

    Example: The ticket surcha rg e fo r $125 seats would $ 15, whereas the su rcha rg e fo r $7 5 seats would be $ 2 .

    This could be done in the event the re a re conce rns rega rding putting the cost of attendance

    out of reach fo r Joe and Jill America, who would like to b ring Bobby and Sally to a g ame.

    8. Stadium naming rig hts for Metrodome Next a re p rojected at $ 1 4 million annually. The Viking sreceiving $6 million (40 pe rcent of $ 1 4 million) isrelative to thei r contribution of 4 3 pe rcentof the ove rall cost. Analysis of p rojected namin g rig hts value was conducted by CSL in thei r Decembe r 1 7 , 2009 repo rt to Bill Lester and the Met ropolitan Spo rts Facilities Commission(MSFC) titled Comparison of Potential Met rodome Development Scena rios. Web copy of thisrepo rt is not available. Ha rd copy of this repo rt is available via Co ry Merr ifield upon request.

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    A PPENDIX9 . Fig ures based on 2009 actual data acqui red f rom the MSFC on concessions sales at

    Viking s games only. 2010 concession data will be available Feb rua ry 2011 . Concessiongr oss revenues as p rojected by the Compa rison of Potential Met rodome Development

    Scena rios for Metrodome Next a re $ 10,190,000 with net revenues of $4 ,5 80,000 . Byincluding a 5 pe rcent surcha rg e added to the 6 .87 5 pe rcent sales tax concessions wouldhave a 12 pe rcent ma rk-up. The diffe rence between the two would gene rate just ove r $500,000 annually. Soft copy of the MSFC 2009 actual data is available. Ha rd copy ofthe CSL repo r t is available.

    10 . In 2001 WI DOT instituted a pe rsonalized G reen Bay Packe rs License Plate Progr am.Since 2003, this progr am (afte r licensing and ope rating expenses) has gene rated anave ra ge of $4 1 4 ,511 annually. The State of Wisconsin has a population of 5,65 4 ,774(36% between the a ges of 1 8-65 ). The State of Minnesota has a population of 5,266,21 4(35% between the a ges of 1 8-65 ). Given those facts it is reasonable to ext rapolate thatwith a slig ht p rice increase ove r the WI DOT p rogr am MNDOT could gene rate $ 500,000 annually to put towa rd stadium financing .

    11 . Fig ures cour tesy of Racino Now, Cante rbury Pa rk CEO, Randy Sampson and fo rmer SenateMinority Leade r, Dick Day. Fig ures we re confirmed by the Dept. of Revenue. This has alsobeen validated by the state of Minnesota resea rch team.

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    A PPENDIX

    12 . According to the CSL economic analysis repo rt on Metrodome Next , the adjusted di rectconsumer spending as a result of building a new stadium and keepin g the Viking s in

    Minnesota is $ 1 45,100,000 annually (See pa ge 16 of repo r t). The ave ra ge Viking s fanwill spend $ 10 7 outside of the stadium befo re and afte r a Viking s game (See pa ge 13 ofrepo rt). A sig nificant po r tion of the di rect spendin g orig inates f rom outside of the locala rea (See pa ge 15 of repo r t).

    13 . According to the CSL economic analysis repo r t on Metrodome Next , the di rect tax revenue

    to the State of Minnesota as a result of construction spending, employee income tax andrelated sales tax is $ 33,190,000 annually ove r the three -yea r construction period (Seepa ge 4 of repo r t). This is in addition to the Viking s direct tax revenue , not instead of.

    1 4. Fig ures cour tesy of the Spor ts Mana gement Resea rch Institute.

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    A PPE NDIX

    15 . Financials obtained f rom the MSFC rega rding the 2009 NCAA Final Four event inMinneapolis, MN at the Met rodome.

    16 . According to pa ge 4 of the CSL economic analysis repo r t on Metrodome Next , the $7 3 4million of construction spending taking place in the State of Minnesota is estimated togene rate app roximately $ 1 .4 billion in total output du ring the construction period. Thislevel of economic activity is estimated to suppo r t 13, 400 jobs with total pe rsonalea rning s of app roximately $ 5 77 million.

    1 7. According to pa ge 4 and 5 of the CSL economic analysis repo r t on Metrodome Next , toprovide an additional unde rstanding of the potential jobs impact du ring the constructionphase , an estimate of the numbe r of on-site construction jobs that would be c reated bythe stadium reconstruction project was developed by rep resentatives of Mo r tensonConstruction. The estimate was p repa red specifically fo r the p roposed Met rodome Nextproject based on the fi rms previous expe rience with majo r stadium construction projects, including Targ et Field and TCF Bank Stadium. Mo r tenson estimates that app roximately

    8 ,000 trades people would be needed du ring the construction phase.

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    A PPE NDIX

    1 8. According to pa ge 5 of the CSL economic analysis repo r t on Metrodome Next , theong oing ope rations of the stadium and the Vikin g s totals app roximately $ 1 45 million

    annually, which in turn gene rates app roximately $ 2 75 million of total annual outputand $ 106 million in annual personal ea rning s and suppo r ts app roximately 3, 400 jobs.Upwa rds of 90% of these impacts a re estimated to be att ributable to Vikin g s-relatedactivities, with the remainde r resulting from other events and activities assumed to beheld at the stadium. Specifically , app roximately $ 2 47 million of the $ 2 75 million inannual output and 3,000 of the 3, 400 jobs suppo r ted a re estimated to result fromViking s-r elated activities.

    19 . Source cour tesy of Cante rbury Pa rk CEO, Randy Sampson and boa rd membe r Ca rinOffe rman. Additional info rmation can be found at www.RacinoNow.com

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    A PPE NDIX20 . According to analysis and resea rch from Racino Now the state of Pennsylvania has

    added ove r 44 ,000 jobs in the a gr icultural and equine indust ry. Excerpt f rom their site:

    Pennsylvania's Secretary of Agriculture Russell C. Redding recently issued a report that shows Racino legislation, passed in Pennsylvania in 2006 (Act 71), has created 44,000equine-related jobs and boosted the overall value of the equine industry in Pennsylvania by$3.4 billion over the past four years. Redding said, " Act 71 [has] encouraged investment innew farms, breeding stock, equipment, veterinary services and agricultural production,strengthening Pennsylvania's agricultural community."

    PA has added six Racinos since 2006, creatin g 44 ,000 jobs. MN has 50+ horse fa rmswhich are in di re need of hi ring vete rinarians, traine rs, labo rers and vendo rs for feed , transpo r tation , etc. MN horse fa rms have been st rugg ling due to the dec rease inattendance at Cante rbury Pa rk which is a result of increases in casinos in MN.

    Using a fo rmula of 44 ,000 jobs divided by six Racinos (7 ,333 jobs pe r Racino) you cansafely fo recast 5,000- 8 ,000 jobs created ac ross MN from the addition of one o r twoRacinos.

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    Stadium Plan

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