Exhibit_B_Volusia_County_Sports_Complex_Final_Report_5-3-24_partnership.pdf

Volusia County Sports Facility Market & Complex Analysis

Feasibility, Pro Forma Study

Presented to:

Volusia County

May 3, 2024

TABLE OF CONTENTS

------------- Executive Summary

Chapter 1 Economic, Demographic & Tourism Analysis

Chapter 2 Local & Regional Competitive Sports Facilities Analysis

Chapter 3 BMX Local & Regional Market Analysis

Chapter 4 Tournament Opportunity Analysis

Chapter 5 Sports Tourism Facilities Case Studies

Chapter 6 Support Amenities: Hotel & Restaurant Analysis

Chapter 7 Implications & Recommendations

Chapter 8 Demand & Financial Analysis

Chapter 9 Economic, Fiscal & Employment Impact Analysis

Volusia County Sports Complex Study Executive Summary | © Hunden 2024

VOLUSIA COUNTY SPORTS – EXECUTIVE SUMMARY

The Hunden Partners (Hunden or Team), along with sports facility experts from Sports Facilities Companies (SFC or SFA) and architects from Convergence Design (CD), was engaged to conduct a market demand, financial feasibility, and pro forma study of a new multi-faceted sports complex (Complex or Project) in Volusia County, Florida to elevate the quality of life for residents and induce more visitation to the county through sports tourism. Hunden analyzed three markets as part of this study which includes a traditional sports complex with indoor and/or outdoor components and a BMX track. This report includes the current supply and demand for each of the proposed sports uses and provides recommendations as to the optimal site, program, layout and other key factors of the Project’s competitiveness.

This executive summary summarizes the Project, key findings and demand and financial projections for the Project over a 30-year period.

Project Overview

Hunden analyzed two sites under consideration by the County, which includes the expansion of existing facilities at the PFC Emory L. Bennett Veterans Memorial Park and new development on the Tomoka Farms site, which was recommended for a new motocross track. There were other sites initially considered, however moving forward with a county-owned property is recommended as the best plan of action.

The following figure is a map locating the Project’s potential sites within Volusia County.

Figure 1

For the two sites analyzed, Hunden considered optimal programming with traditional sports components, a BMX track and motocross track. The motocross portion of the study was completed separately per request of Volusia County from the traditional sports and BMX track, otherwise known as market one (1) and market two

(2) which is covered in this report. Accessibility with major highways are critical for the success of tournament facilities and prove to be crucial for regional tournaments that attract a majority of drive-in visitors.

Methodology

Hunden’s methodology for evaluating the market opportunity for a sports complex and BMX track included the following steps:

§ Evaluated the sports market to determine what opportunities exist in the local and regional area for new fields, courts, and tracks as well as to determine the level of competition that exists among other facilities across the region.

§ Analyzed the economic and demographic data that indicate the extent to which the local and regional market area supports the proposed Project.

§ Interviewed potential users of the facility to determine their venue needs, ranging from local event holders to regional and national events that will draw attendees. Full list of interviewees can be found at the end of the Executive Summary.

§ Profiled national and other comparable facilities.

§ Estimated opportunities for ancillary revenues from a variety of sources.

Key Findings

The following bullets summarize the key findings and headlines. In order to assess the viability of any project and make informed recommendations, there are key elements that must be considered.

§ Facility and Site Needs. General site parameters for a successful youth sports facility include availability of land for current and potential future development, accessibility, proximity to hotel/restaurant nodes and flat topography. Roughly 15-20 acres are typically needed for an indoor facility, depending on future expansion and parking. For a large outdoor complex, field count dependent, usually over 100 acres is needed.

§ Tournament Needs. There are factors to consider for a facility and destination to compete in the sports tourism landscape. Based on the current regional landscape, there is a minimum of eight (8) to 12 turf fields / diamonds needed for a tournament caliber facility.

§ The Supply & Demand. Although there is a significant regional supply of youth sports facilities, there is significant demand for additional, quality turf fields to complement existing tournament facilities. Currently all major tournaments are being held at a select few facilities within the region. Tournament operators noted the need for additional facilities based on the demand they continue to see. There is a significant local demand given the lack of practice facilities within the local market in addition to the tournament landscape.

§ Case Studies. Flexibility is a major ingredient to the success of youth sports developments. The ability to host a diverse mix of sporting events, and potentially non-sporting events will enhance the chances of a facility’s success. The best in-class regional and national sports tourism facilities focus on creating premier assets for a variety of sports through flexible spaces such as outdoor turf fields and outdoor flex fields. By focusing on flexibility, facilities and destinations are able to diversify their customer base and potential visitors, better accommodate changing trends, and mitigate seasonality.

§ Facility Programming & Proximity. The current BMX track in Daytona provides obstacles for the development of a new BMX facility given the proximity to the proposed site. In order to accommodate a new demand segment, tracks are recommended to be a 30-minute drive time apart, which is the approximate travel time with the Project site and existing track in Daytona.

Additionally, based on conversations with USA BMX there is market opportunity to grow the BMX supply within Volusia County and the Bennett Park site provides the local and regional market with a new facility that could cater to larger regional and national events compared to the current Daytona BMX facility, which would be able to continue its current operations and event landscape. Given the location of the Bennett Park site in Volusia County, a new track would cater to the needs of locals that currently have to drive 45 minutes to an hour to the existing BMX track. It is recommended that if a new BMX facility is developed, that the existing Daytona BMX facility stays open for local utilization and its own respective races.

§ Premier Race Facility. There would need to be a new development to have a ”premier race facility” within Volusia County that offers a more high-end experience and destination appeal for larger events. There is an opportunity for a new development to partner with USA BMX to ensure it is done properly, which would vastly increase its potential of hosting events. With a new, premier facility it could host regional, state, and national competitions that will draw non-local visitors to the community. Florida state races have become larger than national events which means facilities in Florida could capitalize on more visitation than tracks in other states. It is not recommended to expand the current Daytona Beach track based on conversations with USA BMX since the organization has plans to grow its footprint of physical tracks within Florida. If a new BMX track does not get built at Bennett Park, it is likely that a new track would be built in a proximate city and potentially competing market.

SWOT Analysis

Strengths

§ Growing Population. Volusia County and the surrounding regional area in Florida have experienced growth that is notably higher than the United States since 2010 and is expected to continue through 2028, with growth rates surpassing the national average at the state, county and city levels.

§ Central Location in Florida. The interstate access via I-4 and I-95 makes it easier for visitors to reach the county and specifically the Project sites due to its location off the interstate. Regional drive-in access is crucial for the success of tournament complexes, specifically in Florida.

§ Strong Local & Regional Demand for Sports. Several community stakeholders interviewed confirmed there is a large amount of recreation and competitive sports participants in the county.

§ County-Owned Land Availability. These facilities are typically developed on public land due to limited land availability. Multiple potential sites with county-owned land.

§ Existing BMX Facility. The current BMX facility in Daytona Beach, Florida shows proven demand and operational experience at the county-level.

Weaknesses

§ Lack of Quality Sports Facilities. Volusia County currently has a limited supply of facilities for recreation and competitive sports activities. There are a handful of facilities like Ormond Beach Sports Complex, Rob Sullivan Community Park, Dewey O. Boster Sports Complex and the PFC Emory L. Bennett Veterans Memorial Park that have the capacity to serve a local sports tournament because of the number of fields offered; however, these facilities do not meet current tournament conditions standards and are limited in availability for the local sports organizations.

§ Limited Hotels & Commercial Development. Surrounding the Project sites, there are limited hotels and commercial development within a five-mile radius, which ultimately hinders the potential for national tournaments, visitor spending and overall economic impact. It is likely that hotel room nights would occur outside of Volusia County given the current hotel supply in the area.

Opportunities

§ Tournament-Grade Sports Facility. The strengths of the market and increasing demand present the opportunity for tournament-grade outdoor and potential indoor sports facility within Volusia County.

§ Complement Regional Facilities. There are a handful of established, regional sports complexes within Central Florida that present opportunities for hosting larger, national tournaments in conjunction with the current facilities. Specifically, the Bennett Park site could co-host tournaments with Boombah Sports Complex in Seminole County when the threshold for number of fields is higher. Based on Hunden’s conversation with Boombah, the major tournaments that require overflow fields occur during the spring months of March and April and the fall months of October and November. The need for co-hosting tournaments occurs approximately four to eight times per year.

§ Public-Private Partnerships. There are opportunities for private sector partnerships with tournament operators for the recommended Project’s programming.

§ New BMX Facility. There is opportunity to expand the current BMX footprint within Volusia County based on market demand and conversations with USA BMX. The organization is looking to expand its footprint of 15 current BMX facilities to 25 facilities by 2030.

§ Commercial Development. There is currently limited commercial development or support amenities in proximity to the Bennett Park site. There is opportunity for future commercial development such as hotels and restaurants to capitalize on the increased visitation generated by the Project.

§ Increased Quality of Life. Sports complexes often serve as community hubs where people gather for events and games and as opportunities for youth development through organized sports leagues and programs. In addition to an improved quality of life for residents, a sports complex can attract visitors for regional tournaments and events, which leads to increased tourism, spending at local businesses, and potential job opportunities. It is projected that local utilization would take place during the week from Monday through Thursday with tournaments primarily taking place on the weekends.

KHively Highlight

Threats

§ Strong Regional Competitive Supply. Other destinations in Florida have established sports complexes of their own that are seen as possible threats to a potential sports complex development in Volusia County from a tournament perspective. Many of them cater to a regional segment of sports tournaments and some even cater to national tournament capacity.

§ Proposed Facilities. There are multiple indoor facilities either proposed or planned developments in neighboring counties and similar destination cities that limit the potential for an indoor sports tournament facility in the immediate future. There are a few outdoor facilities proposed; however, the demand for outdoor playing surfaces is greater and presents a higher threshold for the quantity of facilities from a tournament operator standpoint.

Recommendations

The Project is recommended to be a two-phased project that will involve an outdoor sports development in the first phase and an indoor sports facility as the potential second phase.

Table 1

The above table details the recommendations for market one, traditional youth sports. Based on the analysis of the youth sports market in the local and regional area, and interviews with market experts, tournament organizers and other stakeholders, Hunden recommends the development of an outdoor complex with the potential Phase II indoor facility. Hunden recommends eight (8) multi-purpose turf fields, which are diamonds with the configuration of rectangle fields in the outfield. Hunden recommends an additional four (4) multi-sport rectangle grass fields in addition to the turf fields. Based on industry standards, this would warrant approximately 1,200 parking spaces and seating options for spectators. This would allow for tournament capabilities at the regional and national level.

Volusia County Sports - Market One Detailed Recommendations

Feature Unit Unit Size Max Parking

Phase I (High Priority) Total Outdoor Multi-Sport Artificial Turf Fields (Lighted) Fields 8 800

Soccer Fields 8 -- Softball/Baseball Diamonds 8 --

Seating 800 -- Grass Surfaces

Multi-Sport Rectangle Grass Fields 4 400 Seating Seats 400 --

Outdoor BMX Track Phase II (Future Priority)*

Basketball/Volleyball (Hardwood) Courts

Total Parking 1,200

*Phase II Indoor Contingent on Proposed / Planned Regional Developments Source: Hunden Partners, SFA, Convergence Design

There is a potential for a Phase II indoor facility dependent on the construction of local and regional sports complexes, which details are yet to be disclosed.

Hunden was presented two potential sites to determine the optimal location. The Project for youth sports and a BMX track is recommended to be located at Bennett Park site. BMX tracks in Florida require approximately 100 permanent parking spaces for daily use with 600 additional overflow spaces during Florida State Series races which are often supplemented through utilizing nearby open fields, or could be accommodated by using the 1200 parking spaces recommended in Phase I. Additionally, these tracks typically provide spectator / bleacher seating with approximately 100 seats for daily use. Based on the projected attendance for regional races, additional temporary seating that can accommodate roughly 2,000 spectators would be needed for these events.

The following figure shows the recommended site plan for the Project.

Figure 2

The figure above shows the layout of the outdoor and indoor complexes, where the outdoor fields are in the north and western portion of the Project site and the potential indoor facility is in the southern center. The Project includes the following features:

§ Eight (8) multipurpose artificial turf fields that have lighting and can be converted into diamonds.

These fields are shown in dark green in the figure above.

§ Four (4) multipurpose grass fields that are shown in light green in the figure above. These uses are recommended in Phase I of the Project.

§ Future Indoor Facility that is contingent on the approval and development of proposed facilities in the region.

§ Seating for the outdoor uses and parking for the complex.

The Project is programmed to host multiple teams and sports for practices and games simultaneously. The field and court space make it an optimal location to host large-scale tournaments or smaller tournaments for multiple sports at once.

Project Costs

The following table provides a breakdown of total Project costs provided by Convergence Design.

Table 2

The above table details high-level cost estimates from Convergence Design based on order of magnitude and respective quantity. It is recommended that the Project is built in a phased approach with the priority put on the outdoor facilities and the indoor facilities contingent on the proposed and planned regional developments.

The recommended programming for the expanded Bennett Park Facility is projected to cost approximately $41.5 million, only including the outdoor recommendations. This is largely attributed to the construction of the multipurpose artificial fields, which are more expensive upfront but require less maintenance than natural grass with more projected use. Convergence Design allotted for a generous sitework allowance in the budgeted construction costs but did not specifically include a line item for wetlands mitigation. The intent with the recommended concepts plans was to avoid designated wetlands to the extent possible.

Demand & Financial Projections

Based on market research and industry interviews conducted by Hunden and SFC, demand and financial projections were made for the Project’s youth sports complex component that covers the traditional outdoor sports and BMX facility.

Traditional Outdoor Sports

The following table shows the expected number of events and attendance at events for the traditional outdoor sports recommended facility over the first 30 years.

Cost Estimates - Volusia County Sports Facility Bennett Park Project Site

Qty. Item Construction Cost Soft Cost Project Cost 8 Multipurpose Artificial Turf Field (Lighted) $19,577,160 $4,894,290 $24,500,000 4 Grass Rectangular Field $2,979,200 $744,800 $3,700,000

800 Surface Parking $2,400,000 $600,000 $3,000,000 22 Ft. Internal Drive $1,629,386 $407,347 $2,000,000 1 BMX Track $2,000,000 $500,000 $2,500,000 1 Sitework, Grading & Drainage $3,125,000 $781,250 $3,900,000 5 Restroom/Concession Building $1,524,000 $381,000 $1,900,000

Total Outdoor Facilities $33,234,746 $8,308,687 $41,500,000

Source: Convergence Design

Table 3

The Project (outdoor sports) is expected to host 16 total events in Year 1 that spans across 34 event days for the traditional outdoor sports component of the Project. By stabilization in Year 5, the Project is projected to host 35 events across 74 event days. Hunden assumed a ramp-up period for the Project based on comparable facilities in the state and conversations with tournament organizers. The majority of events are projected to come from baseball and softball tournaments given the regional demand.

The average attendance numbers for tournaments are based on industry averages and account for the number of participants within a respective tournament and estimated spectators expected to attend. Hunden projects 1.4 spectators for every participant for soccer and softball tournaments and 1.3 spectators for baseball and other sports tournaments. In Year 1, the Project is expected to attract over 450,000 visitors for daily rentals, tournaments, and event activities. At stabilization in Year 5, the Project is expected to attract more than 590,000 visitors to the complex. The daily rentals are expected to be generated from local demand and sports organizations that are in need of practice or recreational space. It is common for facilities such as the Project to partner with a local club or organization that would be a tenant during the week with tournaments taking place on weekends.

The following table details proforma for the traditional outdoor sports portion of the Project.

Outdoor Sports Complex Projection & Proforma - Volusia County, FL Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr 20 Yr 30

Events by Type Soccer Tournaments 4 5 5 6 8 8 8 8 8 8 8 8 Softball Tournaments 2 3 4 6 9 9 9 9 9 9 9 9 Baseball Tournaments 6 7 8 9 12 12 12 12 12 12 12 12 Other Sports Tournaments 4 4 5 6 6 6 6 6 6 6 6 6 Total 16 19 22 27 35 35 35 35 35 35 35 35

Event Days by Type Soccer Tournaments 10 13 13 15 20 20 20 20 20 20 20 20 Softball Tournaments 4 6 8 12 18 18 18 18 18 18 18 18 Baseball Tournaments 12 14 16 18 24 24 24 24 24 24 24 24 Other Sports Tournaments 8 8 10 12 12 12 12 12 12 12 12 12 Total 34 41 47 57 74 74 74 74 74 74 74 74

Average Attendance by Event Type Soccer Tournaments 5,616 5,616 5,616 5,616 5,616 5,616 5,616 5,616 5,616 5,616 5,616 5,616 Softball Tournaments 2,688 2,688 2,688 2,688 2,688 2,688 2,688 2,688 2,688 2,688 2,688 2,688 Baseball Tournaments 2,160 2,160 2,160 2,160 2,160 2,160 2,160 2,160 2,160 2,160 2,160 2,160 Other Sports Tournaments 1,080 1,080 1,080 1,080 1,080 1,080 1,080 1,080 1,080 1,080 1,080 1,080

Total Attendance by Event Type Daily Rentals 408,960 449,856 489,600 489,600 489,600 489,600 489,600 489,600 489,600 489,600 489,600 489,600 Soccer Tournaments 22,464 28,080 28,080 33,696 44,928 44,928 44,928 44,928 44,928 44,928 44,928 44,928 Softball Tournaments 5,376 8,064 10,752 16,128 24,192 24,192 24,192 24,192 24,192 24,192 24,192 24,192 Baseball Tournaments 12,960 15,120 17,280 19,440 25,920 25,920 25,920 25,920 25,920 25,920 25,920 25,920 Other Sports Tournaments 4,320 4,320 5,400 6,480 6,480 6,480 6,480 6,480 6,480 6,480 6,480 6,480 Total 454,080 505,440 551,112 565,344 591,120 591,120 591,120 591,120 591,120 591,120 591,120 591,120

Source: Hunden Partners

Table 4

In Year 1, the outdoor sports complex is projected to generate nearly $1.3 million in revenues and $1.7 million in expenses for a net operating deficit of $380,000. In order to remain conservative, Hunden analyzed comparable sports complexes’ operating models to understand the allowance for reinvestment and capital expenditures necessary for a publicly owned facility. With that, the outdoor sports complex is projected to operate at a loss upon stabilization but will prove to be a successful community asset that generates significant economic impact and local use for the area. Over time, sports complexes develop a consistent and stable tournament model, which leads to increasing operating margins.

BMX Facility

Hunden performed demand and financial projections, or a pro forma analysis, for a new BMX facility at the Bennett Park site. Hunden in collaboration with SFC, analyzed comparable BMX facilities in Volusia County and the State of Florida that would serve as a baseline for performance for a new facility at Bennett Park, in addition to conducting stakeholder interviews with USA BMX and track operators that is reflected in the following section.

The following table details the event and attendance projections for the BMX portion of the Project.

Outdoor Sports Complex Projection & Proforma - Volusia County, FL Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr 20 Yr 30

Revenue (000s) Rental Revenue 999$ 1,153$ 1,303$ 1,401$ 1,553$ 1,600$ 1,648$ 1,697$ 1,748$ 1,800$ 2,419$ 3,251$ Net Concessions/Catering 33% 194$ 222$ 245$ 265$ 302$ 306$ 310$ 314$ 318$ 323$ 375$ 446$ Advertising & Sponsorship (net) $60 60$ 62$ 64$ 66$ 68$ 70$ 72$ 74$ 76$ 78$ 105$ 141$ Other 3% 38$ 43$ 48$ 52$ 58$ 59$ 61$ 63$ 64$ 66$ 87$ 115$ Total 1,291$ 1,480$ 1,660$ 1,783$ 1,980$ 2,034$ 2,090$ 2,147$ 2,206$ 2,267$ 2,987$ 3,954$

Expenses (000s) Salaries, Wages & Benefits 914$ 941$ 969$ 998$ 1,028$ 1,059$ 1,091$ 1,124$ 1,157$ 1,192$ 1,602$ 2,153$ General & Admin $82 82$ 84$ 87$ 90$ 92$ 95$ 98$ 101$ 104$ 107$ 144$ 193$ Utilities $165 165$ 170$ 175$ 180$ 186$ 191$ 197$ 203$ 209$ 215$ 289$ 389$ Sales, Advertising & Marketing 5.0% 65$ 74$ 83$ 89$ 99$ 102$ 104$ 107$ 110$ 113$ 149$ 198$ Supplies, Repairs & Maintenance $138 138$ 142$ 146$ 151$ 155$ 160$ 165$ 170$ 175$ 180$ 242$ 325$ Insurance 3.0% 30$ 36$ 41$ 46$ 52$ 56$ 59$ 63$ 66$ 70$ 127$ 230$ Management Fee (% of Revenue) 10.0% 129$ 148$ 166$ 178$ 198$ 203$ 209$ 215$ 221$ 227$ 299$ 395$

CAPEX $110 110$ 113$ 117$ 120$ 124$ 128$ 131$ 135$ 139$ 144$ 193$ 259$

Reserves 3.0% 39$ 44$ 50$ 54$ 59$ 61$ 63$ 64$ 66$ 68$ 90$ 119$ Total 1,671$ 1,753$ 1,835$ 1,906$ 1,994$ 2,055$ 2,117$ 2,182$ 2,248$ 2,317$ 3,135$ 4,261$

Net Operating Income (380)$ (273)$ (175)$ (123)$ (14)$ (21)$ (27)$ (34)$ (42)$ (49)$ (148)$ (307)$

Table 5

The Project (BMX) is projected to primarily host practice days during the week and events on the weekends.

The Project is expected to be open to the public for practice use during the week, four days per week, for an average of approximately 150 days per year upon stabilization in Year 5. This allows for necessary maintenance throughout the week to ensure that the track is not overused. Based on conversations with similar facilities and USA BMX, the Project is projected to host three (3) major events in Year 1 and reach four

(4) events per year by stabilization in Year 5. Regional and national BMX events are projected at two (2) days per event given the local and regional demand for these larger events that span across multiple days. There are some cases, where national events span across three (3) days, however, Hunden projected the average number of events and event days to remain conservative.

The major events will play a key role in generating revenue for the facility, with practice hours catering to the local market. Hunden projected the number of average event attendance based on industry averages and event promoter feedback from USA BMX.

The following table details a summary of the BMX portion of the Project’s expected annual revenues and expenses over 30 years.

Volusia County - BMX Projections

Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 10 Yr 20 Yr 30 Events by Type

BMX Practice (Open to Public) 105 115 138 150 150 150 150 150 Local BMX Race 80 85 90 100 100 100 100 100 Regional and National BMX Event 3 3 3 4 4 4 4 4 Total 188 203 231 254 254 254 254 254

Event Days by Type BMX Practice (Open to Public) 105 115 138 150 150 150 150 150 Local BMX Race 80 85 90 100 100 100 100 100 Regional and National BMX Event 7 7 7 8 8 8 8 8 Total 192 207 235 258 258 258 258 258

Average Attendance by Type BMX Practice (Open to Public) 60 64 68 70 75 75 75 75 BMX Practice (Season Pass Holders) 11 14 15 17 18 18 18 18 Local BMX Race (Riders) 75 78 80 90 95 95 95 95 Local BMX Race (Spectators) 150 156 160 180 190 190 190 190 Regional and National BMX Event (Riders) 650 680 700 720 750 750 750 750 Regional and National BMX Event (Spectators) 1,950 2,040 2,100 2,160 2,250 2,250 2,250 2,250

BMX Events (Total Att) 2,896 3,032 3,123 3,237 3,378 3,378 3,378 3,378

Total Attendance by Type BMX Practice (Open to Public) 5,166 5,741 7,274 8,015 8,531 8,531 8,531 8,531 BMX Practice (Season Pass Holders Total Visits) 1,134 1,619 2,110 2,485 2,719 2,719 2,719 2,719 BMX Practice (Season Pass Holders) 59 84 110 130 142 142 142 142 Local BMX Race (Riders) 6,000 6,630 7,200 9,000 9,500 9,500 9,500 9,500 Local BMX Race (Spectators) 12,000 13,260 14,400 18,000 19,000 19,000 19,000 19,000

Local BMX Race (Total Attendance) 18,000 19,890 21,600 27,000 28,500 28,500 28,500 28,500 Regional and National BMX Event (Riders) 2,178 2,278 2,345 2,880 3,000 3,000 3,000 3,000 Regional and National BMX Event (Spectators) 6,533 13,668 14,070 17,280 18,000 18,000 18,000 18,000

Regional and National BMX Event (Total Attendance) 8,710 15,946 16,415 20,160 21,000 21,000 21,000 21,000 Total Attendance 33,010 43,196 47,399 57,660 60,750 60,750 60,750 60,750

Table 6

In Year 1, the BMX portion of the Project is projected to generate $440,000 in revenues and $690,000 in expenses for a net operating deficit of $250,000. After the Project reaches stabilization in Year 5, the BMX portion of the Project is projected to generate a net operating income of roughly $24,000 and increases to roughly $57,000 by Year 30.

Impact Projections – Outdoor Sports Complex & BMX Facility

The following table shows the expected number of daytrips, overnight and hotel room nights to be generated by the Project.

Volusia County - BMX Proforma

Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 10 Yr 20 Yr 30 Revenues (000s)

BMX Entry Fee Revenue 238$ 266$ 302$ 379$ 412$ 479$ 646$ 871$ BMX Event - Sponsorship Revenue $24 80$ 83$ 85$ 105$ 108$ 125$ 168$ 226$ BMX Event - Net Concessions 38% 47$ 67$ 73$ 93$ 101$ 117$ 157$ 211$ BMX Event - Parking Revenue 60$ 112$ 119$ 151$ 162$ 188$ 252$ 339$ BMX - Other $14 14$ 14$ 15$ 15$ 16$ 18$ 25$ 33$

Total 440$ 543$ 595$ 743$ 798$ 927$ 1,248$ 1,680$

Expenses (000s) Salaries, Wages & Benefits $346 346$ 357$ 367$ 378$ 390$ 452$ 607$ 816$ General & Admin $45 45$ 46$ 48$ 49$ 51$ 59$ 79$ 106$ Utilities $55 55$ 57$ 58$ 60$ 62$ 72$ 96$ 130$ Repairs & Maintenance $108 108$ 111$ 115$ 118$ 122$ 141$ 189$ 255$

CAPEX $116 116$ 136$ 89$ 111$ 120$ 139$ 187$ 252$

Insurance 6% 14$ 15$ 17$ 22$ 23$ 27$ 37$ 50$ Other $7 7$ 7$ 7$ 7$ 7$ 8$ 11$ 15$

Total 690$ 728$ 701$ 746$ 774$ 898$ 1,207$ 1,623$

Net Operating Income - BMX Operations (250)$ (186)$ (106)$ (3)$ 24$ 29$ 41$ 57$

Table 7

Hunden projects the outdoor sports facility will bring in roughly 10 to 25 percent of the attendees as overnight visitors lodging in hotel rooms or RV parks within Volusia County. Hunden discounted hotel rooms given the Project site and limited lodging accommodations nearby, where it is likely that some visitors will spend the night in Seminole County. Daily rentals are expected to be generated by daytrippers. As for the BMX facility, Hunden projects overnight visitation based on a range 20 to 40 percent of regional and national event attendees that plan to stay in hotel rooms or RV parks within Volusia County and a large portion of riders for local practice and races to be daytrip visitors. In Year 1, the Project is projected to generate 5,200 total room nights, with an estimated 1,200 room nights within Volusia County or 24 percent. Hunden analyzed the proximate hotel supply that is of the quality that is typically sought after by sports teams and visitors to understand the available hotel rooms in Volusia County and those within a 15-minute drive time in Seminole County as well as visitation data from case studies.

The following table shows the summary of impact for the Project, including net new spending, jobs and taxes to Volusia County.

Volusia County Sports Complex Bennett Park - Impact Inputs & Projections Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr 20 Yr 30

% and # Daytrips Daily Rental 408,960 449,856 489,600 489,600 489,600 489,600 489,600 489,600 489,600 489,600 489,600 489,600 Soccer Tournaments 17,297 21,622 21,622 25,946 34,595 34,595 34,595 34,595 34,595 34,595 34,595 34,595 Softball Tournaments 3,978 5,967 7,956 11,935 17,902 17,902 17,902 17,902 17,902 17,902 17,902 17,902 Baseball Tournaments 9,720 11,340 12,960 14,580 19,440 19,440 19,440 19,440 19,440 19,440 19,440 19,440 Other Sports Tournaments 3,888 3,888 4,860 5,832 5,832 5,832 5,832 5,832 5,832 5,832 5,832 5,832 Local BMX Practice and Races 20,035 4,803 6,088 6,715 7,151 7,151 7,151 7,151 7,151 7,151 7,151 7,151 Regional and National BMX Events 4,320 7,909 8,142 9,999 10,416 10,416 10,416 10,416 10,416 10,416 10,416 10,416 Total 468,199 505,385 551,228 564,607 584,936 584,936 584,936 584,936 584,936 584,936 584,936 584,936

% and # Overnights Daily Rental - - - - - - - - - - - - Soccer Tournaments 5,167 6,458 6,458 7,750 10,333 10,333 10,333 10,333 10,333 10,333 10,333 10,333 Softball Tournaments 1,398 2,097 2,796 4,193 6,290 6,290 6,290 6,290 6,290 6,290 6,290 6,290 Baseball Tournaments 3,240 3,780 4,320 4,860 6,480 6,480 6,480 6,480 6,480 6,480 6,480 6,480 Other Sports Tournaments 432 432 540 648 648 648 648 648 648 648 648 648 Local BMX Practice and Races 189 221 282 315 338 338 338 338 338 338 338 338 Regional and National BMX Events 3,310 6,059 6,238 7,661 7,980 7,980 7,980 7,980 7,980 7,980 7,980 7,980 Total 13,735 19,047 20,633 25,427 32,069 32,069 32,069 32,069 32,069 32,069 32,069 32,069

Total Room Nights Generated from the Project Soccer Tournaments 2,583 3,229 3,229 3,875 5,167 5,167 5,167 5,167 5,167 5,167 5,167 5,167 Softball Tournaments 699 1,048 1,398 2,097 3,145 3,145 3,145 3,145 3,145 3,145 3,145 3,145 Baseball Tournaments 1,543 1,800 2,057 2,314 3,086 3,086 3,086 3,086 3,086 3,086 3,086 3,086 Other Sports Tournaments 206 206 257 309 309 309 309 309 309 309 309 309 Local BMX Practice and Races 63 74 94 105 113 113 113 113 113 113 113 113 Regional and National BMX Events 126 147 188 2,659 2,773 2,773 2,773 2,773 2,773 2,773 2,773 2,773 Total 5,220 6,504 7,223 11,358 14,591 14,591 14,591 14,591 14,591 14,591 14,591 14,591

Total Room Nights Generated - Volusia County Soccer Tournaments 646 807 807 969 1,292 1,292 1,292 1,292 1,292 1,292 1,292 1,292 Softball Tournaments 154 231 308 461 692 692 692 692 692 692 692 692 Baseball Tournaments 324 378 432 486 648 648 648 648 648 648 648 648 Other Sports Tournaments 68 68 85 102 102 102 102 102 102 102 102 102 Local BMX Practice and Races 22 26 33 37 39 39 39 39 39 39 39 39 Regional and National BMX Events 38 44 56 798 832 832 832 832 832 832 832 832 Total 1,251 1,554 1,721 2,852 3,605 3,605 3,605 3,605 3,605 3,605 3,605 3,605

Percent of Hotel Room Nights in Volusia County 24.0% 23.9% 23.8% 25.1% 24.7% 24.7% 24.7% 24.7% 24.7% 24.7% 24.7% 24.7%

Table 8

With nearly $900 million in net new spending and $390 million in net new earnings, the Project is estimated to support 219 full-time equivalent jobs over the 30-year time frame shown. Volusia County is expected to experience $4.28 million in sales tax and tourism development tax from the Project, with roughly $16,600 generated in sales tax from the one-time construction impact for a total local tax impact of roughly $4.3 million.

Interview List

Hunden interviewed potential users of the facility to determine their venue needs, ranging from local event holders to regional and national events that will draw attendees. Some of these interviews were held in-person with the remaining conducted virtually via Zoom. The following includes the organizations interviewed as part of this study:

Traditional Sports

§ Stetson FA, Youth League Director § WVAC-Debary Babe Ruth, League Admnistrator

30-Yr. Summary of Impacts - Combined Sports Complex

Net New Spending (millions) Direct $557 Indirect $218 Induced $122 Total $897

Net New Earnings (millions) From Direct $265 From Indirect $74 From Induced $51 Total $390

Net New FTE Jobs Actual From Direct 134 From Indirect 55 From Induced 30 Total 219

Capturable County Taxes (millions) Sales Tax - County (0.5%) $2.8 TDT - County (6.0%) $1.5 Net New County Taxes $4.28

Construction Impact - County Sales Tax (0.5%) $0.02 Capturable Local Total Taxes $4.29

§ New Smyrna Beach Sports Complex, Athletics Manager § USSSA, North Florida Baseball Assistant State Director § AAU Volleyball & Basketball, Florida Director § USA Volleyball, Executive Director/President Florida Region § Boombah Sports Complex, Perfect Game § Orlando North Seminole County Sports, Director of Sports Tourism

Local Users – Traditional Sports

§ City of Deltona, Park & Recreation § City of Orange City, Parks & Facilities Manager § City of Orange City, Development Services Director § City of DeBary, Recreation Manager § City of DeBary, Parks & Recreation Director § County of Volusia, Parks, Recreation & Culture Director § County of Volusia, Recreation Super Intendent § County of Volusia, Recreation Program & Camps § University High School, Athletic Director § West Volusia Athletic Club § West Volusia Tourism Advertising Authority

BMX

§ Daytona BMX, Track Operator § Okeeheelee BMX, President § Sports ETA, Former USA BMX President § USA BMX, Director of Business Development § Oldsmar BMX, Track Operator § St. Cloud BMX, Track Operator

Motocross

§ MotoBros, Owner § Bone Valley ATV Park, Park Manager § On Track School, Director & Founder § Hannah Hodges § Gatorback Cycle Park

Chapter 1 Economic, Demographic & Tourism Analysis

Chapter 2 Local & Regional Competitive Sports Facilities Analysis

Chapter 3 BMX Local & Regional Market Analysis

Chapter 4 Tournament Opportunity Analysis

Chapter 5 Sports Tourism Facilities Case Studies

Chapter 6 Support Amenities: Hotel & Restaurant Analysis

Chapter 7 Implications & Recommendations

Chapter 8 Demand & Financial Analysis

Volusia County Sports Complex Study Chapter 1 | © Hunden 2024

ECONOMIC, DEMOGRAPHIC AND TOURISM ANALYSIS

Local market area characteristics such as population, geographical location, and nearby attractions influence the potential success of youth sports developments. This chapter profiles Volusia County, including an overview of the economic, demographic and geographic characteristics of the market. These characteristics will help to define the strength of the market and potential success indicators for the proposed youth sports facility.

Regional Overview

Florida is the third most populated state in the country, with a current population of over 22 million people.

Volusia County is located in east-central Florida and is part of the Deltona-Daytona Beach-Ormond Beach MSA.

Of the 67 counties in Florida, it is the 11th most populated county.

The following figure provides a regional overview of Volusia County in relation to other major markets in Florida.

Figure 1-1

Volusia County is roughly 100 miles from Jacksonville, the most populated city in Florida, and 48 miles from Orlando, the fourth most populated city in Florida. The county’s proximity to these major markets may aid in inducing dense visitor traffic to the Project site for regional tournaments and events, Local Overview

Deltona, which neighbors Orange city, is the largest city in Volusia County with a population of over 85,000.

Besides Deltona, several of the county’s other most populated cities are located along the coast, including Daytona Beach, Port Orange, and Ormond Beach. The Project site(s) is strategically located in some of the county’s most active areas, allowing for an optimal site location in the county.

The following figure provides a local overview of Volusia County in relation to the Project site(s).

Figure 1-2

Orlando is located approximately 30 miles from Orange City and 55 miles from Port Orange. Port Orange, home to the Tomoka Farms Project site, is one of the largest cities in the county with a population of approximately 56,600. Orange City, home to the Bennett Park Project site, has a city population of 11,526.

Drive-Time Statistics

The following figure and table show population and demographic statistics within a one-, three-, and five-hour drive time from the Project sites.

Figure 1-3

Table 1-1

The Project site(s) boasts a strong local and regional drive market, with four of the five most populated cities in Florida located within a three-hour drive time, including Orlando, Jacksonville, Tampa, and St. Petersburg. As the drive time expands from one hour to three and five hours, the population increases significantly, from roughly two million to over 13 million and 23 million people, respectively.

It is crucial for the Project to attract regional and long-distance events in addition to serving the local area. Due to the expenses associated with competitive youth sports, higher-income families are historically a strong demographic for those better able to participate and travel for tournaments. Therefore, it is advantageous to have an affluent drive-in market. Median household incomes are lower than the national average of $72,603, but the average annual spend on entertainment and recreation is strong within the market.

Accessibility

Accessibility is critical for the Project as it positions itself within the local and regional markets. Proximity to major highways reduces the effort needed to reach a destination for regional and long-distance visitors. Visibility of a site along major interstates also allows for optimal awareness from vehicle traffic. Ultimately, the accessibility of a site can often impact its ability to be successful.

The following figure highlights the major roads and airports in relation to the Project site(s).

Estimated Drive-Time Statistics from Volusia County 1-Hour 3-Hour 5-Hour

Population 2,013,764 13,066,038 23,452,908 Households 812,241 5,222,216 9,314,575 Median Household Income $64,780 $64,373 $63,967 Median Home Value $317,566 $305,854 $321,593 Median Age 42.4 42.5 42.5 Annual Spend on Entertainment/Recreation $3,364 $3,369 $3,405

Source: ESRI

Figure 1-4

Interstate 95 (I-95) is one of the busiest and longest north-south interstates in the country, stretching from Miami, Florida to the Canadian border in Maine. Interstate 4 (I-4) is located entirely within the state of Florida, spanning from Tampa, through Orlando, to Daytona Beach. This allows for efficient access from many of the state’s most populated cities.

The Project site(s) are also situated near two U.S. Highways that both run through major Florida markets and end at the Florida-Georgia border near Jacksonville, including U.S. Highway 1 (US 1) and U.S. Highway 17 (US 17). US 1 originates in Key West while US 17 originates in Punta Gorda.

The Daytona Beach International Airport (DAB) is located within the county, and offers daily non-stop flights to Atlanta and Charlotte and three seasonal nonstop flights to Philadelphia, Dallas-Fort Worth, and Washington D.C. Additionally, Volusia County is approximately 35 miles from the Orlando Sanford International Airport (SFB) and 55 miles from the Orlando International Airport (MCO), offering nonstop domestic flights to about 69 and 107 destinations, respectively. The county’s proximity to efficient air access positions it as an appealing destination for national events.

Population and Income

The table below displays population statistics for the respective areas along with growth metrics from 2010 to 2023.

Table 1-2

The Bennett Park Project site is located in Orange City, which had a growth rate of more than 20 percent from 2010 to 2023. Since 2010, Volusia County and the state of Florida have witnessed growth that is notably higher than that of the United States. Growth rates through 2028 are expected to exceed the national average at the state, county, and city levels. As the population continues to grow throughout the area, the opportunity for a youth sports facility will expand. A significant residential base in the area provides consistent opportunities for rental usage throughout the week by various youth sports programs.

The following table shows income and housing statistics for the respective areas.

Table 1-3

Florida and Volusia County have lower median household incomes than that of the United States. Although lower household incomes can impact the prevalence of competitive youth sports in an area, Florida’s sizable population could potentially mitigate some of these challenges. Areas with a higher ratio of persons per household often indicate a larger presence of families with young children, which is a favorable characteristic for youth sports facilities. Volusia County has a slightly lower ratio of 2.30 compared to the national average of 2.53.

2010 2020 2023 2028 Projected 2010 - 2023 2023 - 2028 United States 308,745,538 331,449,281 337,470,185 342,640,129 9.3% 1.5% Florida 18,801,310 21,538,187 22,381,338 23,091,949 19.0% 3.2% Deltona-Daytona-Ormond MSA 590,289 668,921 700,840 726,424 18.7% 3.7%

Volusia County 494,593 553,543 574,286 589,334 16.1% 2.6% Port Orange 56,627 62,608 64,407 68,418 13.7% 6.2% Orange City 11,526 12,632 13,861 14,206 20.3% 2.5%

Source: U.S. Census Bureau

Population and Growth Rates

Population % Change

Category United States Florida Daytona

MSA

Volusia County Port Orange Orange City

Homeownership rate 58.5% 57.8% 63.0% 61.7% 66.9% 52.5% Median value of owner-occupied housing units $308,943 $330,683 $285,425 $278,743 $270,331 $249,042 Persons per household 2.53 2.46 2.31 2.30 2.24 2.16 Median household income $72,603 $65,081 $60,178 $59,263 $60,941 $52,429 Persons below poverty level - 2021 11.6% 12.7% - 13.8% 12.7% 13.6%

Source: ESRI, U.S. Census Bureau

Income & Housing Data

The figure below displays the region’s median household incomes and population density separated by zip code, and each dot represents 50 people per square mile.

Figure 1-5

The Tomoka Farms Project site is located in a zip code that has a median household income of $83,056, one of the highest household incomes in Volusia County. It borders some of the more densely populated zip codes within the county, which are primarily located along the beach. The Orlando area also has a higher prevalence of affluent and densely populated cities, which provides an opportunity for the Project to leverage its proximity to the greater Orlando market.

Legend $30,000 or less

$30,000 - 50,000 $50,000 - 70,000 $70,000 - 95,000 $95,000 or more

Tomoka Farms Project Site

Bennett Park Project Site

Employment

The following table lists the employment by industry within Volusia County.

Table 1-4

Volusia County has a significant share of private nonfarm employment, accounting for over 90 percent of the county’s employment base. Its top three industries include health care and social assistance, retail trade, and accommodation and food services.

Description Employees Percentage of Total

Total employment (number of jobs) 282,141 100% By type Wage and salary employment 195,802 69.40% Proprietors employment 86,339 30.60% Farm proprietors employment 1,145 0.41% Nonfarm proprietors employment 2 85,194 -- By industry Farm employment 1,908 0.68% Nonfarm employment 280,233 99.32% Private nonfarm employment 258,286 91.55% Health care and social assistance 35,703 12.65% Retail trade 34,803 12.34% Accommodation and food services 26,805 9.50% Other services (except government and government enterprises) 19,283 6.83% Real estate and rental and leasing 18,653 6.61% Construction 18,406 6.52% Administrative and support and waste management and remediation services 17,697 6.27% Professional, scientific, and technical services 16,854 5.97% Finance and insurance 14,955 5.30% Manufacturing 12,707 4.50% Transportation and warehousing 12,570 4.46% Educational services 9,270 3.29% Arts, entertainment, and recreation 7,586 2.69% Wholesale trade 6,406 2.27% Information 2,812 1.00% Management of companies and enterprises 2,298 0.81% Forestry, fishing, and related activities 759 0.27% Utilities 480 0.17% Mining, quarrying, and oil and gas extraction 239 0.08% Government and government enterprises 21,947 7.78% Federal civilian 1,377 0.49% Military 1,077 0.38% State and local 19,493 6.91% State government 4,123 1.46% Local government 15,370 5.45%

Source: Bureau of Economic Analysis, Hunden Partners

Volusia County Area Employment by Industry - 2022

The table below lists some of the largest private sector employers in Volusia County.

Table 1-5

Some of the county’s top employers include Fortune 500 companies such as Publix, Walmart, and Amazon.

The area’s four largest employers, which comprise of two healthcare companies and two retail trade companies, align with the top industries highlighted in the industry employment table above.

Private companies promote population growth and economic activity, which is beneficial for any type of development. A youth sports facility located in an area with a robust population and strong economy is better positioned to attract families with young children who have the disposable income to participate in sports.

Furthermore, a strong employment base provides opportunities for partnerships and naming right deals.

Education

The table below lists educational attainment levels from a national, regional, and local level.

Table 1-6

Volusia County Top Employers (Private Sector)

Company Name Industry Number of Employees

AdventHealth Systems Health Care 7,675 Halifax Hospital System Health Care 3,999 Publix Supermarkets, Inc. Retail Trade 3,719 Walmart Associates, Inc. Retail Trade 3,468 Amazon Logistics 1,700 Embry-Riddle Aeronautical University Education 1,661 Florida Healthcare Plans Health Care 1,409 Brunswick Corporation (Boston Whaler) Manufacturing 1,208 Stetson University Education 1,412 Winn Dixie Super Markets Retail Trade 850

Source: Florida Business (Sept. 2022)

Educational Attainment - 2022

Population Age 25+ United States Florida

Volusia County Port Orange Orange City

Did Not Complete High School 10.4% 10.0% 7.8% 7.0% 9.6% Completed High School 26.1% 27.1% 30.4% 27.4% 29.6% Some College 19.1% 18.4% 22.3% 23.5% 25.0% Completed Associate Degree 8.8% 10.2% 11.8% 13.3% 10.7% Completed Bachelor Degree 21.6% 21.4% 17.6% 19.0% 15.5% Completed Graduate Degree 14.0% 12.9% 10.1% 9.8% 9.6%

Source: U.S. Census Bureau

KHively Highlight

Compared to the national average, a higher proportion of Volusia County’s residents have high school diplomas as the highest education attainment. However, the county’s post-secondary attainment levels are lower than the national average, with a smaller proportion of residents achieving a bachelor’s or graduate degree. Areas with higher educational attainment typically have a stronger economy, larger corporate presence, and a population with greater disposable income.

The figure below provides an overview of colleges and universities that are within close proximity to the Project site(s).

Table 1-7

There are approximately 40,000 students enrolled in universities located within 15 miles of Port Orange, and 18,250 students within 15 miles of Orange City. Seminole State College of Florida, which has a student population of over 14,000, is the largest nearby university. Sports facilities situated near a large university population may benefit from a robust labor force and potential interest for recreational use by students.

Tapestry

Hunden performed a tapestry segmentation analysis which classifies neighborhoods using 67 unique segments based on demographics and socioeconomic characteristics. Understanding the segmentation profile in the county helps to determine the potential of local demand for the Project.

The table below lists the top five…